Consolidated Quarterly Report  As of March 31St, 2007 

Consolidated Quarterly Report  as of March 31st, 2007 

Approved by the Board of Directors on May 10th, 2007

Contents

Part One

Directors and Officers 7

Introduction 9

Group Structure 11

Part Two

Consolidated accounting schedules 15

Statement of reconciliation between the shareholders’ equity and profit for the period 23 of the Parent Company and the corresponding consolidated income

General approach and Scope of consolidation 27

Part Three

Q1 data and indicators 35

Management Report 43

Notes to the Accounts – Information on the Consolidated Balance Sheet and Income Statement 63

Notes to the Accounts – Acquisitions and Transfers 87

List of Tables

Tables

Table 1 – Key economic indicators 37

Table 2 – Key equity indicators 37

Table 3 – Employees and sales network 38

Table 4 – Reclassified consolidated balance sheet 39

Table 5 – Reclassified consolidated income statement 40

Table 6 – Reclassified consolidated income statement by segment of activities 41

Table 7 – Key indicators 41

Table 8 - Total premiums written 52

Table 9 – Investments - breakdown 56

Table 10 – Intangible assets 69

Table 11 – Tangible assets 70

Table 12 - Investments 70

Table 13 - Equity investments in subsidiary and associated companies and joint 71 ventures

Table 14 - Financial investments 72

Table 15 - Sundry receivables 73

Table 16 – Other asset items 74

Table 17 - Other assets 75

Table 18 – Shareholders’ equity 76

Table 19 – Breakdown of technical provisions 77

Table 20 – Financial liabilities 79

Table 21 - Payables 80

Table 22 – Other liability items 81

Table 23 - Other liabilities 81

Table 24 - Balance sheet of the group subject to disposal held for sale 91

Table 25 – Breakdown of technical reserves of the group subject to disposal held for sale 92

Table 26 – Income statement of the group subject to disposal held for sale 93

Table 27 – Premiums of the group subject to disposal held for sale 94

Directors and Officers

BOARD OF DIRECTORS

Chairman Mr. Paolo Bedoni (*)

Acting Deputy Chairman Mr. Giovannimaria Seccamani Mazzoli (*)

Deputy Chairman Mr. Giovanni Zonin (*)

Managing Director Mr. Ezio Paolo Reggia (*)

Secretary Mr. Ermanno Rho, Esq.(*)

Directors Mr. Pierluigi Angeli Mr. Luigi Baraggia, Esq. (*) Prof. Angelo Caloia Mr. Giuseppe Camadini (*) Mr. Luciano Colombini Prof. Angelo Ferro Mr. Stefano Gnecchi Ruscone Prof. Felice Martinelli Mr. Aldo Poli Mr. Pilade Riello, Cavaliere di Lavoro Mr. Pier Giorgio Ruggiero Mr. Domingo Sugranyes Bickel Prof. Antonio Tessitore

BOARD OF STATUORY AUDITORS

Chairman Prof. Alessandro Lai

Statutory Auditors Mr. Marco Bronzato Mr. Luigi de Anna

Alternate Auditors Mr. Massimo Ghetti Mr. Giovanni Glisenti

GENERAL MANAGEMENT

General Manager Mr. Giovan Battista Mazzucchelli (**) Joint General Manager Mr. Giancarlo Battisti

(*) The Directors whose names are marked with an asterisk are part of the Executive Committee

(**) Appointed on May 1st, 2007

Introduction

The Consolidated Quarterly Report of the Cattolica Group for the first quarter 2007 has been drafted based on article 82 of Consob resolution no. 11971 dated May 14th, 1999, and subsequent amendments, as well as Consob Recommendations.

The consolidated quarterly report has been prepared by the Parent Company Società Cattolica di Assicurazione – Soc. Coop., taking into account the provisions set forth in the international accounting standards and ISVAP Instruction 2404 dated December 22nd, 2005 and ISVAP Instruction 2460 dated August 10th, 2006.

As a result of the ongoing operations as of March 31st, 2007, which will lead to transfer of control of the equity investment in BPV Vita from the Parent Company, this investment was considered as an asset subject to disposal, pursuant to IFRS 5. Therefore, the figures previously included in the balance sheet and income statement have been reclassified and summarised under the items: “6.1 Non-current assets or of a group subject to disposal held for sale”, “6.1 Liabilities of a group subject to disposal held for sale” and “4 Profit (Loss) from business activities suspended”. Due to this reallocation, it was necessary to recalculate the corresponding comparative figures in the income statement.

For the breakdown of the balance sheet and income statement items relating to assets subject to disposal, refer to the section “Acquisitions and transfers” of the Notes to the Accounts.

The consolidated quarterly report contains:

• the economic figures of the first quarter of 2007 compared with the recalculated figures from the first quarter 2006; • the balance sheet figures at the close of the first quarter 2007, compared with the corresponding figures as of December 31st, 2006.

The consolidated quarterly report comprises the statements listed below:

• balance sheet; • income statement; • statement of changes in shareholders’ equity; • statement of cash flows; • statement of reconciliation between the shareholders’ equity and profit for the period of the Parent Company and the corresponding consolidated income; • general approach and scope of consolidation; • Q1 data and indicators; • Management Report; • notes to the accounts.

Group Structure

As of March 31 st, 2007

NON-LIFE LIFE OTHER

100% 50% 100% 100% (*) ABC Assicura BPV Vita Cattolica Immobiliare

33,33% 100% C.I.R.A. 100% C.I.R.A. Duomo Previdenza Polo Finanziario

Duomo Uni One 99,99% Assicurazioni

100% 50,1% Lombarda Assicurazioni Lombarda Vita

100% 0,21% 90,99% 97% Persona Life Cattolica IT Services 8,8% TUA Assicurazioni 95,17% 100% Risparmio & Previdenza di.CA

66% 100% San Miniato Previdenza TUA Retail

50% Axa Cattolica Uni One Servizi Previdenza in Azienda 100%

5% 65% Verona Servizi 30%

20% Prisma Non-life insurance

Life insurance 70% Cattolica Investimenti SIM Property 30%

100% Operating services Verona Gestioni SGR

Financial Services 19,05% Vegagest SGR Banks

Dormant, not authorized to carry out activities as of March 31st 2007 Cassa di Risparmio 24,72% di San Miniato (*) Represented as an asset subject to disposal as of March 31st, 2007

As of March 31st, 2007

2,69% Cassa di Risparmio di 17,24% Banca Lombarda Fabriano e Cupramontana

6,62% 0,47% Banca Regionale Europea Banca Popolare S. Angelo

0,15% 6,38% Banca di Valle Camonica Emil Banca

Consolidated Accounting Schedules

CONSOLIDATED QUARTERLY REPORT AS AT MARCH 31ST 2007

Company: CATTOLICA ASSICURAZIONI GROUP (€ millions)

BALANCE SHEET - ASSETS 03.31.2007 12.31.2006

1 INTANGIBLE ASSETS 224 222 1.1 Goodwill 174 173 1.2 Other intangible assets 50 49 2 TANGIBLE ASSETS 45 46 2.1 Property 30 31 2.2 Other tangible assets 15 15 3 TECHNICAL PROVISIONS - REINSURANCE AMOUNT 496 500 4 INVESTMENTS 13,869 17,504 4.1 Property investments 11 4.2 Equity investments in subsidiary and associated companies and joint ventures 81 80 4.3 Investments held to maturity 137 137 4.4 Loans and receivables 358 359 4.5 Financial assets available for sale 6,037 6,566 4.6 Financial assets valued at fair value stated in the income statement 7,255 10,361 5 SUNDRY RECEIVABLES 645 734 5.1 Receivables deriving from direct insurance transactions 375 438 5.2 Receivables deriving from reinsurance transactions 68 65 5.3 Other receivables 202 231 6 OTHER ASSET ITEMS 3,875 455 6.1 Non-current assets or of a group subject to disposal held for sale 3,444 0 6.2 Deferred acquisition costs 44 44 6.3 Deferred tax assets 18 18 6.4 Current tax assets 227 243 6.5 Other assets 142 150 7 LIQUID FUNDS AND EQUIVALENTS 461 590 TOTAL ASSETS 19,615 20,051

CONSOLIDATED QUARTERLY REPORT AS AT MARCH 31ST 2007

Company: CATTOLICA ASSICURAZIONI GROUP (€ millions)

BALANCE SHEET - LIABILITIES AND NET SHAREHOLDERS' EQUITY 03.31.2007 12.31.2006

1 SHAREHOLDERS' EQUITY 1,406 1,374 1.1 pertaining to the Group 1,256 1,232 1.1.1 Share capital 142 142 1.1.2 Other equity instruments 00 1.1.3 Capital reserves 590 590 1.1.4 Net profit reserves and other equity reserves 405 263 1.1.5 (Own shares) 00 1.1.6 Reserve for net exchange differences 0 0 1.1.7 Gains or losses on financial assets available for sale 105 99 1.1.8 Other gains or losses recorded directly under equity -1 -1 1.1.9 Net profit (loss) for the period pertaining to the Group 15 139 1.2 pertaining to third parties 150 142 1.2.1 Capital and reserves pertaining to minority shareholders 146 121 1.2.2 Gains or losses recorded directly under equity -2 0 1.2.3 Profit (loss) for the period pertaining to minority shareholders 6 21 2 PROVISIONS AND ALLOWANCES 16 16 3 TECHNICAL PROVISIONS 12,784 16,013 4 FINANCIAL LIABILITIES 1,519 2,109 4.1 Financial liabilities valued at fair value stated in the income statement 1,373 1,953 4.2 Other financial liabilities 146 156 5 PAYABLES 305 269 5.1 Payables deriving from direct insurance transactions 63 75 5.2 Payables deriving from reinsurance transactions 52 52 5.3 Other payables 190 142 6 OTHER LIABILITY ITEMS 3,585 270 6.1 Liabilities of a group held for sale 3,320 0 6.2 Deferred tax liabilities 131 124 6.3 Current tax liabilities 55 66 6.4 Other liabilities 79 80 TOTAL LIABILITIES AND NET SHAREHOLDERS' EQUITY 19,615 20,051

CONSOLIDATED QUARTERLY REPORT AS AT MARCH 31ST 2007

Company: CATTOLICA ASSICURAZIONI GROUP (€ millions)

INCOME STATEMENT 03.31.2007 03.31.2006 1.1 Net premiums 999 1,001 1.1.1 Gross premiums written 1,046 1,051 1.1.2 Premiums transferred under reinsurance -47 -50 1.2 Commission income 35 Income and charges deriving from financial instruments valued at fair value stated in the income 1.3 23 8 statement Income deriving from equity investments in subsidiary and associated companies and joint 1.4 11 ventures 1.5 Income deriving from other financial instruments and property investments 59 50 1.5.1 Interest income 48 32 1.5.2 Other income 12 1.5.3 Realized gains 10 16 1.5.4 Valuation income 00 1.6 Other revenues 828 1 TOTAL REVENUES AND INCOME 1,093 1,093 2.1 Net charges relating to claims 916 885 2.1.1 Amounts paid and change in technical provisions 940 917 2.1.2 Reinsurance portion -24 -32 2.2 Commission expense 33 Charges deriving from equity investments in subsidiary and associated companies and joint 2.3 00 ventures 2.4 Charges deriving from other financial instruments and property investments 4 7 2.4.1 Interest expense 23 2.4.2 Other charges 00 2.4.3 Realized losses 23 2.4.4 Valuation loss 01 2.5 Operating expenses 107 107 2.5.1 Commission and other acquisition costs 75 77 2.5.2 Operating expenses relating to investments 1 3 2.5.3 Other administrative expenses 31 27 2.6 Other costs 29 44 2 TOTAL COSTS AND CHARGES 1,059 1,046 PROFIT (LOSS) FOR THE PERIOD BEFORE TAXATION 34 47 3 Taxation 18 17 NET PROFIT (LOSS) FOR THE PERIOD 16 30 4 PROFIT (LOSS) FROM BUSINESS ACTIVITIES SUSPENDED 58 CONSOLIDATED PROFIT (LOSS) 21 38 pertaining to the Group 15 31 pertaining to minority shareholders 6 7

19 CONSOLIDATED QUARTERLY REPORT AS AT MARCH 31ST 2007 Company: CATTOLICA ASSICURAZIONI GROUP STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

Dec. 31st, 2004 Transfers to Change in Amounts income (€ millions) 12.31.2005 closing balances booked statement Other transfers 12.31.2006 Share capital 142 0 0 0 142 Other equity instruments 000 00 Capital reserves 590 0 0 0 590 Net profit reserves and other equity reserves 217 0 120 -71 266 (Own shares) 000 00 Reserve for net exchange differences 0000 0 Gains or losses on financial assets available for sale 990-10-273698 Other gains or losses recorded directly under equity 30-400-1 Gains or losses on instruments hedging a financial flow 000000 Gains or losses on instruments hedging a net investment in 000000 foreign management arrangements Reserve deriving from changes in the net shareholders' equity of 30-400-1 the investee companies Reserve for the revaluation of intangible assets 000000 Reserve for the revaluation of tangible assets 000000 Income and charges relating to non-current assets or to a group 000000 subject to disposal held for sale Other provisions 000000 Profit (loss) for the year 115 0 24 0 139 Total pertaining to the Group 1.166 0 130 -27 -35 1.234 Capital and reserves pertaining to minority shareholders 100 0 24 0 -3 121 Gains or losses booked directly to equity -1 0 -20 -7 28 0 Profit (loss) for the year 24 0 -3 0 0 21 Total pertaining to minority shareholders 123 0 1 -7 25 142 TOTAL 1.289 0 131 -34 -10 1.376

Dec. 31st, 2004 Transfers to Change in Amounts income 12.31.2006 closing balances booked statement Other transfers 03.31.2007 Share capital 142 0 0 0 142 Other equity instruments 000 00 Capital reserves 590 0 0 0 590 Net profit reserves and other equity reserves 266 0 139 0 405 (Own shares) 000 00 Reserve for net exchange differences 0000 0 Gains or losses on financial assets available for sale 98 0 1 -2 8 105 Other gains or losses recorded directly under equity -10000-1 Gains or losses on instruments hedging a financial flow 000000 Gains or losses on instruments hedging a net investment in 000000 foreign management arrangements Reserve deriving from changes in the net shareholders' equity of -10000-1 the investee companies Reserve for the revaluation of intangible assets 000000 Reserve for the revaluation of tangible assets 000000 Income and charges relating to non-current assets or to a group 000000 subject to disposal held for sale Other provisions 000000 Profit (loss) for the year 139 0 -124 0 15 Total pertaining to the Group 1.234 0 16 -2 8 1.256 Capital and reserves pertaining to minority shareholders 121 0 21 0 4 146 Gains or losses booked directly to equity 00-604-2 Profit (loss) for the year 210-15006 Total pertaining to minority shareholders 1420008150 TOTAL 1.376 0 16 -2 16 1.406

CONSOLIDATED QUARTERLY REPORT AS AT MARCH 31ST 2007

Company: CATTOLICA ASSICURAZIONI GROUP (€ millions)

