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DISCLAIMER 1. This document was prepared in connection with ESMA's field testing for the purposes of the development of a European Single Electronic Format ('ESEF') pursuant to ESMA's obligations under Article 4(7) of Directive 2004/109/EC of the European Parliament and of the Council of 15 December 2004 as amended by Directive 2013/50/EU. 2. The purpose of the field testing is to assess the practicability of, and options for the further enhancement of, the draft specifications of ESEF under development by ESMA. The field testing has involved the participation of issuers in the transformation of their IFRS consolidated financial statements to Inline XBRL format. 3. When creating the Inline XBRL reports, only limited effort was made to style and design the human readable XHTML presentation layer as the focus of the field test lay on the transformation of the financial information to the machine readable XBRL format. XHTML allows significantly better designed reports, but such styling and presentation matters were not in the scope of the field test. 4. This published document is intended solely for the purposes of the field testing. In particular, ESMA publishes this material in order to inform the public of how ESEF will work and to provide the opportunity for feedback on matters relating to the development of ESEF. The published document should not be considered or used for any other purpose without the prior consent of ESMA and the issuer concerned. 5. Accordingly, the published material is not intended to provide investors or any other parties with information with regard to the issuer concerned or any transactions or other matters of a financial or any other nature. The material should not be relied upon for such purposes. 6. Neither ESMA nor the issuer whose financial information is included in this document in Inline XBRL format accept responsibility or liability with regard to the published material. Without prejudice to the generality of the foregoing, ESMA and the issuer concerned accept no responsibility or liability for any losses incurred in connection with any decision made or action or inaction on the part of any party in reliance upon the published material. 7. As the field test was, amongst others, used to determine how the ESEF draft specifications could be further improved, the final requirements for the European Single Electronic Format will differ from the draft rules that were applied to transform the issuer's financial statements to Inline XBRL. Therefore, the published material is not and may not be considered to provide guidance on or interpretation of any rules or regulations of any source whatsoever, including as regards compliance with Article 4(7) of Directive 2004/109/EC, and no party should infer from the published material or the manner of its presentation how financial statements, annual financial reports or regulated information should be prepared.

UNIQA Group at a glance

Consolidated key figures |  |  |  |  |  |
In € million |  | 2016 |  |  | 2015 |  |  | Change |
Premiums written |  | 4,643.1 |  |  | 4,829.0 |  |  | – 3.9% |
Savings portions from unit-linked and index-linked life insurance (before reinsurance) |  | 405.1 |  |  | 382.0 |  |  | +6.0 | %
Premiums written including savings portions from unit-linked and index-linked life insurance |  | 5,048.2 |  |  | 5,211.0 |  |  | – 3.1% |
of which property and casualty insurance |  | 2,518.4 |  |  | 2,439.2 |  |  | +3.2 | %
of which health insurance |  | 1,003.7 |  |  | 964.4 |  |  | +4.1 | %
of which life insurance |  | 1,526.1 |  |  | 1,807.5 |  |  | – 15.6% |
of which recurring premiums |  | 1,356.9 |  |  | 1,366.9 |  |  | – 0.7% |
of which single premiums |  | 169.2 |  |  | 440.6 |  |  | – 61.6% |
Premiums written including savings portions from unit-linked and index-linked life insurance |  | 5,048.2 |  |  | 5,211.0 |  |  | – 3.1% |
of which UNIQA Austria |  | 3,631.5 |  |  | 3,883.5 |  |  | – 6.5% |
of which UNIQA International |  | 1,399.9 |  |  | 1,302.8 |  |  | +7.5 | %
of which reinsurance |  | 1,130.8 |  |  | 1,112.1 |  |  | +1.7 | %
of which consolidation |  | – 1,113.9 |  |  | – 1,087.3 |  |  | +2.4 | %
Premiums earned (net) 1) |  | 4,443.0 |  |  | 4,651.1 |  |  | – 4.5% |
of which property and casualty insurance |  | 2,359.1 |  |  | 2,301.3 |  |  | +2.5 | %
of which health insurance |  | 1,000.4 |  |  | 963.9 |  |  | +3.8 | %
of which life insurance |  | 1,083.6 |  |  | 1,386.0 |  |  | – 21.8% |
Savings portions from unit-linked and index-linked life insurance (after reinsurance) |  | 384.7 |  |  | 365.9 |  |  | +5.1 | %
Premiums earned including savings portions from unit-linked and index-linked life insurance |  | 4,827.7 |  |  | 5,017.0 |  |  | – 3.8% |
Net insurance benefits |  | – 3,385.6 |  |  | – 3,671.3 |  |  | – 7.8% |
of which property and casualty insurance |  | – 1,550.6 |  |  | – 1,553.7 |  |  | – 0.2% |
of which health insurance |  | – 843.6 |  |  | – 781.7 |  |  | +7.9 | %
of which life insurance |  | – 991.4 |  |  | – 1,335.9 |  |  | – 25.8% |
Operating expenses (net) 2) |  | – 1,286.4 |  |  | – 1,190.4 |  |  | +8.1 | %
of which property and casualty insurance |  | – 763.2 |  |  | – 699.6 |  |  | +9.1 | %
of which health insurance |  | – 175.5 |  |  | – 153.7 |  |  | +14.2 | %
of which life insurance |  | – 347.7 |  |  | – 337.1 |  |  | +3.1 | %
Cost ratio (net after reinsurance) |  | 26.6 | % |  | 23.7 | % |  | – |
Combined ratio (net after reinsurance) |  | 98.1 | % |  | 97.9 | % |  | – |
Net investment income |  | 588.9 |  |  | 732.0 |  |  | – 19.5% |
Profit/loss on ordinary activities |  | 225.5 |  |  | 397.8 |  |  | – 43.3% |
Net profit/loss |  | 149.6 |  |  | 340.7 |  |  | – 56.1% |
Consolidated profit/loss |  | 148.1 |  |  | 337.2 |  |  | – 56.1% |
Operating return on equity |  | 10.0 | % |  | 17.2 | % |  | – |
Investments 3) |  | 25,454.6 |  |  | 29,416.1 |  |  | – 13.5% |
Shareholders’ equity |  | 3,186.3 |  |  | 3,144.5 |  |  | +1.3 | %
Equity including non-controlling interests |  | 3,212.8 |  |  | 3,166.4 |  |  | +1.5 | %
Technical provisions (net) 4) |  | 21,812.7 |  |  | 25,638.9 |  |  | – 14.9% |
Total assets |  | 33,639.2 |  |  | 33,297.9 |  |  | +1.0 | %
Number of insurance contracts |  | 18,785,051 |  |  | 19,254,690 |  |  | – 2.4% |
Average number of employees |  | 12,855 |  |  | 13,782 |  |  | – 6.7% |

1) Consolidated amounts
2) Less reinsurance commissions and share of profit from reinsurance ceded
3) Including investment property, shares in associates, unit-linked and index-linked life insurance investments and current bank balances and cash-in-hand
4) Including technical provisions for life insurance policies held on account and at risk of policyholders
Due to the sale of the Italian Group companies, both the key figures for the 2016 financial year and those for 2015 (except for total assets) are presented exclusive of Italy.

Consolidated Statement of Financial Position as at 31 December 2016

Assets | Notes | 31/12/2016 |  | 31/12/2015 |  | 1/1/2015 |
In € thousand |  |  | adjusted |  | adjusted |
Property, plant and equipment | 4, 7 | 265,219 |  | 292,989 |  | 263,626 |
Investment property | 8 | 1,349,996 |  | 1,392,590 |  | 1,504,483 |
Intangible assets | 4, 9 | 1,492,360 |  | 1,703,058 |  | 1,750,174 |
Financial assets accounted for using the equity method | 10 | 521,305 |  | 514,165 |  | 528,681 |
Investments | 12 | 18,153,472 |  | 21,392,476 |  | 20,629,354 |
Unit-linked and index-linked life insurance investments |  | 4,879,928 |  | 5,226,748 |  | 5,386,650 |
Reinsurers’ share of technical provisions | 20 | 324,443 |  | 548,966 |  | 563,540 |
Reinsurers’ share of technical provisions for unit-linked and index-linked life insurance | 26 | 318,636 |  | 315,646 |  | 332,974 |
Receivables, including insurance receivables | 13 | 638,695 |  | 911,477 |  | 1,094,544 |
Income tax receivables | 14 | 65,854 |  | 87,270 |  | 53,917 |
Deferred tax assets | 4, 15 | 5,589 |  | 13,115 |  | 11,600 |
Cash and cash equivalents | 16 | 549,934 |  | 890,083 |  | 975,764 |
Assets in disposal groups held for sale | 11 | 5,073,729 |  | 9,289 |  | 161,053 |
Total assets |  | 33,639,160 |  | 33,297,873 |  | 33,256,359 |
Equity and liabilities | Notes | 31/12/2016 |  | 31/12/2015 |  | 1/1/2015 |
In € thousand |  |  | adjusted |  | adjusted |
Total equity | 17 |  |  |
Portion attributable to shareholders of UNIQA Insurance Group AG |  |  |  |
Subscribed capital and capital reserves | 4 | 1,789,923 |  | 1,789,920 |  | 1,789,920 |
Treasury shares | 4 | 16,631 |  | 10,857 |  | 10,857 |
Accumulated results | 4 | 1,412,961 |  | 1,365,453 |  | 1,288,909 |
|  | 3,186,253 |  | 3,144,516 |  | 3,067,971 |
Non-controlling interests | 4, 18 | 26,513 |  | 21,853 |  | 19,897 |
|  | 3,212,766 |  | 3,166,369 |  | 3,087,868 |
Liabilities |  |  |  |
Subordinated liabilities | 19 | 846,043 |  | 1,095,745 |  | 600,000 |
Technical provisions | 4, 21, 22, 23, 24, 25 | 17,609,233 |  | 21,328,061 |  | 21,452,841 |
Technical provisions for unit-linked and index-linked life insurance | 26 | 4,846,591 |  | 5,175,437 |  | 5,306,000 |
Financial liabilities | 27 | 45,524 |  | 33,580 |  | 49,181 |
Other provisions | 28 | 798,737 |  | 796,442 |  | 801,837 |
Liabilities and other items classified as liabilities | 29 | 1,042,244 |  | 1,271,572 |  | 1,400,828 |
Income tax liabilities | 30 | 79,120 |  | 95,970 |  | 43,272 |
Deferred tax liabilities | 15 | 296,676 |  | 334,696 |  | 355,424 |
Liabilities in disposal groups held for sale | 11 | 4,862,227 |  | 0 |  | 159,107 |
|  | 30,426,394 |  | 30,131,504 |  | 30,168,491 |
Total equity and liabilities |  | 33,639,160 |  | 33,297,873 |  | 33,256,359 |

Consolidated Income Statement
from 1 January until 31 December 2016

| Notes | 1-12/2016 |  | 1-12/2015 |
In € thousand |  |  | adjusted |
Premiums earned (net) | 31 |  |
Gross |  | 4,611,687 |  | 4,817,299 |
Reinsurers’ share |  | (168,717 | ) | (166,172 | )
|  | 4,442,970 |  | 4,651,128 |
Technical interest income |  | 333,334 |  | 431,740 |
Other insurance income |  |  |
Gross |  | 23,508 |  | 29,566 |
Reinsurers’ share |  | 329 |  | 863 |
|  | 23,837 |  | 30,429 |
Insurance benefits | 4, 32 |  |
Gross |  | (3,478,247 | ) | (3,786,352 | )
Reinsurers’ share |  | 92,681 |  | 115,045 |
|  | (3,385,566 | ) | (3,671,307 | )
Operating expenses | 4, 33 |  |
Expenses for the acquisition of insurance |  | (890,674 | ) | (863,291 | )
Other operating expenses |  | (417,031 | ) | (346,254 | )
Reinsurance commission and share of profit from reinsurance ceded |  | 21,311 |  | 19,110 |
|  | (1,286,394 | ) | (1,190,435 | )
Other technical expenses |  |  |
Gross |  | (37,088 | ) | (47,718 | )
Reinsurers’ share |  | (17,233 | ) | (17,965 | )
|  | (54,321 | ) | (65,682 | )
Technical result | 4 | 73,861 |  | 185,872 |
Net investment income and income from investment property | 34 | 588,892 |  | 731,983 |
of which profit from financial assets accounted for using the equity |  |  |
method |  | 38,614 |  | 23,205 |
Other income | 35 | 42,569 |  | 35,818 |
Reclassification of technical interest income |  | (333,334 | ) | (431,740 | )
Other expenses | 36 | (53,145 | ) | (55,691 | )
Non-technical result |  | 244,982 |  | 280,370 |
Operating profit/(loss) | 4 | 318,842 |  | 466,242 |
Amortisation of goodwill and impairment losses |  | (25,832 | ) | (18,181 | )
Finance costs |  | (67,477 | ) | (50,243 | )
Earnings before taxes | 4 | 225,533 |  | 397,818 |
Income taxes | 4, 37 | (22,810 | ) | (80,283 | )
Profit/(loss) for the year from continuing operations |  | 202,723 |  | 317,535 |
Profit/(loss) from discontinued operations (after tax) | 38 | (53,105 | ) | 23,147 |
Profit/(loss) for the year |  | 149,618 |  | 340,682 |
of which attributable to shareholders of UNIQA Insurance Group AG |  | 148,063 |  | 337,160 |
of which attributable to non-controlling interests |  | 1,554 |  | 3,521 |
Earnings per share (in €) 1) | 4, 17 | 0.48 |  | 1.09 |
Earnings per share from continuing operations |  | 0.66 |  | 1.02 |
Earnings per share from discontinued operations |  | (0.17 | ) | 0.07 |
Average number of shares in circulation |  | 308,129,721 |  | 308,180,350 |

1) | Diluted earnings per share equate to undiluted earnings per share. This is calculated on the basis of the consolidated profit/(loss).

Consolidated Statement of Comprehensive Income from 1 January until 31 December 2016

| 1-12/2016 |  | 1-12/2015 |
In € thousand |  | adjusted |
Profit/(loss) for the year | 149,618 |  | 340,682 |
Items not reclassified to profit or loss in subsequent periods |  |
Revaluations of defined benefit obligations |  |
Gains (losses) recognised in equity | (9,842 | ) | (57,554 | )
Gains (losses) recognised in equity – deferred tax | 2,195 |  | 12,727 |
Gains (losses) recognised in equity – deferred profit participation | 1,127 |  | 7,062 |
Other income from financial assets accounted for using the equity method |  |
Gains (losses) recognised in equity | (1,335 | ) | (10,616 | )
| (7,855 | ) | (48,381 | )
Items reclassified to profit or loss in subsequent periods |  |
Currency translation |  |
Gains (losses) recognised in equity | 155 |  | (16,429 | )
Recognised in the consolidated income statement | (504 | ) | (1,155 | )
Valuation of financial instruments available for sale |  |
Gains (losses) recognised in equity | 343,506 |  | (64,569 | )
Gains (losses) recognised in equity – deferred tax | (39,702 | ) | 5,737 |
Gains (losses) recognised in equity – deferred profit participation | (196,229 | ) | 22,057 |
Recognised in the consolidated income statement | (102,071 | ) | (87,860 | )
Recognised in the consolidated income statement – deferred tax | 14,303 |  | 11,076 |
Recognised in the consolidated income statement – deferred profit participation | 43,305 |  | 64,934 |
Other income from financial assets accounted for using the equity method |  |
Gains (losses) recognised in equity | (5,648 | ) | (8,451 | )
Recognised in the consolidated income statement | 580 |  | 0 |
| 57,697 |  | (74,660 | )
of which from discontinued operations | 6,701 |  | 15,732 |
Other comprehensive income | 49,841 |  | (123,041 | )
Total comprehensive income | 199,459 |  | 217,641 |
of which attributable to shareholders of UNIQA Insurance Group AG | 195,644 |  | 212,056 |
of which attributable to non-controlling interests | 3,815 |  | 5,585 |

Consolidated Statement of Cash Flows from 1 January until 31 December 2016

| Notes | 1-12/2016 |  | 1-12/2015 |
In € thousand |  |  | adjusted
Profit/(loss) for the year |  | 149,618 |  | 340,682 |
Impairment losses, amortisation of goodwill and other intangible assets, and |  |  |
depreciation of property, plant and equipment |  | 62,379 |  | 55,952 |
Impairment losses/reversal of impairment losses on other investments |  | 97,956 |  | (2,849 | )
Gain/loss on the disposal of investments |  | (22,639 | ) | (77,287 | )
Change in deferred acquisition costs |  | 10,383 |  | 21,279 |
Change in securities at fair value through profit or loss |  | 150,982 |  | 12,364 |
Change in direct insurance receivables |  | 23,412 |  | 70,596 |
Change in other receivables | 4 | 103,324 |  | 32,255 |
Change in direct insurance liabilities |  | (36,603 | ) | (129,565 | )
Change in other liabilities |  | 25,130 |  | 57,699 |
Change in technical provisions | 4 | 382,945 |  | (129,387 | )
Change in defined benefit obligation | 4 | (10,067 | ) | (68,830 | )
Change in deferred tax assets and deferred tax liabilities | 4 | (27,961 | ) | 6,369 |
Change in other statement of financial position items | 4 | 68,033 |  | (42,504 | )
Net cash flow from operating activities |  | 976,893 |  | 146,773 |
of which from discontinued operations |  | 586,541 |  | 0 |
Proceeds from disposal of intangible assets and property, plant and equipment |  | 3,504 |  | 14,500 |
Payments for acquisition of intangible assets and property, plant and equipment |  | (46,926 | ) | (16,965 | )
Proceeds from disposal of consolidated companies |  | 16,409 |  | 2,136 |
Payments for acquisition of consolidated companies | 4 | (3,293 | ) | (1,237 | )
Proceeds from disposal and maturity of other investments | 4 | 4,978,861 |  | 4,548,683 |
Payments for acquisition of other investments |  | (5,860,659 | ) | (5,293,419 | )
Change in unit-linked and index-linked life insurance investments |  | (7,395 | ) | 159,902 |
Net cash flow from investing activities |  | (919,500 | ) | (586,399 | )
of which from discontinued operations |  | (593,261 | ) | 0 |
Dividend payments | 17 | (145,958 | ) | (129,621 | )
Transactions between owners | 4 | (644 | ) | (10,746 | )
Proceeds from other financing activities |  | 0 |  | 495,745 |
Payments from other financing activities |  | (251,922 | ) | (1,034 | )
Net cash flow from financing activities |  | (398,524 | ) | 354,345 |
of which from discontinued operations |  | 0 |  |
Change in cash and cash equivalents |  | (341,131 | ) | (85,280 | )
Change in cash and cash equivalents due to acquisitions or disposals of |  |  |
consolidated subsidiaries |  | 770 |  | 0 |
of which from discontinued operations |  | (6,719 | ) | 0 |
Change in cash and cash equivalents due to movements in exchange rates |  | 982 |  | (401 | )
Cash and cash equivalents at beginning of year |  | 890,083 |  | 975,764 |
Cash and cash equivalents at end of period |  | 549,934 |  | 890,083 |
Income taxes paid (Net cash flow from operating activities) |  | (49,786 | ) | (63,518 | )
Interest paid (Net cash flow from operating activities) |  | 91,997 |  | (64,842 | )
Interest received (Net cash flow from operating activities) |  | 554,868 |  | 569,996 |
Dividends received (Net cash flow from operating activities) |  | 77,418 |  | 62,185 |

Consolidated Statement of Changes in Equity

|  |  |  | Accumulated
In € thousand | Notes Subscribed capital and | Treasury shares | Valuation of financial | Revaluations of defined
| capital reserves |  | instruments available | benefit obligations
|  |  | for sale |
At 31 December 2014 | 1,789,920 | (10,857) | 443,750 | (143,503)
IAS 8 restatement |  |  |  |
At 1 January 2015 | 1,789,920 | (10,857) | 443,750 | (143,503)
Change in basis of consolidation |  |  |  |
Dividends to shareholders |  |  |  |
Total comprehensive income |  |  | (51,997) | (37,060)
Profit/(loss) for the year |  |  |  |
Other comprehensive income |  |  | (51,997) | (37,060)
At 31 December 2015 | 1,789,920 | (10,857) | 391,753 | (180,563)
At 1 January 2016 | 1,789,920 | (10,857) | 391,753 | (180,563)
Change in basis of consolidation | 3 | (5,774) |  |
Dividends to shareholders |  |  |  |
Total comprehensive income |  |  | 61,909 | (6,457)
Profit/(loss) for the year |  |  |  |
Other comprehensive income |  |  | 61,909 | (6,457)
At 31 December 2016 | 1,789,923 | (16,631) | 453,662 | (187,020)

results |  |  |  |  |
Differences |  | Other accumulated |  | Portion attributable to |  | Non-controlling |  | Total |
from |  | results |  | shareholders of UNIQA |  | interests |  | equity |
currency |  |  | Insurance Group AG |  |  |
translation |  |  |  |  |
(155,504 | ) | 1,158,733 |  | 3,082,538 |  | 19,897 |  | 3,102,434 |
| (14,567 | ) | (14,567 | ) |  | (14,567 | )
(155,504 | ) | 1,144,166 |  | 3,067,971 |  | 19,897 |  | 3,087,868 |
| (6,075 | ) | (6,075 | ) | (3,313 | ) | (9,388 | )
| (129,436 | ) | (129,436 | ) | (315 | ) | (129,751 | )
(16,980 | ) | 318,093 |  | 212,056 |  | 5,585 |  | 217,641 |
| 337,160 |  | 337,160 |  | 3,521 |  | 340,682 |
(16,980 | ) | (19,067 | ) | (125,104 | ) | 2,063 |  | (123,041 | )
(172,485 | ) | 1,326,748 |  | 3,144,516 |  | 21,853 |  | 3,166,369 |
(172,485 | ) | 1,326,748 |  | 3,144,516 |  | 21,853 |  | 3,166,369 |
| (3,291 | ) | (9,062 | ) | 1,958 |  | (7,104 | )
| (144,845 | ) | (144,845 | ) | (1,113 | ) | (145,958 | )
(1,468 | ) | 141,661 |  | 195,644 |  | 3,815 |  | 199,459 |
| 148,063 |  | 148,063 |  | 1,554 |  | 149,618 |
(1,468 | ) | (6,403 | ) | 47,581 |  | 2,261 |  | 49,841 |
(173,953 | ) | 1,320,273 |  | 3,186,253 |  | 26,513 |  | 3,212,766 |

Notes to the Consolidated Financial Statements
1. General information
UNIQA Insurance Group AG (UNIQA) is a company domiciled in Austria. The address of the company’s registered office is Untere Donaustraße 21, 1029 Vienna. The Group primarily con-ducts business with property and casualty, as well as health and life insurance.
UNIQA Insurance Group AG is registered in the company registry of the Commercial Court of Vienna under FN 92933t. The shares of UNIQA Insurance Group AG are listed on the prime market segment of the Vienna Stock Exchange.
Unless otherwise stated, these consolidated financial statements are prsepared in thousand euros; rounding differences may occur through the use of automated calculation tools when totalling rounded amounts and percentages. The functional currency at UNIQA is the euro.
UNIQA’s reporting date is 31 December.

2. Accounting principles
2.1 Principles
The consolidated financial statements were prepared in line with the International Financial Reporting Standards (IFRSs) as well as the provisions of the International Financial Reporting Interpretations Committee (IFRIC) as adopted by the European Union (EU) as at the reporting date. The additional requirements of Section 245a(1) of the Austrian Commercial Code as well as Section 138(8) of the Insurance Supervision Act were also met.

The following table provides an overview of the valuation principles for the individual balance sheet items in the assets and liabilities:

Balance sheet item | Standard of valuation
Assets |
Property, plant and equipment | At lower of amortised cost or recoverable amount
Investment property | At lower of amortised cost or recoverable amount
Intangible assets |
- with determinable useful life | At lower of amortised cost or recoverable amount
- with indeterminable useful life | At lower of acquisition cost or recoverable amount
Financial assets accounted for using the equity method | At lower of amortised pro-rata value of the equity or recoverable
| amount
Investments |
- Financial assets recognised at fair value through profit or | Fair value
loss |
- Financial assets held for sale | Fair value
- Loans and receivables | Amortised cost
Unit-linked and index-linked life insurance investments | Fair value
Reinsurers’ share of technical provisions | As per the valuation of technical provisions
Reinsurers’ share of technical provisions for unit-linked and index- | As per the valuation of technical provisions
linked life insurance |
Receivables, including insurance receivables | Amortised cost
Income tax receivables | At the amount of any obligations to the tax authorities, based on
| the tax rates applicable on the reporting date or in the near future
Deferred tax assets | Undiscounted valuation applying the tax rates that are expected
| for the period in which an asset is realised or a liability met
Cash and cash equivalents | Amortised cost
Assets in disposal groups held for sale | Lower of carrying amount and fair value less cost to sale

Balance sheet item | Standard of valuation
Liabilities |
Subordinated liabilities | Amortised cost
Technical provisions | Property insurance: provisions for losses and unsettled claims
| (undiscounted value of expected future payment obligations)
| Life and health insurance: insurance provision in accordance with
| actuarial calculation principles (discounted value of expected
| future benefits less premiums)
Technical provisions for unit-linked and index-linked life insurance | Insurance provision based on the change in value of the
| contributions assessed
Financial liabilities |
- Liabilities from loans | Amortised cost
- Derivative financial instruments | Fair value
Other provisions |
- from defined benefit obligations | Actuarial valuation applying the projected benefit obligation
| method
- other | Present value of future settlement value
Liabilities and other items classified as liabilities | Amortised cost
Income tax liabilities | At the amount of any obligations to the tax authorities, based on
| the tax rates applicable on the reporting date or in the near future
Deferred tax liabilities | Undiscounted valuation applying the tax rates that are expected
| for the period in which an asset is realised or a liability met

2.2 Principles for technical items
UNIQA has applied IFRS 4 (published in 2004) for insurance contracts since 1 January 2005. This standard demands that the accounting policies be largely unaltered with regard to the actuarial items.
The IFRSs contain no specific regulations that comprehensively govern the recognition and measurement of insurance and reinsurance policies and investment contracts with a discre-tionary participation feature. Therefore, in accordance with IAS 8, the provisions of US Gener-ally Accepted Accounting Principles (US GAAP) in the version applicable on 1 January 2005 were applied to all cases for which IFRS 4 contains no specific regulations. For balancing the accounts and evaluation of the insurance-specific entries of life insurance with profit sharing, FAS 120 was observed; FAS 60 was applied for specific items in health, property and casualty insurance and FAS 113 for reinsurance. Unit-linked life insurance, where the policyholder bears the entire investment risk, was accounted for in accordance with FAS 97.
Based on the regulations, technical items must be covered by suitable assets (cover funds). As is standard in the insurance industry, amounts dedicated to the cover funds are subject to a limitation as regards availability in the group.
The new standard for insurance contracts (previously referred to as IFRS 4 Phase II, now IFRS 17) has been in preparation for many years. It is expected to be issued by the middle of 2017 and its initial date of application is scheduled for 2021 . The subject of the future standard for insurance contracts is the representation of the assets and liabilities resulting from the insurance contracts. IFRS 17 applies largely to all insurance and reinsurance contracts that a company underwrites and to reinsurance contracts that a company enters into.

2.3 Consolidation principles
Business combinations
If the Group has obtained control, it accounts for business combinations in line with the acqui-sition method. The consideration transferred for the acquisition and the identifiable net assets acquired are measured at fair value. Any generated goodwill is tested annually for impairment. Any profit from an acquisition at a price below the fair value of the net assets is recognised di-rectly in profit/(loss) for the year. Transaction costs are recognised as expenses immediately.
The consideration transferred does not include any amounts associated with the fulfilment of pre-existing relationships. Such amounts are generally recognised in profit/(loss) for the year.
Any contingent obligation to pay consideration is measured at fair value as at the acquisition date. If the contingent consideration is classified as equity, it is not revalued, and a settlement is accounted for within equity. Otherwise, later changes in the fair value of the contingent consid-eration are recognised in profit/(loss) for the year.
Non-controlling interests
Non-controlling interests are measured as at the acquisition date with their proportionate share in the identifiable net assets of the acquired entity.
Changes in the share in a subsidiary that do not result in a loss of control are recognised di-rectly as equity transactions with non-controlling interests.
Subsidiaries
Subsidiaries are entities controlled by UNIQA. UNIQA is regarded as controlling an entity if:

• | UNIQA is able to exercise power over the relevant entity,

• | UNIQA is exposed to fluctuating returns from its participation and

• | UNIQA is able to influence the amount of the returns as a result of the power it exercises.

The financial statements of subsidiaries are included in the consolidated financial statements from the date control begins until the date control ends.
Loss of control
If UNIQA loses control of a subsidiary, the subsidiary’s assets and liabilities and all associated non-controlling interests and other equity components are derecognised. Any resulting profit or loss is recognised in profit/(loss) for the year. Any retained interest in the former subsidiary is measured at fair value as at the date of the loss of control.
Investment in associates
Associates are all the entities over which UNIQA has significant influence but does not exercise control or joint control over their financial and operating policies. This is generally the case as soon as there is a voting share of between 20 and 50 per cent or a comparable significant influ-ence is guaranteed legally or in practice via other contractual regulations.
Investments in associates are accounted for using the equity method. They are initially rec-ognised at acquisition cost, which also includes transaction costs. After the first-time recogni-tion, the consolidated financial statements include the Group’s share in profit/(loss) for the year and in changes in other comprehensive income until the date the significant influence ends.

At each reporting date, UNIQA reviews whether there are any indications that the invest-ments in associates are impaired. If this is the case, then the impairment loss is recorded as the difference between the participation carrying amount of the associate and the corresponding recoverable amount and recognised separately in profit/(loss) for the year.
Transactions eliminated on consolidation
Intragroup balances and transactions and all unrealised income and expenses from intragroup transactions are eliminated when consolidated financial statements are prepared.
Discontinued operations
A discontinued operation is a part of the Group that has either been sold or has been categorised as held for sale, and which

• | represents a major line of business or a geographical area of operations,

• | is part of a single coordinated plan to dispose of a separate, major line of business or geograph-ical area of operations, or

• | is a subsidiary acquired exclusively with a view to resale.

The entity is classified as a discontinued operation when the aforementioned criteria are ful-filled.
If an operation is classified as a discontinued operation, the consolidated statement of com-prehensive income as well as the data relating to it for the comparative year is adjusted so that it were as if the operation had been discontinued from the start of the comparative year.
Assets and liabilities held for sale
Non-current assets and liabilities are classified as held for sale if it is highly probable that they will be realised through sale rather than continued use.
These assets or disposal groups are recognised at the lower of their carrying amounts or fair values less costs to sell. Any impairment loss of a disposal group is firstly attributed to goodwill and then to the remaining assets and liabilities on a proportional basis – with the exception that no loss is attributed to financial assets, deferred tax assets, assets in connection with employee benefits or investment property that continues to be measured based on the Group’s other ac-counting policies. Impairment losses on the first-time classification as held for sale and any subsequent impairment losses are recognised in profit or loss.
Intangible assets held for sale and property, plant and equipment are no longer amortised or depreciated and any investments recognised using the equity method are no longer equity-accounted.
2.4 Basis of consolidation
In addition to the annual financial statements of UNIQA Insurance Group AG, the consolidated financial statements include the financial statements of all subsidiaries in Austria and abroad. The basis of consolidation comprised – including UNIQA Insurance Group AG – 54 Austrian (2015: 56) and 62 (2015: 67) foreign subsidiaries. The associates are 6 domestic (2015: 8) and 1 foreign company (2015: 1) that were included in the consolidated financial statements using the equity method of accounting.
A list of the fully consolidated subsidiaries and associates can be found on page 235.
Shares in subsidiaries that are not consolidated (for lack of materiality), associates as well as joint ventures not accounted for using the equity method are classified as financial assets avail-able for sale in accordance with IAS 39 and recognised at fair value in other comprehensive income. Those equity investments for which the fair value cannot be reliably ascertained are recognised at cost less any impairments.

In application of IFRS 10, fully-controlled investment funds are included in the consolida-tion insofar as their fund volumes were not of minor importance when viewed separately and as a whole.
In the reporting year, the following changes occurred to the basis of consolidation.
Acquisitions
UNIQA Real Estate Inlandsholding GmbH (Vienna) was included within the basis of consolida-tion for the first time effective 14 June 2016. The acquisition constitutes an acquisition of a group of assets and does not fulfil the conditions of a business according to IFRS 3. The compa-ny acquired is a financial and strategic shareholding.
Following approval by the Austrian Supreme Court sitting as a competition high court, on 7 July 2016 the acquisition of a 75 per cent stake in Vienna-based Privatklinik Goldenes Kreuz Privatklinik BetriebsGmbH (“Goldenes Kreuz”) was finalised.
The company operates a private hospital specialising in obstetrics in Vienna’s 9th District. The acquisition represents a strategic expansion for the existing group of hospitals. In accord-ance with IFRS 3, the acquisition of this holding is considered the acquisition of a business.
The profit/(loss) for the year includes negative contributions to earnings in the amount of €– 782 thousand from the current profits of the Vienna private clinic “Goldenes Kreuz” since its initial consolidation.
If the acquisition had taken place on 1 January 2016, according to estimates of the Group Management Board the non-insurance result would have amounted to €244,338 thousand and net profit would have been €148,974 thousand. In determining these amounts, the management assumed that the provisional fair value adjustments at the time of the acquisition would also have been valid in the event of an acquisition on 1 January 2016.
The consideration paid for the acquisition comprises exclusively cash and cash equivalents amounting to €4,023 thousand. The incidental costs incurred for this acquisition in 2016 amounting to €10 thousand (2015: €435 thousand) are recognised under other operating ex-penses.
Receivables (trade receivables and other assets) acquired in the course of the acquisition have a fair value of €4,947 thousand. Based on the best possible estimate, there were no uncol-lectible receivables at the time of the acquisition.
Calculations based on the estimates show that no goodwill was generated with the acquisi-tion of the “Goldenes Kreuz” private hospital in Vienna.
Non-controlling interests of 25 per cent were recognised at the time of acquisition and measured at a fair value of €1,341 thousand.
The consideration paid is offset by an acquired cash position of €770 thousand.
Assets and liabilities from business combinations at acquisition date

In € thousand
Assets

Property, plant and equipment | 1,547
Intangible assets | 4,078
Receivables, including insurance receivables | 4,958
Cash and cash equivalents | 770
Total assets | 11,354
Liabilities |
Financial liabilities | 1,530
Other provisions | 1,608
Liabilities and other items classified as liabilities | 2,851
Total liabilities | 5,989

Restructuring processes
Sedmi element d.o.o. (Zagreb, Croatia) and Deveti element d.o.o. (Zagreb, Croatia) were merged with UNIQA osiguranje d.d. (Zagreb, Croatia) in January 2016.
UNIQA International AG (Vienna), acting as the transferor company, has transferred its 100 per cent stake in UNIQA Re AG (Zurich, Switzerland) through demerger to the UNIQA Insurance Group AG (the acquiring company) by means of a spin-off and take-over agreement dated 20 June 2016. Concurrently, Raiffeisen Versicherung AG, acting as the transferor compa-ny, transferred its 25 per cent stake in UNIQA International AG through demerger to the UNIQA Insurance Group AG (the acquiring company) by means of a spin-off and take-over agreement dated 20 June 2016.

Dr. E. Hackhofer EDV-Softwareberatung Gesellschaft m.b.H. (Vienna), which was entered into the company register on 1 July 2016 with retroactive effect from 31 December 2015, was merged as transferor company with UNIQA IT Services GmbH (Vienna).
BL syndicate Beteiligungs Gesellschaft mbH was merged with the UNIQA Insurance Group AG (the absorbing company) as at 31 July 2016.
FINANCE LIFE Lebensversicherung AG (Vienna), Raiffeisen Versicherung AG (Vienna) and Salzburger Landes-Versicherung AG (Salzburg), acting as the transferor companies, were merged with UNIQA Österreich Versicherungen AG (Vienna) (the absorbing company) on 1 October 2016 with effect from 1 January 2016.
UNIQA Real Estate BH nekretnine, d.o.o. (Sarajevo, Bosnia and Herzegovina) was merged with UNIQA osiguranje d.d. (Zagreb, Croatia) on 29 December 2016.
Liquidations
BSIC Holding LLC (Kiev, Ukraine) was liquidated as at 12 January 2016.
Sales
UNIQA Real II, spol. s r.o. (Bratislava, Slovakia) was sold effective 12 August 2016.
As part of the UNIQA 2.0 strategy programme focussing on the core insurance business in the key markets of Austria as well as Central and Eastern Europe, UNIQA has taken numerous actions since mid-2015 to restructure its portfolio of investments.
UNIQA decided to sell its 29 per cent holding in Medial Beteiligungs-Gesellschaft m.b.H. (Vienna) on 27 July 2015. This investment is therefore represented among the assets in disposal groups held for sale (segment “Group functions”). Medial Beteiligungs-Gesellschaft m.b.H. has an equity investment of around 38 per cent in Casinos Austria Aktiengesellschaft (Vienna); correspondingly, UNIQA holds an interest of around 11 per cent in Casinos Austria Aktiengesellschaft. Due to a decree by the Vienna regional high court acting as antitrust court, which prohibited the transfer of the investment, the sale to NOVOMATIC AG (Gumpoldskirchen) fell through and was cancelled in early 2017. UNIQA sold its 29 per cent stake in Medial Beteiligungs-Gesellschaft m.b.H. (Vienna) to CAME Holding GmbH (Vienna) in a contract of assignment dated 3 January 2017. The sale to CAME Holding GmbH is subject to a condition precedent. The conditions precedent are essentially mandatory approvals still required under merger law and public law approvals. Closing is expected in the first half of 2018.
Through the transfer agreement of 2 December 2016, the shares in Raiffeisen evolution pro-ject development GmbH (Vienna), amounting to 20 per cent, were sold to STRABAG AG (Spit-tal) and DC 1 Immo GmbH (Vienna). Following approval by the Austrian and Hungarian anti-trust authorities, the closing was completed on 22 December 2016. The purchase price is ap-proximately €14 million, the book value amounted to € 14.7 million as at the date of disposal.

Following the approval by the Supervisory Board, on 2 December 2016 the Management Board decided to sell its 99.7 per cent holding in UNIQA Assicurazioni S.p.A. (Milan, Italy). The sales price is about €295 million. The sale includes UNIQA Assicurazioni S.p.A. (Milan, Italy) and its subsidiaries operating in Italy, UNIQA Previdenza S.p.A. (Milan, Italy) and UNIQA Life S.p.A. (Milan, Italy), which were reported in the segment UNIQA International. The sale of the Italian companies is classified as a discontinued business line. The assets and liabilities associated with the discontinued business line are stated in the consolidated statement of financial position under the assets and liabilities in disposal groups held for sale. The profit and loss of the discon-tinued business line is presented in the consolidated income statement under the item “Prof-it/(loss) from discontinued operations (after tax)”. The closing of the sale is expected in the first half of 2017 once all necessary official approvals have been obtained.
2.5 Currency translation
Functional currency and reporting currency
The items included in the financial statements for each operating subsidiary are measured based on the currency that corresponds with the currency of the primary economic environ-ment in which the subsidiary operates (functional currency). The consolidated financial state-ments are prepared in euros which is UNIQA’s reporting currency.
Transactions in foreign currencies
Transactions in foreign currencies are translated into the functional currency of the Group entity at the exchange rate on the date of the transaction or, in the case of revaluations, at the time of the valuation.
Monetary assets and liabilities denominated in a foreign currency on the reporting date are translated into the functional currency at the closing rate. Non-monetary assets and liabilities measured at fair value in a foreign currency are translated at the rate valid on the date the fair value is calculated. Currency translation differences are generally recognised in profit/(loss) for the year. Non-monetary items recognised at historical acquisition cost or the cost of self-construction in a foreign currency are not translated.
In deviation from this policy, there is one case where currency translation differences are recognised in other comprehensive income: available-for-sale equity instruments (except in the case of impairment, for which currency translation differences are reclassified from other com-prehensive income to profit/(loss) for the year).
Foreign operations
Assets and liabilities from foreign operations, including the goodwill and fair value adjustments that result from the acquisition, are translated into euros at the closing rate on the reporting date. Income and expenses from foreign operations are translated at the monthly closing rates.

