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Group presentation
2 GROUP PRESENTATION ABOUT US 2016-2018 STRATEGIC PLAN 9M16 RESULTS
ABOUT US
4 ABOUT US
UNIPOL GROUP STRENGTHS
Leader in Non-Life insurance market in Italy
European Leader in telematics
The largest agents’ network in Italy
Excellent track record in consolidation (Fondiaria-Sai, Winterthur Italia, Aurora)
Innovative approach to claims settlement (ownership of companies for centralized purchasing of motor
spare parts, ownership of network for windshield installation/repair, agreements with a large network of
body shops)
Leader in Italian insurance pension funds
New strategic plan 2016-2018 with sound and sustainable targets
Very attractive dividend policy5 ABOUT US
UNIPOL GROUP KEY FIGURES
1st Non-life insurance group in Italy with written premiums of €7.9bn at 15YE and a market share of around
21%
1st European insurer as to MV black-boxes distribution, with a market share of 40% in Europe and 60% in
Italy
Among the key players in Italian Life business with written premiums of €8.6bn at 15YE and a market share
of around 6.5%. Leader in the Insurance Occupational Pension Funds Italian market, with €3.7bn AUM
Managed assets of €63.8bn
Operating in the banking sector, hotel business and other minor non insurance business
Multichannel strategy:
• over 3,000 agencies in Italy (over 20,000 agents/sub-agents) and around 100 branches in Serbia
• over 4,800 banking branches (bancassurance distribution agreements)
• 270 property banking branches (banking business through Unipol Banca)
• direct channel (telephone/internet) and company agreements (e.g. in health business)
Unipol Gruppo Finanziario and its subsidiary UnipolSai are listed on the Italian Stock Exchange through
Unipol Ordinary Shares and UnipolSai Ordinary Shares, both included in the FTSE-MIB index6 APPENDIX
GROUP STRUCTURE
UNIPOL GRUPPO
FINANZIARIO
(Holding)
100% 98.53% 66.05% a 57.75% 63.39%
Linear UniSalute Arca Vita,
Unipol Banca
(Non Life Ins.- Direct) (Health Ins.) (Bank) Arca Assicurazioni
(Life and Non-Life Bancass.)
42.25% b
UNIPOLSAI
(Non Life Ins., Life Ins.)
50%
AlfaEvolution, AP&B,
Popolare Vita, MyGlass Hotel, Clinics,
Other Non-Life and Real Estate
The Lawrence Life Life Companies (Ancillary Non-Life Agricultural
(Life Bancassurance) Insurance Companies)
Companies
100%
Listed Company
a Including shares held by Unipol Finance and Unipol Investment at November 2016.
b o/w 27.49% is the subject of a put option granted by Unipol to UnipolSai and of a call option granted by UnipolSai to Unipol.7 ABOUT US
RANKING AND SALES NETWORK
TOTAL PREMIUMS M.S. % NON-LIFE PREMIUMS (ITALY) M.S. % UNIPOLSAI SALES NETWORK
Generali 25.6 16.4% Unipol 7.8 21.3%
14.1% Generali 6.1 16.6% 49%
Intesa SanPaolo 22.0
Poste 18.2 11.7% Allianz 5.1 14.0%
24%
a
Unipol 15.5 10.0% Cattolica 2.0 5.5%
Allianz 13.8 8.9% Reale Mutua 1.9 5.3%
Cattolica 5.4 3.5% Axa 1.9 5.1%
Mediolanum 5.0 3.2% Zurich 1.4 3.7%
27%
Axa 4.7 3.0% Groupama 1.1 3.1%
BNP Paribas 4.5 2.9% Vittoria 1.1 2.9%
over 3,000 agencies
Zurich 4.1 2.6% Itas 0.8 2.1%
Figures at 15YE. Source: ANIA and Unipol internal data.