STATEMENT OF CASH FLOWS DRAWN UP ACCORDING TO INDIRECT METHOD

31.03.2007(*) 31.03.2006 Net profit (loss) for the period before taxation 39 57 Changes in non-monetary items -3.204 27 Change in non-life premiums provision -16 -23 Change in provision for outstanding claims and other non-life technical provisions 22 20 Change in actuarial provisions and other life technical provisions -3.231 108 Change in deferred acquisition costs 0 -1 Change in provisions and allowances 0 0 Non-monetary income and charges deriving from financial instruments, property investments and equity investments 9 -81 Other changes 12 4 Change in receivables and payables generated by operations 698 Change in receivables and payables deriving from direct insurance and reinsurance transactions 48 72 Change in other receivables and payables -42 26 Taxes paid -18 -18 Net liquidity generated/absorbed by monetary items pertaining to investments and financing activities -591 -196 Liabilities from financial policies issued by insurance companies -591 -196 Payables due to banking and interbank customers 0 0 Loans and receivables due from banking and interbank customers 0 0 Other financial instruments valued at fair value stated in the income statement 0 0 TOTAL NET LIQUIDITY DERIVING FROM OPERATIONS -3.768 -32

Net liquidity generated/absorbed by property investments 0 4 Net liquidity generated/absorbed by equity investments in subsidiary and associated companies and joint ventures -2 3 Net liquidity generated/absorbed by loans and receivables 1 11 Net liquidity generated/absorbed by investments held to maturity 1 1 Net liquidity generated/absorbed by financial assets held for sale 529 -63 Net liquidity generated/absorbed by tangible and intangible assets 4 2 Other flows of net liquidity generated/absorbed by investment activities 3.136 145 TOTAL NET LIQUIDITY DERIVING FROM INVESTMENT ACTIVITIES 3.668 103 Net liquidity generated/absorbed by capital instruments pertaining to the Group 42 56 Net liquidity generated/absorbed by own shares 0 0 Distribution of dividends pertaining to the Group -73 -71 Net liquidity generated/absorbed by capital and reserves pertaining to minority shareholders 3 7

Net liquidity generated/absorbed by subordinated liabilities and by participative financial instruments 0 0

Net liquidity generated/absorbed by sundry financial liabilities 0 0 TOTAL NET LIQUIDITY DERIVING FROM FINANCING ACTIVITIES -29 -8

Effect of the exchange differences on the liquid funds and equivalents 0 0

LIQUID FUNDS AND EQUIVALENTS AT THE BEGINNING OF THE QUARTER 590 622 INCREASE (DECREASE) IN LIQUID FUNDS AND EQUIVALENTS -129 63 LIQUID FUNDS AND EQUIVALENTS AT THE END OF THE QUARTER 461 685

(*) The cash flows as at 31/03/2007 take into account the reclassification of assets and liabilities held for sale

Statement of reconciliation between the shareholders’ equity and profit for the period of the Parent Company and the corresponding consolidated income

CONSOLIDATED FINANCIAL STATEMENTS AS AT MARCH 31ST 2007

Company: CATTOLICA ASSICURAZIONI GROUP

STATEMENT OF RECONCILIATION BETWEEN THE SHAREHOLDERS’ EQUITY AND PROFIT FOR THE YEAR OF THE PARENT COMPANY AND THE CORRESPONDING CONSOLIDATED SHAREHOLDERS' EQUITY AND PROFIT

Share capital Profit (loss) Shareholders' (€ millions) and reserves for the period equity

Balances of the Parent Company It Gaap 1,115 33 1,148 Adjustment Ias/Ifrs - Parent Company 84 2 86 Balances of the Parent Company IAS/IFRS 1,199 35 1,234 Netting of the book values of the equity investments included in the scope of consolidation: - difference between the book value and the pro-quota value of the shareholders' eq -103 0 -103 - pro-quota results of the investees 0 14 14 - capital gains from sale of equity investments recorded in the consolidated fin. stat 0 0 0 - goodwill 174 0 174 - value of portfolio 17 -1 16 Netting of infra-group transactions: - dividends from consolidated companies 35 -35 0 - write-back on equity investments write-downs 0 0 0 - reversal of infragroup real estate transactions 0 0 0 - reversal of effects of mergers among group companies -52 0 -52 - reversal of effects of infragroup branch transfers -40 1 -39 Fiscal effects of abovementioned consolidation adjustments 12 0 12 Effects connected to non-consolidated companies: Effects connected to the valuation of non-consolidated companies -1 1 0 Dividends from associated companies 0 0 0 Shareholders' equity and net income pertaining to the Group 1,241 15 1,256 Shareholders' equity and net income pertaining to third parties 144 6 150 CONSOLIDATED SHAREHOLDERS' EQUITY AND NET INCOME 1,385 21 1,406

General approach and scope of consolidation

BASIS OF PRESENTATION

The consolidated quarterly report closed at March 31st, the date coinciding with the corresponding reports of the Group Companies.

The quarterly reports of all companies included in the scope of consolidation have been approved by their respective Boards of Directors.

CONSOLIDATION METHODS

The consolidation methods adopted comply with those set forth in IAS 27 "Consolidated and Separate Financial Statements”.

ACCOUNTING POLICIES AND STANDARDS

The accounting policies and standards used for drafting the consolidated quarterly report are those used for the consolidated financial statements as of December 31st, 2006, to which reference is made, and are the same used for drafting the IAS/IFRS schedules of the Parent Company and the other Group companies.

No significant consolidation adjustments were necessary in order to adapt the consolidated companies’ accounting standards and policies to those of the Parent Company.

In order to guarantee timely quarterly reporting to the market, for some minor components, estimation procedures were also used.

SCOPE OF CONSOLIDATION

The scope of consolidation includes the quarterly report of the Parent Company and those of the subsidiary companies and the companies subject to joint control, in accordance with, respectively, IAS 27 and IAS 31, as amended by IFRS 5.

During the first quarter, the scope of consolidation changed as compared to December 31st, 2006, due to the merger of Cattolica Polo Finanziario into Cattolica Immobiliare.

As of March 31st, the scope of consolidation comprised twelve insurance companies, two property companies, two service companies, an asset management company and a stockbroking company.

In addition to the companies included within the scope of consolidation, the Group comprises a banking company, an asset management company, four service companies and one company whose purpose is to carry out insurance activities, which was dormant as of March 31st.

1) The following companies are included in the consolidated quarterly report on a line-by-line basis, in accordance with IAS 27:

• Società Cattolica di Assicurazione – Soc. Coop. with registered offices in Verona, share capital of € 142.174 million – the Parent Company;

• ABC Assicura s.p.a. with registered offices in Verona, share capital of € 8.925 million; the Parent Company’s direct investment amounts to 100%. The subsidiary is a non-life insurer;

• C.I.R.A. s.p.a. with registered offices in Verona, share capital of € 14.448 million. The Parent Company’s direct equity investment amounts to 100%. The subsidiary is a non-life insurer;

• Duomo Uni One Assicurazioni s.p.a. with registered offices in Milan, share capital of € 88.784 million. The Parent Company owns a 99.99% direct equity investment in the company. The subsidiary is a non-life insurer. In 2006, it incorporated Uni One Assicurazioni;

• TUA Assicurazioni s.p.a. with registered offices in Milan, share capital of € 13.16 million. The company is 97% owned by Duomo Uni One Assicurazioni. The subsidiary is a non-life insurer;

• BPV Vita s.p.a. with registered offices in Verona, share capital of € 87.6 million. The Parent Company’s direct equity investment comes to 50%. The subsidiary is a life insurer and is also active in non-life business solely in the accident, injury and health classes;

• Duomo Previdenza s.p.a. with registered offices in Milan, share capital of € 67.564 million. The company is directly and wholly owned by the Parent Company. The subsidiary is a life insurer;

• Lombarda Vita s.p.a. with registered offices in Brescia, share capital of € 135.3 million. The Parent Company owns a direct equity investment of 50.1%. The subsidiary is a life insurer;

• Persona Life s.p.a. with registered office in Milan, share capital of € 45 million. The company is 100%-owned by Duomo Uni One Assicurazioni. It is a life insurer;

• Risparmio & Previdenza s.p.a. with registered offices in Verona, share capital of € 73.75 million. The Parent Company’s direct equity investment comes to 95.17%. The subsidiary is a life-insurer and, since 1998, has also been active in non-life insurance in the accident, injury and health classes. In 2006, it incorporated Eurosun Assicurazioni Vita;

• San Miniato Previdenza s.p.a. with registered offices in San Miniato (PI), share capital of € 5 million. The Parent Company owns a direct equity investment of 66%. The company carries out life insurance activities;

• Cattolica Immobiliare s.p.a. with registered offices in Verona, share capital of € 35 million. The company is wholly-owned by the Parent Company. It is active in the property sector; With effective date January 1st, 2007, it incorporated Cattolica Polo Finanziario;

• Cattolica IT Services s.r.l. with registered offices in Verona, share capital of € 20.954 million. The Parent Company’s direct investment comes to 90.99%, that of Duomo Uni One Assicurazioni 8.8% and that of Duomo Previdenza 0.21%. This company supplies, to the subsidiary and investee companies of Cattolica, services and products for the planning, creation and management of data processing applications, operating processes and correlated organizational structures, as well as services relating to telecommunications systems;

• di.CA s.p.a. with registered offices in Verona, share capital of € 2.58 million. The Parent Company owns a direct equity investment of 100%. The company performs call-centre activities for claims’ settlement;

• Cattolica Investimenti SIM s.p.a. with registered offices in Verona, share capital of € 1 million. The Parent Company’s direct investment amounts to 70%. Duomo Uni One Assicurazioni owns the remaining 30%. The company places its banking and financial products via group agency networks;

• Verona Gestioni SGR s.p.a. with registered offices in Verona, share capital of € 6 million. The Parent Company holds a direct equity investment of 100%. The company provides investment services exclusively to institutional operators.

2) The following companies are consolidated using the proportional method, as per IAS 31:

• Axa Cattolica Previdenza in Azienda s.p.a. with registered offices in Milan, share capital of € 11.5 million. The company is jointly owned by the Parent Company and Axa Assicurazioni. The company has been authorized to carry out life insurance activities and non-life activities in relation to the accident, injury and health classes only;

• Polo Finanziario s.p.a. with registered offices in Verona, share capital of € 60 million. This company is jointly and equally owned by Cattolica Immobiliare, the CARIVERONA Foundation and Banco Popolare di Verona e Novara. Its corporate purpose now involves the building, development, management, improvement and maintenance of management premises for the creation of the “financial hub”.

3) The following companies are carried at equity in accordance with IAS 28:

Associated companies

• Cassa di Risparmio di San Miniato s.p.a. with registered offices in San Miniato (PI), share capital of € 126.195 million The Parent Company holds a direct equity investment of 24.72%. The company is a bank;

• Prisma s.r.l. with registered offices in Milan, share capital of € 120 thousand. The Parent Company holds a direct equity investment of 20%. The company is an insurance agency;

• Vegagest SGR, with registered offices in Ferrara, share capital of € 21 million. This is an

independent asset management company invested in by banking and insurance partners of considerable trustworthiness and primary standing. The Parent Company holds an interest of 19.05% in the company.

4) The following companies are carried in the consolidated financial statements at cost, since they are not significant (not material) and their exclusion from the scope of consolidation does not prejudice the reliability of the representation of the financial and equity standing, the economic result and the financial flows of the Group:

Subsidiary companies

• Verona Servizi s.r.l. with registered offices in Milan, share capital of € 100 thousand. The Parent Company holds a direct equity investment of 65%, Duomo Uni One Assicurazioni 30%, and Duomo Previdenza 5%. In April 2007, the Shareholders’ Meeting resolved to place the company into liquidation, and appointed a receiver;

• Lombarda Assicura s.p.a., with registered offices in Verona, share capital of € 5 million and wholly-owned by the Parent Company. The company is currently dormant, since it is not yet authorized to carry out insurance activities;

• TUA Retail s.r.l. with registered offices in Milan, share capital of € 50 thousand. It is wholly-owned by TUA Assicurazioni. It carries out the general agency activities of TUA Assicurazioni;

• Uni One Servizi s.r.l. with registered offices in Rome, share capital of € 15 thousand. This company is wholly-owned by Duomo Uni One Assicurazioni. It carries out service activities linked to the management of recurrent premiums collection.

A schedule of the Group companies with indication of the consolidation method adopted is shown below

As at 31st march 2007

Consolidated on a line-by-line basis

97% 100% C.I.R.A.C.I.R.A. 100% 99,99% ABCABC Assicura Assicura DuomoDuomo Uni Uni One One Assicurazioni Assicurazioni TUATUA Assicurazioni Assicurazioni

100% Duomo Previdenza Duomo Previdenza 50% (*) BPVBPV Vita Vita (*) 100%

CattolicaCattolica Immobiliare Immobiliare 100% 100% 95,17% di.CA Risparmio & Previdenza PersonaPersona Life Life di.CA Risparmio & Previdenza

50,1% 90,99% 8,8% 66% LombardaLombarda Vita Vita CattolicaCattolica IT IT Services Services SanSan Miniato Miniato Previdenza Previdenza

0,21% 100% 70% Cattolica Investimenti Cattolica Investimenti 30% VeronaVerona Gestioni Gestioni SGR SGR SIMSIM

Consolidated on a proportional basis

50% Axa Cattolica Previdenza 33,33% Axa Cattolica Previdenza PoloPolo Finanziario Finanziario InIn Azienda Azienda

Carried at equity

24,72%

19,05% 20% Vegagest SGR CassaCassa di di Risparmio Risparmio Vegagest SGR PrismaPrisma didi San San Miniato Miniato

Carried at cost

100% 100% 100% 65% VeronaVerona Servizi Servizi LombardaLombarda Assicurazioni Assicurazioni UniUni One One Servizi Servizi 30% TUA Retail TUA Retail 5%

(*) Rappresented as activity to be divested

Non-life insurance Life insurance Financial servicies Operating Services Property Banking Dormant, not authorized to carry out insurance activities as of 31st March 2007

Q1 data and indicators

Q1 Data and Indicators

Introduction As mentioned at the beginning of the Report, as a result of the ongoing operations as of March 31st, 2007, which will lead to transfer of control of the equity investment in BPV Vita from the Parent Company, pursuant to IFRS 5, paragraphs 33 and 35, the related assets and liabilities were classified under the items: “6.1 Non-current assets or of a group subject to disposal held for sale”, “6.1 Liabilities of a group subject to disposal held for sale” and the economic results were classified under “4 Profit (Loss) from business activities suspended”.

These reclassifications were also made on the economic figures of the corresponding period of the previous year, according to IFRS 5, paragraph 34.

These reclassifications must be taken into account in reading the tables below.

