Presentation of consolidated results as at 30 June 2014
Carlo Cimbri – CEO
Bologna, 6 August 2014
•
Unipol Group – 1H14 key operations
•
Consolidated results
•
Insurance business
Agenda
NOTE:
•
Non-Life insurance business
•
Life insurance business
•
Banking business
•
Real Estate and other activities
•
Investment management
•
Solvency
The data reported in this presentation are consolidated unless otherwise specified.
Data pertaining to UnipolSai for the period 1H13 are pro-forma consolidated and management figures and they relate to the UnipolSai Group’s
basis of consolidation after the merger.
UNIPOL GROUP: 1H14 KEY OPERATIONS
Antitrust requirement
Sale of former Milano Ass.ni
insurance business to Allianz
Closing of the sale agreement to Allianz and execution of the transfer of insurance business (725
agencies) and 470 employees
Decrease in debt exposure
to Mediobanca
Total placement of UnipolSai undated hybrid subordinated notes of €750m with institutional
investors – mainly from foreign countries (70%) – and, at the same time, early repayment of
perpetual hybrid loan previously granted by Mediobanca for an equal amount
IVASS indications
Reduction of exposure to
structured products
Reduction of Levels 2 and 3 of about €1.2bn, realising gains for €24m
Improvement of the debt maturity profile
Exchange offer on UGF loan
Exchange offer on Unipol Gruppo Finanziario senior loan of €750m (due 2017). €352m
subscribed and new issue of €500m (due 2021)
Rationalization of the Group corporate structure
Restructuring of RE,
banking and sub-holding
sectors

Approval of the merger project involving 20 companies of the RE sector to be finalized by
the end of 2014

Approval of the project to merge Unipol Banca and Banca SAI to be completed subject to
obtaining the authorisations prescribed by the law

Start of the procedural steps to merge 3 sub-holdings operating under Italian law and to wind
up 3 companies of the former Fondiaria-SAI Group operating under foreign law
3
SALE OF FORMER MILANO ASSICURAZIONI INSURANCE BUSINESS
14 January
Allianz S.p.A. submitted a proposal for the acquisition of some insurance assets of former Milano
Assicurazioni S.p.A.
21 January
The BoDs of Unipol and UnipolSai convened to proceed to the exclusive negotiation and finalization of
binding agreements with Allianz within 15 March
15 March
UnipolSai and Allianz executed the sale agreement
30 June
Allianz and UnipolSai closed the sale agreement
Terms of the agreement (effective date 1 July 2014)
• immediate transfer to Allianz of 725 agencies and 470 employees relating to a Non-Life insurance
portfolio with premiums of €1.1bn (figures as of 31/12/2013), against payment of an amount of €200m
• transfer of the residual portfolio and payment of the additional amount for up to a maximum of €240m
by the end of 2014
31 December
Final effective date of the transfer of the ceded portfolio subject to IVASS approval.
Payment of the additional amount for up to €240m
4
STRUCTURED PRODUCTS – FOCUS ON LEVEL 2 AND 3
€m
Unipol Gruppo Finanziario – Evolution of Level 2 and 3 structured products
realised gains
€1m
realised gains
€24m
-852
-1,161
5,295
4,443
Book value
3,282
FY12
decrease
FY13
decrease
1H14
Market value
4,741
4,086
3,189
Unrealised gain/loss
-554
-357
-93
From 1 January 2013 to 30 June 2014:
- decrease in investments in Level 2 and 3 structured products for €2.0bn
- realised capital gains of €25m
- unrealised loss reduced of nearly €500m
5
UNIPOL GROUP – DEBT STRUCTURE
€m
Debt structure evolution
3,311
Breakdown by maturity/call date