Currency translation differences are reported in other comprehensive income and recog-nised in equity as a part of the accumulated profits in the item “Differences from currency translation” if the foreign exchange difference is not attributable to non-controlling interests.
When the disposal of a foreign operation results in loss of control, joint control or significant influence, the corresponding amount recognised in the item “Differences from currency trans-lation” under the accumulated profits up to this date is reclassified to profit/(loss) for the year as part of the gain or loss on disposal. In the case of only partial disposal without loss of control over a subsidiary that includes a foreign operation, the corresponding portion of the cumulative exchange difference is attributed to the non-controlling interests. If an associate or jointly con-trolled company that includes a foreign operation is partially disposed of, but significant influ-ence or joint control is retained, the corresponding portion of the cumulative currency transla-tion difference is reclassified to profit/(loss) for the year.
If the settlement of monetary items in the form of receivables or liabilities from or to a for-eign operation is neither planned nor probable in the foreseeable future, the resulting foreign currency gains and losses are considered part of the net investment in the foreign operation. The foreign currency gains and losses are then reported in other comprehensive income and recognised in the “Differences from currency translation” in equity.
Exchange rates:

|  | EUR closing rates |  | EUR average rates
| 31/12/2016 | 31/12/2015 | 1-12/2016 | 1-12/2015
Swiss franc (CHF) | 1.0739 | 1.0835 | 1.0903 | 1.0752
Czech koruna (CZK) | 27.0210 | 27.0230 | 27.0408 | 27.3053
Hungarian forint (HUF) | 309.8300 | 315.9800 | 312.2223 | 310.0446
Croatian kuna (HRK) | 7.5597 | 7.6380 | 7.5441 | 7.6211
Polish złoty (PLN) | 4.4103 | 4.2639 | 4.3659 | 4.1909
Bosnia and Herzegovina convertible mark (BAM) | 1.9558 | 1.9558 | 1.9558 | 1.9558
Romanian leu (RON) | 4.5390 | 4.5240 | 4.4957 | 4.4440
Bulgarian lev (BGN) | 1.9558 | 1.9558 | 1.9558 | 1.9558
Ukrainian hryvnia (UAH) | 28.5130 | 26.1223 | 28.2317 | 24.6297
Serbian dinar (RSD) | 123.4600 | 121.5835 | 123.0150 | 120.7530
Russian rouble (RUB) | 64.3000 | 80.6736 | 73.8756 | 69.0427
Albanian lek (ALL) | 134.9700 | 136.9100 | 137.2746 | 139.5977
Macedonian denar (MKD) | 61.5531 | 61.3868 | 61.6596 | 61.5080
US dollar (USD) | 1.0541 | 1.0887 | 1.1021 | 1.1130

2.6 Insurance items
Premiums written
The (gross) premiums written include those amounts that have been called due by the insurer either once or on an ongoing basis in the financial year for the purposes of providing the insur-ance coverage. The premiums written are increased by the charges added during the year (in the event of payment in instalments) and the ancillary charges in line with the tariffs. In the case of unit-linked and index-linked life insurance, only the premiums decreased by the savings por-tion are stated in the item “Premiums written”.
Insurance and investment contracts
Insurance contracts, i.e. contracts through which significant insurance risk is assumed, and investment contracts with a discretionary participation feature are treated in accordance with IFRS 4, i.e. under application of US GAAP. Investment contracts, i.e. contracts that do not trans-fer a significant insurance risk and that do not include a discretionary participation feature, fall under the scope of IAS 39 (Financial Instruments).
Reinsurance contracts
Assumed reinsurance (indirect business) is recognised as an insurance contract in accordance with IFRS 4.
Ceded reinsurance is also subject to the application of IFRS 4 and is presented in a separate item under assets in accordance with IFRS 4. The profit and loss items (premiums and pay-ments) are deducted openly from the corresponding items in the gross account, while commis-sion income is reported separately as its own item.
Deferred acquisition costs
Based on US GAAP, deferred acquisition costs are accounted for in accordance with IFRS 4. In the case of property and casualty insurance contracts, costs directly attributable to the acquisi-tion are deferred and distributed over the expected contract term or according to the unearned premiums. In life insurance, the deferred acquisition costs are amortised in line with the pat-tern of expected gross profits or margins.
Unearned premiums
For short-term insurance contracts, such as most property and casualty insurance policies, the premiums relating to future years are reported as unearned premiums in line with the applica-ble regulations of US GAAP. The amount of these unearned premiums corresponds to the insur-ance cover granted proportionally in future periods.
Premiums levied upon entering into certain long-term contracts (e.g. upfront fees) are rec-ognised as unearned premiums. In line with the applicable regulations of US GAAP, these fees are recorded in the same manner as the amortisation of deferred acquisition costs.
These unearned premiums are in principle calculated for each individual policy and exactly to the day. If they are attributable to life insurance, they are included in the insurance provision.
Insurance provisions
Insurance provisions are established in the life and health insurance lines. Their carrying amount is determined based on actuarial principles on the basis of the present value of future benefits to be paid by the insurer less the present value of future net premiums the insurer expects to receive. Similarly, insurance provisions are established in the casualty lines that also cover life-long obligations (accident pensions). The insurance provision of the life insurer is calculated by taking into account prudent and contractually agreed calculation principles.
For policies that are mainly of investment character (e.g. unit-linked life insurance), the provisions of FAS 97 are used to measure the insurance provision. The insurance provision is arrived at by combining the invested amounts, the change in value of the underlying invest-ments and the withdrawals under the policy. For unit-linked insurance policies in which the policyholder carries the sole risk of the value of the investment rising or falling, the insurance provision is listed as a separate liability entry under “Technical provisions for unit-linked and index-linked life insurance”.
The insurance provisions for health insurance are determined based on calculation princi-ples that correspond to the “best estimate”, taking into account safety margins. Once calculation principles have been determined, they have to be applied to the corresponding partial portfolio for the whole duration (locked-in principle).
An unearned revenue liability (URL) allocated to future year premium shares (such as pre-liminary fees) is calculated for unit-linked and index-linked life insurance contracts in accord-ance with FAS 97 and amortised correspondingly to deferred acquisition costs over the contract period.
Provisions for losses and unsettled claims
The provision for unsettled claims in the property and casualty insurance lines contains the actual and the expected amounts of future financial obligations, including the direct claims settlement expenses appertaining thereto, based on accepted statistical methods. This applies for claims already reported as well as for claims incurred but not yet reported (IBNR). In insur-ance lines in which past experience does not allow the application of statistical methods indi-vidual loss provisions are set aside.
Life insurance is calculated on an individual loss basis with the exception of the provision for unreported claims.
As for health insurance, the provisions for unsettled claims are estimated on the basis of past experience, taking into consideration the known arrears in claim payments.
The provision for the assumed reinsurance business generally complies with the figures of the cedents.

Provisions for premium refunds and profit sharing
The provision for premium refunds includes the amounts for profit-related and non-profit related profit sharing to which the policyholders are entitled on the basis of statutory or con-tractual provisions.
In life insurance policies with a discretionary participation feature, differences between lo-cal measurement and measurement according to IFRSs are presented with deferred profit par-ticipation taken into account, whereby this is also reported in profit/(loss) for the year or in other comprehensive income depending on the recognition of the change in the underlying measurement differences. The amount of the provision for deferred profit participation gener-ally comes to 85 per cent of the valuation differentials before tax.
Other technical provisions
This item basically contains the provision for contingent losses for acquired reinsurance portfo-lios as well as a provision for expected cancellations and premium defaults.
Liability Adequacy Test
The Liability Adequacy Test evaluates whether the established IFRS reserves are sufficient. For the life insurance portfolio, a so-called best estimate reserve is compared with the IFRS reserve less the deferred acquisition costs. This calculation is done separately each quarter for mixed insurance policies, pension policies, risk insurance policies, and unit-linked and index-linked policies.
Because UNIQA uses the best estimate approach for calculating the loss reserves in non-life, only the unearned premiums are tested. Only business areas that show a surplus of less than 10 per cent at the time of the annual calculation are tested every quarter. In non-life insurance, the business areas tested are motor vehicle, general liability, and other.
Technical provisions for unit-linked and index-linked life insurance
This item relates to the insurance provisions and the remaining technical provisions for obliga-tions from life insurance policies where the value or income is determined by investments for which the policyholder bears the risk or for which the benefit is index-linked. As a general rule, the valuation corresponds with the unit-linked and index-linked life insurance investments written at current market values.
2.7 Other provisions
Provisions are formed if there is a current obligation (be it legal or practical in nature) from a past event, it is likely that fulfilment of the obligation will be associated with an outflow of re-sources, and a reliable estimate of the amount for the provision is possible.
The provision amount assessed is the best estimate for the additional benefit as at the re-porting date for the purposes of settling the current obligation.
The level of the provisions is calculated by discounting the expected future cash flows at a pre-tax interest rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as a finance cost.
2.8 Employee benefits
Short-term employee benefits
Obligations from short-term employee benefits are recognised as expenses through profit or loss as soon as the associated work is performed. A liability must be recognised for the expected amount to be paid

if there is currently a legal or de facto obligation to pay this amount on the basis of work performed by the employee and the obligation can be reliably estimated.
Defined contribution plans
Obligations for contributions to defined contribution plans are recognised as expenses through profit or loss as soon as the associated work is performed. Prepaid contributions are recognised as assets if an entitlement to refund or reduction of future payments arises. The defined contri-bution plan is financed largely by UNIQA.
Board members, special policyholders and active employees in Austria are subject to a basic defined contribution pension fund scheme. The beneficiaries are also entitled to a final pension fund contribution which guarantees them a fixed cash value for retirement when they begin their retirement. According to the provisions of IAS 19, this obligation in the contribution phase is to be classified as a defined benefit. The works council agreement states the extent to which a final pension fund contribution is provided to the beneficiary’s individual assurance cover ac-count in the event of a transfer to the old-age pension or of an incapacity to work or the death as a participant. UNIQA has no obligations during the benefit phase.
Defined benefit plans
There are individual contractual pension obligations, individual contractual bridge payments, and pension allowances in accordance with association recommendations. Individuals who hold an individual contractual agreement can generally claim a pension when they reach the age of 60 or 65, subject to certain conditions. The amount of the pension generally depends on the number of their years of service and their last salary before leaving their active employment. In the event of death, the spouse of the individual entitled to the claim receives a pension at 60 per cent, 50 per cent or 40 per cent depending on the policy. The pensions are suspended for any period in which a termination benefit is paid and their value is generally guaranteed.
The calculation of defined benefit obligations is carried out annually by a qualified actuary using the projected unit credit method. If the calculation results in a potential asset for the Group, the asset recognised is limited to the present value of any economic benefit available in the form of future refunds from the plan or reductions in future contributions to the plan. Any valid minimum funding requirements are included in the calculation of the present value of the economic benefit.
Revaluations of the net liability from defined benefit plans are recognised directly in other comprehensive income. The revaluation includes the actuarial gains and losses, the income from plan assets (not including projected interest income) and the effect of any asset ceiling. The net interest expenses (income) on the net liabilities (assets) from defined benefit plans are calculated for the reporting period by applying the discount rate used to measure the defined benefit obligation at the start of the annual reporting period. This discount rate is applied to net liabilities (assets) from defined benefit plans on this date. Any changes in the net liabilities (assets) from defined benefit plans resulting from contribution and benefit payments over the course of the reporting period are taken into account. Net interest expenses and other expenses for defined benefit plans are recognised through profit or loss in the profit/(loss) for the year.
If a plan’s defined benefits are changed or a plan is curtailed, the resulting change in the benefit relating to past service or the gain or loss on the curtailment is recognised directly in profit/(loss) for the year. Gains and losses from the settlement of a defined benefit plan are recognised at the date of the settlement.
Termination benefit entitlements

In the case of employees of Austrian companies whose employment began prior to 31 December 2002 and lasted three years without interruption, the employee is entitled to termination bene-fits when the employment is terminated, unless the employee quits, leaves without an im-portant reason or is guilty of an act resulting in early dismissal. The amount is double the salary owed to the employee in the last month of the employee relationship and increases after five years of employment to three times, after ten years of employment to four times, after fifteen years of employment to six times, after twenty years of employment to nine times and after twenty-five years of employment to twelve times the monthly salary. Employees subject to the collective agreement for insurance undertakings – back office and whose employment began before 1 January 1997 may be entitled to an increase of the statutory claim by 150 per cent. Em-ployees subject to the collective agreement for insurance undertakings – back office and whose employment began after 1 January 1997 are entitled to an increase of 50 per cent of the statuto-ry claim.
For employees of Austrian companies who joined the Group after 31 December 2002, the statutory provisions of the Austrian Company Staff and Self-Employment Pension Provision Act (BMSVG) apply. These people are not included in the calculation of the termination benefits.
The net liability with regard to defined benefit plans is calculated separately for each plan by estimating the future benefits that the rightful claimants have already earned in the current and in earlier periods. This amount is discounted and the fair value of any plan assets is deducted.

Pension entitlements
The pensions that are based on individual policies or on association recommendations are fi-nanced through provisions. The final pension contribution is set aside during the contribution phase and transferred to the pension fund at the time of retirement. The financing is specified in the business plan, in the works council agreement and in the pension fund contract.
Other long-term employee benefits
The net obligation with regard to long-term benefits due to employees comprises the future benefits that the employees have earned in return for work performed in the current and in earlier periods. These obligations include provisions for length of service awards that are paid to employees after reaching a certain length of service. These benefits are discounted to determine their present value. Revaluations are recognised in profit/(loss) for the year in which they arise.
Post-employment benefits
Post-employment benefits are recognised as expenses on the earlier of the following dates: when the Group can no longer withdraw the offer of such benefits or when the Group recognises costs for restructuring. If benefits are not expected to be settled within twelve months of the end of the reporting period, they are discounted.
Share-based payments with cash settlement (share appreciation rights)
The fair value on the date share-based payment awards are granted to employees is recognised as expense over the period in which the employees become unconditionally entitled to the awards. The amount recognised as expense is adjusted in order to reflect the number of awards expected to fulfil the corresponding service conditions and non-market performance conditions, so that the expense recognised is ultimately based on the number of awards that fulfil the corre-sponding service conditions and non-market performance conditions at the end of the vesting period. Changes in valuation assumptions likewise result in an adjustment of the recognised provision amounts affecting income.
2.9 Income taxes
Tax expense includes actual and deferred tax. Actual tax and deferred tax is recognised in profit/(loss) for the year, with the exception of any amount associated with a business combination or with an item recognised directly in equity or other comprehensive income.
Actual tax
Actual tax includes the expected tax liability or tax receivable on taxable income for the finan-cial year or the tax loss on the basis of interest rates that apply on the reporting date or will soon apply, plus all adjustments of the tax liability relating to previous years. Actual tax liability also includes all the tax liability that may arise as a result of income received domestically or abroad that is subject to a domestic or foreign withholding tax.

Deferred tax
Deferred tax is recognised with regard to temporary differences between the carrying amounts of assets and liabilities in the IFRS consolidated financial statements and the corresponding amounts used for tax purposes. Deferred tax is not recognised for:

• | temporary differences on the first-time recognition of assets or liabilities in the event of a transaction that is not a business combination and that affects neither net earnings before tax-es nor taxable income,

• | temporary differences in connection with shares in subsidiaries, associates and jointly con-trolled entities, provided the Group is able to control the timing of the reversal of the tempo-rary differences and it is probable that they will not reverse in the foreseeable future,

• | taxable temporary differences on the first-time recognition of goodwill.

A deferred tax asset is recognised for unused tax losses, unused tax credits and deductible tem-porary differences to the extent that it is probable that future taxable profits or deferred tax liabilities will be available, which can be used by way of netting.
Deferred tax assets are tested for impairment on every reporting date and reduced to the ex-tent that it is no longer probable that the associated tax advantage will be realised.
Deferred tax is measured on the basis of the tax rates expected to be applied to temporary differences as soon as they reverse, and using tax rates that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax reflects the tax consequences arising from the Group’s ex-pectation of the manner in which it will recover the carrying amounts of its assets or settle its liabilities on the reporting date.
Deferred tax assets and debts are netted out if the conditions for a legal claim to offsetting are met and the deferred tax claims and liabilities relate to income tax that is levied by the same tax authority, either for the same taxable item or for different taxable items, aimed at achieving a settlement on a net basis.
Group taxation
UNIQA exercises the option of forming a group of companies for tax purposes provided by the legislators in Austria; there are three taxable groups of companies with the parent groups UNIQA Insurance Group AG, PremiQaMed Holding GmbH and R-FMZ Immobilienholding GmbH.
The group members are basically charged, or relieved by, the corporation tax amounts attributable to them by the parent group through the distribution of their tax burden in the tax group. Losses from foreign group members are also included within the scope of taxable profits. The tax realisation for these losses is accompanied by a future tax obligation to pay income taxes at an unspecified point in time. A corresponding provision is therefore formed for future subse-quent taxation of foreign losses.
2.10 Property, plant and equipment
Property, plant and equipment is measured at cost less accumulated depreciation and accumu-lated impairment losses.
If parts of an item of property, plant and equipment have different useful lives, they are recog-nised as separate items (main components) of property, plant and equipment. Gains from the disposal of property, plant and equipment are recorded under the item “Other insurance in-come”, while losses are recorded under “Other technical expenses”.

If the use of a property changes and an owner-occupied property becomes an investment property, the property is reclassified as investment land and buildings with the carrying amount as at the date of the change.
Subsequent costs are only capitalised when it is probable that the future economic benefit associated with the expense will flow to the Group. Ongoing repairs and maintenance are recog-nised as expenses immediately.
The depreciation is calculated in order to write down the costs of property, plant and equipment less their estimated residual values on a straight-line basis over the period of their estimated useful lives. Land is not depreciated.
The estimated useful lives of significant property, plant and equipment for the current year and comparative years are as follows:
• Buildings: 10–77 years
• Plant and equipment: 2–20 years
Depreciation methods, useful lives and residual values are reviewed on every reporting date and adjusted if necessary. The depreciation charges for property, plant and equipment are recog-nised in profit/(loss) for the year on the basis of allocated operating expenses under the items “Insurance benefits”, “Operating expenses” and “Net investment income”. The allocation of operating expenses denotes the allocation of expenses and income on the basis of their causa-tion to the main groups of the consolidated income statement.
2.11 Intangible assets
Deferred acquisition costs
Deferred acquisition costs for insurance activities that are directly related to new business and/or to extensions of existing policies and that vary in line with that business are capitalised and amortised over the term of the related insurance contracts. If they are attributable to prop-erty and casualty insurance, they are amortised over the probable contractual term. In life in-surance, the acquisition costs are amortised over the duration of the contract in the same pro-portion as the actuarial profit margin of each individual year is realised in comparison to the total margin to be expected from the contracts. For long-term health insurance contracts, the amortisation of acquisition costs is measured in line with the proportionate share of earned premiums in the present value of expected future premium income. The changes in deferred acquisition costs are recognised as part of profit/(loss) for the year under operating expenses.
Goodwill
Goodwill arises upon acquisition of subsidiaries and represents the surplus of the consideration transferred for acquisition of the company above the fair value of UNIQA’s share in the identifi-able assets acquired, the liabilities assumed, contingent liabilities and all non-controlling shares

in the acquired company at the time of the acquisition. Goodwill is valued at cost less accumu-lated impairment losses. The impairment of goodwill is recognised in profit/(loss) for the year under the item “Amortisation of goodwill and impairment losses”.
Value of insurance contracts
Values of life, property and casualty insurance policies relate to expected future margins from purchased operations and are recognised at the fair value at the acquisition date.
The amortisation of the current value of the insurance contracts follows the progression of the estimated gross margins. The amortisation of the value of the insurance contracts is recog-nised under “Amortisation of goodwill and impairment losses”.
Other intangible assets
Other intangible assets include both purchased and internally developed software, which is depreciated on a straight-line basis over its useful economic life of 2 to 40 years.
In accordance with the provisions of IAS 38, costs that are incurred at the research stage for in-house software are recognised through profit or loss in profit/(loss) for the year in which they were incurred. Costs that are incurred at the development stage are deferred provided that it is foreseeable that the software will be completed, there is the intention and ability for future internal use and a future economic benefit arises from this.
The amortisation and redemption of the other intangible assets is recognised in profit/(loss) for the year on the basis of allocated operating expenses under the items “Insurance benefits”, “Operating expenses” and “Net investment income”.
2.12 Investment property
Land and buildings, including buildings on third-party land, held as long-term investments to generate rental income and/or for the purpose of capital appreciation are measured at cost when they are acquired. Subsequent measurement follows the cost model. The property held as financial investments is subject to linear depreciation over the useful life of 10 to 77 years and is recognised under the item “Net investment income and income from investment property”.

2.13 Treasury shares
The acquisition costs of treasury shares are recognised as a deduction from equity.
2.14 Financial instruments
Classification
The Group classifies non-derivative financial assets to the following categories: “Financial as-sets measured at fair value through profit or loss”, “Loans and receivables” and “Financial assets available for sale”.
Non-derivative financial liabilities are classified as measured at amortised cost.
Derivatives are recognised as financial assets or liabilities at fair value through profit/(loss).
Recognition and derecognition
Loans, receivables and issued debt securities are recognised from the date on which they arise. All other financial assets and liabilities are recognised for the first time on the settlement date. Financial assets are derecognised when the contractual rights to cash flows from an asset expire or the rights are transferred to receive the cash flows in a transaction in which all major risks and opportunities connected with the ownership of the financial asset are transferred.
Financial liabilities are derecognised when the contractual obligation is fulfilled, extin-guished or expired.
Derivatives are recognised on the day of contractual agreement. They are derecognised when the contractual obligations have expired or in the event of early settlement.
Valuation
With the exception of mortgages and other loans, investments are listed at their fair value, which is established by determining a market value or, given an active market, the stock market price. In the case of investments that are not listed on an active market, the fair value is deter-mined through internal valuation models or on the basis of estimates of what amounts could be achieved under current market conditions in the event of proper realisation.
Financial assets measured at fair value through profit or loss
Financial assets are measured at fair value through profit or loss if the asset is either held for trading or is designated at fair value and recognised in profit and loss (fair value option).
The fair value option is applied to structured products that are not split between the under-lying transaction and the derivative, but are accounted for as a unit. Structured products are recognised in the category “Financial assets recognised at fair value through profit or loss”. Unrealised gains and losses are recognised in profit/(loss) for the year. The category “Financial assets recognised at fair value through profit or loss” includes ABS bonds, structured bonds, hedge funds and investment certificates whose original classification fell within this category.
Financial assets at fair value through profit or loss are carried at fair value. Each profit or loss resulting from the measurement is recognised through profit or loss.
Derivatives are used within the limits permitted under the Austrian Insurance Supervisory Act for hedging investments and for increasing earnings. All fluctuations in value are recognised in profit/(loss) for the year. Financial assets from derivative financial instruments are recog-nised under investments. Financial liabilities from derivative financial instruments are recog-nised under financial liabilities.

Available-for-sale financial assets
Available-for-sale financial assets are initially measured at fair value plus directly attributable transaction costs. Subsequently, available-for-sale financial assets are measured at fair value and corresponding value changes are, with the exception of impairment and foreign exchange differences in the case of available-for-sale debt securities, recognised in the accumulated profits in equity. When an asset is derecognised, the accumulated other comprehensive income is reclassified to profit/(loss) for the year.
Loans and receivables
When first recognised, such assets are measured at their fair value plus directly attributable transaction costs. Subsequently, they are measured at amortised cost using the effective interest method.
Non-derivative financial liabilities
When first recognised, non-derivative financial liabilities are measured at fair value less directly attributable transaction costs. Subsequently, these financial liabilities are measured at amor-tised cost using the effective interest method.
Unit-linked and index-linked life insurance investments
These investments concern life insurance contracts whose value or profit is determined by investments for which the policyholder carries the risk. The investments in question are col-lected in asset pools, recognised at their fair value and kept separately from the remaining in-vestments of the companies. The policyholders are entitled to all income from these invest-ments. The amount of the recognised investments strictly corresponds to the insurance provi-sions (before reinsurance business ceded) for life insurance, to the extent that the investment risk is borne by the policyholders. The unrealised gains and losses from fluctuations in the fair values of the investment pools are thus offset by the appropriate changes in these provisions.

Cash and cash equivalents
In the consolidated statement of cash flows, cash and cash equivalents include bank balances available upon demand, which are a central component of the management of the payment transactions. They are measured at the exchange rate in effect on the reporting date.
2.15 Impairments
Non-derivative financial assets
Financial assets not designated as at fair value through profit or loss, including interests in entities accounted for using the equity method, are tested on every reporting date to determine whether there is any objective indication of impairment. For debt instruments and assets in the category “Loans and receivables”, this test is executed within the framework of an internal impairment process. If objective indicators suggest that the value currently attributed is not tenable, an impairment is recognised.
Objective indications that financial assets are impaired are:

• | the default or delay of a debtor,

• | the opening of bankruptcy proceedings for a debtor, or signs indicating that such proceedings are imminent,

• | adverse changes in the rating of borrowers or issuers,

• | changes in the market activity of a security, or

• | other observable data that indicate a significant decrease in the expected payments from a group of financial assets.

In the case of an investment in an equity instrument, a significant or prolonged decline in the fair value below its cost is also objective evidence of impairment. A significant decrease is a decrease of 20 per cent, and a prolonged decline is one that lasts for at least nine months.
Financial assets measured at amortised cost
Impairment is calculated as the difference between the carrying amount and the present value of the estimated future cash flows, discounted at the original effective interest rate of the asset. Losses are recognised in profit/(loss) for the year. If there are no realistic chances of recovering the asset, an impairment has to be recognised. In case of an event that causes a reversal of im-pairment losses, this is recognised in the profit/(loss) for the year. In the event of a definitive non-performance, the asset is derecognised.

Available-for-sale financial assets
Impairment of available-for-sale financial assets is recognised in profit/(loss) for the year by reclassifying the losses accumulated in equity. The accumulated loss that is reclassified from equity to profit/(loss) for the year is the difference between the acquisition cost, net of any redemptions and amortisations and current fair value, less any impairment loss previously recognised in profit or loss. If the fair value of an impaired, available-for-sale debt instrument increases in a subsequent period and the increase can be objectively related to an event occur-ring after the impairment was recognised, the impairment is reversed, with the amount of the reversal recognised in profit or loss. Reversals of impairment losses of equity instruments held at fair value cannot be recognised through profit/(loss) for the year.
Associates accounted for using the equity method
An impairment loss relating to an associate accounted for at equity is measured by comparing the recoverable amount of the shares with their carrying amount. The impairment loss is recog-nised in profit/(loss) for the year. An impairment loss is reversed in the event of an advanta-geous change in the estimates used to determine the recoverable amount.
Non-financial assets
The carrying amounts of UNIQA’s non-financial assets – excluding deferred tax assets – are reviewed at every reporting date to determine whether there is an indication of impairment. If this is the case, the recoverable amount of the asset is estimated. The goodwill and intangible assets with indefinite useful lives are tested for impairment annually.
In order to test for impairment, assets are grouped into the smallest groups of assets whose continued use generates cash flows that are to the greatest possible extent independent of cash flows from other assets or cash-generating units (CGUs). Goodwill acquired in a business com-bination is allocated to the CGUs or groups of CGUs expected to benefit from the synergies of the combination.
The recoverable amount of an asset or a CGU is the higher of its value in use or its fair value less costs to sell. When calculating value in use, the estimated future cash flows are discounted to their present value, whereby a pre-tax discount rate is used that reflects current market as-sessments of the time value of money and the risks specific to the asset or CGU.
An impairment is recognised if the carrying amount of an asset or a CGU exceeds its recov-erable amount. Impairments are generally recognised in profit/(loss) for the year. Impairment recognised for CGUs is first allocated to any goodwill allocated to the CGU and then to the car-rying amount of the other assets of the CGU (group of CGUs) on a proportional basis.
An impairment loss on goodwill is not reversed. In the case of other assets, an impairment loss is reversed only to the extent that it does not increase the carrying amount of the asset above the carrying amount that would have been determined net of depreciation or amortisa-tion had no impairment loss been recognised.
2.16 Determination of fair value
A range of accounting policies and disclosures requires the determination of the fair value of financial and non-financial assets and liabilities. UNIQA has defined a control framework with regard to the determination of fair value. This includes a measurement team, which bears gen-eral responsibility for monitoring all major measurements of fair value, including Level 3 fair values, and reports directly to the Group Management Board.

The measurement team carries out a regular review of the major unobservable input factors and the measurement adjustments. If information from third parties (e.g. price quotations from brokers or price information services) is used to determine fair values, the measurement team examines the evidence obtained from third parties for the conclusion that such measurements meet the requirements of IFRSs, including the level in the fair value hierarchy to which these measurements are attributable. Major items in the measurement are reported to the Audit Committee.
As far as possible, UNIQA uses data that are observable on the market when determining the fair value of an asset or a liability. Based on the input factors used in the valuation techniques, the fair values are assigned to different levels in the fair value hierarchy:

• | Level 1: quoted prices (unadjusted) on active markets for identical assets and liabilities. At UNIQA these primarily involve quoted shares, quoted bonds and quoted investment funds.

• | Level 2: valuation parameters that are not quoted prices included in Level 1 but which can be observed for the asset or liability either directly (i.e. as a price) or indirectly (i.e. derived from prices), or are based on prices on markets that have been classified as inactive. The parameters that can be observed here include exchange rates, yield curves and volatilities. At UNIQA, these include in particular quoted bonds that do not fulfil the conditions under Level 1, along with structured products.

• | Level 3: valuation parameters for assets or liabilities that are not based or are only partly based on observable market data. The valuations here are primarily based on the discounted cash flow method, benchmark procedures with instruments for which there are observable prices, and other procedures. As there are no observable parameters here in many cases, the esti-mates used can have a significant impact on the result of the valuation. At UNIQA, it is primar-ily other equity investments, private equity and hedge funds, ABS and structured products that do not fulfil the conditions under Level 2 that come under Level 3.

If the input factors used to determine the fair value of an asset or a liability can be assigned to different levels of the fair value hierarchy, the entire fair value measurement is assigned to the respective level of the fair value hierarchy that corresponds to the lowest input factor significant for the measurement overall.
UNIQA recognises reclassifications between different levels of the fair value hierarchy at the end of the reporting period in which the change occurred.

Valuation process and methods
Financial instruments measured at fair value
For the valuation of capital investments, those procedures are mainly used that are best suited for the establishment of value. The following standard valuation procedures are applied for financial instruments which come under Levels 2 and 3:
Market-value-oriented approach
The valuation method in the market-value-oriented approach is based on prices or other mate-rial information from market transactions which involve identical or comparable assets and liabilities.
Net present value approach
The net present value approach corresponds with the method whereby the future (expected) payment flows or earnings are inferred on a current amount.
Cost-oriented approach
The cost-oriented approach generally corresponds with the value which would have to be ap-plied in order to procure the asset once again.
Non-financial assets and loans
The fair value of investment property within the scope of the impairment test in accordance with IAS 36, as well as for the disclosures according to IFRS 13, is determined based on expert reports.
The loans are accounted for at amortised cost in accordance with the valuation method in the “Loans and receivables” category. Any required impairment is determined with due regard to the collateral and the debtor’s creditworthiness.
Financial liabilities
The fair value of financial liabilities and subordinated liabilities is determined using the dis-counted cash flow method. Yield curves and CDS spreads are used as input factors.

Valuation methods and inputs in the determination of fair values:

Assets | Price method | Input factors | Price model
Fixed-income securities |  |  |
Listed bonds | Listed price | - | -
Not listed bonds | Theoretical price | CDS spread, yield curves | Present value method
Unquoted asset backed securities | Theoretical price | - | Discounted cash flow,
|  |  | single deal review, peer
Variable-income securities |  |  |
Listed shares/investment funds | Listed price | - | -
Private equities | Theoretical price | Certified net asset values | Net asset value method
Hedge funds | Theoretical price | Certified net asset values | Net asset value method
Other shares | Theoretical value | WACC, | Expert opinion
|  | (long-term) revenue growth rate, |
|  | (long-term) profit margins, |
|  | control premium |
Derivative financial instruments |  |  |
Equity basket certificate | Theoretical price | CDS spread, yield curves | Black-Scholes Monte Carlo N-DIM
CMS floating rate note | Theoretical price | CDS spread, yield curves, | Libor market model, Hull-White-Garman-
|  | volatilities (FX, cap/floor, swaption, | Kohlhagen Monte Carlo
|  | constant maturity swap, shares) |
CMS spread certificate | Theoretical price | CDS spread, yield curves, | Contract specific model
|  | volatilities (FX, cap/floor, swaption, |
|  | constant maturity swap, shares) |
Fund basket certificate | Theoretical price | Deduction of fund prices | Contract specific model
FX (Binary) option | Theoretical price | CDS spread, yield curves, | Black-Scholes-Garman-Kohlhagen Monte
|  | volatilities (FX, cap/floor, swaption, | Carlo N-DIM
|  | constant maturity swap, shares) |
Option (Inflation, OTC, OTC FX options) | Theoretical price | CDS spread, yield curves, | Black-Scholes Monte Carlo N-DIM, contract
|  | volatilities (FX, cap/floor, swaption, | specific model, inflation market model NKIS
|  | constant maturity swap, shares) |
Structured bonds | Theoretical price | CDS spread, yield curves, | Black-Scholes-Garman-Kohlhagen Monte
|  | volatilities (FX, cap/floor, swaption, | Carlo N-DIM, LMM
|  | constant maturity swap, shares) |
Swap, cross currency swap | Theoretical price | CDS spread, yield curves, | Black-Scholes-Garman-Kohlhagen Monte
|  | volatilities (FX, cap/floor, swaption, | Carlo N-DIM, Black 76 model, Libor market
|  | constant maturity swap, shares) | model, contract specific model
Swaption, total return swaption | Theoretical price | CDS spread, yield curves, | Black - basis point volatility, contract
|  | volatilities (FX, cap/floor, swaption, | specific model
|  | constant maturity swap, shares) |
Variance, volatility, correlation swap | Theoretical price | CDS spread, yield curves, | Contract specific model, Heston - Monte
|  | volatilities (FX, cap/floor, swaption, | Carlo optimal strategy
|  | constant maturity swap, shares) |
Investments from investment contracts |  |  |
Listed shares/investment funds | Listed price | - | -
Not listed investment funds | Theoretical price | CDS spread, yield curves | Present value method
Loans and receivables |  |  |
Loans | Theoretical value | Collateral, creditworthiness | Discounted cash flow
Others |  |  |
Land and buildings | Theoretical value | Construction and property value, location, | Income value method,
|  | useable area, usage category, condition, | asset value method, income value

|  | current contractual rent rates and current | and net asset value weighted
|  | vacancies including rental forecasts |

Further information on the assumptions used to determine the fair values is given in the follow-ing notes:

• | Note 9 on investment property

• | Note 13 on financial instruments

2.17 Operating segments
The accounting and valuation methods of the segments that are subject to mandatory reporting correspond to the consolidated accounting and valuation methods described above. A decision was made to streamline the group structure as part of the UNIQA 2.0 strategic programme that has been ongoing since 2011. With the related decrease in the size of the Management Board reporting lines have changed. As a result, segment reporting was subject to a strategic review and the organisational structure applicable as at 1 July 2016 has been adapted accordingly. The earnings before income taxes for the segments were determined taking the following compo-nents into consideration: summation of the IFRS profits in the individual companies, taking the elimination of investment income in the various segments and impairment of goodwill into consideration. All other consolidation effects (profit/(loss) at associates, elimination of interim results, and other overall effects) are included in “Consolidation”. The segment profit/(loss) obtained in this manner is reported to the Management Board of UNIQA Insurance Group AG to manage the Group in the following operating segments:

• | UNIQA Austria – includes the Austrian insurance business.

• | UNIQA International – includes the Austrian holding companies UNIQA International AG and UNIQA Internationale Beteiligungs-Verwaltungs GmbH in addition to all foreign insur-ance companies (with the exception of UNIQA Re AG). This segment is divided into the fol-lowing main areas on a regional basis:

• | Western Europe (WE – Switzerland, Italy and Liechtenstein)

• | Central Europe (CE – Czech Republic, Hungary, Poland and Slovakia)

• | Eastern Europe (EE – Romania and Ukraine)

• | Southeastern Europe (SEE – Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Monte-negro, Macedonia, Serbia and Kosovo)

• | Russia (RU)

• | Administration (the Austrian holding companies)

• | Reinsurance – includes UNIQA Re AG (Zurich, Switzerland), UNIQA Versicherung AG (Vaduz, Liechtenstein) and the reinsurance business of UNIQA Insurance Group AG.

• | Group functions – includes the remaining items for UNIQA Insurance Group AG (investment income and administrative costs) as well as all other remaining Austrian and foreign service companies.

3. Changes in major accounting policies as well as new and amended standards
With the exception of the following changes, the outlined accounting policies were consistently applied to all periods presented in these consolidated financial statements.
Amendments and standards to be applied for the first time
The Group applied the following amendments to standards, and they were first adopted as at 1 January 2016. None of the new regulations arising from this have any essential impact on UNIQA’s financial position.

Standard | Content | First time application | Impact
|  | by UNIQA | on UNIQA
IAS 19 | Employee benefits – defined benefit plans: employee contributions 1 | February 2015 | Yes
Miscellaneous | Annual Improvements Project 2012– 2014 | 1 | February 2015 | Yes
IAS 1 | Presentation of financial statements (disclosure initiative) | 1 | January 2016 | Yes
IAS 16, IAS 38 | Property, plant and equipment and intangible assets – clarification | 1 | January 2016 | No
| of the admissible methods of depreciation and amortisation |  |  |
IAS 16, IAS 41 | Property, plant and equipment and agriculture – bearer plants | 1 | January 2016 | No
IAS 27 | Separate financial statements – equity method in separate | 1 | January 2016 | No
| financial statements |  |  |
IFRS 11 | Joint arrangements – acquisition of interests in joint operations | 1 | January 2016 | No
IFRS 10, IFRS 12, | Consolidated financial statements and investments in associates | 1 | January 2016 | No
IAS 28 | and joint ventures – investment entities: applying the |  |  |
| consolidation exception |  |  |
Miscellaneous | Annual Improvements Project 2012– 2014 | 1 | January 2016 | Yes

IAS 1 – Disclosure initiative
The changes in IAS 1 are meant to ensure that companies, when preparing their consolidated financial statements, put an enhanced focus of their understanding on the question of what information is essential for the consolidated financial accounts and in what order these facts are to be presented.
IAS 19 – Employee benefits
This contains clarification in connection with the defined benefit plans of employees.
Annual Improvements Project 2011–2013
The goal of the annual adjustments to the standards is to clarify the existing regulations. The adjustments concerned IFRS 1, IFRS 3, IFRS 13 and IAS 40.
Annual Improvements Project 2012–2014
The goal of the annual adjustments to the standards is to clarify the existing regulations. The adjustments concerned IFRS 5, IFRS 7, IAS 19 and IAS 34.

New and amended standards to be applied in the future
The IASB has also published a range of new standards that will be applicable in the future. The
Group does not intend to apply these standards early.

Standard | Content | First time | Endorsement | Likely to be
|  | application | by the EU | relevant
|  | by UNIQA |  | for UNIQA
New standards |  |  |  |
IFRS 9 | Financial instruments | 1 January 2018 | Yes | Yes
IFRS 14 | Regulatory deferral accounts | 1 January 2016 | No 1) | Yes
IFRS 15 | Revenue from contracts with customers | 1 January 2018 | Yes | Yes
IFRS 16 | Leases | 1 January 2019 | No | Yes
Amended standards |  |  |  |
IFRS 10, IAS 28 | Consolidated financial statements and investments in associates and joint ventures – sale or | 1 January 2016 | No 2) | Yes
| contribution of assets between an investor and its associate or joint venture |  |  |
IAS 7 | Cash flow statements – disclosure initiative | 1 January 2017 | No | Yes
IAS 12 | Corporate income tax – recognition of assets from deferred taxes for unrealised losses | 1 January 2017 | No | No
Miscellaneous | Annual Improvements Project 2014– 2016 | 1 January 2017 | No | Yes
IFRS 2 | Share-based payment – classification and valuation of business transactions with share-based | 1 January 2018 | No | Yes
| payment |  |  |
IFRS 4 | Insurance contracts – application of IFRS 9 in connection with IFRS 4 | 1 January 2018 | No | Yes
IFRIC 22 | Currency translation for advance payments | 1 January 2018 | No | No

1) The European Commission decided not to adopt this interim standard and to wait for publication of the final standard.

2) | The endorsement was postponed indefinitely

IFRS 9 – Financial instruments and IFRS 4 – Insurance contracts
The new standard deals with the classification, recognition and measurement of financial assets and financial liabilities. The full version of IFRS 9 was published in July 2014. This standard replaces the regulations of those sections of the existing IAS 39 that address the classification and measurement of financial instruments. IFRS 9 adheres to a mixed measurement model, but it simplifies this and sets out three principal measurement categories for financial assets: meas-urement at amortised cost, measurement at fair value with value fluctuations recorded in prof-it/(loss) for the year (fair value through profit and loss) and measurement at fair value with value fluctuations recorded in other comprehensive income (fair value through OCI). The clas-sification depends directly on the company’s business model as well as on the features of the contractually agreed payment flows for the financial assets. Shares of equity instruments must be measured at fair value, with fluctuations in fair value recognised through profit or loss, or with fluctuations in fair value measured through other comprehensive income if the company irrevocably opts to do so upon first-time recognition of the equity instruments (with no subse-quent reclassification in net profit for the year).
There is also a new measurement model for impairments based on expected losses (ex-pected credit losses model) which replaces the existing measurement model of actual losses incurred that was used in IAS 39 (incurred loss model). Regarding financial liabilities, there are no changes to classification or measurement, with the exception of mandatory reporting of own creditworthiness risk in other comprehensive income for financial liabilities designated at fair value and recognised in profit/(loss) for the year. The standard applies to reporting periods beginning on or after 1 January 2018. Earlier application is permitted.