Table 1 – Key economic indicators

Change (€ millions) 03.31.2007 03.31.2006 Amount %

Gross premiums written 1,030 1,029 1 0.10 Direct business - non-life 389 394 -5 -1.27 Direct business - life 631 624 7 1.12 Indirect business 10 11 -1 -9.09 Investment policies Life 16 22 -6 -27.27 Total premiums 1,046 1,051 -5 -0.48

Net profit for the period 16 30 -14 -46.67 Profit from discontinued operations 5 8 -3 -37.50 Consolidated net income for the period 21 38 -17 -44.74 Net income of the Group 15 31 -16 -51.61

Table 2 – Key equity indicators

Change (€ millions) 03.31.2007 12.31.2006 Amount %

Investments 14,360 18,125 -3,765 -20.77 Assets of a group subject to disposal held for sale 3,444 0 3,444

Technical provisions 12,784 16,013 -3,229 -20.16 Financial liabilities relating to investment policies 1,387 1,969 -582 -29.56 Liabilities of a group subject to disposal held for sale 3,320 0 3,320 Consolidated net shareholders' equity 1,406 1,374 32 2.33

Table 3 – Employees and sales network

Change (number) 03.31.2007 12.31.2006 Amount %

Employees (1) 1,441 1,466 -25 -1.71

Direct network: Agencies 1,473 1,482 -9 -0.61 including non-exclusive agencies 127 127 0 0.00 Partner networks: Bank branches 3,038 3,049 -11 -0.36 Financial advisors 893 926 -33 -3.56 Brokers 278 269 9 3.35

(1) Full Time Equivalent

Table 4 – Reclassified consolidated balance sheet

Change Items from obligatory (€ millions) 03.31.2007 12.31.2006 Amount % statements (*)

Assets Property investments 1100.0002:24 Property 30 31 -1 -3.23 02:24 Equity investments in subsidiary and associated companies and joint ventures 81 80 1 1.25 04:48 Loans and receivables 358 359 -1 -0.28 09:36 Investments held to maturity 137 137 0 0.00 07:12 Financial assets available for sale 6,037 6,566 -529 -8.06 12:00 Financial assets valued at fair value stated in the income statement 7,255 10,361 -3,106 -29.98 14:24 Liquid funds and equivalents 461 590 -129 -21.86 00:00 Investments 14,360 18,125 -3,765 -20.77 Intangible assets 224 222 2 0.90 1 Technical provisions - reinsurance amount 496 500 -4 -0.80 3 Sundry receivables, other tangible assets and other asset items 4,535 1,204 3,331 276.66 (***) of which assets of a group subject to disposal held for sale 3,444 0 3,444 02:24 TOTAL ASSETS 19,615 20,051 -436 -2.17

Liabilities and net shareholders' equity Group capital and reserves 1,241 1,093 148 13.54 Group net income for the year 15 139 -124 -89.21 Shareholders' equity pertaining to the Group 1,256 1,232 24 1.95 02:24 Capital and reserves pertaining to minority shareholders 144 121 23 19.01 Net income for the period pertaining to minority shareholders 6 21 -15 -71.43 Shareholders' equity pertaining to minority shareholders 150 142 8 5.63 04:48 Total capital and reserves 1,406 1,374 32 2.33 00:00 Provision for unearned premiums 556 572 -16 -2.80 Provision for outstanding claims 2,609 2,589 20 0.77 Gross technical provisions - non-life 3,165 3,161 4 0.13 3 Actuarial provisions 9,478 12,632 -3,154 -24.97 Shadow accounting provision -16 -6 -10 -166.67 Gross technical provisions - life 9,462 12,626 -3,164 -25.06 3 Other gross non-life technical provisions 1 1 0 0.00 3 Other gross life technical provisions 156 225 -69 -30.67 3 Financial liabilities 1,519 2,109 -590 -27.98 4 of which deposits from policyholders 1,387 1,969 -582 -29.56 Allowances, payables and other liability items 3,906 555 3,351 603.78 (***) of which liabilities of a group subject to disposal held for sale 3,320 0 3,320 02:24 TOTAL LIABILITIES AND NET SHAREHOLDERS' EQUITY 19,615 20,051 -436 -2.17 (*) Indicates the items on the statements in the consolidated report as per ISVAP instruction No. 2404 of December 22nd, 2005 (**) Sundry receivables, other asset items, and other tangible assets (balance sheet items under assets = 5 + 6 + 2.2) (***) Allowances, payables and other liability items (balance sheet items under liabilities = 2 + 5 + 6)

Table 5 – Reclassified consolidated income statement

Change Items from obligatory (€ millions) 03.31.2007 03.31.2006 Amount % statements (*)

INSURANCE BUSINESS Net premiums 999 1,001 -2 -0.20 02:24 Net charges relating to claims 916 885 31 3.50 02:24 Operating expenses 106 104 2 1.92 of which commission and other acquisition costs 75 77 -2 -2.60 2.5.1 of which other administrative expenses 31 27 4 14.81 2.5.3 Other revenues net of other costs (other technical income and charges) -18 -16 -2 -12.50 1.6 - 2.6

FINANCIAL OPERATIONS Net income deriving from financial instruments valued at fair value stated in the income 23 8 15 187.50 07:12 statement Net income deriving from equity investments in subsidiary and associated companies and 11 00.001.4 - 2.3 joint ventures Net income deriving from other financial instruments and property investments 55 43 12 27.91 1.5 - 2.4 Commission income net of commission expense 0 2 -2 -100.00 1.2 - 2.2 Operating expenses relating to investments 1 3 -2 -66.67 2.5.2 Result of financial operations 78 51 27 52.94 RESULT OF INSURANCE BUSINESS AND FINANCIAL OPERATIONS 37 47 -10 -21.28 Other revenues net of other costs -3 0 -3 1.6 - 2.6 (excluding other technical income and charges included under financial operations) PRE-TAX PROFIT FOR THE PERIOD 34 47 -13 -27.66 Taxation 18 17 1 5.88 00:00 ?NET PROFIT FOR THE PERIOD 16 30 -14 -46.67 PROFIT FROM BUSINESS ACTIVITIES SUSPENDED 5 8 -3 -37.50 4 CONSOLIDATED PROFIT FOR THE PERIOD 21 38 -17 -44.74 Net income for the period pertaining to minority shareholders 6 7 -1 -14.29 NET INCOME FOR THE PERIOD PERTAINING TO THE GROUP 15 31 -16 -51.61 (*) Indicates the items on the statements in the consolidated report as per ISVAP instruction No. 2404 of December 22nd, 2005

Table 6 – Reclassified consolidated income statement by segment of activities

NON-LIFE LIFE OTHER TOTAL (€ millions) 03.31.2007 03.31.2006 03.31.2007 03.31.2006 03.31.2007 03.31.2006 03.31.2007 03.31.2006

INSURANCE BUSINESS Net premiums 372 382 627 619 0 0 999 1,001 Net charges relating to claims 291 289 625 596 0 0 916 885 Operating expenses 75 74 30 29 1 1 106 104 of which commission and other acquisition costs 52 53 23 24 0 0 75 77 of which other administrative expenses 23 21 7 5 1 1 31 27

Other revenues net of other costs (other technical income and charges) -16 -15 -2 -1 0 0 -18 -16

FINANCIAL OPERATIONS Net income deriving from financial instruments valued at fair value 51218-400238 stated in the income statement Net income deriving from equity investments in subsidiary and 00 11 00 11 associated companies and joint ventures Net income deriving from other financial instruments and property 13 11 42 26 0 6 55 43 investments Commission income net of commission expense 0 0 -1 1 1 1 0 2 Operating expenses relating to investments 0 1 1 1 0 1 1 3 Result of financial operations 18 22 59 23 1 6 78 51 RESULT OF INSURANCE BUSINESS AND FINANCIAL 8262916053747 OPERATIONS Other revenues net of other costs (excluding other technical income -20 -1000 -30 and charges included under financial operations) PRE-TAX PROFIT FOR THE PERIOD 6 26 28 16 0 5 34 47 Taxation 3715802 1817 NET PROFIT FOR THE PERIOD 31913803 1630 PROFIT FROM BUSINESS ACTIVITIES SUSPENDED 00 58 00 58 CONSOLIDATED PROFIT FOR THE PERIOD 3 19 18 16 0 3 21 38

Table 7 – Key indicators

03.31.2007 03.31.2006 12.31.2006

Non-life ratios Claims ratio (Net charges relating to claims / Net premiums) 78.2% 75.8% 85.6% G&A ratio (Other administrative expenses / Net premiums) 6.2% 5.5% 6.8% Commission ratio (Acquisition costs / Net premiums) 14.0% 13.8% 14.2% Total Expense ratio (Operating expenses / Net premiums) 20.2% 19.3% 21.0% Combined ratio (1 - (Technical balance / Net premiums)) 102.7% 98.8% 109.2%

Life ratios G&A ratio (Other administrative expenses / Premiums written) 1.1% 0.8% 1.0% Commission ratio (Acquisition costs / Premiums written) 3.6% 3.7% 4.2% Total Expense ratio (Operating expenses/ Premiums written) 4.6% 4.5% 5.2%

Total ratios G&A ratio (Other administrative expenses / Premiums written) 3.0% 2.6% 2.9%

Note: "net premiums" of the non-life branch mean the premiums accrued in the period

Management Report

The Cattolica The Group, which comprises twelve insurance companies, five service companies, an asset Group management company, a stockbroking company and two property companies, closed the first quarter 2007 with profit for the period of €16 million, and profit from business activities suspended of € 5 million, for total consolidated income of € 21 million, a decrease of 44.74% compared to the corresponding period of the previous period.

The consolidated result, in line with the medium-long term objectives of the Strategic Plan presented to the market on March 1st, 2007, is ascribable mainly to the following:

• the amount of direct business premiums written in the non-life classes, which decreased from € 394 million in the first quarter 2006 to € 389 million (- 1.27%). the positive effect of the continuing initiatives aimed at sustaining stable, long-lasting future profitability of the business, specifically the increased selectivity in choosing contracts, is clear from a consolidated combined ratio which increased from 109.2 as of December 31st, 2006 to 102.7; • life premiums written, which increased by 0.15%, from € 646 million to € 647 million, considering that, as BPV Vita is subject to disposal, the BPV Vita premiums written were reclassified in the summary item profits from assets subject to disposal, both in 2007 and in the corresponding item for the previous period; • the improvement in the results of financial operations, which closed the period with results of € 78 million, compared to € 51 million as of March 31st, 2006 (+52.94%); • the lack of positive extraordinary components compared to the € 10 million in extraordinary components in the first quarter 2006.

Direct business premium collection was as follows: agencies 39.96%, banks 53.96%, financial advisors 1.16%, brokers 1.06%, other channels 3.86%.

As of March 31st, there were a total of Sales Channels 1,473 agencies, of which 127 non- 3,500 Numbers exclusive, distributed as follows: 3,049 3,038 3,000 51.7% in Northern Italy, 25.6% in Central Italy and 22.7% in Southern 2,500 Italy and the islands. 2,000 1,482 1,473 1,500

926 The number of branches distributing 1,000 893 Pension Planning products decreased 500 from 3,049 at the end of last year to 269 278 3,038 (-0.36%). 0 31/12/2006 31/03/2007

Agencies Branches Financial advisors Broker

THE GROUP’S NEW STRATEGIC PLAN AND RE-ORGANIZATION OF THE BUSINESS MODEL

By means of the new 2007-2010 Strategic Plan, presented on March 1st, 2007 to the financial community in Milan, the Group intends to confirm itself as the key player in the insurance industry for personal and small business clients, developing endogenous growth courses according to principles of product specialization, valorisation of the system of relationships and focusing on the growth in value in terms of innovation, operating efficiency and governance of the risks and the capital.

The above will be supported by the systematic search for external growth opportunities in Italy and abroad. The business model on which the Group’s development is based envisages the concentration, rationalization and verticalization of the operating structures under the governance of the Parent Company, the specialization of the product centres by sales channel, the sharing of efficient operating services and the development of a management platform for the financial services.

The achievement of the new business model will take place by means of a series of extraordinary transactions involving corporate simplification and rationalization, including:

• the transfer of the corporate/broker business segment from C.I.R.A. to Cattolica Assicurazioni; • the transfer of the motor business segments from Cattolica Assicurazioni and Duomo Uni One Assicurazioni to C.I.R.A. which will subsequently be renamed Mapfre Cattolica Auto (MCA); • the merger of Duomo Uni One Assicurazioni into Cattolica Assicurazioni; • the merger of Duomo Previdenza into Cattolica Assicurazioni; • the merger of Persona Life into Cattolica Assicurazioni.

Favoured by the simplification of the group structure, described below, "Territory Insurance Company” business unit will be formed, integrated into Cattolica. This business unit aims to increase the rate of penetration of the no—motor non-life and life products within the agency network, while, with the special support of Mapfre, it will pursue selective growth and increases in profitability in the motor insurance business sector.

The new business unit will support one of the largest agent networks in the Italian insurance market, with points of sale located throughout the entire country, even though they will be concentrated in the southern regions of Italy. 58% of the agencies operate in medium or medium-to-small residential areas (between 10,000 and 100,000 inhabitants), where the system of relationships with individuals and small business customers is extremely strong and where the significant presence on local markets increases the opportunity of extending customer relations.

The network will be enhanced by means of the introduction, over the plan period, of 350 insurance consultants and 350 life assurance and pension consultants, and will be supported by a significant training programme and by renewed commercial monitoring and support instruments. The unification and integration of the agency networks will take place based on logics and models focused on achieving profitability and sustainability, as much for the insurance company

as for the agent, in parallel with the development of the products portfolio towards greater modular structure, innovation and expansion of the range, focused by customer segment, and the launch of new loyalty-retention initiative. The network will be run by a new standardized sales division of the Parent Company characterized by renewed and enhanced marketing, sales and management skills. The departments involved in sales coverage throughout the area will also be enhanced.

The development of motor insurance business will be verticalized and accelerated through the launch of the new Mapfre Cattolica Auto (MCA) joint venture which, thanks to the selective introduction on the Italian market of the industrial capabilities of Mapfre, leader in the motor insurance sector in Spain, will make it possible for the Group to mix the legislative developments with the logic and the approach of a new specialized competitor.

Claims management will be subject to a number of important initiatives aimed at increasing the focus on customer service and on the integrated governance of the post-sales process.

In order to facilitate relations with the customer and the integration of the industry, from undertaking until settlement, and therefore enable both the reduction of the costs for handling and settling claims as well as the synergies deriving from the unification of the Group’s three claims settlement networks, the Plan also considers the possible enhancement of di.CA, the call- centre which initiates and handles claims, as the Group’s claims handling company. By way of completing the range of products and services marketed to the customers of distribution channels, an organizational structure will be set up dedicated to Large Customers, which will provide qualified advisory services on the analysis of the risks and service to corporate customers, bodies and institutions, in the area of security and welfare.

Within the sphere of the banking channel, the strategic policies confirm the Group’s desire to enhance and expand partnerships with the regional banks, intensify the historic relationship with Banca Lombarda and develop the new strategic agreement with Banca Popolare di Vicenza. The life business will be consolidated, with a focus on supplementary pension funds, the selective introduction of innovative elements and targeted commercial actions. The non-life business will be developed through the launch of the range of products and services on all the major partner networks, the increase of penetration with the current partnerships, the continued focus on the coverage of the individual and the introduction of insurance solutions protecting against credit risk to be combined with banking disbursement products.

