STATUTORY FINANCIAL STATEMENTS 2023

Improving the future

of businesses, our partners and people

REVO Insurance S.p.A.

Registered office: Viale dell'Agricoltura 7, 37135 Verona Operational headquarters: Via Monte Rosa 91, 20149 Milan Via Cesarea 12, 16121 Genoa

Tax code/VAT No. and Verona Companies Register No. 05850710962 An insurance company authorised to carry on insurance business by ISVAP Order No. 2610 of 3 June 2008. Listed in Section I of the Register of Insurance and Reinsurance Companies kept by IVASS, at No. 1.00167; Parent Company of the REVO Insurance Group, listed in the IVASS Register of Groups at No. 059

www.revoinsurance.com

2 TABLE OF CONTENTS

Corporate officers and Directors 5
General information7
Corporate information8
Report on Operations10
Market scenario 10
Industry regulations 12
Main corporate events 13
General performance 14
Evolution of the insurance portfolio and the sales network16
Claims17
Acquisition expenses and general expenses 20
Foreign business 21
Reinsurance policy 21
Main new products launched on the market22
Investment policy guidelines and profitability achieved23
Remuneration policies and information on personnel 24
Summary data for 2023 27
Solvency II – Solvency margin 28
Insurance risk management objectives and policy 28
Ongoing disputes 31
Capital and financial transactions with parent companies, associates, affiliates and other related parties 32
Other significant events during the year 32
Main significant events after year-end 32
Business outlook 33
Treasury shares held and changes in the holding 33
Relations with public authorities and other entities 33
Report on corporate governance and ownership structure pursuant to Article 123 and Legislative Decree No. 58 of 24
February 1998 34
Proposals to the Shareholders' Meeting 35
Statement of financial position and income statement37

Statement of financial position 37
Income statement50
Values for the previous year51
Notes to the financial statements59

General section60
Part A – Valuation criteria61
Assets 61
Liabilities 62
Income statement 64
Part B – Information on the statement of financial position and the income statement66
Assets 66

Intangible assets66
Investments66
Reinsurer's share of technical provisions67
Receivables67
Other assets69
Liabilities 70
Shareholders' equity 70
Subordinated liabilities 71
Technical provisions71
Provision for risks and charges 73
Deposits received from reinsurers73
Payables and other liabilities73
Accrued expenses and deferred income74
Assets and liabilities relating to Group companies and other investee companies 74
Guarantees, commitments and other memorandum accounts 74
Income statement 76
Technical account of the non-life classes76
Development of class technical items81
Non-technical account82
Part C - Other information85
Revenue or cost elements of exceptional size or impact85
Agreements not reflected in the statement of financial position85
Management and coordination activity 86
Information on personnel, directors and statutory auditors86
Fees for auditing and services other than auditing86
Statement of cash flows87

88
Annexes to the notes 89

Certification of the consolidated financial statements pursuant to Article 81-ter	of Consob
Regulation 11971/1999 193 127
Board of Statutory Auditors' Report128
External Auditor's Report129

Corporate officers and Directors

BOARD OF DIRECTORS

Chairman Antonia Boccadoro

Chief Executive Officer Alberto Minali

Directors Ezio Bassi Elena Biffi Claudio Giraldi Elena Pistone Ignazio Maria Rocco di Torrepadula

INTERNAL BOARD COMMITTEES

Internal Control and Risks Committee

Elena Biffi (Chairwoman) Claudio Giraldi Ignazio Maria Rocco di Torrepadula1

Appointments and Remuneration Committee

Ezio Bassi (Chairman) Elena Pistone Claudio Giraldi2

Environmental, Social and Governance (ESG) Committee

Antonia Boccadoro (Chairwoman) Alberto Minali Ezio Bassi Elena Pistone

Related Parties Committee

Elena Pistone (Chairwoman) Elena Biffi Ignazio Maria Rocco di Torrepadula

¹ Appointed as a member of the Internal Control and Risks Committee with effect from 1 July 2023 to replace Ezio Bassi, who ceased to be a member of the Committee on the same date.

² Appointed as a member of the Appointments and Remuneration Committee with effect from 1 July 2023 to replace Elena Biffi, who ceased to serve on the Committee on the same date.

BOARD OF STATUTORY AUDITORS

Chairman Saverio Ugolini3

Statutory Auditors Rosella Colleoni Alessandro Copparoni

Alternate Auditors Francesco Rossetti Paola Mazzucchelli

GENERAL MANAGER

Alberto Minali

******

EXTERNAL AUDITOR

KPMG S.p.A.

³ Appointed by the Shareholders' Meeting on 19 April 2023 following the resignation of Alfredo Michele Malguzzi.

General information

These financial statements have been prepared pursuant to ISVAP Regulation No. 22 of 4 April 2008, as amended and supplemented by IVASS Order No. 53 of 6 December 2016, and have been drafted in accordance with the applicable provisions of law, according to the basis of valuation and accounting principles referred to below and corresponding to the accounting records that reflect the transactions carried out by REVO Insurance S.p.A. (hereinafter also the "Company" or "REVO Insurance") as of 31 December 2023, supplemented by internal management documentation for any amounts not directly recognisable in the accounts.

The financial statements consist of the:

Statement of financial position;
Income statement;
Notes to the financial statements;
Statement of cash flows.

The notes to the financial statements, in turn, comprise the following parts:

A Basis of valuation;
B Information on the statement of financial position and the income statement;
C Other information.

In accordance with the provisions of Article 4 of the aforementioned ISVAP Regulation No. 22, the financial statements set out below are supplemented by the following annexes to the notes:

Annex 1Statement of financial position Non-life operations
Annex 3Table showing the breakdown of the net result for the year between the non-life and life classes
Annex 4 Assets Changes during the year in intangible assets (Item B) and land and buildings (Item C.I)
Annex 5Assets Changes during the year in investments in Group companies and other investee companies: shares and holdings (Item C.II.1), bonds (Item C.II.2) and loans (Item C.II.3)
Annex 6Assets Table containing information on investee companies
Annex 7Assets Statement of changes in investments in Group companies and other investee companies: shares and holdings
Annex 8Assets Breakdown by use of other financial investments: shares and holdings in companies, units of mutual funds, bonds and other fixed-income securities, units in mutual investments and miscellaneous financial investments (Items C.III.1, 2, 3, 5, 7)
Annex 9Assets Changes during the year in other long-term financial investments: shares and holdings, units of mutual funds, bonds and other fixed-income securities, units in mutual investments and miscellaneous financial investments (Items C.III.1, 2, 3, 5, 7)
Annex 13 Liabilities Changes during the year in components of the premium reserve (Item C.I.1) and the claims
- reserve (Item C.I.2) of the non-life classes
Annex 15 Liabilities Changes during the year in provisions for risks and charges (Item E) and the employee severance indemnity (Item G.VII)
Annex 16 Detailed statement of assets and liabilities relating to Group companies and other investee companies
Annex 17 Details of Classes I, II, III and IV of "guarantees, commitments and other memorandum accounts"
Annex 19 Summary information on the technical account of the non-life classes
Annex 21 Investment income (Items II.2 and III.3)
Annex 23 Capital and financial expenses (Items II.9 and III.5)
Annex 25 Non-life insurance Summary statement of technical accounts by individual class Italian portfolio
Annex 26 Summary schedule of the technical account summarising all the non-life classes Italian portfolio

Annex 27 Relations with Group companies and other investee companies
Annex 31 Summary schedule of premiums written for direct business
Annex 32 Schedule of expenses relating to personnel, directors and statutory auditors

Pursuant to Legislative Decree No. 209/2005, the following documents are also appended to the financial statements:

the Directors' Report on Operations;
the Board of Statutory Auditors' Report;
Certification of the financial statements pursuant to Article 81-ter of Consob Regulation 11971/1999 193;
the External Auditor's Report.

Corporate information

REVO Insurance S.p.A. was created by the reverse merger between Elba Assicurazioni S.p.A. and the Parent Company, REVO S.p.A., in November 2022.

The Company operates exclusively in non-life business in Italy and abroad under FPS4 in the following Areas of Activity5, as defined by Article 2, paragraph 3, of the Private Insurance Code, Decree-Law No. 209 of 7 September 2005: 1. Accident, 2. Health, 3. Land vehicles (other than railway rolling stock), 4. Railway rolling stock, 5. Aviation hull, 6. Marine hull (sea, lake and river and canal vessels), 7. Goods in transit, 8. Fire and natural forces, 9. Other damage to property, 11. Aviation liability, 12. Marine liability (sea, lake and river and canal vessels), 13. General liability, 14. Credit, 15. Suretyship, 16. Miscellaneous financial loss, 17. Legal expenses, and 18. Assistance.

REVO Insurance has its registered office at Viale dell'Agricoltura, 7, Verona and, in the capacity of Parent Company, is part of the REVO Insurance Group, listed in the register of insurance groups under No. 059. The Group includes, as a Subsidiary, Revo Underwriting S.r.l., an insurance brokerage company operating since July 2022.

At 31 December 2023, the Company held a portfolio of treasury shares (totalling 850,700 shares) amounting to 3.46% of its share capital and consisting exclusively of ordinary shares, and is a company listed on the Euronext STAR Milan market, to which the rules of the Euronext Milan Issuers' Regulations apply.

The financial statements have been audited by the External Auditor, KPMG S.p.A., which is engaged to audit the accounts for the financial years 2017-2025.

Amounts are shown in thousands of euro, unless expressly specified.

⁴ It should be noted that since 4 July 2022 the Company has been authorised to operate under the freedom to provide services regime.

⁵ It should be noted that authorisation for the health, land vehicles, railway rolling stock, aviation hull, marine hull, goods in transit, aviation liability, marine liability, credit and financial loss classes was obtained from the Supervisory Body on 29 March 2022 and that, on the same date, the Company was authorised to extend its reinsurance activities to the accident, fire and natural forces, other damage to property and general liability classes. Authorisation to exercise the legal expenses class was obtained by the Company on 18 May 2023.

Report on Operations

9 TABLE OF CONTENTS

Report on Operations

Market scenario

Macroeconomic scenario

The effects of the profound change in the macroeconomic and financial landscape observed during 2022 continued throughout 2023. In particular, the year was characterised by the continuation of the monetary tightening cycle by central banks and renewed tensions in the geopolitical context.

Moving in parallel but reversing the trend of the previous year, growth and inflation moderated in the main economic areas of the planet in the first half of 2023, albeit at different rates and intensities. What made the macroeconomic picture more uncertain was the sequence of banking crises that occurred in the spring. In particular, US regional banks, which make up a significant proportion of the US financial system, suffered losses and outflows that led some of them to fail. At the same time, in Europe, Credit Suisse experienced a liquidity crisis that prompted the Swiss authorities to organise an emergency bailout by UBS. The abrupt cycle of rising rates, triggered in the spring of last year after years of zero or negative rates, has challenged some of the more fragile components of the international financial system.

In the second half of the year, inflation continued to ease, on the one hand with much less intense effects on the real economy than feared, but on the other, more rapidly than expected, thereby creating the conditions for imminent monetary policy easing in Europe and North America. The disinflation process was boosted by external factors, primarily the stability of energy prices, primarily oil and natural gas, but also by the moderation of wage increases and the decline in global demand for manufactured goods.

The slowdown in GDP growth was well below expectations in the US, where the risk of recession receded, while in the euro area, the economy was sluggish (only in Germany did the data show a contraction in economic activity). The resistance of the advanced economies to higher rates is due to a number of structural and cyclical factors, such as labour shortages, which reduced the elasticity of employment to GDP, the stronger balance sheets of households, businesses and banks compared with previous periods of monetary tightening, and the lower incidence of floating-rate borrowing.

Against this backdrop, the central banks continued their restrictive monetary policy, raising their respective key rates in order to balance the objective of moderating inflation with that of financial stability.

The Federal Reserve increased its key rate four times over the year, from 4.5% at the start of the year to 5.5% in July, putting an end to the hikes in the face of easing inflation. The European Central Bank, further back in the tightening cycle, raised the deposit rate by a total of 200 basis points, from 2% at the beginning of the year to 4% at the end of September.

Growth dynamics followed a better-than-expected trajectory in the first part of the year, with a more gradual slowdown across all of the developed economies. The figure for the third quarter compared with the previous year was +2.9% for the United States, with an overall projection of +2.4% for 2023.

While the euro area continued to grow at a healthy pace in the first half of the year, also compared with a solid 3.5% growth in 2022, it suffered in the second half of the year from the slowing of the German engine, declining in the third quarter and thus projecting a 0.5% increase at the end of the year. Italian growth developed in line with that of the euro area, although the overall result for 2023 is expected to be around +0.7%.

Inflation retreated across the board, although the various measures were applied at different speeds: in Europe, the headline measure (comprising volatile components such as food and energy) fell sharply over the year, from 9.2% at the end of 2022 to 2.4% in November; core inflation came down more slowly, mainly driven by the services sector. In Italy, the harmonised price index fell even more sharply, from 12.3% at the end of 2022 to 0.6% at the end of November.

Insurance scenario

According to industry studies6, at the end of the third quarter of 2023, total premiums in the non-life segment of insurance companies and Italian direct insurance portfolios amounted to €31.2 billion, up by 7,5% compared with the end of the same period in 2022, when written premiums totalled €29.0 billion and the sector recorded growth of 6.3%. The third quarter 2023 was the eleventh consecutive positive quarterly change, raising premium income above €30 billion for the first time at the end of the third quarter of the year.

The increase in total non-life premiums was due, in particular, to the continued growth of the non-motor sector, the Company's core market, which recorded an increase of 8%.

This growth benefited from the positive contribution of all the main insurance classes: health and credit insurance were the best performing sectors, with growth of 13.3% and 14.4%, respectively, while general liability rose by 7.3%. The increase in the accident class was more modest at 4.3%, while the other damage to property and fire classes increased by 7.7% and 9.1% respectively.

The ANIA data for the first half of the year relating to the suretyship business showed an increase in premiums written of 12.4% compared with the same period of 2022, with an absolute value of €396.0 million in the first six months of the year. One of the reasons for this result is the start of work financed by the National Recovery and Resilience Plan (NRRP), as well as the agreements included in the SACE Reinsurance Convention to support companies. The volume of new business premiums written during the half-year came to €221.6 million, up 14.8% on the previous period. The figure is driven by increased underwriting of contract-linked guarantees, the premiums for which rose by 32.5 million (+17.4%), and procurement-related guarantees (+10.3% of total premiums). Premiums written for guarantees related to contributions also increased (+18.9%), as did premiums related to payment guarantees (+10.3%) and premiums related to customs transactions (+2.2%). By contrast, guarantees related to waste management (-1.2%) and tax refunds (-2.9% of total premiums) declined slightly.

The 2022 IVASS annual report, presented to the market on 19 June 2023, also shows a consolidation of premium income growth in other non-life classes (+8.2%), the most representative sectors being health and property, which account for 39.6% of non-life business, up 8.5%. In the health segment, premiums for the health class (+12.6% compared with 2021) grew, due to the increased use of private insurance, particularly in the corporate sector. In the property sector, the increase in premium income in the "other damage to property" (+8.3%) and "fire and natural forces" (+6.2%) classes reflects the increase in demand for asset protection. In Fire and natural element cover, the retail and corporate segments are growing, while in other damage to property, the corporate segment is expanding, particularly for hail cover. Growth in general thirdparty liability strengthened (+8.2%, accounting for 10.5% of total non-life business), mainly due to business related to Superbonus 110% returns and the recovery of the corporate sector. Legal expenses and Assistance grew (+6.8%), the latter mainly due to the recovery in the tourism sector after the pandemic, as did credit (+25.1%) and suretyship (+7.7%), respectively due to the recovery in economic activity and the high number of tenders, including within the scope of the NRRP.

With regard to the distribution channel, the main form of brokerage of the entire non-life segment in terms of market share (69.9%) is still the agency network, which is particularly successful in the suretyship, general liability, motor liability, marine hull and other damage to property classes. The broker channel holds a 10.6% share. The classes in which brokers' intermediation is significant are aviation hull, marine hull, land vehicles and goods in transit.

The most significant trends in the insurance sector, identified by the main consulting firms and by the companies themselves, include:

the evolution of products (including the growth of parametric policies) and distribution methods (with a strongly increasing trend towards digital policies), with the aim of faster market entry and claims settlement;

⁶Monthly report issued by the industry association ANIA

the use of artificial intelligence (AI) and improved data analysis capabilities on the part of insurance companies, which can, for example, speed up underwriting risk assessments or increase the use of chatbots for claims support and risk mitigation;
increasing attention, including in the regulatory sphere, to ESG issues and the reporting of sustainability aspects associated with products and business practices, with a particular focus on environmental and climate changerelated issues (climate change insurance);
management of a risk directly at the time that consumers purchase a good or service (instant insurance);
automation of processes and decisions through cloud application development platforms in order to better respond to market and customer needs (platform orchestrator).

Industry regulations

This section describes some of the new legislation that affected the insurance sector during the year:

European and national cybersecurity legislation Regulation (EU) 2022/2554, or "DORA" (Official Journal of 27 December 2022) and Directive 2556/2022 on digital operational resilience for the financial sector;
IVASS Letter to the Market of 3 January 2023 Consolidated financial statements Notice on the transition to IFRS 17 referred to in Annex 4 of Reg. No. 7/2007, amended by Order No. 121/2022;
EIOPA Supervisory Statement of 19 January 2023 the Statement addresses the impact of inflation on insurance and reinsurance companies from a prudential perspective. Published to support Solvency II year-end calculations;
IVASS Order No. 127 of 14 February 2023 for amendments and additions to IVASS Reg. No. 52 of 30 August 2022 concerning the implementation of provisions on the temporary suspension of capital losses for non-durable securities introduced by Decree-Law No. 73 of 21 June 2022;
Legislative Decree No. 36 of 31 March 2023 Public Contracts Code and Decree-Law 29 May 2023, No. 57 Urgent measures for territorial authorities as well as to ensure timely implementation of the National Recovery and Resilience Plan and for the energy sector, Amendments to the Public Contracts Code;
IVASS Order No. 131 of 10 May 2023 Provision laying down amendments and additions on sustainable finance to the following IVASS Regulations:
- No. 24/2016 laying down provisions on investments and assets covering technical provisions;
- No. 38/2018 laying down provisions on the corporate governance system;
- No. 40/2018 laying down provisions on insurance and reinsurance distribution;
- No. 45/2020 laying down provisions on insurance product governance and control requirements.
Order No. 132 of 7 June 2023 Amendments and additions to IVASS Regulation No. 18 of 15 March 2016 concerning the application rules for determining the technical provisions pursuant to Article 36-bis of the CAP resulting from the national implementation of the EIOPA guidelines on the financial requirements of the Solvency II regime (Pillar 1 requirements);
Order No. 134 of 25 July 2023, amending and supplementing IVASS Regulation No. 40 of 2 August 2018, containing provisions on insurance and reinsurance distribution. In particular, the amendments aim to optimise the management of the Single Register of Insurance and Reinsurance Intermediaries (RUI), in view the high number of entities registered therein, by providing for the use of modern operator identification tools with respect to certified electronic mail, as required by the Private Insurance Code and in line with the provisions of Article 109-bis, paragraph 1-ter of the Code;
Order No. 138 of 25 September 2023 amending IVASS Regulation No. 52 of 30 August 2022 concerning the implementation of provisions on the temporary suspension of capital losses for short-term securities introduced by Decree-Law No. 73 of 21 June 2022 on urgent measures concerning tax simplifications and the issue of employment permits, state treasury and other financial and social provisions converted, with amendments, by Law No. 122 of 4 August 2022;
Commission Regulation (EU) 2023/2822 of 19 December 2023 amending Regulation (EU) 2023/1803 as regards International Accounting Standard (IAS) 1, in order to specify how an undertaking should determine, in its

statement of financial position, debt and other liabilities with an uncertain settlement date. Under these amendments, the debt or other liabilities must be classified as current (with an effective or potential settlement date within one year) or non-current.