a Including cross-border premiums and excluding premiums from companies operating in freedom-to-provide-services system2016-2018 STRATEGIC PLAN
9 2016-2018 STRATEGIC PLAN
FINANCIAL MARKETS PERFORMANCE AND FORECASTS
MAIN ASSUMPTIONS BEHIND THE STRATEGIC PLAN
MACROECONOMIC KEY INDICATORS STOCK MARKETS
3.0% Rebased 100 at 31/12/2012
1.4% 132
1.1% 122 122
1.1% 1.0%
0.6% 117 131
0.2% 1.1% 1.2% 113
0.0% -0.1% 117
100 FTSEMIB
Economic growth will 2012 2013 2014 2015 2016 2017 2018
STOXX EUROPE 600
-0.4%
remain weak with a
prolonged period of low -1.7% INFLATION
2012 2013 2014 2015 02/05/2016
interest rates GDP
-2.4%
ITALIAN GOVERNMENT BOND RATES (%) IRS (%)
2.31 2.34
5.36 5.51 5.47 2.19
4.88
4.20 1.77
3.77 1.57 1.61
1.34 1.40
2.93
2.52 2.69 0.96 1.00
2.33
1.89 2.02
1.60 0.60 0.62
1.04 0.48
0.33
0.62 2012 VALUES 2012 VALUES
0.02 0.01
0.09 2015 VALUES (0.03) 0.06 2015 VALUES
1Y 2Y 3Y 5Y 7Y 10Y 15Y 20Y 30Y 2Y 3Y 5Y 7Y 10Y 15Y 20Y 30Y
Source: forecasts from primary institutes10 2016-2018 STRATEGIC PLAN
PERFORMANCE OF NON-LIFE AND LIFE INSURANCE MARKET
NON-LIFE AND LIFE
NON-LIFE PREMIUMS
€bn
CAGR
39.7 38.2 37.8 38.5 ‘12-
‘12-’15 ‘15-
‘15-’18
37.3 36.7 36.9
Non--Motor
Non 18.2 +1.5% +2.8%
18.3 18.7 19.0 19.4 19.9 20.4
MV premiums stable
after three Motor 21.5 19.8 18.6 17.7 17.4 17.8 18.0 -6.3% +0.4%
“deflationary” years,
increase in Non-MV and 2012 2013 2014 2015 2016 2017 2018
Life Business
LIFE PREMIUMS
€bn
CAGR
133.7
127.1 ‘12-
‘12-’15 ‘15-
‘15-’18
120.3
110.5 115.0
30.0 31.8
28.3 +4.2% +4.7%
85.1 27.8 27.7
69.7
22.5
Other 24.5 77.1 81.7 86.2 +29% +5.9%
68.5 72.5
50.2
Banks and Post Offices 33.8
+8.8% +2.2%
Agents 11.5 12.4 14.2 14.8 14.9 15.3 15.7
2012 2013 2014 2015 2016 2017 2018
Source: forecasts from primary institutes11 2016-2018 STRATEGIC PLAN
PERFORMANCE AND FORECASTS OF INSURANCE MARKET
MOTOR VEHICLE PROFITABILITY
MV TPL COMBINED RATIO FROM DIRECT
BUSINESS AVERAGE MV TPL PREMIUM (var. %YoY)
101.9%
99.4% 0.7% 1.1% 0.1%
92.5% 101.5%
90.5%
2012 2013 2014 2015 2016 2017 2018
95.0%
88.2% -2.7%
Deteriorating Motor -5.9%
Vehicle profitability due to -5.1%
the decreasing average 2012 2013 2014 2015 2016 2017 2018
-6.6%
premium and increasing
claims frequency
CAR REGISTRATIONS (000) VEHICLES ON THE ROAD (m)
43.1 42.9 42.9 43.2 43.4 43.6 43.9
1,764 1,809 1,846
1,577
1,403 30.6 30.6 30.7 30.9 31.1 31.2 31.3
1,304 1,361
2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018
CARS ALL VEHICLES
Source: forecasts from primary institutes12 2016-2018 STRATEGIC PLAN
Unification of IT Systems
STRATEGIC PLAN CHALLENGES
The market environment is … but we have laid solid
challenging… foundations…
Non-Life technical 2012-2015 plan targets exceeded
profitability is shrinking Integration of the Fondiaria-Sai
Financial investment yields Group successfully finalised
are still low Company and capital structure
Economic growth is still streamlined
weak
2016-2018
Strategic Plan … we have important … and we have started
challenges assets to focus on… to change our future
Leader in Europe in Motor New Motor products launched
policies with blackbox offering high-level services
Leader in Italy in Non-Life Onset of Alpha Evolution to
business manage blackboxes and big data
The largest agency network UniSalute, Finitalia, APB and
in the domestic market MyGlass are core companies
which offer services and ensure
cost savings in the claims
settlement process13 2016-2018 STRATEGIC PLAN
INNOVATIVE AND DISTINCTIVE SOLUTIONS
PRODUCTS
MV BUSINESS Innovative solution and dynamic pricing
innovation of the guarantees and assistance services
offered to customers, use of Big Data, telematic
information and machine learning algorithms
NON-MV Widen MV service model integrated with telematics
Strengthening of leadership in MV BUSINESS
offering repairs with reimbursement in kind and
business and newly targeted aiming assistance to the Retail and Business Non-MV offer
solution to satisfy the needs to
protect customers’ Health, HEALTH Development of the integration of the UniSalute
