Not only in Austria 600 jobs fewer, also in the east. Branch offices will be reduced by a third.
UNIQA boss Andreas Brandstetter
Despite the Covid 19 pandemic, the listed domestic insurance group UNIQA posted good results in the first nine months of 2020. With a pre-tax profit of 159 million euros, the third quarter is “one of the best in the company's history. We are robust in our core business, but we have one issue on the cost side, ”emphasized CEO Andreas Brandstetter during the online presentation of the results.
Brandstetter brings the problem of Austria's second largest insurance group to the point. With the new “Strategy 3.0”, the group wants to get fitter by 2025. The expense ratio is expected to drop from the current 27 percent of premiums to below 25 percent. The return on equity can be increased to eight to ten percent.
The company is investing heavily in digitization in order to “take complexity out of administration and reduce manual intervention,” explained Brandstätter. This means that the administration is simplified and streamlined.
A few weeks before Christmas, that doesn't mean anything good for the workforce. As already reported online, 600 of the current 6000 employees in Austria will be cut by the end of 2022. 150 jobs through natural departures, a social program was set up for the rest of those affected. 110 million euros are earmarked for this, and UNIQA aims to save 50 million euros per year. The downsizing affects all areas and federal states.
Hundreds of jobs are also being cut in Eastern Europe. Details will not be announced until mid-2021. With the takeover of the AXA business in Poland, the Czech Republic and Slovakia, the group currently employs almost 15,000 people. Massive cost savings are planned not only at AXA, but in all 15 CEE countries.
Less branch offices
The number of branch offices will also be reduced. Brandstätter announced the closure of 35 of the 105 locations across Austria. Nevertheless, the presence on site will be maintained, but not always through spatial facilities, but through sales representatives and general agencies. “We're not saving money on our customers,” assured the UNIQA boss. Around 100 new employees are being sought for the first half of 2021 to expand digitization.
The corona crisis has cost the company more than 70 million euros in addition to business interruptions and canceled events. On the other hand, the lockdown resulted in less vehicle damage, leisure accidents and visits to the doctor. So that the technical result from the actual insurance business doubled to 125 million. Goodwill amortization in Romania, shareholders will have to forego a dividend for 2020. Goodwill amortization in Romania, Serbia and Bulgaria burden the balance sheet with 100 million euros.