Main corporate events

A number of corporate events took place in 2023, the most significant of which are outlined below:

On 16 March, the Board of Directors approved the 2022 annual financial statements and at the same meeting acknowledged the resignation of Mr Alfredo Malguzzi from his position as Chairman of the Board of Statutory Auditors, with effect from the end of the Shareholders' Meeting called for 19 April 2023 to approve the annual financial statements and called upon, inter alia, to take action to replenish the Board of Statutory Auditors and appoint its chairperson;
The Shareholders' Meeting held on 19 April proceeded, inter alia, to: (i) approve the 2022 annual financial statements; (ii) replenish the Board of Statutory Auditors by appointing Mr Saverio Ugolini as chairman of the Board in office until the approval of the 2024 financial statements; and (iii) amend the Articles of Association, in extraordinary session, to extend the insurance and reinsurance business to class 17 - Legal expenses;
On 15 May, Revo Insurance S.p.A. made a partial voluntary public tender offer for treasury shares, for a maximum number of 700,000 ordinary shares in the Company, amounting to 2.84% of its share capital, at a price of €9.25 per share and for a maximum value of €6,475,000. The operation was completed on 16 June with the purchase of 699,885 own shares tendered via the public tender offer. At 30 June 2023, REVO Insurance, following transactions in its treasury shares, held a total of 850,700 treasury shares amounting to 3.46% of the share capital;
On 18 May, the Supervisory Authority authorised REVO Insurance to operate in Class 17 Legal expenses. Consequently, the new Articles of Association, as amended by the Shareholders' Meeting on 19 April, entered into force;
On 15 June, the Board of Directors approved a change to the composition of the Internal Control and Risks Committee, with effect from 1 July, with the appointment of Director Ignazio Rocco di Torrepadula to replace Ezio Bassi, and to the Appointments and Remuneration Committee, with the appointment of Director Claudio Giraldi to replace Elena Biffi;
On 22 June, REVO Insurance obtained an "EE (strong)" rating from Standard Ethics, an independent international agency that assesses the sustainability of companies;
On 27 June, S&P Global Ratings upgraded REVO's outlook from stable to positive, confirming its BBB+ rating. The ratings agency appreciated the Company's risk diversification, its continued leadership in Suretyship, and as its capital strength;
On 8 August, the Board of Directors approved the consolidated half-year financial report as at 30 June 2023, together with the External Auditor's report. The report was filed and made available to the public on 11 August;
On 12 September, REVO announced the opening of its new operational headquarters in Genoa, dedicated exclusively to the maritime insurance segment. This responds to the need to consolidate its physical and direct presence in one of the most important Italian marketplaces in the sector;
As part of its commitment to environmental and social sustainability, during the month of September REVO organised initiatives to upgrade some common areas, with the involvement of all Company employees;
On 22 September, REVO opened its new Milan headquarters in the iconic complex at Via Monte Rosa 91. The new offices, which are in addition to the Verona headquarters and the Genoa operational headquarters, accommodate more than 200 employees on an area of approximately 3,000 square metres;
On 15 December 2023, REVO published, pursuant to Article 2.6.2 of the Regulation for Markets Organised and Managed by Borsa Italiana, its annual calendar of corporate events for the 2024 financial year;
On 19 December 2023, REVO acquired 33% of the share capital of the insurance brokerage company, MedInsure s.r.l., with registered office at Via G. Frua 22, Milan, which is 77% owned by MRC S.r.l.;

• On the same date, the Company also released a €1,000,000 escrow account, set up as collateral following the acquisition of Elba Assicurazioni S.p.A.

General performance

Operating performance was characterised by the Company's implementation of the strategic plan presented to the financial community on 31 March 2022, which provides for the further development of the existing insurance business and the broadening of its offer with the launch of new Specialty and Parametric products.

The financial statements for the year ended 31 December 2023 show a pre-tax profit of €7,260,000. After taxes of €1,430,000, profit amounted to €5,830,000.

The calculation of current IRES and IRAP taxes benefited by €2,863,000 from the tax relief provided by the New Patent Box (hereinafter "NPB") linked to OverX, a software application that is particularly innovative and potentially worthy of legal protection.

The result for 2023 was characterised by an increase in net earned premiums of €42,431,000 (+76.6% in percentage terms). Claims for the year increased by €24,160,000, maintaining a very good overall ratio of claims to premiums (39.0% compared with 25.3% in 2022) despite the extreme catastrophic events during the year, which were adequately offset by reinsurance cover. Operating expenses increased less than proportionally in relation to premiums, rising 22.0% compared with the previous year.

Financial income, which came in at €5,559,000, contributed positively to the result for the year.

It should be recalled that the 2022 result had been strongly influenced on the one hand by one-off costs of €2,864,000 incurred, inter alia, for the listing on Euronext STAR Milan, the merger and the implementation of the new IFRS 17 accounting standard, and on the other by the performance of the financial markets, which had resulted, following a general increase in interest rates, in capital losses on the valuation of investments of €9,224,000.

The summary income statement of REVO Insurance S.p.A. is provided below:

(amounts in thousands of euro)	31.12.2023	31.12.2022
Net earned premiums	97,841	55,410
Share of profit from investments transferred from non-technical account	1,998	0
Other technical income	2,495	866
Claims-related expenses	38,170	14,010
Change in equalisation reserve	246	92
Reversals and profit sharing	-26	58
Operating expenses	39,753	32,592
Other technical expenses	8,770	2,128
Result of the technical account	15,421	7,396
Investment income	6,844	4,077
Capital and financial expenses	1,285	10,307
Share of profit from investments transferred to technical account	-1,998	0
Other income	451	54
Other expenses	11,915	10,752
Extraordinary income	829	1,126
Extraordinary expenses	1,087	682
Result before tax	7,260	-9,089
Taxes for the year	1,430	-1,805
RESULT FOR THE PERIOD	5,830	-7,284

At year-end, adjusted operating profit amounted to €19,260,000. This figure has undergone the following adjustments compared with the operating result in that it:

includes investment income and expenses, exclusively related to accrued coupons and issue and trading differences (and therefore, recoveries and value adjustments and gains/losses on disposals are excluded, as they are non-recurring);
excludes the depreciation of tangible assets over the period;
excludes costs relating to the settlement of the severance indemnity provision, which are typically non-recurring;
excludes extraordinary costs incurred for one-off projects, such as, for example, the voluntary public tender offer and the application to IVASS for authorisation to operate in Class 17 - legal expenses and extraordinary tax assistance;
excludes costs for financial debts.

The table below summarises the components of the adjusted operating result as at 31 December 2023:

Adjusted operating profit	31.12.2023	31.12.2022
Net premiums	97,841	55,410
Equalisation/profit-sharing reserve	-220	-150
Claims-related expenses	-38,170	-14,010
Operating expenses	-39,753	-32,592
Other technical expenses	-8,770	-2,128
Other technical income	2,495	866
Technical result	13,423	7,396
Cost of financial debt	70	0
Investment income/expenses	4,325	2,928
Listing and other one-off costs	1,288	2,864
Depreciation of tangible assets	124	134
Agency liquidation	30	29
Adjusted operating profit	19,260	13,350

The total value of the technical balance, without considering the share of the profit of the investments transferred from the non-technical account, amounted to €13,423,000, up 81.5% compared with 2022. The technical performance of the insurance portfolio during the year was characterised by:

a significant increase in gross premiums written (+64.6% compared with 31 December 2022), due to:
- extension of the business lines;
- new product launches on the market;
- the overall expansion of the distribution network, which at 31 December 2023 consisted of 111 multi-firm agents (116 at 31 December 2022) and 67 brokers ( 53 at 31 December 2022).111 multi-firm agents (A total reinsurance net loss ratio of 39.0% compared with 25.3% in 2022, with an increase in claims-related expenses of €24,160,000, including approximately €2.8 million related to the catastrophic events (tornadoes and severe storms) that hit Italy in July and August alone, and €900,000 related to the earthquake in Emilia-Romagna.

Without the effect of these weather events, the net loss ratio would have been 35.2%.

At 31 December 2023, management increased the claims reserve, setting aside €2,916,000 more in INBR compared with 31 December 2022, of which €1,289,000 was ceded to reinsurance. Total IBNR at 31 December 2023 amounted to €4,556,000 (€1,640,000 at 31 December 2022). The net loss ratio of the Suretyship class confirmed the extremely positive trend, although it was only slightly higher, at 15.1%.

The reinsurance technical balance of €11,006,000 (€9,572,000 at 31 December 2022), following the amendment and streamlining of reinsurance agreements and the activation of non-proportional and optional cover to better protect the technical result and the soundness of the Company;
Acquisition costs, in the commissions and other acquisition expenses component, amounted to €59,289,000, up by €41,319, at 31 December 2023, which is consistent with the strong growth in premiums recorded in the period. Overall, acquisition costs amounted to 27.4% of written premiums (up from 31.4% in 2022). The decrease mainly

relates to other acquisition expenses, which decreased as a percentage of gross written premiums from 8.1% in 2022 to 5.7% in 2023, reflecting payroll costs in particular. Meanwhile, acquisition commissions accounted for 21.8% of gross written premiums (23.4% in the previous year), down slightly, mainly due to the new mix of premium portfolio and distribution channels.

As a result of these dynamics, the COR (combined operating ratio) gross of reinsurance was 87.0% (82.6% at 31 December 2022) and net of reinsurance stood at 86.1% (86.7% at 31 December 2022).

The adjusted COR was 86.2% gross of reinsurance (82.6% at 31 December 2022) and 84.6% net of reinsurance (86.7% at 31 December 2022).

Excluding the effect of the catastrophic weather events in northern Italy in July and August and the earthquake in Emilia-Romagna, the gross COR would have been 77.7%, and 80.0% net of reinsurance, while the gross adjusted COR would have been 76.9%, and 78.5% net of reinsurance.

In terms of value, the total impact of these events on the result for the year was €5,938,000, taking reinstatement claims and premiums into account.

The financial result, which was positive at €5,559,000 (compared with a loss of €6,230,000 at 31 December 2022), benefited from the decrease of €9,011,000 in value adjustments on investments. These adjustments in 2022 were attributable to the sharp rise in reference interest rates, mainly due to expectations of restrictions by the central banks and the context of a general rise in inflation and uncertainty over military escalation in Ukraine.

Added to this effect is the presence of reversals of value adjustments of €1,939,000 and the increase of €1,367,000 in interest coupons and discounts in 2023.

Evolution of the insurance portfolio and the sales network

Premiums written, gross of reinsurance and net of current year cancellations during the 2023 financial year totalled €216,239,000 in 2023, a significant increase over the €131,388,000 recorded at 31 December 2022 (up 64.6%). Direct and indirect premium income is reported in the following table by class:

	Gross premiums	31.12.2023	%	31.12.2022	%
1	Accident	1,916	0.9%	973	0.7%
2	Health	4311	2.0%	15	0.0%
3	Land vehicles	2,732	1.3%	-	0.0%
4	Railway rolling stock	1,789	0.8%	-	0.0%
5	Aviation hull	5,652	2.6%	261	0.2%
6	Marine hull (sea, lake and river and canal vessels)	10,318	4.8%	2,205	1.7%
7	Goods in transit	4,936	2.3%	2,008	1.5%
8	Fire and natural forces	28,010	13.0%	14,730	11.2%
9	Other damage to property	34,018	15.7%	15,918	12.1%
11	Aviation liability	935	0.4%	99	0.1%
12	Marine liability (sea, lake and river and canal vessels)	359	0.2%	70	0.1%
13	General liability	31,846	14.7%	20,977	16.0%
14	Credit	507	0.2%	289	0.2%
15	Suretyship	85,176	39.4%	73,229	55.7%
16	Financial loss	3,161	1.5%	602	0.5%
17	Legal expenses	558	0.3%	-	0.0%
18	Assistance	13	0.0%	10	0.0%
	Total	216,239	100.0%	131,388 100.0%

In this regard, it should be noted that during the period there was a significant increase not only in Suretyship (+16,3% compared with 2022), which remained the main business class, but also in other classes historically covered by the Company (other damage to property, general liability and fire), mainly due to the impetus generated by the expansion of the product range and the distribution network.

At the end of the year, the insurance portfolio was more diversified, with the Suretyship class accounting for 39.4% of total premiums (down from 55.7% at 31 December 2022), due to greater exposure to other classes, the proportion of which increased from 44.3% at 31 December 2022 to 60.6% at 31 December 2023.

To complete the description of premium income for the year, a breakdown of premium income by geographical area is shown below:

Geographical area	31.12.2023	%	31.12.2022	%
Northern Italy	148,665	69%	91,811	70%
Central Italy	34,318	16%	25,118	19%
Southern Italy and Islands	28,867	13%	14,082	11%
Foreign under FPS and Indirect	4,389	2%	377	0%
Total	216,239	100%	131,388	100%

In 2023, the Company continued its efforts to strengthen and optimise, where necessary, measures to increase the number of agency mandates and the number of non-exclusive agency agreements with brokers, in order to boost overall production and the productivity of individual intermediaries.

At 31 December 2023, the sales network consisted of 111 multi-firm agents (116 at 31 December 2022) and 67 brokers (53 at 31 December 2022).

During 2023, as part of a process aimed at strengthening its commercial structure, the Company embarked on a process of harmonisation of the agency network that entailed the opening of 10 new agency mandates, 15 new non-exclusive cooperation agreements with brokers, and the closure of 1 non-exclusive cooperation agreement and 15 agency mandates.

The distribution of agencies/brokers and the average premiums written at 31 December 2023 by geographical area in Italy are as follows:

Geographical area	No. of agencies/brokers by geographical area	Overall premiums	Average premiums per Agency/Broker 2023	Average premiums per Agency/Broker 2022
North	89	148,665	1,670	1,208
Centre	48	34,318	715	534
South and Islands	41	28,867	704	306
Total	178	211,850	1,190	775

Claims

Claims-related expenses for direct and indirect business at 31 December 2023 amounted, respectively, to €81,296,000 gross of reinsurance (€20,395,000 at 31 December 2022) and €38,170,000 net of reinsurance (€14,010,000 at 31 December 2022).

The following tables show the breakdown by item, separately gross and net of reinsurance:

Gross claims-related expenses	31.12.2023	31.12.2022	Change
Amounts paid	67,680	16,170	51,510
Change in recoveries	-36,572	-7,530	- 29,042
Change in claims reserve	50,188	11,755	38,433
Total	81,296	20,395	60,901
Net claims-related expenses	31.12.2023	31.12.2022	Change
Amounts paid	51,644	9,947	41,697
Change in recoveries	-33,471	-3,786	-29,685
Change in claims reserve	19,997	7,849	12,148
Total	38,170	14,010	24,160

The overall evolution of net claims-related expenses at 31 December 2023, measured in terms of net loss ratio was, albeit increasing, appropriate for the development of production, standing at 39.0%, compared with 25.3% in 2022. In absolute terms, net claims-related expenses increased by €24,160,000, mainly due to Class 8-Fire (€7,443,000), Class 9-Other damage to property (€5,895,000) and Class 15-Suretyship (€1,513,000). In contrast, Class 13-General liability decreased by €1,792,000. With regard to the new classes for which authorisation was obtained during 2022, increases

were recorded of €6,287,000 for Class 6-Marine hull, €2,026,000 for Class 7-Goods in transit and €2,019,000 for Class 2-Health.

Some particularly significant events occurred during 2023 which, thanks to the cession to reinsurance, had a more limited impact on the result for the year. In particular, the following should be noted:

The flooding in Emilia-Romagna, which had an effect of approximately €3.5 million gross and €900,000 net of reinsurance;
The weather events in northern Italy in July and August, which had a total impact of approximately €14.1 million gross and €2.8 million net of reinsurance;

In the Marine LoB, specifically in Class 6-Marine hull, four large claims were made totalling €6,036,000 and which, net of reinsurance, had an impact of €1,885,000 on the income statement.

The increase in Class 9-Other damage to property was due to the development of business underwritten in the Agro LoB. The following tables provide details of claims-related expenses, gross and net of reinsurance respectively, by class:

	Gross claims-related expenses	31.12.2023	31.12.2022	Change
1	Accident	425	224	201
2	Health	3,337	0	3,337
3	Land vehicles	584	0	584
4	Railway rolling stock	24	0	24
5	Aviation hull	2,180	0	2,180
6	Marine hull (sea, lake and river and canal vessels)	13,479	891	12,588
7	Goods in transit	5,964	511	5,453
8	Fire and natural forces	23,553	1,568	21,985
9	Other damage to property	18,145	5,127	13,018
11	Aviation liability	3	0	3
12	Marine liability (sea, lake and river and canal vessels)	110	0	110
13	General liability	3,503	4,280	-777
14	Credit	16	0	16
15	Suretyship	9,932	7,795	2,137
16	Financial loss	33	0	33
18	Assistance	8	0	8
	Total	81,296	20,395	60,901

	Net claims-related expenses	31.12.2023	31.12.2022	Change
1	Accident	287	190	97
2	Health	2,019	0	2,019
3	Land vehicles	361	0	361
4	Railway rolling stock	15	0	15
5	Aviation hull	183	0	183
6	Marine hull (sea, lake and river and canal vessels)	6,827	540	6,287
7	Goods in transit	2,328	302	2,026
8	Fire and natural forces	8,286	843	7,443
9	Other damage to property	10,552	4,657	5,895
11	Aviation liability	1	0	1
12	Marine liability (sea, lake and river and canal vessels)	65	0	65
13	General liability	1,420	3,212	1,792
14	Credit	16	0	16
15	Suretyship	5,779	4,266	1,513
16	Financial loss	26	0	26
18	Assistance	5	0	5

The total claims ratio, gross of reinsurance, was 43.1%, compared with 20.9% at 31 December 2022. The claims ratio net of reinsurance was 39.0%, compared with 25.3% for the same period in 2022.

The increase in net claims-related expenses was mainly due to the increase of €41,697,000 in net claims paid. The change in the net claims reserve had an effect of €12,148,000, partially offset by the change in recoveries, which resulted in a gain of €29,685,000.

The claims reserve was strengthened by setting aside a higher IBNR, net of reinsurance, of €1,628,000, the result of a normal dynamic of increased overall business.

Suretyship class

The technical performance in 2023, due to the Company's particular focus on customer retention and risk assessment during the underwriting phase, once again proved particularly profitable, although only slightly up on the previous year. The ratio, gross of reinsurance, of claims paid and reserved, net of recoveries, to earned premiums, was 13.9% (12.6% at 31 December 2022), and 15.1% net of reinsurance, compared with 13.4% at 31 December 2022.

Net claims for the period increased by €1,514,000 compared with 31 December 2022, due to the increase in claims paid and reserved in the current year.

Other classes

In the other non-life insurance classes, the ratio, net of reinsurance, of claims paid and reserved net of recoveries (including an IBNR provision after cession of €3,075,000, up from €1,628,000 at 31 December 2022) to earned premiums was 54.3% overall (41.4% at 31 December 2022). Before reinsurance, the ratio was 60.9%, compared with 35.3% in 2022.

The following section provides an analysis of the claims performance of the main classes:

Other damage to property: in terms of value, net claims for the period increased by €5,895,000 compared with the previous year. The ratio of claims to net premiums was 51.9%, compared with 36.6% in 2022. IBNR provisions totalling €1,276,000 had been made at 31 December 2023, €516,000 more than at 31 December 2022. The increase in Class 9 claims mainly reflects the development of the business underwritten in the Agro LoB;
General liability: as specified above, this line of business improved in 2023, contributing a gain of €1,792,000 compared with 2022. The gross loss ratio was 11.7% (38.3% in 2022) and 11.0% net of reinsurance (52.6% in 2022). The marked improvement in the class is due to the more than proportional increase in production in the period, compared with new claims reported and/or paid during the period and the positive run-off of the reserves set aside in 2022. IBNR provisions, net of reinsurance, totalled €1,170,000, an increase of €482,000 compared with 31 December 2022;
Fire: during the year there was an increase of €7,443,000 in net claims-related expenses, mainly attributable to claims in the current year, and in particular to the flooding in Emilia-Romagna already mentioned, which had a negative effect of around €900,000, and to weather events in northern Italy in July and August, which had a net effect of €2,802,000. The net loss ratio was 60.6%, compared with 24.6% in 2022, while before reinsurance the percentage increased to 88.0%, compared with 25.3% in 2022;
Marine hull: an increase of €6,287,000 was recorded in 2023, mainly attributable to reserved current-year claims. The increase in claims is linked both to a significant increase in the business underwritten and to four major losses that had a substantial impact on the performance of this line of €6,036,000, gross of reinsurance (€1,885,000 net of reinsurance).

