UNIQA Insurance Group AG (UQA) Earnings Call Transcript & Summary

Ladies and gentlemen, I open today's AGM, which is taking place under special circumstances to protect our shareholders and all other participants. We are hosting this meeting today as a virtual AGM on the basis of the federal act of the federal government on COVID-19 and the special regulations by the Minister of Justice on the details of hosting AGMs without the physical presence of participants and other ways of voting hereinafter called the regulation. A virtual AGM means that in order to protect the health of the shareholders and their representatives, there is no physical presence allowed with the exception of the special independent proxy representatives. They are not allowed to be physically present. This is why you were invited to take part via a live stream in today's AGM. By the broadcast of the AGM on Internet, all shareholders wishing to have a possibility to follow the AGM through this acoustical and optical connections in real-time from any place and to listen to the presentation of the CEO, questions of the shareholders and the replies given as well as the voting. In addition, there's a possibility to follow the AGM via telephone on the following numbers +43-12-535-501 or +43-12-535-502 or +43-670-309-0165 or +43-72-011-5988. The meeting ID for German, 92901316535; meeting ID English, 93739776642. These telephone numbers are valid for Austria. Alternative international call and dial-in numbers are listed on the website of the company under Investor Relations AGM. I will now provide you with specific information on how we're going to conduct today's AGM. Is everything working? Just -- has the technical problem been cleared? Okay. Fine. Let's continue then. I will provide you with -- I'd like to welcome the participants taking part electronically as well as their representatives as well as the special proxy representatives who are present here today and who are allowed to exercise shareholder rights. A very warm welcome to you. To simplify matters, I will renounce using gender-specific formulations and any expression relating to men will also apply to women. I'd also like to welcome the notary, Dr. Brix, and I ask him to notarize today's AGM and to monitor the electronic voting. With regard to the minutes recorded by the notary, I'd like to note that this is not a verbatim record of today's meeting. In accordance with the requirements of the Stock Corporation Act, the minutes reflect the resolutions put forward, the results of voting and any explanations and events in this context, such as protests against the minutes or orders and instructions given by the chair. This means that all events that are relevant for the resolutions to be taken and for the exercise of shareholder risk will be notarized. I'd also like to point out to make -- in order to make the record-keeping by the notary easier, we'll have an audio record of this meeting made. I note that the convocation for today's AGM has been published in due time and properly in the official journal, the Wiener Zeitung on the 24th of April 2020 and as well as on the website of the company. Moreover, on the 24th of April 2020, the convocation was published on the European-wide electronic information system, euro ad hoc. Equally, the documents mentioned in the convocations for this AGM were available in good time with the company and was published on the website of the company. The specific information and the modalities of virtual AGMs, including the organizational and technical requirements were equally made available, and those 4 persons were nominated or proposed by the company, especially independent proxy representatives as well as further information on the rights of shareholders pursuant to Sections 109, 110, 118 and 119 of the Stock Corporation Act as well as further information on shareholder rights. If AGMs are hosted virtually according to the company law, COVID-19 regulations and on the handling of the virtual AGM on the 4th of May 2020, pursuant to Section 118 (3-5) of Stock Corporation Act have been made available on the website of the company under Investor Relations AGM. At the reference date, which is the 15th May 2020, the end of the tenth day preceding the AGM, 233,438,104 shares have been confirmed and the proof of ownership has been submitted. The list of participants will be made available after agenda item 1 and made available in this room at the same time. I will inform you of the presence at today's AGM. The text of the convocation is available to all of you. I will not read it out. Therefore, I'd also like to inform you that the company has not received any requests for amending the agenda nor any proposals for resolutions. The organizational and technical requirements for participation described clearly how we are going to handle questions and statements. For a better understanding, I will explain that once again. Questions and statements can only be put to individual agenda items. The right of shareholders to obtain information pursuant to Section 