In this context, the IASB published amendments to IFRS 4 insurance contracts on 12 Sep-tember 2016, aimed at addressing the concerns surrounding the different implementation dates of IFRS 9 financial instruments and the expected new standard IFRS 17 for accounting for in-surance contracts.
The amendments provide two options to companies that issue insurance contracts within the scope of IFRS 4:

• | Companies may reclassify some of the expenses and income from the income statement that emerge from qualified assets as other total comprehensive income. This is known as the over-lay approach. A company must apply the overlay approach to qualifying assets retrospectively when it applies IFRS 9 for the first time.

• | Companies whose primary business activity involves the awarding of insurance contracts within the scope of IFRS 4 have the option of temporarily deferring their IFRS 9 application. This is known as the deferral approach. According to the amendments that make up the defer-ral approach, a company is allowed to apply IAS 39 instead of IFRS 9 for reporting periods that begin prior to 1 January 2021.

The business of a company is primarily the underwriting of insurance contracts if the carrying amount of its liabilities arising from insurance contracts within the scope of application of IFRS 4 is significant in relation to the total carrying value of its liabilities and additionally the percentage of all the liabilities that are connected with insurance business makes up at least 90 per cent or between 80 and 90 per cent if the insurer pursues no other significant business that does not relate to insurance business. The assessment of whether the company qualifies for the deferral approach is to be made on the basis of data from 31 December 2015.
At 31 December 2015 UNIQA’s sum of liabilities directly attributable to insurance business amounted to more than 90 per cent. This means that UNIQA fulfils the criterion necessary for applying the deferral approach. The Management Board has decided to apply the deferral ap-proach.
Companies that have chosen the deferral approach must apply it for reporting periods that begin on or after 1 January 2018. From this point onwards the company must disclose how it is qualified for the temporary exception; moreover, it shall provide information that ensures com-parability with companies that apply IFRS 9. The deferral approach is limited to three years from 1 January 2018. A re-assessment of the primary line of business would only be required in the event that the company changes its business.

This will have an impact on UNIQA’s consolidated financial statements in relation to the classi-fication and measurement of financial assets. Basically, UNIQA can maintain the valuation categories already established under the scope of IAS 39.
Valuation categories

IAS 39 | IFRS 9
Financial assets recognised at fair value through profit or loss | Measured at fair value with value fluctuations recognised in
| profit/(loss) for the year (fair value through profit and loss)
Available-for-sale financial assets | Measured at fair value with value fluctuations recognised in other
| comprehensive income (fair value through OCI).
Loans and receivables | Measured at amortised cost

The changeover effects will be due to the new classification of financial instruments according to IFRS 9. On the one hand, compliance with the SPPI criterion (solely payments of principal and interest) is relevant, and on the other, the determination of the respective business model.
Testing the SPPI criterion means evaluating whether the contractual cash flows consist solely of interest and principal payments. If a company is in compliance with the SPPI criterion, the debt instruments are subject to the assessment of which business model to apply. On this basis, the respective financial asset is assigned to the suitable measurement category and is measured accordingly. With the exception of the OCI option for equity instruments, derivatives and equity instruments are recognised at fair value with value fluctuations recorded in prof-it/(loss) for the year.
The new impairment model (expected credit losses model) according to IFRS 9 will pre-sumably cause significant changeover effects. According to this model, depreciation must be recorded for financial assets classified as fair value through OCI and valued at amortised cost, depending on its default risk and maturity. The quantitative effects of the changeover from IAS 39 to IFRS 9 are currently being evaluated.
IFRS 15 – Revenue from contracts with customers
IFRS 15 governs revenue recognition and sets out the basic principles for reporting of meaning-ful information on the type, amount, recognition date and uncertainties regarding revenues and payment flows from contracts with customers. Sales revenues are recorded if a customer has control over a delivered item or a service provided and has the ability to enjoy these goods and services and derive benefits from these. The standard replaces IAS 18 and IAS 11 and the associ-ated interpretations. The standard applies to reporting periods beginning on or after 1 January 2017. The IASB grants the company a right of choice with regard to initial application. IFRS 15 can be applied completely retrospectively, i.e. by adjusting the comparison periods, or the cu-mulative effect resulting from the retrospective application can be recognised as an adjustment to the opening balance of retained earnings (so-called modified retrospective application). UNIQA will use the modified retrospective application as far as IFRS 15 is concerned.
We expect only minor effects on UNIQA’s consolidated financial statements.

IFRS 16 – Leases
The standard replaces IAS 17 and covers the reporting of leases. UNIQA acts both as a lessee and a lessor. There are no adjustments to accounting on the lessor side necessary as a result of the introduction of IFRS 16. For UNIQA as lessee, contracts hitherto classified as operating leases would now be subject to capitalisation. Given that UNIQA acts as lessee only to an insignificant degree, no significant effects are expected to result from the future status of the financial posi-tion and profitability. The standard applies to reporting periods beginning on or after 1 January 2019. The IASB grants the lessee a right of choice with regard to the first-time applica-tion. With respect to the first-time application of IFRS 16, the company can also choose between a completely retrospective application and a modified retrospective application. UNIQA will choose the modified retrospective application as far as the first-time application of IFRS 16 is concerned.
We expect only minor effects on UNIQA’s consolidated financial statements.
IAS 7 – Cash flow statements
The objective of the amendments is to provide the users of financial statements with better information on the financing operations. This includes additional information on changes in cash and cash equivalent transactions and will result in a broader scope of reporting.
IFRS 2 – Share-based payments
The amendments serve to clarify the classification and measurement of business transactions on the basis of share-based payments.
4. IAS 8.42 restatements
Presentation of the consolidated statement of cash flows
Restatements have been made compared to the presentation in the previous years. Prior-year amounts have been adjusted accordingly with respect to changes in technical provisions, chang-es in defined benefit obligations, changes in deferred tax assets and deferred tax liabilities as well as the proceeds from disposal and maturity of other investments.
Unearned revenue liability
As part of the changes to the Group structures resulting from the strategic programme UNIQA 2.0, the measurement of the parts of premiums relating to future years of unit-linked and index-linked life insurance contracts was adjusted. From the reporting date onwards said parts will be recognised as unearned revenue liability under technical provisions. The valuation of deferred acquisition costs and prior-year amounts have been adjusted accordingly.

Assets | 31/12/2015 31/12/2015 31/12/2015
In € thousand | adjusted | published | adjustment
Property, plant and equipment | 292,989 | 307,741 | – 14,752
Intangible assets | 1,703,058 | 1,472,476 | 230,582
Deferred tax assets | 13,115 | 9,427 | 3,688
Total assets | 33,297,873 | 33,078,355 | 219,518
Equity and liabilities | 31/12/2015 31/12/2015 31/12/2015
In € thousand | adjusted | published | adjustment
Total equity |  |  |
Equity attributable to UNIQA Insurance Group AG shareholders |  |  |
Subscribed capital and capital reserves | 1,789,920 | 1,789,920 | 0
Treasury shares | – 10,857 | – 10,857 | 0
Accumulated results | 1,365,453 | 1,373,651 | – 8,198
| 3,144,516 | 3,152,714 | – 8,198
Non-controlling interests | 21,853 | 22,127 | – 274
| 3,166,369 | 3,174,841 | – 8,472
Liabilities |  |  |
Technical provisions | 21,328,061 | 21,100,072 | 227,989
Total equity and liabilities | 33,297,873 | 33,078,355 | 219,518
Consolidated income statement | 1-12/2015 | 1-12/2015 | 1-12/2015
In € thousand | adjusted 1) | published | adjustment
Insurance benefits |  |  |
Gross | – 4,745,094 | – 4,749,877 | 4,783
Reinsurers’ share | 142,310 | 142,310 | 0
| – 4,602,784 | – 4,607,567 | 4,783
Operating expenses |  |  |
Expenses for the acquisition of insurance | – 947,796 | – 950,390 | 2,594
| – 1,296,101 | – 1,298,695 | 2,594
Technical result | 207,242 | 199,864 | 7,378
Operating profit/(loss) | 501,480 | 494,102 | 7,378
Earnings before taxes | 430,218 | 422,840 | 7,378
Income taxes | – 89,536 | – 88,254 | – 1,282
Profit/(loss) for the year | 340,682 | 334,586 | 6,096
of which attributable to shareholders of UNIQA Insurance Group AG | 337,160 | 331,087 | 6,073
of which attributable to non-controlling interests | 3,521 | 3,499 | 22
Earnings per share (in €) | 1.09 | 1.07 | 0.02

1) | For clarity in the presentation of adjustments, the presentation includes discontinued business operations.

5. Use of discretionary decisions and estimates
The consolidated financial statements require the Group Management Board to make discre-tionary decisions, estimates and assumptions that relate to the application of accounting poli-cies and the amounts stated for the assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and their underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recorded prospectively.
The most significant instances where discretion has been exercised and forecasts for the fu-ture have been used for these consolidated financial statements are described below.

5.1 Impairment test
Ascertainment and allocation of goodwill
Goodwill arises from company mergers and acquisitions. It represents the difference between the acquisition costs and the proportional and current corresponding net fair value of identifia-ble assets, debts and specific contingent liabilities. Goodwill is not subject to amortisation, but reported at the acquisition cost less any accrued impairments.
For the purpose of the impairment test, UNIQA has allocated the goodwill to “Cash-generating units” (CGUs). These CGUs are the smallest identifiable groups of assets that gener-ate cash flows that are to the greatest possible extent independent from the cash generating units of other assets or other groups of assets. The impairment test involves a comparison be-tween the amount that can be generated by selling or using each CGU, the present value of fu-ture cash flows with its value to be covered, consisting of goodwill, the proportional net assets and any capital increases and internal loans. If the resulting value exceeds the realisable value of the unit based on the discounted cash flow method, an impairment loss is recognised. The im-pairment test was carried out in the fourth quarter of 2016. UNIQA has allocated goodwill to the CGUs listed below, which coincide with the countries in which UNIQA operates. An exception to this was the SIGAL Group, in which the three countries of Albania, Kosovo and Macedonia were combined as one CGU, due to their similar development and organisational connection:

• | UNIQA Austria

• | UNIQA Re

• | Albania/Kosovo/Macedonia as sub-group of the “SIGAL Group” (SEE)

• | Bosnia and Herzegovina (SEE)

• | Bulgaria (SEE)

• | Croatia (SEE)

• | Liechtenstein (WE)

• | Poland (CE)

• | Romania (EE)

• | Russia (RU)

• | Switzerland (WE)

• | Serbia (SEE)

• | Montenegro (SEE)

• | Slovakia (CE)

• | Czech Republic (CE)

• | Ukraine (EE)

• | Hungary (CE)

Determination of the capitalisation rate
The assumptions with regard to risk-free interest rate, market risk premium and segment betas made for determination of the capitalisation rate are consistent with the parameters used in the UNIQA planning and controlling process and are based on the capital asset pricing model.

In order to depict the economic situation of income values as accurately as possible, consid-ering the volatility on the markets, the capitalisation rate was calculated as follows: a uniform, risk-free interest rate according to the Svensson method (German treasury bonds with 30-year maturities) was used as a base interest rate.
The beta factor was determined on the basis of the monthly betas over the last five years for a defined peer group. The betas for the non-life, life and health segments were determined using the revenues in the relevant segments of the individual peer group companies. The health in-surance segment, which is strongly focused on the Austrian market, is operated in a manner similar to life insurance. A uniform beta factor for personal injury insurance is therefore used in relation to the life and health insurance lines.
The market risk premium was determined on the basis of current standards. An additional country risk premium was defined in accordance with Professor Damodaran’s models (NYU Stern). The country risk premium in accordance with the Damodaran method is calculated as follows: starting from the rating of the country concerned (Moody’s), the spread from credit default swap spreads in a rating class to “risk-free” US government bonds is determined, and adjusted by the amount of the volatility difference between equity and bond markets.
The calculation also factored in the inflation differential for countries outside the eurozone. In general, the inflation differential represents inflation trends in different countries and is used as a key indicator in assessing competitiveness. In order to calculate the inflation differen-tial, the deviation of the inflation forecast for the country of the CGU in question in relation to the inflation forecast for a risk-free environment (Germany, in this case) was used. This is ad-justed annually in the detailed planning by the expected inflation, and is subsequently applied for perpetuity with the value of the last year of the detailed planning phase.
Impairment test for goodwill – ascertainment of the recoverable amount
UNIQA calculates the recoverable amount of the CGUs with goodwill allocated on the basis of value in use by applying generally accepted valuation principles by means of the discounted cash-flow method (DCF). The budget projections (detailed planning phase) of the CGUs, the estimate of the long-term net profits achievable by the CGUs and long-term growth rates (per-petuity) are used as the starting point for determination of the capitalised value.
The capitalised value is determined by discounting the future profits with a suitable capital-isation rate after assumed retention to strengthen the capital base. In the process, the capital-ised values are separated by segment, which are then totalled to yield the value for the entire Company.
Corporate income tax was recognised at the level of budgeted tax burden.
Cash flow forecast (multi-phase model)
Phase 1: five-year company planning
The detailed company planning generally encompasses a period of five years. The company plans used for the calculation are the result of a structured and standardised management dia-logue at UNIQA with the participation of UNIQA International, in combination with the report-ing and documentation processes that are integrated into this dialogue. The plans are formally approved by the Management Board and also include material assumptions regarding the com-bined ratio, investment income, market shares and the like.
Phase 2: perpetuity growth rate
The last year of the detailed planning phase is used as the basis for determining the cash flows in phase 2. The growth in the start-up phase leading up to phase two was determined using a pro-jection of the growth in insurance markets. This start-up phase denotes a period that is required for the insurance market to achieve a penetration rate equal to the Austrian level. It was as-sumed that the insurance markets would come into line with the Austrian level in terms of den-sity and penetration in 40 to 60 years.
The capitalisation rate for all CGUs is listed below:

Cash generating unit | Discount factor | Discount factor perpetuity | Growth rate (perpetuity)
In per cent | Property/ | Life & | Property/ | Life & | Property/casualty
| casualty | health | casualty | health | Life & health
Bosnia and Herzegovina | 15.6 | 16.1 | 12.8 | 13.2 | 6.3
Bulgaria | 8.1 | 8.5 | 9.1 | 9.5 | 5.8
Croatia | 12.1 | 12.6 | 10.3 | 10.7 | 5.3
Liechtenstein | 5.7 | 6.2 | 6.1 | 6.6 | 1.0
Montenegro | 11.2 | 11.6 | 10.3 | 10.7 | 6.0
Austria | 7.7 | 8.2 | 7.7 | 8.2 | 1.0
Poland | 6.8 | 7.3 | 8.7 | 9.2 | 4.9
Romania | 8.4 | 8.8 | 10.1 | 10.6 | 5.8
Russia | 17.5 | 18.0 | 11.6 | 12.1 | 6.6
Switzerland | 5.7 | 6.2 | 6.1 | 6.6 | 1.0
Serbia | 14.9 | 15.3 | 13.0 | 13.5 | 6.3
Albania/Kosovo/Macedonia as |  |  |  |  |
subgroup of the “SIGAL Group” | 11.4 – 14.4 | 11.8 – 14.8 | 10.4 – 12 | 10.8 – 12.5 | 6.2 – 6.7
Slovakia | 8.4 | 8.9 | 8.2 | 8.7 | 4.6
Czech Republic | 7.7 | 8.2 | 8.1 | 8.5 | 4.4
Ukraine | 36.0 | 36.5 | 20.3 | 20.8 | 7.2
Hungary | 10.5 | 11.0 | 10.6 | 11.1 | 5.3

With respect to SIGAL Group and the regions, the cited discount rate intervals refer to the range of relevant countries grouped under it.
Source: Damodaran and derived factors

The following discount rates were applied in 2015:

Cash generating unit | Discount factor | Discount factor perpetuity | Growth rate (perpetuity)
In per cent | Property/ | Life & | Property/ | Life & | Property/casualty
| casualty | health | casualty | health | Life & health
Bosnia and Herzegovina | 17.3 | 17.9 | 13.3 | 14.0 | 7.1
Bulgaria | 10.7 | 11.3 | 9.8 | 10.5 | 6.5
Italy | 10.7 | 11.3 | 10.7 | 11.3 | 1.0
Croatia | 11.3 | 11.9 | 10.5 | 11.2 | 5.6
Liechtenstein | 6.5 | 7.1 | 6.9 | 7.6 | 1.0
Montenegro | 14.6 | 15.3 | 10.6 | 11.3 | 6.5
Austria | 7.8 | 8.5 | 7.8 | 8.5 | 1.0
Poland | 8.2 | 8.8 | 9.5 | 10.1 | 4.7
Romania | 10.3 | 11.0 | 10.8 | 11.5 | 6.2
Russia | 24.3 | 24.9 | 12.3 | 13.0 | 5.5
Switzerland | 6.5 | 7.1 | 6.9 | 7.6 | 1.0
Serbia | 15.9 | 16.5 | 13.7 | 14.3 | 7.2
Albania/Kosovo/Macedonia as |  |  |  |  |
subgroup of the “SIGAL Group” | 12.9 – 16.1 | 13.6 – 16.7 | 11 – 12.7 | 11.7 – 13.3 | 6.8 – 8.1
Slovakia | 9.1 | 9.7 | 8.9 | 9.5 | 4.8
Czech Republic | 9.1 | 9.7 | 8.8 | 9.5 | 4.5
Ukraine | 73.5 | 74.2 | 22.2 | 22.8 | 7.6
Hungary | 11.6 | 12.2 | 11.3 | 12.0 | 5.5

With respect to SIGAL Group and the regions, the cited discount rate intervals refer to the range of relevant countries grouped under it.
Source: Damodaran and derived factors
Uncertainty and sensitivity
Various studies and statistical analyses were used as sources to provide a basis for determining the growth rates in order to consistently and realistically reflect the market situation and macroeconomic development.
The reference sources included the following studies and materials:

• | Internal research

• | Damodaran – country risks, growth rate estimations, multiples

Sensitivity analyses of financial instruments
In order to substantiate the results of the calculation and estimation of the value in use, random sensitivity analyses with regard to the capitalisation rate and the main value drivers are per-formed.
These analyses show that sustained surpluses on the part of the individual CGUs are highly dependent on the actual development of these assumptions within the individual national or regional economies (GDP, insurance density, purchasing power parities), particularly in the CEE markets, as well as the associated implementation of the individual profit goals. These forecasts and the related assessment of how the situation in the markets will develop in the future, under the influence of the continuing financial crisis in individual markets, are the larg-est uncertainties in connection with valuation results.
In the event that the recovery from the economic crisis turns out to be much weaker and slower than assumed in the business plans and fundamental forecasts, and the insurance mar-ket trends differ entirely from the assumptions made in those business plans and forecasts, the individual goodwill amounts may incur impairment losses. Despite slower economic growth, income expectations have not changed significantly compared to previous years.

A sensitivity analysis shows that if there is a rise in interest rates of 50 basis points in the countries of Bosnia and Herzegovina and Montenegro, there could be a convergence between the value in use and the carrying amount or a value in use that is lower than the carrying amount. If there were a stronger rise in interest rates of 100 basis points or more, Romania and Serbia would also be affected. If the underlying cash flows change by –5.0 per cent, there will also be a risk of a convergence or a value in use that is lower than the carrying amount in Bosnia and Herzegovina. This list expands to include Serbia and Montenegro when there is a deviation of more than –10.0 per cent in the cash flows.
During the financial year, the planning assumptions that underlay the impairment test for Croatia have been adjusted due to changes in economic trends. Impairment in the amount of €16.6 million results for CGU Croatia.
The following table shows the recoverable amounts at the time of the impairment test for all CGUs with the necessary goodwill.

|  | Recoverable |
Cash generating unit | Recoverable | amount exceeds | Impairment for the
In € thousand | amount | carrying amount | period
Bulgaria | 139,056 | 64,218 | 0
Poland | 247,500 | 126,320 | 0
Romania | 226,970 | 58,276 | 0

Backtesting
Backtesting is regularly carried out on the planning for the individual countries. The objective is to obtain information for internal purposes on the extent to which the operating units plan their results accurately and on the extent to which details useful with regard to subsequent develop-ment are highlighted. Backtesting is intended to help draw conclusions that can be applied to the latest round of planning, in order to enhance the planning accuracy of forthcoming financial plans.
5.2 Investment property
The fair value of investment property within the scope of the impairment test in accordance with IAS 36, as well as for the disclosures according to IFRS 13, is determined using reports prepared by independent experts. These expert reports are prepared based on earned value and asset value methods. It requires making assumptions, principally concerning the discount rate, the exit yield, the expected utilisation (vacancy rate), the development of future rental charges, and the condition of the land and buildings. For this reason, all measurements of the fair value for the land and buildings come under Level 3 of the hierarchy according to IFRS 13. The nature of the measurement procedures stated above is that they respond sensitively to the underlying assumptions and parameters. For instance, any reduction in the discount rate applied would result in an increase in the values ascertained for the land and buildings if the other assump-tions and parameters remained unchanged. Conversely, any reduction in the expected utilisa-tion or the expected rental charges would, for instance, result in a decrease in the values ascer-

tained for the land and buildings if the other assumptions and parameters remained unchanged. The measurement-related assumptions and parameters are ascertained carefully at each key date based on the best estimate by management and/or the experts in view of the current pre-vailing market conditions.
5.3 Deferred tax assets
As at 31 December 2016 UNIQA had deferred tax assets amounting to €190,278 thousand, of which €9,716 thousand were attributable to tax loss carry-forwards. The deferred tax assets result from tax loss carry-forwards, from impairment in accordance with Section 12 of the Aus-trian Corporation Tax Act, and from deductible temporary differences between the carrying amounts of the assets and liabilities in the consolidated statement of financial position and their tax values. Deferred tax assets are accounted for to the extent that it is likely that there will be adequate taxable profit or deferred tax liabilities for them to be realised in the future.
An assessment of the ability to realise deferred tax assets requires an estimate of the amount of future taxable profits. The amount and type of these taxable earnings, the periods in which they are incurred, and the available tax planning measures are all taken into account. The corre-sponding analyses and forecasts, and ultimately the determination of the future deferred tax assets and liabilities, are carried out by the local tax and finance experts in the relevant coun-tries. Because the effects of the underlying estimates may be significant, there are internal group procedures that guarantee the consistency and reliability of the evaluation process. The resulting forecasts are based on business plans that are prepared, reviewed and approved using a uniform procedure throughout the Company. Especially convincing evidence regarding the value and future chance of realisation of deferred tax assets is required under internal Group policies if the relevant Group company has suffered a loss in the current or a prior period.
5.4 Provisions for defined benefit obligations
For this purpose, reference is made to the statements and sensitivity analyses in the notes to this balance sheet item under note 29.
5.5. Technical provisions
Reference is made here to the statements and sensitivity analyses under note 7.5 and 26.
5.6 Investments
Reference is made here to the statements and sensitivity analyses under notes 7.5 and 13.

5.7 Other discretionary judgements and assumptions regarding the future
As at 31 December 2016, UNIQA held a 14.3 per cent stake in STRABAG SE (31 December 2015: 13.8 per cent). UNIQA is continuing to treat STRABAG SE as an associate due to contractual arrangements. The carrying amount of the investment in STRABAG SE at 31 December 2016 amounted to €475.8 million (31 December 2015: €463.0 million).
On 6 September 2016 Kärntner Ausgleichszahlungs-Fonds (KAF) made an offer according to Section 2 of the Austrian Financial Market Stability Act to the owners of debt instruments of HETA to purchase their senior bonds against cash or tender of zero-coupon bonds, which are guaranteed by the Republic of Austria and fully covered without conditions. KAF also extended an offer to the owners of subordinated debt instruments of HETA to purchase said instruments against cash or tender of zero-coupon bonds or long-term zero-coupon promissory notes issued by the Republic of Austria. UNIQA has decided to exchange the senior bonds in its portfolio with a nominal value of €25 million for zero-coupon bonds and to swap the subordinated bonds with a nominal value of €36 million for zero-coupon promissory notes.

RISK REPORT
6.1 Risk strategy
Principles
We have set ourselves ambitious goals in connection with our corporate strategy UNIQA 2.0. In summary, we are working towards sustainable and profitable growth. We are taking the initia-tive, optimising processes and building on innovations. We are doing this in order to keep the promises we made to our customers, our shareholders and our employees. In addition, we make sure we have a business strategy that knows the right answer to all of our Company's risks. The Group Management Board has therefore adopted a risk strategy borne by four principles:

• | We know our responsibility.

• | We know our risk.

• | We know our capacity to take on risk.

• | We know our opportunities.

With these four principles, we will move confidently into the future and maintain a financial strength that allows us to achieve our corporate goals, keep our promises and fulfil our obliga-tions even in turbulent times.
Organisation
Our core business is to relieve our customers of risk, pool the risk to reduce it and thereby gen-erate profit for our Company. Here, the focus is placed on understanding risks and their particu-lar features.
To ensure that we keep our focus on risk, we have created a separate risk function on the Group's Management Board with a Group Chief Risk Officer (CRO) who is also acting concur-rently as Group Chief Financial Officer (CFO), thus creating the function of the Group Chief Financial and Risk Officer (CFRO). In our regional companies the function of Chief Risk Officer is a part of the Management Board. This ensures that decision-making is risk-based in all rele-vant bodies. We have established processes that allow us to identify, analyse and manage risks. Our business involves a large range of different risk types, so we employ specialists to identify and manage them.
We regularly validate our risk profile at all levels of the hierarchy and hold discussions in specially instituted committees with the members of the Management Board. To obtain a com-plete picture of our risk position, we draw on internal and external sources while also regularly checking for new threats both in the Group and in our subsidiaries.
Risk-bearing capacity and risk appetite
We take risks and do so in full knowledge of our risk-bearing capacity. We define this as our ability to absorb potential losses from extreme events so that our medium and long-term objec-tives are not put in danger.
Our risk decisions centre on our economic capital model (ECM), which we use to quantify risk and determine economic capital. The ECM is based on the standard model according to Solvency II and also reflects our own risk assessment. This is expressed in the quantification of the risks from the non-life sectors, in which we focus on a stochastic cash flow model, additional capital requirements of government bonds and a mark-to-market valuation of asset-backed securities. Based on this model, we are aiming for risk capital cover (capital ratio) of 170 per cent. As long as the capital ratio remains within the range of 155 to 190 per cent no action will be taken, since a certain level of fluctuation is absolutely normal within the framework of the Sol-vency II regulations. However, immediate steps will be taken to improve the capital position if the marginal value falls below 135 per cent.

We also seek external confirmation of the path we have chosen. Standard & Poor's has given us a credit rating of A–. One of our key objectives is to maintain the rating at this level or to im-prove upon it.
Non-quantifiable risks, in particular operational risk, litigation risk and strategic risk are identified as part of the risk assessment process and then assessed using scenario-based tech-niques. This assessment is then used as the basis for implementing any necessary risk mitiga-tion measures.
Our risk strategy specifies the risks we intend to assume and those we plan to avoid. As part of our strategy process, we define our risk appetite on the basis of our risk-bearing capacity. This risk appetite is then used to determine tolerances and limits, which provide us with an early warning system sufficient for us to initiate prompt corrective action should we deviate from our targets. We also consider risks outside our defined appetite. We counter risks that fall into this category, such as reputational risk, with proactive measures, transparency and careful assessment.
We focus on risks that we understand and can actively manage. We divest ourselves of any investments in which the business principles are inconsistent with our core business. We con-sciously take on risk associated with life, health and non-life underwriting in order to consist-ently generate our income from our core business. We aim for a balanced mix of risk to achieve the greatest possible effect from diversification.
We analyse our income and the underlying risk, optimising our portfolio using value-based principles. We therefore strive for a balance between risk and return.
Opportunities
Risk also means opportunity. We regularly analyse trends, risks and phenomena that influence our society and thus our customers and ourselves. We involve our employees in the whole of the business to identify and analyse trends at an early stage, produce suitable action plans and de-velop innovative approaches.
6.2 Risk management system
The focus of risk management with management structures and defined processes is the at-tainment of UNIQA’s and its subsidiaries’ strategic goals.
UNIQA’s Risk Management Guidelines form the basis for a uniform standard at various company levels. The guidelines are approved by the Group CFRO and the full Management Board and describe the minimum requirements in terms of organisational structure and pro-cess structure. They also provide a framework for all risk management processes for the most important classes of risk.
In addition to the Group Risk Management Guidelines, similar guidelines have also been prepared and approved for the Company's subsidiaries. The Risk Management Guidelines at subsidiary level were approved by the Management Board of the UNIQA subsidiaries and are consistent with UNIQA’s Risk Management Guidelines.
They aim to ensure that risks relevant to UNIQA are identified and evaluated in advance. If necessary, proactive measures are introduced to transfer or minimise the risk.

Intensive training on the content and utilisation of these guidelines is required in order to ensure that risk management is incorporated in everyday business activities. Extensive in-formative and training measures have therefore been taken since 2012; they will be continued in the future and extended to additional target groups.
Organisational structure (governance)
The detailed set-up of the process and organisational structure of risk management is set out in UNIQA’s Risk Management Guidelines. They reflect the principles embodied in the concept of “three lines of defence” and the clear differences between the individual lines of defence.
First line of defence: risk management within the business activity
Those responsible for business activities must develop and put into practice an appropriate risk control environment to identify and monitor the risks that arise in connection with the busi-ness and processes.
Second line of defence: supervisory functions including risk management functions
The risk management function and the supervisory functions, such as controlling, must moni-tor business activities without encroaching on operational activities.
Third line of defence: internal and external auditing
This enables an independent review of the formation and effectiveness of the entire internal control system, which comprises risk management and compliance (e.g. internal auditing).
Group Management Board and Group functions
The UNIQA Insurance Group AG Management Board is responsible for establishing the busi-ness policy objectives and determining the associated risk strategy. The core components of the risk management system and the associated governance are enshrined within the UNIQA Group Risk Management Policy adopted by the Management Board.
The function of Chief Financial and Risk Officer (CFRO) is a separate area of responsibility at the Group Management Board level. This ensures that risk management is represented on the Group Management Board. The CFRO is supported in the implementation and fulfilment of risk management duties by the Group Actuarial and Risk Management unit.

A central component of the risk management organisation is UNIQA’s risk management committee, which carries out monitoring and initiates appropriate action in relation to the current development and the short and long-term management of the risk profile. The risk management committee establishes the risk strategy, monitors and controls compliance with risk-bearing capacity and limits, and therefore plays a central role in the management process implemented under UNIQA’s risk management system.
UNIQA insurance company
In the UNIQA insurance companies, the CRO function has also been established at the Man-agement Board level, with the functions of the risk manager at the next level down. A consistent, uniform risk management system has therefore been set up throughout the Group.
As at Group level, each of the UNIQA insurance companies has its own risk management committee, which forms a central element of the risk management organisation. This commit-tee is responsible for the management of the risk profile and the associated specification and monitoring of risk-bearing capacity and limits.
The Supervisory Board at UNIQA Insurance Group AG receives comprehensive risk reports at Supervisory Board meetings.
Risk management process
UNIQA’s risk management process delivers periodic information about the risk profile and enables the top management to make the decisions for the long-term achievement of objectives.
The process concentrates on risks relevant to the Company and is defined for the following classes of risk:

• | Actuarial risk (property and casualty insurance, health and life insurance)

• | Market risk/Asset-Liability Management risk (ALM risk)

• | Credit risk/default risk

• | Liquidity risk

• | Concentration risk

• | Strategic risk

• | Reputational risk

• | Operational risk

• | Contagion risk

• | Emerging risk

A Group-wide, standardised risk management process regularly identifies, evaluates and re-ports on risks to UNIQA and its subsidiaries within these classes of risk.

UNIQA's risk management process
Risk identification
Risk identification is the starting point for the risk management process, systematically record-ing all major risks and describing them in as much detail as possible. In order to conduct as complete a risk identification as possible, different approaches are used in parallel, and all clas-ses of risk, subsidiaries, processes and systems are included.
Evaluation/measurement
The risk categories of market risk, technical risk, counterparty default risk and concentration risk are evaluated at UNIQA by means of a quantitative method based on the standard approach of Solvency II and the ECM approach. Furthermore, risk drivers are identified for the results from the standard approach and analysed to assess whether the risk situation is adequately represented (in accordance with the Company’s Own Risk and Solvency Assessment (ORSA)). All other classes of risk are evaluated quantitatively or qualitatively with their own risk scenarios.
The scenario analysis (of UNIQA’s internal and external economic risk situation) is gener-ally a crucial element in the risk management process.
A scenario is a possible internal or external event that has a short-term or medium-term effect on consolidated profit or loss, the solvency position or sustainability of future results. The scenario is formulated with respect to its inherent characteristic (e.g. the start of Greece’s insol-vency) and evaluated in terms of its financial effect on UNIQA. The likelihood that the scenario will actually occur is also considered.

Limits/early warning indicators
The limit and early warning system determines risk-bearing capacity (available equity accord-ing to IFRS, economic capital) and capital requirements on the basis of the risk situation at ongoing intervals, thereby deriving the level of coverage. If critical coverage thresholds are reached, then a precisely defined process is set in motion, the aim of which is to bring the level of solvency coverage back to a non-critical level.
Reporting
A quarterly report on the solvency situation, together with a monthly risk report on the biggest risks identified, are prepared for each UNIQA insurance company and for the UNIQA Group on the basis of detailed risk analysis and monitoring. The reports for each individual UNIQA sub-sidiary and the UNIQA Group itself have the same structure, providing an overview of major risk indicators such as risk-bearing capacity, solvency requirements and risk profile. In addition, quantitative and qualitative reporting (in the form of the quantitative reporting templates and the narrative report respectively) is implemented for the UNIQA Group and for all subsidiaries for which Solvency II reporting is mandatory.
Activities and objectives in 2016
Based on external and internal developments, activities in 2016 focused on the following:

• | Preparation of the reporting requirements in accordance with Solvency II

• | Merger of the operational UNIQA insurance companies in Austria in the course of the Group mergers

• | Preparation of other new regulatory requirements

With the entry into force of Solvency II, Risk Management has been working on setting up the new reporting required under Pillar III. Part of the reporting requirements from Directive 2009/138/EC of the European Parliament from 25 November 2009 (Solvency II) relates to the Solvency and Financial Condition Report (SFCR), which aims to make an insur-ance company's solvency and financial position transparent for market participants. The report includes quantitative and qualitative information on the company's business activities (eco-nomic framework), the governance system (organisational structure, internal control system, compliance, internal audit and actuarial function), UNIQA’s risk profile, the valuation methods for solvency purposes and on capital management (own funds, solvency capital requirements, etc.) in the company. The aim is to enable the reader of the report to gain a clear picture of the company's financial position based on this comprehensive information.
In addition to the SFCR, the insurance company is also required to provide a fully compre-hensive supervisory report known as the Regular Supervisory Report (RSR). The first time that this Report will be provided to the supervisory authority is for the valuation date of 31 Decem-ber 2016; it differs from the SFCR essentially by the inclusion of details on the results, the busi-ness planning periods and projections, as well as details on the remuneration of members of the Management Board.
The Quantitative Reporting Templates (QRTs) are a further essential part of the reporting: these include purely quantitative statements on an insurance company, and are reported to the supervisory authorities in accordance with the filing rules of the European Insurance and Oc-cupational Pensions Authority (EIOPA). A distinction is made here between quarterly and an-nual reports, which are provided both for individual companies as well as for the Group. UNIQA has invested in technical service programmes to support implementation of proper and timely reporting, and these also meet the corresponding requirements.
One of the substantial risk management topics in 2016 involved activities related to the merger of the UNIQA insurance companies operating in Austria into the company UNIQA Österreich Versicherungen AG (“AT merger”). These activities resulted in the need to implement an ad-hoc Own Risk and Solvency Assessment (“ad-hoc ORSA”). The appropriate-ness of the Solvency II standard formula for the new company was tested in this ad-hoc ORSA, and a review took place on whether all material risks had been captured in the risk management process. Solvency planning was also completed for the planning period, with this planning ex-posed to multiple stress scenarios. The “AT merger” also gave rise to a need to alter the partial internal model for casualty/property insurance, resulting in postponement of the regulatory application process to 2017.

Regulatory challenges
From a regulatory point of view, 2016 was characterised primarily by Solvency II and its entry into force on 1 January 2016. Following wide-ranging points of criticism related to harmonisa-tion, setting of parameters and different national interpretations, the European Commission had already launched the “SII Review Process”, appointing EIOPA to analyse and elaborate on the critical topics as part of this. EIOPA is required to submit “technical advice” to the European Commission by 31 October 2017. There is explicit emphasis on the calibration of natural catas-trophe cover, the flat-rate real estate shock and the reduced reporting timelines. EIOPA itself plans to reinforce its efforts over the next three years to harmonise the implementation of su-pervisory law throughout Europe, additional improvements to product-related consumer pro-tection and safeguarding the financial stability of insurance (see Strategic Work Plan 2017– 2019).
There is a focus currently on issues surrounding the Insurance Distribution Directive (IDD) and the Regulation on insurance-based investment products (PRIIPs Regulation) with refer-ence to promoting the Digital Single Market and developing the consumer protection provisions related to financial services for private customers. The IDD officially came into force at the start of the year and now has to be implemented in national law by 22 February 2018. For the imple-mentation process, further essential details will be defined at level 2 by delegated acts related to product monitoring and inspection, conflicts of interest, incentives and an assessment of suita-bility and fitness for purpose along with reporting obligations to customers. EIOPA has launched a comprehensive consultation process in connection with this and also initiated the consultation on technical standards for a mandatory product information document (PID) for non-life products.
As of 31 December 2016 the PRIIPs Regulation requires insurance companies to create a pre-contractual information document (the Key Information Document – KID). At the present time this covers all life insurance products that have a maturity or surrender value. In terms of the format for the KID, Regulatory Technical Standards (RTS) have been developed at level 2 by the ESA (collaboration between the three European supervisory authorities EIOPA, EBA and ESMA), and these were accepted by the European Commission on 30 June 2016. The RTS were subject to massive criticism from the insurance industry as a result of errors and the short dead-line for implementation, and were rejected by the European Parliament on 14 September 2016. A postponement term of twelve months, which had already been publicised beforehand, was agreed by the College of Commissioners on 9 December 2016.

At the European level, EIOPA is currently considering plans to subject the UFR (Ultimate For-ward Rate) to an annual recalculation. The current fixed value of 4.2 per cent was determined in 2010 within the scope of Omnibus II, and EIOPA no longer believes that this is appropriate for current conditions. EIOPA is proposing a change to the calculation methodology and a gradual reduction (max. 20 basis points) in annual steps. This procedure is now being increasingly ques-tioned by the European insurance industry, primarily based on legal conditions. A decision is expected in March 2017.
6.3 Challenges and priorities in risk management for 2017
Challenges
Low interest rate environment
The period of low interest rates continued also throughout 2016, with rates falling to historically low levels in some cases. This situation has a particularly marked effect in life insurance. De-pending on the investment strategy, the persistently low interest rates can lead to a situation in which the income generated is insufficient to finance the guarantees made to policyholders. The topic of low interest rates continues to be of concern to the entire European insurance industry and is leading to intensive discussions about how insurance companies can ensure that custom-er options and guarantees (in both existing and new business) are financed over the long term. Significant measures taken by UNIQA within the defined life strategy have been to focus on implementing the ALM approach including stringent management rules (e.g. regarding the management of profit participation) and to provide continuous portfolio management to sup-port the new business strategy in the personal injury insurance business.
Supplementary reserves to meet long-term liabilities
One specific issue is the requirements (which vary from country to country) to establish sup-plementary discount rate provisions, as determined by the relevant local financial accounting regulations in case of a low interest rate environment. As at 31 December 2016, UNIQA had set aside a special provision in the amount of €100.2 million (a €32.6 million addition) in its Austri-an companies, as there is a statutory requirement in Austrian accounting regulations to make this special provision. This special provision in the local accounting is to be seen alongside the liability adequacy test (LAT) to check whether the provisions in the IFRS financial statements are adequate. Depending on the interest rate situation and the resulting planning of investment income, there is the fundamental risk in the future of a potential provision requirement as a consequence of the LAT. Following positive development of the underwriting performance in 2015 in the property and casualty area, revenue continued to stabilise in 2016.

