OREANDA-NEWS. January 20, 2016. UNIQA Insurance Group AG (UNIQA) continues to remain on track. The details of the preliminary annual results for 2015 will be released at the beginning of March. Currently UNIQA has a strong equity base reporting an economic capital ratio according to Solvency II (EIOPA standard formula) of over 180 per cent, and high operating profitability.

Based on this solid foundation, UNIQA’s management board has today decided with its supervisory board approval to launch the extensive investment programme in 2016 in order to align processes and products with customer requirements and expectations that are being transformed by the digital revolution. This largest investment programme in the company’s history will be spread over several years and comprises a total volume of around €500 million. The investments, a considerable portion of which are to be made in 2016, will primarily be employed for the redesign of the business model and the modernisation of IT systems that this requires. The innovation programme therefore lays the foundation for UNIQA to successfully continue on its planned growth trajectory under radically different conditions in the future.

A considerable portion of these future investments will take effect in 2016 and therefore influence the earnings forecast for the 2016 financial year. In combination with the persistently difficult conditions, such as the still-moderate economic outlook, ongoing low interest rates, decreasing investment income and political uncertainty in individual markets, UNIQA expects – dependant on the investment programme’s implementation - significantly reduced earnings in the 2016 financial year compared to 2015’s strong earnings.

UNIQA intends to continue its since 2012 consistently implemented progressive dividend policy with annual increases of the distribution per share despite the considerable future investments and challenging economic environment provided that the capital ratio remains solid.