Settlement speed

With regard to direct Italian business, the claims settlement speed for the main classes is shown below, net of claims eliminated without follow-up, separately for the current and previous years:

	Current year	Previous years
Accident	71.0%	51.9%
2 - Health	83.1%	95.9%

6 - Marine hull (sea, lake and river and canal vessels)	15.4%	73.5%
Goods in transit	23.8%	60.2%
Fire	4.7%	8.7%
Other damage to property	83.6%	31.0%
General liability	3.9%	11.6%

The claims settlement speed for the Suretyship class is not reported since, given the specific nature of the business, it is not considered to be a representative indicator. Settlement takes place almost simultaneously with a request for enforcement of the policy after the appropriate checks have been made, except in the case of legal challenges.

Acquisition expenses and general expenses

Total operating expenses at 31 December 2023 came to €78,828,000 gross of reinsurance and €39,753,000 net of reinsurance, an increase compared with the same period in 2022 and in line with the increase in business volume.

A detailed summary is provided below:

Operating expenses	31.12.2023	31.12.2022	Change
a. Acquisition commissions	47,054	30,705	16,349
b. Other acquisition expenses	12,235	10,614	1,621
d. Collection commissions	195	60	135
e. Other administrative expenses	19,344	17,410	1,934
f. (-) Commissions and share of profits received from reinsurers	-39,075	-26,197	-12,878
Operating expenses	39,753	32,592	7,161

Acquisition commissions of €47,054,000 (including €6,332,000 for incentives to the network). The increase in commissions is in line with the development of the business, with an impact on gross premiums of 21.8% (23.4% at 31 December 2022). The reduction was due to the different premium portfolio mix and greater exposure to new distribution channels, mainly brokers;
Other acquisition expenses of €12,235,000 (including €8,710,000 related to personnel costs in the technical and commercial area). Other acquisition expenses as a percentage of gross written premiums increased from 8.1% in 2022 to 5.7% at 31 December 2023, due in particular to the lower percentage of personnel costs;
Collection commissions of €195,000 relating to payroll expenses incurred in managing the collection of insurance contracts;
Other administrative expenses of €19,344,000 mainly refer to the following costs: payroll costs in the Administrative, ICT and Services Area of €7,890,000, travel and entertainment expenses of €693,000, miscellaneous consulting and EDP services expenses of €6,582,000, office expenses of €1,124,000, remuneration of the Board of Directors, Board of Statutory Auditors, Supervisory Board and External Auditor of €1,345,000, depreciation of tangible assets of €124,000 and miscellaneous expenses of €1,586,000.

In 2023, operating expenses as an overall percentage of gross written premiums was 36.5%, and 34.2% net of reinsurance (in the previous year these percentages were respectively 44.7% and 42.0%), mainly due to the significant growth in premiums generated and the significant costs incurred in 2022 (e.g. listing costs, merger and implementation of the new IFRS 17 accounting standard).

The overall impact of acquisition expenses, including other acquisition expenses relating to payroll costs in the technical and commercial areas and directly attributable overheads, amounted to 27.4% of written premiums (an improvement on the 31.4% recorded in 2022). The decrease mainly relates to other acquisition expenses, which decreased as a percentage of gross written premiums from 8.1% in 2022 to 5.7% in 2023, mainly due to the higher incidence of payroll costs.

The percentage of commissions and other net acquisition expenses, taking into account fees received from reinsurers and premiums ceded, was 17.4%, compared with 19.5% in 2022. The decrease was mainly due to the different portfolio mix ceded and the associated reinsurance.

Other administrative expenses as a percentage of gross written premiums, mainly attributable to the cost of other personnel, general expenses not directly attributable and depreciation of tangible assets, amounted to 9.0% (13.3% in 2022).

Fees received from reinsurers as a percentage of premiums ceded was 39.1%, compared with 48.7% in 2022. The decrease was mainly due to the different mix of optional and treaty reinsurance. In 2023, the percentage of reinsurance treaties with a lower commission ratio than the Suretyship class (Marine, Multiline and Cyber) also increased.

Foreign business

During the year, the Company conducted insurance business under the freedom to provide services regime in the territory of the Member States of the European Community, including States in the European Economic Area, following the authorisation received from IVASS on 4 July 2022.

The table below sets out the most substantial operating amounts relating to foreign business, separated into direct and indirect business:

Foreign business	Direct 31.12.2023	Indirect 31.12.2023
Premiums	15,131	3,064
Change in premium reserve	-2,782	- 720
Claims-related expenses	-8,389	- 1,679
Other technical items	-184	-
Operating expenses	-3,926	- 873
Total	-150	- 208

Reinsurance policy

The Company's reinsurance policy during the 2023 financial year sought to optimise its overall risk profile and protect itself from unexpected/unforeseen events such as "large" claims, including claims of a catastrophic nature.

Treaties continue to be underwritten with leading reinsurance companies, substantially reducing the Group's counterparty risk. The minimum rating of the companies included in the panel was above or equal to Standard & Poors' A- rating and A.M. Best's A- rating.

Quota and excess of loss treaties were agreed for Suretyship policies (as in previous years) and quota and excess of loss treaties were concluded for other non-life policies, (except for Assistance, Cyber and Fine Art policies, for which quota share treaties were signed). For LoB Engineering, Agro and D&O policies it was decided to retain pure excess of loss coverage.

The following table sets out the breakdown of the technical reinsurance balance compared with the previous year:

Technical reinsurance account	31.12.2023	31.12.2022	Change
Premiums ceded	-99,954	-53,823	-46,131
Change in ceded premium reserve	8,900	11,835	-2,935
Reinsurers' share of claims	16,036	6,223	9,813
Reinsurers' share of change in recoveries	-3,101	-3,744	643
Reinsurers' share of change in claims reserve	30,191	3,906	26,285
Commissions received from reinsurers	39,075	26,197	12,878
Technical income and expenses ceded	-2,153	-166	-1,987
TECHNICAL BALANCE OF REINSURANCE	-11,006	-9,572	-1,434

Premiums ceded increased as a result of both new production and the new proportional, non-proportional and optional treaties signed in line with new business.

Ceded claims for the period also increased by a total of €36,741,000, due to the cessions of the classes associated with quota share treaties and to catastrophe claims related to the weather events discussed above, ceded under excess of loss treaties.

Main new products launched on the market

The REVO product range expanded further during 2023:

Property: new cover to protect manufacturing companies and their property assets against the risk of fire and other damage to property, theft and robbery, catastrophic events and indirect damage, and income protection. In the catastrophic event insurance, activating the earthquake cover provides parametric cover for initial expenses, with prompt automatic compensation provided if an earthquake in excess of a given parameter occurs. This cover is a first in the market;
Marine: new insurance solutions for owners of leisure craft, whether sail or motor, providing damage cover against the risks of navigation and during wet or dry docking while not in use. For boats flying the Italian flag, assistance at sea, provided through the Main Office, open 24 hours a day, 7 days a week, can also be activated;
Travel agency and tour operator liability and insolvency: new insurance policies distributed through brokers specialising in travel – that enables travel agencies to protect themselves against third party claims for damages and to protect their customers in the event that the travel agency becomes insolvent or bankrupt;
Legal expenses: the new product, developed following authorisation to operate in this class from the Supervisory Authority, is designed for companies or professionals and covers legal and expert expenses incurred by policyholders in asserting their rights in and out of court, for risks related to their activity, circulation and suspension of their licence;
Cyber risk: the new insurance solution dedicated to protecting companies and professional firms from direct damage and third parties due to cyber attacks, protects the customer's assets in the event of claims for compensation for data breaches, security, privacy law and breach notification law, as well as business interruption, extortion and e-crime. Dedicated incident management services are also available.
Flight delay: the cover provides protection in the event of a flight delay at the destination of more than three hours. It is a parametric policy that provides immediate compensation to the customer if the event occurs, with a view to providing refreshment as a result of the inconvenience caused by the delay.
Honey production: a parametric policy has been created for Piedmont beekeepers, to compensate them for damage caused by the loss of honey yields due to drops in temperature at certain stages of the flowering of the acacia plant;
Alfalfa: a parametric policy has been created for alfalfa producers and processors to compensate farmers if the irrigation requirements of the alfalfa field are not met due to particularly dry weather conditions;
Wine grape plant diseases: this product is for entrepreneurs who produce wine grapes and who, in the event of particularly adverse weather conditions, experience reduced yields due to a season predisposed to the development of phytopathologies such as oidium, peronospora and botrytis. Again, this is a parametric policy based on a biological indicator;
Olive fly: this product is for customers who produce olives for oil and who, due to certain weather conditions, are affected by an increase in olive fly infestations that damage the harvest, reducing yields. In this case also, a parametric policy based on an infestation indicator was developed.

OverX

Revo Insurance S.p.A. has further developed the new proprietary technological platform, OverX. The tool, which is fundamental for structuring and creating new insurance products, greatly simplifies underwriting and distribution processes, partly thanks to automated reading of broker communications, the use of external databases and the structuring of information required for risk assessment and the preparation of insurance contracts.

OverX was developed natively in the cloud environment, using cutting-edge technologies such as artificial intelligence, micro-services, APIs (application programming interfaces) and paradigms of privacy and security by design. It is based on a simple and efficient data structure, which facilitates the collection of information by brokers and stands out for being highly innovative in terms of flexibility and efficiency in product personalisation.

During 2023, in addition to the implementations necessary for the development of the above-mentioned products, various new features were enhanced and made available, in particular:

the OverX Claims Module for automated and facilitated insurance claims management;
management of multiple currencies and foreign taxes;
the Document Composition tool for customisation of the insurance contract with specific Company clauses;
tailor-made solutions for accounting for risks not attributable to existing insurance products;
management and accounting of appendices in simplified mode.

Investment policy guidelines and profitability achieved

In 2023, the Company's investment policy was based on prudent criteria. The guidelines also take account of the framework resolution referred to in Article 8 of IVASS Regulation No. 24/2016, updated by the Board of Directors on 28 March 2023. It should be noted that updates to the framework resolution are designed to ensure greater flexibility in investments in securities and greater diversification of portfolio instruments.

In the first half of the year in particular, Italian and foreign government securities with high credit ratings were purchased. These included securities from Germany, the Netherlands, France and Spain, as well as from supranational issuers. To a lesser extent, highly-rated corporate bonds were also purchased in the period.

In the second half of the year, the diversification process continued with the purchase of core government bonds and highly rated corporate bonds (covered bonds). During volatility on the spread, the domestic government bond component was tactically increased on medium-term maturities. Trading in the equity segment is purely of a tactical nature.

The asset portfolio has a particularly low duration of approximately two years and an excellent level of liquidity. All portfolio positions are denominated in euro.

The Company's prudent investment policy and the quality of the issuers serves to protect it from market and liquidity risk, despite the current fragile economic environment. The ongoing increased diversification in terms of asset class and issuers is intended to make the portfolio more resistant to market fluctuations and increased volatility in domestic government bond spreads.

Total investments at 31 December 2023 amounted to €217,110,000 (€185,440,000 at 31 December 2022), including €213,626,000 in bonds and other listed fixed-rate securities, in addition to €2,775,000 relating to units in mutual bond funds. Shares and holdings in companies included a €556,000 equity investment in Mangrovia Blockchain Solutions S.r.l., which is not subject to significant influence on the part of REVO and is therefore not considered an associate, a €150,000 equity investment in the subsidiary REVO Underwriting S.r.l. and a €3,000 holding in MedInsure.

Total cash and cash equivalents amounted to €5,456,000 at 31 December 2023 (€4,445,000 at 31 December 2022).

The following table sets out a breakdown of investments compared with the previous year:

Investments by type	31.12.2023	31.12.2022
Shares and holdings	709	706
Foreign corporate bonds	28,494	22,579
Italian corporate bonds	6,590	4,924
Italian government bonds	84,163	98,226
Foreign state/government bonds	94,379	56,385
Mutual fund units	2,775	2,620
Total investments (excluding cash and cash equivalents)	217,110	185,440
Cash at bank and in hand	5,456	4,445
Total investments (including cash and cash equivalents)	222,566	189,885

Remuneration policies and information on personnel

At 31 December 2023, the internal structure consisted of 189 employees, as well as four external contractors (at 31 December 2022, the figure was 151 plus six external contractors).

The substantial increase compared with 2022 (+38 employees) is mainly due to the recruitment of new personnel to develop the Company's new business lines, which were authorised by IVASS in late March 2022, and the strengthening of the Operations structures, with the simultaneous consolidation of staff structures and key functions. The internal structure by area of expertise breaks down as follows:

	31.12.2023	31.12.2022
CEO/GM	1	1
Specialty Insurance Solutions	98	98
Operations	41	19
Finance Planning and Control	16	11
Legal & Corporate Affairs	11	10
Risk Management	4	3
Human Resources and Organisation – General/Centralised Services	7	3
Communications & ESG	3	-
Internal Audit	3	1
Actuarial	2	1
Compliance	2	2
Staff	1	2
Total	189	151

Personnel training continued during 2003 with the aim of promoting professional and managerial development. In particular, a training programme was established for Parent Company managers, who took part in a 40-hour course entitled "Leadership training: the strategic role of the manager". Managers are one of the cornerstones of an organisation. Their daily work is essential for interpreting and passing on the Company's values.

December also saw the launch of the development programme, which will run throughout 2024 under the title "Taking care of value: growth and development of skills in REVO", which is designed to focus attention on the importance that REVO attaches to personnel growth pathways.

In April 2023, the Company opened its new operational headquarters in Milan, at Via Monte Rosa 91, with collaborative workspaces and a strong sustainability footprint.

REVO also decided to open an additional operational headquarters in the city of Genoa, a decision dictated by the growing need for proximity to business, particularly the Marine business.

During the year two changes were made to REVO's organisation, affecting the Claims and the Parametric teams. In particular:

as part of the development process of the OverX platform, in the second half of 2023 OverX Claims, the new claims management system, was developed. At REVO, technology and process simplification are tools at the service of expertise. In this context, it was decided to integrate the Claims team into the Operations Department in order to create the synergies necessary for further streamlining of the settlement process, thereby enabling the best possible use of the skills of the Claims team;
during 2023, the work of the Parametric team enabled this kind of innovative insurance solution to be widely recognised in the market and to begin to generate ever-increasing interest from intermediaries. In order to consolidate and strengthen the positioning of Parametric products, it was decided to incorporate the Parametric team into the Underwriting Department with the aim of strengthening distribution synergies and favouring the design of integrated insurance solutions, for a service that is increasingly accurate and attuned to the needs of SMEs and professionals.

Total labour costs, including the reimbursement of expenses (employees and temporary staff on project-based contracts) at 31 December 2023 came to €18,843,000 (€15,746,000 at 31 December 2022). The change compared with 2022 mainly reflects the increase in total remuneration due to the recruitment of a further 38 employees since 31 December 2022.

Remuneration policies

At the Shareholders' Meeting of 19 April 2023, the Company approved a remuneration policy in accordance with the provisions of the legislation applicable to listed companies and in compliance with the specific provisions in this regard set out in IVASS Regulation No. 38.

The management remuneration system comprises the following main elements:

an annual incentive system in formalised MbO form for all corporate personnel, except for the key functions, which aims to increase involvement towards the achievement of annual company targets;
a long-term incentive plan (2022-2024 Performance Share Plan) for the Chief Executive Officer/General Manager, key personnel and additional beneficiaries;
a welfare plan for all corporate personnel.

In particular, the remuneration system for top management, in addition to the Chief Executive Officer and employees of the Company who perform managerial roles or functions, consists of a fixed and a variable component, the latter with an annual component and a deferred long-term incentive plan, in line with best practice at national and international level.

MbO system

The annual variable component consists of the "MbO" system, which provides for the payment of a cash bonus, subject to the achievement of predetermined annual objectives - both quantitative (operating result and premium income) and qualitative (on a personalised basis) - that are commensurate with the specific role and activities performed by the individual beneficiary.

2022-2024 Performance Share Plan

On 4 April 2022, the Company's Shareholders' Meeting also approved a performance share plan called the "2022-2024 Performance Share Plan" (hereinafter, the "Plan"), the rules of which were drawn up and approved by the Board of Directors on 26 May 2022.

The Plan is a valid tool for retaining and incentivising individuals who play a key role in achieving the Company's objectives, and for aligning the interests of key company personnel with those of other stakeholders, with a view to long-term sustainable development.

Code of Ethics

Employees and contractors are required to scrupulously observe the rules of conduct established in the Code of Ethics updated by resolution of the Board of Directors of 13 July 2023.

This document establishes the specific rules and modes of conduct which, in line with principles of a commitment to fairness and consistency of approach, must be observed by employees and contract staff in their various relationships with policyholders, agents, suppliers, service providers and any other company or entity, whether public or private, that comes into contact with the Company.

No cases of non-compliance in this regard were reported or discovered during 2023.

Summary data for 2023

Following on from the above illustration, the summary figures are presented below, in thousands of euro, for the year ended 31 December 2023 compared with the previous year:

Assets	31.12.2023	31.12.2022
Intangible assets	86,428	89,093
Equity interests	709	706
Investments	216,401	184,734
Reinsurers' share of technical provisions	107,306	68,216
Receivables	109,287	72,963
Other assets	6,136	4,936
Accruals and deferrals	2,780	2,669
TOTAL ASSETS	529,047	423,317
Shareholders' equity and liabilities	31.12.2023	31.12.2022
Shareholders' equity	209,170	209,897
Technical provisions	244,405	166,652
Provisions for risks and charges	2,571	2,923
Deposits received from reinsurers	2,668	1,600
Payables and other liabilities	70,233	42,245
Accruals and deferrals	-	-
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	529,047	423,317

Income statement	31.12.2023	31.12.2022
Net earned premiums	97,841	55,410
Share of profit from investments transferred from non-technical account	1,998	0

Other technical income	2,495	866
Claims-related expenses	38,170	14,011
Change in equalisation reserve	246	92
Reversals and profit-sharing	-26	58
Operating expenses	39,753	32,592
Other technical expenses	8,770	2,128
Result of the technical account	15,421	7,395
Investment income	6,844	4,077
Capital and financial expenses	1,285	10,307
Share of profit from investments transferred to technical account	-1,998	0
Other income	451	54
Other expenses	11,915	10,752
Extraordinary income	829	1,126
Extraordinary expenses	1,087	682
Result before tax	7,260	-9,089
Taxes for the year	1,430	-1,805
RESULT FOR THE PERIOD	5,830	-7,284

Solvency II – Solvency margin

Information on the Solvency II solvency margin, calculated on the basis of the information available today, compared with the annual 2022 data, is provided below:

Information on the solvency margin - Solvency II	31.12.2023	31.12.2022
Solvency Capital Requirement	72,422	52,897
Eligible Own Funds to meet the SCR (Tier 1)	153,470	142,703
Solvency Ratio	211.9%	269.8%
Minimum capital requirement	20,767	14,652
MCR Coverage Ratio	739.0%	974.0%

The results obtained show the high level of Solvency II coverage available to the Company.

The Solvency II Ratio was 211.9% at 31 December 2023, down compared with 31 December 2022 due to the growth in business volumes affecting non-life premiums and reserves, partially offset by an increase in own funds due to the result for the period and expected future earnings.

It should be noted that the Solvency II Ratio does not take into account the organisational provision of €8,150,000 to cover start-up expenses (set aside in response to the authorisation to operate in the new insurance classes), the value of which has to be excluded from the calculation of own funds for the first three financial years.

Treasury shares are also not included in own funds. The amount of treasury shares increased in the first half of 2023 as a result of the public tender offer. For details, see the section on treasury shares held and changes in the holding in the Report on Operations.

The solvency position will be the subject of the relevant disclosure to the market and to the Supervisory Authority within the deadlines set by the legislation in force in the context of publication of the Solvency and Financial Condition Report (SFCR).

Insurance risk management objectives and policy

REVO's risk management is designed to comply with regulatory provisions, including constant monitoring according to the provisions of IVASS Regulation No. 24/20216. The Company has defined and implemented its risk assumption, measurement and management policies based on an integrated view of its assets and liabilities in accordance with European Solvency II rules.