This development was also supported by competitors exiting or withdrawing from the market, with an associated easing of competition in individual markets. Despite this positive develop-ment it is expected that price competition will persist in the coming years, particularly in the Central European markets. As a result of various group initiatives the premium revenue in the property and casualty segment is expected to continue to rise. The settlement result also made a positive contribution to earnings in 2016. The risk of potential settlement losses should contin-ue to fall steadily in future as a result of further efforts in the area of claim reserves, along with a gradual expansion in reserve monitoring.
Investment programme
Modernisation of the IT landscape
One of the most important and key projects is the modernisation of the UNIQA Group’s entire IT management and benefit systems. The portfolio management and benefit systems currently in use have largely reached the end of their useful lives. UNIQA is therefore planning a full mod-ernisation of its IT systems. The actual preparations for this began in 2016 and the start date for implementation is scheduled for the first quarter of 2017. This programme involves modernisa-tion of the most important insurance software and thereby allows the company to respond to the constantly changing competitive environment and meet customer needs and effectively manage the products in the modern insurance market. IT modernisation will therefore be the UNIQA Group’s greatest challenge for the next few years in terms of scope, duration and com-plexity. The level of investment required (including for migration of the existing systems) in UNIQA’s six largest markets is estimated to be in the range of €350–450 million (over a period of ten years). Expenditure of €115 million was budgeted in the financial planning for 2016–2020. The risks and difficulties of remaining on budget are well-known from knowledge of other sys-tem modernisations carried out in the industry. In addition to a best estimate the Group Man-agement Board also exposed the business case to two scenarios diverging from this. Further analyses took place as part of the ORSA.
Digitalisation
UNIQA is currently working on implementation of a target operating model for Austria, to ena-ble the IT modernisation project to be implemented successfully. Processes for handling of business transactions have been influenced by mergers and takeovers since 1999, resulting in a highly complex process landscape with lots of dependencies. The project for implementation of a target operating model transforms the handling of business transactions to a two-stage logic: Level 1 cases will be only processed either automatically or by a service company in Nitra, Slo-vakia. Level 2 cases will be processed in central units under the responsibility of the Board members in charge of life and/or property and casualty business. The material risk in this pro-ject involves maintaining stable business operations.

Modernisation of processes is essential if UNIQA is to remain innovative and able to respond to the wishes and needs of customers and owners. This necessarily also involves the world of digi-talisation towards which we are making great strides. There is increasing focus on issues sur-rounding cybercrime, phishing attacks and data theft. UNIQA has already taken precautions to cover the risk of data security. Continuous ongoing development of the security measures is, however, essential and is supported accordingly by the Group Management Board (“tone from the top”).
Operational risk
UNIQA counters operational risks, such as may arise through failures in internal processes or unsatisfactory conduct on the part of employees or through other system-related external inci-dents, using an internal control system (ICS). Essential processes – from a regulatory and cor-porate point of view – are mapped in the ICS and matched with appropriate monitoring controls and measures, in order to minimise or exclude potential risks.
Priorities
UNIQA is paying greater attention to further development of future IFRSs (IFRS 17 and IFRS 9). The major changes expected in the assessment (balance sheet as well as income statement) of the insurance business require an adequate lead time in order for the content and process-related challenges to be implemented accordingly. Despite UNIQA’s good preparations within the scope of Solvency II, we still expect that significant additional effort will be required in order to be able to meet the upcoming IFRS requirements. To this end the results of the initial studies and workshops in 2016 will be tracked for the next few years, using a further develop-ment plan which evolved from these.
The Group Management Board also decided to sell the 99.7 per cent holding in the Group company UNIQA Assicurazioni S.p.A. (Milan, Italy) in a resolution dated 2 December 2016 following approval by the Supervisory Board. The sale price is around €295 million. The sale includes UNIQA Assicurazioni S.p.A. (Milan, Italy) and its subsidiaries operating in Italy UNIQA Previdenza S.p.A. (Milan, Italy) and UNIQA Life S.p.A. (Milan, Italy). The sale of the Italian companies is classified as a discontinued business line. The assets and liabilities associ-ated with the discontinued business line are stated in the Consolidated statement of financial position under the assets and liabilities in disposal groups held for sale. The profit and loss of the discontinued business line is presented in the Consolidated Income Statement under the item “Profit/(loss) from discontinued operations (after tax)”. The closing of the sale is expected in the first half of 2017 once all necessary official approvals have been obtained. The transaction has a significant effect on UNIQA’s economic equity ratio in particular. The reduction in the capital-intensive life insurance business in Italy is having a prolonged positive effect in particu-lar against the background of sustained low interest rates. As already mentioned under activities for 2016, the merger of the UNIQA insurance companies operating in Austria had resulted in postponement of the approval application for the partial internal model for property and casu-alty insurance to 2017. High priority is accordingly being assigned to the approval procedure for the partial internal model and the necessary resources associated with this, so that the model can be used to assess the regulatory solvency position for the 2017 year end.
As of today UNIQA does not see any direct risk which could represent a risk to the Group’s continued existence.

6.4 Capitalisation
As Solvency II came into force on 1 January 2016, the definitions and methods used to calculate available own funds, as well as capital requirements and management standards, have been replaced by Solvency II standards.
Statutory requirements
Risk capital requirements and available own funds have been calculated according to Solven-cy II regulations since 1 January 2016. In order to guarantee a smooth transition from the Sol-vency I regulations previously in place, UNIQA has been completing parallel calculations since 2008. One consequence of these efforts is an early Group-wide introduction of the new methods and processes, which is why any loopholes and shortcomings have been identified at an early stage and could be rectified in good time. Initial implementation of the new methods required under Solvency II were covered by the Day 1 Report, which – in accordance with the require-ments under Section 375 of the Delegated Regulation (EU) 2015/35 of the Commission from October 2014 – required qualitative and quantitative information on the opening valuations of the assets and liabilities, minimum and solvency capital requirements and the eligible own funds, as at 1 January 2016. Further reporting under Pillar III is addressed by the Solvency and Financial Condition Report as well as by the Regular Supervisory Report, as required under Section 241 et seq. of the Insurance Supervisory Act 2016.
Internal capital adequacy
UNIQA defines its risk appetite on the basis of an economic capital model (ECM). The cover for quantifiable risks by means of eligible own funds (capital ratio) should be between 155 per cent and 190 per cent, according to risk preferences, with a target value set at 170 per cent.
Details for the reporting date of 31 December 2016, including a detailed analysis of changes, can be found in the ECM report.
Standard and Poor’s model
In addition to regulatory and internal provisions, the Group also takes into account the capital requirements specified by an external rating agency to ensure that the Group’s credit quality is presented objectively and can be compared with other entities. Therefore, UNIQA is regularly rated by the rating agency Standard &Poor’s, which gives UNIQA Insurance Group AG a rating of “A–”. UNIQA Österreich Versicherungen AG and UNIQA Re AG each have a rating of “A”; UNIQA Versicherung AG in Liechtenstein is rated with “A–”. The supplementary capital bonds issued in 2013 (€350.0 million Tier 2, first call date 31 July 2023) and 2015 (€500.0 million Ti-er 2, first call date 27 July 2026) are rated “BBB” by Standard & Poor’s. The agency rates the outlook for all the companies as stable. UNIQA includes the impact on its rating in its capital planning process, with the objective of improving the rating over the long term as the corporate strategy is implemented.

6.5 Risk profile
UNIQA’s risk profile is very heavily influenced by life insurance and health insurance portfolios in UNIQA Österreich Versicherungen AG. This situation means that market risk plays a central role in UNIQA’s risk profile. The composition of market risk is described in the section “Market risk”.
The subsidiaries in Central Europe (CE: Hungary, Czech Republic, Slovakia and Poland) op-erate insurance business in the property and casualty segment and in the life and health insur-ance segment.
In the regions of Southeastern (SEE) and Eastern Europe (EE), insurance business is cur-rently conducted primarily in the property and casualty segment, in particular in the motor vehicle insurance segment.
This structure is important to UNIQA, because it creates a high level of diversification from the life and health insurance lines dominated by the Austrian companies.
The distinctive risk features of the regions are also reflected in the risk profiles determined by using the internal measurement approach.
After every calculation for the life, non-life and composite insurers at UNIQA, benchmark profiles are created and compared with the risk profile for each company. The benchmark pro-files show that, for composite insurers, there is a balance between market and actuarial risk. Composite insurers are also in a position to achieve the highest diversification effect.
Market and credit risks
Market and credit risks have different weightings and various degrees of seriousness, depending on the investment structure. The table below shows investments classified by asset category.

Asset Allocation | 31/12/2016 | 31/12/2015
In € thousand |  |
Fixed-income securities | 16,693,001 | 19,557,462
Equities | 438,324 | 374,323
Alternative Investments | 32,732 | 38,263
Equity investments | 770,989 | 813,192
Loans | 40,033 | 59,136
Real estate | 1,554,036 | 1,623,425
Liquid funds | 1,129,886 | 1,829,284
Total | 20,659,000 | 24,295,085

The effects of the market and credit risks on the value of investments also influence the level of actuarial liabilities. Thus, there is – particularly in life insurance – a dependence between the growth of assets and liabilities from insurance contracts. UNIQA monitors the income expecta-tions and risks of assets and liabilities arising from insurance contracts as part of the asset lia-bility management (ALM) process. The objective is to achieve a return on capital that is sustain-ably higher than the technical liabilities carried forward while retaining the greatest possible security. To do this, assets and liabilities are allocated to different accounting groups.
The following two tables show the main accounting groups generated by the various product categories.

Assets | 31/12/2016 | 31/12/2015
In € thousand |  |
Long-term life insurance contracts with guaranteed interest and profit participation | 12,664,450 | 16,411,343
Long-term unit-linked and index-linked life insurance contracts | 4,879,928 | 5,226,748
Long-term health insurance contracts | 3,352,381 | 3,174,365
Short-term property and casualty insurance contracts | 4,755,872 | 4,825,969
Total | 25,652,631 | 29,638,424

These values refer to the following statement of financial position items:

• | Property, plant and equipment

• | Investment property

• | Equity investments accounted for using the equity method

• | Investments

• | Unit-linked and index-linked life insurance investments

• | Current bank balances and cash-in-hand

Technical provisions and liabilities (net) | 31/12/2016 | 31/12/2015
In € thousand |  |
Long-term life insurance contracts with guaranteed interest and profit participation | 11,836,846 | 15,479,470
Long-term unit-linked and index-linked life insurance contracts | 4,846,591 | 5,175,437
Long-term health insurance contracts | 2,880,768 | 2,779,801
Short-term property and casualty insurance contracts | 2,708,379 | 2,869,625
Total | 22,272,584 | 26,304,334

These values refer to the following statement of financial position items:

• | Technical provisions

• | Technical provisions for unit-linked and index-linked life insurance

• | Reinsurance liabilities (only securities account liabilities from reinsurance ceded)

• | Reinsurers’ share of technical provisions

• | Reinsurers’ share of technical provisions for unit-linked and index-linked life insurance

Interest rate risk
Interest rate risk arises on all statement of financial position asset and liability items the value of which fluctuates as a result of changes in risk-free yield curves or associated volatility. Given the investment structure and the high proportion of interest-bearing securities in the asset allocation, interest rate risk forms an important part of market risk. However, a structural re-duction to the interest rate risk has been achieved in recent years as a result of the ALM-based investment strategy implemented in 2012.
The following table shows the maturity structure of interest-bearing securities and bonds re-classified as loans. The actual interest rate is calculated using the weighted average returns and in terms of the purchase price is an average of 2.13 per cent with fixed-income securities.

Exposure by term | 31/12/2016 | 31/12/2015
In € thousand |  |
Up to 1 year | 1,370,025 | 1,095,058
More than 1 year up to 3 years | 2,120,877 | 3,282,360
More than 3 years up to 5 years | 2,372,347 | 2,845,054
More than 5 years up to 7 years | 2,553,898 | 3,472,911
More than 7 years up to 10 years | 2,420,522 | 2,954,254
More than 10 years up to 15 years | 2,232,827 | 2,436,602
More than 15 years | 3,459,282 | 3,273,532
Total | 16,529,778 | 19,359,770

In comparison with this, the next table shows the insurance provision before reinsurance in health and life insurance and the gross provision for unsettled insurance claims in non-life insurance, broken down into annual brackets. In health and life insurance the breakdown takes place using expected cash flows from the ALM process.

IFRS reserve by expected maturity date | 31/12/2016 | 31/12/2015
In € thousand |  |
Up to 1 year | 1,334,940 | 1,276,255
More than 1 year up to 3 years | 2,311,871 | 3,071,023
More than 3 years up to 5 years | 1,434,894 | 1,914,474
More than 5 years up to 7 years | 1,177,977 | 1,414,351
More than 7 years up to 10 years | 1,797,645 | 2,039,901
More than 10 years up to 15 years | 2,307,471 | 2,780,886
More than 15 years | 5,357,720 | 6,497,525
Total | 15,722,518 | 18,994,414

Due to the particular importance of the ALM process in life insurance, the focus will be placed on this segment. For practical reasons, it is not possible to fully achieve the objective of match-ing cash flows for assets and liabilities. The duration of the assets in life insurance is 8.1 years, while for liabilities it is longer. This is referred to as a duration gap. It gives rise to an interest rate risk which in the Solvency II risk capital calculation must be backed by capital. The dis-count rate that may be used in the costing when new business is written is based in most UNIQA companies on a maximum discount rate imposed by the relevant local supervisory authority. In all those countries in which the maximum permissible discount rate is not imposed in this way, appropriate prudent, market-based assumptions are made by the actuaries responsible for the calculation. In our core market of Austria, the maximum interest rate from 1 January 2017 is 0.5 per cent per year. However, the portfolio also includes older contracts with different dis-count rates. In the relevant markets of the UNIQA Group, these rates amount to as much as 4.0 per cent per year.

The following table provides an indication of the average discount rates for each region.

Average technical discount rates, core business by region and currency | EUR | USD | Local
|  |  |  | currency
In per cent |  |  |
Austria (AT) | 2.5 | - | -
Central Europe (CE) | 3.5 | - | 3.3
Eastern Europe (EE) | 3.6 | 4.0 | 3.4
Southeastern Europe (SEE) | 2.8 | 2.4 | 1.7
Russia (RU) | 3.0 | 3.0 | 4.0
Definition of regions: |  |  |
AT – | Austria |  |  |
CE – | Poland, Hungary, Czech Republic, Slovakia |  |  |
EE – | Romania, Ukraine |  |  |

SEE – Bulgaria, Serbia, Bosnia and Herzegovina, Croatia, Albania, Montenegro, Kosovo, Macedonia
RU – Russia
As these discount rates are guaranteed by the insurance company, the financial risk lies in not being able to generate these returns. Because classic life insurance business predominantly invests in interest-bearing securities (bonds, loans, etc.), the unpredictability of long-term interest rate trends is the most significant financial risk for a life insurance company. Invest-ment and reinvestment risk arises from the fact that premiums received in the future must be invested to achieve the rate of return guaranteed when a policy is written. However, it is entirely possible that no appropriate securities will be available at the time the premium is received. In the same way, future income must be reinvested to achieve a return equivalent to at least the original discount rate. For this reason, UNIQA has already decided to offer products to its key markets that are only based on a low or zero discount rate.
Spread risk
Since the interest rate risk has been reduced significantly through the ALM process, the spread risk, also stemming predominantly from interest-bearing securities, represents the biggest market risk in terms of the standard approach under Solvency II. Spread risk refers to the risk of changes in the price of asset or liability items in the financial statement, as a consequence of changes in credit risk premiums or associated volatility, and under Solvency II is ascertained for individual securities in accordance with their rating and duration. When investing in securities, UNIQA chooses securities with a wide variety of ratings, taking into consideration the potential risks and returns.
The following table shows the credit quality of those interest rate-sensitive securities that are neither overdue nor written down, based on their ratings.

Exposure by rating | 31/12/2016 | 31/12/2015
In € thousand |  |
AAA | 3,227,227 | 4,801,934
AA | 5,335,448 | 4,190,494
A | 3,763,978 | 3,816,635
BBB | 2,351,805 | 4,186,371
BB | 1,151,994 | 1,219,575
B | 124,947 | 687,580
<=CCC | 29,206 | 102,039
Not rated | 545,173 | 355,142
Total | 16,529,778 | 19,359,770

Equity risk
Equity risk arises from movements in the value of equities and similar investments as a result of fluctuations in international stock markets and therefore stems in particular from the asset categories of shares and investments. The effective equity weighting is controlled by hedging with the selective use of derivative financial instruments.
UNIQA’s equity risk from investments in shares and equity as at the reporting date has been reduced as part of the process in recent years to implement an ALM-based investment strategy, and now only plays a subordinate role in the composition of the ECR market risk.
Currency risk
Currency risk is caused by fluctuations in exchange rates and associated volatility. Given the international nature of the insurance business, UNIQA invests in securities denominated in different currencies, thus following the principle of ensuring matching liabilities with assets in the same currency to cover liabilities at the coverage fund or company level. Despite the selec-tive use of derivative financial instruments for hedging purposes, it is not always possible on cost grounds or from an investment point of view to achieve complete and targeted currency matching between the assets and liabilities. As in the previous year, the greatest component of this risk arises from investments in US dollars. The following table shows a breakdown of assets and liabilities by currency.

Currency risk |  | 31/12/2016
In € thousand | Assets | Provisions and liabilities
EUR | 29,645,082 | 27,759,009
USD | 738,810 | 81,978
CZK | 525,420 | 443,214
HUF | 450,209 | 542,874
PLN | 944,326 | 832,182
RON | 282,564 | 209,137
Other | 1,052,749 | 558,000
Total | 33,639,160 | 30,426,394

Currency risk |  | 31/12/2015
In € thousand | Assets | Provisions and liabilities
EUR | 29,375,071 | 27,558,588
USD | 807,472 | 48,595
CZK | 523,651 | 436,469
HUF | 428,907 | 523,297
PLN | 927,607 | 816,640
RON | 258,289 | 189,655
Other | 976,877 | 558,261
Total | 33,297,873 | 30,131,504

Liquidity risk
Ongoing liquidity planning takes place in order to ensure that UNIQA is able to meet its pay-ment obligations over the next twelve months. A minimum amount of cash reserves which must be available daily is also defined at Group Management Board level for the individual companies according to their business model.
Investments are aimed at maximum possible (even if not complete) matching of maturities as part of the ALM process, to ensure coverage for liabilities with maturities exceeding twelve months. Aside from this, a majority of the securities portfolio is listed in liquid markets and can be sold quickly and without significant markdowns if cash is required.
Regarding private equity investments, there are still remaining payment obligations in the amount of €1.2 million.
Specific events in 2016
The ongoing political uncertainty in Ukraine as a result of the armed conflict since 2014 in the east of the country, between separatists aligned with Russia and Ukraine’s central government, continues to constrain the country’s economic performance. According to the International Monetary Fund, which is providing 17.5 billion dollars in support to the country as part of a programme agreed in 2014, additional measures, to combat rampant corruption and implement economic structural reforms, are needed for the country’s continued economic development. Timely servicing of government debt is not necessarily guaranteed, despite international sup-port, given that implementation of these required measures is being met with resistance in some cases. In 2015 the debt owed to international creditors holding Ukrainian government bonds was reduced by 20 per cent haircut.
As at 31 December 2016, the UNIQA Group’s portfolio of Ukrainian government bonds came to a nominal value of €34.2 million and a fair value of €30.1 million. Of these, a nominal value of €31.2 million are invested in the Ukrainian subsidiary.
The Ukrainian currency, the hryvnia (UAH), weakened by approximately 7.8 per cent against the euro during the course of 2016 (exchange rate as at 31 December 2016: 0.0353). The total value of all the UAH securities in the UNIQA Group amounts to a fair value of €11.7 million.
The EU sanctions imposed on Russia on account of the Ukrainian conflict, along with the low price of crude oil, had a severely negative impact on economic development for 2015 and 2016. Expectations of a return to economic growth in 2017 (as estimated by the International Monetary Fund) did, however, result in a recovery in the exchange rate for the rouble against the euro from 0.0124 (31 December 2015) to 0.0156 (31 December 2016). The fall in the interest rate level, which accompanied the rise in the

exchange rate, increased the value of securities quoted in roubles, with the market value for these amounting to €116.1 million as at the reporting date,
of which €101.4 million is invested in the Russian subsidiary’s investment portfolio. The nomi-nal value of Russian government bonds in the UNIQA Group’s portfolio (not only those quoted in roubles) amounts to €131.2 million (of which €112.0 million is held by the Russian subsidiary), with a fair value of €128.8 million.
UNIQA strives to keep investment concentrations in securities from individual issuers or groups of issuers as low as possible depending on their credit rating.
The United Kingdom’s exit from the EU as decided in the referendum on 23 June 2016 (Brexit) provoked strong immediate reactions on the financial markets, influenced by risk aver-sion, and these also have a negative impact on the UNIQA Group’s economic balance sheet (un-der Solvency II). Due to the relatively prompt correction in the financial markets however, the consequences of this decision for the UNIQA Group are limited to the impact – estimated to be minor – on the long-term economic development of UNIQA’s core markets of Austria, Central, Eastern and Southeastern Europe, and on investments held in the British pound, which has suffered a sustained loss in value as a result of Brexit. The market value of investments quoted in British pounds as at 31 December 2016 was €1.7 million (nominal value of €1.7 million).
Sensitivities
Market and credit risk
Stress tests and sensitivity analyses are used in particular to measure and manage the market and credit risk, in addition to figures from the established market and credit risk models (MCEV, SCR, ECR, etc.).
The following tables show the most important market risks in the form of key sensitivity fig-ures, along with their impact on the net profit and equity. These key figures represent a snap-shot on the reporting date and are only intended as an indication of future changes in fair value. Depending on the measurement principle to be applied, any future losses from the valuation at fair value may result in different fluctuations in the net profit for the year or in other compre-hensive income. The key figures are calculated theoretically on the basis of actuarial principles and do not take into consideration any diversification effects between the individual market risks or countermeasures taken in the various market scenarios.
The sensitivities are determined by simulating each scenario for each individual item, with all other parameters remaining constant in each case.

Sensitivities |  |  |  |
Interest rate risk |  |  |  |
| 31/12/2016 |  | 31/12/2015
In € thousand | +100 basis |  | – 100 basis | +100 basis |  | – 100 basis
| points |  | points | points |  | points
Government bonds | – 755,100 |  | 641,797 | – 828,880 |  | 754,498
Corporate bonds (incl. covered) | – 333,366 |  | 181,071 | – 314,099 |  | 198,892
Other | – 28,373 |  | 8,757 | – 7,595 |  | 2,819
Total | – 1,116,839 |  | 831,625 | – 1,150,574 |  | 956,209
Spread risk |  | 31/12/2016 |  | 31/12/2015
In € thousand |  | + |  | +
Total |  | – 1,133,350 |  | – 1,271,145
Equity risk |  | 31/12/2016 |  | 31/12/2015
In € thousand | 30 | % | – 30% | 30 | % | – 30%
Total | 220,730 |  | – 173,966 | 419,822 |  | – 234,195
Currency risk |  | 31/12/2016 |  | 31/12/2015
In € thousand | 10 | % | – 10% | 10 | % | – 10%
USD | 50,257 |  | – 50,261 | 47,582 |  | – 42,443
HUF | 22,718 |  | – 22,718 | 21,702 |  | – 21,702
RON | 17,868 |  | – 17,868 | 15,257 |  | – 15,257
CZK | 34,196 |  | – 34,196 | 35,668 |  | – 35,668
PLN | 43,386 |  | – 43,386 | 42,658 |  | – 42,658
Other | 54,219 |  | – 53,228 | 50,161 |  | – 49,057
Total | 222,645 |  | – 221,659 | 213,027 |  | – 206,784

2016 | Interest rate shock | Interest rate shock | Spread shock | Equity shock | Equity shock | Currency shock 1 | Currency shock 1
In € thousand | (+100 bp) | (–100 bp) | (+100 bp) | #VALUE! | (–30%) | #VALUE! | (–10%)
Income |  |  |  |  |  |  |
statement | – 11,262 | – 7,036 | – 9,918 | 35,475 | – 29,443 | 184,378 | – 183,309
Equity | – 1,091,855 | 827,829 | – 1,105,996 | 185,254 | – 144,522 | 14,671 | – 14,671
Total | – 1,103,117 | 820,793 | – 1,115,914 | 220,730 | – 173,966 | 199,049 | – 197,980

• | Changes in market value without accounting impact included risk reclassified bonds in the case of interest rate and spread risk and real estate in the case of currency risk.

2015 | Interest rate shock | Interest rate shock | Spread shock | Equity shock | Equity shock | Currency shock 2 | Currency shock 2
In € thousand | (+100 bp) | (–100 bp) | (+100 bp) | #VALUE! | (–30%) | #VALUE! | (–10%)
Income |  |  |  |  |  |  |
statement | 608 | 3,446 | – 13,865 | 211,893 | – 83,817 | 181,010 | – 174,766
Equity | – 1,137,239 | 942,548 | – 1,235,681 | 207,929 | – 150,378 | 8,855 | – 8,855
Total | – 1,136,631 | 945,994 | – 1,249,545 | 419,822 | – 234,195 | 189,865 | – 183,622

• | Currency shock from land and buildings amounting to €23.2 million (+10%) and €–23,2 million (–10%) will not be incurred either on the income statement or in equity because real estate is recognised at book value, the carrying amount and shocks on a fair value basis.

Life insurance
In life insurance the interest rate assumptions are the crucial influencing factor on the liability adequacy test and the deferred acquisition costs. The impact of the implied new funds assump-tion (including reinvestment) is therefore stated below.
If new funds are assumed with a +100 bp increase, then the resulting net effect (after ac-counting for the deferred profit participation) amounts to €+9 million. A –100 bp reduction in this assumption results in net effect of €–10 million. The effects described relate to the changes in the deferred acquisition costs along with the impact on the liability adequacy test. The results were determined using the traditional business in Austria which makes up the majority of the insurance provision in the Group.
Non-life insurance
The provision for unsettled insurance claims is formed based on reported claims and applying accepted statistical methods. One crucial assumption here is that the pattern of claims observed from the past can be sensibly extrapolated for the future. Additional adjustments need to be made in cases where this assumption is not possible.
The calculation of the claim provisions is associated with uncertainty based on the time re-quired to process claims. In addition to the normal chance risk, there are also other factors that may influence the future processing of the claims that have already occurred. The reserving process for court damages in property/casualty insurance should be mentioned here in particu-lar. A reserve estimate is prepared here for these damages based on expert assessment, although this estimate can be exposed to high levels of volatility specifically with major damage at the start of the process for collecting court costs.
The partial model in property and casualty insurance is a suitable instrument for quantify-ing the volatility involved in processing. Following analysis of these model results and after consulting experts it was determined that a deviation of 5 per cent from the basic provision determined may represent a realistic scenario. On basis of the current provision for unsettled claims of €2,202 million (excluding additional provisions such as provisions for claims settle-ment) in the Group on gross basis, this would mean an increase in claims incurred by €110.1 million.
Health insurance
Health insurance operated on the similar to life technique is now also affected by the period of low interest rates, as the tariffs that are currently covered primarily result in actuarial discount rates of 3 per cent, but also in some cases of 2.5 per cent and even of 1.75 per cent. Since the average discount rate is still relatively high, the capital earnings may not be enough for the re-quired addition to the coverage capital. A reduction in the capital earnings by 100 bp (based on investment results 2016) would reduce the profit from ordinary activities by €30 million.

Actuarial risks
Non-life
The actuarial risk in the non-life segment is broken down into the three risk categories of pre-mium, reserve and catastrophe risk.
Premium risk is defined as the risk that future benefits and expenses in connection with in-surance operations will exceed the premiums collected for the insurance concerned. Such a loss may also be caused in insurance operations by exceptionally significant, but rare loss events, known as major claims or shock losses. Appropriate distribution assumptions are made to en-sure that these events are also adequately incorporated into risk modelling.
Natural disasters represent a further threat from events that are infrequent but that never-theless cause substantial losses. This risk includes financial losses caused by natural hazards, such as floods, storms, hail or earthquakes. In contrast to major individual claims, insurance companies in this case refer to cumulative losses.
Reserve risk refers to the risk that technical provisions recognised for claims that have al-ready occurred will turn out to be inadequate. The loss in this case is referred to as run-off loss. The claims reserve is calculated using actuarial methods. External factors, such as changes in the amount or frequency of claims, legal decisions, repair and/or handling costs, can lead to differences compared with estimates.
To counter and actively manage these risks, UNIQA runs a number of processes integrated into its insurance operations. For example, Group guidelines specify that new products may only be launched if they satisfy certain profitability criteria. Major claims and losses from natu-ral disasters are appropriately managed by means of special risk management in the underwrit-ing process (primarily in corporate activities) and by the provision of suitable reinsurance ca-pacity.
In connection with claim reserves, guidelines also specify the procedures to be followed by local units when recognising such reserves in accordance with IFRS. A quarterly monitoring system and an internal validation process safeguard the quality of the reserves recognised in the whole of the Group.
An essential element in risk assessment and further risk management is the use of the non-life partial model. This risk model uses stochastic simulations to quantify the risk capital re-quirement for each risk class at both Company and Group levels. The model also produces fur-ther key figures that are then used as part of the risk- and value-based management of the in-surance business.
Life
The risk of an individual insurance contract lies in the occurrence of the insured event. The occurrence is considered random and therefore unpredictable. Various risks exist in life insur-ance, particularly in classic life insurance. The insurance company takes on this risk for a corre-sponding premium. When calculating the premium, the actuary refers to the following carefully selected calculation principles:

• | Interest: the discount rate is set so low that it can be produced as expected in each year.

• | Mortality: the probabilities of dying are deliberately and carefully calculated for each type of insurance.

• | Costs: these are calculated in such a way that the costs incurred by the policy can be perma-nently covered by the premium.

Carefully selecting the calculation principles gives rise to well-planned profits, an appropriate amount of which is credited to the policyholders as part of profit participation.
The calculation of the premium is also based on the acceptance of a large, homogenous in-ventory of independent risks, so that the randomness inherent in an individual insurance policy is balanced out by the law of large numbers.
The following risks exist for a life insurance company:

• | The calculation bases prove to be insufficient despite careful selection.

• | Random fluctuations prove disadvantageous for the insurer.

• | Policyholders exercise certain implicit options to their advantage.

The risks of the insurer can be roughly divided into actuarial and financial risks.

Long-term life insurance contracts with guaranteed interest and profit participation | 31/12/2016 | 31/12/2015
In € thousand |  |
Austria (AT) | 10,802,566 | 11,337,854
Western Europe (WE) | – 541 | 3,203,305
Central Europe (CE) | 340,922 | 330,588
Eastern Europe (EE) | 31,117 | 26,802
Southeastern Europe (SEE) | 501,436 | 492,995
Russia (RU) | 167,031 | 111,734
Total | 11,842,533 | 15,503,278
Long-term unit-linked and index-linked life insurance contracts | 31/12/2016 | 31/12/2015
In € thousand |  |
Austria (AT) | 4,377,911 | 4,310,278
Western Europe (WE) | 0 | 0
Central Europe (CE) | 464,667 | 425,652
Eastern Europe (EE) | 0 | 0
Southeastern Europe (SEE) | 4,012 | 2,806
Russia (RU) | 0 | 0
Total | 4,846,591 | 4,738,736

UNIQA’s portfolio consists primarily of long-term insurance contracts. Short-term assurances payable at death play a minor role.
The table below shows the distribution of the premium portfolio by type and region.

Premium portfolio in % | Endowment assurance | Life insurance | Pension insurance
|  | 2016 | 2015 | 2016 | 2015 | 2016 | 2015
Austria (AT) | 43.7 | 46.5 | 9.4 | 9.0 | 19.6 | 15.1
Central Europe (CE) | 16.8 | 17.6 | 2.5 | 2.6 | 0.2 | 0.2
Eastern Europe (EE) | 46.8 | 54.3 | 4.7 | 5.5 | 0.0 | 0.0
Southeastern Europe (SEE) | 80.2 | 82.2 | 7.0 | 5.2 | 0.4 | 0.5
Russia (RU) | 96.8 | 96.5 | 0.0 | 0.0 | 0.0 | 0.0
Total | 44.6 | 46.4 | 7.9 | 7.7 | 15.1 | 12.0
Premium portfolio in % | Unit-linked and | Residual debt insurance |  | Other
|  |  | index-linked |  |  |  |
|  | 2016 | 2015 | 2016 | 2015 | 2016 | 2015
Austria (AT) | 26.2 | 28.3 | 0.0 | 0.0 | 1.1 | 1.0
Central Europe (CE) | 57.6 | 57.6 | 9.1 | 8.6 | 13.7 | 13.4
Eastern Europe (EE) | 0.0 | 0.0 | 44.3 | 39.5 | 4.2 | 0.6
Southeastern Europe (SEE) | 2.2 | 2.0 | 0.6 | 0.7 | 9.6 | 9.4
Russia (RU) | 0.0 | 0.0 | 3.2 | 3.5 | 0.0 | 0.0
Total | 27.6 | 29.4 | 1.7 | 1.5 | 3.1 | 2.9
Definition of regions: |  |  |  |  |  |
AT – | Austria |  |  |  |  |  |
CE – | Poland, Hungary, Czech Republic, Slovakia |  |  |  |  |  |
EE – | Romania, Ukraine |  |  |  |  |  |

SEE – Bulgaria, Serbia, Bosnia and Herzegovina, Croatia, Albania, Montenegro, Kosovo, Macedonia
RU – Russia
Mortality
With respect to assurance involving death risk, premiums are calculated based on an accounting table, implicitly allowing for the safety loading of risk premiums.
Using risk selection (health examinations) means that the mortality probabilities of the portfolio are consistently smaller than those of the overall population. In addition, the gradual improvement of mortality rates means that the real mortality probabilities are consistently smaller than the values shown in the accounting table. Analyses of mortality data carried out at Group level show that, historically, the level of premiums has been sufficient to cover the death benefits.
Due to the large number of lives insured by UNIQA in the Austrian market, the mortality trends are of particular importance here. According to the 2010/2012 mortality table published by Statistics Austria, life expectancy has increased and is over 80 years for new-borns for the first time.

Life expectancy at birth |  |
Mortality table | Men | Women
1970–72 | 66.6 | 73.7
1980–82 | 69.2 | 76.4
1990–92 | 72.5 | 79.0
2000–02 | 75.5 | 81.5
2010–12 | 78.0 | 83.3

The reduction in the probability of dying at any given age is causing a huge amount of uncertain-ty in the annuity business. Improvements in mortality rates as a result of medical progress and changed lifestyles are virtually impossible to extrapolate.
Attempts to predict this effect were made when producing the generation tables. However, such tables only exist for the Austrian population and this data cannot be applied to other countries. In the

UNIQA Group, longevity risk relates mainly to the Austrian life insurance compa-nies because very few pension products are sold in the regions covered by the international business.
Homogeneity and independence of insurance risks
An insurance company takes great pains to compose a portfolio of the most homogenous, inde-pendent risks possible, in accordance with the classic, deterministic approach to calculating premiums. Because this is virtually impossible in practice, a considerable risk arises for the insurer due to random fluctuations, in particular from the outbreak of epidemic illnesses, as not only could the calculated mortality probabilities prove to be too low, the independence of the risks can also no longer be assumed.
Antiselection
UNIQA’s portfolios contain large quantities of risk insurance policies with a premium adjust-ment clause, particularly in Austria. This allows the insurer to raise the premiums in case of an (unlikely) worsening of the mortality behaviour. However, this presents the danger of possible antiselection behaviour, meaning that policies for good risks tend to be terminated while worse ones remain in the portfolio.
The right to choose pensions for deferred retirement annuities also results in antiselection. Only those policyholders who feel very healthy choose the annuity payment; all others choose partial or full capital payment. In this way, the pension portfolio tends to consist of mostly healthier people, i.e. from the insurer’s point of view worse risks than the population average.
This phenomenon is countered by corresponding modifications to the retirement mortality tables. A further possibility exists in the requirement that the intention to exercise the right to choose annuity payments must be announced no later than one year in advance of the expiration.
Costs
Besides the risks discussed above, the cost risk must also be mentioned: the insurer guarantees that it will deduct only the calculated costs for the entire term of the policy. The business risk here is that the cost premiums are insufficient (e.g. due to cost increases resulting from infla-tion).
Health
The health insurance business is operated primarily in Austria (92.4 per cent is domestic and 7.6 per cent is international). As a result, the focus lies on risk management in Austria.
Health insurance is a loss insurance which is calculated under consideration of biometric risks and is operated in Austria according to the “similar to life technique”.
Terminations by the insurer are not possible except in the case of obligation violations by the insured. Premiums must therefore be calculated in such a way that the premiums are suffi-cient to cover the insurance benefits that generally increase with age, assuming probabilities that remain constant. The probabilities and cost structures can change frequently over time. For this reason, the health insurer has the possibility to adjust the premiums as necessary to reflect the changed calculation bases.
When taking on risks, the existing risk of the individual is also evaluated. If it is established that an illness already exists for which the cost risk is expected to be higher than for the calculated portfolio, then either this illness is excluded from the policy, an adequate risk surcharge is demanded or the risk is not underwritten.
In health insurance, assurance coverage (“aging provision”) is built up through calculation according to “similar to life techniques” and reduced again in later years because this is used to finance an ever larger part of the benefits that increase with age.
The discount rate for this actuarial reserve is 3.0, 2.5 or 1.75 per cent. If the discount rate is not achieved by the investment, there are safety margins in the premiums that can be used to cover insufficient investment results. A circular was published by the Financial Market Authori-ty Austria (FMA) in

October 2013 regarding the discount rate in health insurance, meaning that between 1 January 2014 and 30 April 2016, new business was calculated with a discount rate of 2.5 per cent. A further circular was sent by the FMA in October 2015 which determined that the tariffs for new sales from 1 May 2016 at the latest should include a discount rate of 1.75 per cent. This results in a further improvement of the risk in cases where the investment results are in-sufficient. The average discount rate as at 31 December 2016 was approximately 2.93 per cent.
The legal risks arise primarily from the effects that changes to legislation have on the exist-ing private health insurance business model. This includes, in particular, changes to the legal framework that make it harder or impossible to adapt to changed circumstances or that sharply reduce the income opportunities. Developments in this area will be observed by the insurance association, and an attempt will be made where necessary to react to negative developments from the perspective of the private health insurer.
The EU Directive on the equal treatment of men and women in insurance, which is imple-mented in Austria by the Insurance Amendment Act 2006, was also taken into account in the calculation of premiums at the end of the second quarter of 2007. This stipulated that the costs of birth and pregnancy be distributed across both sexes. No significant risk to profit has been identified here.
In the meantime, a European Court of Justice decision regarding insurance policies results in a new situation as at 21 December 2012: as at that date only completely identical premiums are allowed for men and women, excluding considerations such as age and individual pre-existing conditions. Experience from 2013 to 2016 has shown that this has not resulted in any negative changes to the portfolio structure of new business.
The risk of the health insurance business outside Austria (approx. €47.7 million) is currently dominated primarily by Switzerland (approx. €11.3 million), where there is sufficient risk capital.

The remaining premiums are divided among multiple companies and are of only minor im-portance there. Life-long health insurance policies without termination options by the insurer rarely exist outside of Austria, meaning that the risk can be considered low for this reason as well.
Other risks
Operational risks
Operational risk includes losses that are caused by insufficient or failed internal processes, as well as losses caused by systems, human resources or external events.
Operational risk includes legal risk, but not reputation or strategic risk. Legal risk is the risk of uncertainty due to lawsuits or uncertainty in the applicability or interpretation of contracts, laws or other legal requirements.
At UNIQA, legal risks are monitored on an on-going basis and reports made the Manage-ment Board. UNIQA’s risk management process also defined the risk process for operational risks in terms of methodology, workflow and responsibilities. The risk manager is responsible for compliance in all subsidiaries.
A distinctive feature of operational risk is that it can surface in all processes and depart-ments. This is why operational risk is identified and evaluated in every operational company at a very broad level within UNIQA. Risks are identified with the help of a standardised risk cata-logue that is regularly checked for completeness. Scenarios are defined for evaluating these risks; these scenarios are meant to convey the likelihood of occurrence and the possible amount of the claim. The results are then presented by the risk manager in the form of a summarised risk report.
This process is usually conducted twice a year.
Business Continuity Management
According to international standards, the UNIQA Group – as a financial service provider – forms part of the critical infrastructure of key importance to the national community. If this infrastructure were to fail or become impaired, it would cause considerable disruption to public safety and security or lead to other drastic consequences.
As a rule, emergencies, crises and disasters are unexpected events for which it is impossible to plan, although systems and processes can be put in place to deal with such events. The sys-tems and processes must then be treated as a special responsibility of management and must be dealt with professionally, efficiently and as quickly as possible.
UNIQA has implemented a Business Continuity Management system (BCM) covering the issues of crisis prevention, crisis management and business recovery (including business conti-nuity plans). The main objectives are as follows:

• | to prevent personal injury to, or death of, employees or third parties

• | to minimise the impact from failure of key business processes

• | to be appropriately prepared with continuously updated emergency and recovery plans

The UNIQA BCM model is based on international rules and standards and was further imple-mented in 2016. The implementation of a BCM system forms part of UNIQA’s response to the requirements imposed by relevant authorities (solvency, critical infrastructure) and the market (calls for tender). This holistic approach to a risk management system not only reduces poten-tial losses following an event but also enhances the quality of day-to-day operations.
Reputational and strategic risks
Reputational risk describes the risk of loss that arises due to possible damage to the Company’s reputation, a deterioration in prestige, or a negative overall impression due to negative percep-tion by customers, business partners, shareholders or supervisory agencies.
Reputational risks that occur in the course of core processes such as claims processing or advising and service quality are identified, evaluated and managed as operational risks in our subsidiaries.
The most important reputational risks are presented, like the operational risks, in an aggre-gated form in the risk report.
Group risk management then analyses whether the risk observed in the Group or in another unit may occur, and whether the danger of “contagion” within the Group is possible.
Strategic risk describes the risk that results from management decisions or insufficient im-plementation of management decisions that may influence current/future income or solvency. This includes the risk that arises from management decisions that are inadequate because they ignore a changed business environment.
Like operational and reputational risks, strategic risks are evaluated twice a year. Further-more, important decisions in various committees, such as the Risk Committee, are discussed with the Management Board. As outlined in the explanation of the risk management process, the management receives a monthly update regarding the most significant risks in the form of a heat map.