-202
-352
31/12/2013
3,250
-7
+500
-750
1,450
+750
700
750
750
662
340
549
1,312
375
562
300
200
112
2015
2016
898
750
31/12/2013
102
UGF
exchange
offer
UGF
issue
repayment of
former
Premafin debt
following issue of
convertible loan
other
repayment of
Mediobanca
loans
issue of
new loan
30/06/2014
debt with Mediobanca (UnipolSai)
debt with other banks (UnipolSai)
subordinated listed loans (UnipolSai)
2017
2018
2020
2021
2023
2026
subordinated
senior
hybrid
listed loans (UGF)
30/06/2014
800
Targets achieved:
 lengthening of maturity (UGF average life from 2.9 to 5.2 years, UnipolSai from 6.9 to 8.8
years)
 reduction of exposure to Mediobanca
662
467
200
102
112
69
2015
Excluding debts in the banking sector and UnipolSai convertible loan
750
2016
39
2017 2018 2020 2021
2023
2024 2026
6
•
Unipol Group – 1H14 key operations
•
Consolidated results
•
Insurance business
Agenda
•
Non-Life insurance business
•
Life insurance business
•
Banking business
•
Real Estate and other activities
•
Investment management
•
Solvency
1H14 RESULTS BY BUSINESS SECTOR
€m
UNIPOLSAI
560
453
357
301
129
8
81
-30
Non-Life
Life
-1
-23
RE
Other businesses
Total
UNIPOL GRUPPO FINANZIARIO
461
417
307
128
77
20
240
6
-30
Non-Life
Life
Bank
consolidated pre-tax result
-23
RE
-163
-127
Holding and
other businesses
Total
consolidated net result
8
•
Unipol Group – 1H14 key operations
•
Consolidated results
•
Insurance business
Agenda
•
Non-Life insurance business
•
Life insurance business
•
Banking business
•
Real Estate and other activities
•
Investment management
•
Solvency
DIRECT INSURANCE INCOME
€m
including premiums
being ceded to
Allianz
1H13
1H14
10,070
+10.7%
9,097
8,907
8,177
+8.9%
5,318
3,999
3,403
4,774
4,471
920
+31.4%
-7.1%
5,097
4,437
596
323
UnipolSai
Other
companies
-6.8%
1,163
+41.4%
847
+70.1%
316
Total Unipol
Gruppo Finanziario
Life premiums
+33.0%
UnipolSai
Other
companies
4,753
-2.3%
Total Unipol
Gruppo Finanziario
Non-Life premiums
10
•
Unipol Group – 1H14 key operations
•
Consolidated results
•
Insurance business
Agenda
•
Non-Life insurance business
•
Life insurance business
•
Banking business
•
Real Estate and other activities
•
Investment management
•
Solvency
NON-LIFE DIRECT PREMIUM INCOME
€m
UnipolSai
4,774
-7.1%
4,437
10.8%
MV
UnipolSai S.p.A.
1,723
1,665
-3.4%
Accident&Health
12.8%
Property
62.5%
3,050
2,772
-9.1%
7.8%
General TPL
4,211
-6.8%
Liguria
79
-14.2%
Siat
54
-23.1%
DDOR
40
+3.1%
Incontra
37
+66.2%
Other
16
-50.2%
4,437
-7.1%
UnipolSai Group
6.1%
1H13
Other
1H14
€m
Unipol Gruppo Finanziario
5,097
-6.8%
4,753
1,915
1,869
14.0%
-2.4%
MV
Accident&Health
Linear
12.2%
Property
60.7%
3,182
2,884
-9.4%
UnipolSai Group
Unisalute
Arca
7.4%
General TPL
Unipol Gruppo Fin.
4,437
-7.1%
96
-13.9%
163
+9.1%
57
-9.0%
4,753
-6.8%
5.8%
Other
1H13
Non-MV
1H14
MV
12
NON-LIFE – COMBINED RATIO
UnipolSai
94.0%
92.7%
Expense ratio
Loss ratioa
16.3%
Unipol Gruppo Finanziario
92.2%
17.4%
23.9%
26.3%
15.6%
16.6%
23.4%
25.7%
7.6%
8.9%
7.8%
68.8%
67.7%
68.8%
67.7%
1H13
1H14
1H13
1H14
commissions/premiums
Combined ratio from direct business
a including OTI/premiums
93.4%
other oper. expenses/premiums
9.1%
loss ratio
13
NON-LIFE – 1H14 MV TPL TECHNICAL INDICATORS
UnipolSai S.p.A.
var. vs FY13
91.4%
Total portfolio
-0.3%
o/w:
retail
fleets
0.0%
-5.8%
Portfolio
average premium
a
Combined ratio
88.1%
12.3%
Expense ratio
12.0%
18.2%
20.8%
8.5%
6.2%
-4.2%
Loss ratiob
69.9%
70.6%
1H13
1H14
var. vs 1H13
No. of claims reported
(followed-up passive claims)
-8.7%
commissions/premiums
other oper. expenses/premiums
Frequency
-0.3 p.p.