The agreed measures on the operating platforms will tend to maximize the efficiencies deriving from the simplification of corporate structure, which follows from those performed in 2006, from the focus on the organizational model and the consequent reorganisation of the Group’s human resources structure, from the rationalization of outsourced activities, the technological turnaround and from the introduction of new centralized costs management procedures. With particular reference to information technology, investments are envisaged for technological and application development projects totalling around € 60 million during the plan period as well as the search for a technological and applications partner who acts as an agent for the acceleration and qualification of the programme’s execution.

The organizational development will avail of a new Group training programme which will be set up during the initial years of the plan and which will be a driver of the change and flywheel for the divulgation of the business culture. The training programmes will be supplemented by a

programme for the management and development of the human resources, by a management incentive plan and by communication measures.

The investment policies will be differentiated between the life (liability-driven), non-life and unrestricted equity (total return) classes, so as to seize opportunities for returns, also over the medium-term, and activating a process of selection and governance of the managers. The above also availing itself of powerful instruments for managing and monitoring the investments and risks. The available capital will be targeted towards the systematic search for external growth opportunities in Italy and abroad, the maintenance of rating levels equal to or greater than the current levels and the progressive growth in total dividends and the dividend per share. Capital management actions may be taken over the medium-term in the event of the absence of opportunities for growth or alternate use of the capital.

WAYS IN WHICH THE GROUP IMAGE AND INFORMATION ARE DISCLOSED

The Investor During 2007, the Investor Relations Division strengthened its dialogue with the financial Relations community in Italy and abroad, via clear and transparent dealings, with a view to ensuring the Division market greater visibility of the results, objectives and the business strategies of the Group, providing various opportunities for meeting for both the institutional investors and the financial analysts: institutional presentations, conference calls, road shows and one-to-one meetings.

For the fifth consecutive year, Cattolica participated in the Italian Financial Conference 2007, in Milan on February 1st and 2nd. This conference is one of the most important Italian conferences in the banking and insurance sector, with approximately 400 institutional investors from all over the world in attendance.

On March 1st, the Group’s Strategic Plan 2007-2010 was presented to the financial community. 150 people attended this presentation, including journalists, financial analysts and institutional investors.

On March 6th and 7th, Cattolica participated in a roadshow in London organized by Mediobanca, and on March 27th, it participated in a roadshow in Madrid coordinated by Santander. In the next few months, the company will participate in other roadshows in New York, Madrid, Paris, Milan, London and Amsterdam.

These events represent an opportunity for the Group to strengthen and improve relations with institutional investors originating from the most important European financial districts.

A total of seven companies periodically publish analysis and comments on Cattolica stock.

An important communication instrument is the Investor Relations section of the corporate website (www.cattolica.it), continuously updated and enhanced with regards to the content matter including pages dedicated to corporate governance, coverage of the Cattolica stock by analysts and social responsibility. The information contained therein can also be found in an English version, with a view to guaranteeing the foreign investors equal access to the information relating to the Cattolica Group.

Rating and In February 2007, Standard & Poor’s cancelled the credit watch with negative implications, studies on the assigned to Cattolica in November 2006 on the eve of the breakdown of negotiations with Group Banco Popolare di Verona e Novara, assigning the Cattolica Group an “A-” rating with regards to the long-term credit risk and the financial solidity. Standard & Poors’ specified that the rating remains high both as a result of the solid capitalization and the strong financial flexibility which characterize the Group, completing the rating with a stable outlook for the near future.

In December 2006, the American firm A.M. Best revised the “A” rating assigned to Cattolica in December 2005, which corresponds with the qualification of “excellent” as far as financial soundness is concerned. In April 2007, this company held a meeting with the Group management.

A BRIEF OUTLINE OF THE BUSINESS PERFORMANCE FOR THE QUARTER

The Group by main financial statement aggregates

Gross consolidated premiums (which comply with the definition of “insurance policy” as per IFRS 4) as of March 31st amounted to € 1,030 million compared to € 1,029 million in the corresponding period of the previous year, an increase of 0.10%. Also taking into account investment policies, total premiums written came to € 1,046 million, a decrease of 0.48% compared to March 31st of the previous year.

In detail, gross direct non-life premiums amounted to € 389 million, registering a decrease of 1.27% with respect to the end of the first quarter 2006, and represent 38.12% of the total of direct business in insurance premiums (38.7% as of March 31st , 2005).

Gross life premiums amounted to € 631 million. It is noted that, as BPV Vita is considered an asset subject to disposal, the BPV Vita premiums written are reclassified in the summary item profits from assets subject to disposal, both in 2007 and in the corresponding item for the period. The breakdown of this item is reported at the end of the Notes to the Accounts, in the paragraph “Acquisitions and transfers”. Total life premiums amounted to € 647 million (- 0.15%). Once again, life premiums represented the majority share of total direct business (61.88% in the first quarter compared to 61.30% in the same period of 2006).

Direct life and non-life premiums, indirect premiums

800 (insurance premiums and investment policies) Euro/Milions 700 646 647 600 500 394 389 400

300

200

100 11 10 0 31/03/2006 31/03/2007 Direct non-life premiums Direct life premiums Total indirect premiums (life and non- life)

As regards the balance sheet data, the figures for the first quarter 2007 are net of the contribution of BPV Vita, which is recorded under specific items in the Balance Sheet.

Investments (which include real Investiments estate property investments, equity 25,000 Euro/Milions investments in subsidiary and 20,000 associated companies and joint 18,125 ventures, loans and receivables, 14,360 investments held to maturity, 15,000 financial assets available for sale, 10,000 financial assets valued at fair value, cash & cash equivalents and 5,000 property used for operating purposes) at the end of the quarter 0 31/12/06 31/03/07 amounted to € 14,360 million, compared to € 18,125 million as of December 31st, 2006 (-20.77%). Specifically, real estate property assets fell from € 32 million to € 31 million, financial assets valued at fair value recorded in the income statement decreased from € 10,361 million to € 7,255 million (-29.98%), while financial assets available for sale decreased from € 6,566 million to € 6,037 million (- 8.06%).

Non-life technical provisions (premiums and claims) amounted to € 3,165 million, compared with € 3,161 million as at December 31st ( +0.13%)

Life technical provisions (actuarial provisions inclusive of shadow accounting) totalled € 9,462 million, compared with € 12,626 million allocated at the end of the previous year. Also taking into account financial liabilities relating to investment policies, the technical provisions and deposits relating to life business amounted to € 10,849 million (€ 14,596 million as of December 31st, 2006).

Life technical provisions include the shadow accounting provisions, negative for € 16 million, to take into account the share of latent gains and losses on assets in segregated funds ascribable to policyholders.

Other administration expenses amounted to € 31 million, disclosing an increase of 14.81% when compared with the same period of 2006. In detail, the ratio of other administration expenses to total insurance premiums came to 3%, compared to 2.60% as of March 31st, 2005.

The results of financial operations amounted to € 78 million compared with € 51 million in the corresponding period of 2006, an increase of 52.94%, due to income deriving from financial instruments valued at fair value recorded in the income statement, which increased from € 2 million to € 23 million, and net income deriving from other financial instruments, which increased from € 43 million to € 55 million (27.91%).

The first quarter closed with Group profit of € 15 million compared with € 31 million as of March 31st, 2005 (-51.61%).

Consolidated shareholders’ equity at the end of the first quarter came to € 1,406 million against € 1,374 million at the end of the previous year (+ 2.33%), of which € 1,256 million pertained to the Group and € 150 million pertained to minority shareholders.

The Group by segments

The Group’s activities, as represented in Table 6 in the section “Q1 Data and Indicators”, are divided into three business segments: life, non-life and other.

The non-life and life businesses closed the first quarter respectively with consolidated net results of € 3 million (€ 19 million as of March 31st, 2006) and € 18 million (€ 16 million as of March 31st, 2006), recording € 372 million in net non-life premiums written and € 627 million in net life premiums written.

INSURANCE BUSINESS

Insurance premiums for the first three months of the year are reported in the table below, indicating the percentage on the total direct business and the percentage changes compared with the corresponding period of the previous year, together with the investment policies.

Table 8 - Total premiums

Classes Change % on total % on total (€ millions) 03.31.2007 03.31.2006 (*) Amount % 03.31.2006 (**)

Other damage to assets 19 1.86 19 1.87 - 0.00 19 Assistance 4 0.39 3 0.29 1 33.33 3 Suretiship 3 0.29 3 0.29 - 0.00 3 Aircraft hulls -n.s.-n.s.- - Ships (sea and inland water vessels) -n.s.-n.s.- - Land vehicle hulls 30 2.94 29 2.85 1 3.45 29 Credit -n.s.-n.s.- - Fire & natural forces 18 1.76 19 1.87 -1 -5.26 19 Accident and injury 28 2.75 26 2.55 2 7.69 26 Health 14 1.37 12 1.18 2 16.67 12 Goods in transit - 0.00 1 0.10 -1 -100.00 1 Sundry financial losses 4 0.39 3 0.29 1 33.33 3 TPL Land motor vehicles 230 22.55 241 23.67 -11 -4.56 241 TPL General 36 3.53 36 3.54 - 0.00 36 TPL Ships (sea and inland water vessels) -n.s.-n.s.- - Legal protection 3 0.29 2 0.20 1 50.00 2 Total non-life classes 389 38.12 394 38.70 -5 -1.27 394

Class I 210 20.59 269 26.43 -59 -21.93 289 Class III 338 33.15 203 19.94 135 66.50 426 Class IV -n.s.-n.s.- - Class V 83 8.14 152 14.93 -69 -45.39 156 Class VI -n.s.-n.s.- - Total life (1) 631 61.88 624 61.30 7 1.12 871

Total direct business 1,020 100.00 1,018 100.00 2 0.20 1,265

Indirect business 10 11 -1 -9.09 11

Total insurance premiums 1,030 1,029 1 0.10 1,276

Class III 9 16 -7 -43.75 31 Class VI 7 6 1 16.67 6 Total investment policies 16 22 -6 -27.27 37

TOTAL PREMIUMS WRITTEN 1,046 1,051 -5 -0.48 1,313 n.s. = not significant (1) Class I = Insurance on the duration of human life Class III = Insurance on the duration of human life linked to investment funds Class IV = Health insurance as per Art. 1, no. 1, letter d) of EEC Directive No. 79/267 dated March 5th, 1979 Class V = Capitalization transactions Class VI = Pension funds (*) Restated net of premiums of BPV Vita, which was reclassified as an assets undergoing disposal as per IFRS 5. (**) Data from the consolidated quarterly report at March 31st, 2006

The following includes the comments on the development of the insurance portfolio as regards the main classes the Group operates in, which showed significant variations in the quarter.

Non-life Premiums written in the non-life class in direct business as of March 31st amounted to € 389 business - million, a decrease of 1.27% compared with the first quarter of 2006. Premiums

Main non-life classes, direct premiums 300 Euro/Milions

241 250 230

200 150

100

50 36 36 29 30 26 28

0 TPL land motor vehicles Land vehicles hulls TPL General Accident

31.03.2006 31.03.2007

The trend in non-life premiums specifically highlights an increase of 7.69% in the accident and injury class and 16.67% in the health class and, in line with that recorded at the end of the previous year, a slowdown in the TPL motor class (-4.56%) and in the fire and natural forces class (-5.26%).

In detail, the balance of direct premiums written is ascribable to the Parent Company for € 239 million, to Duomo Uni One Assicurazioni for € 131 million, to TUA Assicurazioni for € 10 million, to C.I.R.A. for € 5 million, to ABC Assicura for € 1 million, as well as to the premiums of the accident & injury and health classes of the companies Risparmio & Previdenza and Axa Cattolica Previdenza amounting in total to € 3 million.

Non-life As regards the Group and new products in the non-life business, refer to that set forth in the business – new Consolidated Financial Statements 2006 of the Cattolica Group. products In April, within the programme to expand the services provided to policyholders, two new products were launched, one life and one non-life (“NOIcasa”). Specifically, the product “NOIcasa” is a multi-risk product (fire, theft, civil liability, healthcare and legal protection) developed to respond to the insurance needs linked to the home and the private life of the policyholder.

Moreover, restyling is being carried out on the products “SalutePiùCard”, which will be called “Più Salute”, and the product targeted to offices.

Life business - As of March 31st, direct life premiums written came to € 631 million, an increase of 1.12% Premiums compared to the premiums reported at the end of the first quarter 2006. Premiums classified as investment policies amounted to € 16 million. Total premiums written amounted to € 647 million (+0.15% compared with March 31st, 2006).

In Class I, the Group wrote Main life classes, direct premiums

premiums for € 210 million, a 400 Euro/Milions

decrease of 21.93% compared 347 350 with March 31st, 2005. 300 269 250 219 Class III, involving insurance 210 premiums for € 338 million, 200 152 disclosed an increase of 66.50% 150 when compared with the same 100 83 period of the previous year. Also 50 taking into account Class III investment policies, the change 0 Class I Class III Class V would have come to a decrease of 31/03/06 31/03/07 14.44%

Class V, which last year performed a significant role within the sphere of the sales policy, decreased by 45.39%, specifically in premiums written in the corporate segment.

Insurance premiums written and investment policies are ascribable to the Parent Company for € 195 million, to Risparmio & Previdenza for € 25 million, to Duomo Previdenza for € 11 million, to Lombarda Vita for € 403 million, to S. Miniato Previdenza for € 4 million, to Axa Cattolica Previdenza in Azienda for € 2 million and to Persona Life for € 7 million.

Life business – During the first three months of the year, 29 new series of index-linked policies were created new products within the Cattolica Group, of which: 22 by Lombarda Vita and 3 by the Parent Company, in addition to a new series for Risparmio & Previdenza and one for Duomo Previdenza.

A new series of unit-linked policies was issued by Lombarda Vita.

EQUITY AND FINANCIAL OPERATIONS

Stock market Bond markets

The European Central Bank continued raising interest rates, also in the first quarter of 2007. From the beginning of the year, it raised the official interest rate, bringing the Repo rate to 3.75%.

On the contrary, in the first quarter of 2007, the Federal Reserve left interests rates unchanged at 5.25%.

As regards the bond market, the yield on ten-year U.S. government bonds fell by 6.4 basis points in the last quarter, to 4.64% (4.70% at end 2006), but with a positive, while low, yield differential, with the performance of short-term bonds leading to the expectation that interest rates will hold steady over the next few months. The levelling off of the curve was also confirmed by the trend in interest rates in the Eurozone, with a spread for German 10-year bonds of 2 basis points on 2-year yields.

Stock markets

Despite the financial turbulence at the end of February - beginning of March, the U.S. stock market maintained a positive trend, with the S&P 500 showing positive performance and NASDAQ increasing by over 4%. The sectors favoured by investors were consumer and industrial products.

The European markets also performed positively, with an increase of over 6% in the Eurostoxx index, and positive performance for the German market, with the Dax increasing by almost 13%. The Italian market showed good performance as well over the year, with the S&P/Mib index growing by 5.60%. The positive trend in markets was mainly due to expected mergers and acquisitions, primarily in the energy and financial sectors.

As regards the stock markets in emerging countries, the Chinese stock market recorded positive performance. Despite the fact that it is considered by many analysts to be overvalued and at the limit of its potential, the Hang Seng Index recorded an increase of over 2%, totalling growth of 34% in slightly more than a year and a half.