With regard to liquidity, underwriting and counterparty risks, ordinary monitoring activities continue to be performed on an ongoing basis, in order to ensure the Company's ability to meet its commitments. Furthermore, with reference to the internal solvency objective referred to in Article 18 of IVASS Regulation No. 38/18, the current assessments do not highlight any critical issues that require specific action.

Again throughout 2023, the Company was required by the Supervisory Authority to monitor its solvency position on a monthly basis, pursuant to the communication dated 17 March 2020. The results of these monthly assessments showed a high and constant capital solvency level.

In the same period, REVO continued its organisational enhancement following the merger in November 2022 between Elba Assicurazioni S.p.A. and Revo S.p.A. The Risk Management function was strengthened with new personnel (sourced internally and externally) and a system of risk oversight tools was created that includes the new risk management policies, Risk Appetite Framework (RAF) and Own Risk and Solvency Assessment (ORSA), as well as a more structured and effective Risk Register.

The Risk Officer's report to the Board of Directors did not highlight any critical issues and noted that the control processes implemented demonstrate the Company's timely compliance with the reference provisions and regulations in order to safeguard and protect the Company's business.

Based on the risk mapping undertaken, the highest-intensity risk to which the Company is exposed is its underwriting risk.

In particular, the following risks should be noted:

Underwriting risks

Revo Insurance adopts a conservative approach to underwriting risk, in order to avoid taking on risk that could undermine the Company's solvency or constitute a serious obstacle to the achievement of its objectives.

The main techniques used by the Company to mitigate underwriting risk are:

underwriting techniques;
reinsurance techniques.

With regard to the assumption of risks in the Suretyship class, which is the Company's core business, policies are written following careful technical investigations to establish the nature and characteristics of the risks to be covered and soundness in terms of capital, income and cash flow, as well as the reliability, of the obligated entities, depending on the business they undertake to which the cover applies.

With regard to reinsurance techniques, specific treaties were entered into for each line of business.

Market risk

REVO has an asset portfolio consisting mainly of government and corporate bonds. Liquidity is managed to ensure that sufficient resources are always available for normal claims payment.

The Company's prudent policy in terms of investments and issuer quality serves to protect it from market risk and liquidity risk, even in the current economic environment.

All investments are denominated in euro and therefore no currency risk exists.

With regard to concentration risk, there is a significant percentage of investment in the Italian Republic (although this has been decreasing steadily since December 2022), amounting to 37.7% of REVO's total portfolio at 31 December 2023 (around 51.8% at 31 December 2022).

Credit risk

The Company is exposed to the risk associated with a deterioration in the creditworthiness of the market counterparties with which it operates and has business and insurance relationships. These exposures mainly derive from reinsurance and co-insurance business, cash deposits with banks and activities with insurance brokers and policyholders, in respect of which receivables are typically generated according to the recurring underwriting dynamics of insurance products, particularly as the end of each quarter approaches.

At the same time, in its investment activities, the Group is subject to the creditworthiness and default risk of the relevant issuers. In addition to the Italian government, any default on the part of issuers to which the Company has exposure could have a negative impact on its financial position, cash flows and income, as well as an effect on its Solvency II Ratio.

The default risk management system defined by the Company is assessed on the basis of the material risk factors related to the receivable, for which top management ensures its correct and timely application and oversees the consequent establishment of adequate processes for the analysis of receivables reaching maturity and the monitoring and recovery of overdue receivables from the main business counterparties (policyholders, intermediaries and reinsurance partners).

At least once a quarter, as part of its SCR recalculation activities, the Risk Management Function monitors changes in the risk profile and compliance with the risk appetite and risk tolerance limits defined in the Risk Appetite Framework.

In addition, the ratings of reinsurance counterparties are monitored every six months, as required by the Reinsurance Policy.

Liquidity risk

Liquidity risk is the risk of not being able to meet obligations to policyholders and other creditors due to the difficulty of converting investments into cash without suffering losses. This risk is monitored through specific stress scenarios based on short- and medium-term cash flow planning.

Operational risk

Operational risk is the risk of losses due to inefficiencies in human resources, processes and systems, including those used for distance selling, or to external events such as fraud or the actions of service providers. This definition includes legalrisk but not strategic or reputational risk.

In the procedures currently in place, operational risk is also quantified in the context of the solvency requirement through the standard formula.

In addition to this quantitative support, "residual" risk is measured, at least once a year, on the basis of the probability of occurrence of the negative event and the severity of its impact, the scale of which is determined using a qualitative and quantitative methodological approach that supports management in mapping risks in order to adequately identify the most exposed areas and to prioritise when implementing action/mitigation plans.

These assessments enable the Company to ascertain the consistency of the results with the Risk Appetite Framework (RAF), outlined by the Company in its risk appetite policy.

Compliance risk

Compliance risk is the risk of incurring legal or administrative penalties or suffering losses or reputational damage as a result of failure to comply with laws, regulations or orders of the Supervisory Authorities or self-regulation rules, such as statutes, codes of conduct or corporate governance codes.

The Compliance Risk Management System has been defined, in accordance with the provisions in force. Responsibility for the system lies with the Compliance Manager, who is supported in performing operational duties by the heads of the corporate functions.

The compliance mission and operating procedures are defined in the Company's Internal Control System Guidelines and operating activities are governed by a specific company procedure.

As part of his or her duties in accordance with the compliance process, the Compliance Manager constantly monitors and shares significant impact analyses with the relevant process manager. Where issues arise that could entail a risk of legal challenges and penalties, the Board of Directors becomes involved.

A report is produced each year describing all the ongoing and non-ongoing Compliance activities carried out during the year, as provided for in Regulation No. 38/18.

Reputational risk

Reputational risk (or image risk) is the risk of losses that the Company may suffer as a result of events that damage its reputation among the various types of stakeholders (policyholders, shareholders, counterparties, investors and Supervisory Authorities).

The Company manages reputational risk by means of adequate mitigation measures through appropriate organisational and control structures.

In this area, propriety and professionalism are of the utmost importance, particularly with regard to:

the level of awareness among senior management of the importance of the issue;
the promotion, at all corporate levels, of a culture of ethics and fair behaviour;
adequate management of relations with all stakeholders;
the suitability of the risk management and mitigation systems.

To this end, the Company has adopted a Code of Ethics in order to promote a culture of ethics and fair behaviour at all levels of the Company. As part of his or her duties in accordance with the compliance process, the Compliance Manager constantly monitors and shares significant impact analyses with the process manager.

Where issues arise that could entail significant reputational risks, the Board of Directors becomes involved.

A report is produced each year describing all the ongoing and non-ongoing Compliance activities carried out during the year, as provided for in Regulation No. 38/18.

Strategic risk

Strategic risk is defined as the current or prospective risk arising from a decline in profits or capital and the sustainability of the business model, including the risk of failing to generate an adequate return on capital based on the risk appetite

defined by the Company, resulting from changes in the operating environment or poor business decisions, inadequate implementation of decisions, incorrect management of group risk, or insufficient responsiveness to changes in the competitive environment.

As part of the ORSA, the Company verifies that the analysis of changes in earnings resulting from strategic planning and the adequacy of own funds held to cover the capital requirement, including in major stress scenarios, does not reveal any particular situations of concern.

Strategic risk management is based on the Company's ability to identify and measure this form of risk and to adopt management practices that enable its mitigation in accordance with the appetite defined by the Board of Directors in the Risk Appetite Framework.

Strategic risk is monitored by the CFO according to a qualitative-quantitative approach, taking into account any changes in the corporate and organisational structure, including through quarterly analysis of the performance of the main management KPIs compared with those established in the Strategic Plan, and verifying the adequacy of own funds held to cover the capital requirement.

Climate change risk

As part of the ORSA assessment, the Group, in accordance with what is indicated in the EIOPA Opinion, carried out qualitative-quantitative assessments relating to climate change and, specifically, in relation to the risk of transition and to physical risk. The analyzes of these risks are aimed at identifying the possible impacts caused by climate change on the assets and liabilities of the Group. During the quarterly monitoring activity, the Company checks the amount of assets that could be exposed to ESG risk.

Great attention is given to ESG issues, for which an ESG driven pricing project is underway. The Company, in product development, has identified the following emerging risks:

Climate Change Transition Risk: risk showed by the possible increase in compensation requests from companies operating in carbon-intensive sectors which could be negatively affected by the energy transition, in terms of getting worse of creditworthiness.This risk would be attributable to customers of the credit and surety lines linked to the carbon-intensive sectors. In order to supervise and limit this risk, income and asset analyzes are carried out on these customers taking into account ESG parameters;
Climate Change Physical Risk: collects all the risks deriving from the physical effects induced by climate change. The most impact could be involved these line of business property, engineering, fine-art, agro and parametric.

Ongoing disputes

With the exception of insurance claims and actions for recourse or debt collection, no litigation is pending. With regard to insurance disputes, it should be noted that in 2022, the Company received a payment order for approximately €250,000, relating to a counterfeit suretyship policy. As of 31 December 2023, the expert reports ordered by the judge upheld the arguments that the signatures on the surety policy were not authentic. For this reason, the company decided to release the portion that was set aside, on a prudential basis, in 2022.

Twenty complaints were received in 2023, one of which was settled, three were accepted, and 16 rejected. As a result of these outcomes, as of the date of preparation of this Report, there is only one complaint at the investigation phase. Internal Audit reports on these claims were issued and the relevant assessments were made by the Board of Statutory Auditors and the Board of Directors. In accordance with procedures in force, the Supervisory Authority was duly notified.

Capital and financial transactions with parent companies, associates, affiliates and other related parties

Subsidiaries and controlled entities

Pursuant to Article 2497 et seq. of the Italian Civil Code, REVO Insurance S.p.A. exercises powers of management and coordination over REVO Underwriting S.r.l.

At 31 December 2023, the following transactions existed between REVO Underwriting S.r.l. and REVO Insurance S.p.A.:

costs for seconded personnel of €44,000;
revenues from commission income of €2,038,000;
payables for insured sums collected of €576,000;
payables for seconded personnel of €72,000.

Associates, companies under joint control and other related parties

The Related Party Transactions Procedure (the "RPT Procedure"), approved by the Company's Board of Directors on 26 May 2022, following a positive opinion from the independent directors in office at that date, is designed to (i) regulate procedures for identifying related parties, defining procedures and timescales for preparing and updating the list of related parties and identifying the corporate functions competent to do so; (ii) establish rules for identifying transactions with related parties before they are entered into; (iii) regulate procedures for the conclusion of related party transactions by the Company, including through subsidiaries pursuant to Article 93 of the TUF or in any case companies subject to management and coordination; and (iv) establish procedures and timescales for the fulfilment of reporting obligations to the corporate bodies and to the market.

The Procedure is published in the "corporate-governance/corporate-documents/related party transactions" section of the REVO Insurance website (www.revoinsurance.com).

During the year, only one transaction with a related party was undertaken, with the counterparty being the subsidiary REVO Underwriting S.r.l. The transaction was for a modest amount and was by its nature exempt from the application of the Company's related party transactions procedure.

At 31 December 2023, no natural person or legal entity held, directly or indirectly, a number of shares such as to have a controlling interest in REVO Insurance S.p.A. Similarly, no material shareholder agreements that might result in de facto control were noted or disclosed to the Company pursuant to Article 122 of the TUF.

It follows that the Company is not subject to the management and coordination of any entity or company.

Other significant events during the year

No other significant events occurred during the year, other than those reported in the initial introductory section.

Main significant events after year-end

Following the analyses conducted, at its meeting on 8 February 2024, the Board of Directors resolved to commence the process of opening a secondary office in Spain. The implementation of the project was entrusted to Fernando Lara, a manager with proven experience who has already held senior roles in large international insurance groups present in Spain. The operation to establish the secondary office, which is subject to IVASS authorisations, will be completed by the end of 2024. In the meantime, REVO will activate functional safeguards to enable the rapid growth of the business following the authorisation process and continue its underwriting business in 2024 under the freedom to provide services.

No other significant events occurred after the end of the year.

Business outlook

As part of project development, REVO will continue to implement its business plan in accordance with the strategy outlined, aiming to further develop its existing business and to expand its offering with the consolidation of new business lines focused on specialty and parametric risks.

In this regard, the Board of Directors of REVO Insurance S.p.A., at its meeting of 8 February 2024, approved the 2024- 2027 rolling plan, which confirms the main areas of development of the project along the following strategic guidelines:

Strengthening relationships with intermediaries;
Market analysis to seek new distribution opportunities;
Increasing cross-selling between specialty lines and parametric products;
Further enhancement of the OverX platform and increased use;
Maintaining a strong capital position;
Continuation of ESG development projects.

In addition, at the said meeting, the Board of Directors resolved to begin the process of opening a secondary office in Spain. The specialty line market in Spain has recorded attractive growth rates in recent years, particularly in the market niches already covered by REVO in Italy. The aim of the "REVO Iberia" project is not only to exploit the commercial relations already in place with the large international brokers with which the Company operates in Italy, but to open its distribution model to local intermediaries, including smaller entities. At the same time, the project will make it possible to optimise the investments already made in the development of OverX and to identify potential development opportunities in the parametric field, benefiting from the expertise gained by the Italian team.

The business in Spain will initially focus on certain strategic lines, such as Financial Lines and Suretyship, a class in which the Company is a leader in Italy, with a progressive extension that aims to provide a complete offering to the Iberian market that is similar to its Italian offering.

This operation allows the Group to add another key strategic element for the development of REVO Insurance, pursuing an approach of greater business diversification at an international level.

Treasury shares held and changes in the holding

With regard to the information required by Article 2428, paragraph 3(3) and (4) of the Italian Civil Code, it should be noted that the Company:

as at 31 December 2023, it holds a total of 850,700 treasury shares, equal to 3.46% of the share capital, consisting solely of ordinary shares;
during the first half of the year, also following the partial voluntary public purchase offer for treasury shares, promoted on 15 May 2023, it purchased a total of 709,747 treasury shares, equal to 2.88% of the share capital, consisting solely of ordinary shares;
did not sell any treasury shares during the year.

The share buy-back programme implemented during 2023 was initiated pursuant to the resolution adopted by the Ordinary Shareholders' Meeting of 3 May 2023, with the aim of making REVO shares available for possible external growth transactions effected through an exchange of shares and for incentive plans reserved for the corporate personnel.

Relations with public authorities and other entities

Pursuant to the regulatory provisions on the transparency of relations with public authorities introduced by Law No. 124/2017, it should be noted that in 2023 REVO Insurance S.p.A. received payments of €113,000 relating to personnel training costs. The companies did not receive any further subsidies, contributions or economic benefits of any kind from public authorities or from other entities indicated in Article 1, paragraph 125 of the cited law, with the exception of the payment indicated above.

For the purposes of full disclosure, although these contributions are excluded from the transparency obligations established in the aforementioned legislation, it should be noted that the National Register of State Aid, publicly available in the section on transparency on the relevant website, publishes the aid measures and the relevant individual aid granted and recorded in the system by the granting authorities for the direct or indirect benefit of each of the Group companies.

Report on corporate governance and ownership structure pursuant to Article 123 and Legislative Decree No. 58 of 24 February 1998

The information required by Article 123-bis of Legislative Decree No. 58-bis of 24 February 1998 as amended is contained in the Report on Corporate Governance and Ownership Structure, approved by the Board of Directors and published jointly with the Report on Operations. The Report on Corporate Governance and Ownership Structure is available in the "Corporate Governance/Report on Corporate Governance and Ownership Structure" section of the Company website (www.revoinsurance.com),

Proposals to the Shareholders' Meeting

Dear Shareholders,

We trust that what we have outlined above provides a comprehensive picture of the management of corporate activities and the financial statements that we are presenting to you.

The management body is at your disposal for any further information in this regard.

We therefore invite you:

to approve the 2023 financial statements, consisting of the statement of financial position, income statement, statement of cash flows, notes to the financial statements and this Report on Operations;
to adopt a resolution to distribute the profit for the year, amounting to €5,830,299, as follows:

Allocation of profit for the year - amounts in euro
Profit for the year	5,830,299
o/w:
Dividend	1,996,620
Other reserves	3,833,679

The proposed dividend payable to each of the shares entitled to it (therefore excluding own shares) amounts to €0.084.

By approving and implementing our proposal, the Company's shareholders' equity will amount to a total of €207,174,178.

The following table (in euro units) sets out, separately for each item of shareholders' equity, the changes brought about by the proposed allocation of the loss for the year presented to shareholders:

SHAREHOLDERS' EQUITY	31.12.2023	Allocation of result for the year	Dividend distribution	Final amount
Share capital	6,680,000			6,680,000
Share premium reserve	170,000			170,000
Legal reserve	1,385,187			1,385,187
Other reserves	202,908,074	3,833,679		206,741,753
Retained earnings/Losses carried forward	-			-
Net result for the year	5,830,299	-3,833,679	-1,996,620	-
Negative reserve for own shares	-7,802,761			-7,802,761
Total	209,170,798	0	- 1,996,620	207,174,178

Dividends to be paid			1,996,620	1,996,620

Verona, 13 March 2024 REVO Insurance S.p.A.