specialist model and excellence leveraging both
Retirement and Investments agency and banking network
new partnerships with the public sector
prevention and diagnosis of chronic ailments
+500,00 New MV customers (wearable technology)
0 focus on SME's (group insurance) and customer
segment leveraging the agency network
Increase in Non-Motor Retail and SME
+8% premium income from 2015 to 2018
LIFE New retirement offer integrated with protection
and assistance services
Increase in the health market share
+3% Directing the portfolio mix to linked and hybrid
from 2015 to 2018 (from 23% to 26%)
products
% income from linked Focus on profitability, reduction of the minimum
>30% products in 2018 guarantee structure within traditional products14 2016-2018 STRATEGIC PLAN
INNOVATIVE AND DISTINCTIVE SOLUTIONS
SERVICES
REPAIRS Direct repairs
• > 2.5m MV policies involving the direct repairs
service
• > 180,000 MV and windscreen claims managed
in 2015
• 69% of NPS on AP&B network and 78% on
2015 2018 MyGlass
AP&B claims channelling 29.4% 40%
WIDENING THE Extension of services offered by the AP&B
MyGlass claims REPAIRS AND network
59.0% 75% to ordinary vehicle maintenance
channelling ASSISTANCE
Premiums financed by SERVICES Launch of new windscreen repair services at
€700m ~€1bn
Finitalia MyGlass centres
Extension to Non-MV business (home, trade and
SMEs) of the repairs service with reimbursement
in kind
integrated with assistance services
Cumulative benefit from the
~ €20m increased use of partner repair
centres in the period 2016-2018
ENHANCING Extension of the financing service to Non-Motor
Increased retention of financed and Life products
~ 5 p.p. FINANCING
customers
SERVICES Financing the cost of vehicle repairs
for those insured by the Group in cases involving
total or partial liability and expenses incurred by
replacing windscreens15 2016-2018 STRATEGIC PLAN
INNOVATIVE AND DISTINCTIVE SOLUTIONS
TELEMATICS
SERVICES Seamless product integration with the
assistance/recovery and maintenance/repair
Percentages of black-boxes installed on the motor services
portfolio through telematic for every customer need: motor,
~45% home/business (smart home), personal (“connected”
29.2% health)
27.7%
~+15%
21.7% New innovative real time services tailor-made to
meet the customer’s needs
15.5% Advanced analytics and “intelligence” to create value
11.2% 10.7%
for insurance, commercial, service and management
8.4% 9.0% 9.3% purposes
5.9%
INTERNALISING AlfaEvolution Technology supporting the telematic
2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q16 2018E THE SERVICE evolution for UnipolSai and the other Group
companies
MODEL The new company is the standard bearer for
Predicted investment in AlfaEvolution
technological evolution linked to telematics
~ €100m during the period 2016-2018
Cumulative benefit over the three-
~ €45m year period from insourcing the service
model
Cumulative benefit on the cost of claims
~ €50m over the three-year period, by using
Black-Box data16 2016-2018 STRATEGIC PLAN
EXCELLENCE OF THE BUSINESS OPERATING ENGINE
PROCESSES & IT
CLAIMS Full implementation of new processes based on
SETTLEMENT the new claims system (Liquido) integrated with:
CUMULATIVE IT INVESTMENT IN THE
PERIOD 2016-2018 (€m) PROCESSES
a portal for telematics data analysis (Unico)
and company portals for the management of
33 31 33 the network of agreed professionals
29 26
innovative anti-fraud process using Company
algorithms (Big Data, network analysis)
COMMERCIAL Digitalisation of distribution processes
Service Digitalisation Multi- Telematics Evolution
quality and processes channel Big Data HW e SW AND Engineering the network assistance model
technology Services architecture UNDERWRITING Simplification and streamlining of
optimization communication means between the
PROCESSES
Company and Agency Network
Cumulative investment in IT in the
~ €150m period 2016-2018 Investments supporting the streamlining of costs
IT
and key service model development programmes