6.6 Reinsurance
The Management Board of the holding company determines, directly and indirectly, the strate-gic contents of reinsurance policy with its decisions regarding risk and capital policy. The fol-lowing principles can be derived to structure the purchasing of external reinsurance.
Reinsurance structures support the continuous optimisation of the required risk capital and the management of the use of this risk capital. Great importance is attached to the maximum use of diversification effects. Decisions regarding all reinsurance business ceded are taken with special consideration of their effects on the required risk capital. Continuous analysis of rein-surance purchasing for efficiency characteristics is an essential component of internal risk management processes.
UNIQA Re AG in Zurich is responsible for the operational implementation of these tasks. It is responsible for and guarantees the implementation of reinsurance policies issued by the Management Board of the holding company. It is responsible for issuing Group-wide guidelines governing all activities, organisation and questions regarding internal and external reinsurance relationships. UNIQA Re AG is available to all Group companies as the risk carrier for their reinsurance needs. Naturally, internal risk transfers are subject to the same requirements and valuation processes in terms of efficiency measurement, risk capital optimisation and diversifi-cation as retrocessions to external reinsurance partners.
The assessment of the exposure of the portfolios assumed by the Group companies is of cen-tral importance. Periodic risk assessments have been performed for years in the interest of a value-based management of the capital commitment. Extensive data are used to assess risk capital requirements for affected units. Reinsurance programmes are consistently structured systematically in accordance with their influence on the cedent’s risk situation.
For the property and casualty insurer, promises of performance for protection against losses resulting from natural disasters frequently represent the greatest stress on risk capital by far due to the volatile nature of such claims and the conceivable amount of catastrophic damages. UNIQA has set up a specialised unit within UNIQA Re AG in order to deal with this problem. Exposure is constantly monitored and evaluated at the country and Group levels in cooperation with internal and external authorities. UNIQA substantially eases the pressure on its risk capi-tal through the targeted utilisation of all applicable diversification effects and the launching of a highly efficient retrocession programme.

UNIQA Re AG has assumed almost all of the UNIQA Group’s required reinsurance business ceded in the reporting period. Only in the life insurance line was a portion of the necessary cessions given directly to external reinsurance partners. The Group’s retrocessions in the non-life insurance line were carried out on a non-proportional basis. The Group assumes reasonable deductibles in the affected programmes based on risk and value-based approaches.

SEGMENT REPORTING
Operating segments

|  | UNIQA Austria |  | UNIQA International |  |  |  | Reinsurance |
In € thousand | 1/12/2016 |  | 1-12/2015 |  | 1-12/2016 |  | 1-12/2015 |  | 1-12/2016 |  | 1-12/2015 |
Premiums written (gross), including savings portions |  |  |  |  |  |
from unit-linked and index-linked life insurance | 3,631,453 |  | 3,883,545 |  | 1,399,890 |  | 1,302,758 |  | 1,130,795 |  | 1,112,080 |
Premiums earned (net), including savings portions |  |  |  |  |  |
from unit-linked and index-linked life insurance | 2,941,445 |  | 3,194,917 |  | 962,994 |  | 913,196 |  | 1,022,692 |  | 1,014,440 |
Savings portions in unit-linked and |  |  |  |  |  |
index-linked life insurance (gross) | 246,038 |  | 270,217 |  | 159,060 |  | 111,795 |  | 0 |  | 0 |
Savings portions in unit-linked and |  |  |  |  |  |
index-linked life insurance (net) | 225,666 |  | 254,102 |  | 159,060 |  | 111,795 |  | 0 |  | 0 |
Premiums written (gross) | 3,385,416 |  | 3,613,328 |  | 1,240,830 |  | 1,190,962 |  | 1,130,795 |  | 1,112,080 |
Premiums earned (net) | 2,715,779 |  | 2,940,815 |  | 803,935 |  | 801,401 |  | 1,022,692 |  | 1,014,440 |
Premiums earned (net) – intragroup |  | – 642,386 |  | – 332,689 |  | – 304,080 |  | 1,067,442 |  | 1,051,994 |
Premiums earned (net) – external | 3,351,096 |  | 3,583,201 |  | 1,136,624 |  | 1,105,481 |  | – 44,750 |  | – 37,554 |
Technical interest income | 306,825 |  | 403,097 |  | 26,510 |  | 28,435 |  | 0 |  | 0 |
Other insurance income | 2,908 |  | 2,897 |  | 16,106 |  | 21,064 |  | 442 |  | 631 |
Insurance benefits |  | – 2,542,081 |  | – 484,946 |  | – 485,761 |  | – 694,723 |  | – 720,148 |
Operating expenses |  | – 537,469 |  | – 336,156 |  | – 333,823 |  | – 330,527 |  | – 315,686 |
Other technical expenses |  | – 34,855 |  | – 33,256 |  | – 35,366 |  | – 9,124 |  | – 9,060 |
Technical result | 117,853 |  | 232,404 |  | – 7,807 |  | – 4,051 |  | – 11,240 |  | – 29,823 |
Net investment income and income from investment property | 460,087 |  | 597,908 |  | 63,542 |  | 97,255 |  | 29,923 |  | 27,652 |
Other income | 7,914 |  | 7,506 |  | 21,091 |  | 12,305 |  | 1,844 |  | 2,240 |
Reclassification of technical interest income |  | – 403,097 |  | – 26,510 |  | – 28,435 |  | 0 |  | 0 |
Other expenses |  | – 12,285 |  | – 14,185 |  | – 28,948 |  | – 2,356 |  | – 2,204 |
Non-technical result | 138,633 |  | 190,032 |  | 43,939 |  | 52,177 |  | 29,410 |  | 27,687 |
Operating profit/(loss) | 256,487 |  | 422,436 |  | 36,132 |  | 48,126 |  | 18,170 |  | – 2,136 |
Amortisation of goodwill and impairment losses |  | – 1,542 |  | – 22,362 |  | – 16,638 |  | 0 |  | 0 |
Finance costs |  | – 21,151 |  | – 719 |  | – 168 |  | – 79 |  | 0 |
Profit/(loss) for the year from continuing operations | 232,230 |  | 399,742 |  | 13,051 |  | 31,319 |  | 18,091 |  | – 2,136 |
Combined ratio (property and casualty insurance, after reinsurance) | 0.937 |  | 92.9 | % | 99.2 | % | 99.2 | % | 100.0 | % | 101.7 | %
Cost ratio (after reinsurance) | 0.2 |  | 16.8 | % | 34.9 | % | 36.6 | % | 32.3 | % | 31.1 | %

Impairment by segment |  |  |  |  |  |
|  | UNIQA Austria | UNIQA International |  |  | Reinsurance
In € thousand | 1/12/2016 |  | 1-12/2015 | 1-12/2016 | 1-12/2015 | 1-12/2016 | 1-12/2015
Goodwill |  |  |  |  |  |
Impairments | — |  | 0 | – 16,590 | – 13,081 | 0 | 0
Investments |  |  |  |  |  |
Impairments |  | – 38,546 | – 148 | – 510 | 0 | 0
Reversal of impairment losses | 7,689 |  | 16,348 | 1 | 0 | 0 | 0

| Group function |  |  | Consolidation |  |  | Group |
1-12/2016 |  | 1-12/2015 |  | 1-12/2016 |  | 1-12/2015 |  | 1-12/2016 |  | 1-12/2015 |
0 |  | 0 |  | – 1,113,928 |  | – 1,087,337 |  | 5,048,210 |  | 5,211,046 |
0 |  | 0 |  | – 99,436 |  | – 105,529 |  | 4,827,696 |  | 5,017,025 |
0 |  | 0 |  | 0 |  | 0 |  | 405,097 |  | 382,012 |
0 |  | 0 |  | 0 |  | 0 |  | 384,725 |  | 365,897 |
0 |  | 0 |  | – 1,113,928 |  | – 1,087,337 |  | 4,643,113 |  | 4,829,034 |
0 |  | 0 |  | – 99,436 |  | – 105,529 |  | 4,442,970 |  | 4,651,128 |
0 |  | 0 |  | – 99,436 |  | – 105,529 |  | 0 |  | 0 |
0 |  | 0 |  | 0 |  | 0 |  | 4,442,970 |  | 4,651,128 |
0 |  | 0 |  | 0 |  | 209 |  | 333,334 |  | 431,740 |
6,157 |  | 7,968 |  | – 1,776 |  | – 2,132 |  | 23,837 |  | 30,429 |
7,708 |  | 10,566 |  | 78,525 |  | 66,117 |  | – 3,385,566 |  | – 3,671,307 |
– 49,634 |  | – 27,899 |  | 19,166 |  | 24,442 |  | – 1,286,394 |  | – 1,190,435 |
– 313 |  | – 905 |  | 14,656 |  | 14,504 |  | – 54,321 |  | – 65,682 |
– 36,081 |  | – 10,269 |  | 11,135 |  | – 2,389 |  | 73,861 |  | 185,872 |
152,773 |  | 207,095 |  | – 117,433 |  | – 197,926 |  | 588,892 |  | 731,983 |
10,896 |  | 13,798 |  | 823 |  | – 31 |  | 42,569 |  | 35,818 |
0 |  | 0 |  | 0 |  | – 209 |  | – 333,334 |  | – 431,740 |
– 8,989 |  | – 8,624 |  | – 5,072 |  | – 3,629 |  | – 53,145 |  | – 55,691 |
154,680 |  | 212,269 |  | – 121,681 |  | – 201,795 |  | 244,982 |  | 280,370 |
118,599 |  | 202,001 |  | – 110,546 |  | – 204,184 |  | 318,842 |  | 466,242 |
0 |  | 0 |  | 0 |  | 0 |  | – 25,832 |  | – 18,181 |
– 67,456 |  | – 50,262 |  | 21,563 |  | 21,339 |  | – 67,477 |  | – 50,243 |
51,143 |  | 151,739 |  | – 88,983 |  | – 182,846 |  | 225,533 |  | 397,818 |
n/a |  | n/a |  | n/a |  | n/a |  | 1.0 |  | 1.0 |
n/a |  | n/a |  | n/a |  | n/a |  | 0.3 |  | 0.2 |

| Group function |  |  | Consolidation |  |  | Group |
1-12/2016 |  | 1-12/2015 |  | 1-12/2016 |  | 1-12/2015 |  | 1-12/2016 |  | 1-12/2015 |
0 |  | 0 |  | 0 |  | 0 |  | – 16,590 |  | – 13,081 |
0 |  | 0 |  | – 14,271 |  | – 14,578 |  | – 80,486 |  | – 53,635 |
249 |  | 268 |  | 0 |  | 0 |  | 7,940 |  | 16,616 |

Operating segments – classified by business line

Property and casualty insurance |  | UNIQA Austria | UNIQA International |  | Reinsurance
In € thousand | 1-12/2016 | 1-12/2015 | 1-12/2016 | 1-12/2015 | 1-12/2016 | 1-12/2015
Premiums written (gross) | 1,568,649 | 1,540,752 | 942,343 | 883,626 | 1,081,063 | 1,060,821
Premiums earned (net) | 940,937 | 910,145 | 517,339 | 502,988 | 999,749 | 992,086
Technical interest income | 0 | 0 | 0 | 0 | 0 | 0
Other insurance income | 2,095 | 1,349 | 10,919 | 16,334 | 200 | 197
Insurance benefits | – 648,003 | – 633,414 | – 308,845 | – 296,443 | – 673,153 | – 697,115
Operating expenses | – 233,945 | – 212,152 | – 204,377 | – 202,644 | – 326,255 | – 311,848
Other technical expenses | – 6,253 | – 10,202 | – 29,983 | – 33,049 | – 5,467 | – 5,213
Technical result | 54,831 | 55,727 | – 14,947 | – 12,814 | – 4,926 | – 21,892
Net investment income and income from investment property | 27,602 | 49,172 | 32,943 | 44,381 | 20,020 | 17,421
Other income | 5,464 | 6,521 | 7,064 | 7,891 | 1,784 | 2,183
Reclassification of technical interest income | 0 | 0 | 0 | 0 | 0 | 0
Other expenses | – 17,252 | – 11,467 | – 10,753 | – 12,264 | – 2,322 | – 2,122
Non-technical result | 15,814 | 44,226 | 29,254 | 40,008 | 19,482 | 17,482
Operating profit/(loss) | 70,645 | 99,953 | 14,307 | 27,194 | 14,556 | – 4,410
Amortisation of goodwill and impairment losses | 0 | 0 | – 19,516 | – 15,960 | 0 | 0
Finance costs | 0 | 0 | – 719 | – 168 | – 79 | 0
Profit/(loss) for the year from continuing operations | 70,645 | 99,953 | – 5,928 | 11,065 | 14,477 | – 4,410
Health insurance |  | UNIQA Austria | UNIQA International |  | Reinsurance
In € thousand | 1-12/2016 | 1-12/2015 | 1-12/2016 | 1-12/2015 | 1-12/2016 | 1-12/2015
Premiums written (gross) | 956,280 | 921,619 | 47,692 | 43,416 | 1,988 | 646
Premiums earned (net) | 955,332 | 921,923 | 44,011 | 42,548 | 1,424 | 227
Technical interest income | 77,670 | 73,783 | 0 | 0 | 0 | 0
Other insurance income | 317 | 230 | 1,602 | 1,322 | 0 | 0
Insurance benefits | – 821,795 | – 762,872 | – 29,288 | – 29,551 | – 154 | – 338
Operating expenses | – 143,119 | – 121,753 | – 19,794 | – 20,010 | – 672 | – 24
Other technical expenses | – 431 | – 2,056 | – 204 | – 364 | 0 | 0
Technical result | 67,975 | 109,255 | – 3,673 | – 6,056 | 598 | – 134
Net investment income and income from investment property | 116,085 | 151,840 | 481 | 245 | 0 | 0
Other income | 965 | 486 | 1,707 | 1,742 | 0 | 2
Reclassification of technical interest income | – 77,670 | – 73,783 | 0 | 0 | 0 | 0
Other expenses | – 2,802 | – 301 | – 1,655 | – 1,422 | 0 | 0
Non-technical result | 36,577 | 78,241 | 533 | 565 | 0 | 2
Operating profit/(loss) | 104,552 | 187,496 | – 3,141 | – 5,491 | 598 | – 132
Amortisation of goodwill and impairment losses | 0 | 0 | 0 | 0 | 0 | 0
Finance costs | 0 | 0 | 0 | 0 | 0 | 0
Profit/(loss) for the year from continuing operations | 104,552 | 187,496 | – 3,141 | – 5,491 | 598 | – 132

| Group function |  |  | Consolidation |  |  | Group |
1-12/2016 |  | 1-12/2015 |  | 1-12/2016 |  | 1-12/2015 |  | 1-12/2016 |  | 1-12/2015 |
0 |  | 0 |  | – 1,073,624 |  | – 1,046,014 |  | 2,518,432 |  | 2,439,186 |
0 |  | 0 |  | – 98,973 |  | – 103,949 |  | 2,359,053 |  | 2,301,270 |
0 |  | 0 |  | 0 |  | 0 |  | 0 |  | 0 |
6,157 |  | 7,968 |  | – 1,520 |  | – 1,770 |  | 17,852 |  | 24,078 |
175 |  | 56 |  | 79,232 |  | 73,232 |  | – 1,550,593 |  | – 1,553,683 |
– 17,182 |  | – 10,295 |  | 18,580 |  | 37,318 |  | – 763,180 |  | – 699,621 |
– 161 |  | – 375 |  | 8,694 |  | 8,375 |  | – 33,171 |  | – 40,464 |
– 11,010 |  | – 2,647 |  | 6,013 |  | 13,207 |  | 29,961 |  | 31,580 |
174,190 |  | 185,769 |  | – 122,131 |  | – 179,499 |  | 132,626 |  | 117,245 |
8,052 |  | 9,988 |  | 837 |  | – 29 |  | 23,199 |  | 26,554 |
0 |  | 0 |  | 0 |  | 0 |  | 0 |  | 0 |
– 6,583 |  | – 7,569 |  | – 4,084 |  | – 4,531 |  | – 40,994 |  | – 37,952 |
175,659 |  | 188,189 |  | – 125,378 |  | – 184,059 |  | 114,831 |  | 105,846 |
164,648 |  | 185,542 |  | – 119,365 |  | – 170,852 |  | 144,791 |  | 137,426 |
0 |  | 0 |  | 0 |  | 0 |  | – 19,516 |  | – 15,960 |
– 67,348 |  | – 50,108 |  | 776 |  | 187 |  | – 67,370 |  | – 50,089 |
97,300 |  | 135,434 |  | – 118,589 |  | – 170,665 |  | 57,905 |  | 71,376 |
| Group function |  |  | Consolidation |  |  | Group |
1-12/2016 |  | 1-12/2015 |  | 1-12/2016 |  | 1-12/2015 |  | 1-12/2016 |  | 1-12/2015 |
0 |  | 0 |  | – 2,304 |  | – 1,288 |  | 1,003,656 |  | 964,393 |
0 |  | 0 |  | – 411 |  | – 800 |  | 1,000,356 |  | 963,899 |
0 |  | 0 |  | 0 |  | 0 |  | 77,670 |  | 73,783 |
0 |  | 0 |  | 0 |  | 0 |  | 1,918 |  | 1,552 |
7,532 |  | 10,510 |  | 133 |  | 530 |  | – 843,571 |  | – 781,721 |
– 11,976 |  | – 5,519 |  | 75 |  | – 6,386 |  | – 175,486 |  | – 153,693 |
– 118 |  | – 227 |  | 0 |  | 0 |  | – 752 |  | – 2,647 |
– 4,562 |  | 4,764 |  | – 203 |  | – 6,656 |  | 60,136 |  | 101,173 |
– 4,544 |  | – 6,151 |  | 2,885 |  | – 5,863 |  | 114,907 |  | 140,071 |
2,341 |  | 3,421 |  | 0 |  | 0 |  | 5,013 |  | 5,650 |
0 |  | 0 |  | 0 |  | 0 |  | – 77,670 |  | – 73,783 |
– 1,703 |  | 0 |  | – 66 |  | 21 |  | – 6,226 |  | – 1,702 |
– 3,906 |  | – 2,729 |  | 2,820 |  | – 5,842 |  | 36,023 |  | 70,236 |
– 8,468 |  | 2,035 |  | 2,617 |  | – 12,498 |  | 96,159 |  | 171,410 |
0 |  | 0 |  | 0 |  | 0 |  | 0 |  | 0 |
– 107 |  | – 154 |  | 0 |  | 0 |  | – 107 |  | – 154 |
– 8,575 |  | 1,881 |  | 2,617 |  | – 12,498 |  | 96,051 |  | 171,256 |

Life insurance |  | UNIQA Austria | UNIQA International |  | Reinsurance
In € thousand | 1-12/2016 | 1-12/2015 | 1-12/2016 | 1-12/2015 | 1-12/2016 | 1-12/2015
Premiums written (gross), including savings portions |  |  |  |  |  |
from unit-linked and index-linked life insurance | 1,106,524 | 1,421,174 | 409,855 | 375,715 | 47,744 | 50,612
Premiums earned (net), including savings portions |  |  |  |  |  |
from unit-linked and index-linked life insurance | 1,045,175 | 1,362,849 | 401,644 | 367,660 | 21,519 | 22,127
Savings portions in unit-linked and |  |  |  |  |  |
index-linked life insurance (gross) | 246,038 | 270,217 | 159,060 | 111,795 | 0 | 0
Savings portions in unit-linked and |  |  |  |  |  |
index-linked life insurance (net) | 225,666 | 254,102 | 159,060 | 111,795 | 0 | 0
| 0 | 0 | 0 | 0 | 0 | 0
Premiums written (gross) | 860,487 | 1,150,956 | 250,795 | 263,920 | 47,744 | 50,612
Premiums earned (net) | 819,510 | 1,108,747 | 242,585 | 255,865 | 21,519 | 22,127
Technical interest income | 229,154 | 329,314 | 26,510 | 28,435 | 0 | 0
Other insurance income | 496 | 1,319 | 3,586 | 3,408 | 241 | 433
Insurance benefits | – 822,332 | – 1,145,795 | – 146,814 | – 159,767 | – 21,415 | – 22,696
Operating expenses | – 212,180 | – 203,564 | – 111,985 | – 111,169 | – 3,600 | – 3,815
Other technical expenses | – 19,601 | – 22,598 | – 3,068 | – 1,953 | – 3,657 | – 3,847
Technical result | – 4,953 | 67,422 | 10,814 | 14,820 | – 6,912 | – 7,797
Net investment income and income from investment property | 316,400 | 396,896 | 30,117 | 52,629 | 9,902 | 10,231
Other income | 1,486 | 499 | 12,321 | 2,672 | 60 | 55
Reclassification of technical interest income | – 229,154 | – 329,314 | – 26,510 | – 28,435 | 0 | 0
Other expenses | – 2,489 | – 517 | – 1,776 | – 15,263 | – 34 | – 82
Non-technical result | 86,243 | 67,564 | 14,152 | 11,603 | 9,928 | 10,203
Operating profit/(loss) | 81,290 | 134,987 | 24,966 | 26,423 | 3,016 | 2,406
Amortisation of goodwill and impairment losses | – 3,470 | – 1,542 | – 2,846 | – 678 | 0 | 0
Finance costs | – 20,787 | – 21,151 | 0 | 0 | 0 | 0
Profit/(loss) for the year from continuing operations | 57,033 | 112,293 | 22,120 | 25,745 | 3,016 | 2,406

| Group function |  |  | Consolidation |  |  | Group |
1-12/2016 |  | 1-12/2015 |  | 1-12/2016 |  | 1-12/2015 |  | 1-12/2016 |  | 1-12/2015 |
0 |  | 0 |  | – 38,000 |  | – 40,034 |  | 1,526,123 |  | 1,807,467 |
0 |  | 0 |  | – 52 |  | – 780 |  | 1,468,287 |  | 1,751,856 |
0 |  | 0 |  | 0 |  | 0 |  | 405,097 |  | 382,012 |
0 |  | 0 |  | 0 |  | 0 |  | 384,725 |  | 365,897 |
0 |  | 0 |  | 0 |  | 0 |  | 0 |  | 0 |
0 |  | 0 |  | – 38,000 |  | – 40,034 |  | 1,121,025 |  | 1,425,454 |
0 |  | 0 |  | – 52 |  | – 780 |  | 1,083,561 |  | 1,385,959 |
0 |  | 0 |  | 0 |  | 209 |  | 255,664 |  | 357,957 |
0 |  | 1 |  | – 256 |  | – 362 |  | 4,067 |  | 4,799 |
0 |  | 0 |  | – 840 |  | – 7,645 |  | – 991,401 |  | – 1,335,903 |
– 20,475 |  | – 12,084 |  | 511 |  | – 6,489 |  | – 347,728 |  | – 337,121 |
– 35 |  | – 303 |  | 5,963 |  | 6,129 |  | – 20,398 |  | – 22,571 |
– 20,509 |  | – 12,386 |  | 5,325 |  | – 8,939 |  | – 16,236 |  | 53,119 |
– 16,873 |  | 27,477 |  | 1,812 |  | – 12,565 |  | 341,360 |  | 474,668 |
504 |  | 389 |  | – 13 |  | – 1 |  | 14,357 |  | 3,613 |
0 |  | 0 |  | 0 |  | – 209 |  | – 255,664 |  | – 357,957 |
– 703 |  | – 1,055 |  | – 922 |  | 881 |  | – 5,925 |  | – 16,037 |
– 17,073 |  | 26,810 |  | 877 |  | – 11,894 |  | 94,128 |  | 104,287 |
– 37,582 |  | 14,424 |  | 6,202 |  | – 20,833 |  | 77,892 |  | 157,407 |
0 |  | 0 |  | 0 |  | 0 |  | – 6,316 |  | – 2,220 |
0 |  | 0 |  | 20,787 |  | 21,151 |  | 0 |  | 0 |
– 37,582 |  | 14,424 |  | 26,989 |  | 318 |  | 71,576 |  | 155,186 |

UNIQA International – classified by region

|  | Premiums earned (net) |  |  | Net investment income |
In € thousand | 1-12/2016 |  | 1-12/2015 |  | 1-12/2016 |  | 1-12/2015 |
Switzerland | 11,218 |  | 10,240 |  | 191 |  | 224 |
Italy | 0 |  | 0 |  | 0 |  | 0 |
Liechtenstein | 1,270 |  | 2,540 |  | 214 |  | 1,254 |
Western Europe (WE) | 12,488 |  | 12,779 |  | 405 |  | 1,478 |
Czech Republic | 124,598 |  | 126,945 |  | 7,256 |  | 6,507 |
Hungary | 58,557 |  | 57,282 |  | 3,864 |  | 4,205 |
Poland | 153,457 |  | 160,166 |  | 14,329 |  | 21,069 |
Slovakia | 76,962 |  | 73,364 |  | 3,913 |  | 3,819 |
Central Europe (CE) | 413,574 |  | 417,756 |  | 29,362 |  | 35,599 |
Romania | 62,496 |  | 51,352 |  | 2,740 |  | 3,427 |
Ukraine | 38,553 |  | 40,708 |  | 8,849 |  | 14,739 |
Eastern Europe (EE) | 101,049 |  | 92,060 |  | 11,589 |  | 18,166 |
Albania | 27,570 |  | 25,321 |  | 739 |  | 225 |
Bosnia-Herzegovina | 25,806 |  | 23,623 |  | 2,447 |  | 2,543 |
Bulgaria | 43,072 |  | 40,358 |  | 1,446 |  | 1,142 |
Croatia | 52,389 |  | 65,410 |  | 15,053 |  | 17,044 |
Montenegro | 9,996 |  | 10,116 |  | 653 |  | 643 |
Macedonia | 10,962 |  | 10,105 |  | 406 |  | 421 |
Serbia | 40,225 |  | 42,003 |  | 4,774 |  | 4,328 |
Kosovo | 10,828 |  | 13,400 |  | 151 |  | 0 |
Southeastern Europe (SEE) | 220,849 |  | 230,336 |  | 25,669 |  | 26,346 |
Russia | 55,975 |  | 48,470 |  | – 3,203 |  | 15,275 |
Russia (RU) | 55,975 |  | 48,470 |  | – 3,203 |  | 15,275 |
Austria | 0 |  | 0 |  | – 280 |  | 391 |
Administration | 0 |  | 0 |  | – 280 |  | 391 |
UNIQA International | 803,935 |  | 801,401 |  | 63,542 |  | 97,255 |
of which |  |  |  |
Earnings before taxes insurance companies |  |  |  |
Impairment |  |  |  |
Impairment (Ukraine) |  |  |  |

| Insurance benefits |  |  | Operating expenses |  |  | Earnings before taxes |  |
1-12/2016 |  | 1-12/2015 |  | 1-12/2016 |  | 1-12/2015 |  | 1-12/2016 |  | 1-12/2015 |  |
– 7,545 |  | – 7,470 |  | – 3,955 |  | – 3,473 |  | 1,468 |  | 1,050 |  |
0 |  | 0 |  | 0 |  | 0 |  | 0 |  | 0 |  |
– 1,864 |  | – 1,139 |  | 104 |  | 757 |  | – 544 |  | 3,332 |  |
– 9,409 |  | – 8,609 |  | – 3,851 |  | – 2,716 |  | 924 |  | 4,382 |  |
– 67,192 |  | – 75,482 |  | – 51,434 |  | – 42,951 |  | 12,468 |  | 14,093 |  |
– 19,026 |  | – 24,375 |  | – 34,755 |  | – 28,994 |  | 160 |  | – 674 |  |
– 103,819 |  | – 106,976 |  | – 56,586 |  | – 57,707 |  | 6,045 |  | 15,752 |  |
– 43,922 |  | – 42,597 |  | – 30,950 |  | – 29,055 |  | 6,143 |  | 5,613 |  |
– 233,959 |  | – 249,430 |  | – 173,725 |  | – 158,707 |  | 24,815 |  | 34,784 |  |
– 39,411 |  | – 27,063 |  | – 21,267 |  | – 22,931 |  | – 5,668 |  | – 2,429 |  |
– 14,679 |  | – 14,389 |  | – 24,607 |  | – 28,655 |  | 7,809 |  | – 2,408 |  |
– 54,090 |  | – 41,452 |  | – 45,874 |  | – 51,586 |  | 2,140 |  | – 4,836 |  |
– 7,791 |  | – 9,507 |  | – 11,884 |  | – 11,846 |  | 4,786 |  | 2,599 |  |
– 18,542 |  | – 17,043 |  | – 8,494 |  | – 8,077 |  | 1,069 |  | 1,057 |  |
– 30,120 |  | – 24,001 |  | – 13,553 |  | – 17,086 |  | 833 |  | 549 |  |
– 38,992 |  | – 54,415 |  | – 21,769 |  | – 21,530 |  | – 10,763 |  | 5,532 |  |
– 5,370 |  | – 6,395 |  | – 4,712 |  | – 4,824 |  | 6 |  | – 601 |  |
– 5,602 |  | – 5,314 |  | – 5,331 |  | – 4,796 |  | 691 |  | 664 |  |
– 25,091 |  | – 25,838 |  | – 15,615 |  | – 17,438 |  | 1,543 |  | – 62 |  |
– 7,361 |  | – 7,492 |  | – 4,754 |  | – 5,274 |  | – 1,813 |  | 445 |  |
– 138,868 |  | – 150,006 |  | – 86,111 |  | – 90,871 |  | – 3,647 |  | 10,182 |  |
– 48,619 |  | – 36,265 |  | – 9,990 |  | – 9,430 |  | 5,847 |  | 6,658 |  |
– 48,619 |  | – 36,265 |  | – 9,990 |  | – 9,430 |  | 5,847 |  | 6,658 |  |
0 |  | 0 |  | – 16,605 |  | – 20,511 |  | – 17,028 |  | – 19,852 |  |
0 |  | 0 |  | – 16,605 |  | – 20,511 |  | – 17,028 |  | – 19,852 |  |
– 484,946 |  | – 485,761 |  | – 336,156 |  | – 333,823 |  | 13,051 |  | 31,319 |  |
|  |  |  | 30,080 |  | 51,170 |  |
|  |  |  | – 16,590 |  |  |
|  |  |  |  | – 13,081 |  |

Consolidated statement of financial position – classified by business line

| Property and casualty insurance |  |  | Health insurance
In € thousand | 31/12/2016 |  | 31/12/2015 |  | 31/12/2016 |  | 31/12/2015
Assets |  |  |  |
Property, plant and equipment | 151,118 |  | 165,176 |  | 30,551 |  | 28,946 |
Investment property | 285,872 |  | 216,905 |  | 275,331 |  | 280,708 |
Intangible assets | 451,312 |  | 480,918 |  | 242,280 |  | 232,798 |
Financial assets accounted for using the equity method | 52,128 |  | 45,122 |  | 180,787 |  | 175,924 |
Investments | 4,510,004 |  | 4,629,614 |  | 2,825,901 |  | 2,558,942 |
Unit-linked and index-linked life insurance investments | 0 |  | 0 |  | 0 |  | 0 |
Reinsurers’ share of technical provisions | 188,062 |  | 179,622 |  | 1,857 |  | 895 |
Reinsurers’ share of technical provisions for unit-linked and |  |  |  |
index-linked life insurance | 0 |  | 0 |  | 0 |  | 0 |
Receivables, including insurance receivables | 651,476 |  | 986,588 |  | 44,665 |  | 149,193 |
Income tax receivables | 64,434 |  | 69,533 |  | 139 |  | 21 |
Deferred tax assets | 1,149 |  | 7,446 |  | 418 |  | 17 |
Cash and cash equivalents | 288,625 |  | 304,398 |  | 78,874 |  | 159,177 |
Assets in disposal groups held for sale | 219,334 |  | 0 |  | 33,686 |  | 0 |
Total assets by business line | 6,863,514 |  | 7,085,322 |  | 3,714,490 |  | 3,586,622 |
Liabilities |  |  |  |
Subordinated liabilities | 851,183 |  | 1,100,089 |  | 0 |  | 0 |
Technical provisions | 2,908,289 |  | 3,059,858 |  | 2,882,134 |  | 2,780,075 |
Technical provisions for unit-linked and index-linked life |  |  |  |
insurance | 0 |  | 0 |  | 0 |  | 0 |
Financial liabilities | 15,998 |  | 10,568 |  | 29,214 |  | 24,016 |
Other provisions | 749,632 |  | 739,460 |  | 22,295 |  | 21,715 |
Liabilities and other items classified as liabilities | 644,917 |  | 707,787 |  | 15,392 |  | 89,394 |
Income tax liabilities | 75,767 |  | 88,146 |  | 2,873 |  | 2,547 |
Deferred tax liabilities | 37,443 |  | 62,887 |  | 147,506 |  | 144,872 |
Liabilities in disposal groups held for sale | 332,279 |  | 0 |  | 55,012 |  | 0 |
Total equity and liabilities by business line | 5,615,508 |  | 5,768,793 |  | 3,154,426 |  | 3,062,619 |

| Life insurance |  | Consolidation |  | Group
31/12/2016 | 31/12/2015 | 31/12/2016 | 31/12/2015 | 31/12/2016 | 31/12/2015
83,550 | 98,866 | 0 | 0 | 265,219 | 292,989
788,793 | 894,977 | 0 | 0 | 1,349,996 | 1,392,590
810,017 | 999,692 | – 11,249 | – 10,350 | 1,492,360 | 1,703,058
288,389 | 293,119 | 0 | 0 | 521,305 | 514,165
11,467,353 | 14,681,475 | – 649,786 | – 477,555 | 18,153,472 | 21,392,476
4,879,928 | 5,226,748 | 0 | 0 | 4,879,928 | 5,226,748
146,536 | 373,173 | – 12,013 | – 4,724 | 324,443 | 548,966
318,636 | 315,646 | 0 | 0 | 318,636 | 315,646
235,249 | 534,523 | – 292,694 | – 758,826 | 638,695 | 911,477
1,281 | 17,716 | 0 | 0 | 65,854 | 87,270
4,022 | 5,653 | 0 | 0 | 5,589 | 13,115
182,435 | 426,508 | 0 | 0 | 549,934 | 890,083
4,820,709 | 9,289 | 0 | 0 | 5,073,729 | 9,289
24,026,898 | 23,877,385 | – 965,742 | – 1,251,455 | 33,639,160 | 33,297,873
410,742 | 410,000 | – 415,882 | – 414,344 | 846,043 | 1,095,745
11,842,676 | 15,503,296 | – 23,866 | – 15,168 | 17,609,233 | 21,328,061
4,846,591 | 5,175,437 | 0 | 0 | 4,846,591 | 5,175,437
198,129 | 73,664 | – 197,818 | – 74,667 | 45,524 | 33,580
37,422 | 48,246 | – 10,613 | – 12,979 | 798,737 | 796,442
695,000 | 1,205,967 | – 313,065 | – 731,576 | 1,042,244 | 1,271,572
480 | 5,277 | 0 | 0 | 79,120 | 95,970
111,727 | 126,937 | 0 | 0 | 296,676 | 334,696
4,474,936 | 0 | 0 | 0 | 4,862,227 | 0
22,617,703 | 22,548,824 | – 961,244 | – 1,248,733 | 30,426,394 | 30,131,504
|  | Consolidated equity and non-controlling interests | 3,212,766 | 3,166,369
|  |  | Total equity and liabilities | 33,639,160 | 33,297,873

The amounts indicated for each business line have been adjusted to eliminate amounts result-ing from segment-internal transactions. Therefore, the balance of segment assets and segment equity and liabilities does not allow conclusions to be drawn with regard to the equity allocated to the respective segment.

NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION
7. Property, plant and equipment

Acquisition costs | Land and buildings | Other property, | Total
In € thousand | for own use | plant and |
|  | equipment |
At 1 January 2015 | 288,860 | 234,327 | 523,186
Currency translation | 396 | – 365 | 31
Change in basis of consolidation | 46,742 | – 1,185 | 45,557
Additions | 243 | 21,747 | 21,990
Disposals | – 940 | – 23,604 | – 24,544
Reclassifications | – 2,911 | – 1,745 | – 4,656
At 31 December 2015 | 332,390 | 229,174 | 561,564
At 1 January 2016 | 332,390 | 229,174 | 561,564
Currency translation | 272 | 376 | 648
Change in basis of consolidation | – 2,496 | – 7,439 | – 9,935
Additions | 699 | 24,323 | 25,022
Disposals | – 26,609 | – 8,432 | – 35,041
Reclassifications | – 1,139 | – 1,200 | – 2,339
Reclassifications held for sale | – 24,663 | – 13,957 | – 38,620
At 31 December 2016 | 278,454 | 222,845 | 501,299
Accumulated amortisation and impairment losses | Land and buildings | Other property, | Total
In € thousand | for own use | plant and |
|  | equipment |
At 1 January 2015 | – 101,114 | – 158,447 | – 259,561
Currency translation | – 149 | 138 | – 11
Change in basis of consolidation | 0 | 923 | 923
Additions from amortisation | – 3,745 | – 14,366 | – 18,110
Additions from impairment | – 6,203 | 0 | – 6,203
Disposals | 73 | 13,204 | 13,277
Reclassifications | 1,108 | 0 | 1,108
Reversal of impairment | 0 | 2 | 2
At 31 December 2015 | – 110,029 | – 158,547 | – 268,575
At 1 January 2016 | – 110,029 | – 158,547 | – 268,575
Currency translation | – 132 | – 328 | – 460
Change in basis of consolidation | 1,674 | 64 | 1,738
Additions from amortisation | – 10,400 | – 13,805 | – 24,206
Additions from impairment | – 305 | 0 | – 305
Disposals | 26,321 | 7,024 | 33,345
Reclassifications | 5,483 | – 9 | 5,474
Reversal of impairment | 0 | 33 | 33
Reclassifications held for sale | 6,931 | 9,947 | 16,877
At 31 December 2016 | – 80,458 | – 155,621 | – 236,080
Carrying amounts | Land and buildings | Other property, | Total
In € thousand | for own use | plant and |

|  | equipment |
At 1 January 2015 | 187,746 | 75,880 | 263,626
At 31 December 2015 | 222,361 | 70,628 | 292,989
At 31 December 2016 | 197,995 | 67,224 | 265,219

The fair values of the land and buildings used by the Group are derived from expert reports and are comprised as follows:

Fair values | Property and | Health insurance | Life insurance | Total
In € thousand | casualty insurance |  |  |
At 31 December 2015 | 174,877 | 13,876 | 143,952 | 332,705
At 31 December 2016 | 179,153 | 14,843 | 126,858 | 320,854

Other property, plant and equipment refers mainly to technical systems and operating and office equipment.

8. Investment property

Acquisition costs | Total
In € thousand |
At 1 January 2015 | 2,109,251
Currency translation | – 10,513
Change in basis of consolidation | 6,984
Additions | 21,030
Disposals | – 111,671
Reclassifications | 5,197
At 31 December 2015 | 2,020,279
At 1 January 2016 | 2,020,279
Currency translation | – 1,926
Change in basis of consolidation | – 166
Additions | 15,702
Disposals | – 15,262
Reclassifications | – 1,422
Reclassifications held for sale | – 2,432
At 31 December 2016 | 2,014,772
Accumulated amortisation and impairment losses | Total
In € thousand |
At 1 January 2015 | – 604,769
Currency translation | 4,036
Additions from amortisation | – 57,590
Additions from impairment | – 9,038
Disposals | 40,911
Reclassifications | – 1,108
Reversal of impairment | – 132
At 31 December 2015 | – 627,689
At 1 January 2016 | – 627,689
Currency translation | 842
Change in basis of consolidation | 128
Additions from amortisation | – 43,687
Additions from impairment | – 144
Disposals | 6,379
Reclassifications | – 1,683
Reclassifications held for sale | 1,078
At 31 December 2016 | – 664,776

Carrying amounts | Total
In € thousand |
At 1 January 2015 | 1,504,483
At 31 December 2015 | 1,392,590
At 31 December 2016 | 1,349,996

The fair values of the investment property are derived from expert reports.

Fair values | Property | Health | Life | Total
In € thousand | and | insurance | insurance |
| casualty insurance |  |  |
At 31 December 2015 | 383,185 | 511,614 | 1,290,594 | 2,185,392
At 31 December 2016 | 471,847 | 533,945 | 1,242,487 | 2,248,279

The increase in the fair values of investment properties primarily affected properties in Austria. Reference is made to the statements in the section “Use of discretionary decisions and esti-mates” for a description of the measurement procedures applied.

