Unipol Group Presentation of consolidated results as at 31 March 2013
Carlo Cimbri – CEO Bologna, 9 May 2013 CONTEXT
Please be advised that figures as at 31 March 2012 have been appropriately restated and reclassified following accounting standards, classification parameters and segment reporting changes effective on 2012 Consolidated Financial Statements as approved by the UGF’s Board of Directors of 24 April 2013.
Consolidated result as at 31 March 2012 has been recalculated at 88€m as against 71€m reported in the Interim Financial Report as at 31 March 2012 (BoD of 10 May 2012).
2 • Consolidated results • Insurance business • Non-life insurance business Agenda • Life insurance business • Banking business • Investment management • Capital and Solvency • Fondiaria-SAI and Milano Assicurazioni key consolidated results
UNIPOL GROUP: CONSOLIDATED RESULT BY BUSINESS SECTOR €m 1Q12* 1Q13 before Premafin Group acquisition
Non-life Life Banking R.E. Holding Cons. Non-life Life Banking R.E. Holding Cons. Other busin. Net Other busin. Net + Cons. adj. result + Cons. adj. result
74 27 3 -0 -16 88 153 74 -13 -3 -76 135
No integration costs in 1Q13
Note: after tax and before minorities results * Figures recalculated vs the1Q12 approved by the BoD of 10 May 2012 following the restatement of the 2011 comparative data included in 2012 4 Consolidated Financial Statement. The original net results by segment were: Non-life +68, Life +16, Banking +3, Holding and Other -16, Total 71. UNIPOLSAI: NET RESULTS OF COMPANIES INVOLVED IN THE MERGER €m Unipol Assicurazioni S.p.A. Fondiaria-SAI S.p.A.
96.5
51.3 59.4 49.7
1Q13 1Q13
Milano Assicurazioni S.p.A. Premafin S.p.A.
46.4 40.3 - 2.5 - 3.1
1Q13 1Q13
IAS result Italian GAAP result
Note: stand alone companies’ result 5 • Consolidated results • Insurance business • Non-life insurance business Agenda • Life insurance business • Banking business • Investment management • Capital and Solvency • Fondiaria-SAI and Milano Assicurazioni key consolidated results
DIRECT INSURANCE INCOME €m
1Q12 1Q13
4,485 +7.8% 4,161
1,452 2,036 +40.2% 2,629 2,507 +4.9%
872 1,856 +12.2% +36.1% 1,654 1,188
580 2,709 848 +46.3% 2,449 -9.6% 1,635 1,441 -11.8% 1,075 1,008 -6.2%
Unipol Group Fondiaria-SAI Unipol Group Unipol Group Fondiaria-SAI Unipol Group stand alone consolidated pro-forma stand alone consolidated
Non-life premiums Life premiums
7 • Consolidated results • Insurance business • Non-life insurance business Agenda • Life insurance business • Banking business • Investment management • Capital and Solvency • Fondiaria-SAI and Milano Assicurazioni key consolidated results
NON-LIFE – DIRECT PREMIUM INCOME €m Motor Non Motor 2,709 2,449 -9.6% Motor 15.0% 983 933 -5.0% Accident & Health 10.7% Property 61.9% 1,726 1,516 -12.2% 6.8% General TPL
5.6% Other 1Q12 1Q13 pro-forma
Income by company (Unipol Group stand alone) Income by company (Fondiaria-SAI cons.)
Fondiaria- Unipol 758 -10.6% 823 -6.8% SAI Ass.ni Milano 556 Ass.ni -14.3% Unisalute 103 -3.3% -6.2% Liguria 50 -20.1% -11.8% Linear 55 +0.2% Siat 33 +22.1% Other -8.4% Arca 27 -10.2% companies 44
o/w ca. 3 pp (estimate) due to MV TPL premiums’ accounting changes after elimination of tacit renewal 9 NON-LIFE - COMBINED RATIO (DIRECT BUSINESS)
100.6% Combined ratio 97.8% 93.2% 93.6% 92.0% 89.4% 15.5% 15.3% 15.1% 15.2% 15.5% 16.0% 7.1% 22.9% 23.4% Expense ratio 24.1% 7.1% 7.0% 7.7% 7.9% 8.2%
Loss r atio* 78.0% 71.1% 70.7% 75.4% 65.2% 68.6%
1Q12 1Q13 1Q12 1Q13 1Q12 1Q13 pro-forma
Unipol Group Fondiaria -SAI Unipol Group stand alone consolidated
Loss Ratio Other operating expenses/premiums Commissions/premiums
* Including OTI/premiums 10 NON-LIFE – MV TPL TECHNICAL INDICATORS 1Q13
Unipol Assicurazioni S.p.A. Fondiaria-SAI S.p.A. Milano Assicurazioni S.p.A. Var vs 1Q12 Var vs 1Q12 Var vs 1Q12
Total portfolio -3.4% -10.1% -6.7% o/w: Retail -3.5% -7.1% -6.8% Fleets -1.8% -40.6% -4.9%
Portfolio -1.0% -1.2% -2.0% average premium
No. of claims reported -11.8% -16.6% -15.4% (followed up passive claims)
Claims settlement speed (current year managed claims) -1.2 p.p. +0.8 p.p. +1.3 p.p.