Digitalisation of processes
Multi-channel selling
Telematics, Big Data and Services
Evolution of hardware & software architecture17 2016-2018 STRATEGIC PLAN
INVESTMENT STRATEGY
FINANCE REAL ESTATE
Financial investments
asset allocation 2015 2018
GALLERIA SAN FEDERICO TORRE VELASCA TORRE GALFA
Govies 73% 73%
Corporate bonds 20% 21% VARIATION IN THE REAL ESTATE PORTFOLIO
€bn
Equity and Funds 3% 4% 2012 2015 2018
4.9 - 12%
+ 1%
Cash 4% 2% 4.3 4.4
Investments relating to the Unipol Group of insurance companies Third parties 3.7 2.9 3.0
excluding DDOR, Lawrence Life and “class D”, investments in associates,
JV’s, investments in RE and RE funds
Core 1.2 1.4 1.4
instrumental
Vacancy Rate a 35% 28% 21%
Increase in real estate portfolio quality through the disposal of buildings
with returns under 3% and actions to reposition core properties already in
the portfolio, with a 7 p.p. improvement in vacancy rate1
a Based on the Core and Value Added portfolio available for rent18 PIANO STRATEGICO 2016-2018
OTHER INSURANCE BUSINESSES
BANCASSURANCE The Group posted significant and stable
income results in Life and Non-Life
2015 2018 Bancassurance sectors between 2013-2015
POP Vita premiums a €3.0bn €2.7bn Today there is a solid platform in terms of
skills, processes and IT systems
- o/w linked products €1.4bn €1.4bn
Arca premiums a €1.9bn €1.6bn A repositioning of the offer towards linked
- o/w linked products €0.4bn €0.7bn products, making use of hybrid products
a Italian GAAP, including Lawrence Life (POP Vita) and Arca Vita Int (Arca)
premium income
INWARD Growing in non-domestic markets through
REINSURANCE UnipolRe leveraging the Group’s excellence and
2015 2018 technical skills in telematics
Premium Income €39m ~€300m
December 2014: the Group’s Professional
Combined Ratio 75.8% 86.6% Reinsurance company was established in
Dublin and operations were launched during
Cumulative amount of capital
2015 after obtaining the ‘A’ Rating from AM
~ €300m investments in UnipolRe between
Best
2016-2018
In-bundle offering together with services and
technological elements, for MV, property,
accidents, theft and Life business sectors19 2016-2018 STRATEGIC PLAN
THE STRATEGY OF UNIPOL BANCA
RESULTS Over the course of the period 2013-2015, Unipol
2013 - 2015 Banca made considerable efforts to increase its
customer base (approx. 100,000 more customers)
2015 2018 and launch an important streamlining of the
headquarters departments (downsizing by approx.
Gross operating income a €364m €420m 150 employees) and of the network (from 302 to
271 branches)
Impaired loans b €3.9bn €3.3bn
% Impaired loans
45% 50%
coverage ratio c
PLAN The new Strategic Plan focuses on three strategic
% Bad loans coverage guide lines:
57% 61% 2016 - 2018
ratio c Relaunching of core commercial income with
increased private customer profitability and
Cost of risk (bps)b 173 103 exploiting the historic presence as a trusted bank
a Unconsolidated operating figures (Unipol Banca S.p.A.) for Small Businesses and SMEs
b Figures relating to the banking division (including Finitalia)
c Figures relating to the UGF consolidated banking sector
Optimisation of the cost structure by
streamlining the principal procurement
contracts, the branch network and incentivising
staff retirement
~ €17m Cost savings by the end of 2018 Centralisation of impaired loans management
with a dedicated department established 2015
year-end20 2016-2018 STRATEGIC PLAN
NON-LIFE PREMIUM INCOME AND COMBINED RATIO
2015-2018 NON-LIFE PREMIUM INCOME
UNIPOL GRUPPO FINANZIARIO UNIPOLSAI
€bn +1.6% €bn +0.8% 7.5
7.9 8.3 7.3
Motor 56% 54% 58% 57%
Motor
44% 46% Non-Motor 42% 43%
Non-Motor
2015A 2018E
2015A 2018E
2016-2018 AVERAGE COMBINED RATIO NET OF REINSURANCE
95.5% 96.0%
Expense 27.5% Expense 28.4%
Ratio Ratio
68.1% 67.6%
Loss Ratio Loss Ratio
AVERAGE COMBINED RATIO
94.5% 95.0%
2016-2018 DIRECT BUSINESS
Combined ratio net of reins.: operating expenses/earned premiums after reins.+ claims charges/earned premiums after reins.