9. Intangible assets

Acquisition costs |  | Deferred | Insurance | Goodwill | Other | Total
In € thousand |  | acquisition costs | contract portfolio |  | intangible assets |
At 1 January 2015 |  | 1,232,068 | 169,340 | 572,951 | 181,295 | 2,155,654
Currency translation |  | – 4,679 | – 236 | – 3,397 | 65 | – 8,247
Change in basis of consolidation |  | – 42 | 0 | 0 | – 406 | – 448
Additions |  | 0 | – 79 | 0 | 22,320 | 22,240
Disposals |  | 0 | 2 | – 7,103 | – 6,013 | – 13,115
Reclassifications |  | 0 | 0 | 0 | – 541 | – 541
Interest capitalised |  | – 2,425 | 0 | 0 | 0 | – 2,425
Capitalisation |  | 120,984 | 0 | 0 | 0 | 120,984
Depreciation (direct) |  | – 135,117 | 0 | 0 | 0 | – 135,117
At 31 December 2015 |  | 1,210,789 | 169,026 | 562,451 | 196,720 | 2,138,985
At 1 January 2016 |  | 1,210,789 | 169,026 | 562,451 | 196,720 | 2,138,985
Currency translation |  | 263 | – 15 | – 932 | 176 | – 509
Change in basis of consolidation |  | – 1,592 | – 2 | – 13,534 | 4,079 | – 11,048
Additions |  | 0 | 0 | 0 | 21,905 | 21,905
Disposals |  | 0 | 0 | – 16,121 | – 5,337 | – 21,458
Reclassifications |  | 0 | 0 | – 38,774 | – 38 | – 38,812
Interest capitalised |  | 150 | 0 | 0 | 0 | 150
Capitalisation |  | 138,103 | 0 | 0 | 0 | 138,103
Depreciation (direct) |  | – 147,308 | 0 | 0 | 0 | – 147,308
Reclassifications held for sale |  | – 65,553 | – 55,513 | – 115,490 | – 26,011 | – 262,567
At 31 December 2016 |  | 1,134,853 | 113,496 | 377,599 | 191,493 | 1,817,441
Accumulated amortisation and impairment losses |  | Deferred | Insurance | Goodwill | Other | Total
In € thousand |  | acquisition costs | contract portfolio |  | intangible assets |
At 1 January 2015 |  |  | – 131,246 | – 120,985 | – 153,249 | – 405,480
Currency translation |  |  | 163 | 1 | – 1,850 | – 1,686
Change in basis of consolidation |  |  | 0 | 0 | 382 | 382
Additions from amortisation |  |  | – 7,858 | 0 | – 10,701 | – 18,559
Additions from impairment |  |  | 0 | – 13,081 | 0 | – 13,081
Disposals |  |  | – 2 | 874 | 1,625 | 2,497
At 31 December 2015 |  |  | – 138,943 | – 133,191 | – 163,794 | – 435,927
At 1 January 2016 |  |  | – 138,943 | – 133,191 | – 163,794 | – 435,927
Currency translation |  |  | 52 | – 19 | – 319 | – 286
Change in basis of consolidation |  |  | 2 | 12,673 | 4 | 12,679
Additions from amortisation |  |  | – 7,858 | 0 | 0 | – 7,858
Additions from impairment |  |  | – 1,873 | – 16,590 | – 11,580 | – 30,044
Disposals |  |  | 0 | 16,121 | 3,529 | 19,650
Reclassifications |  |  | 0 | 38,774 | 10 | 38,784
Reclassifications held for sale |  |  | 53,440 | 2 | 24,479 | 77,921
At 31 December 2016 |  |  | – 95,179 | – 82,230 | – 147,672 | – 325,081
Carrying amounts | Deferred | Insurance | Goodwill |  | Other | Total
In € thousand | acquisition costs | contract portfolio |  | intangible assets |
At 1 January 2015 | 1,232,068 | 38,093 | 451,966 |  | 28,046 | 1,750,174
At 31 December 2015 | 1,210,789 | 30,083 | 429,260 |  | 32,926 | 1,703,058
At 31 December 2016 | 1,134,853 | 18,317 | 295,369 |  | 43,820 | 1,492,360

The goodwill is distributed among the individual cash generating units as follows:

Goodwill by CGU | 31/12/2016 | 31/12/2015
In € thousand |  |
UNIQA Austria | 37,737 | 37,737
Albania/Kosovo/Macedonia as subgroup of the “SIGAL Group” | 20,995 | 20,697
Bosnia and Herzegovina | 1,887 | 1,887
Bulgaria | 55,812 | 55,812
Czech Republic | 7,849 | 7,848
Croatia | 0 | 16,621
Hungary | 17,260 | 16,924
Italy | 0 | 115,488
Montenegro | 81 | 81
Poland | 26,955 | 27,881
Romania | 103,753 | 104,097
Serbia | 19,072 | 19,366
Russia | 56 | 44
Slovakia | 120 | 120
Other service companies | 3,792 | 4,655
Total | 295,369 | 429,260

The other intangible assets comprise:

In € thousand | 31/12/2016 | 31/12/2015
Computer software | 26,035 | 20,495
Copyrights | 0 | 0
Licences | 97 | 180
Other intangible assets | 17,688 | 12,251
Total | 43,820 | 32,926

10. Financial assets accounted for using the equity method
The financial assets accounted for using the equity method include the shares in STRABAG SE. These represent the only essential shares that are accounted for using the equity method. The following table shows the fair value of the shares as at the reporting date.

Financial assets accounted for using the equity method | 31/12/2016 | 31/12/2015
In € thousand |  |
Current market value of associated companies listed on a public stock exchange |  |
(STRABAG SE) | 527,715 | 369,714
Financial assets accounted for using the equity method | 39,557 | 23,205

As part of the accounting using the equity method, an assessment was made up until 31 Decem-ber of the stake in STRABAG SE based on the interim financial statements at 30 September.
The following tables illustrate summary financial information concerning STRABAG SE.

Summarised statement of comprehensive income |  | STRABAG SE 1)
In € thousand | 1-9/2016 | 00.01.1900
Revenue | 8,938,457 | 9,480,722
Depreciation | – 274,493 | – 287,985
Interest income | 44,427 | 60,152
Interest expenses | – 57,735 | – 74,116
Income taxes | – 57,697 | – 38,298
Profit/(loss) for the year | 104,898 | 63,540
Other comprehensive income | – 32,468 | 21,020
Total comprehensive income | 72,430 | 84,560
Dividends received from associated companies | 10,194 | 7,841
Summarised statement of financial position |  | STRABAG SE 1)
In € thousand | 30/09/2016 | 31/12/2015
Cash and cash equivalents | 1,501,884 | 2,732,330
Other current assets | 4,401,980 | 3,712,466
Current assets | 5,903,864 | 6,444,796
Non-current assets | 4,344,896 | 4,284,072
Total assets | 10,248,760 | 10,728,868
Current financial liabilities | 189,194 | 285,994
Other current liabilities | 4,432,035 | 4,602,993
Current liabilities | 4,621,229 | 4,888,987
Non-current liabilities | 1,249,517 | 1,293,753
Other non-current liabilities | 1,307,947 | 1,225,493
Non-current liabilities | 2,557,464 | 2,519,246
Total liabilities | 7,178,693 | 7,408,233
Net assets | 3,070,067 | 3,320,635

1) | STRABAG SE Interim Report January - September 2016 as published on 11/30/2016.

All other financial assets accounted for using the equity method are negligible from the perspec-tive of the Group when considered individually and are stated in aggregate form. The financial statements of the associates most recently published have been used for the purposes of the accounting using the equity method, and have been adjusted based on any essential transactions between the relevant reporting date and 31 December 2015.
Summary of information on associated companies that are not material when considered on a stand-alone basis

In € thousand | 1-12/2016 | 1-12/2015
Group’s share of profit from continuing operations | 6,729 | 3,259
Group’s share of loss from continuing operations | 0 | – 12,386
Group’s share of other comprehensive income | 788 | – 1,954
Group’s share of total comprehensive income | 7,517 | – 11,081

Reconciliation of summarised financial |  | STRABAG SE |  | Associated companies not material on
information |  |  |  | stand-alone basis 2)
In € thousand | 2016 1) 3) |  | 2015 3) |  | 2016 | 2015
Net assets at 1 January | 3,029,356 |  | 2,884,712 |  | 164,459 | 258,750
Change in basis of consolidation | 0 |  | 0 |  | – 64,664 | – 32,215
Dividends | – 66,690 |  | – 51,300 |  | – 500 | – 710
Profit/(loss) after taxes | 202,686 |  | 174,000 |  | 10,474 | – 52,950
Other comprehensive income | – 52,303 |  | 21,944 |  | 1,965 | – 8,416
Net assets at 31 December | 3,113,049 |  | 3,029,356 |  | 111,734 | 164,459
Shares in associated companies | 14.26 | % | 13.76 | % | Various investment amounts
Carrying amount | 475,831 |  | 463,039 |  | 45,474 | 51,127

1) | Estimate for 31 Dec. 2016 based on the interim report as at 30 Sept. 2016 on STRABAG SE available as at the reporting date

2) | Values in accordance with the last financial statements and/or interim reports available as at the reporting date

3) | The carrying amounts are calculated based on the shares in circulation. 2016: 15.29%, 2015: 15.29%

Unrecognised losses from associated companies |  |
In € thousand | 1-12/2016 | 1-12/2015
Unrecognised losses in the reporting period | 1,682 | 2,291
Cumulative unrecognised losses | 10,698 | 9,016

11. Assets and liabilities in disposal groups held for sale
In this situation, sales related to the measures taken were concluded in conjunction with the UNIQA 2.0 strategy programme.
Based on the contract of assignment dated 28 July 2015, the approximately 29 per cent stake in Medial Beteiligungs-Gesellschaft mbH (Vienna) (Medial) is recognised below.
The Group Management Board decided on 2 December 2016 to sell the 99.7 per cent holding in the Group company UNIQA Assicurazioni S.p.A. (Italian Group). Assets and liabilities are recorded under assets and liabilities in disposal groups that are classified as held for sale.
Reference is made here to the statements under note 2.4.
The following table shows the assets and liabilities in disposal groups held for sale:

In € thousand | Medial | Italian Group | 31/12/2016 | 31/12/2015
Assets |  |  |  |
Property, plant and equipment | 0 | 21,743 | 21,743 | 0
Investment property | 0 | 1,354 | 1,354 | 0
Intangible assets | 0 | 112,003 | 112,003 | 0
Financial assets accounted for using the equity method | 9,289 | 0 | 9,289 | 9,289
Investments | 0 | 4,156,674 | 4,156,674 | 0
Unit-linked and index-linked life insurance investments | 0 | 354,215 | 354,215 | 0
Reinsurers’ share of technical provisions | 0 | 206,860 | 206,860 | 0
Receivables, including insurance receivables | 0 | 163,135 | 163,135 | 0
Income tax receivables | 0 | 16,719 | 16,719 | 0
Deferred tax assets | 0 | 19,039 | 19,039 | 0
Cash and cash equivalents | 0 | 12,697 | 12,697 | 0
Assets in disposal groups held for sale | 9,289 | 5,064,439 | 5,073,729 | 9,289
In € thousand | Medial | Italian Group | 31/12/2016 | 31/12/2015
Liabilities |  |  |  |
Technical provisions | 0 | 4,213,530 | 4,213,530 | 0
Technical provisions for unit-linked and index-linked life |  |  |  |
insurance | 0 | 354,215 | 354,215 | 0
Other provisions | 0 | 10,999 | 10,999 | 0
Liabilities and other items classified as liabilities | 0 | 231,068 | 231,068 | 0
Income tax liabilities | 0 | 7,641 | 7,641 | 0
Deferred tax liabilities | 0 | 44,775 | 44,775 | 0
Liabilities in disposal groups held for sale | 0 | 4,862,227 | 4,862,227 | 0

12. Financial instruments plus valuation hierarchies for fair value measurements
Investments are broken down into the following classes and categories of financial instruments:

At 31 December 2016 | Variable-income | Fixed-income | Loans and other Derivative financial Investments under | Total
| securities | securities | investments | instruments | investment |
In € thousand |  |  |  |  | contracts |
Financial assets recognised at fair value through profit or loss | 44,264 | 231,009 | 0 | 135,122 | 59,924 | 470,318
Available-for-sale financial assets | 671,692 | 15,818,859 | 0 | 0 | 0 | 16,490,551
Loans and receivables | 0 | 462,527 | 730,076 | 0 | 0 | 1,192,603
Total | 715,957 | 16,512,394 | 730,076 | 135,122 | 59,924 | 18,153,472
of which fair value option | 44,264 | 231,009 | 0 | 0 | 0 | 275,273
At 31 December 2015 | Variable-income | Fixed-income | Loans and other Derivative financial Investments under | Total
| securities | securities | investments | instruments | investment |
In € thousand |  |  |  |  | contracts |
Financial assets recognised at fair value through profit or loss | 76,892 | 354,607 | 0 | 126,545 | 58,452 | 616,497
Available-for-sale financial assets | 659,499 | 18,495,071 | 0 | 0 | 0 | 19,154,570
Loans and receivables | 0 | 510,092 | 1,111,317 | 0 | 0 | 1,621,409
Total | 736,391 | 19,359,770 | 1,111,317 | 126,545 | 58,452 | 21,392,476
of which fair value option | 76,892 | 354,607 | 0 | 0 | 0 | 431,500

Valuation hierarchy
Assets and liabilities measured at fair value

At 31 December 2016 | Level 1 | Level 2 | Level 3 | Total
In € thousand |  |  |  |
Available-for-sale financial assets |  |  |  |
Variable-income securities | 394,259 | 6,761 | 270,673 | 671,692
Fixed-income securities | 11,501,701 | 3,890,571 | 426,587 | 15,818,859
Total | 11,895,959 | 3,897,332 | 697,260 | 16,490,551
Financial assets recognised at fair value |  |  |  |
through profit or loss |  |  |  |
Variable-income securities | 0 | 25,058 | 19,206 | 44,264
Fixed-income securities | 92,683 | 77,540 | 60,786 | 231,009
Derivative financial instruments | 0 | 73,728 | 61,393 | 135,122
Investments from investment contracts | 58,318 | 1,606 | 0 | 59,924
Total | 151,001 | 177,932 | 141,385 | 470,318
Assets in disposal groups held for sale | 3,763,960 | 357,583 | 32,212 | 4,153,754
At 31 December 2016 | Level 1 | Level 2 | Level 3 | Total
In € thousand |  |  |  |
Financial liabilities |  |  |  |
Derivative financial instruments | 0 | 30,555 | 0 | 30,555
Total | 0 | 30,555 | 0 | 30,555
Fair values of assets and liabilities measured at amortised cost |  |
At 31 December 2016 | Level 1 | Level 2 | Level 3 | Total
In € thousand |  |  |  |
Investment property | 0 | 0 | 2,248,279 | 2,248,279
Loans and receivables |  |  |  |
Loans and other investments | 0 | 0 | 40,033 | 40,033
Fixed-income securities | 51,499 | 340,994 | 94,785 | 487,279
Total | 51,499 | 340,994 | 134,818 | 527,312
Assets in disposal groups held for sale | 0 | 0 | 5,852 | 5,852
At 31 December 2016 | Level 1 | Level 2 | Level 3 | Total
In € thousand |  |  |  |
Financial liabilities |  |  |  |
Liabilities from loans | 0 | 0 | 14,968 | 14,968
Total | 0 | 0 | 14,968 | 14,968
Subordinated liabilities | 927,240 | 0 | 0 | 927,240

Assets and liabilities measured at fair value as at the previous year’s reporting date

At 31 December 2015 | Level 1 | Level 2 | Level 3 | Total
In € thousand |  |  |  |
Available-for-sale financial assets |  |  |  |
Variable-income securities | 282,976 | 175,315 | 201,207 | 659,499
Fixed-income securities | 14,608,314 | 3,886,758 | 0 | 18,495,071
Total | 14,891,290 | 4,062,073 | 201,207 | 19,154,570
Financial assets recognised at fair value |  |  |  |
through profit or loss |  |  |  |
Variable-income securities | 6,107 | 70,786 | 0 | 76,892
Fixed-income securities | 152,355 | 202,252 | 0 | 354,607
Derivative financial instruments | 0 | 126,545 | 0 | 126,545
Investments from investment contracts | 42,116 | 16,336 | 0 | 58,452
Total | 200,578 | 415,919 | 0 | 616,497
At 31 December 2015 | Level 1 | Level 2 | Level 3 | Total
In € thousand |  |  |  |
Financial liabilities |  |  |  |
Derivative financial instruments | 0 | 17,922 | 0 | 17,922
Total | 0 | 17,922 | 0 | 17,922

Fair values of assets and liabilities measured at amortised cost as at the previous year’s reporting date

At 31 December 2015 | Level 1 | Level 2 | Level 3 | Total
In € thousand |  |  |  |
Investment property | 0 | 0 | 2,185,392 | 2,185,392
Loans and receivables |  |  |  |
Loans and other investments | 0 | 0 | 59,136 | 59,136
Fixed-income securities | 120,152 | 414,316 | 0 | 534,468
Total | 120,152 | 414,316 | 59,136 | 593,604
At 31 December 2015 | Level 1 | Level 2 | Level 3 | Total
In € thousand |  |  |  |
Financial liabilities |  |  |  |
Liabilities from loans | 0 | 0 | 15,658 | 15,658
Total | 0 | 0 | 15,658 | 15,658
Subordinated liabilities | 903,826 | 255,894 | 0 | 1,159,720

Transfers between levels 1 and 2
During the reporting period, transfers from Level 1 to Level 2 were made in the amount of €1,346,667 thousand and from Level 2 to Level 1 in the amount of €1,074,490 thousand. These are attributable primarily to changes in trading frequency and trading activity.
Level 3 financial instruments
In accordance with the hierarchy set forth in IFRS 13, Level 3 primarily includes fixed-income securities and other equity investments that come under the category “Available for sale”. The other equity investments include the shares in Raiffeisen Zentralbank Österreich Aktiengesell-schaft (RZB shares) as their most crucial individual item.
The following table shows the changes to the fair values of financial instruments whose val-uation procedures are not based on observable input factors.

In € thousand | RZB shares | Fixed-income | Other | Total
|  | securities |  |
At 1 January 2016 | 135,848 | 0 | 65,359 | 201,207
Transfers into Level 3 | 0 | 347,585 | 221,544 | 569,129
Gains and losses recognised in |  |  |  |
the income statement | 0 | 0 | – 928 | – 928
Gains and losses recognised in |  |  |  |
other comprehensive income | – 9,777 | – 1,242 | – 2,208 | – 13,227
Purchases | 0 | 80,244 | 9,703 | 89,947
Sales/redemptions | 0 | 0 | – 3,478 | – 3,478
Reclassification as assets in disposal groups held |  |  |  |
for sale | 0 | 0 | – 4,005 | – 4,005
At 31 December 2016 | 126,071 | 426,587 | 285,987 | 838,645

The transfers between Levels 2 and 3 were completed as a result of changes in the observability of the relevant input factors.
Sensitivities
The sensitivity analysis for the RZB shares was determined in the course of a valuation report. It relates to a change in the discount interest rate and the increase or decrease in the growth rate. An increase in the discount rate by 100 basis points results in a 15 per cent reduction in the value of the RZB shares. A reduction in the discount rate by 100 basis points results in a 12 per cent reduction in the value. An adjustment to the growth rate by 100 basis points results in virtually no adjustment in value.
The sensitivity analyses for the RZB shares are shown below.

Sensitivity analysis for RZB |  | 1-12/2016 |  | 1-12/2015
In € thousand | Upside | Downside | Upside | Downside
Through equity | 18,693 | – 14,444 | 19,886 | – 15,813
Effect of changes in the discount rate (+/– 1 |  |  |  |
percentage point) | 18,693 | – 14,444 | 19,886 | – 15,813
Through equity | 0 | 0 | 455 | – 557
Effect of changes in the growth rate (+/– 1 |  |  |  |
percentage point) | 0 | 0 | 455 | – 557

For the most important fixed-income securities, an increase in the discount rate of 100 basis points results in a 2.0 per cent reduction in the value. A reduction in the discount rate by 100 basis points results in a 2.8 per cent increase in value.
Fixed-income securities
On 1 July 2008 securities previously available for sale were reclassified according to IAS 39/50E as other loans. Overall fixed-income securities with a carrying amount of €2,129,552 thousand were reclassified. The corresponding amount from the measurement of the financial instru-ments available-for-sale at 30 June 2008 was €–98,208 thousand.

Reclassified bonds | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008
In € thousand |  |  |  |  |  |  |  |  |
Carrying amount at 31 December | 462,527 | 510,092 | 715,656 | 788,061 | 906,435 | 1,089,093 | 1,379,806 | 1,796,941 | 2,102,704
Fair value at 31 December | 487,279 | 534,468 | 759,872 | 812,455 | 928,162 | 981,394 | 1,345,580 | 1,732,644 | 1,889,108
Change in fair value | 376 | – 19,839 | 19,822 | 129,426 | 129,426 | – 73,987 | 30,586 | 149,299 | – 213,596
Redemption income/expense | – 1,047 | – 697 | 2,391 | 348 | 348 | 332 | 473 | 5,917 | – 61
Impairment | 0 | 0 | – 3,539 | 0 | 0 | – 25 | – 8,043 | 0 | 0

Loans and other investments

| Carrying amounts
In € thousand | 31/12/2016 31/12/2015
Loans |  |
Loans to affiliated unconsolidated companies | 1,800 | 1,600
Loans to companies that are accounted for using the equity method | 0 | 8,000
Mortgage loans | 22,189 | 27,962
Loans and advance payments on policies | 8,359 | 12,674
Other loans | 7,685 | 8,901
Total | 40,033 | 59,136
Other investments |  |
Bank deposits | 576,340 | 935,590
Deposits retained on assumed reinsurance | 113,703 | 116,591
Total | 690,043 | 1,052,181
Total | 730,076 | 1,111,317
Fair values essentially correlate with book values. |  |
Impairment loans | 2016 | 2015
In € thousand |  |
At 1 January | – 33,843 | – 35,395
Allocation | – 697 | – 1,253
Use | 7,919 | 1,030
Reversal | 815 | 1,807
Currency translation | – 26 | – 31
At 31 December | – 25,832 | – 33,843

Contractual maturities

Fair values | Fixed-income securities | Loans |
In € thousand | 31/12/2016 | 31/12/2015 | 31/12/2016 | 31/12/2015
Up to 1 year | 331,391 | 276,813 | 5,369 | 12,150
More than 1 year and up to 5 years | 89,577 | 162,489 | 9,892 | 13,894
More than 5 years up to 10 years | 51,223 | 38,532 | 13,317 | 14,806
More than 10 years | 15,087 | 56,634 | 11,456 | 18,285
Total | 487,279 | 534,468 | 40,033 | 59,136

13. Receivables including insurance receivables

In € thousand | 31/12/2016 | 31/12/2015
Reinsurance receivables |  |
Receivables from reinsurance business | 38,024 | 51,753
| 38,024 | 51,753
Other receivables |  |
Insurance receivables |  |
from policyholders | 210,396 | 244,639
from insurance intermediaries | 23,066 | 56,785
from insurance companies | 9,747 | 13,836
| 243,209 | 315,260
Additional receivables |  |
Interest and rent | 191,850 | 238,024
Other tax refund claims | 3,528 | 3,653
Receivables from employees | 1,049 | 1,434
Remaining receivables | 124,964 | 269,535
| 321,391 | 512,646
Total other receivables | 564,601 | 827,906
Subtotal | 602,624 | 879,659
of which receivables with a remaining maturity of |  |
up to 1 year | 596,312 | 868,879
more than 1 year | 6,313 | 10,780
| 602,624 | 879,659
of which receivables with values not yet impaired |  |
up to 3 months overdue | 12,716 | 14,771
more than 3 months overdue | 9,727 | 4,626
Other assets | 36,071 | 31,818
Total receivables including insurance receivables | 638,695 | 911,477

Fair values essentially correlate with book values.

Impairments | Reinsurance receivables | Insurance receivables 1) | Additional receivables
In € thousand | 2016 | 2015 | 2016 | 2015 | 2016 | 2015
At 1 January | – 116 | – 19 | – 31,086 | – 31,689 | – 14,672 | – 14,381
Allocation | – 137 | – 97 | – 6,882 | – 10,281 | – 2,355 | – 1,546
Use | 0 | 0 | 3,295 | 2,368 | 324 | 359
Reversal | 11 | 0 | 8,109 | 8,453 | 183 | 664
Currency translation | – 1 | 0 | 57 | 62 | 247 | 232
Reclassifications held for sale | 0 | 0 | 5,975 | 0 | 0 | 0
At 31 December | – 243 | – 116 | – 20,532 | – 31,086 | – 16,273 | – 14,672

1) | Impairment losses related to policyholders are shown under the cancellation provision.

There are no essential overdue liabilities that have not been impaired.

14. Income tax receivables

In € thousand | 31/12/2016 | 31/12/2015
Income tax receivables | 65,854 | 87,270
of which receivables with a remaining maturity of |  |
up to 1 year | 65,710 | 87,103
more than 1 year | 144 | 167

15. Deferred tax

Maturity (gross) | 31/12/2016 | 31/12/2016 | 31/12/2015 | 31/12/2015
In € thousand | Up to | More | Up to | More
| 1 year | than 1 year | 1 year | than 1 year
Deferred tax assets | 15,541 | 174,738 | 26,899 | 165,618
Deferred tax liabilities | – 89,089 | – 392,276 | – 104,526 | – 409,572

The differences between the tax carrying amounts and the carrying amounts in the IFRS con-solidated statement of financial position have the following effect:

In € thousand | 31/12/2016 | 31/12/2015
Deferred tax assets (gross) |  |
Technical items | 49,174 | 58,007
Investments | 48,266 | 24,531
Actuarial gains and losses on defined benefit obligations | 76,336 | 70,426
Loss carried forward | 9,716 | 11,664
Other items | 6,786 | 27,890
Total | 190,278 | 192,517
Deferred tax liabilities (gross) |  |
Technical items | – 257,393 | – 225,671
Investments | – 167,668 | – 198,165
Actuarial gains and losses on defined benefit obligations | 0 | – 18
Other items | – 56,304 | – 90,244
Total | – 481,365 | – 514,098
Net deferred tax | – 291,087 | – 321,581

The deferred tax assets and deferred tax liabilities stated in the consolidated statement of finan-cial position performed as follows:

In € thousand | Net deferred tax
At 1 January 2015 | – 343,824
Changes recognised in profit/(loss) | – 6,674
Changes recognised in other comprehensive income | 29,540
Changes due to acquisitions | 355
Foreign exchange differences | – 977
At 31 December 2015 | – 321,581
At 1 January 2016 | – 321,581
Changes recognised in profit/(loss) | 27,977
Changes recognised in other comprehensive income | – 23,203
Changes due to acquisitions | 37
Reclassifications held for sale | 25,736
Foreign exchange differences | – 53
At 31 December 2016 | – 291,087

Changes recorded in other comprehensive income essentially relate to measurements of finan-cial instruments available-for-sale and revaluation of defined benefit obligations.
The following deferred tax assets were not recognised as a realisation of these in the near fu-ture cannot be assumed, taking maturities into account.

In € thousand | 31/12/2016 | 31/12/2015
Tax assets from loss carryforwards | 23,905 | 24,093

These tax assets are forfeited as follows:

In € thousand | 31/12/2016 | 31/12/2015
Up to 1 year | 662 | 0
2 to 5 years | 23,681 | 38,143
More than 5 years | 152,937 | 172,752
Total | 177,280 | 210,895

16. Cash and cash equivalents
The cash and cash equivalents in the reporting year amounted to €549,934 thousand (2015: €890,083 thousand) and these correspond with the fund of liquid assets pursuant to IAS 7. The cash and cash equivalents have a maximum commitment period of three months as at the re-porting date.
17. Equity
Subscribed capital and capital reserves
The share capital is comprised of 309,000,000 no-par bearer shares as in the previous year. Capital reserves include unallocated capital reserves, which primarily result from share premiums.
Items recognised in other comprehensive income
Unrealised gains and losses from the revaluation of available-for-sale financial instruments impacted the equity in the item “Other comprehensive income”, taking into account deferred profit participation (for life insurance) and deferred tax.
Actuarial gains and losses from pension and termination benefit provisions were posted as “Revaluation from defined benefit obligations” after deducting deferred policyholder profit participation and deferred tax.
Deferred tax

Change in the tax amounts included in the equity without affecting income | 31/12/2016 | 31/12/2015
In € thousand |  |
Deferred tax | – 23,203 | 29,540
Total | – 23,203 | 29,540

Capital requirement
Capital requirements are influenced by business performance resulting from organic growth and by acquisitions. In the context of Group management, the appropriate coverage of the solvency requirement in accordance with Solvency II on a consolidated basis is constantly monitored.
Quantitative and qualitative information related to capital management according to Sol-vency II are included in the Solvency and Financial Condition Report (SFCR). With respect to preparing the reporting requirements in accordance with Solvency II, reference is made here to the statements under note 7.2.3.
Authorisations of the Management Board
In accordance with the resolution of the Annual General Meeting dated 26 May 2014, the Man-agement Board is authorised to increase the Company’s share capital up to and including 30 June 2019 with the approval of the Supervisory Board by a total of up to €81,000,000 by issu-ing up to 81,000,000 no-par value bearer or registered shares in exchange for payment in cash or in kind, one time or several times.
In accordance with the resolution of the Annual General Meeting dated 26 May 2015, the Management Board was authorised, with the approval of the Supervisory Board, to acquire treasury shares for a period of 30 months from 28 November 2015. The newly acquired shares may reach a maximum of 10 per cent of the share capital together with the treasury shares that already exist. A decision taken at the Annual General Meeting on 30 May 2016 amended this authorisation to the effect that treasury shares may be acquired at a nominal value of at least €1.00 (previously €7.00) and no more than €15.00 (previously €20.00) per no-par value share.
The treasury shares can be broken down as follows:

| 31/12/2016 | 31/12/2015
UNIQA Insurance Group AG |  |
Cost in € thousand | 10,857 | 10,857
Number of shares | 819,650 | 819,650
Share of subscribed capital in % | 0.27 | 0.27
UNIQA Österreich Versicherungen AG |  |
Cost in € thousand | 5,774 |
Number of shares | 1,215,089 |
Share of subscribed capital in % | 0.39 |

The treasury shares held via UNIQA Österreich Versicherungen AG stem from the merger of BL Syndikat Beteiligungs Gesellschaft m.b.H., the transferring company, with UNIQA Insurance Group AG, the acquiring company. These shares held are not to be counted towards the 10 per cent limit.
In the figure for “Earnings per share”, the consolidated profit/(loss) is set against the aver-age number of ordinary shares in circulation.

Earnings per share | 1-12/2016 | 1-12/2015
Consolidated profit in € thousand | 148,063 | 337,160
Treasury shares at 31 Dec. | 2,034,739 | 819,650
Average number of shares in circulation | 308,129,721 | 308,180,350
Earnings per share in € 1) | 0.48 | 1.09
Dividend per share in € | 0.49 2) | 0.47
Dividend payment in € thousand | 150,413 2) | 144,845

1) Calculated based on consolidated profit/(loss) for the year
2) For the financial year, subject to resolution being passed by the Annual General Meeting.
The diluted earnings per share is equal to the basic earnings per share in the financial year and in the previous year.

18. Non-controlling interests

In € thousand | 31/12/2016 | 31/12/2015
In valuation of financial instruments available for sale | 3,199 | 1,994
In actuarial gains and losses on defined benefit plans | – 768 | – 705
In retained profit | 6,273 | 5,829
In other equity | 17,809 | 14,734
Total | 26,513 | 21,853

19. Subordinated liabilities

Carrying amounts | 31/12/2016 | 31/12/2015
In € thousand |  |
Supplementary capital | 846,043 | 1,095,745
Fair values | 31/12/2016 | 31/12/2015
In € thousand |  |
Supplementary capital | 927,240 | 1,159,720

UNIQA Insurance Group AG has cancelled the bond issued in 2006 with a total nominal amount of €150 million as well as the bond issued in 2007 with a total nominal amount of €100 million effective 30. December 2016, and therefore at the first possible cancellation date in accordance with the bond terms and conditions. The interest rate for the bond issued in 2006 until Decem-ber 2016 was 5.079 per cent, and the interest rate for the bond issued in 2007 until December 2016 was 5.342 per cent.
In July 2013, UNIQA Insurance Group AG successfully placed a supplementary capital bond to the value of €350 million with institutional investors in Europe. The bond has a maturity period of 30 years and may only be cancelled after 10 years. The coupon amounts to 6.875 per cent per annum during the first 10 years, after which variable interest applies. The supplementary capital bond meets the requirements for equity netting as Tier 2 capital under the Solvency II regime. The issue was also aimed at replacing older supplementary capital bonds from Austrian insurance groups and at bolstering UNIQA’s capital resources and capital struc-ture in preparation for Solvency II and optimising these over the long term. The supplementary capital bond has been listed on the Luxembourg Stock Exchange since the end of July 2013. The issue price was set at 100 per cent.
In July 2015, UNIQA Insurance Group AG successfully placed a subordinated capital bond (Tier 2) to the value of €500 million with institutional investors in Europe. The bond is eligible for netting as Tier 2 capital under Solvency II. The bond is scheduled for repayment after a period of 31 years and subject to certain conditions, and can only be cancelled by UNIQA after 11 years have elapsed and under certain conditions. The coupon amounts to 6.00 per cent per annum during the first 11 years, after which variable interest applies. The bond has been listed on the Vienna Stock Exchange since July 2015. The issue price was set at 100 per cent.

20. Reinsurers’ share of technical provisions

In € thousand | 31/12/2016 | 31/12/2015
Unearned premiums | 23,302 | 21,962
Property and casualty insurance | 23,021 | 21,883
Health insurance | 281 | 79
Insurance provision | 142,563 | 357,577
Property and casualty insurance | 13 | 14
Health insurance | 995 | 794
Life insurance | 141,556 | 356,769
Provision for unsettled claims | 156,598 | 167,874
Property and casualty insurance | 151,227 | 151,645
Health insurance | 582 | 22
Life insurance | 4,789 | 16,206
Other technical provisions | 1,980 | 1,553
Total | 324,443 | 548,966

21. Unearned premiums

In € thousand | 31/12/2016 | 31/12/2015
Property and casualty insurance |  |
Gross | 541,701 | 616,780
Reinsurers’ share | – 23,021 | – 21,883
| 518,681 | 594,897
Health insurance |  |
Gross | 7,780 | 19,077
Reinsurers’ share | – 281 | – 79
| 7,499 | 18,998
Total |  |
Gross | 549,482 | 635,857
Reinsurers’ share | – 23,302 | – 21,962
Total | 526,180 | 613,895

22. Insurance provision

In € thousand | 31/12/2016 | 31/12/2015
Property and casualty insurance |  |
Gross | 12,273 | 12,344
Reinsurers’ share | – 13 | – 14
| 12,260 | 12,330
Health insurance |  |
Gross | 2,660,066 | 2,561,667
Reinsurers’ share | – 995 | – 794
| 2,659,072 | 2,560,873
Life insurance |  |
Gross | 10,774,952 | 14,289,078
Reinsurers’ share | – 141,556 | – 356,769
| 10,633,396 | 13,932,309
Total |  |
Gross | 13,447,291 | 16,863,089
Reinsurers’ share | – 142,563 | – 357,577
Total | 13,304,728 | 16,505,512

The interest rates used as an accounting basis were as follows:

For | Health insurance | Life insurance
In per cent | acc. to SFAS 60 | acc. to SFAS 120
2016 |  |
For insurance provision | 1.50 – 5.50 | 0.00 – 4.00
For deferred acquisition costs | 1.50 – 5.50 | 2.50 – 3.12
2015 |  |
For insurance provision | 2.25 – 5.50 | 0.00 – 4.00
For deferred acquisition costs | 2.25 – 5.50 | 3.33 – 3.56

23. Provisions for unsettled claims

In € thousand | 31/12/2016 | 31/12/2015
Property and casualty insurance |  |
Gross | 2,287,500 | 2,371,658
Reinsurers’ share | – 151,227 | – 151,645
| 2,136,273 | 2,220,013
Health insurance |  |
Gross | 158,203 | 157,917
Reinsurers’ share | – 582 | – 22
| 157,622 | 157,895
Life insurance |  |
Gross | 139,844 | 193,741
Reinsurers’ share | – 4,789 | – 16,206
| 135,055 | 177,535
Total |  |
Gross | 2,585,547 | 2,723,316
Reinsurers’ share | – 156,598 | – 167,874
Total | 2,428,950 | 2,555,443

The provisions for unsettled claims developed in the property and casualty insurance as follows:

In € thousand | 31/12/2016 | 31/12/2015
Provisions for unsettled claims at 1 January |  |
Gross | 2,371,658 | 2,240,465
Reinsurers’ share | – 151,645 | – 137,605
Net | 2,220,013 | 2,102,860
Plus (net) claims expenditures |  |
Current year claims | 1,687,286 | 1,376,992
Prior-year claims | – 37,638 | 10,474
Total | 1,649,649 | 1,387,466
Less (net) claims paid |  |
Current year claims | – 828,423 | – 650,301
Prior-year claims | – 700,078 | – 619,931
Total | – 1,528,501 | – 1,270,232
Currency translation | – 6,764 | 723
Other changes | 391 | – 803
Reclassifications held for sale | – 198,515 |
Claim provision at 31 December |  |
Gross | 2,287,500 | 2,371,658
Reinsurers’ share | – 151,227 | – 151,645
Net | 2,136,273 | 2,220,013

Claims payments | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | Total
In € thousand |  |  |  |  |  |  |  |  |  |  |  |
Financial year | 568,864 | 596,020 | 680,427 | 751,599 | 773,996 | 714,267 | 778,329 | 798,573 | 729,222 | 734,691 | 746,846 |
1 year later | 853,412 | 910,954 | 1,020,882 | 1,130,543 | 1,138,253 | 1,068,406 | 1,142,524 | 1,174,639 | 1,106,066 | 1,106,222 |  |
2 years later | 929,047 | 988,825 | 1,108,613 | 1,228,232 | 1,229,475 | 1,177,160 | 1,255,972 | 1,285,030 | 1,204,327 |  |  |
3 years later | 965,674 | 1,029,929 | 1,152,195 | 1,286,633 | 1,276,504 | 1,225,202 | 1,308,792 | 1,334,305 |  |  |  |
4 years later | 987,814 | 1,061,900 | 1,178,204 | 1,311,375 | 1,300,643 | 1,251,970 | 1,339,606 |  |  |  |  |

5 years later | 1,000,086 | 1,078,782 | 1,197,413 | 1,327,499 | 1,318,705 | 1,266,660 |  |  |  |  |  |
6 years later | 1,010,030 | 1,090,094 | 1,208,719 | 1,341,509 | 1,329,655 |  |  |  |  |  |  |
7 years later | 1,019,621 | 1,098,971 | 1,219,432 | 1,350,716 |  |  |  |  |  |  |  |
8 years later | 1,025,399 | 1,107,299 | 1,228,579 |  |  |  |  |  |  |  |  |
9 years later | 1,033,766 | 1,109,434 |  |  |  |  |  |  |  |  |  |
10 years later | 1,038,336 |  |  |  |  |  |  |  |  |  |  |
Cumulated payments and | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 |
provision for unsettled claims |  |  |  |  |  |  |  |  |  |  |  |
In € thousand |  |  |  |  |  |  |  |  |  |  |  |
Financial year | 1,075,554 | 1,157,006 | 1,259,054 | 1,392,902 | 1,401,783 | 1,337,566 | 1,444,917 | 1,489,270 | 1,475,068 | 1,476,130 | 1,515,928 |
1 year later | 1,093,506 | 1,142,314 | 1,259,435 | 1,405,975 | 1,395,983 | 1,348,006 | 1,436,610 | 1,472,322 | 1,457,929 | 1,449,504 |  |
2 years later | 1,076,415 | 1,147,451 | 1,272,176 | 1,410,426 | 1,404,598 | 1,350,674 | 1,449,431 | 1,495,723 | 1,437,879 |  |  |
3 years later | 1,077,562 | 1,146,234 | 1,271,441 | 1,407,144 | 1,392,071 | 1,353,309 | 1,454,301 | 1,489,480 |  |  |  |
4 years later | 1,074,674 | 1,151,828 | 1,269,188 | 1,401,274 | 1,394,923 | 1,353,437 | 1,447,394 |  |  |  |  |
5 years later | 1,073,127 | 1,160,358 | 1,266,219 | 1,402,704 | 1,401,018 | 1,351,386 |  |  |  |  |  |
6 years later | 1,068,320 | 1,160,625 | 1,272,535 | 1,405,034 | 1,399,677 |  |  |  |  |  |  |
7 years later | 1,069,456 | 1,162,715 | 1,276,077 | 1,411,355 |  |  |  |  |  |  |  |
8 years later | 1,071,713 | 1,159,032 | 1,282,654 |  |  |  |  |  |  |  |  |
9 years later | 1,072,940 | 1,155,644 |  |  |  |  |  |  |  |  |  |
10 years later | 1,075,758 |  |  |  |  |  |  |  |  |  |  |
Settlement gains/losses | – 2,818 | 3,388 | – 6,577 | – 6,321 | 1,341 | 2,051 | 6,907 | 6,243 | 20,049 | 26,626 | - | 50,889
Settlement gains/losses before |  |  |  |  |  |  |  |  |  |  |  |
2005 |  |  |  |  |  |  |  |  |  |  |  | – 5,561
Total settlement gains/losses |  |  |  |  |  |  |  |  |  |  |  | 45,328
Provision for unsettled claims | 37,422 | 46,211 | 54,075 | 60,639 | 70,022 | 84,726 | 107,788 | 155,175 | 233,552 | 343,282 | 769,081 | 1,961,972
Provision for unsettled claims for |  |  |  |  |  |  |  |  |  |  |  |
accident years before 2005 |  |  |  |  |  |  |  |  |  |  |  | 240,203
Plus other reserve components |  |  |  |  |  |  |  |  |  |  |  |
(internal claims regulation costs, |  |  |  |  |  |  |  |  |  |  |  |
etc.) |  |  |  |  |  |  |  |  |  |  |  | 85,325
Provisions for unsettled claims |  |  |  |  |  |  |  |  |  |  |  |
(gross) at 31. December 2016 |  |  |  |  |  |  |  |  |  |  |  | 2,287,500