Frequency -0.8 p.p. -0.6 p.p. -0.8 p.p.
11 • Consolidated results • Insurance business • Non-life insurance business Agenda • Life insurance business • Banking business • Investment management • Capital and Solvency • Fondiaria-SAI and Milano Assicurazioni key consolidated results
LIFE – DIRECT INCOME €m
+40.2% Index/Unit linked: 705 (+134.3%) 34.6%
o/w 130 €m for 2,036 retirement policy 1,452 45.6% 13.3% Capitalization: 271 (+133.6%) 6.5% 1Q12 1Q13 pro-forma Traditional: Pension Funds: 928 (+6.6%) 132 (-20.1%)
Income by company (Unipol Group stand alone) Income by company (Fondiaria-SAI cons.)
Fondiaria-SAI 215 +9.1% +33.9% Unipol Ass.ni 567 Milano Ass.ni 81 -4.2%
Arca Vita +80.0% +46.3% PopVita + +36.1% 281 854 +51.2% +AVI LawLife Other n.s. 38 +44.8% Linear Life 0,0 companies
13 LIFE – APE BY COMPANY €m
1Q12 1Q13 var. %
Unipol Assicurazioni S.p.A. 47 62 33.8%
Arca Vita+AVI 16 29 75.4%
Fondiaria-SAI S.p.A. 23 25 9.7%
Milano Assicurazioni S.p.A. 10 11 7.8%
Popolare Vita+Lawrence Life 57 88 53.7% Other Companies 3 5 37.8%
Unipol Group pro-quota 83* 115 38.7%
* Pro-forma 14 • Consolidated results • Insurance business • Non-life insurance business Agenda • Life insurance business • Banking business • Investment management • Capital and Solvency • Fondiaria-SAI and Milano Assicurazioni key consolidated results
UNIPOL BANCA GROUP €m Direct Deposits* Indicators
third parties Unipol Group securitisation Unipol Unipol Unipol Unipol Banca Gr. Group*** Banca Gr. Group*** 9,685 9,695** +0.1% 289 498 +72.6% Lending indicators FY12 1Q13 1,288 1,110 -13.8% Net non-performing loans 2,040 1,937 2,114 1,952 Net non-performing loans/loans 20.2% 19.4% 21.0% 19.7%
8,108 8,087 -0.3% NPL coverage ratio 20.3% 24.3% 21.1% 27.2%
Bad&doubtful loans coverage ratio 31.9% 36.9% 32.1% 40.0%
FY12 1Q13 Total loans coverage ratio 5.3% 6.2% 5.7% 7.2%
Lending Capital indicators FY12 1Q13 customers securitised Tier 1 ratio 8.4% 8.1% (= Core Tier 1 ratio) 10,112 10,053 -0.6% Total capital ratio 14.5% 14.0%
3,284 3,232 -1.6% Economic indicators 1Q12 1Q13 Interest income 47 51 Non-interest income 52 37 6,828 6,822 -0.1% Gross operating income 100 88 70.9% FY12 1Q13 Cost/Income ratio 66.5% Gross result 10 -16**** Net result 3 -15 * Management figures *** Including UGF S.p.A. provisions ** Accounting figure 9,952 €m (+0.4%) including collateralized deposits c/o **** Management figure including assets under disposal 16 Cassa Compensazione e Garanzia (258 € m). • Consolidated results • Insurance business • Non-life insurance business Agenda • Life insurance business • Banking business • Investment management • Capital and Solvency • Fondiaria-SAI and Milano Assicurazioni key consolidated results
FINANCIAL INVESTMENTS 1Q13* €bn
INVESTMENTS BOND PORTFOLIO 45.1 €bn 41.3 €bn
Breakdown by asset Government: Spain Government: Others 3.9% Corporate Cash: Ireland Equity and Funds: 5% 1.8 (4.0%) Portugal 2.0 (4.5%) 2.2% Financials 17%
Bonds: 41.3 (91.5%)
Government: Italy 72.0%
Government (78% on tot. Bonds)
* Insurance investments managed by Unipol Group, mark to market, excluding class D, debt securities issued by group’s companies, DDOR and Lawrence Life 18 INCOME FROM FINANCIAL INVESTMENTS 1Q13* €m
63 411 462 -13 TOTAL
coupons and dividends gains fair value through P&L total income Yield % 3.73% 0.57% -0.11% 4.18%
19 108 113 -14 FOCUS ON NON-LIFE coupon and dividends gains fair value through P&L total income Yield % 3.00% 0.52% -0.38% 3.13%
42 343 301 -0 FOCUS ON LIFE
coupon and dividends gains fair value through P&L total income Yield % 4.17% 0.58% -0.00% 4.75%
*Income from insurance companies managed by Unipol Group, excluding class D, debt securities issued by group’s companies, DDOR and Lawrence Life 19 • Consolidated results • Insurance business • Non-life insurance business Agenda • Life insurance business • Banking business • Investment management • Capital and Solvency • Fondiaria-SAI and Milano Assicurazioni key consolidated results