Combined ratio direct business: operating expenses/gross written premiums direct business (before reins.) + claims charges/ earned premiums direct business (before reins)21 2016-2018 STRATEGIC PLAN
LIFE BUSINESS
2015-2018 LIFE PREMIUM INCOME BY PRODUCT LINE
€bn
UNIPOL GRUPPO FINANZIARIO UNIPOLSAI
8.6
6.7
7.3
5.7
Traditional and 72% Traditional and
59% 69%
Capitalization Capitalization 59%
34% 32%
Unit linked 22% Unit linked 24%
7% 7% 9%
Pension funds 6% Pension funds
2015A 2018E 2015A 2018E
60-70 bps PROFITABILITY TARGET ON TECHNICAL RESERVES OVER 60-70 bps
THE THREE-YEAR PLAN a
a Life consolidated pre-tax result/Life provisions
SEGREGATED ACCOUNTS YIELDS AND MINIMUM GUARANTEED
3.4% 3.3% 3.4% 3.3%
3.2% 3.2% 3.3% 3.2%
1.8% 1.9% 1.8%
1.7% 1.5% 1.7% 1.6%
1.4%
2015 2016 2017 2018 2015 2016 2017 2018
YIELDS MINIMUM GUARANTEED YIELDS MINIMUM GUARANTEED
Projection including new business22 2016-2018 STRATEGIC PLAN
COST SAVINGS
2015-2018 COSTS ROLL-FORWARD
€m
UNIPOL GRUPPO FINANZIARIO S.p.A. + UNIPOLSAI S.p.A.
cost savings
26 10.1%
69
-110
1,086 543 612 528 1,071
2015 cost of new inflation cost 2018
cost base investments savings cost base
Main savings items:
€43m Ancillary costs
€32m Passive rents
€22m Outsourcing IT expenses23 2016-2018 STRATEGIC PLAN
UNIPOL GRUPPO
FINANZIARIO UNIPOLSAI
NET PROFIT 10-12%
2016-2018 CUMULATED 1,500-1,700 €m 1,400-1,600 €m
CONSOLIDATED NET PROFIT a 10-12%
42.4% 5.3%
avg. minority interests avg. minority interests
over the three-year plan over the three-year plan
DIVIDEND POLICY
2016-2018 CUMULATED
DIVIDEND ~ €400m ~ €1,000m
SOLVENCY II
2016-2018 SOLVENCY II RATIO b
120-160% 150-200%
UNIPOLSAI solo
160- 210%
a Gross of minorities
b Figures calculated using the USP (Undertaking Specific Parameters) according to the current regulation24 2016-2018 STRATEGIC PLAN
Unification of IT Systems
STRATEGIC PLAN KEY FIGURES IN A NUTSHELL
STRENGTHENING +500,000 clients in Motor business
THE GROUP +8% growth in Non-Motor premiums, Retail
LEADERSHIP IN and SME
THE ITALIAN +3% market share in Health business
INSURANCE (UniSalute)
MARKET
Average combined ratio 95.5% (Unipol) and
96.0% (UnipolSai)
€50m savings on the cost of claims, thanks to
2016-2018 blackbox data
Strategic Plan 30% of the Life premium income composed of
linked products
challenges
ENSURING A Total consolidated profit between 1.5 and
SUSTAINABLE 1.7 €bn (Unipol consolidated)
PROFITABILITY Total consolidated profit between 1.4 and
OVER TIME 1.6 €bn (UnipolSai consolidated)
Total dividends €400m (Unipol)
Total dividends €1bn (UnipolSai)
Solvency II range 120-160% (Unipol
consolidated)
Solvency II range 150-200% (UnipolSai
consolidated)9M16 RESULTS
26 9M16 RESULTS
KEY PERFORMANCE INDICATORS
€m
UNIPOL GRUPPO FINANZIARIO UNIPOLSAI
9M15 9M16 ∆% 9M15 9M16 ∆%
Consolidated net profit 594 439 -26.1% Consolidated net profit 602 427 -29.1%
Group net profit 335 261 -22.2% Group net profit 579 409 -29.3%
EPS a (€) 0.47 0.36 -22.2% EPS a (€) 0.21 0.14 -30.5%
Premium income (direct business) 12,082 11,142 -7.8% Premium income (direct business) 10,163 9,040 -11.1%
o/w Non-Life 5,671 5,590 -1.4% o/w Non-Life 5,252 5,141 -2.1%
o/w Life 6,411 5,552 -13.4% o/w Life 4,911 3,899 -20.6%
Combined Ratio b 95.1% 95.0% -0.1 p.p. Combined Ratio b 95.7% 96.0% +0.3 p.p.