loss ratio
a
Management figures
direct business
OTI/premiums
b including
14
•
Unipol Group – 1H14 key operations
•
Consolidated results
•
Insurance business
Agenda
•
Non-Life insurance business
•
Life insurance business
•
Banking business
•
Real Estate and other activities
•
Investment management
•
Solvency
LIFE DIRECT INCOME
€m
UnipolSai
25.2%
+31.4%
5.2%
5.0%
4,471
3,403
1H13
Index/Unit linked
1,129 (+11.2%)
Capitalization
233 (-55.7%)
UnipolSai S.p.A.
1,906
+10.4%
Pop. Vita+Lawr. Life
2,472
+55.0%
93
+15.1%
4,471
+31.4%
Other companies
Pension funds
225 (-2.3%)
UnipolSai Group
64.5%
1H14
Traditional
2,883 (+76.9%)
€m
Unipol Gruppo Finanziario
+33.0%
22.2%
4.5%
5,318
4.2%
3,999
69.1%
1H13
Index/Unit linked
1,183 (+7.8%)
1H14
Capitalization
238 (-55.0%)
Pension funds
225 (-2.3%)
UnipolSai Group
Arca Vita
Unipol Gruppo Fin.
4,471
+31.4%
847
+42.0%
5,318
+33.0%
Traditional
3,672 (+71.2%)
16
LIFE – NET INFLOWS
€m
1H13
1H14
-1,863
+3,403
-2,026
+4,471
-1,607
-1,212
UnipolSai
-98
premiums
redemptions
maturities/
annuities
claims
+67
net
inflows
-120
+881
premiums
redemptions
maturities/
annuities
claims
net
inflows
-2,071
-2,204
Unipol
Gruppo
Finanziario
-1,665
-156
-1,253
-146
premiums
Management figures
+5,318
+3,999
redemptions
maturities/
annuities
claims
+1,426
+396
net
inflows
premiums
redemptions
maturities/
annuities
claims
net
inflows
17
•
Unipol Group – 1H14 key operations
•
Consolidated results
•
Insurance business
Agenda
•
Non-Life insurance business
•
Life insurance business
•
Banking business
•
Real Estate and other activities
•
Investment management
•
Solvency
BANKING BUSINESS
Direct deposits
€m
10,820
Indicators
11,171
+3.2%
770
+73.1%
445
10,401
10,375
FY13
Unipol Group lending indicators
FY13
1H14
Net impaired loans
2,119
2,031
net impaired loans/net loans
21.0%
20.6%
% bad loans coverage ratio
50%
53%
% impaired loans coverage ratio
37%
41%
% total loans coverage ratio
12%
13%
1H13
1H14
Net interest income
126
131
Gross operating income
184
216
75.6%
68.5%
-66
6
+0.2%
1H14
Economic indicators – Banking sector
customer
securitisation
Lendinga
Cost/Income ratio
10,071
Net result – Banking sector
9,864
-2.1%
2,863
2,670
-6.7%
7,208
7,194
-0.2%
1H14 provisions on loans
 o/w Unipol Gruppo Finanziario S.p.A.
Capital indicators – Single company
149
100
1H14
Basel 3
FY13
customer
1H14
securitisation
CET1 Unipol Banca
CET1 Banca SAI
8.5%
23.1%
Aggregate management figures including Unipol Banca Group and Banca Sai Group
a net of provisions at UGF S.p.A. level
19
•
Unipol Group – 1H14 key operations
•
Consolidated results
•
Insurance business
Agenda
•
Non-Life insurance business
•
Life insurance business
•
Banking business
•
Real Estate and other activities
•
Investment management
•
Solvency
REAL ESTATE AND OTHER ACTIVITIES
€m
REAL ESTATE – UNIPOL GRUPPO FINANZIARIO
+37.7
4,765
4,646
-46.4
-37.6
-70.2
FY13
investmentsa
sales
deprec.
