Unipol Group Presentation of consolidated results as at 30 September 2013
Carlo Cimbri - CEO Bologna, 14 November 2013 • Consolidated results • Insurance business • Non-life insurance business • Life insurance business Agenda • Banking business • Real Estate • Investment management • Capital and Solvency • Fondiaria-SAI and Milano Assicurazioni key consolidated results
UNIPOL GROUP: CONSOLIDATED RESULT BY SEGMENT 9M13*
€m
Non-life Life Banking Real estate & Holding Consolidated business business business Other activities net result
510 200 -147 -66 - 133 363
Incl. amortization Incl. Unipol Banca Incl. amortization Incl. provisions on on intangible loans and other Incl. integration on intangible Unipol banca loans assets of VIF assets write-downs costs of -43 €m assets VOBA of portfolio of -37 €m of -245 €m before tax. -81 €m -100€m before tax. before tax. before tax. before tax.
* Pre-tax results, pre-minorities. 3 UNIPOLSAI: 9M13 NET RESULTS OF COMPANIES INVOLVED IN THE MERGER
€m
IAS results
215 168 92 -9
Unipol Fondiaria-SAI Milano Premafin Assicurazioni Assicurazioni
Italian GAAP results
369
133 174 -11
Unipol Fondiaria-SAI Milano Premafin Assicurazioni Assicurazioni
Note: stand alone companies’ result 4 • Consolidated results • Insurance business • Non-life insurance business • Life insurance business Agenda • Banking business • Real Estate • Investment management • Capital and Solvency • Fondiaria-SAI and Milano Assicurazioni key consolidated results
DIRECT INSURANCE INCOME €m
9M12 9M13 +0.2% 12,170 12,192
4,466 5,135 +15.0%
7,249 7,018 -3.2%
2,549 4,922 5,174 +5.1% 2,819 +10.6%
7,704 +20.8% 1,918 2,316 7,057 -8.4%
4,700 4,199 -10.7% 3,004 2,858 -4.9%
Unipol Group Fondiaria-SAI Unipol Group* Unipol Group Fondiaria-SAI stand alone consolidated stand alone consolidated Unipol Group
Life premiums Non-life premiums
* Management figures including Premafin-Fondiaria-SAI Group data for the whole period 1 January – 30 September 2012 6 • Consolidated results • Insurance business • Non-life insurance business • Life insurance business Agenda • Banking business • Real Estate • Investment management • Capital and Solvency • Fondiaria-SAI and Milano Assicurazioni key consolidated results
NON-LIFE – DIRECT PREMIUM INCOME €m
7,704 -8.4% 7,057 Motor 13.0% 2,665 2,588 -2.9% Accident & Health
11.2% Property -11.3% 63.3% 5,039 4,468 7.0% General TPL
5.5% 9M12* 9M13 Other Non-Motor Motor
Income by company (Unipol Group stand alone) Income by company (Fondiaria-SAI cons.)
-10.5% Unipol Ass.ni 2,423 -5.5% Fondiaria-SAI 2,263
Milano Ass.ni 1,587 -11.4% Unisalute 194 +3.6% -4.9% Liguria 126 -18.7% -10.7% Linear 157 -4.7% Siat 93 +7.4% Other Arca 85 -3.2% 129 -6.4% companies
* Management figures including Premafin-Fondiaria-SAI Group data for the whole period 1 January – 30 September 2012 8 NON-LIFE - COMBINED RATIO (DIRECT BUSINESS)
Unipol Group Fondiaria-SAI Unipol Group stand alone consolidated
101.6% 99.3% 95.7% Combined ratio 15.5% 15.6% 15.7% 7.5% 92.3% 7.6% 92.1% 7.9% 91.8% Expense ratio 15.5% 16.7% 16.0% 23.9% 24.6% 25.6% 78.6% 8.4% 8.6% 8.9%
72.1% 76.1% Loss ratio* 77,1% 75,2% 70,2% 67.6% 68.4% 68,8% 66.3%
9M12 9M13 9M12 9M13 9M129M12** 9M13
Commissions/premiums Combined Ratio net of Other operating expenses/premiums reinsurance 93.4% Loss Ratio
* Including OTI/premiums ** Management figures including Premafin-Fondiaria-SAI Group data for the whole period 1 January – 30 September 2012 9 NON-LIFE – MV TPL TECHNICAL INDICATORS 9M13
Unipol Assicurazioni S.p.A. Fondiaria-SAI S.p.A. Milano Assicurazioni S.p.A.
Var vs FY12 Var vs FY12 Var vs FY12
Total portfolio -1.9% -5.2% -4.3% o/w: Retail -1.6% -5.0% -4.3% Fleets -9.1% -8.8% -3.6%
Var vs 9M12 Var vs 9M12 Var vs 9M12
Portfolio -2.9% -4.3% average premium -4.7%
No. of claims reported -9.0% -16.3% -14.5% (followed up passive claims)
Claims settlement speed (current year managed claims) 0.0 p.p. +0.1 p.p. +0.2 p.p.
Frequency -0.5 p.p. -0.5 p.p. -0.6 p.p.