FY15 9M16 ∆% FY15 9M16 ∆%
Solvency II (consolidated figures) c 1.50x 1.37x -0.13x Solvency II (consolidated figures) c 1.90x 1.69x -0.21x
Total equity 8,445 8,271 -2.1% Total equity 6,615 6,519 -1.4%
Shareholders’ equity 5,524 5,635 +2.0% Shareholders’ equity 6,278 6,188 -1.4%
BVPS (€) 7.70 7.85 +2.0% BVPS (€) 2.22 2.19 -1.4%
a Group profit for the period / no. total shares to date.
b Net of reinsurance (expense ratio calculated on earned premiums).
c Figures calculated using the USP (Undertaking Specific Parameters) according to current regulation.27 9M16 RESULTS
CONSOLIDATED RESULTS BY BUSINESS AREA
€m
UNIPOL GRUPPO FINANZIARIO UNIPOLSAI
9M15 9M16 9M15 9M16
Pre-tax Net Pre-tax Net Pre-tax Net Pre-tax Net
result result result result result result result result
Non-Life 734 512 470 331 Non-Life 653 455 381 272
Life 305 218 279 195 Life 301 218 252 177
Banking
8 6 3 2
business
Other -182 -143 -112 -89 Other -96 -71 -28 -22
Consolidated Consolidated
866 594 640 439 858 602 605 427
profit profit
Group profit 335 261 Group profit 579 40928 9M16 RESULTS
NON-LIFE – DIRECT PREMIUM INCOME
€m
UNIPOL GRUPPO FINANZIARIO UNIPOLSAI
7% 6% 7%
7%
5,671 5,590 -1.4% 8% 8% 9%
5,252 5,141 -2.1% 9%
13%
3,298 3,147 -4.6%
3,169 3,023 -4.6%
14% cv
56%56%
cv 59%
58%
2,373 2,443 +3.0% 16% 16% 12%
2,083 2,118 +1.7%
9M15 9M16 9M15 9M16
MV MV MV MV
Non-MV Accident&Health Non-MV Accident&Health
Property Property
General TPL General TPL
Other Other
Premiums by company 9M15 9M16 Premiums by company 9M15 9M16
UnipolSai Group 5,252 5,141 UnipolSai S.p.A. a 5,060 4,951
Linear 110 109 Other companies 192 190
UniSalute 233 265
UnipolSai Group 5,252 5,141
Arca 75 76
Unipol Gruppo Finanziario 5,671 5,590
a Current basis of consolidation.
Operating figures.29 9M16 RESULTS
NON-LIFE – COMBINED RATIO NET OF REINSURANCE
UNIPOL GRUPPO FINANZIARIO UNIPOLSAI
95.1% 95.0% 95.7% 96.0%
Expense Ratio 25.9% 26.5% Expense Ratio 26.7% 27.4%
Loss Ratio 69.2% 68.5% Loss Ratio 68.9% 68.6%
9M15 9M16 9M15 9M16
Combined Ratio 95.0% 95.3% Combined Ratio 95.7% 96.2%
direct business direct business
Combined ratio net of reinsurance: operating expenses/earned premiums after reinsurance + claims charges/earned premiums after reinsurance.30 9M16 RESULTS
UNIPOLSAI S.P.A. – MV TPL TECHNICAL INDICATORS
DIRECT BUSINESS
UNIPOLSAI S.P.A.
MV TPL Combined Ratio 9M15 9M16 Other MV TPL indicators Var. vs FY15
Direct business 95.2% 100.4% Total portfolio +2.1%
Expense ratio a 23.1% 22.5% retail +2.0%
commissions/premiums 13.3% 14.0% fleets +4.0%
other operating Portfolio average premium -4.5%
9.8% 8.5%
expenses/premiums
Var. vs 9M15
b
Loss ratio (incl. OTI) 72.1% 77.9%
No. of claims reported
+3.0%
(followed-up passive claims)
Frequency -0.02 p.p.
a Operating expenses/written premiums from direct business (before reinsurance).
b Claims charges/earned premiums from direct business (before reinsurance).
Operating figures, current basis of consolidation.31 9M16 RESULTS
NON-LIFE – OTHER INSURANCE COMPANIES
€m
LINEAR – UNISALUTE – ARCA ASSICURAZIONI
9M15 9M16 ∆%
Premium income 419 450 +7.3%
MV 129 124 -3.9%
Accident&Health 261 293 +12.4%
Other 29 32 +11.4%
CoR direct business 87.2% 85.0% -2.1 p.p.
Expense ratio 17.4% 17.1% -0.4 p.p.
