2. Investment property

Land and buildings, including buildings on third-party land, held as long-term investments to generate rent revenue and/or for the purpose of capital appreciation are measured in accordance with the cost model. The investment property is subject to straight line depreciation over the useful life of 5 to 80 years and is recognised under the item “Net investment income”.

The is determined using reports prepared by independent experts. These expert reports are prepared based on the income approach. It requires making assumptions about the future, 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. Property value, location, usable area and usage category for the property are also taken into account.

For this reason, all measurements of the fair value for the land and buildings come under Level 3 of the hierarchy in accordance with 13. The measurement techniques respond 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 assumptions and parameters remained unchanged.

Conversely, any reduction in the expected utilisation or the expected rental charges would, for instance, result in a decrease in the values ascertained for the land and buildings if the other assumptions and parameters remained unchanged. The measurement-related assumptions and parameters are ascertained at each key date based on the by management with due respect to the current prevailing market conditions.

The effects of Covid-19

UNIQA’s real estate portfolio is oriented mainly towards office space. In addition, UNIQA holds properties in retail, residential and hotel sectors. An analysis performed showed no material impact related to Covid-19 on carrying amounts and current income and expenses.

Impairment tests led to minor impairments in the hotel sector. Current income was affected by minor rent reductions, which were offset by lower maintenance expenses.

In € thousand

 

At 1 January 2019

1,697,905

Currency translation

3,242

Additions

61,997

Disposals

–41,908

Reclassifications

10,596

Reclassifications held for sale

78,049

At 31 December 2019

1,809,883

At 1 January 2020

1,809,883

Currency translation

–20,596

Change in basis of consolidation

97,606

Additions

52,232

Disposals

–5,201

Reclassifications

–14,408

At 31 December 2020

1,919,516

Accumulated depreciation and impairment losses

In € thousand

 

At 1 January 2019

–593,759

Currency translation

–1,569

Additions from depreciation

–40,013

Additions from impairment

–1,848

Disposals

20,129

Reversal of impairment

3,981

Reclassifications held for sale

–59,360

At 31 December 2019

–672,439

At 1 January 2020

–672,439

Currency translation

6,118

Additions from depreciation

–38,344

Additions from impairment

–9,459

Disposals

2,214

Reclassifications

5,986

Reversal of impairment

5,621

At 31 December 2020

–700,303

Carrying amounts

In € thousand

Property and casualty insurance

Health insurance

Life insurance

Total

At 1 January 2019

227,191

235,225

641,731

1,104,146

At 31 December 2019

214,693

242,077

680,674

1,137,444

At 31 December 2020

196,515

235,293

787,405

1,219,213

Fair values

In € thousand

Property and casualty insurance

Health insurance

Life insurance

Total

At 31 December 2019

434,938

576,950

1,246,974

2,258,862

At 31 December 2020

439,767

624,609

1,456,785

2,521,161

Fair value
The fair value is the price that would be collected in an ordinary business transaction between market participants for the sale of an asset or that would be paid for transferring a liability.
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).
Best estimate
Calculation based on the best estimate. This is the probability-weighted average of future cash flows taking into account the expected present value and using the relevant risk-free yield curve.
Acquisition costs
The amount paid to acquire an asset in cash or cash equivalents or the fair value of another form of compensation at the time of acquisition.