108 in Stock Operation Act can be exercised in accordance with the provisions on virtual AGMs and the information on organizational and technical requirements for attending virtual AGMs before and during the AGM by shareholders themselves. Shareholders entitled to take part in the virtual AGM had a possibility before the AGM to send in questions or statements or any, or to exercise their statutory right to obtain information any other form in accordance with Section 118 Stock Operation Act in a text form by e-mail sending them -- sending e-mails to the company. These questions and statements will today be read out and answered at today's AGM. Shareholders who are entitled to take part of this AGM virtually have submitted deposit confirmation of the custodian bank pursuant to Section 10a Stock Operation Act in good time and have given a proxy to shareholder representatives. They can also submit questions and exercise their rights to obtain information in text form during the AGM. The exercise of the right to obtain information as with the physical AGM is linked to the requirements of Section 118 Stock Corporation Act. The questions of the statements -- questions and statements that have been received before the AGM will be read out. I ask the members of the Board to read out and answer the questions set forward in [indiscernible] their responsibility on the individual agenda items. Statements without a specific question will be read out by myself. If we have questions that are repetitive or aggressive, I retained the right to communicate just a major substance of such question or statement. And in particular, I retain the right, if there's highly extensive statements or questions to be read out by Mrs. Gudrun Slamanig, representing the notarial office of Dr. Brix. Could I invite the shareholders to send in their questions and statements by e-mail to the following e-mail address, [email protected], which is also listed in the information on the organizational and technical requirements for participation? In order to exclude any doubts as to the identity, the e-mail must include information on the person of the participant, first name, family name, company name of the shareholder, date of birth with natural persons or company-registered number with legal entities and with a signing of the name of that person or company to allow the company to verify the identity of that person and check conformity with the deposit certificate. Every participant is responsible for making sure that his e-mail address can be assigned to him and can be used only by him and that no e-mails can be sent from that e-mail address by any other person. Please use the form that has been made available on the website of the company under Investor Relations AGM. Fill it in as precisely as possible and be succinct in asking your question or submitting your statements, and please make sure that you add all required formal information and send that in using the form as a PDF as an attachment to your e-mail. Questions -- answers to questions may be refused pursuant to Section 118 paragraph 3 Stock Corporation Act if answering that question might give rise to any disadvantage to the company or providing such information would be punishable by law. We'll then have a general debate, meaning that, first, we will have listened to the reports by the CEO or the members of the Supervisory Board. We will then read out the proposed resolutions. I will then ask the proxy representatives whether such proposed resolutions will be posed. We will then have a short interruption of our meeting for 15 minutes to give shareholders some time to submit questions and statements. After this interruption, we will be answering the questions submitted by the shareholders on all agenda items as described. There will also be a possibility to ask follow-up questions. I will ask the shareholders during our general debate to come up with further questions or follow-up questions, and I will determine a reasonable period of time up to when such questions can be asked. In due course before the end of the general debate, I will again point out to the shareholders that they have the right to submit new or amended instructions or orders to their proxy representatives as set out in the information on organizational and technical requirements for participation in the e-mail address specified there. If and when necessary, I will again interrupt the AGM if the proxy representatives should need more time to sort out and process the instructions received. Finally, we will have a vote on all admitted resolutions. As the Chair of this meeting, I retain the right to give further and other instructions on today's AGM. I am convinced that using the above-mentioned ways of communication and participation for shareholders, we're providing high quality of legal certainty in the voting process. I also instruct that the special proxy representatives during the vote raise their voting cards during the vote. A few words on the voting process as such. We will be using the subtraction method, meaning