10 • Consolidated results • Insurance business • Non-life insurance business • Life insurance business Agenda • Banking business • Real Estate • Investment management • Capital and Solvency • Fondiaria-SAI and Milano Assicurazioni key consolidated results
LIFE – DIRECT INCOME €m
Index/Unit linked: +15.0% 1,131 (+30.7%)
22.0%
5,135 57.7% 4,466 13.7% Capitalization: 705 (+100.8%) 6.6% 9M12* 9M13 Traditional: Pension Funds: 2,961 (+20.6%) 338 (-57.4%)
Income by company Income by company 9M12 included closed-end pension (Unipol Group stand alone) funds for 411€m one-off. (Fondiaria-SAI cons.)
Unipol Ass.ni 1,581 +6.1% Fondiaria -SAI 593 +2.0%
Milano Ass.ni 240 -3.1% Arca Vita+AVI 735 +72.2% +20.8% +10.6% PopVita + 1,867 LawLife +15.0%
Linear Life 0.8 +0.1% Other companies 119 +24.2%
*Management figures including Premafin-Fondiaria-SAI Group data for the whole period 1 January – 30 September 2012 12 • Consolidated results • Insurance business • Non-life insurance business • Life insurance business Agenda • Banking business • Real Estate • Investment management • Capital and Solvency • Fondiaria-SAI and Milano Assicurazioni key consolidated results
UNIPOL BANCA GROUP* €m Direct Deposits Indicators
Third parties Unipol Group Securitization Lending indicators vs Unipol Gr. FY12 9M13 9,685 9,779 +1.0% Net non-performing loans 1,937 2,142 289 459 +58.7% Net non-performing loans/loans 19.4% 22.5% 1,288 1,247 -3.2% % Bad loans coverage ratio 37% 44% % NPL coverage ratio 24% 31% 8,108 8,073 -0.4% % Total loans coverage ratio 6% 10%
FY12 9M13 Capital indicators Unipol Banca Gr. FY12 9M13
Tier 1 ratio 8.4% 7.3% Lending** (= Core Tier 1 ratio) Customer Securitised Total capital ratio 14.5% 13.3%
10,009 9,520 -4.9% Economic indicators Unipol Banca Gr. 9M12 9M13
3,284 2,954 -10.0% Gross operating income 276 235 Cost/Income ratio 73% 80% Pre-tax result 14 -198 6,725 6,566 -2.4% Net result 6 -149
FY12 9M13 9M13 loans provisions: 245 €m in Unipol Banca accounts + 100 €m in UGF accounts.
*Management figures. ** Figures net of UGF SpA provisions 14 • Consolidated results • Insurance business • Non-life insurance business • Life insurance business Agenda • Banking business • Real Estate • Investment management • Capital and Solvency • Fondiaria-SAI and Milano Assicurazioni key consolidated results
UNIPOL GROUP - REAL ESTATE*
Total portfolio 4,9 €bn Breakdown by company Breakdown by cluster
UGF 4% Develop and Land 9%
Core 33% Value Added 13%
Trading 15% UnipolSai 96%
Core-Instrumental 30%
Breakdown by business segment Breakdown by type
Others 19% Property and Commercial 2% other Activities 44% Health Centre 3%
Land 10% Offices 42% Non-life 50%
Tourism 12%
Life 6% Residential 12%
Signed promises of sale for ca. 66 €m. * Management figures. 16 • Consolidated results • Insurance business • Non-life insurance business • Life insurance business Agenda • Banking business • Real Estate • Investment management • Capital and Solvency • Fondiaria-SAI and Milano Assicurazioni key consolidated results
FINANCIAL INVESTMENTS 9M13 * €bn
INVESTMENTS BOND PORTFOLIO 46.5 €bn 42.2 €bn
Breakdown by asset Government: Government Spain Corporate Equity: Others 3.3% Ireland 4.8% 1.2 (2.7%) Funds and Other: Portugal Cash: 0.8 (1.7%) 1.9% 2.2 (4.8%) Financials 15.7%
Bonds: 42.2 (90.8%)
Government Italy 74.3%
Government 79.5%
* Insurance investments managed by Unipol Group, mark to market, excluding class D, debt securities issued by Group companies, DDOR and Lawrence Life. Management figures. 18 FOCUS ON STRUCTURED €m
31/12/2012 Fair value hierarchy Book Market Plus/Minus value value Level 1 2,311 2,341 30 Level 2 and 3 5,295 4,741 -554 Total 7,606 7,082 -524
30/09/2013 Fair value hierarchy Book Market Plus/Minus Exposure reduced by value value 1 €bn Level 1 2,233 2,348 115 ytd achieving Level 2 and 3 4,906 4,402 -503 40€m of capital gains. Total 7,139 6,751 -388
11/11/2013 Fair value hierarchy Book Market Plus/Minus value value Level 1 2,097 2,266 169 Level 2 and 3 4,535 4,172 -363 Total 6,632 6,438 -194