writedowns
-2.7
otherb
1H14
Management figures
a capex (€37.4m) and purchase (€0.3m)
b exchange variation and movement in associated RE funds
OTHER ACTIVITIES
Tenute del Cerro
(former Saiagricola)
-2.3
Clinics
-1.2
Atahotels
Marina
di Loano
-4.0
-5.2
-9.0
-8.1
-10.4
-13.5
1H13
1H14
IAS results
21
•
Unipol Group – 1H14 key operations
•
Consolidated results
•
Insurance business
Agenda
•
Non-Life insurance business
•
Life insurance business
•
Banking business
•
Real Estate and other activities
•
Investment management
•
Solvency
1H14 FINANCIAL INVESTMENTS
€bn
UnipolSai
Total investments €46.7bn
equity 1.0 (2.1%)
cash
1.5 (3.1%)
funds and other
0.6 (1.3%)
bonds
43.6 (93.5%)
Bond portfolio €43.6bn
Government
other Countries
5.2%
Corporate
4.5%
Financials
13.8%
Government
Italy 76.5%
Government
81.6%
Unipol Gruppo Finanziario
Total investments €52.7bn
equity
1.1 (2.0%)
cash
2.3 (4.4%)
funds and other
0.6 (1.2%)
Bond portfolio €48.7bn
Government
other Countries
4.8%
Corporate
4.1%
Financials
14.0%
bonds
48.7 (92.4%)
Government
Italy 77.1%
Government
81.9%
Investments relating to insurance companies managed by Unipol Group, excluding DDOR, DDOR RE, Lawrence Life and Class D, investments in subsidiaries, associates and
JVs, investments in RE and RE funds. Management figures.
23
1H14 INCOME FROM FINANCIAL INVESTMENTS
€m
UnipolSai
Unipol Gruppo Finanziario
4.92%
5.31%
3.84%
3.89%
Total
820
274
coupons
and
dividends
1,121
1.30%
gains
909
0.13%
229
26
fair value
through P&L
total
coupons
and
dividends
1,164
0.97%
gains
0.11%
26
fair value
through P&L
5.75%
Non-Life
3.45%
2.05%
414
249
148
0.25%
coupons
and
dividends
gains
fair value
through P&L
4.11%
5.03%
3.41%
1.39%
262
106
total
coupons
and
dividends
gains
5.08%
4.09%
706
644
18
0.23% 18
fair value
through P&L
0.91%
126
coupons
and
dividends
gains
0.06%
9
fair value
through P&L
total
coupons
and
dividends
386
total
4.92%
Life
571
total
774
0.77%
122
0.05%
gains
fair value
through P&L
8
Income relating to insurance companies managed by Unipol Group, excluding DDOR, DDOR RE, Lawrence Life and Class D, investments in subsidiaries, associates and JVs,
investments in RE and RE funds. Management figures.
total
24
AFS RESERVE
€m
Unipol Gruppo Finanziario
UnipolSai
1,158
1,113
1,055
1,028
543
522
344
999
225
1,120
950
1,055
85
77
58
FY13
1Q14
1H14
458
243
490
181
101
32
44
1H13
9M13
FY13
56
32
38
32
1Q14
bonds
Total AFS reserve (Group+third parties). Break-up based on in-house estimate.
.
1H14
equity
25
•
Unipol Group – 1H14 key operations
•
Consolidated results
•
Insurance business
Agenda
•
Non-Life insurance business
•
Life insurance business
•
Banking business
•
Real Estate and other activities
•
Investment management
•
Solvency
SOLVENCY I
UnipolSai
Unipol Gruppo Finanziario
1.6x
1.6x
1.5x
FY13
1H14
FY13
1.6x
1H14
27
DISCLAIMER
Maurizio Castellina, Senior Executive responsible for drawing up the corporate accounts of Unipol
Gruppo Finanziario S.p.A. and UnipolSai Assicurazioni S.p.A., declares, in accordance with Article
154-bis, para 2, of the Consolidated Finance Act, that the accounting information reported in this
presentation correspond to the figures in the documents, books and accounting records.
28
INVESTOR RELATIONS CONTACTS
Adriano Donati (IRO)
Tel +39 051 507 7063
Giancarlo Lana
Tel +39 011 66 57 642
Eleonora Roncuzzi
Tel +39 051 507 7063
Laura Marrone
Tel +39 051 507 2183
Giuseppe Giuliani
Tel +39 051 507 7218
Carlo Latini
Tel +39 051 507 6333
Silvia Tonioli
Tel +39 051 507 2371
investor.relations@unipol.it
investor.relations@unipolsai.it
29