24. Provision for premium refunds
Provision for non-profit related premium refunds:

Gross | 31/12/2016 | 31/12/2015
In € thousand |  |
At 1 January | 43,483 | 49,743
Additions | 7,759 | 11,056
Disposals | – 9,854 | – 17,313
Foreign exchange differences | 33 | – 2
At 31 December | 41,422 | 43,483

Provision for profit-related premium refunds and/or policyholder profit participation and latent profit participation:

Gross | 31/12/2016 | 31/12/2015
In € thousand |  |
Provision for profit-related premium refunds and/or policyholder profit |  |
participation |  |
At 1 January | 112,096 | 188,481
Additions | 48,229 | 3,421
Disposals | – 19,619 | – 61,709
Portfolio changes | – 13,716 | – 18,130
Foreign exchange differences | 529 | 32
At 31 December | 127,518 | 112,096
Deferred profit participation |  |
At 1 January | 905,019 | 952,801
Fluctuation in value, available-for-sale securities | 152,924 | – 86,990
Revaluations of defined benefit obligations | – 1,127 | – 7,062
Revaluations through profit or loss | – 15,330 | 46,271
Reclassifications held for sale | – 203,967 | 0
At 31 December | 837,520 | 905,019
Total | 965,038 | 1,017,115

25. Technical provisions

Gross | Unearned | Insurance | Provision for | Provision for non- Provision for profit- | Other technical | Total
In € thousand | premiums | provision | unsettled claims | profit related | related premium | provisions |
|  |  |  | premium refunds | refunds and/or |  |
|  |  |  |  | policyholder profit |  |
|  |  |  |  | participation |  |
Property and casualty insurance |  |  |  |  |  |  |
At 1 January 2016 | 616,780 | 12,344 | 2,371,658 | 27,183 | 1,155 | 15,761 | 3,044,881
Foreign exchange differences | – 4,580 | 219 | – 8,232 | 22 | 6 | – 5 | – 12,569
Portfolio changes | – 267 |  | – 114 |  |  |  | – 382
Additions |  | – 172 |  | 195 | 246 | 1,518 | 1,787
Disposals |  | – 117 |  | – 584 | – 9 | – 2,178 | – 2,889
Premiums written | 2,027,046 |  |  |  |  |  | 2,027,046
Premiums earned | – 1,998,097 |  |  |  |  |  | – 1,998,097
Claims reporting year |  |  | 1,749,254 |  |  |  | 1,749,254
Claims payments reporting year |  |  | – 844,986 |  |  |  | – 844,986
Change in claims previous years |  |  | – 41,929 |  |  |  | – 41,929
Claims payments previous years |  |  | – 736,593 |  |  |  | – 736,593
Reclassifications held for sale | – 99,180 |  | – 201,558 |  |  |  | – 300,738
At 31 December 2016 | 541,701 | 12,273 | 2,287,500 | 26,815 | 1,399 | 15,096 | 2,884,784
Health insurance |  |  |  |  |  |  |
At 1 January 2016 | 19,077 | 2,561,667 | 157,917 | 12,811 | 27,218 | 1,212 | 2,779,902
Foreign exchange differences | – 56 | 66 | – 12 | 6 | 0 | 4 | 8
Additions |  | 128,463 |  | 7,240 | 37,011 | – 9 | 172,705
Disposals |  | 137 |  | – 9,374 | – 19,608 | – 645 | – 29,490
Premiums written | 968,409 |  |  |  |  |  | 968,409
Premiums earned | – 966,594 |  |  |  |  |  | – 966,594
Claims reporting year |  |  | 699,034 |  |  |  | 699,034
Claims payments reporting year |  |  | – 494,457 |  |  |  | – 494,457
Change in claims previous years |  |  | – 8,867 |  |  |  | – 8,867
Claims payments previous years |  |  | – 185,169 |  |  |  | – 185,169
Reclassifications held for sale | – 13,056 | – 30,267 | – 10,243 |  |  |  | – 53,565
At 31 December 2016 | 7,780 | 2,660,066 | 158,203 | 10,684 | 44,621 | 561 | 2,881,916
Life insurance |  |  |  |  |  |  |
At 1 January 2016 |  | 14,289,078 | 193,741 | 3,489 | 988,743 | 28,228 | 15,503,278
Foreign exchange differences |  | 31,337 | 395 | 5 | 708 | 52 | 32,497
Change in basis of consolidation |  |  |  |  |  |  |
Portfolio changes |  | 27,731 |  |  | – 13,716 |  | 14,015
Additions |  | 810,208 |  | 324 | 163,804 | 61 | 974,398
Disposals |  | – 797,170 |  | 104 | – 16,553 | – 1,320 | – 814,938
Claims reporting year |  |  | 2,148,364 |  |  |  | 2,148,364
Claims payments reporting year |  |  | – 1,937,182 |  |  |  | – 1,937,182
Change in claims previous years |  |  | 47,002 |  |  |  | 47,002
Claims payments previous years |  |  | – 265,675 |  |  |  | – 265,675
Reclassifications held for sale |  | – 3,586,232 | – 46,800 |  | – 203,967 | – 22,227 | – 3,859,226
At 31 December 2016 |  | 10,774,952 | 139,844 | 3,923 | 919,019 | 4,795 | 11,842,533
Total |  |  |  |  |  |  |
At 1 January 2016 | 635,857 | 16,863,089 | 2,723,316 | 43,483 | 1,017,115 | 45,201 | 21,328,061
Foreign exchange differences | – 4,636 | 31,622 | – 7,849 | 33 | 714 | 51 | 19,936
Change in basis of consolidation |  |  |  |  |  | 0 | 0
Portfolio changes | – 267 | 27,731 | – 114 |  | – 13,716 |  | 13,633
Additions |  | 938,499 |  | 7,759 | 201,061 | 1,570 | 1,148,890
Disposals |  | – 797,150 |  | – 9,854 | – 36,169 | – 4,143 | – 847,317
Premiums written | 2,995,454 |  |  |  |  |  | 2,995,454

Premiums earned | – 2,964,691 |  |  |  |  |  | – 2,964,691
Claims reporting year |  |  | 4,596,651 |  |  |  | 4,596,651
Claims payments reporting year |  |  | – 3,276,624 |  |  |  | – 3,276,624
Change in claims previous years |  |  | – 3,794 |  |  |  | – 3,794
Claims payments previous years |  |  | – 1,187,437 |  |  |  | – 1,187,437
Reclassifications held for sale | – 112,236 | – 3,616,499 | – 258,601 |  | – 203,967 | – 22,227 | – 4,213,530
At 31 December 2016 | 549,482 | 13,447,291 | 2,585,547 | 41,422 | 965,038 | 20,452 | 17,609,233

Reinsurers’ share | Unearned | Insurance | Provision for | Provision for non- Provision for profit- | Other technical | Total
In € thousand | premiums | provision | unsettled claims | profit related | related premium | provisions |
|  |  |  | premium refunds | refunds and/or |  |
|  |  |  |  | policyholder profit |  |
|  |  |  |  | participation |  |
Property and casualty insurance |  |  |  |  |  |  |
At 1 January 2016 | 21,883 | 14 | 151,645 |  |  | 1,730 | 175,272
Foreign exchange differences | – 158 | 0 | – 1,468 |  |  | 13 | – 1,612
Change in basis of consolidation |  |  |  |  |  |  |
Portfolio changes | – 65 |  | – 506 |  |  |  | – 571
Additions |  |  |  |  |  | 415 | 415
Disposals |  | – 1 |  |  |  |  | – 1
Premiums written | 43,983 |  |  |  |  |  | 43,983
Premiums earned | – 41,170 |  |  |  |  |  | – 41,170
Claims reporting year |  |  | 61,967 |  |  |  | 61,967
Claims payments reporting year |  |  | – 16,563 |  |  |  | – 16,563
Change in claims previous years |  |  | – 4,291 |  |  |  | – 4,291
Claims payments previous years |  |  | – 36,515 |  |  |  | – 36,515
Reclassifications held for sale | – 1,452 |  | – 3,043 |  |  |  | – 4,495
At 31 December 2016 | 23,021 | 13 | 151,227 |  |  | 2,158 | 176,419
Health insurance |  |  |  |  |  |  |
At 1 January 2016 | 79 | 794 | 22 |  |  |  | 895
Foreign exchange differences | 1 |  | 0 |  |  |  | 1
Portfolio changes |  |  |  |  |  |  |
Additions |  | 285 |  |  |  |  | 285
Disposals |  | – 84 |  |  |  |  | – 84
Premiums written | 248 |  |  |  |  |  | 248
Premiums earned | – 45 |  |  |  |  |  | – 45
Claims reporting year |  |  | 639 |  |  |  | 639
Claims payments reporting year |  |  | – 104 |  |  |  | – 104
Change in claims previous years |  |  | 187 |  |  |  | 187
Claims payments previous years |  |  | – 163 |  |  |  | – 163
Reclassifications held for sale | – 2 |  |  |  |  |  | – 2
At 31 December 2016 | 281 | 995 | 582 |  |  |  | 1,857
Life insurance |  |  |  |  |  |  |
At 1 January 2016 |  | 356,769 | 16,206 |  |  | – 177 | 372,798
Foreign exchange differences |  | 37 | 2 |  |  | 0 | 39
Change in basis of consolidation |  |  |  |  |  |  |
Portfolio changes |  | – 1,206 | 54 |  |  |  | – 1,152
Additions |  | – 728 |  |  |  | 10 | – 718
Disposals |  | – 24,459 |  |  |  | – 12 | – 24,471
Claims reporting year |  |  | 26,706 |  |  |  | 26,706
Claims payments reporting year |  |  | – 17,053 |  |  |  | – 17,053
Change in claims previous years |  |  | 7,028 |  |  |  | 7,028
Claims payments previous years |  |  | – 14,648 |  |  |  | – 14,648
Reclassifications held for sale |  | – 188,857 | – 13,506 |  |  |  | – 202,363
At 31 December 2016 |  | 141,556 | 4,789 |  |  | – 178 | 146,166

Total |  |  |  |  |  |  |
At 1 January 2016 | 21,962 | 357,577 | 167,874 |  |  | 1,553 | 548,965
Foreign exchange differences | – 157 | 37 | – 1,465 |  |  | 13 | – 1,571
Change in basis of consolidation |  |  |  |  |  |  |
Portfolio changes | – 65 | – 1,206 | – 452 |  |  |  | – 1,723
Additions |  | – 443 |  |  |  | 425 | – 18
Disposals |  | – 24,544 |  |  |  | – 12 | – 24,556
Premiums written | 44,231 |  |  |  |  |  | 44,231
Premiums earned | – 41,215 |  |  |  |  |  | – 41,215
Claims reporting year |  |  | 89,311 |  |  |  | 89,311
Claims payments reporting year |  |  | – 33,720 |  |  |  | – 33,720
Change in claims previous years |  |  | 2,923 |  |  |  | 2,923
Claims payments previous years |  |  | – 51,325 |  |  |  | – 51,325
Reclassifications held for sale | – 1,454 | – 188,857 | – 16,549 |  |  |  | – 206,860
At 31 December 2016 | 23,302 | 142,563 | 156,598 |  |  | 1,980 | 324,443

Net | Unearned | Insurance | Provision for | Provision for non- Provision for profit- | Other technical | Total
In € thousand | premiums | provision | unsettled claims | profit related | related premium | provisions |
|  |  |  | premium refunds | refunds and/or |  |
|  |  |  |  | policyholder profit |  |
|  |  |  |  | participation |  |
Property and casualty insurance |  |  |  |  |  |  |
At 1 January 2016 | 594,897 | 12,330 | 2,220,013 | 27,183 | 1,155 | 14,031 | 2,869,609
Foreign exchange differences | – 4,422 | 218 | – 6,764 | 22 | 6 | – 18 | – 10,957
Portfolio changes | – 202 |  | 391 |  |  |  | 190
Additions |  | – 172 |  | 195 | 246 | 1,103 | 1,372
Disposals |  | – 116 |  | – 584 | – 9 | – 2,178 | – 2,888
Premiums written | 1,983,063 |  |  |  |  |  | 1,983,063
Premiums earned | – 1,956,927 |  |  |  |  |  | – 1,956,927
Claims reporting year |  |  | 1,687,286 |  |  |  | 1,687,286
Claims payments reporting year |  |  | – 828,423 |  |  |  | – 828,423
Change in claims previous years |  |  | – 37,638 |  |  |  | – 37,638
Claims payments previous years |  |  | – 700,078 |  |  |  | – 700,078
Reclassifications held for sale | – 97,728 |  | – 198,515 |  |  |  | – 296,243
At 31 December 2016 | 518,681 | 12,260 | 2,136,273 | 26,815 | 1,399 | 12,937 | 2,708,366
Health insurance |  |  |  |  |  |  |
At 1 January 2016 | 18,998 | 2,560,873 | 157,895 | 12,811 | 27,218 | 1,212 | 2,779,007
Foreign exchange differences | – 57 | 66 | – 13 | 6 | 0 | 4 | 6
Portfolio changes |  |  |  |  |  |  |
Additions |  | 128,179 |  | 7,240 | 37,011 | – 9 | 172,420
Disposals |  | 221 |  | – 9,374 | – 19,608 | – 645 | – 29,406
Premiums written | 968,161 |  |  |  |  |  | 968,161
Premiums earned | – 966,549 |  |  |  |  |  | – 966,549
Claims reporting year |  |  | 698,396 |  |  |  | 698,396
Claims payments reporting year |  |  | – 494,352 |  |  |  | – 494,352
Change in claims previous years |  |  | – 9,054 |  |  |  | – 9,054
Claims payments previous years |  |  | – 185,007 |  |  |  | – 185,007
Reclassifications held for sale | – 13,054 | – 30,267 | – 10,243 |  |  |  | – 53,564
At 31 December 2016 | 7,499 | 2,659,072 | 157,622 | 10,684 | 44,621 | 561 | 2,880,058
Life insurance |  |  |  |  |  |  |
At 1 January 2016 |  | 13,932,309 | 177,535 | 3,489 | 988,743 | 28,405 | 15,130,480
Foreign exchange differences |  | 31,300 | 393 | 5 | 708 | 52 | 32,458
Portfolio changes |  | 28,937 | – 54 |  | – 13,716 |  | 15,167
Additions |  | 810,935 |  | 324 | 163,804 | 51 | 975,115
Disposals |  | – 772,711 |  | 104 | – 16,553 | – 1,308 | – 790,467
Claims reporting year |  |  | 2,121,658 |  |  |  | 2,121,658

Claims payments reporting year |  |  | – 1,920,129 |  |  |  | – 1,920,129
Change in claims previous years |  |  | 39,974 |  |  |  | 39,974
Claims payments previous years |  |  | – 251,028 |  |  |  | – 251,028
Reclassifications held for sale |  | – 3,397,374 | – 33,295 |  | – 203,967 | – 22,227 | – 3,656,863
At 31 December 2016 |  | 10,633,396 | 135,055 | 3,923 | 919,019 | 4,974 | 11,696,366
Total |  |  |  |  |  |  |
At 1 January 2016 | 613,895 | 16,505,512 | 2,555,443 | 43,483 | 1,017,115 | 43,648 | 20,779,096
Foreign exchange differences | – 4,479 | 31,584 | – 6,384 | 33 | 714 | 38 | 21,507
Portfolio changes | – 202 | 28,937 | 337 |  | – 13,716 |  | 15,356
Additions |  | 938,942 |  | 7,759 | 201,061 | 1,144 | 1,148,908
Disposals |  | – 772,606 |  | – 9,854 | – 36,169 | – 4,131 | – 822,761
Premiums written | 2,951,223 |  |  |  |  |  | 2,951,223
Premiums earned | – 2,923,476 |  |  |  |  |  | – 2,923,476
Claims reporting year |  |  | 4,507,340 |  |  |  | 4,507,340
Claims payments reporting year |  |  | – 3,242,904 |  |  |  | – 3,242,904
Change in claims previous years |  |  | – 6,718 |  |  |  | – 6,718
Claims payments previous years |  |  | – 1,136,112 |  |  |  | – 1,136,112
Reclassifications held for sale | – 110,782 | – 3,427,641 | – 242,053 |  | – 203,967 | – 22,227 | – 4,006,670
At 31 December 2016 | 526,180 | 13,304,728 | 2,428,950 | 41,422 | 965,038 | 18,472 | 17,284,790

26. Technical provisions for unit-linked and index-linked life insurance

In € thousand | 31/12/2016 | 31/12/2015
Gross | 4,846,591 | 5,175,437
Reinsurers’ share | – 318,636 | – 315,646
Total | 4,527,955 | 4,859,791

As a general rule, the valuation of the insurance provisions for unit-linked and index-linked life insurance policies corresponds to the unit-linked and index-linked life insurance investments reported at current fair values. The share of reinsurers corresponds to a liability for deposits in the same amount.

27. Financial liabilities

In € thousand | 2016 long term | 2016 short term | 2015 long term | 2015 short term
Liabilities from loans | 14,959 | 9 | 15,613 | 45
Derivative financial instruments | 15,842 | 14,713 | 2,711 | 15,211
Financial liabilities | 30,801 | 14,723 | 18,324 | 15,256
Subordinated liabilities | 846,043 | 0 | 845,745 | 250,000
Total | 876,844 | 14,723 | 864,070 | 265,256

With the exception of the subordinated liabilities, the carrying amounts of the financial liabili-ties are equal to the fair values.

In € thousand | Liabilities from loans | Derivative financial Subordinated liabilities
|  | instruments |
Carrying amount at 1 January 2015 | 16,692 | 32,489 | 600,000
Additions | 6 | 1,401 | 495,745
Changes from currency translation | – 1 | 0 | 0
Profit or loss from changes of exchange rates | 0 | – 1,059 | 0
Ordinary amortisation | – 1,039 | – 14,909 | 0
Carrying amount at 1 January 2016 | 15,658 | 17,922 | 1,095,745
Additions | 0 | 12,805 | 0
Changes from currency translation | 2 | 0 | 0
Profit or loss from changes of exchange rates | 0 | – 173 | 0
Ordinary amortisation | – 691 | 0 | – 249,703
Carrying amount at 31 December 2016 | 14,968 | 30,555 | 846,043

Projected funds flow at 31 December 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | >2021
In € thousand
Liabilities from loans | 978 | 960 | 951 | 942 | 8,349 | 2,910
Derivative financial instruments | 14,713 | 231 | 750 | 2,939 | 10,018 | 1,903
Subordinated liabilities | 54,813 | 54,813 | 54,813 | 54,964 | 54,813 | 1,050,960
Total | 70,505 | 56,004 | 56,514 | 58,844 | 73,181 | 1,055,773
Projected funds flow at 31 December 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | >2020
In € thousand
Liabilities from loans | 978 | 969 | 960 | 951 | 942 | 11,380
Derivative financial instruments | 4,800 | 2,262 | 2,192 | 2,076 | 1,670 | 8,174
Subordinated liabilities | 318,140 | 54,813 | 54,813 | 54,813 | 54,964 | 1,105,773
Total | 323,918 | 58,044 | 57,965 | 57,840 | 57,575 | 1,125,327

28. Other provisions

In € thousand | 31/12/2016 | 31/12/2015
Defined benefit obligations | 599,641 | 600,394
Other provisions | 199,096 | 196,049
Total | 798,737 | 796,442

Defined benefit obligations

In € thousand | Defined benefit | Plan assets | Net defined benefit | Defined benefit | Total defined benefit
| obligations for pensions | at fair value | obligations for pensions | obligations for | obligations
|  |  |  | termination benefits |
At 1 January 2016 | 501,883 | – 77,246 | 424,637 | 175,757 | 600,394
Current service costs | 16,183 | 0 | 16,183 | 6,837 | 23,020
Interest expense/income | 9,720 | 0 | 9,720 | 2,162 | 11,882
Past service costs | 1,582 | 0 | 1,582 | 1 | 1,584
Components of defined benefit obligations |  |  |  |  |
recognised in the income statement | 27,485 | 0 | 27,485 | 9,001 | 36,485
Return on plan assets recognised in other comprehensive |  |  |  |  |
income | 0 | 460 | 460 | 8 | 468
Actuarial gains and losses that arise from changes in |  |  |  |  |
demographic assumptions | 0 | 0 | 0 | 273 | 273
Actuarial gains and losses that arise from changes in |  |  |  |  |
financial assumptions | – 3,398 | 0 | – 3,398 | 5,613 | 2,215
Actuarial gains and losses that arise from experience |  |  |  |  |
adjustments | 8,661 | 0 | 8,661 | – 4,011 | 4,650
Other comprehensive income | 5,263 | 460 | 5,723 | 1,883 | 7,606
Changes from currency translation | – 16 | 0 | – 16 | – 2 | – 17
Payments | – 21,006 | 0 | – 21,006 | – 12,862 | – 33,867
Contribution to plan assets | 0 | – 11,103 | – 11,103 | 0 | – 11,103
Transfer in | 1 | 0 | 1 | 1,952 | 1,953
Transfer out | – 12,213 | 12,277 | 64 | – 222 | – 158
Change in basis of consolidation | 0 | 0 | 0 | 0 | 0
| 0 | 0 | 0 | – 1,652 | – 1,652
At 31 December 2016 | 501,397 | – 75,612 | 425,785 | 173,856 | 599,641

In € thousand | Defined benefit | Plan assets | Net defined benefit | Termination benefits | Total defined benefit
| obligations for pensions | at fair value | obligations for pensions |  | obligations
At 1 January 2015 | 503,899 | – 71,492 | 432,407 | 179,263 | 611,670
Current service costs | 18,026 | 0 | 18,026 | 7,164 | 25,189
Interest expense/income | 12,264 | – 1,829 | 10,436 | 3,697 | 14,133
Past service costs | – 47,782 | 0 | – 47,782 | – 13,398 | – 61,180
Components of defined benefit obligations recognised |  |  |  |  |
in the income statement | – 17,492 | – 1,829 | – 19,321 | – 2,537 | – 21,858
Return on plan assets recognised in other comprehensive |  |  |  |  |
income | 0 | – 409 | – 409 | 0 | – 409
Actuarial gains and losses that arise from changes in |  |  |  |  |
demographic assumptions | 0 | 0 | 0 | 147 | 147
Actuarial gains and losses that arise from changes in financial |  |  |  |  |
assumptions | 33,519 | 0 | 33,519 | 16,434 | 49,953
Actuarial gains and losses that arise from experience |  |  |  |  |
adjustments | 11,008 | 0 | 11,008 | – 2,701 | 8,307
Other comprehensive income | 44,527 | – 409 | 44,118 | 13,881 | 57,999
Changes from currency translation | 1 | 0 | 1 | 0 | 1
Payments | – 21,900 | 0 | – 21,900 | – 16,786 | – 38,687
Contribution to plan assets | 0 | – 6,261 | – 6,261 | 0 | – 6,261
Transfer in | 0 | 0 | 0 | 458 | 458
Transfer out | – 7,772 | 2,728 | – 5,044 | – 461 | – 5,505
Change in basis of consolidation | 620 | 17 | 637 | 1,940 | 2,577
At 31 December 2015 | 501,883 | – 77,246 | 424,637 | 175,757 | 600,394

The plan assets for the defined benefit obligations are comprised as follows:

|  | 31/12/2016 |  | 31/12/2015
In per cent | Listed | Not listed | Listed | Not listed
Bonds - euro | 17.7 | 0.3 | 28.8 | 0.0
Bonds - euro high yield | 7.3 | 0.4 | 4.4 | 2.3
Corporate bonds - euro | 22.0 | 1.7 | 19.6 | 2.2
Equities - euro | 11.7 | 0.0 | 7.4 | 0.0
Equities - non-euro | 7.1 | 0.0 | 5.9 | 0.0
Equities - emerging markets | 5.5 | 0.1 | 0.3 | 0.0
Alternative investment instruments | 2.7 | 0.0 | 1.3 | 0.0
Land and buildings | 0.0 | 0.0 | 0.0 | 1.6
Cash | 0.1 | 19.2 | 0.0 | 10.1
HTM bonds / term deposits | 4.2 | 0.0 | 16.1 | 0.0
Total | 78.3 | 21.7 | 83.8 | 16.2

The measurement of the defined benefit obligations is based on the following actuarial calcula-tion parameters:

Calculation factors applied | 2016 | 2015
In per cent |  |
Discount rate |  |
Termination benefit obligations | 0.9 | 1.3
Pensions | 1.6 | 2.0
Valorisation of remuneration | 3.0 | 3.0
Valorisation of pensions | 2.0 | 2.0
Employee turnover rate | dependent on years of service | dependent on years of service
| AVÖ 2008 P – Pagler & Pagler/ - | AVÖ 2008 P – Pagler & Pagler/ -
Calculation principles | salaried employees | salaried employees
Weighted average duration in years | Pensions | Termination benefits
31/12/2016 | 14.4 | 8.3
31/12/2015 | 13.8 | 8.4

Investment risk
The cash value of the defined benefit obligations is calculated using a discount rate which is determined based on the returns from high-quality corporate bonds. There will be a deficit if the changes in the plan assets fall below these returns. The plans for the different benefit obliga-tions include a diversified mix of securities. These primarily include annuities, corporate bonds, equities and other equity instruments, etc. By reducing the duration of the plans, the Group intends to reduce the investment risk by continuously adjusting the portfolio of assets to the requirements of the defined benefit plans.
Interest rate change risk
A fall in the return on corporate bonds results in an increase in the cash value of the defined benefit obligations. However, this effect is absorbed in part by the increase in the plan assets or by higher income from the plan assets.
Life expectancy
The cash value of the benefit obligations from pensions is heavily dependent inter alia on the life expectancy of the beneficiaries. An increase in the life expectancy of the beneficiaries re-sults in an increase in the defined benefit obligations.
Salary risk
The cash value of the defined benefit obligations is ascertained based on the future salaries of the beneficiaries. In this respect, any salary increases result in an increase in the defined benefit obligations. The majority of the assets from the plan assets are not indexed to any rates of infla-tion or salary increase.
The sensitivity of the defined benefit obligations on changes in the weighted actuarial calcu-lation parameters is:

Sensitivity analysis 2016 | Pensions |  | Termination benefits |
Remaining life expectancy |  |
Change in DBO (+1 year) | 3.4 | % |
Change in DBO (-1 year) | – 3.6% |  |
Discount rate |  |
Change in DBO (+1%) | – 11.8% |  | – 7.8% |
Change in DBO (-1%) | 14.7 | % | 8.9 | %
Future salary increase rate |  |
Change in DBO (+0.75%) | 1.4 | % | 6.4 | %
Change in DBO (-0.75%) | – 1.4% |  | – 5.9% |
Future pension increase rate |  |
Change in DBO (+0.25%) | 3.0 | % |
Change in DBO (-0.25%) | – 2.9% |  |
Sensitivity analysis 2015 | Pensions |  | Termination benefits |
Remaining life expectancy |  |
Change in DBO (+1 year) | 3.2 | % |
Change in DBO (-1 year) | – 3.4% |  |
Discount rate |  |
Change in DBO (+1%) | – 11.9% |  | – 7.1% |
Change in DBO (-1%) | 14.8 | % | 9.0 | %
Future salary increase rate |  |
Change in DBO (+0.75%) | 1.6 | % | 5.9 | %
Change in DBO (-0.75%) | – 1.5% |  | – 6.0% |
Future pension increase rate |  |
Change in DBO (+0.25%) | 3.0 | % |
Change in DBO (-0.25%) | – 2.9% |  |

Under the defined contribution company pension scheme, the employer pays the fixed amounts into company pension funds. The employer has satisfied their obligation by making these con-tributions.

In € thousand | 1-12/2016 | 1-12/2015
Contributions to company pension funds | 2,011 | 2,048

Other provisions

In € thousand | Provisions for | Customer services | Provision for legal | Provision for | Provision for | Miscellaneous | Total
| jubilee benefits | and marketing | and consulting | premium | portfolio | other provisions |
|  | provision | expenses | adjustment of | maintenance |  |
|  |  |  | reinsurance | commission |  |
|  |  |  | contracts |  |  |
At 1 January 2015 | 14,884 | 75,763 | 7,948 | 7,911 | 3,174 | 80,487 | 190,167
Additions | 1,414 | 73,879 | 2,504 | 2,768 | 1,792 | 61,708 | 144,066
Reversal of unused provisions | – 917 | – 3,137 | – 2,099 | – 3 | 0 | – 19,860 | – 26,017
Addition due to unwinding of the |  |  |  |  |  |  | 321
discount | 321 | 0 | 0 | 0 | 0 | 0 |
Change in basis of consolidation | 0 | 0 | – 1 | 0 | 0 | 1,691 | 1,690
Reclassifications | 0 | 2 | 0 | 0 | 0 | – 2 | 0
Use in current year | – 10 | – 71,219 | – 2,932 | – 4,853 | – 1,023 | – 34,171 | – 114,208
Foreign exchange differences | 0 | – 10 | 0 | 7 | 57 | – 23 | 30
At 31 December 2015 | 15,692 | 75,279 | 5,420 | 5,829 | 4,000 | 89,830 | 196,049
At 1 January 2016 | 15,692 | 75,279 | 5,420 | 5,829 | 4,000 | 89,830 | 196,049
Additions | 1,162 | 79,268 | 712 | 1,610 | 3,437 | 78,829 | 165,017
Reversal of unused provisions | 0 | – 1,738 | – 428 | – 78 | – 1 | – 18,098 | – 20,344
Addition due to unwinding of the |  |  |  |  |  |  | 144
discount | 144 | 0 | 0 | 0 | 0 | 0 |
Change in basis of consolidation | 342 | 0 | 32 | 0 | 0 | – 4,389 | – 4,015
Reclassifications | 0 | – 3 | 0 | 0 | 0 | 603 | 600
Use in current year | – 1,805 | – 64,621 | – 2,344 | – 3,908 | – 3,729 | – 52,674 | – 129,081
Foreign exchange differences | 0 | 81 | – 19 | 0 | 0 | 10 | 72
Reclassifications held for sale | 0 | – 306 | – 1,480 | 0 | 0 | – 7,561 | – 9,347
At 31 December 2016 | 15,535 | 87,960 | 1,894 | 3,452 | 3,707 | 86,549 | 199,096

29. Liabilities and other items classified as equity or liabilities

In € thousand | 31/12/2016 | 31/12/2015
Reinsurance liabilities |  |
Deposits retained on assumed reinsurance | 459,839 | 665,447
Reinsurance settlement liabilities | 28,139 | 34,980
| 487,978 | 700,427
Other liabilities |  |
Insurance liabilities |  |
to policyholders | 124,367 | 129,512
to insurance brokers | 45,347 | 51,764
to insurance companies | 5,802 | 9,633
| 175,517 | 190,909
Liabilities to credit institutions | 4,001 | 0
Other liabilities | 351,662 | 358,301
of which for taxes | 75,059 | 61,059
of which for social security | 11,740 | 14,182
of which from fund consolidation | 1,002 | 2,224
Total other liabilities | 531,179 | 549,210
Subtotal | 1,019,157 | 1,249,637
of which liabilities with a maturity of |  |
up to 1 year | 621,256 | 723,678
more than 1 year up to 5 years | 18,595 | 3,983
more than 5 years | 379,306 | 521,975
| 1,019,157 | 1,249,637
Other debt | 23,087 | 21,935
Total liabilities and other items classified as liabilities | 1,042,244 | 1,271,572

Other liabilities basically comprise the balance of the deferred income from the settlement of indirect business.

30. Income tax liabilities

In € thousand | 31/12/2016 | 31/12/2015
Income tax liabilities | 79,120 | 95,970
of which liabilities with a maturity of |  |
up to 1 year | 1,870 | 13,089
more than 1 year up to 5 years | 77,250 | 82,881
more than 5 years | 0 | 0

NOTES TO THE CONSOLIDATED INCOME STATEMENT
31. Premiums

Premiums | 1-12/2016 | 1-12/2015
In € thousand |  |
Premiums written - gross | 4,643,113 | 4,829,034
Premiums written - reinsurer’s share | – 171,950 | – 173,659
Premiums written - net | 4,471,163 | 4,655,375
Change in premiums earned - gross | – 31,425 | – 11,734
Change in premiums earned - reinsurers’ share | 3,233 | 7,487
Premiums earned | 4,442,970 | 4,651,128
Direct insurance | 1-12/2016 | 1-12/2015
In € thousand |  |
Property and casualty insurance | 2,482,065 | 2,401,737
Health insurance | 1,003,654 | 964,392
Life insurance | 1,108,319 | 1,412,869
Total | 4,594,038 | 4,778,997
Of which written in: |  |
Austria | 3,379,538 | 3,607,781
Remaining EU member states and other states which are party to the Agreement on the |  |
European Economic Area | 955,980 | 913,992
Other countries | 258,519 | 257,225
Total | 4,594,038 | 4,778,997
Indirect insurance | 1-12/2016 | 1-12/2015
In € thousand |  |
Property and casualty insurance | 36,367 | 37,449
Health insurance | 2 | 1
Life insurance | 12,706 | 12,586
Total | 49,075 | 50,036
In € thousand | 1-12/2016 | 1-12/2015
Total | 4,643,113 | 4,829,034

Property and casualty insurance premiums written | 1-12/2016 | 1-12/2015
In € thousand |  |
Direct insurance |  |
Fire and business interruption insurance | 227,994 | 227,888
Household insurance | 178,439 | 174,015
Other property insurance | 229,123 | 226,992
Motor TPL insurance | 579,705 | 545,364
Other motor insurance | 475,044 | 439,075
Casualty insurance | 347,068 | 331,277
Liability insurance | 235,949 | 235,223
Legal expense insurance | 84,991 | 81,263
Marine, aviation and transport insurance | 59,763 | 73,636

Other forms of insurance | 63,988 | 67,004
Total | 2,482,065 | 2,401,737
Indirect insurance |  |
Marine, aviation and transport insurance | 1,820 | 874
Other forms of insurance | 34,546 | 36,576
Total | 36,367 | 37,449
Total direct and indirect insurance (amount consolidated) | 2,518,432 | 2,439,186
Reinsurance premiums ceded | 1-12/2016 | 1-12/2015
in € thousand |  |
Property and casualty insurance | 133,022 | 132,391
Health insurance | 1,265 | 1,105
Life insurance | 37,663 | 40,163
Total | 171,950 | 173,659
Premiums earned | 1-12/2016 | 1-12/2015
In € thousand |  |
Property and casualty insurance | 2,359,053 | 2,301,270
Gross | 2,488,862 | 2,426,182
Reinsurers’ share | – 129,809 | – 124,912
Health insurance | 1,000,356 | 963,899
Gross | 1,001,599 | 964,975
Reinsurers’ share | – 1,243 | – 1,076
Life insurance | 1,083,561 | 1,385,959
Gross | 1,121,226 | 1,426,142
Reinsurers’ share | – 37,665 | – 40,183
Total | 4,442,970 | 4,651,128
Premiums earned – indirect insurance | 1-12/2016 | 1-12/2015
in € thousand |  |
Posted immediately | 13,592 | 2,860
Recognised with a delay of up to 1 year | 19,679 | 26,587
Posted after more than 1 year | 106 | 0
Property and casualty insurance | 33,377 | 29,447
Recognised simultaneously | 0 | 642
Recognised with a delay of up to 1 year | 2 | 1
Health insurance | 2 | 644
Recognised with a delay of up to 1 year | 12,222 | 10,667
Life insurance | 12,222 | 10,667
Total | 45,601 | 40,758

Earnings – indirect insurance | 1-12/2016 | 1-12/2015
In € thousand |  |
Property and casualty insurance | 27,621 | 26,442
Health insurance | 970 | 123
Life insurance | 7,792 | 1,898
Total | 36,383 | 28,463

32. Insurance benefits

|  | Gross |  | Reinsurers’ share |  | Net
In € thousand | 1-12/2016 | 1-12/2015 | 1-12/2016 | 1-12/2015 | 1-12/2016 | 1-12/2015
Property and casualty insurance |  |  |  |  |  |
Claims expenses |  |  |  |  |  |
Claims paid | 1,449,961 | 1,472,667 | – 54,383 | – 58,938 | 1,395,578 | 1,413,729
Change in provision for unsettled claims | 127,253 | 123,135 | – 3,756 | – 16,650 | 123,496 | 106,485
Total | 1,577,214 | 1,595,802 | – 58,140 | – 75,589 | 1,519,074 | 1,520,214
Change in insurance provision | – 379 | – 240 | 1 | 100 | – 377 | – 140
Change in other technical provisions | – 464 | – 848 | 0 | 0 | – 464 | – 848
Non-profit related and profit-related premium refund |  |  |  |  |  |
expenses | 32,361 | 34,458 | 0 | 0 | 32,361 | 34,458
Total benefits | 1,608,732 | 1,629,173 | – 58,138 | – 75,489 | 1,550,593 | 1,553,683
Health insurance |  |  |  |  |  |
Claims expenses |  |  |  |  |  |
Claims paid | 664,665 | 648,021 | – 275 | – 324 | 664,390 | 647,697
Change in provision for unsettled claims | 10,207 | 1,065 | – 559 | 1 | 9,648 | 1,066
Total | 674,872 | 649,086 | – 834 | – 323 | 674,038 | 648,763
Change in insurance provision | 125,983 | 121,945 | 84 | 92 | 126,067 | 122,037
Change in other technical provisions | – 564 | 207 | 0 | 0 | – 564 | 207
Non-profit related and profit-related premium refund |  |  |  |  |  |
expenses | 44,030 | 10,715 | 0 | 0 | 44,030 | 10,715
Total benefits | 844,321 | 781,953 | – 750 | – 232 | 843,571 | 781,721
Life insurance |  |  |  |  |  |
Claims expenses |  |  |  |  |  |
Claims paid | 1,724,173 | 2,131,135 | – 26,453 | – 24,750 | 1,697,720 | 2,106,385
Change in provision for unsettled claims | – 22,440 | – 25,413 | 230 | – 925 | – 22,210 | – 26,338
Total | 1,701,732 | 2,105,722 | – 26,222 | – 25,674 | 1,675,510 | 2,080,048
Change in insurance provision | – 698,099 | – 800,636 | – 7,571 | – 13,650 | – 705,669 | – 814,286
Change in other technical provisions | – 4 | 869 | 0 | 0 | – 4 | 869
Non-profit related and profit-related premium refund |  |  |  |  |  |
expenses and/or (deferred) benefit participation expenses | 21,564 | 69,272 | 0 | 0 | 21,564 | 69,272
Total benefits | 1,025,194 | 1,375,227 | – 33,793 | – 39,324 | 991,401 | 1,335,903
Total | 3,478,247 | 3,786,352 | – 92,681 | – 115,045 | 3,385,566 | 3,671,307

33. Operating expenses

In € thousand | 1-12/2016 | 1-12/2015
Property and casualty insurance |  |
Acquisition costs |  |
Payments | 549,185 | 529,538
Change in deferred acquisition costs | – 9,590 | – 2,444
Other operating expenses | 233,529 | 181,410
Reinsurance commission and share of profit from reinsurance ceded | – 9,944 | – 8,884
| 763,180 | 699,621
Health insurance |  |
Acquisition costs |  |
Payments | 106,621 | 87,110
Change in deferred acquisition costs | – 7,472 | – 6,590
Other operating expenses | 76,800 | 73,693
Reinsurance commission and share of profit from reinsurance ceded | – 463 | – 521
| 175,486 | 153,693
Life insurance |  |
Acquisition costs |  |
Payments | 224,249 | 225,468
Change in deferred acquisition costs | 27,681 | 30,208
Other operating expenses | 106,702 | 91,150
Reinsurance commission and share of profit from reinsurance ceded | – 10,904 | – 9,705
| 347,728 | 337,121
Total | 1,286,394 | 1,190,435

34. Net investment income

Classified by business line |  | Property and | Health insurance | Life insurance |  | Total
| casualty insurance |  |  |  |  |  |
In € thousand | 1/12/2016 | 1/12/2016 | 1/12/2016
Investment property | 414 | 1,897 | 3,881 | 32,213 | 41,685 | 76,941 | 45,980 | 111,051
Financial assets accounted for using the equity method | 5,551 | 3,171 | 11,741 | 12,439 | 21,322 | 7,596 | 38,614 | 23,205
Variable-income securities | 41,134 | 13,369 | 4,675 | 6,159 | – 1,881 | 28,310 | 43,928 | 47,838
Available for sale | 40,460 | 13,047 | 1,479 | 5,741 | – 1,551 | 25,695 | 40,388 | 44,483
At fair value through profit or loss | 674 | 322 | 3,196 | 418 | – 330 | 2,615 | 3,540 | 3,354
Fixed-income securities | 85,258 | 102,394 | 96,678 | 98,638 | 272,743 | 372,294 | 454,679 | 573,327
Available for sale | 85,920 | 102,492 | 95,805 | 98,348 | 264,650 | 361,629 | 446,375 | 562,469
At fair value through profit or loss | – 662 | – 98 | 873 | 290 | 8,093 | 10,666 | 8,304 | 10,858
Loans and other investments | 6,995 | 7,660 | 5,396 | 7,534 | 43,725 | 52,280 | 56,116 | 67,473
Loans | 1,691 | 433 | 3,569 | 5,931 | 10,481 | 17,474 | 15,742 | 23,838
Other investments | 5,303 | 7,227 | 1,827 | 1,603 | 33,244 | 34,805 | 40,374 | 43,636
Derivative financial instruments | 6,909 | 245 | 512 | – 9,425 | – 21,976 | – 42,883 | – 14,555 | – 52,062
Investment administration expenses, interest paid and other |  |  |  |  |  |  |  |
investment expenses | – 13,635 | – 11,492 | – 7,976 | – 7,486 | – 14,259 | – 19,870 | – 35,869 | – 38,848
Total | 132,626 | 117,245 | 114,907 | 140,071 | 341,360 | 474,668 | 588,892 | 731,983

Classified by type of income | Current income | Gains/losses from |  | Total | of which impairment
|  |  |  | disposals and |  |  |  |
|  |  | changes in value |  |  |  |
In € thousand | 1-12/2016 | 1-12/2015 | 1-12/2016 | 1-12/2015 | 1-12/2016 | 1-12/2015 | 1-12/2016 | 1-12/2015
Financial assets recognised at fair value through profit or loss |  |  |  |  |  |  |  |
Variable-income securities (within the framework of fair value option) | 3,601 | 7,531 | – 61 | – 4,177 | 3,540 | 3,354 | 0 | 0
Fixed-income securities (within the framework of fair value option) | 2,758 | 14,292 | 5,546 | – 3,434 | 8,304 | 10,858 | 0 | 0
Derivative financial instruments | – 10,432 | 1,322 | – 4,123 | – 53,384 | – 14,555 | – 52,062 | 0 | 0
Investments under investment contracts 1) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Subtotal | – 4,074 | 23,145 | 1,363 | – 60,995 | – 2,711 | – 37,850 | 0 | 0
Available-for-sale financial assets |  |  |  |  |  |  |  |
Variable-income securities | 34,292 | 31,487 | 6,096 | 12,996 | 40,388 | 44,483 | – 42,494 | – 7,531
Fixed-income securities | 375,364 | 409,893 | 71,011 | 152,575 | 446,375 | 562,469 | – 35,646 | – 33,770
Subtotal | 409,656 | 441,381 | 77,107 | 165,571 | 486,763 | 606,952 | – 78,140 | – 41,302
Loans and receivables |  |  |  |  |  |  |  |
Fixed-income securities | 13,965 | 18,343 | 306 | 2,969 | 14,271 | 21,312 | 0 | 0
Loans and other investments | 40,597 | 41,901 | 1,248 | 4,260 | 41,845 | 46,161 | – 2,202 | – 3,295
Subtotal | 54,562 | 60,245 | 1,554 | 7,229 | 56,116 | 67,473 | – 2,202 | – 3,295
Investment property | 73,282 | 79,927 | – 27,302 | 31,124 | 45,980 | 111,051 | – 144 | – 9,038
Financial assets accounted for using the equity method | 39,557 | 23,205 | – 944 | 0 | 38,614 | 23,205 | 0 | 0
Investment administration expenses, interest paid and | – 35,869 | – 38,848 | 0 | 0 | – 35,869 | – 38,848 | 0 | 0
other investment expenses
Total | 537,115 | 589,054 | 51,778 | 142,929 | 588,892 | 731,983 | – 80,486 | – 53,635

1) | Income from investments under investment contracts is not stated due to its transitory character.