that the no votes and abstentions are being counted and deducted from the total number of votes represented. This results in the number of yes votes. For votes, we need the full proxy representatives to be present to ensure proper counting. Along these lines, could I ask the proxy representatives wishing to vote by no or wishing to abstain from voting to indicate that by raising their voting on instruction cards when called on. These voting cards and instruction cards have been handed out to the shareholder representatives before entering room. The instruction cards and the numbers on the cards will be read out aloud by the tellers for better recording. The proxy representatives whose number has been read out aloud are kindly asked to lower their voting cards. The result will then, as explained, ascertained using the subtraction method, and I will inform you of the outcome. If, for to handle our meeting economically and efficiently, it is appropriate to use any other form of voting, I retain the right to amend the procedure announced. I hope we are still live online, and there's no technical problem. Okay. So let us then continue. Agenda item 1, presentation of the approved nonconsolidated annual financial statements and the consolidated annual financial statements of UNIQA Insurance Group AG for the year ended 31 December 2019. The management report and the group management report, consolidated governance report of the Management Board, the joint profit distribution proposal of the Supervisory Board and the Management Board and the report by the Supervisory Board pursuant to Section 96 of the Stock Corporation Act, including -- for the fiscal year 2019. I note that the financial statements reviewed and adopted by the Supervisory Board in its meeting on the 15th of April 2020, which is thus formally adopted, is available as well as the management report of the Management Board for the business year 2019. The consolidated corporate governance report of the management board as well as the joint proposal for distribution of profits of the Supervisory Board and the management Board as well as the group financial statements as per 31 December 2019, that was reviewed by the Supervisory Board, the group management report for the fiscal year 2019, the special consolidated nonfinancial report, so-called sustainability report as well as the report of the Supervisory Board pursuant to Section 96 Stock Corporation Act each for the business year 2019. The group financial statements, the management report, the financial statements for UNIQA Insurance Group AG and the group management report, including the corporate governance report as well as the distribution for profit, distribution in German and in English as well as the financial statements and the management -- and the annual report of UNIQA Insurance Group AG have been made available on the website of the company, www.uniqagroup.com. All these documents are included in the annual financial report 2019 pursuant to Section 124 paragraph 1 of the Stock Exchange Act of UNIQA Insurance Group AG. Moreover, the special consolidated nonfinancial report, the so-called sustainability report, has been published on the website of the company. The convocation and the agenda have been made available and published in German and in English. The report of the Supervisory Board pursuant to Section 96 Stock Corporation Act, also in German and in English, and the proposed resolutions for today's AGM on the website of the company. All these documents have been made accessible since the publication of the convocation to this AGM on the 24th of April 2020 or starting 4 May 2020 on the website of the company and were made available to shareholders at their request. For further information on this agenda item, I now give the floor to the CEO, Dr. Andreas Brandstetter. You have the floor, sir.

Thank you very much, Mr. Chairman. Ladies and gentlemen, shareholders, health is utmost important good. It's not only the most important good of our customers, of our employees but also of our shareholders. We, through the profit warning which we published in April 2020, with a view to the payout of the dividend for the past business year and for 2020, we may have launched an attack against your health. This was a decision which wasn't easy for us, and this is why I want to refer to it at the very beginning of my report. It was a deliberate decision. Although your trust and confidence is the most important thing for us, we had to take this decision because we were hit hard by the COVID-19 crisis. And we want to keep paying dividends out of our cash flow and not out of our reserves. I don't expect a round of applause from you now, but I hope you will give me the opportunity during the coming 25 minutes to tell you what we intend to do and which decision we took against the explicit recommendation of EIOPA. 