Chief Executive Officer (Alberto Minali)

Statement of financial position and Income statement

36 TABLE OF CONTENTS | Notes to the financial statements

Statement of financial position and income statement

Statement of financial position

					Values for the year
A.	RECEIVABLES FROM SHAREHOLDERS FOR SUBSCRIBED SHARE CAPITAL NOT PAID UP of which called capital		2 0		1 0
B.	INTANGIBLE ASSETS 1. Acquisition commissions to be amortised a) life classes b) non-life classes 2. Other acquisition expenses 3. Start-up and expansion costs 4. Goodwill 5. Other multi-year costs	3 0 4 0	5 0 6 0 7 7,864 8 71,230,426 9 15,189,295		10 86,427,585
C.	INVESTMENTS I - Land and buildings 1. Property intended for company use 2. Property for third-party use 3. Other property 4. Other rights in rem 5. Assets under construction and advances II - Investments in Group companies and other investee companies 1. Shares and holding in companies: a) parent companies b) subsidiaries c) affiliates d) associates e) other 2. Bonds issued by companies: a) parent companies b) subsidiaries c) affiliates	17 0 18 150,000 19 0 20 3,300 21 556,418 23 0 24 0 25 0	11 0 12 0 13 0 14 0 15 0 22 709,718	16 0
	d) associates e) other 3. Loans to companies: a) parent companies b) subsidiaries c) affiliates d) associates e) other	26 0 27 0 29 0 30 0 31 0 32 0 33 0	28 0 34 0	35 709,718
			to be carried forward		86,427,585

STATEMENT OF FINANCIAL POSITION ASSETS

	Values for the year
			carried forward				86,427,585
C. INVESTMENTS (continued) III - Other financial investments 1. Shares and holdings a) Listed shares b) Unlisted shares c) Units	36 0 37 0 38 0	39	0
2. Mutual fund units		40	2,774,606
a) listed b) unlisted c) convertible bonds 4. Loans a) collaterised loans	3. Bonds and other fixed-income securities 41 213,625,915 42 0 43 0 45 0	44	213,625,915
b) loans on policies	46 0
c) other loans	47 0	48	0
5. Units in mutual investments		49	0
6. Deposits with credit institutions		50	0
7. Miscellaneous financial investments		51	0	52	216,400,521
IV - Deposits with ceding companies				53	0	54	217,110,240
D. BEAR PENSION FUND MANAGEMENT I II	INVESTMENTS FOR THE BENEFIT OF LIFE INSURANCE POLICYHOLDERS WHO THE ASSOCIATED RISK AND RESERVES ARISING FROM - Investments relating to the performance of investment funds and market indices - Investments arising from pension fund management			55 56	0 0	57	0
D bis. I - NON-LIFE CLASSES 1. Premium reserve 2. Claims reserve 3. Profit-sharing and reversals reserve 4. Other technical provisions	REINSURERS' SHARE OF TECHNICAL PROVISIONS	58 59 60 61	61,832,726 45,473,347 0 0	62	107,306,073
II - LIFE CLASSES 1. Mathematical reserves 3. Reserve for amounts payable 4. Profit-sharing and reversals reserve 5. Other technical provisions	2. Supplementary insurance premium reserve 6. Technical provisions where the investment risk	63 64 65 66 67	0 0 0 0 0
pension fund management	is borne by policyholders and reserves arising from	68	0	69	0	70	107,306,073
			to be carried forward				410,843,897

		Values for the previous year
	carried forward		89,093,306

0 0
0	39 0 40 2,619,761
182,113,786 0
0	44 182,113,786
0 0
0	48 0
	49 0
	50 0
	51 0	52 184,733,547
		53 0	54 185,439,965

		55 0
		56 0	57 0

	58 52,932,479
	59 15,282,839 60 0
	61 0	62 68,215,318

	63 0
	64 0
	65 0
	66 0
	67 0
	68 0	69 0	70 68,215,318
	to be carried forward		342,748,589

				Values for the year
		carried forward			410,843,897
E.	RECEIVABLES
	I - Receivables, arising from direct insurance operations, in respect of: 1. Policyholders a) for premiums for the year 71 46,751,968
	b) for premiums for previous years 72 0	73 46,751,968
	2. Insurance intermediaries	74 4,552,850
	3. Company current accounts	75	0
	4. Policyholders and third parties for amounts to be recovered II - Receivables, arising from reinsurance operations, in respect of:	76 25,030,803		77 76,335,620
	- 1. Insurance and reinsurance companies	78 5,614,118
	- 2. Reinsurance intermediaries	79	0	80 5,614,118
	III - Other receivables			81 27,337,506	82 109,287,244

F.	OTHER ASSETS
	I - Tangible assets and stocks: 1. Furniture, office machinery and internal means of transport 2. Movable property entered in public	83 495,443.2
	registers	84	0.0
	3. Plant and equipment 4. Miscellaneous stocks and goods	85 86	0.0 0	87 495,443

	II - Cash and cash equivalents 1. Bank and postal current account
	deposits 2. Cheques and cash balances	88 5,455,338 89	838	90 5,456,175
	IV - Other assets
	1. Reinsurance transition accounts 2. Miscellaneous assets	92 93 184,275	0	94 184,275	95 6,135,893

G.	ACCRUALS AND DEFERRALS
	1. For interest			96 1,382,101
	2. For rent 3. Other accruals and deferrals			97 0 98 1,397,781	99 2,779,882

	TOTAL ASSETS				100 529,046,916

	Values for the previous year
		carried forward				342,748,589





36,438,488
0	73	36,438,488
	74 75	3,911,863 0
	76	5,316,336	77	45,666,686

	78	968,807
	79	0	80	968,807
			81	26,327,719	82	72,963,212




	83	454,365.5
	84	10,300.0
	85	10,801.2
	86	0	87	475,467
	88	4,443,782
	89	669	90	4,444,451

	92	0
	93	15,596	94	15,596	95	4,935,514



			96 97	551,998 0
			98	2,117,260	99	2,669,259

TOTAL ASSETS					100	423,316,574

STATEMENT OF FINANCIAL POSITION LIABILITIES

	SHAREHOLDERS' EQUITY
I	- Subscribed share capital or equivalent provision			101	6,680,000
II	- Share premium reserve			102	170,000
III	- Revaluation reserves			103	0
IV	- Legal reserve			104	1,385,187
V	- Statutory reserves			105	0
VI	- Reserves for parent company shares			400	0
VII	- Other reserves			107	202,908,074
VIII	- Retained earnings (losses carried forward)			108	0.0
IX	- Profit (loss) for the year			109	5,830,299
X	- Negative reserve for own shares			401	-7,802,761	110	209,170,798
	SUBORDINATED LIABILITIES					111	0
	TECHNICAL PROVISIONS
I	- NON-LIFE CLASSES
	1. Premium reserve	112	155,839,890
	2. Claims reserve	113	88,195,758
	3. Profit-sharing and reversals reserve	114	31,732
	4. Other technical provisions	115	0
	5. Equalisation reserves	116	337,297	117	244,404,678
II	- LIFE CLASSES
	1. Mathematical reserves	118	0
	2. Supplementary insurance premium reserve	119	0
	3. Reserve for amounts payable	120	0
	4. Profit-sharing and reversals reserve	121	0
	5. Other technical provisions	122	0	123	0	124	244,404,678
TECHNICAL PROVISIONS WHERE THE INVESTMENT RISK IS BORNE BY POLICYHOLDERS AND RESERVES ARISING FROM PENSION FUND MANAGEMENT
I	- Reserves relating to contracts whose performance is connected to investment funds and market indices			125	0
II	- Reserves arising from pension fund management			126	0	127	0
			to be carried forward				453,575,477

		Values for the previous year

	101	6,680,000
	102	170,000
	103	0
	104	1,385,187
	105	0
	400	0
	107	210,190,403
	108	0.0
	109	-7,282,329
	401	-1,247,111	110	209,896,150
			111	0


112 128,495,832
113 38,007,331
114 57,909
115 0
116 91,731	117	166,652,803
118 0
119 0
120 0
121 0
122 0	123	0	124	166,652,803


	125	0

to be carried forward	126	0	127	0 376,548,953

						Values for the year
				carried forward				453,575,477
E.		PROVISIONS FOR RISKS AND CHARGES
	1.	Provisions for retirement benefits and similar obligations			128	2,571,367
	2.	Provisions for taxes			129	0
	3.	Other provisions			130	0	131	2,571,367

F.		DEPOSITS RECEIVED FROM REINSURERS					132	2,667,973

		G. PAYABLES AND OTHER LIABILITIES
	I	- Payables, arising from direct insurance operations, to:
		1. Insurance intermediaries	133	0
		2. Company current accounts	134	0
		3. Policyholders for security deposits and premiums	135	0
		4. Guarantee funds for policyholders	136	0	137	0

	II	- Payables, arising from reinsurance operations, in respect of:
		1. Insurance and reinsurance companies	138	31,204,885
		2. Reinsurance intermediaries	139	0	140	31,204,885
	III	- Bonds			141	0
	IV	- Payables to banks and financial institutions			142	540
	V	- Collateralised payables			143	0
	VI	- Misc. loans and other financial debts			144	0
	VII	- Employee severance indemnity			145	743,591
	VIII	- Other payables
		1. For taxes payable by policyholders	146	2,931,765.8
		2. Misc. tax charges	147	2,606,998
		3. To social security and pension institutions	148	660,295
		4. Miscellaneous payables	149	17,240,877	150	23,439,936
	IX	- Other liabilities
		1. Reinsurance transition accounts	151	0
		2. Commissions for premiums in the process of collection	152	8,739,556
		3. Misc. liabilities	153	6,103,593	154	14,843,149	155	70,232,100
				to be carried
				forward				529,046,916

	Values for the previous year
carried forward		376,548,953

	128 2,603,386
	129 0
	130 320,000	131 2,923,386

		132 1,599,677


133 0
134 0
135 0
136 0	137 0

138 11,716,878
139 0	140 11,716,878

	141 0
	142 0
	143 0
	144 0
	145 579,155

146 1,578,791.1
147 741,467
148 519,268
149 17,764,834	150 20,604,360

151 0
152 6,925,489
153 2,418,677	154 9,344,166	155 42,244,558
to be carried forward		423,316,574

		Values for the year
	carried forward			529,046,916

ACCRUALS AND DEFERRALS
1. For interest	156	0
2. For rent	157	0
3. Other accruals and deferrals	158	0	159	0
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY			160	529,046,916

Values for the previous year
carried forward		423,316,574

	156 0
	157 0
	158 0	159 0
		160 423,316,574

I, the undersigned, declare that these financial statements conform to the truth and records

The legal representatives of the Company ( * )

Alberto Minali - Chief Executive Officer

( ** ) ( ** ) ( ** )

Statutory Auditors

Saverio Ugolini - Chairman

Rosella Colleoni

Alessandro Copparoni

Space reserved for certification of filing by the
Companies Register

( * ) For foreign companies, the signature must be affixed by the general representative for Italy.

( ** ) Indicate the position held by the signatory.

Income statement

							Values for the year
	I. TECHNICAL ACCOUNT OF THE NON-LIFE CLASSES
1.	EARNED PREMIUMS, NET OF REINSURANCE
	a) Gross premiums written			1	216,238,560
	b) (-) Premiums ceded to reinsurance			2	99,954,111
	c) Change in gross amount of premium reserve			3	27,344,058
	d) Change in reinsurers' share of premium reserve			4	8,900,247	5	97,840,638
2.	(+) SHARE OF PROFIT FROM INVESTMENTS TRANSFERRED FROM NON-TECHNICAL ACCOUNT (ITEM III. 6)					6	1,997,915
3.	OTHER TECHNICAL INCOME, NET OF REINSURANCE					7	2,494,842
4.	CLAIMS-RELATED EXPENSES, NET OF RECOVERIES AND REINSURANCE
	a) Amounts paid
	aa) Gross amount	8	67,679,573
	bb) (-) reinsurers' share	9	16,036,444	10	51,643,129
	b) Change in recoveries net of reinsurers' share
	aa) Gross amount	11	36,571,830
	bb) (-) reinsurers' share	12	3,101,097	13	33,470,733
	c) Change in claims reserve
	aa) Gross amount	14	50,188,427
	bb) (-) reinsurers' share	15	30,190,508	16	19,997,919	17	38,170,315
5.	CHANGE IN OTHER TECHNICAL PROVISIONS, NET OF REINSURANCE					18
6.	REVERSALS AND PROFIT-SHARING, NET OF REINSURANCE					19	-26,176
7.	OPERATING EXPENSES:
	a) Acquisition commissions			20	47,053,734
	b) Other acquisition expenses			21	12,234,827
	c) Change in commissions and other acquisition expenses to be amortised			22
	d) Collection commissions			23	195,396
	e) Other administrative expenses			24	19,344,191
	f) (-) Commissions and share of profits received from reinsurers			25	39,075,391	26	39,752,757
8.	OTHER TECHNICAL EXPENSES, NET OF REINSURANCE					27	8,770,284
9.	CHANGE IN EQUALISATION RESERVES					28	245,566
10.	RESULT OF THE TECHNICAL ACCOUNT OF THE NON-LIFE CLASSES (Item III. 1)					29	15,420,649

	1

			Values for the previous year



		111	131,388,093
		112	53,822,910
		113	33,990,077
		114	11,634,672	115	55,409,777

				116
				117	866,058



118	16,170,285
119	6,223,088	120	9,947,197

121	7,529,800
212	3,743,814	123	3,785,986


124	11,754,723
125	3,906,304	126	7,848,419	127	14,009,630
				128

				129	57,909

		130	30,704,992
		131	10,613,642

		132
		133	60,000
		134	17,410,324
		135	26,197,039	136	32,591,918
				137	2,128,203

				138	91,731

				213	7,396,444

CONTO ECONOMICO

			Valori dell'esercizio

II. CONTO TECNICO DEI RAMI VITA
1. PREMI DELL'ESERCIZIO, AL NETTO DELLE CESSIONI IN RIASSICURAZIONE:
a) Premi lordi contabilizzati		30

b) (-) premi ceduti in riassicurazione		31	32
2. PROVENTI DA INVESTIMENTI:
a) Proventi derivanti da azioni e quote		33
(di cui: provenienti da imprese del gruppo e da altre partecipate		) 34
b) Proventi derivanti da altri investimenti:
aa) da terreni e fabbricati	35
bb) da altri investimenti	36	37
	(di cui: provenienti da imprese del gruppo	) 38
c) Riprese di rettifiche di valore sugli investimenti		39
d) Profitti sul realizzo di investimenti		40

(di cui: provenienti da imprese del gruppo e da altre partecipate		) 41	42
3. PROVENTI E PLUSVALENZE NON REALIZZATE RELATIVI A INVESTIMENTI A BENEFICIO DI ASSICURATI I QUALI NE SOPPORTANO IL RISCHIO E A INVESTIMENTI DERIVANTI DALLA GESTIONE DEI FONDI PENSIONE			43
4. ALTRI PROVENTI TECNICI, AL NETTO DELLE CESSIONI IN RIASSICURAZIONE			44
5. ONERI RELATIVI AI SINISTRI, AL NETTO DELLE CESSIONI IN RIASSICURAZIONE:
a) Somme pagate
aa) Importo lordo	45
bb) (-) Quote a carico dei riassicuratori	46	47
b) Variazione della riserva per somme da pagare
aa) Importo lordo	48
bb) (-) Quote a carico dei riassicuratori	49	50	51
6. VARIAZIONE DELLE RISERVE MATEMATICHE E DELLE ALTRE RISERVE TECNICHE,
AL NETTO DELLE CESSIONI IN RIASSICURAZIONE
a) Riserve matematiche:
aa) Importo lordo	52
bb) (-) Quote a carico dei riassicuratori	53	54
b) Riserva premi delle assicurazioni complementari:
aa) Importo lordo	55
bb) (-) Quote a carico dei riassicuratori	56	57
c) Altre riserve tecniche
aa) Importo lordo	58
bb) (-) Quote a carico dei riassicuratori	59	60
d) Riserve tecniche allorché il rischio dell'investimento è sopportato dagli assicurati e derivanti dalla gestione dei fondi pensione
aa) Importo lordo	61
bb) (-) Quote a carico dei riassicuratori	62	63	64

Pag. 2

		Valori dell'esercizio precedente




	140
	141	142


	143
(di cui: provenienti da imprese del gruppo e da altre partecipate	) 144


145
146	147
(di cui: provenienti da imprese del gruppo	) 148
	149
	150
(di cui: provenienti da imprese del gruppo e da altre partecipate	) 151	152

		153

		154



155
156	157

158
159	160	161



162
163	164

165
166	167

168
169	170


171
172	173	174

			Values for the year
7.	REVERSALS AND PROFIT-SHARING, NET OF REINSURANCE		65	0
8.	OPERATING EXPENSES: a) Acquisition commissions	66	0
	b) Other acquisition expenses c) Change in commissions and other acquisition expenses to be amortised	67 68	0 0
	d) Collection commissions	69	0
	e) Other administrative expenses f) (-) Commissions and share of profits received from reinsurers	70 71	0 0 72	0
9.	CAPITAL AND FINANCIAL EXPENSES: a) Investment management expenses and interest expenses	73	0
	b) Value adjustments on investments c) Losses on investment disposals	74 75	0 0 76	0
10.	CAPITAL AND FINANCIAL EXPENSES AND UNREALISED CAPITAL LOSSES RELATING TO INVESTMENTS FOR THE BENEFIT OF POLICYHOLDERS WHO BEAR THE ASSOCIATED RISK AND INVESTMENTS ARISING FROM PENSION FUND MANAGEMENT		77	0
11.	OTHER TECHNICAL EXPENSES, NET OF REINSURANCE		78	0
12.	(-) SHARE OF PROFIT FROM INVESTMENTS TRANSFERRED TO NON-TECHNICAL ACCOUNT (Item III. 4)		79	0
13.	RESULT OF THE TECHNICAL ACCOUNT OF THE LIFE CLASSES (Item III. 2)		80	0
	III. NON-TECHNICAL ACCOUNT
1.	RESULT OF THE TECHNICAL ACCOUNT OF THE NON-LIFE CLASSES (Item I. 10)		81	15,420,649
2.	RESULT OF THE TECHNICAL ACCOUNT OF THE LIFE CLASSES (Item II. 13)		82	0
3.	INVESTMENT INCOME IN THE NON-LIFE CLASSES: a) Income from shares and holdings (of which from Group companies and other investee companies	83 23,593 84	0 )
	b) Income from other investments: aa) from land and buildings 85 0
	bb) from other investments 86 4,740,662 (of which: from Group companies	87 4,740,662 88	0 )
	c) Write-backs of value adjustments on investments	89 1,938,974
	d) Gains on investment disposals (of which from Group companies and other investee companies	90 140,537 91	0 ) 92	6,843,767

			Values for the previous year
			175	0

	176 177	0 0

	178	0 0
	179 180	0
	181	0	182	0

	183	0
	184 185	0 0	186	0


			187	0
			188	0
			189	0

			190	0

			191	7,396,444

			192	0

	193 194	2,561 ) 0

0 195
3,374,315 196	187	3,374,315
	198	) 0
	199	0
	200	700,049
	201	0 )	202	4,076,925

			Values for the year
4.	(+) SHARE OF PROFIT FROM INVESTMENTS TRANSFERRED FROM THE TECHNICAL ACCOUNT OF THE LIFE CLASSES (Item II. 12)	93
5.	CAPITAL AND FINANCIAL EXPENSES OF THE NON-LIFE CLASSES:
	a) Investment management expenses and interest expenses 439,031 94
	b) Value adjustments on investments 212,511 95
	c) Losses on investment disposals 633,141 96	97	1,284,684
6.	(-) SHARE OF PROFIT FROM INVESTMENTS TRANSFERRED TO THE TECHNICAL ACCOUNT OF THE NON-LIFE CLASSES (Item I. 2)	98	1,997,915
7.	OTHER INCOME	99	451,175
8.	OTHER EXPENSES	100	11,914,713
9.	RESULT FROM ORDINARY OPERATIONS	101	7,518,279
10.	EXTRAORDINARY INCOME	102	828,774
11.	EXTRAORDINARY EXPENSES	103	1,086,741
12.	RESULT FROM EXTRAORDINARY OPERATIONS	104	-257,967
13.	RESULT BEFORE TAX	105	7,260,312
14.	INCOME TAX FOR THE YEAR	106	1,430,013
15.	PROFIT (LOSS) FOR THE YEAR	107	5,830,299

	Values for the previous year
(+) SHARE OF PROFIT FROM INVESTMENTS TRANSFERRED FROM THE TECHNICAL ACCOUNT OF THE LIFE CLASSES (Item II. 12)	203
CAPITAL AND FINANCIAL EXPENSES OF THE NON-LIFE CLASSES:
a) Investment management expenses and interest expenses 449,175 204
b) Value adjustments on investments 205
c) Losses on investment disposals 634,555 206	207	10,307,337
(-) SHARE OF PROFIT FROM INVESTMENTS TRANSFERRED TO THE TECHNICAL ACCOUNT OF THE NON-LIFE CLASSES (Item I. 2)	208
OTHER INCOME	209	54,561
OTHER EXPENSES	210	10,751,864
RESULT FROM ORDINARY OPERATIONS	211	-9,531,271
EXTRAORDINARY INCOME	212	1,126,066
EXTRAORDINARY EXPENSES	213	682,117
RESULT FROM EXTRAORDINARY OPERATIONS	214	443,949
RESULT BEFORE TAX	215	-9,087,322
INCOME TAX FOR THE YEAR	216	-1,804,993
PROFIT (LOSS) FOR THE YEAR	217	-7,282,329
	9,223,607

I, the undersigned, declare that these financial statements conform to the truth and records

The legal representatives of the Company ( * )

Alberto Minali - Chief Executive Officer

( ** ) ( ** )

Statutory Auditors

Saverio Ugolini - Chairman

Rosella Colleoni

( ** )

Alessandro Copparoni

Space reserved for certification of filing by the Companies Register

( * ) For foreign companies, the signature must be affixed by the general representative for Italy.

( ** ) Indicate the position held by the signatory.

Notes to the financial statements

59 TABLE OF CONTENTS | Notes to the financial statements

Notes to the financial statements

General section

REVO Insurance S.p.A. is a joint stock insurance company created by the reverse merger between REVO S.p.A. (SPAC – special purpose acquisition company) and Elba Assicurazioni S.p.A., having its registered office at Via dell'Agricoltura 7, Verona, VAT No. 05850710962 and entered in the Verona Companies Register.

REVO was created by the merger by incorporation on 21 November 2022 of REVO SPAC and Elba Assicurazioni S.p.A., an insurance company operating in the insurance market since 2008.

Since that date, the Company has been listed on the Euronext STAR market organised and managed by Borsa Italiana S.p.A.

These financial statements have been prepared in accordance with the general principles provided in Article 2423-bis of the Italian Civil Code, as laid down in Legislative Decree 209/2005, and ISVAP Regulation No. 22 of 4 April 2008 as amended and supplemented by IVASS Order No. 53 of 6 December 2016. The other provisions of the Italian Civil Code, and the circulars and other orders issued by IVASS have also been complied with. Lastly, account has been taken of the accounting principles issued by the Italian accounting standards organisation, OIC.