The classification according to the fair value hierarchy is based on three Levels used for determining the fair value (mark to market, mark to model, counterparty) and on whether the inputs used in the case of mark to model valuation technique are observable (IFRS13). • Level 1: this category includes financial assets and liabilities valued on a mark to market basis; • Level 2: this category includes financial assets and liabilities for which a pricing model based on observable market inputs is used; • Level 3: this category includes financial assets and liabilities for which the determination of the fair value is based on tecniques which are prevalently based on significant input not available on the market and results, therefore , in estimates and assumptions by management. 19 9M13 FINANCIAL INVESTMENTS’ INCOME * €m
244 1,303 1,540 -7 TOTAL
coupons and dividends gains fair value through P&L total income i Yield % 3.86% 0.72% -0.02% 4.57%
73 357 418 -12 FOCUS ON NON-LIFE coupons and dividends gains fair value through P&L total income Yield % 3.26% 0.66% -0.11% 3.82%
169 3 1,111 939
FOCUS ON LIFE coupons and dividends gains fair value through P&L total income Yield % 4,25% 0,77% 0.01%i 5.03%
*Income from insurance companies managed by Unipol Group , excluding class D, DDOR, Lawrence Life. Management figures. 20 • Consolidated results • Insurance business • Non-life insurance business • Life insurance business Agenda • Banking business • Real Estate • Investment management • Capital and Solvency • Fondiaria-SAI and Milano Assicurazioni key consolidated results
AFS RESERVE TREND* €m FY 2012 1H 2013
~800 €m 9M13 on 11 November 2013
301 344
225
243 252 181
101 49 44 FY12 1H13 9M13
Equity* Bonds *
* Total AFS reserve (group+third parties). Break-up based on in-house estimates. 22 . SOLVENCY AS AT 30 SEPTEMBER 2013 €bn Fondiaria-SAI Milano Assicurazioni Unipol Group Consolidated Solvency Consolidated Solvency
Solvency I* Solvency I Solvency I
4.4 1.7x 7.5 2.1 2.7 1.3x 1.4x 0.7 3.1 1.1 0.6 0.3
Solvency II** 1.8x
Available capital Solvency requirements Excess capital
*After IVASS Ruling no. 43 ** Solvency ratio calculated using the internal model and partly the standard formula according to the technical requirements of QIS5. 23 • Consolidated results • Insurance business • Non-life insurance business • Life insurance business Agenda • Banking business • Real Estate • Investment management • Capital and Solvency • Fondiaria-SAI and Milano Assicurazioni key consolidated results
FONDIARIA-SAI – KEY CONSOLIDATED RESULTS €m 9M12 9M13 var. % Premium direct income (local GAAP) 7,248.7 7,017.5 -3.2% Non-Life business 4,700.0 4,198.6 -10.7% Life (including financial contracts) 2,548.7 2,818.9 10.6%
Loss Ratio (direct business) 78.6% 68,4% -10.2 p.p. Expense Ratio (direct business) 23.0% 23,9% 0.9 p.p. Combined Ratio (direct business) 101.6% 92,3% -9.3 p.p.
Consolidated pre-tax result 45.1 566,1 n.m. Non-Life business 38.2 449,9 n.m. Life business 74.5 182,2 n.m. RE -35.0 -41,7 -19.1% Other business -32.6 -24,3 25.5% Inter-segment eliminations 0.0 0,0 0.0%
Pre-minorities net result -1.1 323,9 n.m. Post-minorities net result -21.0 234,1 n.m.
FY12 9M13 var. % Total shareholders' equity 2,762.7 3.064,9 10.9% Group shareholders' equity 2,115.7 2.368,8 12.0% o/w AFS reserve 257.6 257,3 - 0.1%
Solvency Ratio 1.1 x 1.3 x +0.2 x
25 MILANO ASSICURAZIONI – KEY CONSOLIDATED RESULTS €m 9M12 9M13 var. % Premium direct income (local GAAP) 2,259.2 2,011.5 -11.0% Non-Life business 1,998.2 1,758.2 -12.0% Life (including financial contracts) 261.0 253.3 -3.0%
Loss Ratio (direct business) 80.7% 69.0% -11.7 p.p. Expense Ratio (direct business) 22.0% 23.3% 1.3 p.p. Combined Ratio (direct business) 102.7% 92.3% -10.4 p.p.
Consolidated pre-tax result 3.0 274.1 n.m Non-life business -22.5 230.5 n.m. Life business 32.1 52.9 n.m. RE -5.5 -9.5 n.m. Other business -1.1 0.2 n.m. Inter-segment eliminations 0.0 0.0 n.m.
Pre-minorities net result -11.6 169.6 n.m. Post-minorities net result -11.5 169.7 n.m.
FY12 9M13 var. %
Total shareholders' equity 1,039.2 1,206.3 16,1% Group shareholders' equity 1,037.9 1,204.9 16,1% o/w AFS reserve 106.7 101.8 -4,6%
Solvency Ratio 1.2x 1.4x +0.3x
26 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.
27 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
Laura Marrone Tel +39 051 507 2183 Floriana Amari Tel +39 02 64 02 25 74
Giuseppe Giuliani Tel +39 051 507 7218 [email protected]
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