The Japanese market had more ups and downs, but managed to positively close the first quarter 2007 with an increase of almost 1% in the Nikkei index, exceeding 17,000 points.

Foreign exchange markets

2007 began with the strengthening of the Euro against the Dollar and the Yen.

Share Financial operations followed the prudent approach of the Group, with the aim of optimising the investments risk/return profile, in line with the objective set by the commitments undertaken vis-à-vis policyholders.

The results disclosed by financial operations were affected by the growth in short-term interest rates in the Eurozone and the progressive levelling off of the related curve, on the basis of the expectations of the operators concerning the continuation of the restrictive monetary policy of the Central European Bank.

The increase in interest rates resulted in valuation losses in the portfolio component represented by fixed-rate bonds; however, these losses were not large, due to the short duration of the portfolios.

The portfolios most greatly influenced by these market trends were those representative of the life business provisions which, by their very nature, must be far more correlated in terms of duration and yield to the features of the products than the non-life classes.

During the quarter, the risk measurement activities were further structured, as regards external management, using benchmarks consistent with the management criteria, specifically in the non-life branch.

Activities for the management of assets against life business provisions were aided by the use of ALM (asset liability management) instruments which permit the gauging of the financial risk and a periodic monitoring of the performances offered by the share investment portfolio.

Due to the positive trend in markets, the share component of the portfolios remained at the same levels of the previous period.

As a rule, investments were concentrated within the Eurozone, with a contained currency diversification in securities denominated in US dollars.

There were no investments ascribable to developing countries.

As in previous periods, there were no losses to report due to the insolvency of issuers or exposure on low-rated securities.

The table below summarises the most significant asset items which show the change in investments in the first three months of the year.

Table 9 – Investments - breakdown

Change (€ millions) 03.31.2007 % on total 12.31.2006 % on total Amount %

Property investments 1 0.01 1 0.01 0 0.00 Property 30 0.21 31 0.17 -1 -3.23 Equity investments in subsidiary and associated companies and joint 81 0.56 80 0.44 1 1.25 ventures Loans and receivables 358 2.49 359 1.98 -1 -0.28 Investments held to maturity 137 0.96 137 0.76 0 0.00 Financial assets available for sale 6,037 42.04 6,566 36.23 -529 -8.06 Financial assets valued at fair value stated in the income statement 7,255 50.52 10,361 57.16 -3,106 -29.98 Liquid funds and equivalents 461 3.21 590 3.25 -129 -21.86 TOTAL 14,360 100.00 18,125 100.00 -3,765 -20.77

SIGNIFICANT TRANSACTIONS DURING THE FIRST QUARTER

The significant transactions carried out in the first quarter are illustrated below.

Group On January 25th, 2007 a new shareholders’ agreement was stipulated disciplining the investment companies relationships in BPV Vita of the Parent Company, Banco Popolare di Verona e Novara and Credito Bergamasco, involving the provision of an call option, for the bank and for Cattolica, concerning the respective equity investments held in the company. The call option was exercised by Banco Popolare di Verona e Novara on March 28th. The purchase price of the equity investment was € 64.18 million, which was determined net of the gross expected dividends (pro rata) of € 12.1 million, and defined based on a joint valuation carried out by two advisors, with reference to the embedded value of the company as of December 31st, 2006. The operation is subject to authorisation from ISVAP.

On January 26th, 2007 the Parent Company and Banca Popolare di Vicenza signed a Memorandum of Understanding, subsequently developed within an Outline Agreement entered into on March 15th 2007, the aim of which is to create a strategic partnership in the personal insurance, banking and financial services segment, according to an innovative model of co- operation and development which, in observance of the reciprocal autonomies, permits the two Groups to focus on their strategic business objectives, developing synergies in certain common spheres. The agreements reached envisage an industrial partnership between the two Groups, with an initial duration of five year, automatically renewable for another five. The following is envisaged within this sphere:

• that the Parent Company takes a 50% interest in the life assurance companies of the Banca Popolare di Vicenza Group, Berica Vita s.p.a., an Italian company, and Vicenza Life Ltd., an Irish company, for a price of € 20.9 million and € 23.2 million, respectively. On the basis of the exclusive sales agreement with the Banca Popolare di Vicenza Group with a duration equating to the partnership’s length, the two insurance companies will develop life bankassurance activities via the Banca Popolare di Vicenza Group’s distribution channels. Vicenza Life, opportunely renamed if necessary, will place its own products, for the types not available with the other Cattolica insurance companies, partly via the Cattolica Group agencies and possibly via the networks of the other partner banks of the Cattolica Group interested in the range of the Irish company. With reference to supplementary welfare and pension products, the agreement anticipates the rapid development of important business synergies. Specifically, the open-end pension fund “Cattolica Gestione Previdenza” will be placed on the banking Group’s networks. In relation to the “Individual Welfare Plan” product, Cattolica will make its own instruments available to the Banca Popolare di Vicenza Group with all the operating and commercial support necessary, what is more already defined and created for the institutes forming part of the Group’s bankassurance network; • in relation to the non-life business and for the purpose of providing an insurance company for common benefit serving the networks of the Banca Popolare di Vicenza Group, Cattolica Assicurazioni will transfer 50% of ABC Assicura to the bank. On the basis of the exclusive sales agreement with the Banca Popolare di Vicenza Group with a duration equating to the partnership’s length, ABC Assicura will develop non-life bankassurance activities via the Banca Popolare di Vicenza Group’s distribution channels. The value of this transaction comes to € 5.2 million; • with regards to asset management, it is envisaged that the Parent Company will acquire

50% of the share capital of BPVI Fondi SGR, the Banca Popolare di Vicenza Group asset management company, together with the transfer to the banking partner of 50% of Verona Gestioni SGR’s share capital, for a value of € 29 million and € 20.5 million, respectively. The possible merger between the two asset management companies (SGR) will be assessed subsequently; • in conclusion, for the purpose of being able to evaluate the potential of the Cattolica Group sales networks, where necessary, the Parent Company and Banca Popolare di Vicenza will form a Newco, jointly (50%) owned, for the placement of banking products (specifically disbursement-related) on the entire Cattolica Group agency network, products developed by the structures of the Banca Popolare di Vicenza Group under the Cattolica brand.

Completing and enhancing the industrial partnership, the Outline Agreement envisages:

• the commitment to propose a share capital increase to the shareholders’ meeting (held on April 28th, 2007, involving the exclusion of the option rights, reserved for BPVI and its subsidiaries, to be carried out in two tranches. In relation to the first tranche, concerning an 8% holding in the share capital of Cattolica post-increase, given the unity of the transactions envisaged by the partnership with Banca Popolare di Vicenza and the intention of the Parties to consequently execute it in a single solution, a final deadline for signing is envisaged consistent with all the deadlines of the necessary authorization procedures. What is more, the agreements between the Parties envisage the possibility of execution within working ten days of attainment of the last authorization from the supervisory authorities. The subscription price of the first tranche will equate to € 44.87 per share for a total value of approximately € 185 million. The second tranche, for an additional 4% of the share capital, may be subscribed as from July 1st, 2010. The subscription price of the second tranche will equate to the weighted average of the “official prices” (as revealed by Borsa Italiana) recorded by Cattolica shares in the six months prior to the start date of the subscription period for that tranche; • the proposal to the Shareholders’ Meeting of two candidates for the Board of Directors and one for the Board of Statutory Auditors to be chosen by Banca Popolare di Vicenza, as well as the approval of amendments to Cattolica’s Articles of Association aimed at ensuring, pro futuro, the presentation to the Shareholders’ Meeting of two candidates chosen by Banca Popolare di Vicenza, according to the above, as well as several other types of participation in the governance of Cattolica, as further detailed in the agreements published pursuant to art. 122 of Legislative Decree 58/1998 and as implemented in the proposed amendments to the Articles of Association submitted to the Shareholders’ Meeting.

On April 28th, 2007, the Cattolica Ordinary and Extraordinary Shareholders’ Meeting resolved, among other things, to appoint Mr. Giovanni Zoni and Mr. Luciano Colombini as Directors of the Parent Company, to appoint Mr. Luigi de Anna as a statutory auditor, to approve the increase in share capital described above, reserved for Banca Popolare di Vicenza, as well as the amendments to the Articles of Association agreed with Banca Popolare di Vicenza. These resolutions, together with the successful appointment, by the Board of Directors, of Mr. Zonin as Deputy Chairman of Cattolica, resulted in the invalidity of the termination clause in art. 7.2 of the Outline Agreement subscribed with Banca Popolare di Vicenza on March 15th.

With a value date as of February 8th, the Parent Company transferred the remaining 323,859

shares in Credito Bergamasco held at a unit price of €30.74 each to Banco Popolare di Verona e Novara. As a result of this transaction, the shareholding held in said bank has been disposed of entirely.

Following the request presented by Cattolica Investimenti SIM, on February 9th, 2007 CONSOB issued the provision authorizing the exercise of trading activities.

On February 13th, Cattolica’s Board of Directors resolved to go ahead with the acquisition of 100% of the share capital of Persona Life belonging to Duomo Uni One Assicurazioni, at a price of € 45 million, established on the basis of a sworn expert opinion. On March 21st, the operation was authorised by the Supervisory Authorities. The share transfer was completed on May 10th.

As regards the guarantees agreed upon the acquisition of Uni One Assicurazioni, on February 16th, Generali Assicurazioni paid Cattolica € 1.7 million as a reduction of the book value of the equity investment.

On February 23rd, the Board of Directors meeting of Lombarda Vita, on delegation granted by the Shareholders’ Meeting, resolved a share capital increase of € 10 million, subscribed and freed up by the shareholders on that date. Thus, Cattolica paid in its share of € 5.01 million.

On March 5th, as per the resolution of the Boards of Directors of the companies involved, the project for the merger through incorporation of Cattolica Polo Finanziario into Cattolica Immobiliare was approved; the former holds 100% of the shares of the latter. On March 22nd, the merger deed was stipulated, with effective date of March 26th, 2007.

On March 5th, Cattolica Immobiliare’s Board of Directors called an extraordinary Shareholders’ Meeting to resolve – in accordance with and for the purposes of Article 2445 of the Italian Civil Code - the voluntary reduction of the share capital, to be implemented by means of reimbursing sums to the sole shareholder. On March 22nd, the extraordinary Shareholders’ Meeting of Cattolica Immobiliare resolved the reduction of its share capital from € 115,752,700.00 to € 35,000,000, a reduction of € 80,752,700, through reimbursement to the single shareholder, Cattolica.

On March 5th, for the purpose of providing the instruments necessary for supporting the development of the company’s activities aimed at the achievement of its corporate mission, TUA Assicurazioni’s Board of Directors requested the shareholders carry out the payment, into the share capital account, of a total of € 8 million, a fulfilment which the shareholders carried out.

On March 14th, as a result of the provisions of the Memorandum of Understanding entered into on December 17th, Cattolica Assicurazioni and Mapfre S.A. subscribed an Outline Agreement which governs the terms and conditions of the operations for the execution of the insurance joint venture in the motor sector, and regulates the future relations as joint investors in the share capital of the joint venture.

Cattolica paid the amount of € 280,000 as principal to Cattolica Investimenti SIM, with value date March 20th. With the same value date, Duomo Uni One paid a total of € 120,000.

On March 21st, the entire equity investment held by Mapfre Empresas Compañia de Seguros y Reaseguros S.A. in the subsidiary “Compagnia Italiana Rischi Aziende S.p.A.” was transferred to Cattolica, for a total of 103,200 shares with a par value of € 5.00 each, corresponding to a

quota of 3.57% of the company’s share capital. The transfer was made at a unit price of € 12.9199, thus, for a total of € 1,333,333.68. Following this operation, “Compagnia Italiana Rischi Aziende S.p.A.” is now wholly-owned by Cattolica Assicurazioni.

On March 21st, Cattolica’s Board of Directors approved the merger by incorporation of Duomo Previdenza and Persona Life. As this merger involves companies which, at the merger date, are wholly-owned by the incorporating company, the transaction will not generate an exchange of shares, and will not lead to an increase in share capital for the incorporating company.

Other events With reference to the ISVAP inspection of the Parent Company started in February 2006, during the focused on claims management procedures, for several non-life classes and in particular the period report on the inspections and controls carried out on the general TPL business, notification of contention was received from ISVAP which envisaged a minor fine. On March 26th, the report on the findings of the inspection and controls on the TPL business was signed and collected.

On March 20th, the report on findings was signed on conclusion of the tax assessment carried out on BPV Vita.

EVENTS FOLLOWING THE END OF THE QUARTER

On April 1st, 2007, the merger between Banca Lombarda e Piemontese and Bunche Popolare Unite S.C.p.A. took effect. This merger led to the creation of a new legal entity under the name Unione di Bunche Italiane Società Cooperativa per azioni (in short, also UBI Banca), with registered office in Bergamo. As a result of the share swap following the aforesaid merger, Cattolica now holds a share of 1.24% of the share capital of UBI Banca.

The Extraordinary Shareholders’ Meeting of Verona Servizi, held on April 3rd, 2007, in acknowledging that the strategic developments of the Group resulted in the invalidity of the strategic plan previously developed for the company, resolved pursuant to art. 2484, paragraph 1, point 6) of the Italian Civil Code, and pursuant to art. 50 of the Articles of Association, on the early winding up of the company and the appointment of the receivers. On May 3rd, 2007, the voluntary receivership was recorded in the Milan Registry of Companies.

On April 27th, 2007, the Ordinary and Extraordinary Shareholders’ Meeting of Cassa di Risparmio di San Miniato was held, in order to approve an increase in share capital from € 126,194,648.00, up to a maximum of € 140,213,248.00 through the issue of a maximum of 1,752,700 ordinary shares with a par value of € 8.00 each. The issue price of the new shares will be determined by the Board of Directors of Cassa di Risparmio di San Miniato, based on the valuation carried out by a financial advisor, and will fall between € 22.20 and € 26.10.

On May 4th, 2007, the Board of Directors of Duomo Previdenza approved the merger by incorporation of the company into Cattolica. The merger is subject to the required authorisation from the Supervisory Authorities.

On May 10th, 2007, the Board of Directors of Cattolica resolved on the merger by incorporation of the companies Duomo Previdenza and Persona Life.

OTHER INFORMATION

st Human As of March 31 , the Group Headcounts resources employee headcount included 2,000 Number

1,505 staff, compared with 1,525 as 1,800 st 1,525 1,505 of December 31 . 1,600 38 37 The staff is composed of 37 1,400 216 214 executives (-1 compared with 1,200 December 31st), 214 officials (-2) 1,000 800 1,254 and 1,254 office workers (+ 31). 600 1,271

400

The number of full time equivalent 200 employees totalled 1,441 compared 0 with 1,466 as of December 31st, 31/12/06 31/03/2007 2006. White-collars Supervisor Manager

Performance During the period January Performance di Cattolica rispetto ai PERFORMANCE 2007 of Cattolica 1st–March 31st, Cattolica principali indici italiani stock shares disclosed a minimum Cattolica -0,04% price of € 43.77 and a maximum price of € 48.07.