Income from available-for-sale fixed-income securities includes losses of €0 thousand (2015: gains of €32,833 thousand) and income from fixed-income and variable-income securities at fair value through profit or loss includes gains of €577 thousand (2015: losses of €1,068 thousand) from Level 3 valuations.
The adjustment of valuation allowances relates to both the reversal of impairment losses as well as the impairment of financial assets, excluding assets held for trading and financial assets at fair value through profit or loss. The interest income from impaired portfolio items amounts to €22,860 thousand (2015: €9,900 thousand). The net investment income of €588,892 thou-sand (2015: €731,983 thousand) includes realised and unrealised gains and losses amounting to €51,778 thousand (2015: €142,929 thousand), which includes currency gains of €10,778 thousand (2015: €44,715 thousand). These currency gains are essentially the result of investments in US dollars. The currency gains in the underlying US dollar securities amounted to around €22,149 thousand (2015: €106,545 thousand), which were accompanied by expendi-tures from derivative financial instruments within the scope of hedging transactions in the amount of €1,451 thousand (2015: Expenses in the amount of €66,083 thousand). In addition, currency effects in the amount of €5,356 thousand (2015: €4,216 thousand) were recognised directly in equity. The income from real estate held as financial investments includes rent reve-nue in the amount of €105,679 thousand (2015: €112,806 thousand) direct operational expenses in the amount of €32,397 thousand (2015: €32,879 thousand).
Net profit by measurement category

In € thousand | 2016 | 2015
Financial assets recognised at fair value through profit or loss |  |
Recognised in profit/(loss) for the year | – 2,711 | – 37,850
Available-for-sale financial assets |  |
Recognised in profit/(loss) for the year | 486,763 | 606,952
of which reclassified from equity to consolidated income statement | – 82,551 | – 73,138
of which recognised in other comprehensive income 1) | 243,315 | – 154,336
Net income | 730,078 | 452,616
Loans and receivables |  |
Recognised in profit/(loss) for the year | 56,116 | 67,473
Financial liabilities measured at amortised cost |  |
Recognised in profit/(loss) for the year | – 67,477 | – 50,243

1) The presentation does not include the share of other comprehensive income allocated to the discontinued operations. This results in differences between these amounts and the amount shown in the consolidated statement of comprehensive income.
The overall interest expenditure from financial instruments amounts to €68,168 thousand (2015: €51,902 thousand). The income from financial instruments amounts to €537,115 thousand (2015: €589,054 thousand).

35. Other income

In € thousand | 1-12/2016 | 1-12/2015
Other non-technical income | 41,828 | 35,818
Property and casualty insurance | 22,458 | 26,554
Health insurance | 5,013 | 5,650
Life insurance | 14,357 | 3,613
of which |  |
Services | 6,099 | 8,733
Changes in exchange rates | 19,777 | 10,949
Other | 15,952 | 16,136
Other income | 741 | 0
From currency translation | 742 | 0
From other | – 2 | 0
Total | 42,569 | 35,818

36. Other expenses

In € thousand | 1-12/2016 | 1-12/2015
Other non-technical expenses | 48,806 | 50,243
Property and casualty insurance | 36,888 | 32,947
Health insurance | 6,137 | 1,736
Life insurance | 5,781 | 15,560
of which |  |
Services | 236 | 723
Exchange rate losses | 9,994 | 20,034
Motor vehicle registration | 5,876 | 6,422
Other | 32,699 | 23,063
Other expenses | 4,339 | 5,448
For currency translation | 0 | 1,833
Other | 4,339 | 3,615
Total | 53,145 | 55,691

37. Income taxes

Income tax | 1-12/2016 | 1-12/2015
In € thousand |  |
Actual tax – reporting year | 61,847 | 78,525
Actual tax – previous years | – 11,944 | – 11,086
Deferred tax | – 27,093 | 12,844
Total | 22,810 | 80,283
Reconciliation statement | 1-12/2016 | 1-12/2015
In € thousand |  |
Earnings before taxes | 225,533 | 397,818
Expected tax expenses 1) | 56,383 | 99,455
Adjusted by tax effects from |  |
Tax-free investment income | – 11,513 | – 8,266
Amortisation of goodwill and impairment losses | 4,148 | 3,270
Tax-neutral consolidation effect | 447 | 321
Other non-deductible expenses/other tax-exempt income | 3,931 | 5,397
Changes in tax rates | – 1,054 | 0
Deviations in tax rates | – 5,751 | – 4,764
Taxes for previous years | – 20,318 | – 11,086
Lapse of loss carried forward and other | – 3,463 | – 4,044
Income tax expenses | 22,810 | 80,283
Average effective tax burden In per cent | 10.1 | 20.2

1) | Earnings before taxes multiplied by the corporate income tax rate

The basic corporate income tax rate applied for all segments was 25 per cent. National tax regu-lations in conjunction with life insurance profit participation may lead to a higher than calcu-lated tax rate on profits.

The calculation of deferred tax is based on the specific tax rates of each country, which were between 9 and 25 per cent in this financial year (2015: between 9 and 34 per cent). Changes in tax rates in effect at 31 December 2016 are taken into account.
38. Discontinued operations
The sale of the Italian Group represents a discontinued operation as at the reporting date. With respect to the balance sheet, reference is made here to the statements under note 11.
If an operation is classified as a discontinued operation, the consolidated statement of com-prehensive income for the comparative year is adjusted so that it were as if the operation had been discontinued from the start of the comparative year. The profit and loss of the discontin-ued business line presented in the consolidated income statement is composed as follows:

In € thousand | 20161-01-12
|  | adjusted
Premiums earned (net) | 1,237,722 | 982,379
Technical interest income | 87,797 | 86,699
Other insurance income | 208 | 240
Insurance benefits | – 1,196,318 | – 931,476
Operating expenses | – 107,709 | – 105,666
Other technical expenses | – 9,592 | – 10,807
Technical result | 12,107 | 21,369
Net investment income and income from investment property | 98,564 | 99,162
Other income | 6,664 | 6,708
Reclassification of technical interest income | – 87,797 | – 86,699
Other expenses | – 3,668 | – 5,302
Non-technical result | 13,764 | 13,868
Operating profit/(loss) | 25,871 | 35,237
Impairment losses | – 1,571 | – 2,838
Earnings before taxes | 24,300 | 32,400
Income taxes | – 6,756 | – 9,253
Current profit/(loss) from discontinued operations (after tax) | 17,544 | 23,147
Amortisation and disposal costs | – 70,649 | 0
Profit/(loss) from discontinued operations (after tax) | – 53,105 | 23,147
of which attributable to shareholders of UNIQA Insurance Group AG | – 53,810 | 22,455
of which attributable to non-controlling interests | 705 | 691

The consolidation of expenses and earnings in addition to the elimination of interim results were still carried out for transactions between discontinued and ongoing business lines.
In addition to reflecting current earnings, income from discontinued business lines include the depreciation of fair value in the amount of €72,642 thousand and costs to sell. Income from the valuation of financial instruments available for sale, the fluctuations in value of which are reflected in the equity, amount to €68,920 thousand and are reported in other comprehensive income.

39. Other disclosures
Employees

Personnel expenses | 1-12/2016 | 1-12/2015
In € thousand |  |
Salaries and wages | 418,409 | 393,521
Expenses for termination benefits | 25,411 | 1,784
Pension expenses | 52,128 | 59,257
Expenditure on mandatory social security contributions as well as income-based charges |  |
and compulsory contributions | 108,663 | 105,772
Other social expenditures | 7,968 | 6,342
Total | 612,579 | 566,676
of which sales | 142,007 | 137,534
of which administration | 447,663 | 399,371
of which retirees | 22,909 | 29,772
Average number of employees 1) | 31/12/2016 | 31/12/2015
Total | 12,855 | 13,782
of which sales | 4,630 | 5,397
of which administration | 8,225 | 8,385

1) | The presentation does not include the average number of salaried employees in the discontinued operation.

In € thousand | 1-12/2016 | 1-12/2015
Expenses for defined benefit obligations amounted to: |  |
Members of the Management Board and Executives as defined by Section 80(1) of the |  |
Austrian Stock Corporation Act | 4,982 | 4,716
Other employees | 31,503 | 52,760

Both figures include the expenditure for pensioners and surviving dependants.
The active salaries of the members of the Management Board at UNIQA Insurance Group AG amounted to €4,621 thousand in the reporting year (2015: €3,498 thousand). Existing pension commitments to the members of the Management Board amounted to €3,308 thousand (2015: €681 thousand). The amount expended on pensions in the reporting year for former members of the Management Board and their survivors was €815 thousand (2015: €2,751 thousand).
The compensation to the members of the Supervisory Board for their work in the 2015 fi-nancial year was €425 thousand. Provisions in the amount of €470 thousand have been recog-nised for the remuneration to be paid for this work in the 2016 financial year. The amount paid out in attendance fees and cash expenditures in the financial year was €77 thousand (2015: €49 thousand).
There are no advance payments or loans to or liabilities for members of the Management Board and the Supervisory Board.
Share-based remuneration agreement with cash settlement
In the 2013 financial year, the UNIQA Group introduced a share-based remuneration pro-gramme for members of the Management Board of UNIQA Insurance Group AG (UIG) and for the members of the Management Board of UNIQA Österreich Versicherungen AG and UNIQA International AG. In line with this programme, qualified members of the Management Board were granted virtual UIG shares between 2013 and 2016, which give them the right to a cash payment after the end of the benefit period, provided certain targets are met, and maximum limits have been agreed. The programme stipulates an obligation to make an annual investment in UNIQA shares with a holding period of four years in each case. A total of 990,291 virtual shares had reached maturity at 31 December 2016.
Payment for the virtual shares is predicated on certain performance indicators having been met over a period of time equal to four financial years in each case.
Performance target 1

Total Shareholder Return (TSR = (Final quote – initial quote + dividends) : initial quote): aver-age rank of the TSR of the UNIQA ordinary share among the companies managed in the DJ EuroStoxx TMI Insurance index during the performance period (market-based criterion for option grant).
Performance target 2
Return on Equity (ROE = profit/loss for the year : Equity at 31 December, “after non-controlling interests” when relevant): average rank of the ROE of UNIQA among the companies managed in the DJ EuroStoxx TMI Insurance index during the performance period (non-market-based criterion for option grant).
Performance target 3
Property and casualty insurance net combined ratio (CoR = sum of the net loss ratio and the net expense ratio in the IFRS consolidated financial statement): extent to which goals with respect to the targeted amount were achieved by the end of the performance period (non-market-based criterion for option grant).
Performance target 4
Return on Risk Capital (RoRC = annual profit/loss after taxes in relation to required equity): extent to which goals with respect to the targeted amount were achieved by the end of the per-formance period (non-market-based criterion for option grant).
Only performance targets 1 and 2 are to be considered for the performance period 2013– 2016, each weighted 50 per cent. The degree of target achievement was determined as follows:

Rank | TSR target | RoRC target
≤ 6 | 200% | 200%
7 | 180% | 180%
8 | 160% | 160%
9 | 140% | 140%
10 | 120% | 120%
11 | 100% | 100%
12 | 90% | 90%
13 | 80% | 80%
14 | 70% | 70%
15 | 60% | 60%
16 | 50% | 50%
≥ 17 | 0% | 0%

Performance targets 1, 3 and 4 will be considered for performance periods 2014–2017, 2015– 2018 and 2016–2019, which are all worth a third of the total and may have a value no greater than 200 per cent and no less than 50 per cent. The calibration of TSR targets does not differ from the target calibration determined for the performance period 2013–2016. The following targets, which must be met by the end of the performance period, were set for performance targets 3 and 4, whereby meeting the target is assigned a target value of 100 per cent:

Relevant financial year | CoR target | RoRC target
2017 | 97.5% | 6.6%
2018 | 96.3% | 8.3%
2019 | 95.3% | 9.7%

The concrete degree of target achievement with respect to performance goal 3 was calculated as follows: Degree of target achievement = CoR’s change in ACTUAL compared to the previous year / planned changes to the CoR compared to the previous year = (x – Actual-CoR)/(Plan-CoR – Actual-CoR). The first year of a tranche’s performance period is taken to be the previous year. The degree of target achievement for performance goal 4 is calculated as follows: Degree of target achievement = Actual-RoRC : Plan-RoRC.
The payment amount in the first half of the year following the end of the performance peri-od is calculated as the product of the following parameters (payment = A B C):

• | A = Number of virtual shares awarded for the performance period. The virtual number of shares is calculated by dividing the total awarded volume per year in euros by UIG’s average share price in the six months prior to the first month of the financial year relevant

to the per-formance evaluation. (For cases in which the authorised party dies before the performance period ends, the number of virtual shares will be reduced p.r.t. with respect to the performance period up to the date of death compared to the entire performance period.)

• | B = Average insurance provisions share price. Valuation of virtual shares at the time of pay-ment will be undertaken in each case with respect to UIG’s average share price in the six-month period prior to the end of the last month of the financial year relevant to the perfor-mance evaluation (daily close on trading days).

• | C = Degree of target achievement. The degree of target achievement corresponds to the weighted degree of target achievement of the respective target value at the end of the perfor-mance period.

The fair value of share-based remuneration at the reporting date amounts to €2,868 thousand (2015: €531 thousand).
The obligations from share-based remuneration are stated under “Other provisions” (note 28) and are also included under the statements on “Related party transactions – individuals”.
Group holding company
The parent company of UNIQA is UNIQA Insurance Group AG. In addition to its duties as
Group holding company, this company also performs the duties of a group reinsurer.
Related companies and persons
Companies in the UNIQA Group maintain various relationships with related companies and persons.
In accordance with IAS 24, related companies are identified as those companies which ei-ther exercise a controlling or crucial influence on UNIQA. The group of companies also includes the non-consolidated subsidiaries, associates and joint ventures of UNIQA.
The related individuals include the members of management holding key positions for the purposes of IAS 24 along with their close family members. This also includes in particular the members of management in key positions at those companies which either exercise a control-ling or crucial influence on UNIQA, along with their close family members.
Related party transactions – companies

| Companies with | Affiliated but not | Associated |  |
| significant influence | consolidated | companies of | Other related |
In € thousand | on UNIQA Group | companies | UNIQA Group | parties | Total
Transactions 2016 |  |  |  |  |
Premiums written (gross) | 0 | 463 | 1,420 | 29,724 | 31,607
Interest income due to loans with companies that are related parties | 0 | 79 | 0 | 252 | 331
Interest income and expenses arising from loans with entities that are related |  |  |  |  |
parties | 0 | 0 | 0 | – 2,388 | – 2,388
Interest income from loans with banks that are related parties and from |  |  |  |  |
investments in companies that are related parties | 1,371 | 0 | 9,511 | 4,105 | 14,987
Interest expenses arising from loans with banks that are related parties and from |  |  |  |  |
investments in entities that are related parties | – 309 | 0 | 0 | – 20 | – 328
At 31 December 2016 |  |  |  |  |
Investments at fair value | 155,653 | 10,166 | 532,129 | 57,202 | 755,150
Bank deposits | 276,278 | 0 | 0 | 147,016 | 423,294
| Companies with | Affiliated but not | Associated |  |
| significant influence | consolidated | companies of | Other related |
In € thousand | on UNIQA Group | companies | UNIQA Group | parties | Total
Transactions 2015 |  |  |  |  |
Premiums written (gross) | 0 | 2,001 | 1,091 | 33,821 | 36,913
Interest income and expenses arising from loans with entities that are related |  |  |  |  |
parties | 0 | 1,271 | 45 | 1,530 | 2,847
Interest income from loans with banks that are related parties and from |  |  |  |  |
investments in companies that are related parties | 0 | 490 | 7,295 | 3,522 | 11,306
At 31 December 2015 |  |  |  |  |
Investments at fair value | 135,848 | 11,820 | 445,464 | 133,323 | 726,455
Bank deposits | 0 | 0 | 0 | 294,286 | 294,286

Related party transactions – individuals

In € thousand | 1-12/2016 | 1-12/2015
Premiums written (gross) | 1,861 | 1,066
Salaries and short term benefits 1) | 5,168 | 4,526
Pension expenses | 407 | 819
Compensation on termination of employment contract | 2,513 | – 324
Expenditures for share-based payments | 2,495 | 1,941
Other income | 203 | 236

1) | This item includes fixed and variable Management Board remuneration paid in the financial year and remuneration of the Supervisory Board.

In 2017, it is expected that the members of the Management Board of the UNIQA Insurance Group AG will be paid a variable remuneration (STI) in the amount of €1,739 thousand for the 2016 financial year.
Other financial obligations and contingent liabilities

In € thousand | 31/12/2016 | 31/12/2015
Other contingent liabilities |  |
Austria | 0 | 13,262
other countries | 0 | 273
Total | 0 | 13,535

Ukraine (non-life) – option to purchase granted
The shares held by UNIQA in the UNIQA Insurance Company, Private Joint Stock Company (Kiev, Ukraine) were acquired in 2006 from the Ukraine-based Closed JSC Credo-Classic In-surance Company and have been gradually increased to the current level of 92.23 per cent. The existing option agreements with the two remaining minority shareholders were agreed again in 2015. This gives UNIQA the option of acquiring further shares in the company from the local minority shareholders based on previously agreed purchase price formulas in option windows in 2017 and 2020.
SIGAL Group – option to purchase granted
Shares held by UNIQA in the SIGAL UNIQA Group AUSTRIA sh.a. have likewise been gradually increased to the current level of 86.93 per cent. The existing option agreements with the two remaining minority shareholders were agreed again in 2016. This gives UNIQA the option of acquiring further shares in the company from the local minority shareholders based on previ-ously agreed purchase price formulas in an option window between July 2017 and June 2020.
Lease expenses

In € thousand | 1-12/2016 | 1-12/2015
Current lease expenses | 3,018 | 3,664
Future leasing rates |  |
up to 1 year | 2,186 | 0
more than 1 year up to 5 years | 4,363 | 0
more than 5 years | 0 | 0
Total | 6,549 | 0

Expenses for the auditor of the financial statements
The auditor fees in the financial year were €1,567 thousand (2015: €1,965 thousand); of which €485 thousand (2015: €307 thousand) is attributable to the annual audit, €859 thousand (2015: €1,590 thousand) to other auditing services and €223 thousand (2015: €68 thousand) to other general services.
SIGNIFICANT EVENTS AFTER THE REPORTING DATE
Merger of RZB and RBI
On 24 January 2017 the decision was taken in an extraordinary General Meeting of Raiffeisen Bank International AG (RBI) to proceed with a merger of Raiffeisen Bank International AG and Raiffeisen Zentralbank Österreich Aktiengesellschaft (RZB). UNIQA holds 2.5 per cent of RZB. The exchange ratio of RZB shares to RBI shares is 1 : 31.55. To achieve this exchange ratio, RBI share capital was increased excluding subscription rights. Following the merger, UNIQA holds 1.7 per cent of RBI.
Affiliated companies and associates

| Company | Type | Location | Equity interest at | Equity interest at
|  |  |  | 31/12/2016 | 31/12/2015
|  |  |  | In per cent | In per cent
| Domestic insurance companies |  |  |  |
| UNIQA Insurance Group AG (Group Holding Company) |  | Vienna |  |
| UNIQA Österreich Versicherungen AG | Fully consolidated | Vienna | 100.0 | 100.0
| Salzburger Landes-Versicherung AG | Fully consolidated | Salzburg | 0.0 | 100.0
| (Merger: 3/10/2016) |  |  |  |
| Raiffeisen Versicherung AG (Merger: 3/10/2016) | Fully consolidated | Vienna | 0.0 | 100.0
| FINANCE LIFE Lebensversicherung AG |  |  |  |
| (Merger: 3/10/2016) | Fully consolidated | Vienna | 0.0 | 100.0
| SK Versicherung Aktiengesellschaft | At equity | Vienna | 25.0 | 25.0
| Foreign insurance companies |  |  |  |
| UNIQA Assurances SA | Fully consolidated | Switzerland, Geneva | 100.0 | 100.0
| UNIQA Re AG | Fully consolidated | Switzerland, Zurich | 100.0 | 100.0
| UNIQA Assicurazioni S.p.A. (classified as asset held for sale | Fully consolidated | Italy, Milan | 99.7 | 99.7
| since 2/12/2016) |  |  |  |
| UNIQA poisťovňa a.s. | Fully consolidated | Slovakia, Bratislava | 99.9 | 99.9
| UNIQA pojišťovna, a.s. | Fully consolidated | Czech Republic, Prague | 100.0 | 100.0
| UNIQA osiguranje d.d. | Fully consolidated | Croatia, Zagreb | 100.0 | 100.0
| UNIQA Towarzystwo Ubezpieczeń S.A. | Fully consolidated | Poland, Lodz | 98.6 | 98.6
| UNIQA Towarzystwo Ubezpieczeń na Życie S.A. | Fully consolidated | Poland, Lodz | 99.8 | 99.8
| UNIQA Biztosító Zrt. | Fully consolidated | Hungary, Budapest | 100.0 | 100.0
| UNIQA Versicherung AG | Fully consolidated | Liechtenstein, Vaduz | 100.0 | 100.0
| UNIQA Previdenza S.p.A. (classified as asset held for sale | Fully consolidated | Italy, Milan | 99.7 | 99.7
| since 2/12/2016) |  |  |  |
| UNIQA osiguranje d.d. | Fully consolidated | Bosnia and Herzegovina, | 99.8 | 99.8
|  |  | Sarajevo |  |
| UNIQA Insurance plc | Fully consolidated | Bulgaria, Sofia | 99.9 | 99.9

| UNIQA Life Insurance plc | Fully consolidated | Bulgaria, Sofia | 99.6 | 99.6
| UNIQA životno osiguranje a.d. | Fully consolidated | Serbia, Belgrade | 100.0 | 100.0
| UNIQA Insurance company, Private Joint Stock Company | Fully consolidated | Ukraine, Kiev | 100.0 | 100.0
| UNIQA LIFE Private Joint Stock Company | Fully consolidated | Ukraine, Kiev | 100.0 | 100.0
| UNIQA životno osiguranje a.d. | Fully consolidated | Montenegro, Podgorica | 100.0 | 100.0
| UNIQA neživotno osiguranje a.d. | Fully consolidated | Serbia, Belgrade | 100.0 | 100.0
| UNIQA neživotno osiguranje a.d. | Fully consolidated | Montenegro, Podgorica | 100.0 | 100.0
| UNIQA Asigurari S.A. | Fully consolidated | Romania, Bucharest | 100.0 | 100.0
| UNIQA Asigurari De Viata S.A. | Fully consolidated | Romania, Bucharest | 100.0 | 100.0
| Raiffeisen Life Insurance Company LLC | Fully consolidated | Russia, Moscow | 75.0 | 75.0
| UNIQA Life S.p.A. (classified as asset held for sale since | Fully consolidated | Italy, Milan | 89.7 | 89.7
| 2/12/2016) |  |  |  |
| SIGAL UNIQA Group AUSTRIA sh.a. | Fully consolidated | Albania, Tirana | 86.9 | 86.9
| UNIQA AD Skopje | Fully consolidated | Macedonia, Skopje | 86.9 | 86.9
| SIGAL LIFE UNIQA Group AUSTRIA sh.a. | Fully consolidated | Albania, Tirana | 86.9 | 86.9
| SIGAL UNIQA Group AUSTRIA sh.a. | Fully consolidated | Kosovo, Pristina | 86.9 | 86.9
| UNIQA Life AD Skopje | Fully consolidated | Macedonia, Skopje | 86.9 | 86.9
| SIGAL LIFE UNIQA Group AUSTRIA sh.a | Fully consolidated | Kosovo, Pristina | 86.9 | 86.9
| SH.A.F.P SIGAL LIFE UNIQA Group AUSTRIA sh.a. | Fully consolidated | Albania, Tirana | 44.3 | 44.3
| Group domestic service companies |  |  |  |
| UNIQA Real Estate Management GmbH | Fully consolidated | Vienna | 100.0 | 100.0
| Versicherungsmarkt-Servicegesellschaft m.b.H. | Fully consolidated | Vienna | 100.0 | 100.0
| Agenta Risiko- und Finanzierungsberatung | Fully consolidated | Vienna | 100.0 | 100.0
| Gesellschaft m.b.H. |  |  |  |

| Company | Type | Location | Equity interest at | Equity interest at
|  |  |  | 31/12/2016 | 31/12/2015
|  |  |  | In per cent | In per cent
| Raiffeisen Versicherungsmakler Vorarlberg GmbH | At equity | Bregenz | 0.0 | 50.0
| (Deconsolidation: 12/11/2016) |  |  |  |
| Dr E. Hackhofer EDV-Softwareberatung Gesellschaft m.b.H. | Fully consolidated | Vienna | 0.0 | 100.0
| (Merger: 1/7/2016) |  |  |  |
| UNIQA IT Services GmbH | Fully consolidated | Vienna | 100.0 | 100.0
| UNIQA Capital Markets GmbH | Fully consolidated | Vienna | 100.0 | 100.0
| call us Assistance International GmbH | Fully consolidated | Vienna | 50.2 | 50.2
| UNIQA International AG | Fully consolidated | Vienna | 100.0 | 100.0
| UNIQA internationale Beteiligungs-Verwaltungs GmbH | Fully consolidated | Vienna | 100.0 | 100.0
| Assistance Beteiligungs-GesmbH | Fully consolidated | Vienna | 64.0 | 64.0
| UNIQA Real Estate Beteiligungsverwaltung GmbH | Fully consolidated | Vienna | 100.0 | 100.0
| UNIQA Real Estate Finanzierungs GmbH | Fully consolidated | Vienna | 100.0 | 100.0
| UNIQA Group Audit GmbH | Fully consolidated | Vienna | 100.0 | 100.0
| Valida Holding AG | At equity | Vienna | 40.1 | 40.1
| RHG Management GmbH | Fully consolidated | Vienna | 100.0 | 100.0
| UNIQA Finanzbeteiligung GmbH | Fully consolidated | Vienna | 100.0 | 100.0
| Group foreign service companies |  |  |  |
| UNIQA Raiffeisen Software Service Kft. | Fully consolidated | Hungary, Budapest | 60.0 | 60.0
| InsData spol. s r.o. | Fully consolidated | Slovakia, Nitra | 98.0 | 98.0
| UNIPARTNER s.r.o. | Fully consolidated | Slovakia, Bratislava | 99.9 | 99.9
| UNIQA InsService spol. s r.o. | Fully consolidated | Slovakia, Bratislava | 99.9 | 99.9
| UNIQA Ingatlanhasznosító Kft. | Fully consolidated | Hungary, Budapest | 100.0 | 100.0
| UNIQA Számitástechnikai Szolgáltató Kft. | Fully consolidated | Hungary, Budapest | 100.0 | 100.0
| Vitosha Auto OOD | Fully consolidated | Bulgaria, Sofia | 99.8 | 99.8
| UNIQA Raiffeisen Software Service S.R.L. | Fully consolidated | Romania, Cluj-Napoca | 60.0 | 60.0
| sTech d.o.o | Fully consolidated | Serbia, Belgrade | 100.0 | 100.0
| DEKRA-Expert Műszaki Szakértői Kft. | At equity | Hungary, Budapest | 50.0 | 50.0
| Financial and strategic domestic shareholdings |  |  |  |
| Medial Beteiligungs-Gesellschaft m.b.H. (classified as asset |  |  |  |
| held for sale since 30/9/2015) | At equity | Vienna | 29.6 | 29.6
| UNIQA Leasing GmbH | At equity | Vienna | 25.0 | 25.0
| PremiQaMed Holding GmbH | Fully consolidated | Vienna | 100.0 | 100.0
| PremiQaMed Privatkliniken GmbH | Fully consolidated | Vienna | 100.0 | 100.0
| Ambulatorien Betriebsgesellschaft m.b.H. | Fully consolidated | Vienna | 100.0 | 100.0
| STRABAG SE | At equity | Villach | 14.3 | 13.8
| PremiQaMed Management GmbH | Fully consolidated | Vienna | 100.0 | 100.0
| UNIQA Beteiligungs-Holding GmbH | Fully consolidated | Vienna | 100.0 | 100.0
| UNIQA Erwerb von Beteiligungen Gesellschaft m.b.H. | Fully consolidated | Vienna | 100.0 | 100.0
| Diakonissen & Wehrle Privatklinik GmbH | Fully consolidated | Gallneukirchen | 60.0 | 60.0
| PremiQaMed Beteiligungs GmbH | Fully consolidated | Vienna | 100.0 | 100.0
| Goldenes Kreuz Privatklinik BetriebsGmbH (Initial | Fully consolidated | Vienna | 75.0 |
| consolidation: 7/7/2016) |  |  |  |
| Real-estate companies |  |  |  |
| UNIQA Real Estate CZ, s.r.o. | Fully consolidated | Czech Republic, Prague | 100.0 | 100.0
| UNIQA Real s.r.o. | Fully consolidated | Slovakia, Bratislava | 100.0 | 100.0
| UNIQA Real II s.r.o. (Deconsolidation: 12/8/2016) | Fully consolidated | Slovakia, Bratislava | 0.0 | 100.0

| UNIQA Immobilien-Projekterrichtungs GmbH | Fully consolidated | Vienna | 100.0 | 100.0
| Raiffeisen evolution project development GmbH | At equity | Vienna | 0.0 | 20.0
| (Deconsolidation: 22/12/2016) |  |  |  |
| DIANA-BAD Errichtungs- und Betriebs GmbH | At equity | Vienna | 33.0 | 33.0
| UNIQA Real Estate GmbH | Fully consolidated | Vienna | 100.0 | 100.0

Company | Type | Location | Equity interest at | Equity interest at
|  |  | 31/12/2016 | 31/12/2015
|  |  | In per cent | In per cent
PremiQaMed Immobilien GmbH | Fully consolidated | Vienna | 100.0 | 100.0
UNIQA Real Estate Zweite Beteiligungsverwaltung GmbH | Fully consolidated | Vienna | 100.0 | 100.0
Design Tower GmbH | Fully consolidated | Vienna | 100.0 | 100.0
Aspernbrückengasse Errichtungs- und Betriebs GmbH | Fully consolidated | Vienna | 99.0 | 99.0
UNIQA Real Estate Holding GmbH | Fully consolidated | Vienna | 100.0 | 100.0
UNIQA Real Estate Dritte Beteiligungsverwaltung GmbH | Fully consolidated | Vienna | 100.0 | 100.0
UNIQA Real Estate Vierte Beteiligungsverwaltung GmbH | Fully consolidated | Vienna | 100.0 | 100.0
“Hotel am Bahnhof” Errichtungs GmbH & Co KG | Fully consolidated | Vienna | 100.0 | 100.0
GLM ErrichtungsGmbH | Fully consolidated | Vienna | 100.0 | 100.0
EZL Entwicklung Zone Lassallestraße GmbH & Co. KG | Fully consolidated | Vienna | 100.0 | 100.0
Fleischmarkt Inzersdorf Vermietungs GmbH | Fully consolidated | Vienna | 100.0 | 100.0
Praterstraße Eins Hotelbetriebs GmbH | Fully consolidated | Vienna | 100.0 | 100.0
UNIQA Real Estate Inlandsholding GmbH | Fully consolidated | Vienna | 100.0 |
(Initial consolidation: 14/6/2016) |  |  |  |
UNIQA Plaza Irodaház és Ingatlankezelő Kft. | Fully consolidated | Hungary, Budapest | 100.0 | 100.0
Floreasca Tower SRL | Fully consolidated | Romania, Bucharest | 100.0 | 100.0
Pretium Ingatlan Kft. | Fully consolidated | Hungary, Budapest | 100.0 | 100.0
UNIQA Szolgáltató Kft. | Fully consolidated | Hungary, Budapest | 100.0 | 100.0
UNIQA poslovni centar korzo d.o.o. | Fully consolidated | Croatia, Rijeka | 100.0 | 100.0
UNIQA-Invest Kft. | Fully consolidated | Hungary, Budapest | 100.0 | 100.0
Knesebeckstraße 8– 9 Grundstücksgesellschaft mbH | Fully consolidated | Germany, Berlin | 100.0 | 100.0
UNIQA Real Estate Bulgaria EOOD | Fully consolidated | Bulgaria, Sofia | 100.0 | 100.0
UNIQA Real Estate BH nekretnine, d.o.o. (Merger: | Fully consolidated | Bosnia and Herzegovina, | 0.0 | 100.0
29/12/2016) |  | Sarajevo |  |
UNIQA Real Estate d.o.o. | Fully consolidated | Serbia, Belgrade | 100.0 | 100.0
Renaissance Plaza d.o.o. | Fully consolidated | Serbia, Belgrade | 100.0 | 100.0
IPM International Property Management Kft. | Fully consolidated | Hungary, Budapest | 100.0 | 100.0
UNIQA Real Estate Polska Sp. z o.o. | Fully consolidated | Poland, Warsaw | 100.0 | 100.0
Black Sea Investment Capital LLC | Fully consolidated | Ukraine, Kiev | 100.0 | 100.0
LEGIWATON INVESTMENTS Limited Company | Fully consolidated | Cyprus, Limassol | 100.0 | 100.0
UNIQA Real III, spol. s r.o. | Fully consolidated | Slovakia, Bratislava | 100.0 | 100.0
UNIQA Real Estate BV | Fully consolidated | Netherlands, Hoofddorp | 100.0 | 100.0
Reytarske LLC | Fully consolidated | Ukraine, Kiev | 100.0 | 100.0
ALBARAMA Limited Company | Fully consolidated | Cyprus, Nikosia | 100.0 | 100.0
AVE-PLAZA LLC | Fully consolidated | Ukraine, Kharkiv | 100.0 | 100.0
Asena LLC | Fully consolidated | Ukraine, Nikolaev | 100.0 | 100.0
BSIC Holding LLC (Deconsolidation: 12/1/2016) | Fully consolidated | Ukraine, Kiev | 0.0 | 100.0
Sedmi element d.o.o. (Merger: 1/1/2016) | Fully consolidated | Croatia, Zagreb | 0.0 | 100.0
Deveti element d.o.o. (Merger: 1/1/2016) | Fully consolidated | Croatia, Zagreb | 0.0 | 100.0
Kremser Landstraße Projektentwicklung GmbH | Fully consolidated | Vienna | 100.0 | 100.0
Schöpferstrasse Projektentwicklung GmbH | Fully consolidated | Vienna | 100.0 | 100.0
“BONADEA” Immobilien GmbH | Fully consolidated | Vienna | 100.0 | 100.0

“Graben 27– 28” Besitzgesellschaft m.b.H. | Fully consolidated | Vienna | 100.0 | 100.0
Hotel Burgenland Betriebs GmbH | Fully consolidated | Vienna | 100.0 | 100.0
R-FMZ Immobilienholding GmbH | Fully consolidated | Vienna | 100.0 | 100.0
Neue Marktgasse Einkaufspassage Stockerau GmbH | Fully consolidated | Vienna | 100.0 | 100.0
DEVELOP Baudurchführungs- und | Fully consolidated | Vienna | 100.0 | 100.0
Stadtentwicklungs-Gesellschaft m.b.H. |  |  |  |
Raiffeisen-Fachmarktzentrum Mercurius GmbH | Fully consolidated | Vienna | 100.0 | 100.0
Raiffeisen-Fachmarktzentrum ZWEI GmbH | Fully consolidated | Vienna | 100.0 | 100.0
Raiffeisen-Fachmarktzentrum Ivesis GmbH | Fully consolidated | Vienna | 100.0 | 100.0
Raiffeisen-Fachmarktzentrum VIER GmbH | Fully consolidated | Vienna | 100.0 | 100.0
Raiffeisen-Fachmarktzentrum SIEBEN GmbH | Fully consolidated | Vienna | 100.0 | 100.0
R-FMZ “MERCATUS” Holding GmbH | Fully consolidated | Vienna | 100.0 | 100.0

Approval for publication
These consolidated financial statements were prepared by the Management Board as at the date of signing and approved for publication.
Declaration of the legal representatives
Pursuant to Section 82(4) of the Austrian Stock Exchange Act, the Management Board of UNIQA Insurance Group AG hereby confirms, that, to the best of our knowledge, the consoli-dated financial statements, which were prepared in accordance with the relevant accounting standards, give a true and fair view of the financial position, financial performance and cash flows of the group, and that the Group management report describes the relevant risks and uncertainties which the Group faces.
Vienna, 10 March 2017