They have been prepared on a going concern basis, with the agreement of the Board of Statutory Auditors for the cases provided for by law. They have also been prepared in continuity of application of the accounting standards applied in the previous year.

The aforementioned accounting principles and valuation criteria are also based on the general criteria of prudence and accrual, in order to give a true and fair view of the financial position, cash flows and results of operations.

The statement of financial position and income statement schedules comply with the models provided for by ISVAP Regulation No. 22 of 4 April 2008, as amended and supplemented by IVASS Order No. 53 of 6 December 2016, and contain amounts denominated in euros rounded up or down to the nearest unit. The sum of the differences from rounding has been recognised in items F.IV) Other assets or G.IX) Other liabilities for the statement of financial position, or items III.11) Extraordinary expenses or III.10) Extraordinary income for the income statement.

Pursuant to Article 4 of the aforementioned ISVAP Regulation No. 22, all amounts presented in these notes are expressed in thousands of euro, unless otherwise indicated.

These financial statements for the year ended 31 December 2023 have been audited by the External Auditor, KPMG S.p.A.

The reference valuation criteria are set out below.

Part A – Valuation criteria

Assets

Intangible assets

Set-up costs and other multi-year directly attributable costs are recognised in the statement of financial position at purchase cost and are amortised, with the consent of the Board of Statutory Auditors, over five years on a straight-line basis according to their expected useful lives; for incremental expenses on third-party assets, the amortisation rate is 15%. For costs incurred during the year, the annual percentage is reduced by half.

Goodwill acquired for consideration is recorded under assets at cost, as it is included in the consideration paid for the acquisition, and is amortised on the basis of useful life for a period not exceeding ten years. The account also includes intangible assets in progress and advances paid for the acquisition of intangible assets, although they cannot be amortised.

Investments

There are no land or buildings.

Investments in Group companies and other investee companies

Investments in Group companies and other investee companies mainly consist of long-term investments such as controlling interests and investments in other companies. These equity investments are recognised at purchase or subscription cost or at a value lower than cost in cases where, based on qualitative and quantitative data, the investee companies are impaired.

Other long-term financial investments

Securities that are long-term investments and therefore intended to remain in the Company's portfolio are recognised at purchase cost, calculated according to the weighted average cost method. This cost is adjusted by the positive or negative difference between the purchase cost and the redemption value of the security, amortised on a pro-rata basis in the period between the purchase date and the maturity date. Securities denominated in foreign currencies are measured at the exchange rate prevailing at period-end.

For securities traded on regulated markets, the market value, used as the first indicator of impairment, is determined on the basis of the arithmetic mean of the prices recorded in the last reference month; for unlisted securities, the prices of similar securities are used as a reference.

The original cost of previously impaired securities is restored when the reasons for the write-down to the realisable value no longer apply.

Other short-term financial investments

These securities are valued at the lower of cost and market value.

Cost is determined using the weighted average cost method, adjusted by the difference between the issue cost and the redemption value of the security, amortised on a pro-rata basis in the period between the purchase date and the maturity date. Securities denominated in foreign currencies are measured at the exchange rate prevailing at period-end.

For securities traded on regulated markets, the market value is determined on the basis of the arithmetic mean of the prices recorded in December on the reference stock exchange. For unlisted securities, the quotation of similar securities is used as a reference.

The original cost of previously impaired securities is restored when the reasons for the write-down to the realisable value no longer apply.

Reinsurers' share of technical provisions

The reinsurers' share of technical provisions is determined on the basis of the gross amounts of technical provisions for direct business, in accordance with reinsurance contractual agreements.

In particular, with regard to the reinsurers' share of the premium reserve, the criterion used is that applied to calculate the premium reserve recognised in liabilities. Please refer to the relevant note for the analysis of valuation criteria.

Receivables

Receivables are recognised in the financial statements at their estimated realisable value, or at their nominal value, and are adjusted by the provision for doubtful accounts to reflect the risk of non-collection.

Other assets

Tangible assets

These are recognised at purchase cost, including ancillary costs, and are shown net of accumulated depreciation.

They are depreciated according to the rates below, which are considered appropriate to represent the remaining useful life of the assets, in line with the Ministerial Decree of 1988.

The depreciation rates used are as follows:

	Rate
Furniture and fixtures	12%
Plant	15%
Other equipment	20%
Electronic machinery	20%
Movable property entered in public registers	25%

For purchases made in 2023, the relevant rate was reduced by 50%.

Ordinary maintenance and repair costs are expensed in the year in which they are incurred.

Cash and cash equivalents

These are stated at nominal value.

Accruals and deferrals

These are determined on an accrual basis, whether under assets or liabilities.

Liabilities

Shareholders' equity

The share capital and the organisational start-up provision, fully paid up, and other reserves are recognised at nominal value.

Technical provisions

Technical provisions are determined on the basis of the provisions contained in ISVAP Regulation No. 16 of 4 March 2008 and ISVAP Regulation No. 22 of 4 April 2008, as amended by IVASS Order No. 53 of 6 December 2016. The general rules lay down the principle whereby the amount of provisions must always be sufficient to enable companies to meet their commitments under insurance contracts as far as is reasonably foreseeable.

Premium reserve

The unearned premiums reserve is calculated on a pro-rata temporis basis according to taxable premiums written, minus acquisition commissions and other directly attributable acquisition expenses.

For the Suretyship class, the unearned premiums reserve is supplemented in accordance with Articles 13 and 14 of ISVAP Regulation No. 16 of 4 March 2008 and Annex 15 to ISVAP Regulation No. 22 of 4 April 2008, as amended by IVASS Order No. 53 of 6 December 2016.

For the other classes, the unearned premiums reserve is supplemented in accordance with the provisions of Articles 15 and 16 of ISVAP Regulation No. 16 of 4 March 2008 and Annex 15 to ISVAP Regulation No. 22 of 4 April 2008, as amended by IVASS Order No. 53 of 6 December 2016.

The reserve for outstanding risks is valued on the basis of the empirical method established by ISVAP Regulation No. 22 of 4 April 2008, which uses as its reference the loss ratio of generation for the current year appropriately assessed in a forward-looking manner. The amount of this reserve is equal to the amount by which the expenses relating to indemnities and expenses arising from current insurance contracts exceed the unearned premiums reserve.

Claims reserve

The claims reserve is determined, in accordance with the provisions of ISVAP Regulation No. 16 of 4 March 2008 and Annex 15 to ISVAP Regulation No. 22 of 4 April 2008, as amended by IVASS Order No. 53 of 6 December 2016, on the basis of an analytical estimate of the individual cases based on a prudent and objective assessment of the documentation received regarding claims that occurred in the year or in previous years and were not yet paid, by estimating the provision for late claims based on an analysis of available information.

The total amount set aside is deemed adequate to meet the future payment of claims, direct expenses and settlement expenses.

Profit-sharing and reversals reserve

Pursuant to Annex 15 of ISVAP Regulation No. 22, the profit-sharing and reversals reserve includes the amounts payable to policyholders or beneficiaries of contracts for technical profit-sharing and reversals, provided that such amounts have not already been allocated to policyholders.

Equalisation reserves

Pursuant to Annex 15 of ISVAP Regulation No. 22, companies carrying on insurance activities in the non-life classes create equalisation reserves in accordance with the law. These reserves include all amounts set aside to smooth out fluctuations in the claims rate in future years or to cover particular risks.

Provision for risks and charges

This item does not have an asset adjustment function and includes provisions for risks and charges intended to cover losses and payables of a specific nature, the existence of which is certain or probable, but the amount or date of occurrence of which is uncertain at year-end.

Payables and other liabilities

Payables and other liabilities are measured at their nominal value, which corresponds to their estimated settlement value. The severance indemnity is calculated in accordance with applicable laws and employment contracts.

Current and deferred taxation

Current and deferred taxes are recognised in accordance with current tax legislation. The amount resulting from the calculation of deferred tax assets is considered in its entirety in relation to future taxable income borne by the Company, taking into account the budget and the business plan approved by the Board of Directors.

Income statement

Earned premiums net of reinsurance

Gross written premiums include premiums acquired in Italy or abroad under the freedom to provide services and are recognised, pursuant to Article 45 of Legislative Decree 173/1997 and ISVAP Regulation No. 22 of 4 April 2008 as amended and supplemented by IVASS Order No. 53 of 6 December 2016, at the time of their accrual, regardless of the date on which they are actually collected and net of taxes payable by policyholders and cancellations due to technical reversals relating to securities issued during the year.

The accrual for the period is ensured by the establishment of the premium reserve.

Premiums ceded to reinsurance include amounts due to reinsurers in accordance with the reinsurance treaties entered into.

Claims-related expenses

This item includes gross amounts paid by way of compensation and the associated expenses. It also includes:

the reinsurers' share of claims paid on the basis of contractual agreements;
changes in recoveries net of the reinsurers' share;
changes in the claims reserve, both gross and net of the reinsurers' share.

Operating expenses

This item includes:

acquisition commissions, understood as fees for the acquisition and renewal, including the tacit renewal, of contracts and production bonuses commensurate with the achievement of productivity targets;
other acquisition expenses, understood as directly and indirectly attributable costs;
collection commissions;
other administrative expenses, understood for the portion not attributable to expenses relating to acquisition, claims settlement and investments - as expenses incurred for the management of reinsurance relationships, payroll expenses and depreciation of movable property;
commissions and profit-sharing received from reinsurers.

Other technical expenses

This item includes, inter alia, write-downs due to uncollectable policyholder receivables for premiums for the year and for previous years, as well as the technical cancellations of receivables from policyholders for premiums for previous years, and the reversal of commissions relating to premiums ceded to reinsurance and cancelled.

Share of profit from investments transferred to the technical account of the non-life classes

Pursuant to Article 22 of ISVAP Regulation No. 22 of 4 April 2008 as amended and supplemented by IVASS Order No. 53 of 6 December 2016, this item includes a portion of the profits from investments to be transferred to the technical account. This portion is calculated according to the methods indicated in Article 22, paragraph 1(b) and (c) of the above Regulation, in relation to the amount of the initial and final mandatory technical provisions net of reinsurance for the year and the amount of initial and final shareholders' equity.

Other income

This item includes non-technical income from ordinary operations related to activities other than those classified as investments.

Other expenses

This item includes non-technical expenses from ordinary operations, including amortisation amounts for intangible assets other than acquisition commissions and other acquisition expenses.

Taxes

This item includes taxes set aside on an accrual basis according to the best estimate of taxable income, pursuant to current tax legislation, taking into account applicable exemptions and non-deductible costs.

OIC accounting standard No. 25, which describes the tax treatment of income taxes, requires deferred and prepaid taxes to be recognised in the financial statements on the total amount of the temporary differences between the value of assets and liabilities determined according to statutory criteria and the corresponding tax value.

Deferred tax assets and benefits associated with any tax losses are recognised in the accounts to the extent that there is a reasonable certainty of taxable income against which the deductible temporary differences and carry-forward losses can be used.

Deferred tax liabilities are not recognised when there is little likelihood that the relevant payable will arise.

Part B – Information on the statement of financial position and the income statement

Assets

Intangible assets

B.	Intangible assets	31.12.2023	31.12.2022	Change
3.	Start-up and expansion costs	8	12	- 4
4.	Goodwill	71,231	80,134	- 8,903
5.	Other multi-year costs	15,189	8,947	6,242
Intangible assets		86,428	89,093	- 2,665

Intangible assets totalled €86,428,000 (€89,093,000 at 31 December 2022), net of amortisation for the year. The decrease compared with the previous year is due to the amortisation of the goodwill carried in 2022 following the acquisition of Elba Assicurazioni S.p.A. and the subsequent reverse merger and the increase in other multi-year costs. Other multi-year costs include multi-year costs incurred for the preparation and implementation of software relating to company information systems of €14,026,000 (€7,692,000 at 31 December 2022), incremental expenses on third-party assets of €1,108,000 incurred to adapt the offices at the headquarters at Via Mecenate and Via Monte Rosa in Milan (€1,202,000 at 31 December 2022), advance payments on intangible assets of €46,000 (€42,000 at 31 December 2022) and trademarks, patents and similar rights of €9,000.

The increase in the item relating to information systems was specifically due to the implementation of the strategic development plan, which provides for substantial IT investments to support and sustain the Company during the business development phase, in particular the change in the accounting management system in view of the introduction of the new IFRS 17 accounting standard and the development of the OverX platform, designed to streamline and facilitate underwriting processes.

No indicators for potential write-downs were found.

During the year, as already mentioned, the Company moved from its previous operational headquarters at Via Mecenate 90 in Milan to the prestigious head office at Via Monte Rosa 91, with collaborative workspaces and a strong sustainability footprint. For this reason, the incremental expenses on third-party assets relating to the old office were fully amortised, bringing the residual value to the economic value.

For details of movements during the year, please see Annex 4 to these notes.

Investments
C.	Investments	31.12.2023	31.12.2022	Change
II.	Investments in Group companies and other investee companies	709	706	3
III.	Other financial investments	216,401	184,734	31,667
Investments		217,110	185,440	31670

Financial investments in Group companies and other investee companies amounted to €709,000 and included the equity investment in subsidiary REVO Underwriting S.r.l. (MGA of the Group) for €150,000, the strategic stake in Mangrovia Blockchain Solutions S.r.l. of 9.5% of the share capital (€556,000) and the stake in associate MedInsure S.r.l., an insurance brokerage company, of which the Company acquired 33% of the share capital on 19 December 2023.

The remaining 67% of the share capital of MedInsure is held by Holborn Underwriting Ltd, a company incorporated under UK law. The parties agreed on the terms of a call option in favour of REVO which, at the end of the fifth year, will have the option (but not the obligation) to acquire the remaining 67% stake, subject to authorisation by IVASS.

Changes in Item C.II during the year are shown in Annex 5 to these notes.

The breakdown of other financial investments is set out below:

Investments by type	31.12.2023	31.12.2022	Change
Foreign corporate bonds	28,494	22,579	5,915
Italian corporate bonds	6,590	4,924	1,666
Italian government bonds	84,163	98,226	-14,063
Foreign state/government bonds	94,379	56,385	37,994
Mutual fund units	2,775	2,620	155
Other financial investments	216,401	184,734	31,667

Other financial investments amounted to €216,401,000, compared with €184,734,000 at 31 December 2022, and consisted of €213,626,000 in bonds and other listed fixed-income securities (made up of 13.3% foreign corporate bonds, 3.1% Italian corporate bonds, 39.4% Italian government bonds and 44.2% foreign government bonds) and €2,775,000 in mutual fund units.

During the year, a portion of the Italian 5-year government bonds, amounting to €15,432,000, was recognised in "fixed" assets. These securities have particularly high yields.

For details of the situation in terms of financial investments and the comparison with market value, see Annexes 8 and 9 to these notes.

The current value shown in the above annexes corresponds to the value of the arithmetic mean recorded in December 2023.

A comparison between the value shown in these financial statements and the corresponding market value at 31 December 2023 shows latent capital losses of €2,247,000, attributable entirely to the fixed segment (latent capital gains at 31 December 2022 of €119,000).

No derivative transactions were carried out during the year and there were no transfers to the "current" segment.

Reinsurer's share of technical provisions

D-bis	Reinsurers' share of technical provisions	31.12.2023	31.12.2022	Change
I.	Non-life reserves	107,306	68,216	39,090
Reinsurers' share of technical provisions		107,306	68,216	39090

Reinsurers' share of technical provisions totalled €107,306, 000, compared with €68,216,000 at 31 December 2022. The breakdown of the change in reinsurers' share of reserves is set out below:

I. Non-life reserves	31.12.2023	31.12.2022	Change
1. Premium reserve	61,833	52,933	8,900
2. Claims reserve	45,473	15,283	30,190
Non-life reserves	107,306	68,216	39,090

The changes mainly reflect the growth in the Company's insurance business and the change in the reinsurance treaties entered into on the basis of the reinsurance policy adopted by the Company and previously described in the Report on Operations.

Receivables

E.	Receivables	31.12.2023	31.12.2022	Change
I.	Receivables deriving from direct insurance operations	76,336	45,667	30,669
II.	Receivables deriving from reinsurance operations	5,614	969	4,645
III.	Other receivables	27,337	26,328	1,009
Receivable s		109,287	72,964	36,323

The breakdown of receivables arising from direct insurance operations is as follows:

I. Receivables deriving from direct insurance operations	31.12.2023	31.12.2022	Change
1. Policyholders	46,752	36,439	10,313
2. Insurance intermediaries	4,553	3,912	641
3. Company current accounts	-	-	-
4. Policyholders and third parties for amounts to be recovered	25,031	5,316	19,715
Receivables deriving from direct insurance operations	76,336	45,667	30,669

Receivables from policyholders at 31 December 2022, amounting to €37,294,000, gross of the provision for doubtful accounts, were collected during 2023 in the amount of €31,416,000, with €5,128,000 cancelled, and were still in arrears by €785,000 at 31 December 2022. The latter were fully written down by the relative provision for doubtful accounts. Receivables from policyholders at 31 December 2023, amounting to €46,752,000, reflected the marked growth in the insurance portfolio during the year and, in particular, the performance of policies written, mainly concentrated in the month of December, a period in which renewals in the specialty lines are concentrated.

Receivables from intermediaries totalled €4,553,000 (€3,912,000 at 31 December 2022) and mainly consisted of remittances relating to December 2023, almost all of which were collected in early 2024. Their gross amount of €4,852,000 was reduced by the provision for doubtful accounts for agents and brokers of €299,000.

Policyholders and third party amounts to be recovered totalled €25,031,000 (€5,316,000 at 31 December 2022), comprising claims which are in the process of being recovered. The increase is mainly due to a large claim in the Suretyship class, settled during the year, for which the relevant receivable for amounts to be recovered was recorded.

Receivables relating to reinsurance relationships totalled €5,614,000 (€969,000 at 31 December 2022). The increase is linked to the development of the direct insurance business and to the greater losses that occurred during the year, ceded to reinsurance, as well as the increase in deposits with reinsurers.

The breakdown of "Other receivables" item follows:

III. Other receivables	31.12.2023	31.12.2022	Change
Deferred tax receivables	8,998	5,306	3,692
IRES - IRAP advance payment	492	5,394	-4,902
Advance tax on premiums	14,437	11,375	3,062
Escrow account	3,088	4,016	-928
Other receivables	322	237	85
Other receivables	27,337	26,328	1,009

Other receivables of €27,337,000 (€26,328,000 at 31 December 2022) refer to:

Receivables from the tax authorities for prepaid taxes of €8,998,000 (€5,306,000 as at 31 December 2022). The increase is mainly due to the increase in business and the change in the net claims reserve, while the tax loss of REVO S.p.A. generated during 2021 was fully utilised;
Receivables for advance tax on premiums of €14,437,000 (€11,375,000 at 31 December 2022), the performance of which correlates to the strong growth in the Company's premiums in 2022 compared with 2021;
Receivables from tax authorities for tax payments on account of €492,000 (€5,394,000 in 2022). The change is linked to the loss for the 2022 financial year, which had generated current tax receivables;
Escrow accounts set up following the acquisition of Elba Assicurazioni S.p.A. (equal to €3,088,000, €4,016,000 at 31 December 2022) and finally other receivables amounting to €322,000 (€237,000 at 31 December 2022). In the absence of tax disputes, the escrow account was reduced by €1,000,000 during 2023 and will be further reduced by €1,000 annually until the account balance is zero on 30 December 2026.

The nature of the receivables, their amount and the collection of a large portion of them limit the Company's related credit risk.

The following table summarises the temporary differences that resulted in the recognition of prepaid taxes:

		31.12.2023
	Prepaid taxes	Temporary differences	Tax effect
IRES	Multi-year commissions	18,849	4,524
IRES	Change in net claims reserve	16,487	3,957
IRES	Non-deductible portion of receivables write-downs	293	70
IRES	Productivity premium	2,059	494
IRES	Directors' remuneration and write-downs	853	205
IRES	REVO tax loss	0	-
IRES	Total deferred tax assets - IRES	38,541	9,250
IRAP	Non-deductible portion of receivables write-downs	277	19
IRAP	Total deferred tax assets - IRAP	277	19
	Total deferred tax assets - IRES and IRAP	38,818	9,269
	Deferred taxes on merger securities	-878	- 271
	Total deferred tax assets	37,939	8,998

The temporary differences that generated deferred taxes, as shown in the above table, are the same as those recorded in previous years.

