FY17 CONSOLIDATED RESULTS UNIPOL AND UNIPOLSAI Bologna, 23 March - PowerPoint PPT Presentation

FY17 CONSOLIDATED RESULTS UNIPOL AND UNIPOLSAI Bologna, 23 March 2018

2 PART 1 PART 2 PART 3 Consolidated Insurance Banking Business results Business • Non-Life • Life PART 4 PART 5 PART 6 Investments Dividend proposal Solvency PART 7 Appendix

PART 1 CONSOLIDATED RESULTS

CONSOLIDATED RESULTS 4 CONSOLIDATED RESULTS € m UNIPOL UNIPOLSAI FY17 a FY17 a FY16 FY17 FY16 FY17 normalized normalized Consolidated pre-tax result 706 -179 904 Consolidated pre-tax result 681 760 873 Non-Life 471 687 687 Non-Life 365 501 593 Life 379 328 328 Life 357 286 307 Banking 7 -987 16 Holding and other -150 -207 -127 Other -41 -27 -27 Consolidated net result 535 -169 655 Consolidated net result 527 537 649 Group net result 330 -346 450 Group net result 497 504 617 a Figures restated excluding the impact of the restructuring of the Group banking sector

PART 2 NON-LIFE INSURANCE BUSINESS

NON-LIFE INSURANCE BUSINESS 6 DIRECT PREMIUM INCOME € m UNIPOL UNIPOLSAI LFL D 7% 7% 7,809 7,867 +0.7% 9% 9% 7,355 +1.9% -0.1% 7,218 -1.9% 4,169 4,252 14% 15% 4,023 4,083 -1.5% -2,5% 53% 55% 17% 14% +3.9% 3,698 3,558 +6.3% +3.1% 3,332 3,135 MV MV FY16 FY17 FY16 FY17 Accident and Health Accident and Health Property Property MV Non-MV MV Non-MV General TPL General TPL Other Other Premiums by company FY16 FY17 UnipolSai SpA 6,960 6,901 UniSalute a 337 371 Linear a 150 172 Arca Assicurazioni b 104 110 Other companies 258 312 a 9M17 under the direct control of Unipol SpA. 4Q17 under the direct control of UnipolSai SpA.. b On 8 November 2017, Unipol, BPER and BPS renewed in advance their strategic bancassurance partnership in Life (Arca Vita) and Non-Life (Arca Assicurazioni) sectors. The agreement will have a 5-year term (from 1 Jan. 2018)

NON-LIFE INSURANCE BUSINESS 7 NON-LIFE COMBINED RATIO NET OF REINSURANCE UNIPOL UNIPOLSAI large & natcat claims large & natcat claims up by 1.7 pp up by 1.8 pp 97.2% 96.5% 96.4% 95.6% 28.1% Expense Ratio 28.5% 27.4% Expense Ratio 27.5% 69.2% Loss Ratio 68.0% 69.0% Loss Ratio 68.1% FY16 FY17 FY16 FY17 Combined Ratio Combined Ratio 95.0% 95.1% 95.7% 95.9% direct business direct business Combined ratio net of reinsurance: operating expenses/earned premiums after reinsurance+claims charges/earned premiums after reinsurance

NON-LIFE INSURANCE BUSINESS 8 UNIPOLSAI S.P.A. – MV TPL TECHNICAL INDICATORS DIRECT BUSINESS UNIPOLSAI S.p.A. MV TPL Combined Ratio FY16 FY17 Other MV TPL indicators Var. vs FY16 Direct Business 99.9% 97.7% Total portfolio -1.0% Expense ratio a 22.7% 22.7% retail -1.1% commissions/premiums 14.0% 13.6% fleets +0.4% other operating Portfolio average premium -2.1% 8.8% 9.1% expenses/premiums No. of claims reported -3.6% Loss ratio b (incl. OTI) 77.2% 75.1% (followed-up passive claims) Frequency -0.16 p.p. No. of black boxes 3.5 million (37% of the portfolio) a Operating expenses / written premiums from direct business (before reinsurance) b Claims charges / earned premiums from direct business (before reinsurance) Operating figures