Loss ratio (incl. OTI) 69.7% 68.0% -1.8 p.p.
IAS net result 48 57 +19.5%
Aggregate operating figures (Linear + Unisalute + Arca Assicurazioni).32 9M16 RESULTS
LIFE – DIRECT INCOME
€m
UNIPOL GRUPPO FINANZIARIO UNIPOLSAI
7%
5% 10%
-13.4% -20.6% 7%
14%
18%
6,411 5,552 4,9113,512 3,8993,036
65%
74%
9M15 9M16 9M15 9M16
Traditional Capitalization Traditional Capitalization
Unit linked Pension funds Unit linked Pension funds
Income by company 9M15 9M16 Income by company 9M15 9M16
UnipolSai Group 4,911 3,899 UnipolSai S.p.A.a 2,379 2,210
Arca Vita+AVI 1,498 1,653 Popolare Vita+Lawr. Life 2,404 1,611
Other companies 2 0 Other companies 128 78
Unipol Gruppo Finanziario 6,411 5,552 UnipolSai Group 4,911 3,899
a Pro-forma figures incl. Liguria Vita.
Operating figures.33 9M16 RESULTS
LIFE – SEGREGATED ACCOUNTS YIELDS AND MINIMUM GUARANTEED
UNIPOL GRUPPO FINANZIARIO UNIPOLSAI
3.4% 3.4%
FY15 FY15
1.8% 1.9%
1.6% 1.5%
3.2% 3.3%
9M16 9M16
1.6% 1.8%
1.6% 1.5%
average segregated accounts yields average segregated accounts yields
average minimum guaranteed average minimum guaranteed
Operating figures.34 9M16 RESULTS
Direct deposits Indirect deposits
BANKING BUSINESS KPIs -0.3% -0.9%
€m
9M15 9M16 ∆%
10,015 9,983 51,214 50,759
Gross operating income 270 257 -4.9%
o/w interest income 179 162 -9.6%
o/w non-interest FY15 9M16 FY15 9M16
91 95 +4.3%
income
Cost / Income 79.6% 85.1% +5.5 p.p.
Lending a Tangible Book Value b
LLPs (Unipol Banca) 48 35 -26.2% -1.7% +1.1%
Pre-tax result 8 3 -60.3%
Net result 6 2 -65.4%
8,766 8,616 725 733
LLPs (UGF) 20 30 +50.0%
Total LLPs 68 65 -3.7%
FY15 9M16 FY15 9M16
FY15 9M16 ∆%
UGF banking Group CET1 ratio 16.3%
Total NPE coverage ratio c 44.5% 45.3% +0.8 p.p.
The banking business includes Unipol Banca and its subsidiaries.
a Net of provisions at UGF S.p.A. level.
b UB + Finitalia.
c Coverage ratio including UGF LLPS.35 9M16 RESULTS
BANKING BUSINESS – FOCUS ON NPE
€m
FY15 9M16
Breakdown of total
NPE portfolio net gross coverage net gross coverage
loans loans ratio a loans loans ratio a
Bad loans (Sofferenze) 1,129 2,644 57.3% 1,112 2,629 57.7%
Unlikely to pay 925 1,145 19.2% 804 997 19.4%
Past due 122 129 5.1% 157 164 4.0%
Total NPE 2,176 3,918 44.5% 2,073 3,790 45.3%
Gross NPE trend Coverage ratio trend
3,918
57.3% 57.7%
3,923 55.4%
44.5% 45.3%
42.3%
3,790
FY14 FY15 9M16 FY14 FY15 9M16
bad loans NPE
Including provisions set aside by UGF.