2019 was the last year of our UNIQA 2.0 strategy program 2011 to 2020. We had defined 5 targets. First, we wanted to double the number of customers; then we wanted to focus on our core business in 2 regions of Europe; then we had 4 key programs, which were intended to improve our core business, being more profitable at UNIQA in Austria, more productive at Raiffeisen insurance, be profitable within our existing markets in UNIQA International; and last, but not least, we wanted a value-oriented management of the group as a whole. We wanted to sharpen the risk-return profile. To reach these targets, we needed a sound capital base. And we wanted to massively strengthen the earning power of the group and deliver on our promises regarding the dividend policy. Now I'd like to elaborate on these targets. The first target was to increase the number of customers. In 2011, we had 7.5 million customers, private customers, commercial customers, industrial customers, and our objective was to increase the number of customers to 15 million by 2020. At the end of 2019, we had more than 10 million customers. We're still far from our target. That was due not least to the fact that we had withdrawn from Germany and Italy through the acquisition of the AXA companies in Poland, the Czech Republic and Slovakia, which I will speak about later on. We will succeed presumably by the fourth quarter. This is when we are going to close the transaction. And by that time, we expect to have approximately 15 million customers, if not more. So we can say that we are going to reach this target. The second target I mentioned concerned our function as a primary insurer in 2 core regions. Before 2011, we were present in several Western European countries: Spain, Italy and Germany. We therefore decided, starting in 2011, to withdraw from the German market and later also from the Italian market. At the same time, however, as you can see on the right-hand side of the diagram, we made investments. In 2014, we acquired 2 companies from the Swiss Baloise in Serbia. And this year, we made the transaction with AXA, and we will take over their business in Poland, the Czech Republic and Slovakia. But alongside the primary insurance business, we focused on our core business. We made divestments in areas that do not support our core business. In media and -- in the media business and in the hotel business, we'd made divestments there. But our market share in Health insurance was increased. It currently stands at 46%. We have a strong presence in private hospitals in Austria. The third target concerns our underwriting profitability. Remember, the 4 core programs I mentioned, our total premium volume is EUR 5.4 billion, 53% thereof comes from property and casualty business. And there, we have the combined ratio as the key indicator. You know that the combined ratio in the history of UNIQA before 2011 very often was above 100%. Over 9 years, the net combined ratio has been reduced to 96.4% as of the end of 2019. This is a sizable value, a good value, which brings us closer to our target of 95% by the end of 2020. Unfortunately, however, for reasons which I'm going to mention later on, this target of reaching 95% this year has been made impossible by COVID-19. The fourth target, which I'd like to explain, concerns our capitalization. The regulatory capital ratio has gradually improved. In 2012, we were at 95%. In 2019, it's at 221%. This is a top value also by international comparison because it doesn't contain any transitionals. But please bear in mind that after the integration of the AXA companies after the closing, which we expect to happen by the end of October, we -- about 25% to 30% will have to be deducted from the 221%, but it's still our target to remain within the range of 155% to 190%. This range, we've set ourselves. We want to be in the upper third of this range after the acquisition of the AXA companies. Now our last target, that is the profitability of the UNIQA Group. You know that before 2011, we had an EBT around EUR 140 million, EUR 150 million. Profitability has been increased to more than EUR 400 million. Our promise at the Capital Markets Day in 2013 was clear. On the basis of 2011 and before, we wanted to increase our earnings by EUR 400 million. But we did suffer a drop after 2015, not only because we sold our highly profitable company in Italy. We didn't sell Italy because it wasn't profitable, but because it absorbed a lot of risk capital. The main reason is that starting in 2016, we had made massive investments in innovation and digitalization. And within the framework of a EUR 500 million program, we invested in the renewal of our IT back office systems. This is no excuse. It's no excuse for the fact that we are suffering a massive burden due to financial costs, regulatory charges. For example, the introduction of Solvency II, the introduction of IFRS 17, which is going to cost us EUR 50 million. The issue of the cost ratio is a core issue within the framework of UNIQA 3.0. As regards our dividend policy, we would like to stand in front of you and propose a higher dividend. We would have liked to propose a dividend of EUR 0.54 per share. As you remember, when we announced our preliminary figures for 2019 in February