The capitalization of the MIBTEL +0,91%

stock on the market as of S&P/MIB -0,59% March 31st came to € 2,150 MIB INS. -3,39% million. 01/01/2006 31/03/2007

Cattolica S&P/MIB MIB INS. MIBTEL Change % 01/01/2007-31/03/2007

Source: Bloomberg Cattolica stock performance in the first few months of 2007 remained stable compared to a - 3.4% fall in the Italian insurance index and + 0.9% rise in the Mibtel index.

Furthermore, in the first quarter 2007, the average of the volumes traded rose by 66.4% when compared with the same period in 2006.

OUTLOOK FOR BUSINESS ACTIVITIES

During the second quarter, after completing the reorganisation of the guidelines for strategic developments, the Group will implement extraordinary operations for the corporate simplification and rationalisation in order to create the new business model set forth in the Strategic Plan. The business on which the Group’s evolution is based envisages the concentration, rationalization and verticalization of the operating structures under the governance of the Parent Company, and the specialization of the product centres by sales channel.

Specifically the incubation activities regarding the partnership with Banca Popolare di Vicenza will be completed, in addition to the purchase of the non-motor business segment of the subsidiary C.I.R.A., specialized in the corporate non-life segment, which operates through the broker channel. This operation will be the first step in the creation of Mapfre Cattolica Auto, the joint venture with Mapfre, specialized in the motor business, which will use C.I.R.A. as a special purpose vehicle.

In the non-life classes, continuation of the current market trends is foreseeable, trends which, on a consistent basis with the evolution of the security requirements of households and businesses, on the one hand registers positive growth in the elementary classes and, on the other hand, the persistence of competitive pressure on the motor classes.

As regards the life classes, as a result of the new bancassurance agreements, the strategic plans and objectives developed for 2007 are likely to be achieved.

In light of the performance in the first quarter, within a scenario which promises a contained rise in market rates for 2007, the financial operations of the Group will proceed according to a management approach supplemented by the combined effect of this rise in returns and in securities’ prices so as to achieve financial results in line with those envisaged by the Business Plan.

Notes to the accounts - Information on the Consolidated Balance Sheet and Income Statement

Introduction

Introduction As previously mentioned, the Consolidated Quarterly Report of the Cattolica Group for the first quarter 2007 has been drafted based on article 82 of Consob resolution no. 11971 dated May 14th, 1999, and subsequent amendments, as well as Consob Recommendations.

For the breakdown of the balance sheet and income statement items relating to assets subject to disposal, refer to the section “Acquisitions and transfers” of the Notes to the Accounts.

***

Contents

Contents of the disclosure provided in the notes to the accounts – Balance sheet

Stato patrimoniale Attività 1 Attività immateriali pag. 69 2 Attività materiali pag. 70 3 Riserve tecniche a carico dei riassicuratori pag. 70 4 Investimenti pag. 70 5 Crediti diversi pag. 73 6 Altri elementi dell'attivo pag. 74 7 Disponibilità liquide e mezzi equivalenti pag. 75

Passività 1 Patrimonio netto pag. 76 2 Accantonamenti pag. 77 3 Riserve tecniche pag. 77 4 Passività finanziarie pag. 79 5 Debiti pag. 80 6 Altri elementi del passivo pag. 81

Contents of the disclosure provided in the notes to the accounts – Income statement

Conto economico

1.1 Premi netti pag. 83; 84 1.2 Commissioni attive pag. 85 1.3 Proventi e oneri derivanti da strumenti finanziari a fair value rilevato a conto economico pag. 85 1.4 Proventi derivanti da partecipazioni in controllate, collegate e joint venture pag. 85 1.5 Proventi derivanti da altri strumenti finanziari e investimenti immobiliari pag. 85 1.6 Altri ricavi pag. 85

2.1 Oneri netti relativi ai sinistri pag. 83; 84 2.2 Commissioni passive pag. 85 2.3 Oneri derivanti da partecipazioni in controllate, collegate e joint venture pag. 85 2.4 Oneri derivanti da altri strumenti finanziari e investimenti immobiliari pag. 85 2.5 Spese di gestione pag. 83; 84 2.6 Altri costi pag. 85 85 3Imposte pag. 85

Balance Sheet

INTANGIBLE ASSETS

“Intangible assets” disclose the following changes:

Table 10 – Intangible assets

Change (€ millions) 03.31.2007 12.31.2006 Amount %

Goodwill 174 173 1 0.58 Other intangible assets 50 49 1 2.04 Total 224 222 2 0.90

Goodwill The item “goodwill”, which amounts to € 174 million (+0.58%), includes the amount ascribable to the positive difference emerging at the time of elimination of the equity investments in companies included within the scope of consolidation, after charging the portion of fair value pertaining to the assets, the liabilities and the potential liabilities of the companies acquired, in accordance with section 36 of IFRS 3.

This difference is recorded at cost net of any impairment according to paragraph 54 of IFRS 3.

During the period, this item recorded an increase of € 1 million, mainly due to the acquisition of a further 3.57% of the equity investment in the subsidiary C.I.R.A. This item was also affected by the adjustment, of € 1.7 million, in the consolidation difference deriving from the contractual agreement for the purchase of Uni One Assicurazioni, which was not included in the cost of the merger at the moment of initial recording.

During the period, no impairment tests were carried out as there were no significant changes as compared to the conditions as at the close of 2006.

Other intangible assets As per IAS 38, the item “other intangible assets” includes assets which can be autonomously identified and which will generate future economic benefits in terms of cost savings or future income.

The item amounts to € 50 million, compared with € 49 million reported at the end of the previous year.

As per paragraph 31 of IFRS 4, and explained in further detail in the consolidated financial statements 2006, which should be referred to for further detail, this item includes the value of insurance portfolio which is subject to the allocation of part of the difference between the cost of the business combination and the fair value of the net assets acquired, net of the related intangible assets, taking into account the company restructuring which took effect as of December 31st, 2006. Specifically, those portfolio values regard the acquisitions in 2005 of Uni One Assicurazioni (attributed to Duomo Assicurazioni, as a result of the merger in 2006), Persona Life and a further 50% of Eurosav, (attributed to Risparmio & Previdenza, as a result of the merger in 2006), and a further 14.28% of C.I.R.A.

During the period, no impairment tests were carried out as there were no significant changes as compared to the conditions as at the close of 2006.

TANGIBLE ASSETS

Tangible assets, governed by IAS 16, disclosed the following changes during the period:

Table 11 – Tangible assets Change (€ millions) 03.31.2007 12.31.2006 Amount %

Property 30 31 -1 -3.23 Other tangible assets 15 15 0 0.00 Total 45 46 -1 -2.17

Property The item includes property used for the performance of the Group’s activities; in particular it includes the property owned by the Parent Company and Polo Finanziario for a sum total of € 30 million (-3.23%).

Other tangible assets This item included assets disciplined by IAS 16 which are not included in the category of property. The item amounts to €15 million, substantially unchanged as compared to the end of the year.

TECHNICAL PROVISIONS - REINSURANCE AMOUNT

At the end of the period, this item amounted to € 496 million (-0.8%).

INVESTMENTS

“Investment” comprises the following items:

Table 12 - Investments

Change (€ millions) 03.31.2007 12.31.2006 Amount %

Property investments 1 1 0 0.00 Equity investments in subsidiary and associated companies and joi 81 80 1 1.25 Investments held to maturity 137 137 0 0.00 Loans and receivables 358 359 -1 -0.28 Financial assets available for sale 6,037 6,566 -529 -8.06 Financial assets valued at fair value stated in the income statement 7,255 10,361 -3,106 -29.98 Total 13,869 17,504 -3,635 -20.77

Property investments “Property investments” are represented by the Group’s property for office or residential use, not occupied by Group companies.

The item includes property owned by the Parent Company, for a total of € 1 million.

The fair value of the properties held for investment purposes has been estimated by an external, independent expert. It is determined by means of generally accepted valuation principles and methods, resorting specifically to the following accounting policies:

• comparative or market method, based on the comparison between the assets in question and other similar ones, recently subject to purchase/sale or currently offered on the same market or competitive business centres; • income method, based on the current value of the potential future earnings of a property, obtained by capitalizing the income at a market rate.

During the period, no impairment tests were carried out as there were no significant changes as compared to the conditions as at the close of 2006.

The fair value of property investments of the Group totals € 4 million.

Equity investments in subsidiary and associated companies and joint ventures The item includes equity investments in subsidiary companies excluded from the scope of consolidation and in associated companies over which the Group exercises a significant influence, which are carried at equity.

During the period, the item underwent the following changes:

Table 13 - Equity investments in subsidiary and associated companies and joint ventures

Change (€ millions) 03.31.2007 12.31.2006 Amount %

Subsidiary companies 550- Associated companies 76 75 1 1.33 Joint ventures 000- Total 81 80 1 1.25

Equity investments in subsidiary companies The item mainly comprises the costs of the equity investments in companies which are not significant (not material) for consolidation purposes: Verona Servizi, Lombarda Assicura, TUA Retail and Uni One Servizi. Equity investments in subsidiary companies amount to € 5 million and were unchanged with respect to the previous year.

During the period, no impairment tests were carried out as there were no significant changes as compared to the conditions as at the close of the year.

Equity investments in associated companies The item, amounting to € 76 million, includes the equity investments carried at equity, over which the Group exercises a significant influence. The increase of € 1 million (+1.33%) is mainly attributable to the impact on the results and the shareholders’ equities of the companies deriving from the application of the IAS/IFRS standards.

During the period, no impairment tests were carried out as there were no significant changes as compared to the conditions as at the close of the year.

Financial investments As can be seen in the following table, “financial investments” include the financial instruments disciplined by IAS 39: investments held to maturity, loans and receivables, financial assets available for sale and financial assets valued at fair value recorded in the income statement.

Table 14 - Financial investments

Change (€ millions) 03.31.2007 12.31.2006 Amount %

Investments held to maturity 137 137 0 - Loans and receivables 358 359 -1 -0.28 Financial assets available for sale 6,037 6,566 -529 -8.06 Financial assets valued at fair value stated in the income statement 7,255 10,361 -3,106 -29.98 Total 13,787 17,423 -3,636 -20.87

Investments held to maturity All the financial assets, excluding derivatives, with a pre-established maturity and payments which are fixed or can be determined, which the Group intends to or has the ability to hold until maturity, are classified in this category.

As of the end of the quarter, the investments held to maturity amounted to € 137 million and represented 0.99% of total financial instruments disciplined by IAS 39 included under investments.

Loans and receivables The assets with a pre-established maturity and payments which are fixed or can be determined, not listed on active markets, which are not recorded in any of the other categories, are classified in this category. Specifically, the category includes all the loans and financing, the deposits from re-insurers with transferring companies and bonds not listed on active markets. As of the end of the period, loans and receivables amounted to € 358 million, (down by € 1 million as compared to the close of the previous year), and represented 2.6% of total financial instruments disciplined by IAS 39 included under investments.

Financial assets available for sale This category includes all the financial assets, valued at fair value, other than derivative instruments, both debt instruments and equities, which are not classified in the other categories and are disciplined by IAS 39. Specifically, this category comprises the equity investments deemed to be strategic in companies which are not subsidiary or associated companies, whose fair value derives from prices taken from active markets, or, in the case of securities not listed on active markets, commonly applied valuation methods. Specifically, the valuation methods adopted were chosen taking into account the pertinent sector. This category includes the equity investment in Banca Regionale Europea in relation to which the estimate of the fair value - since it is linked exclusively to the payout of the equity investment - presents variability which is too high and which, therefore, in accordance with IAS 39, must be carried at cost. As of March 31st, the valuation at cost of this equity investment came to € 170 million, unchanged with respect to the end of the previous period.

As of the end of the quarter, financial assets available for sale amounted to € 6,037 million (-8.06%) and represented 43.79% of total financial instruments disciplined by IAS 39 included under investments. The decrease

recorded during the period is mainly ascribable to the fact that the amount regarding BPV Vita, as it is considered an asset subject to disposal, was reclassified in the summary item "Non-current assets or a group subject to disposal held for sale".

As of March 31st, the balance of capital gains and losses from valuation of financial assets available for sale recorded under shareholders’ equity, net of the related deferred taxes and the shadow accounting reserve recorded under shareholders’ equity, amounted to € 105 million (+6 million compared to the close of the previous year).

During the period, the impairment test was not carried out on the total of financial instruments included in the categories “loans and receivables”, “investments held to maturity” and “financial assets available for sale”, as there were no significant changes in the conditions compared to those at the close of the year.

Financial assets valued at fair value stated in the income statement This category comprises the classification of financial assets, including derivatives, held for trading and those designated by the Group as valued at fair value, with a balancing entry in the income statement.

Specifically, besides assets held for trading purposes, the item also includes the financial assets valued at fair value recorded in the income statement relating to:

• insurance or investment policies issued by the Group whose investment risk is borne by the policyholders; • the management of pension funds.

As of the end of the quarter, financial assets valued at fair value recorded in the income statement amounted to € 7,255 million (-29.98%) and represented 52.62% of total financial instruments disciplined by IAS 39 included under investments. Also for this item, the decrease recorded during the period is mainly ascribable to the fact that the amount regarding BPV Vita, as it is considered an asset subject to disposal, was reclassified in the summary item "Non-current assets or a group subject to disposal held for sale".

SUNDRY RECEIVABLES

“Sundry receivables” comprise the following items:

Table 15 - Sundry receivables Change (€ millions) 03.31.2007 12.31.2006 Amount %

Receivables deriving from direct insurance transactions 375 438 -63 -14.38 Policyholders 166 212 -46 -21.70 Insurance brokers 147 172 -25 -14.53 Insurance companies - current accounts 47 41 6 14.63 Policyholders and third parties for claims to be settled 15 13 2 15.38 Receivables deriving from reinsurance transactions 68 65 3 4.62 Insurance and reinsurance companies 62 58 4 6.90 Reinsurance brokers 6 7 -1 -14.29 Other receivables 202 231 -29 -12.70 Total 645 734 -89 -12.17

The item “Receivables deriving from direct insurance transactions” amounted to € 375 million, down by € 63 million with respect to the close of the previous year.

The item “Receivables deriving from reinsurance transactions” amounts to € 68 million (+4.62%).

The item “Other receivables” dropped from € 231 million to € 202 million in the previous period and mainly comprises amounts due for management fees deriving from the management of the internal and external funds containing unit-linked products, as well as amounts receivable for deductibles, loans to employees, guarantee deposits and rentals.

OTHER ASSET ITEMS

“Other assets items” are made up as follows:

Table 16 – Other asset items

Change (€ millions) 03.31.2007 12.31.2006 Amount %

Non current assets or of a group subject to disposal held for sale 3,444 0 3,444 100.00 Deferred acquisition costs 44 44 0 0.00 Deferred tax assets 18 18 0 0.00 Current tax assets 227 243 -16 -6.58 Other assets 142 150 -8 -5.33 Total 3,875 455 3,420 751.65

Non current assets or of a group subject to disposal held for sale This item includes all the assets regarding BPV which are considered subject to disposal, according to IFRS 5. The item amounted to € 3,444 million

Deferred acquisition costs The “deferred acquisition costs” relating to insurance policies, as per IFRS 4, amounted to € 44 million as of March 31st.