As recorded in the previous year, due to the reverse merger between REVO and ELBA, which had retroactive effect as of 1 January 2022, the latter's financial investments had been revalued at market value on that date, generating a positive difference of €878,000 (higher values deriving from the allocation of the merger deficit). This resulted in a mismatch between the carrying amount and the tax value of the securities. To avoid any difference between accounting and tax values, the Company has opted to apply the substitute tax for corporation tax (IRES) and regional business tax (IRAP), obtaining tax recognition of the higher values recognised in the financial statements. To all intents and purposes, therefore, this was a substitute tax liability, which was recognised in the tax return for the 2022 tax year and paid in January 2024.

Other assets

F.	Other assets	31.12.2023	31.12.2022	Change
I.	Tangible assets and stocks	496	475	21
II.	Cash and cash equivalents	5,456	4,445	1,011
IV.	Other assets	184	16	168
	Other assets	6,136	4,936	1,200

This item totalled €6,136,000 (€4,936,000 at 31 December 2022) and consisted of €496,000 for office furniture and machinery, net of the related accumulated amortisation and cash and cash equivalents of €5,456,000 (€4,445,000 at 31 December 2022).

The Company has not identified any indicators of potential impairment with regard to these items.

Accrued income and prepaid expenses

G.	Accruals and deferrals	31.12.2023	31.12.2022	Change
1.	For interest	1,382	552	830
2.	For rent	-	-	-
3.	Other accruals and deferrals	1,398	2,117	- 719
	Accruals and deferrals	2,780	2,669	111

The total amount of accrued income and prepaid expenses is €2,780,000 (€2,669,000 at 31 December 2022).

The item consists of accrued interest income on investments in securities totalling €1,382,000 and prepaid expenses of €1,398,000 for the portion of invoices received relating to the following year, including €1,297,000 relating to the service agreement for the structuring with Mangrovia Blockchain Solutions S.r.l., on an exclusive basis, of the IT and digital solutions owned by REVO, based on blockchain technology, to be used in the implementation of a platform for parametric insurance products.

Liabilities

Shareholders' equity

A.	Shareholders' equity	31.12.2023	31.12.2022	Change
I.	Subscribed share capital or equivalent provision	6,680	6,680	-
II.	Share premium reserve	170	170	-
IV.	Legal reserve	1,385	1,385	-
VII.	Other reserves	202,908	210,191	- 7,283
IX.	Profit (loss) for the year	5,830	- 7,282	13,112
X.	Negative reserve for own shares	- 7,803	- 1,247	- 6,556
	Shareholders' equity	209,170	209,896	- 727

Shareholders' equity stood at €209,170,000 at 31 December 2023. At 31 December 2021, shareholders' equity amounted to €209,896,000. The change was recorded in the result for the year and the negative reserve for treasury shares.

Changes in the individual items of shareholders' equity over the last three years are summarised in the following table:

	Share capital	Legal reserve	Issue premium reserve	Reserve for the purchase of own shares	Other	reserves Dividends	Profit (loss) for the year	Total
Balance at 31.12.2020	6,680	1,385	170		40,128		13,003	61,366
Allocation of profit for the year					10,999	2,004	-13,003
Dividend payment
Result for the year 2021					40,128		13,003	61,366
Balance at 31.12.2021	6,680	1,385	170		51,127		14,308	73,670
Allocation of profit for the year					14,308		-14,308
Increase in assets due to merger					144,755			144,755
Purchase of treasury shares				+ 1.247%				+ 1.247%
Result for the year 2022							-7,282	-7,282
Balance at 31.12.2022	6,680	1,385	170	+ 1.247% 210,190			-7,282	209,896
Allocation of profit for the year					-7,282		7,282	0
Purchase of treasury shares				-6,556				-6556
Result for the year 2023							5,830	5830
Balance at 31.12.2023	6,680	1,385	170		-7,803 202,908	0	5,830	209,170

The following table sets out the composition of shareholders' equity according to the availability and distributability of each of its constituent items:

				Utilisations in the last three years
	31.12.2023	Possible use(1)	Available amount	To cover losses	Other reasons
Share capital	6,680
Legal reserve	1,385	B
Issue premium reserve	170	A, B, C
Reserve for the purchase of own shares*	-7,803	B, C
Other reserves	202,908	A, B, C	193,258
Total	203,340		193,258
-Non-distributable portion	96,078
-Remaining distributable portion	106,830

(1) A: for capital increase

B: to cover losses

C: for distribution to shareholders

* distributable only in the event of disposal or cancellation of own shares

Subordinated liabilities

The Company had not issued any subordinated liabilities at 31 December 2023.

Technical provisions

C.	Technical provisions	31.12.2023	31.12.2022	Change
I.	Non-life classes
	1. Premium reserve	155,840	128,496	27,344
	2. Claims reserve	88,196	38,007	50,189
	3. Profit-sharing and reversals reserve	32	58	-26
	5. Equalisation reserves	337	91	246
I.	Non-life classes	244,405	166,652	77,753

For information on the methods for determining technical provisions, please also see Part A – Valuation criteria, of these financial statements. The changes during the year in the premium reserve and the claims reserve are shown in Annex 13 to these notes.

The following table sets out the details of the premium reserve by class:

	Premium reserve	31.12.2023	31.12.2022	Change
1	Accident	830	657	173
2	Health	262	7	255
3	Land vehicles	1,219	0	1,219
4	Railway rolling stock	1,574	0	1,574
5	Aviation hull	1,089	66	1,023
6	Marine hull (sea, lake and river and canal vessels)	1,379	859	520
7	Goods in transit	1,004	1,110	- 106
8	Fire and natural forces	10,171	8,935	1,236
9	Other damage to property	15,706	11,356	4,350
11	Aviation liability	142	24	118
12	Marine liability (sea, lake and river and canal vessels)	47	22	25
13	General liability	14,472	12,577	1,895
14	Credit	125	82	43
15	Suretyship	106,112	92,574	13,538
16	Financial loss	1,274	222	1,052
17	Legal expenses	428	0	428
18	Assistance	6	5	1
	Premium reserve	155,840	128,496	27,344

The premium reserve amounted to €155,840,000 (€128,496,000 at 31 December 2022). The increase is mainly due to the development of the business during the year.

In 2023, supplementary hail reserves totalling €386,000 were also set aside in direct business (€642,000 in 2022, relating to both hail risk and earthquake risk).

The premium reserve was calculated on a pro-rata temporis basis and is affected by the allocation of supplementary reserves provided for in ISVAP Regulation No. 16/2008 as detailed below:

	Additional reserves	31.12.2022	31.12.2022	Change
8	Fire and natural forces	-	256	- 256
9	Other damage to property	386	386	- 0
15	Suretyship	34,826	30,025	4,801
	Direct supplementary reserves	35,212	30,667	4,545
3	Land vehicles	21	-	21

5	Aviation hull	2	-	2
9	Other damage to property	133	-	133
16	Financial loss	86	-	86
	Indirect supplementary reserves	242	-	242

The reserve for outstanding risks, connected to the technical performance and intended to cover the portion of risk arising in the period after year-end, is calculated on the basis of the empirical method established by ISVAP Regulation No. 22 of 4 April 2008 as described in Part A – Valuation criteria in these notes.

At 31 December 2023, €1,000 was added to the reserve for outstanding risks for Class 4 and €73,000 was added for Class 6.

The claims reserve also includes the reserve for claims reported late (IBNR), amounting to €4,556,000 (€1,640,000 at 31 December 2022), created to cover claims incurred but not reported at the end of the year.

The amount provisioned was also determined on the basis of the historical values recorded in previous years by means of numerical and average cost projections for each reporting class.

The following table sets out the breakdown of the claims reserve by class.

	Claims reserve	31.12.2023	31.12.2022	Change
1	Accident	136	82	54
2	Health	858		858
3	Land vehicles	427		427
4	Railway rolling stock	24		24
5	Aviation hull	2,149		2,149
6	Marine hull (sea, lake and river and canal vessels)	11,706	888	10,818
7	Goods in transit	4,333	503	3,830
8	Fire and natural forces	20,259	1,366	18,893
9	Other damage to property	7,812	4,304	3,508
11	Aviation liability	3		3
12	Marine liability (sea, lake and river and canal vessels)	101		101
13	General liability	9,723	6,679	3,044
14	Credit	16		16
15	Suretyship	30,631	24,186	6,445
16	Financial loss	10	-	10
17	Legal expenses	-	-	-
18	Assistance	8	-	8
	Claims reserve	88,196	38,008	50,188

It should be noted that the profit-sharing and reversals reserve relates entirely to the amount of profit-sharing in contracts in the marine and aviation lines, which typically include a profit-sharing element.

In accordance with ISVAP Regulation No. 22, the Company also calculated equalisation reserves for a total amount of €337,000.

Below is the breakdown by class of the equalisation reserves:

	Equalisation reserve	31.12.2023	31.12.2022	Change
8	Fire and natural forces	124	44	80
9	Other damage to property	148	47	101
	Direct equalisation reserve	272	91	181
8	Fire and natural forces	24	-	24
9	Other damage to property	8	-	8
16	Financial loss	33	-	33
	Indirect equalisation reserve	65	-	65
Total		337	91	246

Provision for risks and charges

E.	Provision for risks and charges	31.12.2023	31.12.2022	Change
1.	Provisions for retirement benefits and similar obligations	2,571	2,603	- 32
2.	Provisions for taxes	-	-	-
3.	Other provisions	-	320	- 320
	Provisions for risks and charges	2,571	2,923	- 352

This item totalled €2,571,000 (€2,923,000 at 31 December 2022) and consisted entirely of the provision for severance pay for agents (€2,603,000 at 31 December 2022). The provision of €320,000 in 2022, relating to potential insurance and non-insurance disputes, was utilised in the amount of €200,000 in the first half of 2023 following the settlement of a noninsurance dispute, while the remaining €120,000 was released in full in the second half of 2023, since there were no longer any potential liabilities.

Deposits received from reinsurers

F.	Deposits received from reinsurers	31.12.2023	31.12.2022	Change
	Deposits received from reinsurers	2,668	1,600	1,068
	Deposits received from reinsurers	2,668	1,600	1,068

The item, which amounts to €2,668,000 (€1,600,000 in 2022), includes deposits received from reinsurers determined on the basis of current reinsurance treaties. The increase is due to the departure of some reinsurers from the treaty panel, with the consequent allocation of the deposit of the corresponding claims reserve.

Payables and other liabilities

G.	Payables and other liabilities	31.12.2023	31.12.2022	Change
II.	Payables deriving from reinsurance operations	31,205	11,717	19,488
IV.	Payables to banks and financial institutions	1	-	1
VII.	Employee severance indemnity	743	579	164
VIII.	Other payables	23,440	20,604	2,836
IX.	Other liabilities	14,844	9,345	5,499
	Payables and other liabilities	70,233	42,245	27,988

The item "Payables deriving from reinsurance operations" amounts to €31,205,000 (€11,717,000 at 31 December 2022) and was affected by the increase in business during the year.

The following table sets out the breakdown of the "Other payables" item:

VIII. Other payables	31.12.2023	31.12.2022	Change
1. For taxes payable by policyholders	2,932	1,579	1,353
2. Misc. tax charges	2,607	741	1,866
3. To social security and pension institutions	660	519	141
4. Miscellaneous payables	17,241	17,765	- 524
Other payables	23,440	20,604	2,836

The €1,353,000 increase in taxes paid by policyholders reflects the increase in collected premiums in December compared with the previous year. Other tax charges also include the IRES payable of €1,963,000 in 2023, which did not exist at 31 December 2022.

The following table sets out the breakdown of the "miscellaneous payables" item:

4. Miscellaneous payables	31.12.2023	31.12.2022	Change
1. Trade payables	3,719	4,694	- 975
2. Payables for invoices to be received	304	2,322	- 2,018

3. Payables to intermediaries for commission bonuses (rappel) and additional commissions	5,956	4,025	1,931
4. Payables to personnel	3,376	2,534	842
6. Other miscellaneous payables	3,886	4,190	- 304
Miscellaneous payables	17,241	17,765	- 524

Trade payables include invoices still to be paid at the end of the year and are substantially in line with 31 December 2022. Invoices to be received show a substantial decrease, mainly due to contracts entered into for activities carried out in 2022, for which an invoice had not yet been received.

The increase in payables to intermediaries for commission bonuses and additional commissions, amounting to €5,956,000, is closely linked to the strong growth in production, the increase in the business lines and the technical performance underlying this item.

Payables to personnel, amounting to €3,376,000, reflect an increase in payables relating to the retention policies introduced by the Company for its employees (MbO), as well as provisions for unused leave and Xmas/holiday bonuses.

Miscellaneous payables include €2,998,000 for the portion still owing to the shareholders of Elba Assicurazioni following the acquisition of the Company by REVO S.p.A. An escrow account was opened to secure this debt, which is presented in the item "Other receivables" in these financial statements. In the absence of tax disputes, the escrow account will be reduced by €1,000,000 annually until the account balance is zero on 30 December 2026.

The breakdown of other liabilities is set out in the following table:

IX. Other liabilities	31.12.2023	31.12.2022	Change
2. Commissions for premiums in the process of collection	8,740	6,926	1,814
3. Misc. liabilities	6,104	2,419	3,685
Miscellaneous payables	14,844	9,345	5,499

Commissions for premiums in the process of collection reflect the significant growth in the insurance portfolio during the year and, in particular, the performance of policies written and verified, which was heavily concentrated in December due to the seasonal nature of the specialty lines market.

Miscellaneous liabilities include €4,815,000 relating to pending premium collections and €1,207,000 relating to provisions for invoices to be received.

Accrued expenses and deferred income

The accrued expenses and deferred income item was zero at 31 December 2023.

Assets and liabilities relating to Group companies and other investee companies

The breakdown of assets and liabilities relating to companies in the REVO Insurance Group is set out in the following table and in Annex 16 to these notes.

	REVO Underwriting
	ASSETS	LIABILITIES
Equity investments in Group companies	150
Receivables from intermediaries	576
Miscellaneous receivables	72
Payables to intermediaries		625
Total	798	625

Guarantees, commitments and other memorandum accounts

As shown in Annex 17 to the notes, at 31 December 2023 the memorandum accounts totalled €224,220,000 (€186,066,000 at 31 December 2022) and refer to:

security deposits of €12,000;
deposits of securities with third parties of €224,203,000 (€200,972,000 with Mediobanca, €2,775,000 with Quintet Private Bank (Europe) S.A, €10,407,000 with Intesa and €10,049,000 with Unicredit Banca), stated at their carrying amount net of capital losses;
other guarantees received totalling €4,000.

There is no information to report on contingent liabilities not shown in the statement of financial position pursuant to Article 2427, paragraph 1(9) of the Italian Civil Code.

Although not reported in the memorandum accounts, for some insurance contracts written by the Company, collateral guarantees were obtained (mainly pledges on life policies and bank guarantees) to be used, in the event of enforcement of the policy, to ensure the recovery of any sums paid to policyholders.

Income statement

Technical account of the non-life classes

Earned premiums net of reinsurance (item I.1)

	Item I.1	31.12.2023	31.12.2022	Change
a.	Gross premiums written	216,239	131,388	84,851
b.	(-) Premiums ceded to reinsurance	- 99,954	- 53,823	- 46,131
c.	(-) Change in premium reserve	- 27,344	- 33,990	6,646
d.	Change in ceded premium reserve	8,900	11,835	- 2,935
Total		97,841	55,410	42,431

The Company's gross premiums written relate to the Italian and foreign portfolio (under the freedom to provide services regime) for direct and indirect business, as set out in the following table:

	31.12.2023
Gross premiums written	Italy	Abroad	Total
Direct	198,044	15,132	213,176
Indirect	0	3,063	3,063
Gross premiums written	198,044	18,195	216,239

There was a significant increase in gross premiums earned (+64.6% compared with 31 December 2022), due to:

the launch of new products on the market, partly due to the expansion into the new classes;
the expansion of the distribution network, which as at 31 December 2023 consisted of 111 multi-firm agents (116 at 31 December 2022) and 67 brokers (53 at 31 December 2022).

During the period there was a significant increase not only in Suretyship (+16.3% compared with 2022), which remained the main business class, but also in other classes historically managed by the Company (Other damage to property, General liability and Fire), mainly due to the impetus provided by the expansion of the product range and the distribution network. At the end of the year, the insurance portfolio was more diversified, with the Suretyship class accounting for 39.4% of total premiums (down from 55.7% at 31 December 2022), due to greater exposure to other classes, the proportion of which increased from 44.3% at 31 December 2022 to 60.6% at 31 December 2023.

For further comments on business performance in 2023, please see the relevant section of the Report on Operations.

The following tables set out the breakdown of earned premiums by class, with risks underwritten and risks ceded shown separately:

	Risks underwritten	Gross premiums	Chge in Premiums	Earned premiums 2023	Earned premiums 2022	Change
1	Accident	1,916	-172	1,744	429	1,315
2	Health	4311	-255	4,056	8	4,048
3	Land vehicles	2,732	-1,219	1,513	-	1,513
4	Railway rolling stock	1,789	-1,574	215	-	215
5	Aviation hull	5,652	-1,023	4,629	195	4,434
6	Marine hull (sea, lake and river and canal vessels)	10,318	-520	9,798	1,347	8,451
7	Goods in transit	4,936	106	5,042	898	4,144
8	Fire and natural forces	28,010	-1,236	26,774	6,195	20,579
9	Other damage to property	34,018	-4,349	29,669	14,759	14,910
11	Aviation liability	935	-119	816	76	740
12	Marine liability (sea, lake and river and canal vessels)	359	-26	333	48	285

13	General liability	31,846	-1,895	29,951	11,189	18,762
14	Credit	507	-43	464	207	257
15	Suretyship	85,176	-13,538	71,638	61,656	9,982
16	Financial loss	3,161	-1,053	2,108	381	1,727
17	Legal expenses	558	-428	130	-	130
18	Assistance	13	-1	12	10	2
Total		216,239	- 27,344	188,893	97,398	91,495

	Risks ceded	Gross premiums	Chge in Premiums	Earned premiums 2023	Earned premiums 2022	Change
1	Accident	1,368	-240	1,128	169	959
2	Health	1,968	-121	1,847	6	1,841
3	Land vehicles	1,300	-477	823		823
4	Railway rolling stock	1,458	-1,265	194		194
5	Aviation hull	5,381	-1,009	4,372	183	4,189
6	Marine hull (sea, lake and river and canal vessels)	4,558	-171	4,387	540	3,847
7	Goods in transit	2,717	165	2,882	847	2,035
8	Fire and natural forces	14,425	-1,334	13,091	2,769	10,322
9	Other damage to property	9,806	-463	9,343	2,019	7,324
11	Aviation liability	898	-118	780	240	540
12	Marine liability (sea, lake and river and canal vessels)	186	-10	176	19	157
13	General liability	17,059	-38	17,021	5,079	11,942
14	Credit	-	-	-	-	-
15	Suretyship	37,002	-3,531	33,471	29,792	3,679
16	Financial loss	1,822	-286	1,536	317	1,219
17	Legal expenses	0	-	0		0
18	Assistance	7	-2	5	9	-4
Total		99,954	-8,900	91,054	41,989	49,065

Transfer of share of profit from investments (Item I.2)

Item I.2	31.12.2023	31.12.2022	Change
Share of profit from investments transferred from non-technical account	1,998	0	1,998
Share of profit transferred from non-technical account	1,998	0	1,998

The share of profit from investments transferred from the non-technical account is calculated in accordance with paragraph 1 of Article 22 of ISVAP Regulation No. 22.

Other technical income, net of reinsurance (Item I.3)

Item I.3	31.12.2023	31.12.2022	Change
Other technical income, net of reinsurance	2,495	886	1,629
Total	2,495	886	1,629

This item includes:

cancellation of commissions on premiums in arrears at the end of the previous year of €1,005,000 (€270,000 at 31 December 2022);
cancellation of reinsurance premiums ceded in arrears at the end of the previous year of €1,489,000 (€595,000 at 31 December 2022).