this year, this was still our intention. However, we have now proposed to the Supervisory Board to reduce the 54% (sic) [ EUR 0.54 ] by 2/3 and to propose a dividend of EUR 0.18 per share for 2019 and no dividend at all for 2020. The motivation for this decision will be explained in a minute. Ladies and gentlemen, that was a very brief overview of what happened between 2011 and 2019. I'd now like to show you a couple of charts illustrating the highlights of 2019. Let me use the metaphor of the house, which you know from previous years. The house has a very stable ground floor. This is our capital and our balance sheet position. A first floor for our 5 group initiatives and a second floor that stands for the future, for innovation and digitalization and the new way of working. Let me start with the foundation of the house, the ground floor. As you can see, in 2019 was in the framework of our plan, gross written premium increased by 1.2%. On the right-hand side, you can see a combined ratio which declined by 0.4% to a very satisfactory 96.4%. What you cannot see here is the satisfactory result of our capital investments. Net return on investments of EUR 585 million. That stands for a total return on investment of 2.8%. The so-called new money yield in 2019 also was 2% -- 2.8%. So we invested approximately EUR 3.2 billion new money. As a result of that, we report a highly satisfactory EBT in the amount of EUR 296 million. When you compare that like-for-like, it means an increase by 19.5% over the previous year. Why like-for-like? In 2018, we had an extraordinary effect, an extraordinary income from our sale of our participation in Casinos Austria in the amount of EUR 47.4 million. I already mentioned our solvency capital requirement. I haven't spoken about the technical result yet, where you can see a decline by 25%. It's not brilliant, but please bear in mind that a relevant 2-digit million euro went into reserves for both health and property and casualty insurance. The cost ratio increased by 1.3%. Toward the end of my presentation, I will say something about UNIQA 3.0 and I will come back to the cost ratio then. Now let's move up from the ground floor to the first floor. I would have liked to tell you more in detail. On the left-hand side, property and casualty, which, out of 5, EUR 104 billion accounts for 53%. 6 -- 2.6% growth is in accordance with our strategy and most satisfactory. This is where we improved our profitability in recent years and where through the transaction was AXA. We intend to intensify our focus on this area. The combined ratio of 96.4% is particularly satisfactory because we had more natural disasters in 2019 than in 2018. The second business segment is our Life insurance business, which accounts for 26% of our total volume of EUR 5.4 billion. Growth went down in 2019 by 3.7%, which is due to the current low interest environment and the expansionary monetary policy of the ECB and lower demand. I will soon show you the quarterly figures for the first quarter of 2020, and you will see a slight reversal of the trend, a slight increase, which makes us proud in Life insurance. Profitability in Life insurance is high despite the unfavorable requirement -- environment, I'm sorry. And the new business margin is slightly lower than the year before. But at 4.3%, it's still satisfactory. 4.3%, that includes not just Life insurance, but also Health insurance across the group. I'm pointing this out because the new business margin in Austria is just over 3%, which is much lower than in Eastern Europe, where it's 8%. And this is why we think that the AXA integration will be good for our diversification. On the right-hand side, you can see our Health insurance contributing EUR 95 million to the result. At a high level, it's stable. Growth is strong at 4.1%. Why such satisfactory growth? We are the market leader. We are not a challenger, but the market leader in Health insurance in Austria. We have a market share of 46%. Now I move on to the second floor of our house. This is where digitalization and innovation come in. I could show you a whole bouquet of innovations and promising initiatives which we are pursuing. But here, for reasons of time, I'd like to focus on 3 only. UNIQA Ventures, that is a subsidiary which, over the past few years, invested EUR 23 million in 22 start-ups, insur- and fintechs as well as health techs all over Europe. The internal rate of return is approximately 23%. That is the financial, the internal rate of return. But we can't measure the innovation rate of return, the know-how transfer, the new and fresh ideas and technologies which we are absorbing as a result both in UNIQA, and that helps us address the challenges in an optimistic and forward-looking way. In the middle, Cherrisk. This is not an investment of UNIQA Ventures, but Cherrisk is a subsidiary of our Hungarian insurance company based in Budapest. It's a fascinating young start-up which revives the original idea of the insurance company. Risks are being pulled, currently more than 40,000 contracts. But if