Deferred and current tax assets Deferred and current tax assets at the end of the period fell from € 261 million to € 245 million. The change during the period in the item “deferred and current tax assets” was as follows:

Deferred tax assets Deferred tax assets at the end of the period amounted to € 18 million (unchanged). In accordance with the definition contained in IAS 12, these comprise the amounts of the income taxes recoverable in future accounting periods.

Current tax assets These amount to € 227 million (-6.58%) and comprise amounts due to the tax authorities.

Other assets This item, which amounts to € 142 million (-5.33%), includes the transitory reinsurance accounts, deferred commission expense (DAC - deferred acquisition cost) relating to policies not falling within the sphere of application of IFRS 4, accrued income and prepaid expenses and other assets. The breakdown of the item “other assets” is as follows:

Table 17 - Other assets

Change (€ millions) 03.31.2007 12.31.2006 Amount %

Transitory reinsurance accounts 0 19 -19 -100.00 Deferred commission expense associated with investment policies 6 10 -4 -40.00 Accrued income and prepaid expenses 86 95 -9 -9.47 of which for interest 82 93 -11 -11.83 of which for rental fees 422 100.00 Sundry assets 50 26 24 92.31 Total 142 150 -8 -5.33

The item “deferred commission expense relating to investment policies”, which amounts to € 6 million (- € 4 million), refers to the deferred acquisition costs associated with investment policies or contracts not complying with the definition of insurance policy as per IFRS 4.

The item “accrued income and prepaid expenses” almost entirely comprises accruals relating to interest income on securities, pertaining to the period, whose coupon matures in the following quarter.

There is no accrued income or prepaid expenses due beyond 12 months.

CASH AND CASH EQUIVALENTS

The item “cash and cash equivalents” represents the balance as of the end of the accounting period of the current accounts held with various banks. Cash and cash equivalents amounted to € 461 million. In the first three months of the year, this item decreased by € 129 million, partially due to the fact that the amount regarding BPV Vita, considered an asset subject to disposal, was reclassified under the item “Non-current assets or a group subject to disposal held for sale”.

SHAREHOLDERS' EQUITY

As of March 31st, this item amounted to € 1,406 million and was made up as follows:

Table 18 – Shareholders’ equity

Change (€ millions) 03.31.2007 12.31.2006 Amount %

Shareholders' equity 1,406 1,374 32 2.33 pertaining to the Group 1,256 1,232 24 1.95 Share capital 142 142 0 0.00 Other equity instruments 000 Capital reserves 590 590 0 0.00 Net profit reserves and other equity reserves 405 263 142 53.99 Own shares 000 Reserve for net exchange differences 000 Gains or losses on financial assets available for sale 105 99 6 6.06 Other gains or losses recorded directly under equity -1 -1 0 0.00 Profit (loss) for the period pertaining to the Group 15 139 -124 -89.21 pertaining to third parties 150 142 8 5.63 Capital and reserves pertaining to minority shareholders 146 121 25 20.66 Gains and losses recorded directly under equity -2 0 -2 Profit (loss) for the period pertaining to minority shareholders 6 21 -15 -71.43 Total 1,406 1,374 32 2.33

Shareholders' equity pertaining to the Group This item totals € 1,256 million and comprises the following items:

Share capital The fully subscribed share capital amounts to € 142 million and is represented by 47,391,228 ordinary shares with a par value of € 3 each.

Capital reserves This item amounted to € 590 million and includes the share premium reserves of the Parent Company.

Net profit reserves and other equity reserves This item, which comprises the gains and losses deriving from the initial application of the international accounting standards (IFRS 1), the reserves required by the Italian Civil Code (consolidation reserve and reserve for valuation differences on unconsolidated equity investments) and by special laws prior to the adoption of the international accounting standards, amounts to a total of € 405 million, compared with € 263 million in the previous year. The change is due to the recording of profit from the previous year.

Own shares As of March 31st, the Parent Company and the subsidiaries did not hold any Cattolica shares.

Gains or losses on financial assets available for sale At the end of the year, this item amounted to € 105 million (+6.06%) and reported the changes registered during the quarter, deriving from the valuation at fair value of the financial instruments included in the corresponding asset item, net of the related deferred taxation, as well as the net effect deriving from shadow accounting.

Shareholders' equity pertaining to minority shareholders With reference to the companies included within the scope of consolidation, this item comprises the balances pertaining to the minority shareholders. As of March 31st, the item amounted to € 150 million.

PROVISIONS AND ALLOWANCES

As of March 31st, the item “other provisions and allowances”, which totalled € 16 million, was unchanged as compared to the previous year. It included the liability relating to legal disputes, including therein the possible future charge deriving from the formal notice of proceedings or reports on findings which will be served by the ISVAP, and the estimated liability relating to disputes concerning employment contract

TECHNICAL PROVISIONS

This item includes the provisions associated with insurance policies, and those deriving from investment policies involving discretionary profit sharing (DPF), gross of the outward reinsurance.

At the end of the first quarter, total technical provisions amounted to € 12,784 million (-20.16%). The decrease recorded during the period is mainly ascribable to the fact that the amount of reserves of BPV Vita, as it is considered an asset subject to disposal, was reclassified in the summary item "Non-current assets or a group subject to disposal held for sale".

“Technical provisions” are analyzed as follows:

Table 19 – Breakdown of technical provisions

Direct business Indirect business Total value for the period (€ millions) 03.31.2007 12.31.2006 03.31.2007 12.31.2006 03.31.2007 12.31.2006

Non-life provisions 3,137 3,132 29 30 3,166 3,162 Provision for unearned premiums 548 564 8 8 556 572 Provision for outstanding claims 2,588 2,567 21 22 2,609 2,589 Other provisions 110011 of which provisions provided following the assessment of fairness of the liabilities 0 00000

Life provisions 9,614 12,846 4 5 9,618 12,851 Outlay provisions 91 140 0091 140 Actuarial provisions 5,505 6,656 005,505 6,656 Technical provisions where the investment risk is borne by the policyholders and 00 provisions deriving from the management of pension funds 3,974 5,976 3,974 5,976 Other provisions 44 74 4 5 48 79 of which provisions provided following the assessment of fairness of the liabilities 0 0 0 0 0 0 of which deferred liabilities due from policyholders -16 -7 0 0-16-7 Total technical provisions 12,751 15,978 33 35 12,784 16,013

NON-LIFE BUSINESS

Provision for unearned premiums In accordance with Italian legislation, the item comprises both the provision for premium fractions, supplemented by the premium provision calculated for certain classes as per specific ministerial requirements.

As of March 31st, this provision amounted to € 556 million (-2.63%).

Provision for outstanding claims At the end of the period, this item amounted to € 2,609 million, (+20 million compared with the end of the previous period).

Other provisions As of March 31st, other provisions amounted to € 1 million, substantially unchanged as compared to the previous period.

LIFE BUSINESS

Actuarial provisions At the end of the period, the actuarial provisions totalled € 5,505 million, down by € 1,151 million when compared with December 31st, 2006. They include the provision for pure premiums relating to annual-premium payment policies, the population-change provision and the mortality-risk provision for index and unit-linked policies.

Outlay provisions These amount to € 91 million (- 35%).

Technical provisions where the investment risk is borne by the policyholders and provisions deriving from the management of pension funds. This item exclusively comprises the provisions relating to index-linked and unit-linked polices and the provisions relating to pension funds.

In detail, technical provisions where the investment risk is borne by the policyholders amounted to € 3,974 million, (€ -2,002 million compared to the end of the previous year).

Other technical provisions Other technical provisions, amounting to € 48 million (-39.24%), mainly comprise provisions for future costs associated with insurance policies for € 60 million and the negative shadow accounting provision totalling € 16 million.

FINANCIAL LIABILITIES

The breakdown of “financial liabilities” is as follows:

Table 20 – Financial liabilities

Change (€ millions) 03.31.2007 12.31.2006 Amount %

Financial liabilities valued at fair valued stated in the income statem 1,373 1,953 -580 -29.70 Other financial liabilities 146 156 -10 -6.41 Total 1,519 2,109 -590 -27.98

Financial liabilities valued at fair value recorded in the income statement The item includes the financial liabilities valued at fair value recorded in the income statement, defined and disciplined by IAS 39, relating to:

• the investment policies, not falling within the sphere of application of IFRS 4, issued by Group insurance companies, where the risk of the investment is borne by the policyholders; • the management of pension funds.

At the end of the year, the item amounted to € 1,373 million (- € 580 million with respect to the end of the previous year) and represented 90.39% of total financial liabilities. This item includes the technical provisions associated with investment policies, which exclusively comprise provisions for index-linked and unit-linked policies and provisions for open pension funds. The decrease recorded during the period can be partially attributed to the fact that the corresponding amount regarding BPV Vita, considered an asset subject to disposal, was reclassified in the item "Non-current liabilities or a group subject to disposal held for sale”.

Other financial liabilities The item includes the financial liabilities defined and disciplined by IAS 39 not included in the category “Financial liabilities valued at fair value recorded in the income statement”. In detail, the item includes financial payables amounting to € 1 million, deposits received from re-insurers which total € 131 million, and technical provisions associated with investment policies valued at amortized cost for a total of € 14 million.

As of the end of the quarter, the item amounted in total to € 146 million (- € 10 million compared to the close of the previous year) and represented 9.61% of total financial liabilities.

PAYABLES

The account group comprises trade payables disciplined by IAS 39, mainly represented by payables deriving from direct insurance transactions, reinsurance payables and other payables.

“Payables” are analyzed as follows:

Table 21 - Payables

Change (€ millions) 03.31.2007 12.31.2006 Amount %

Payables deriving from direct insurance transactions 63 75 -12 -16.00 Insurance brokers 46 67 -21 -31.34 Insurance companies - current accounts 12 7571.43 Policyholders for guarantee deposits and premiums 5 14400.00 Guarantee funds in favour of policyholders 0 00

Payables deriving from reinsurance transactions 52 52 0 0.00 Insurance and reinsurance companies 50 51 -1 -1.96 Insurance brokers 2 11100.00

Other payables 190 142 48 33.80 For taxes payable by policyholders 35 19 16 84.21 Amounts due to social security and welfare institutions 8 35166.67 Sundry payables 147 120 27 22.50 Total 305 269 36 13.38

Payables deriving from direct insurance transactions “Payables deriving from direct insurance transactions” mainly comprise the amounts due to insurance brokers, which totalled € 63 million (-16%). The decrease recorded during the period is mainly ascribable to the fact that the amount of reserves of BPV Vita, as it is considered an asset subject to disposal, was reclassified in the summary item "Non-current liabilities or a group subject to disposal held for sale".

Payables deriving from reinsurance transactions “Payables deriving from reinsurance transactions”, which include the items with debt balances associated with reinsurance, amount to € 52 million.

Other payables These include payables for taxes payable by re-insurers, amounts due to welfare and social security institutions and other sundry payables; at the end of the first quarter, the balance came to € 190 million (+33.8%).

In detail, the item sundry payables, which presented a balance of € 147 million (+22.5%), included: amounts due to suppliers, due to employees, for premiums being collected and for the allowance for employee severance indemnities. The employee severance indemnity is subject to actuarial calculation which takes into account the future developments of the employment relationship. The future flows of the employee severance indemnity have been discounted back as of the reference date on the basis of the method expressly requested by section 64 of IAS 19, known as the Project Unit Credit Method.

OTHER LIABILITY ITEMS

Table 22 – Other liability items Change (€ millions) 03.31.2007 12.31.2006 Amount %

Liabilities of a group subject to disposal held for sale 3,320 0 0 Deferred tax liabilities 131 124 7 5.65 Current tax liabilities 55 66 -11 -16.67 Other liabilities 79 80 -1 -1.25 Total 3,585 270 3,315 1,227.78

Liabilities of a group subject to disposal held for sale This item includes all the assets regarding BPV which are considered subject to disposal, according to IFRS 5. The item amounted to € 3,320 million

Current and deferred tax liabilities At the close of the first quarter, current and deferred tax liabilities amounted to € 186 million (- 4 million compared with the close of the previous year).

Deferred tax liabilities The item, which comprises the deferred tax liabilities defined and disciplined by IAS 12, amounted to € 131 million (+5.65%) as of March 31st.

Current tax liabilities This item comprises the current tax liabilities defined and disciplined under IAS 12. In detail, the class comprises the other tax liabilities for current taxes. During the period, it amounted to € 55 million.

Other liabilities The item “other liabilities”, amounted to € 79 million (-1 million compared with the end of the previous year). This item comprises the deferred commission income associated with policies not falling with the sphere of application of IFRS 4, accrued expenses and deferred income and sundry liabilities.

“Other liabilities” as of March 31st, were broken down as follows:

Table 23 - Other liabilities Change (€ millions) 03.31.2007 12.31.2006 Amount %

Deferred commission income (DIR) 8 13 -5 -38.46 Transitory reinsurance accounts 0 19 -19 -100.00 Liaison account 44 21 23 109.52 Accrued expenses and deferred income, of which: 27 27 0 0.00 for interest 25 26 -1 -3.85 for rental fees 0 0 0 other accruals and deferrals 2 1 1 100.00 Total 79 80 -1 -1.25

The “deferred commission income” amounted to € 8 million (-38.46%) and was mainly chargeable to index and unit-linked type investment policies, where the risk of the investments is borne by the policyholders.

Income Statement

INSURANCE BUSINESS

With reference to insurance business, in addition to the matters illustrated below, reference should be made to table 6 in the management report “Reclassified consolidated income statement by segment of activities”.

NON-LIFE BUSINESS

The non-life business closed with a positive result of € 3 million, net of taxation totalling € 3 million, which was affected by the decrease in net premiums, from € 382 million to € 372 million, the increase in net charges relating to claims, from € 289 million to € 291 million, and the increase in the incidence of operating expenses on net premiums, from 19.32% to 20.22%

Net premiums Premiums relating to direct and indirect non-life business amounted to € 372 million, a decrease of € 10 million with respect to first quarter of the previous year.

The gross change in the premiums provisions came to € 15 million; the reinsurance portion amounted to € 2 million.

Net charges relating to claims The net charges relating to claims amount in total to € 291 million, disclosing an increase of 0.69% compared with March 31st, 2006.

Operating expenses For the non-life business, this item amounts to € 75 million. Commissions and other acquisition costs, equal to € 52 million, are comprised as follows: commissions and other acquisition costs for € 66 million, unchanged compared to the previous year, as well as commissions and profit-sharing received from re-insurers for € -14 million (- 10.94%). Other operating expenses amounted to € 23 million as at March 31st.

Other technical income and charges At the close of the period, other technical income and charges amounted to € -16 million (- 1 million compared to the same period of the previous year).

LIFE BUSINESS

The life business closed with a positive consolidated result of € 18 million, net of taxation totalling € 15 million, disclosing an increase of € 2 million when compared with the first quarter of the previous year. The increase in net premiums contributed to this result.