a Coverage ratio including UGF LLPS.36 9M16 RESULTS
ASSET ALLOCATION
UNIPOL GRUPPO FINANZIARIO UNIPOLSAI
Total investments €64.7bn 1.8% 1.0% 1.4% 1.1%
Total investments €54.2bn
3.1% 2.1%
6.5% 7.4%
Bonds Bonds
Real Estate Real Estate
Cash Equity and funds
Equity and funds Cash
Other 87.7% Other 88.0%87.7%
Breakdown of bond portfolio Breakdown of bond portfolio
7.8%
Italian govies 25.1% Italian govies
26.7%
Non-Italian govies Non-Italian govies 77,9%
Corporate Corporate
9.2%
65.6% 65.5%
74.9 % Total Govies 67.7% 73.3 % Total Govies 67.5%
Operating figures.37 9M16 RESULTS
FINANCIAL INVESTMENT YIELDS
UNIPOL GRUPPO FINANZIARIO UNIPOLSAI
9M16 9M16
Non-Life Life Total Non-Life Life Total
Yield €m Yield% €m Yield% €m Yield%
€m Yield% €m Yield% €m
%
Coupons and Coupons and
331 3.2% 1,028 3.6% 1,363 3.4% 314 3.3% 885 3.7% 1,199 3.6%
dividends dividends
Realised and Realised and
unrealised 48 0.5% 19 0.1% 69 0.2% unrealised 45 0.5% 8 0.0% 52 0.2%
gains/losses gains/losses
Total 379 3.7% 1,047 3.7% 1,433 3.6% Total 358 3.7% 893 3.8% 1,252 3.7%
€576m €566m
9M15 9M15
Operating figures.38 9M16 RESULTS
REAL ESTATE
UNIPOL GRUPPO FINANZIARIO – Tot. ptf €4.2bn
Evolution of RE portfolio (€m) Breakdown by cluster Breakdown by sector
4,307 8% 5%
FY15
Core
11% 20%
Core instrum. Non-Life
38%
investments a +40 Life
12% Trading
6% Real Estate
Value Added
purchases +12 69% Other sector
Land and development
31%
sales b -37
depreciation -58
writedowns -34 Breakdown by use Breakdown by area
other c -46 3%7% Offices 8% 1% Milan
7% 1% Residential 7%
Other
4,184 Land 38%
9M16 11% 13% Bologna
49% Hotel
Florence
11% Condos and Ind.
Breakdown by ownership 15% Rome
Commercial
11% 18% Turin
Health centres
Non-domestic
Other RE investm.
UnipolSai 96% UGF 4%
a Including capex and equity for JVs.
b No. 37 deeds as at 30 September 2016.
c Including exchange variation and operations on R.E. funds and other associated companies.
Operating figures.39 9M16 RESULTS
SHAREHOLDERS’ EQUITY AND AFS RESERVE
€m
UNIPOL GRUPPO FINANZIARIO UNIPOLSAI
Shareholders’ equity – roll forward Shareholders’ equity – roll forward
8,445 439 8,271 6,615 427 6,519
-70 -309 -234 -60 -441 -21
FY15 Var. in 9M16 Dividends Other 9M16 FY15 Var. in 9M16 Dividends Other 9M16
shareholders’ AFS net result shareholders’ shareholder’ AFS net result shareholders’
equity reserve equity equity reserve equity
Variation in AFS reserve Variation in AFS reserve
982 133 912 935 119 875
-202 -180
FY15 AFS variation variation 9M16 AFS FY15 AFS variation variation 9M16 AFS
reserve in equity in bond reserve reserve in equity in bond reserve40 9M16 RESULTS
9M16 SOLVENCY II
€bn
UNIPOL GRUPPO FINANZIARIO UNIPOLSAI
Solvency II (consolidated figures) Solvency II (consolidated figures) Solvency II (UnipolSai solo)
1.37x 1.69x 1.90x
4.3 3.8
4.9
6.7 7.3 7.3
3.0 3.4
1.8
Own funds SCR Excess Own funds SCR Excess Own funds SCR Excess
capital capital capital
Figures calculated using the USP (Undertaking Specific Parameters) according to current regulation.41 DISCLAIMER This presentation contains information and data, as well as expectations, estimates, forecasts of results and events that reflect the current views and assumptions of the Company’s management. Such content may significantly differ from what will actually happen as a result of events, risks, economic conditions and market factors not known or not foreseeable at present, or that are outside of the management’s control. Furthermore, no obligation will be assumed as to any future update of the presentation contents. The group structure covered by the information contained herein should be understood as at 31 December 2015. Pursuant to Article 154-bis, second paragraph, of the “Consolidated Law on Financial Intermediation”, Maurizio Castellina, senior executive responsible for financial reporting of Unipol Gruppo Finanziario S.p.A. and UnipolSai Assicurazioni S.p.A., hereby declares that the information relating to the Company’s financial statements contained in the presentation matches the documentary findings, accounting books and records.
42 INVESTOR RELATIONS CONTACTS Adriano Donati Head of Investor Relations Tel +39 051 507 7063 investor.relations@unipol.it investor.relations@unipolsai.it Giancarlo Lana Tel +39 011 66 57 642 Eleonora Roncuzzi Tel +39 051 507 7063 Giuseppe Giuliani Tel +39 051 507 7218 Carlo Latini Tel +39 051 507 6333 Silvia Tonioli Tel +39 051 507 2371 Alena Harbatava Tel +39 051 5072919
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