a profit remains for the insurance company, the insured can invest parts thereof in charitable undertakings in the neighborhood. More than EUR 757,000 of premium have already been generated, and this is really promising. So we intend to roll it out to other countries. Then there is myUNIQA, our UNIQA portal, which can be used as an app. We have more than 350,000 users on this platform. The platform gives you a very clear overview of your insurance contracts. It's easy to use. You can submit whatever invoices you have from Health insurance. It offers a lot of convenience. It offers what customers know from Amazon and Netflix and Spotify. And of course, we also want to reduce costs that way. I already mentioned UNIQA 3.0. And essential part of UNIQA 3.0 is going -- will be to do with sustainability. There is no other industry that is as closely related to sustainability as the insurance industry. There are 3 areas, and all the details can be found in the sustainability report, which was produced in cooperation with Red Bull Media House, and you can read everything about the activities in the field of sustainability. As shown on the left-hand side, we no longer offer insurance coverage for the coal industry. We do not invest in companies that are related to the coal industry. We invest in infrastructure. Approximately EUR 600 million have been invested in infrastructure, and we have open commitments of EUR 200 million. Out of the EUR 600 million, about EUR 180 million or EUR 190 million have already been invested in alternative sources of energy: wind parks, solar facilities and so on. And we want to make it possible for our customers to make green investments. As an old-age provision, we offer sustainable investments. And on the right-hand side, e-mobility, as an example. It's a small activity. The volume is not large yet. But starting from a low base, we record growth in the field of electric vehicles, a growth of 28% and we offer our customers a discount of 25% on e-mobility because we want to motivate our customers to invest in e-mobility. That was a quick overview of 2011 to 2019, with a special focus on 2019. My last part will be dedicated to the future challenges and opportunities for 2020 and following years. Challenges is not underlined. What's underlined here is chances, opportunities. Despite of all the challenges, this management board is optimistic and forward-looking because we know that our company has an enormous potential. There are far more opportunities than risks in the future. Let me say a few words about COVID-19 and give you the background for our profit warning of April 2020. There are 6 hexagons, 3 are critical and 3 represent opportunities. Now what are our opportunities? Talking about new business, we don't have a major impact of that in the first quarter, but there will be an impact in the year as a whole. In all the scenarios, which we've been calculating since the shutdown on March 16 -- the scenarios have been calculated not by us in isolation, but together with consultants, representatives of governments, experts and so on. And the conclusions are similar. As long as there is no vaccination that has been clinically tested, that is clean and that is accessible to as many people as possible, a vaccination against COVID-19, as long as there is no such vaccination, and there will be none before the second half of 2021, COVID-19 is going to have a massive impact on the European and Austrian economy, domestic products, lead enterprises, unemployment, automotive industry, aviation. And COVID-19 is going to have an impact on people's consumption behavior. That's the background why after all our calculations, we are saying that we're going to have muted new business. We are going to have a higher burden due to COVID-19 in P&C, and we are going to see high volatility in capital investments in the coming months. Now why are we optimistic? I -- there are 3 other hexagons on this chart. What we've seen during the past 9 weeks was an enormous commitment on the part of our employees. Cohesion within our company is enormous. We feel we belong together, and that holds for all our employees. We've never seen that before. Within 2 days, 96% of our employees were moved to home office work. We were fully functioning. Our customers felt no negative influence on the quality they are used to receiving from UNIQA. So a crisis for UNIQA, of course, is challenging, and we are aware of that challenge. But we -- a crisis for us also means seizing opportunities. So let's never waste a good crisis. Now I move on to the first quarter of 2020. A couple of minutes ago, I said that the business year 2019 was marked by growth by 1.2 percentage points. Now in P&C, more than 3% growth. In Health insurance, 1.5% growth. And even in Life insurance, which is a difficult business, 0.3% growth, a slight turnaround. But now where is the but? We had a very strong January. We had a sensational month of February and very good 2 weeks of March. So these figures do not include any influence of COVID-19 on premium written. If