Net premiums Net premiums amounted to € 627 million, an increase compared with the € 619 million recorded as of March 31st, 2006.

Net charges relating to claims Charges relating to claims rose from € 596 million in the first quarter of 2006 to € 625 million, an increase of 4.87%.

Operating expenses Gross commission and other acquisition costs, which present a balance of € 30 million, down by € 1 million recorded in the same period of the previous year, comprise acquisition costs relating to insurance policies and investment policies with discretionary participation features. Specifically, this item comprises acquisition commission for € 17 million, other acquisition costs for € 3 million and collection commission for € 3 million.

The operating expenses relating to the investments, recorded during the first quarter, which comprise general expenses and expenses for employees relating to the management of property investments and equity investments, amount to € 1 million, unchanged as compared with March 31st, 2006.

“Other administrative expenses” rose from € 5 million to € 6 million.

Other technical income and charges As of the close of the accounting period, other technical income and charges fell from € -1 million to € -2 million, compared with the same period of the previous year.

FINANCIAL OPERATIONS

Financial operations amounted to € 78 million (+52.94%).

NON-LIFE BUSINESS Net income deriving from financial instruments valued at fair value stated in the income statement for the non-life business amounted to € 5 million (-58.33%). Net income deriving from other financial instruments and property investments amounted to € 13 million (+18.18%).

LIFE BUSINESS Net income deriving from financial instruments valued at fair value stated in the income statement amounted to € 18 million (+ 22 million compared with March 31st, 2006). Income and charges deriving from equity investments in subsidiary and associated companies and joint ventures, equal to € 1 million, remained unchanged compared with the previous year. Income and charges deriving from other financial investments and property investments amounted to € 42 million (+61.54%).

Commission income Commission income mainly comprises the commission relating to investment policies issued by Group's insurance companies (DIR); specifically, the item includes the explicit and implicit premium loading encumbering the investment policies issued. Commission income pertaining to the period amounted to € 3 million (€ - 2 million compared with the same period of the previous year).

Commission expense The item, which comprises the acquisition costs associated with investments policies (DAC) recorded during the year, amounted to €3 million.

Operating expenses relating to investments Operating expenses relating to investments amounted to € 1 million.

OTHER REVENUES AND OTHER COSTS

Other revenues, net of other costs, amounted to € - 2 million in the non-life business, and € - 1 million in the life business.

INCOME TAX

The item “taxation” includes current taxes (IRES – company earnings’ tax and IRAP – regional business tax), the deferred taxes of the individual Group companies recorded in observance of Accounting Standard No. 25 on income taxes, and deferred taxes which have arisen from the temporary misalignment between the beginning of the economic period laid down by the international accounting standards and that provided by tax legislation. In the first quarter, this item amounted to € 18 million.

Notes to the accounts - Acquisitions and transfers

Acquisitions and transfers

SUPPLEMENTARY INFORMATION ON BUSINESS COMBINATIONS AND TRANSFERS

This section of the Notes to the Accounts includes the information required to IFRS 3, and IFRS 5, in relation to the most significant acquisitions and transfers carried out during the period.

Business As regards business combinations, it is noted that, in compliance with IFRS 3, these are combinations recorded using the purchase method, which requires the recording of the assets and liabilities, including potential liabilities, acquired, including those not recorded prior to the acquisition. Measurement of the assets and liabilities of the Group not subject to the operation are not affected by the operation. Specifically, the initial phases of the application of this method involves the calculation of the cost of the business combination, and the allocation, at the date of acquisition, of the cost of the business combination to the assets acquired and to the liabilities, including potential liabilities, assumed. The date of acquisition is the date in which control is effectively acquired, as defined by IAS 27 and the cost of the business combination is determined as the total sum of the fair value, at the date of transfer, of the assets transferred, liabilities accrued or assumed in exchange for control and any cost directly attributable to the business combination. In general, it is noted that: • all assets and liabilities, including potential liabilities, are recorded at fair value at the moment of acquisition of control; • the excess between the price paid and the total net assets, including the value of the portfolio of intangible assets, is recorded as goodwill and systematically subjected to impairment tests; • the net assets acquired are definitively valued within one year from the date of acquisition; • all revenues and costs of the purchase are recorded on the basis of the fair value of the assets and liabilities at the acquisition date.

Transfers As required by IFRS 5, a non-current asset or group subject to disposal are classified as held for sale if their book value will be recovered mainly through a sales transaction, instead of through their continued use, within the time frame of one year, except for specific cases. These assets are thus classified at the moment in which the sales transaction becomes highly probable. Assets or a group subject to disposal which meet the above criteria are valued, with the exclusion of those specifically indicated by IFRS 5, at the lesser of their book value or fair value, net of sales costs. The amortisation and depreciation of these assets is interrupted from the moment in which the assets meet the criteria for reclassification.

BUSINESS COMBINATIONS

During the period, with the exclusion of the purchase of a further 3.57% of the equity investment in the subsidiary C.I.R.A., illustrated in the Notes to the Accounts, under the section Information on the Balance Sheet - Intangible assets , no other business combinations were carried out.

TRANSFERS

As pointed out in the Management Report, on March 28th, 2007, Banco Popolare di Verona e Novara exercised a call option on the equity investment in BVP Vita held by the Cattolica Group. This measure, which is currently awaiting authorisation from ISVAP, makes it highly likely that the equity investment will be sold, as it meets the requirements of IFRS 5.

The main effects of this sale on the first quarter results of the Group are as follows:

• all assets and liabilities regarding BPV Vita as of March 31st, 2007 are classified as held for sale; • all costs and revenues, both as of March 31st, 2007, and as of March 31st, 2006, are classified as related to assets held for sale; • all assets and liabilities of BPV Vita, excluding the deferred assets and liabilities, assets and liabilities regarding employee benefits from financial instruments and contractual rights deriving from insurance contracts, are generally valued at book value as less than their fair value net of sales costs.

Information on the balance sheet

The table below breaks down the assets and liabilities of BPV Vita, reclassified in the consolidated balance sheet, under the items “6.1 Non-current assets or a group subject to disposal held for sale” and “6.1 Liabilities of a group subject to disposal held for sale”.

Table 24 - Balance sheet of the group subject to disposal held for sale

BALANCE SHEET - ASSETS SUBJECT TO DISPOSAL 03.31.2007 12.31.2006 TOTAL Breakdown of assets (€ millions) CONSOLIDATED subject to disposal 1 INTANGIBLE ASSETS 224 0 222 1.1 Goodwill 174 0 173 1.2 Other intangible assets 50 0 49 2 TANGIBLE ASSETS 45 0 46 2.1 Property 30 0 31 2.2 Other tangible assets 15 0 15 3 TECHNICAL PROVISIONS - REINSURANCE AMOUNT 496 0 500 4 INVESTMENTS 13,869 3,334 17,504 4.1 Property investments 10 1 4.2 Equity investments in subsidiary and associated companies and joint ventures 81 0 80 4.3 Investments held to maturity 137 0 137 4.4 Loans and receivables 358 0 359 4.5 Financial assets available for sale 6,037 859 6,566 4.6 Financial assets valued at fair value stated in the income statement 7,255 2,475 10,361 5 SUNDRY RECEIVABLES 645 15 734 5.1 Receivables deriving from direct insurance transactions 375 0 438 5.2 Receivables deriving from reinsurance transactions 68 0 65 5.3 Other receivables 202 15 231 6 OTHER ASSET ITEMS 3,875 53 455 6.1 Non-current assets or of a group subject to disposal held for sale 3,444 0 0 6.2 Deferred acquisition costs 44 0 44 6.3 Deferred tax assets 18 0 18 6.4 Current tax assets 227 39 243 6.5 Other assets 142 14 150 7 LIQUID FUNDS AND EQUIVALENTS 461 42 590 TOTAL ASSETS SUBJECT TO DISPOSAL 19,615 3,444 20,051

BALANCE SHEET - NET SHAREHOLDERS' EQUITY AND LIABILITIES SUBJECT TO DIS 03.31.2007 12.31.2006 TOTAL Breakdown of liabilities (€ millions) CONSOLIDATED subject to disposal 1 SHAREHOLDERS' EQUITY 1,406 1,374 1.1 pertaining to the Group 1,256 1,232 1.1.1 Share capital 142 142 1.1.2 Other equity instruments 00 1.1.3 Capital reserves 590 590 1.1.4 Net profit reserves and other equity reserves 405 263 1.1.5 (Own shares) 00 1.1.6 Reserve for net exchange differences 00 1.1.7 Gains or losses on financial assets available for sale 105 99 1.1.8 Other gains or losses recorded directly under equity -1 -1 1.1.9 Net profit (loss) for the period pertaining to the Group 15 139 1.2 pertaining to third parties 150 142 1.2.1 Capital and reserves pertaining to minority shareholders 146 121 1.2.2 Gains or losses recorded directly under equity -2 0 1.2.3 Profit (loss) for the period pertaining to minority shareholders 6 21 2 PROVISIONS AND ALLOWANCES 16 - 16 3 TECHNICAL PROVISIONS 12,784 2,887 16,013 4 FINANCIAL LIABILITIES 1,519 373 2,109 4.1 Financial liabilities valued at fair valued stated in the income statement 1,373 370 1,953 4.2 Other financial liabilities 146 3 156 5 PAYABLES 305 31 269 5.1 Payables deriving from direct insurance transactions 63 12 75 5.2 Payables deriving from reinsurance transactions 52 0 52 5.3 Other payables 190 19 142 6 OTHER LIABILITY ITEMS 3,585 29 270 6.1 Liabilities of a group held for sale 3,320 0 0 6.2 Deferred tax liabilities 131 2 124 6.3 Current tax liabilities 55 24 66 6.4 Other liabilities 79 3 80 TOTAL NET SHAREHOLDERS' EQUITY AND LIABILITIES SUBJECT TO DISPOSAL 19,615 3,320 20,051

Table 25 – Breakdown of technical reserves of the group subject to disposal held for sale

03.31.2007 12.31.2006 TOTAL Breakdown of liabilities (€ millions) CONSOLIDATED subject to disposal

Non-life provisions 3,166 0 3,162 Provision for unearned premiums 556 0 573 Provision for outstanding claims 2,609 0 2,589 Other provisions 10 1 of which provisions provided following the assessment of fairness of the liabilities 00 0

Life provisions 9,618 2,887 12,851 Outlay provisions 91 24 140 Actuarial provisions 5,505 853 6,656 Technical provisions where the investment risk is borne by the policyholders and 5,976 provisions deriving from the management of pension funds 3,974 1,997 Other provisions 48 13 79 of which provisions provided following the assessment of fairness of the liabilities 00 0 of which deferred liabilities due from policyholders -16 -1 -7 Total technical provisions 12,784 2,887 16,013

Information on the income statement

The following table breaks down the costs and revenues of BPV Vita, reclassified in the consolidated income statement under item “4 Profit (loss) from business activities suspended”.

Table 26 – Income statement of the group subject to disposal held for sale

INCOME STATEMENT - ASSETS AND LIABILITIES SUBJECT TO DISPOSAL 03.31.2007 03.31.2006 TOTAL Breakdown of assets TOTAL Breakdown of assets (€ millions) CONSOLIDATED subject to disposal CONSOLIDATED subject to disposal 1.1 Net premiums 999 48 1,001 247 1.1.1 Gross premiums written 1,046 48 1,051 247 1.1.2 Premiums transferred under reinsurance -47 0 -50 0 1.2 Commission income 3 0 5 0 Income and charges deriving from financial instruments valued at fair value stated in the 1.3 23 -1 8 3 Incomeincome statementderiving from equity investments in subsidiary and associated companies and 1.4 1 0 1 0 joint ventures 1.5 Income deriving from other financial instruments and property investments 59 10 50 9 1.5.1 Interest income 48 9 32 7 1.5.2 Other income 1 0 2 0 1.5.3 Realized gains 10 1 16 2 1.5.4 Valuation income 0 0 0 0 1.6 Other revenues 8 0 28 1 1 TOTAL REVENUES AND INCOME 1,093 57 1,093 260 2.1 Net charges relating to claims 916 45 885 238 2.1.2 Amounts paid and change in technical provisions 940 45 917 238 2.1.3 Reinsurance portion -24 0 -32 0 2.2 Commission expense 3 0 3 1 Charges deriving from equity investments in subsidiary and associated companies and 2.3 0 0 0 0 joint ventures 2.4 Charges deriving from other financial instruments and property investments 4 0 7 0 2.4.1 Interest expense 2 0 3 0 2.4.2 Other charges 0 0 0 0 2.4.3 Realized losses 2 0 3 0 2.4.4 Valuation loss 0 0 1 0 2.5 Operating expenses 107 5 107 12 2.5.1 Commission and other acquisition costs 75 4 77 11 2.5.2 Operating expenses relating to investments 1 0 3 0 2.5.3 Other administrative expenses 31 1 27 1 2.6 Other costs 29 0 44 0 2 TOTAL COSTS AND CHARGES 1,059 50 1,046 251 PROFIT (LOSS) FOR THE YEAR BEFORE TAXATION 34 7 47 9 3 Taxation 18 2 17 1 NET PROFIT (LOSS) FOR THE YEAR 16 5 30 8 4 PROFIT (LOSS) FROM BUSINESS ACTIVITIES SUSPENDED 5 0 8 CONSOLIDATED PROFIT (LOSS) 21 5 38 8 pertaining to the Group 15 3 31 4 pertaining to minority shareholders 6 2 7 4

Table 27 – Premiums of the group subject to disposal held for sale

03.31.2007 03.31.2006 TOTAL Breakdown of assets TOTAL Breakdown of assets (€ millions) CONSOLIDATED subject to disposal CONSOLIDATED subject to disposal

Other damage to assets 19 - 19 - Assistance 4- 3- Suretiship 3- 3- Aircraft hulls - - - - Railway rolling stock - - 0 - Ships (sea and inland water vessels) - - - - Land vehicle hulls 30 - 29 - Credit -- -- Fire & natural forces 18 - 19 - Accident and injury 28 - 26 - Health 14 - 12 - Goods in transit - - 1 - Sundry financial losses 4 - 3 - TPL - Aircraft - - 0 - TPL - Land motor vehicles 230 - 241 - TPL -General 36 - 36 - TPL - Ships (sea and inland water vessels) - - - - Legal protection 3 - 2 - Total non-life classes 389 - 394 -

Class I 210 7 269 20 Class III 338 - 203 223 Class IV -40- - Class V 83 - 152 4 Class VI -2 - Total life (1) 631 48 624 247

Total direct business 1,020 48 1,018 247

Indirect business 10 - 11 -

Total insurance premiums 1,030 48 1,029 247

Class I -- -- Class III 9-1615 Class IV -- -- Class V -- -- Class VI 7- 6- Total investment policies 16 - 22 15

TOTAL PREMIUMS WRITTEN 1,046 48 1,051 262

n.s. = not significant (1) Class I = Insurance on the duration of human life Class III = Insurance on the duration of human life linked to investment funds Class IV = Health insurance as per Art. 1, no. 1, letter d) of EEC Directive No. 79/267 dated March 5th, 1979 Class V = Capitalization transactions Class VI = Pension funds