38. Error correction and change in accounting policies pursuant to IAS 8

A change in the impairment test model

A change in the impairment test model results in an impairment of goodwill allocated to CGU Bulgaria and Romania in the amount of €54,600 thousand for the 2019 financial year. In the revised impairment test the determination of the cash flow in the perpetuity and the discount rate has been adjusted.

The adjustment is implemented based on an audit by the Austrian Audit Agency for Financial Reporting (OePR). This showed that the growth assumptions used in the model and the discount rates also need to be changed.

Following review and evaluation of these findings by UNIQA Insurance Group AG, there is an impairment of goodwill of CGU Bulgaria in the amount of €19,200 thousand and of CGU Romania in the amount of €35,400 thousand.

Adjustments of deferred profit participation

In preparation for the initial application of 17 (Insurance Contracts) which is to be applied from 1 January 2023, it was discovered that deferred was not accounted for in health insurance. Due to this error correction, a provision for deferred profit participation is being recognised – with retroactive effect from 1 January 2019 – for contracts in health insurance that involve . The amount of the provision for the deferred profit participation is determined by taking into account the amounts from endowed profit participations deducted in previous years. In the course of this correction the same content is also being changed retroactively in the accounting method for life insurance, in order to achieve a uniform presentation. For this purpose – as in health insurance – a deduction of the endowed profit participations of the previous years is made. The corrections and changes in accounting policies relate exclusively to the UNIQA Austria segment.

Equity and liabilities

In € thousand

1/1/2019 published

Change in the impairment test model

Deferred

1/1/2019 adjusted

Equity

 

 

 

 

Portion attributable to shareholders of UNIQA Insurance Group AG

 

 

 

 

Subscribed capital and capital reserves

1,789,923

 

 

1,789,923

Treasury shares

–16,614

 

 

–16,614

Accumulated results

1,198,803

 

24,896

1,223,699

 

2,972,112

 

24,896

2,997,008

14,438

 

 

14,438

 

2,986,550

 

24,896

3,011,446

Liabilities

 

 

 

 

Technical provisions

17,336,358

 

–12,143

17,324,215

Deferred tax liabilities

254,999

 

–12,752

242,246

 

25,517,251

 

–24,896

25,492,355

Total equity and liabilities

28,503,801

0

0

28,503,801

Assets

In € thousand

31/12/2019 published

Change in the impairment test model

Deferred profit participation

31/12/2019 adjusted

Intangible assets

1,641,116

–54,600

 

1,586,516

Total assets

28,728,409

–54,600

 

28,673,809

Equity and liabilities

In € thousand

31/12/2019 published

Change in the impairment test model

Deferred

31/12/2019 adjusted

Equity

 

 

 

 

Portion attributable to shareholders of UNIQA Insurance Group AG

 

 

 

 

Subscribed capital and capital reserves

1,789,923

 

 

1,789,923

Treasury shares

–16,614

 

 

–16,614

Accumulated results

1,627,714

–54,600

21,296

1,594,410

 

3,401,023

–54,600

21,296

3,367,719

Non-controlling interests

19,399

 

 

19,399

 

3,420,422

–54,600

21,296

3,387,118

Liabilities

 

 

 

 

Technical provisions

17,791,006

 

–3,106

17,787,900

Deferred tax liabilities

375,729

 

–18,190

357,539

 

25,307,986

 

–21,296

25,286,690

Total equity and liabilities

28,728,409

–54,600

0

28,673,809

Consolidated income statement

In € thousand

1–12/2019 published

Change in the impairment test model

Deferred profit participation

1–12/2019
adjusted

 

 

 

 

Gross

–3,756,264

 

–9,023

–3,765,286

 

–3,657,078

 

–9,023

–3,666,100

Technical result

99,526

 

–9,023

90,504

 

 

 

 

 

Operating profit/(loss)

354,872

 

–9,023

345,850

Amortisation of VBI and impairment of goodwill

–4,562

–54,600

 

–59,162

Earnings before taxes

295,667

–54,600

–9,023

232,045

Income taxes

–59,172

 

2,219

–56,953

Profit/(loss) for the period

236,496

–54,600

–6,804

175,092

of which attributable to shareholders of UNIQA Insurance Group AG

232,360

–54,600

–6,804

170,956

of which attributable to

4,135

 

 

4,135

 

 

 

 

 

Earnings per share (in €)

0.76

 

 

0.56

IFRSs
International Financial Reporting Standards. Since 2002 the term IFRSs has applied to the overall concept of standards adopted by the International Accounting Standards Board. Standards already adopted beforehand continue to be referred to as International Accounting Standards (IASs).
Profit participation
Policyholders have a reasonable right under statutory and contractual regulations to the company’s surplus profits generated in life and health insurance. The level of this profit participation is determined again each year.
Profit participation
Policyholders have a reasonable right under statutory and contractual regulations to the company’s surplus profits generated in life and health insurance. The level of this profit participation is determined again each year.
Profit participation
Policyholders have a reasonable right under statutory and contractual regulations to the company’s surplus profits generated in life and health insurance. The level of this profit participation is determined again each year.
Non-controlling interests
Shares in the profit/(loss) that are not attributable to the Group but rather to companies outside the Group that hold shares in affiliated companies.
Profit participation
Policyholders have a reasonable right under statutory and contractual regulations to the company’s surplus profits generated in life and health insurance. The level of this profit participation is determined again each year.
Insurance benefits
Total of insurance benefit payments and changes in the claims provision during the financial year in connection with direct insurance and reinsurance contracts (gross). This involves net insurance benefits when reduced by the amount ceded to reinsurance companies. This does not include claims settlement expenses and changes in the provisions for claims settlement expenses.
Non-controlling interests
Shares in the profit/(loss) that are not attributable to the Group but rather to companies outside the Group that hold shares in affiliated companies.