I were to report about April and May, the situation, it would be quite different. The drop in new business, in certain lines of business, was not 20%, 30% or 40%, but 50%, 60% or 70%. And these figures continued in the first weeks of May, and it's too early to tell how long it will take us to get back to normal. When you look at the combined ratio, we were at 96.4% at the end of 2019. Now we are at 97.8%, which is an increase by 1.5 percentage points over the first quarter of 2019. This already includes provisions of EUR 37.5 million for COVID-19 and for the Sabine windstorm event and the earthquakes in Albania. So it is unpleasant, but I have to confirm that the maximum loss from COVID-19 will be approximately EUR 150 million additional claims, an additional -- this is due to loss of profit of companies due to COVID-19 in the catering industry, tourism, et cetera, then loss of profit of freelance workers. And the third part concerns loss of profit of event organizers, conferences, trade fairs, et cetera. And altogether across the group, this may add up to additional claims in the amount of EUR 150 million. There are positive effects as well. The motor losses in March -- since March have gone down by 30% because people didn't use their cars. So often, they didn't go hiking or go in for other sports. So there were fewer accidents. They saw -- people saw their doctors less frequently because they were afraid of contagious COVID-19. But nevertheless, overall, the negative influence of COVID-19 will be much stronger than the positive effects. Another reason why earnings before tax have declined significantly. In Q1 2019, it was EUR 42 million. Now we are at minus EUR 14 million. And what's even more important there than the impact of COVID-19 is capital investment. I already mentioned volatility. We suffered a drop in 1 of 102 million in our return on investments. So if we hadn't had a positive effect from foreign exchange differences in Eastern Europe at the end of the first quarter, we would have an even steeper drop, approximately EUR 33 million impairments in the first quarter from equities and fixed interest-bearing securities. Ladies and gentlemen, I move on to the last but one part of my presentation, AXA. I reaffirm our intention to acquire the AXA companies. In the -- as of the fourth quarter, we expect an added premium of EUR 800 million in Poland, the Czech Republic and Slovakia, the strongest insurance markets in Eastern Europe with 50 million inhabitants. We expect to earn EUR 800 million more in premium, 500 million (sic) [ 5 million ] more customers and EBT effect of EUR 80 million. Currently, we have provided for bridge financing, and by the summer of 2021, we may be issuing our own capital instruments. The amount and the terms and conditions will be communicated in due time. Last but not least, ladies and gentlemen, the combination from COVID-19 and UNIQA 3.0. UNIQA 3.0, that is the working title of our strategy program, which we are going to communicate in the fourth quarter of this year, and we will present it to all our shareholders. The lessons from COVID-19 are fourfold, and they will feed into 3.0. First, the high attractiveness. The high confidence we enjoy as an employer. We didn't register any of our employees for short-time work. And this is confidence we want to strengthen. And we want to win confidence in the new markets, which we are acquiring through AXA, and on this basis, implement our plans. The second topic is advanced digitalization, not only within the company. This is what we are doing anyway. But also in dealing our customers, we want to be present in our customers' living rooms via our digitalization motorways. Regulators, which until recently were rather skeptical and prudent in terms of digitalization, they wanted a lot of bureaucracy. They wanted printouts and everything. Now they are recognizing and acknowledging that we are -- that digitalization between the insurance company and its customers is essential, also in the event of a new pandemic. The third point doesn't come as a surprise. As the market leader with a 46% market share in Health insurance, offering health services, and I'm saying services, not health and insurance services, that is essential. We will pick up speed there and faster than planned a year ago. We are going to offer our 10 million customers. Soon, it's going to be 15 million customers. We will offer them new services. And last but not least, I know this is an important point for you, the cost ratio of the UNIQA Group is something we're going to work on. As of the next year, we're going to massively reduce our costs, but not at the expense of innovation or items 2 and 3 shown here. We are going to bring our costs down by saving money in current operations and in settlement. Ladies and gentlemen, thank you for having dedicated 25 minutes of your precious time to me. I hope you will find us optimistic and forward-looking, and I hope you can now understand that winning and retaining your confidence is our most important target for the future.