NON-LIFE INSURANCE BUSINESS 9 OTHER INSURANCE COMPANIES € m UNISALUTE LINEAR FY16 FY17 FY16 FY17 Premium income 337 371 Premium income 150 172 Accident & Health 336 370 MV 135 155 Other 1 1 Other 15 18 CoR direct business 85.8% 87.5% CoR direct business 102.4% 99.0% Expense ratio 11.2% 11.4% Expense ratio 24.6% 21.6% Loss ratio (incl. OTI) 74.5% 76.2% Loss ratio (incl. OTI) 77.8% 77.4% IAS net result 41 43 IAS net result 5 6 ARCA ASSICURAZIONI FY16 FY17 Premium income 104 110 MV 34 33 Other 70 77 CoR direct business 64.5% 63.3% Expense ratio 29.4% 30.4% Loss ratio (incl. OTI) 35.1% 32.9% IAS net result 28 30

PART 2 LIFE INSURANCE BUSINESS

LIFE INSURANCE BUSINESS 11 DIRECT INCOME € m UNIPOL UNIPOLSAI 7% 8% -36.8% -29.7% 14% 16% 6,997 5,279 19% 60% 14% 62% 3,713 4,424 FY16 FY17 FY16 FY17 Traditional Traditional Unit linked Unit linked Pension funds Pension funds Capitalization Capitalization Income by company FY16 FY17 Income by company FY16 FY17 UnipolSai (group) 5,279 3,713 UnipolSai S.p.A. 3,042 2,892 Popolare Vita + Lawr. Life a Arca Vita + AVI 1,718 711 2,130 706 Unipol 6,997 4,424 Other companies 107 115 UnipolSai 5,279 3,713 a On 29 June 2017, the BoD of UnipolSai approved the termination of the agreement with Banco BPM and the exercising of the put option on its stake in Popolare Vita

12 LIFE INSURANCE BUSINESS SEGREGATED ACCOUNTS AND MINIMUM GUARANTEED YIELDS UNIPOL UNIPOLSAI 3.2% 3.3% FY16 FY16 1.8% 1.6% 1.6% 1.5% 3.2% 3.2% FY17 FY17 1.7% 1.5% 1.7% 1.5% average segregated accounts yield average segregated accounts yield average minimum guaranteed yield average minimum guaranteed yield Technical Reserves a FY16 FY17 Technical Reserves a FY16 FY17 Min. guar. yield Min. guar. yield 0%-1% 35% 41% 0%-1% 31% 35% 1%-2% 38% 34% 1%-2% 38% 36% 2%-3% 19% 18% 2%-3% 22% 22% 3%-4% 3%-4% 8% 7% 9% 7% a Class 1 and class 5 technical reserves Operating figures

PART 3 BANKING BUSINESS

14 BANKING BUSINESS KPIs € m Direct deposits Indirect deposits Net loans a o/w UnipolReC b +14% -2.2% -7.8% 554 12,008 50,611 49,482 8,579 FY17 10,535 7,908 FY16 FY17 FY16 FY17 FY16 FY17 normalized Loan Loss Provisions (LLPs) FY16 FY17 Gross operating income Net result 348 345 LLPs Unipol Banca 44 967 LLPs Unipol 30 105 203 216 LLPs Finitalia 6 6 145 129 6 Total LLPs 80 1,078 -747 FY16 FY17 normalized FY16 FY17 Total NPEs coverage ratio 45.7% 71.1% interest income non-interest income Unipol CET1 ratio 31.5% Unipol Banca CET1 ratio 15.2% The banking business is comprised of Unipol Banca, its subsidiaries and UnipolSai Investimenti SGR – Operating figures a FY17 net of loans to the parent company b Proforma figures. Spin-off 1 st February 2018