AFS RESERVE TREND €m
301
252 125
69
49 56
FY12 1Q13
Spread Btp/Bund 318 345
Equity* Bonds*
* Break-up based on in-house estimates 21 SOLVENCY I* AS AT 31 MARCH 2013 €bn Fondiaria-SAI Milano Assicurazioni Unipol Group Consolidated Solvency Consolidated Solvency
4.4 1.6x 7.0 2.4 2.2
1.1x 0.8 1.2x 2.6 0.9 0.3 0.2
Available capital Solvency requirements Excess capital
* After IVASS Ruling no. 43 22 • Consolidated results • Insurance business • Non-life insurance business Agenda • Life insurance business • Banking business • Investment management • Capital and Solvency • Fondiaria-SAI and Milano Assicurazioni key consolidated results
FONDIARIA-SAI – KEY CONSOLIDATED RESULTS €m
1Q12 1Q13 var. % Premium income (local GAAP) 2,506.9 2,628.8 4.9% Non-Life business 1,634.6 1,441.2 -11.8% MV 1,101.6 931.1 -15.5% Non-MV 533.0 510.1 -4.3% Life business (inc. financial contracts) 872.4 1,187.7 36.1%
Loss Ratio (direct business) 78.0% 70.7% -7.3 p.p. o/w Other technical items 6.4% 3.8% -2.6 p.p. Expense Ratio (direct business) 22.6% 22.9% +0.3 p.p. Combined Ratio (direct business) 100.6% 93.6% -7.0 p.p.
Consolidated pre-tax result 53.3 195.0 n.s. Non-Life business 9.2 132.8 n.s. Life business 59.8 78.2 30.8% RE -5.7 -6.1 7.0% Other businesses -10.0 -9.9 -1.0% Inter-segment eliminations 0.0 0.0 0.0% Pre-minorities net result 29.1 99.4 n.s. Post-minorities net result 29.9 77.1 n.s.
FY12 1Q13 var. %
Total Shareholders' equity 2,762.7 2,733.6 -1.1% Group Shareholders' equity 2,115.7 2,133.4 0.8% o/w AFS Reserve 257.6 195.2 -24.2%.
Solvency Ratio 1.1x 1.1x 0.0x 24 MILANO ASSICURAZIONI – KEY CONSOLIDATED RESULTS €m
1Q12 1Q13 var. % Premium income (local GAAP) 816.8 706.2 -13.5% Non-Life business 729.1 620.9 -14.8% MV 513.9 425.3 -17.2% Non-MV 215.2 195.5 -9.1% Life business (inc. Financial contracts) 87.7 85.3 -2.7%
Loss Ratio (direct business) 77.8% 72.3% -5.5 p.p. o/w Other technical items 5.9% 4.0% -2.0 p.p. Expense Ratio (direct business) 21.2% 22.6% 1.4 p.p. Combined Ratio (direct business) 99.0% 94.8% -4.1 p.p.
Consolidated pre-tax result -5.8 82.7 n.s. Non-Life business -22.6 62.8 n.s. Life business 18.7 22.3 19.0% RE -1.4 -1.4 -2.0% Other businesses -0.6 -1.0 n.s. Inter-segment eliminations 0.0 0.0 0.0% Pre-minorities net result -18.0 46.7 n.s. Post-minorities net result -17.9 46.7 n.s.
FY12 1Q13 var. %
Total Shareholders' equity 1,039.2 1,051.8 1.2% Group Shareholders' equity 1,037.9 1,050.4 1.2% o/w AFS Reserve 106.7 71.7 -32.8%.
Solvency Ratio 1.2x 1.2x -0.1x 25 DISCLAIMER
This presentation contains information relating to forecasts of figures, results and events which reflect the current management outlook but these could differ from what actually happens owing to events, risks and market factors that it is presently impossible either to know or to predict.
Maurizio Castellina, Giuseppe Nassi and Massimo Dalfelli, Senior Executives responsible for drawing up the corporate accounts of Unipol Gruppo Finanziario S.p.A., of Premafin S.p.A. and of Fondiaria-SAI S.p.A. and Milano Assicurazioni S.p.A. respectively declare, in accordance with Article 154-bis, para 2, of the Consolidated Finance Act, that the accounting information reported in this presentation corresponds to the figures in the documents, books and accounting records.
26 INVESTOR RELATIONS CONTACTS
Group IRO Adriano Donati Tel +39 051 507 7063
Unipol Contacts Fondiaria-SAI/Milano Contacts
Eleonora Roncuzzi Tel +39 051 507 7063 Giancarlo Lana Tel +39 011 66 57 642
Silvia Tonioli Tel +39 051 507 2371 Floriana Amari Tel +39 02 64 02 25 74
Laura Marrone Tel +39 051 507 2183 [email protected]
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