BANKING BUSINESS 15 FOCUS ON NON-PERFORMING EXPOSURES OF THE BANKING SECTOR € m o/w UnipolRec a Unipol Banca pre-split FY16 FY17 FY17 proforma net gross coverage net gross coverage net gross coverage loans loans ratio loans loans ratio loans loans ratio Bad loans ( Sofferenze ) 1,127 2,651 57% 598 3,025 80% 554 2,906 81% Unlikely to pay 767 958 20% 435 726 40% Past due 145 151 3% 75 88 14% Total NPEs 2,040 3,760 46% 1,109 3,839 71% 554 2,906 81% The banking business is comprised of Unipol Banca, its subsidiaries and UnipolSai Investimenti SGR – Operating figures Including provisions made by Unipol S.p.A. a Spin-off 1 st February 2018

PART 4 INVESTMENTS

INVESTMENTS 17 ASSET ALLOCATION UNIPOL UNIPOLSAI Total investments € 61.4 bn 2.9% 1.2% Total investments € 51.9 bn 3.4% 1.4% 4.6% 2.4% 7.8% Bonds Bonds 6.8% Real Estate Real Estate Cash Cash Equity and funds Equity and funds Other Other 84.5% 85.1% Breakdown of bond portfolio Breakdown of bond portfolio Italian govies Italian govies 29.1% 30.3% Non-Italian govies Non-Italian govies Corporate Corporate 59.0% 59.5% 11.8% 10.2% Total Govies Total Govies 70.9 % 69.7 % Operating figures

18 INVESTMENTS FINANCIAL INVESTMENT YIELDS UNIPOL UNIPOLSAI FY17 FY17 Non-Life Life Total Non-Life Life Total € m Yield% € m Yield% € m Yield% € m Yield% € m Yield% € m Yield% Coupons and Coupons and 442 3.3% 1,321 3.4% 1,766 3.3% 423 3.4% 1,119 3.5% 1,542 3.4% dividends dividends Realized and Realized and unrealized 147 1.1% 44 0.1% 193 0.4% unrealized 150 1.2% 52 0.2% 201 0.5% gains/losses gains/losses Total 590 4.4% 1,365 3.5% 1,959 3.7% Total 572 4.6% 1,170 3.6% 1,742 3.9% Figures net of the Atlante Fund write-down amounting to € 62 m

INVESTMENTS 19 REAL ESTATE UNIPOL – Tot. portfolio € 4.1 bn Development of RE portfolio Breakdown by cluster Breakdown by sector € m 6% 5% 7% Core 9% FY16 4,355 Non-Life Core instrum. 42% 12% Real Estate investments +85 Value Added 28% Other 61% Trading Life purchases +48 Land and Development 30% a sales -198 depreciations -74 Breakdown by use Breakdown by area -22 write-downs b 1% Offices other -52 1% 7% 5% Milan 3% 5% 9% Hotel Other FY17 4,143 38% 11% Residential Bologna 13% 48% Land Florence 11% Other RE investm. Breakdown by ownership Rome 15% Condos and ind. 16% Turin 17% Health centres Non-domestic Commercial UnipolSai 97% Unipol S.p.A. 3% a No. 126 deeds as at 31 December 2017. b Including exchange variation and operations on RE funds and associated SPV Operating figures

PART 5 DIVIDEND PROPOSAL

DIVIDEND PROPOSAL 21 2017 DIVIDEND PROPOSAL € m UNIPOL FY16 FY17 Statutory Statutory Total Total accounting Pay-out DPS ( € ) accounting Pay-out DPS ( € ) dividends dividends result result 160 80% 128 0.18 213 60% 129 0.18 UNIPOLSAI FY16 FY17 Statutory Statutory Total Total accounting Pay-out DPS ( € ) accounting Pay-out DPS ( € ) dividends dividends result result 458 77% 353 0.125 577 71% 409 0.145

PART 6 SOLVENCY

23 SOLVENCY SOLVENCY – UNIPOL (consolidated) € bn ECONOMIC CAPITAL STANDARD FORMULA USP 1.69x 1.52x 4.2 4.7 7.1 7.1 2.9 2.4 Own Funds SCR Excess Own Funds SCR Excess Figures net of dividend distribution proposal