Claims-related expenses, net of reinsurers' share (Item I.4)

Item I.4	31.12.2023	31.12.2022	Change
Amounts paid	67,680	16,170	51,510
(-) Amounts paid ceded	-16,036	-6,223	-9,813
Change in recoveries	-36,572	-7,530	-29,042
Change in recoveries ceded	3,101	3,744	-643
Change in the claims reserve	50,188	11,755	38,433
(-) Change in the claims reserve ceded	-30,191	-3,906	-26,285
Claims-related expenses	38,170	14,010	24,160

Claims-related expenses at 31 December 2023 amounted to €81,296,000 gross of reinsurance (€20,395,000 at 31 December 2022) and €38,170,000 net of reinsurance (€14,010,000 at 31 December 2022).

In absolute terms, net claims-related expenses increased by €24,160,000, mainly due to Class 8-Fire (€7,443,000), Class 9-Other damage to property (€5,895,000) and Class 15-Suretyship (€1,513,000). In contrast, Class 13-General liability decreased by €1,792,000. With regard to the new classes for which authorisation was obtained during 2022, increases were recorded of €6,287,000 for Class 6-Marine hull, €2,026,000 for Class 7-Goods in transit and €2,019,000 for Class 2-Health.

In summary, gross amounts paid include:

Gross amounts paid	31.12.2023	31.12.2022	Change
Indemnities and direct expenses - current year	29,246	7,123	22,123
Settlement expenses - current year	509	399	110
Total paid - current year	29,754	7,522	22,232

Indemnities and direct expenses - previous years	37,236	8,235	29,001
Settlement expenses - previous years	669	413	256
Total paid - previous years	37,905	8,648	29,257
Gross amounts paid	67,659	16,170	51,489

As can be seen from the table above, there was a significant increase in indemnities and expenses paid and relating to previous years, mainly attributable to the Suretyship class.

In particular, in previous years there was an increase due to Class 15-Suretyship, reflecting the payment of a large claim reported and reserved in 2022, adequately covered by the collateral that had been constituted as usual to protect against this type of risk and which reduced the enforced amount.

However, the increase in indemnities and expenses paid for previous years in the Suretyship class was offset by the increase in recoveries and sums to be recovered relating to previous years, minimising the impact on the income statement. Meanwhile, in the current year, an increase was recorded, in particular, in Class 9-Other damage to property, mainly due to Agro LoB settlements.

The following tables show the breakdown by class, respectively gross and net of reinsurance:

	Gross claims-related expenses	31.12.2023	31.12.2022	Change
1	Accident	425	224	201
2	Health	3,337	0	3,337
3	Land vehicles	584	0	584
4	Railway rolling stock	24	0	24
5	Aviation hull	2,180	0	2,180
6	Marine hull (sea, lake and river and canal vessels)	13,479	891	12,588
7	Goods in transit	5,964	511	5,453

8	Fire and natural forces	23,553	1,568	21,985
9	Other damage to property	18,145	5,127	13,018
11	Aviation liability	3	0	3
12	Marine liability (sea, lake and river and canal vessels)	110	0	110
13	General liability	3,503	4,280	-777
14	Credit	16	0	16
15	Suretyship	9,932	7,795	2,137
16	Financial loss	33	0	33
17	Legal expenses	0	0	-
18	Assistance	8	0	8
	Total	81,296	20,395	60,901

	Net claims-related expenses	31.12.2023	31.12.2022	Change
1	Accident	287	190	97
2	Health	2,019	0	2,019
3	Land vehicles	361	0	361
4	Railway rolling stock	15	0	15
5	Aviation hull	183	0	183
6	Marine hull (sea, lake and river and canal vessels)	6,827	540	6,287
7	Goods in transit	2,328	302	2,026
8	Fire and natural forces	8,286	843	7,443
9	Other damage to property	10,552	4,657	5,895
11	Aviation liability	1	0	1
12	Marine liability (sea, lake and river and canal vessels)	65	0	65
13	General liability	1,420	3,212	-1,792
14	Credit	16	0	16
15	Suretyship	5,779	4,266	1,513
16	Financial loss	26	0	26
17	Legal expenses	0	0	-
18	Assistance	5	0	5
	Total	38,170	14,010	24,160

The overall evolution of net claims-related expenses at 31 December 2023, measured in terms of net loss ratio was, albeit increasing, appropriate for the development of production, standing at 39.0%, compared with 25.3% in 2022. The total ratio of claims to premiums, gross of reinsurance, was 43.1%, compared with 20.9% at 31 December 2022.

Some particularly significant events occurred during 2023 which, thanks to cessions to reinsurance, had a more limited impact on the net result for the year. In particular, the following should be noted:

The flooding in Emilia-Romagna, which had an effect of approximately €3.5 million gross and €900,000 net of reinsurance;
The weather events in northern Italy in July and August, which had a total impact of approximately €14.1 million gross and €2.8 million net of reinsurance;

In the Marine LoB, specifically in Class 6-Marine hull, four large claims were made totalling €6,036,000 and which, net of reinsurance, had an impact of €1,885,000 on the income statement.

The increase in Class 9-Other damage to property was due to the development of business underwritten in the Agro LoB.

The claims reserve was strengthened by setting aside a higher IBNR, net of reinsurance, of €1,628,000, the result of a normal dynamic of increased overall business.

The technical performance of the Suretyship class in 2023, due to the Company's particular focus on customer retention and risk assessment during the underwriting phase, once again proved particularly profitable, although only slightly higher than in the previous year.

The ratio, gross of reinsurance, of claims paid and reserved, net of recoveries, to earned premiums, was 13.9% (12.6% at 31 December 2022), and 15.1% net of reinsurance, compared with 13.4% at 31 December 2022.

Other damage to property: in terms of value, net claims for the period increased by €5,895,000 compared with the previous year. The ratio of claims to net premiums was 51.9%, compared with 36.6% in 2022. IBNR provisions totalling €1,276,000 had been made at 31 December 2023, €516,000 more than at 31 December 2022. The increase in Class 9 claims mainly reflects the development of the business underwritten in the Agro LoB;
General liability: as specified above, this line of business improved in 2023, contributing a gain of €1,792,000 compared with 2022. The gross loss ratio was 11.7% (38.3% in 2022) and 11.0% net of reinsurance (52.6% in 2022). The marked improvement in the class is due to the more than proportional increase in production in the period, compared with new claims reported and/or paid during the period and the positive run-off of the reserves set aside in 2022. IBNR provisions totalled €1,170,000, an increase of €482,000 compared with 31 December 2022;
Fire: during the year there was an increase of €7,443,000 in net claims-related expenses, mainly attributable to claims in the current year, and in particular to the flooding in Emilia-Romagna already mentioned, which had a negative effect of around €900,000, and to weather events in northern Italy in July and August, which had a net effect of €2,802,000. The net loss ratio was 60.6%, compared with 24.6% in 2022, while before reinsurance the percentage increased to 88.0%, compared with 25.3% in 2022;
Marine hull: an increase of €6,287,000 was recorded in 2023, mainly attributable to reserved current-year claims. The increase in claims is linked both to a significant increase in the business underwritten and to four major losses that had a substantial impact on the performance of this line of €6,036,000, gross of reinsurance (€1,885,000 net of reinsurance).

Reversals and profit-sharing, net of reinsurance (Item I.6)

Item I.6	31.12.2023	31.12.2022	Change
Reversals and profit-sharing, net of reinsurance	-26	58	84
Reversals and profit-sharing, net of reinsurance	-26	58	84

It should be noted that this item relates entirely to the profit-sharing reserve set aside at year-end on the basis of existing contractual agreements.

Operating expenses (Item I.7)

Operating expenses	31.12.2023	31.12.2022	Change
a. Acquisition commissions	47,054	30,705	16,349
b. Other acquisition expenses	12,235	10,614	1,621
d. Collection commissions	195	60	135
e. Other administrative expenses	19,344	17,410	1,934
f. (-) Commissions and share of profits received from reinsurers	-39,075	-26,197	-12,878
Operating expenses	39,753	32,592	7,161

Acquisition commissions of €47,054,000 (including €6,332,000 for incentives to the network). The increase in commissions is in line with the development of the business, with an impact on gross premiums of 21.8% (23.4% at 31 December 2022). The reduction was due to the different premium portfolio mix and greater exposure to new distribution channels, mainly brokers;
Other acquisition expenses of €12,235,000 (including €8,710,000 related to personnel costs in the technical and commercial area). Other acquisition expenses as a percentage of gross written premiums increased from 8.1% in 2022 to 5.7% at 31 December 2023, due in particular to the lower percentage of personnel costs;
Collection commissions of €195,000 relating to payroll expenses incurred in managing the collection of insurance contracts;
Other administrative expenses of €19,344,000 mainly refer to the following costs: payroll costs in the Administrative, ICT and Services Area of €7,890,000, travel and entertainment expenses of €693,000, miscellaneous consulting and EDP services expenses of €6,582,000, office expenses of €1,124,000, remuneration of the Board of Directors, Board of Statutory Auditors, Supervisory Board and External Auditor of €1,345,000, depreciation of tangible assets of €124,000 and miscellaneous expenses of €1,586,000. Other administrative expenses and collection commissions as a percentage of gross written premiums increased from 13.3% in 2022 to 9.0% on 31 December 2023.

For details of one-off costs related to the Company's stock market listing, please see the section entitled "Revenue or cost items of exceptional size or impact" in these financial statements.

Information on the average number of employees and the costs incurred in personnel and their distribution between the respective allocation items is provided in Annex 32 to these notes.

Other technical expenses, net of reinsurance (Item I.8)

Item I.8	31.12.2023	31.12.2022	Change
Other technical expenses, net of reinsurance	8,770	2,128	6,642
Total	8,770	2,128	6,642

This item includes:

premiums cancelled during the year, which were in arrears by €5,128,000 at the end of the previous year;
reinsurance commissions cancelled during the year and the relevant premiums in arrears for the previous year of €562,000;
reinsurance expenses of 663,000;
estimated reinstatement premiums on XL treaties relating to reserved claims of €2,418,000.

The change compared with the previous year is mainly due to the estimate for reinstatement premiums for claims not yet fully closed and the increase in business.

Equalisation reserves (Item I.9)

Item I.9	31.12.2023	31.12.2022	Change
Change in the equalisation reserve	246	92	154
Total	246	92	154

This item includes the change in the provision made during the year in accordance with Articles 40 et seq. of ISVAP Regulation No. 16 of 4 March 2008.

Development of class technical items

The summary schedule of technical accounts for each class is contained in Annex 25 to these notes, while Annex 26 includes the summary schedule of the technical account summarising all of the non-life classes in the Italian portfolio. Annex 31 provides details of gross premiums written acquired under the freedom to provide services regime. For the drafting of Annex 25, common entries have been allocated to each individual class as follows:

• for the portion of profit on investment transferred from the non-technical account, the criterion for allocating to the individual class was obtained in accordance with the calculation recommendations in ISVAP Regulation No. 22 of 4 April 2008, as described above;

• the other common entries have been allocated to the individual classes on the basis of the amount of premiums. With regard to the result of the technical account and the performance for the year, please see the Report on Operations in this financial statements file.

Non-technical account

Investment income

Item III.3	Investment income	31.12.2023	31.12.2022	Change
a.	Income from shares and holdings	23	3	20
b.	Income from other investments	4,741	3,374	1,367
c.	Write-backs of value adjustments on investments	1,939	0	1,939
d.	Gains on investment disposals	141	700	-559
	Investment income	6,844	4,077	2,767

The breakdown of investment income is provided in Annex 21 to these notes.

The investment income amount of €4,741,000 mainly includes interest of €3,973,000 accrued on government bonds and of €484,000 on listed bonds.

Financial income, in addition to interest income and positive discounts, benefited from reversals of value adjustments of €1,939,000, resulting from the write-downs made last year in response to rising interest rates.

Capital and financial expenses

Item III.3	Capital and financial expenses	31.12.2023	31.12.2022	Change
a.	Investment management expenses and interest expense	439	449	-10
b.	Value adjustments on investments	213	9,224	-9,011
c.	Losses on investment disposals	633	634	-1
	Capital and financial expenses	1,285	10,307	-9,022

The breakdown of capital and financial expenses is provided in Annex 23 to these notes. Investment management expenses of €439,000 mainly include indirectly attributable expenses of €306,000. Value adjustments amounted to 213,000, down sharply from €9,224,000 at 31 December 2022. Losses on disposals of investments of €633,000 are due exclusively to government bonds.

Other income

Item III.7	Other income	31.12.2023	31.12.2022	Change
	Other income	451	55	397
	Other income	451	55	397

This item mainly includes the utilisation of the entire amount set aside in 2022 to cover risks for the settlement of a noninsurance dispute (€200,000) and the release of the remaining €120,000. Other income also includes withdrawals of €42,000 for use of the agents' provision and €44,000 relating to the recovery of costs of personnel seconded to the subsidiary REVO Underwriting S.r.l.

Other expenses

Item III.8	Other expenses	31.12.2023	31.12.2022	Change
	Other expenses	11,915	10,752	1,163
	Other expenses	11,915	10,752	1,163

Other expenses of €11,915,000 include, in particular:

goodwill amortisation of €8,904,000, recognised in intangible assets following the acquisition of Elba Assicurazioni S.p.A., which was then merged by reverse incorporation into REVO S.p.A;
amortisation of other intangible assets of €3,009,000, relating in particular to the introduction of the new SAP accounting management system and the OverX platform, designed to simplify the underwriting processes;

Extraordinary income

Item III.10	Extraordinary income	31.12.2023	31.12.2022	Change
	Extraordinary income	829	1,126	-297
	Extraordinary income	829	1,126	-297

In particular, this item includes:

€217,000 increase in the income tax provision;
€549,000 of foreign exchange gains;
€39,000 of profits from the sale of company cars
€24,000 of miscellaneous contingent assets.

Extraordinary expenses

Item III.11	Extraordinary expenses	31.12.2023	31.12.2022	Change
	Extraordinary expenses	1,087	682	405
	Extraordinary expenses	1,087	682	405

In particular, this item includes:

€651,000 of foreign exchange losses;
€170,000 for the disposal of incremental expenses relating to the Via Mecenate property;
€11,000 of losses on disposals of company mobile phones;
€255,000 of miscellaneous contingent liabilities.

Taxes

III.14 Income tax for the year	31.12.2023	31.12.2022	Change
Income tax	4,989	810	4,179
Change in deferred tax assets	-3,559	-2,615	-944
Extraordinary expenses	1,430	-1,805	3,235

The balance for the item consists of current taxes of €4,989,000 (of which €4,552 is IRES (corporation tax) and €437,000 is IRAP (regional business tax) and €-3,559,000 in a change in prepaid taxes.

The calculation of current IRES and IRAP benefited from €2,863,000 in a tax relief for the New Patent Box (hereinafter "NPB"), linked to OverX, a software application that is particularly innovative and potentially worthy of legal protection. Decree-Law No. 146 of 21 October 2021, "Urgent measures on economic and fiscal matters, to protect employment and for requirements that cannot be deferred", published in the Official Journal of 21 October 2021 No. 252, which came into force on 22 October 2021, made radical changes to the "patent box" system for tax relief on income from the direct or

indirect use of certain intangible assets, which was introduced in 2015. The government amendment to the 2022 Budget

Law, approved on 28 December 2021, confirmed the repeal of the Patent Box (old scheme), but corrected the start date indicated in the Decree-Law. The scheme is cancelled with effect from the 2021 financial year (2021-2025 five-year period), while the options for the 2020-2024 period remain valid, even if exercised after 22 October 2021, although effectively they are weaker.

The option is valid for five tax periods and is irrevocable and renewable.

Relief may be obtained on costs incurred directly or indirectly in the conduct of business activities, for the research and development of copyrighted software, industrial patents, designs and models. Research and development may be carried out inside the undertaking or externally by means of research agreements with universities, research organisations, or companies not directly or indirectly linked to the entity seeking the relief.

The costs incurred for eligible intangible assets benefit from a specific incremental deduction of 110% for corporation tax purposes. The option exercised is valid for both regional business tax (IRAP) and corporation tax (IRES) purposes.

The following table, pursuant to Italian accounting standards (OIC No. 25), sets out the reconciliation between the tax rate and the effective rate:

	Effect of increases or (decreases) compared with the ordinary rate		31.12.2023
	IRES
a	Result before tax		7,260
a'	IRES rate		24%
	Expected corporation tax (IRES) for the current year		1,742
	Expected tax increase
	Multi-year commissions	23,249
	Change in net claims reserve	14,998
	Allocation to productivity premium	2,059
	Amortisation of goodwill	8,904
	Other increases	598
b	Total increase	49,808
c	Total expected tax increase		11,954
	Expected tax decrease
	Multi-year commissions	13,798
	Change in net claims reserve	5,056
	NPB deduction	9,288
	Other decreases	2,084
d	Total decrease	30,225
e	Total expected tax decrease		7,254

	Tax losses	5,168
	ACE (Support for Economic Growth scheme)	2,709
	Total other decreases	7,877
	Total other expected tax decreases		1,891

f	IRES taxable base		18,966
=a+b+d
g=f x a'	IRES for the current year		4,552
h= g/a	Effective IRES rate		62.70%
	IRAP
i	Technical result		15,421
i'	IRAP rate		6.82%
	Expected IRAP for the current year		1,052
	Expected tax increase
	Non-deductible payroll costs	15,362

	Other administrative expenses	1,934
	other increases	185
l	Total increase	17,481
m	Total expected tax increase		1,192

	Expected tax decrease
	Deduction for certain employees (employee tax wedge)	14,356
	Amortisation of intangible operating assets	2,708
	Other decreases	136
	NPB deduction	9,288
n	Total decrease	26,488
o	Total expected tax decrease		1,806

p=i+l+n	IRAP tax base		6,414
q=p x i'	IRAP for the current year		437
r= q/i	Effective IRAP rate		2.84%

	Summary
a	Result before tax		7,260
s=g+q	IRES and IRAP for the current year		4,989
t=s/a	Total tax rate for the year (current IRES + IRAP)		68.72%
u=a'+i'	theoretical rate (IRES + IRAP)		30.82%

v	Prepaid taxes 2023		-9,117
v'	Prepaid taxes 2022		5,557
v'' (v-v')	Balance of prepaid taxes for temporary differences		-3,559
y=s+v''	Taxes for the year including prepaid tax effect		1,430
z=y/a	Effective tax rate for the year (including previous prepaid tax effect)		19.70%

For details of prepaid taxes, please see the section on assets relating to the receivables item in these notes.

Information on the income statement

As already described in the Report on Operations, the gross positive balance for the year ended 31 December 2023 was €7,260,000, net of IRES and IRAP taxes of €4,989,000 and the positive balance of deferred taxes of €3,559,000, resulting in a profit for the year of €5,830,000.

For details of relations with Group companies, a breakdown of premiums in the Italian and foreign portfolios and a summary of costs relating to personnel, directors and statutory auditors, see respectively Annexes 30, 31 and 32 to these notes.

Part C - Other information

Revenue or cost elements of exceptional size or impact

During the year, in accordance with Article 2427, paragraph 13, of the Italian Civil Code, exceptional costs of €1,288,000 were incurred, mainly linked to the voluntary tender offer (takeover bid), the application for authorisation from IVASS to operate in the 17-Legal expenses class and tax assistance for the facilitation of New Patent Box.

Agreements not reflected in the statement of financial position

Pursuant to Article 2427, paragraph 22-ter of the Italian Civil Code, there are no agreements that are not reflected in the statement of financial position or that could significantly influence the Company's financial position or results of operations.

Management and coordination activity

REVO Insurance S.p.A. prepares the consolidated financial statements pursuant to Article 154-ter of Legislative Decree No. 58/1998 (TUF) and ISVAP Regulation No. 7 of 13 July 2007, as subsequently amended and supplemented, in accordance with the IAS/IFRS international accounting standards issued by the IASB and endorsed by the European Union. A copy of the consolidated financial statements at 31 December 2022 of REVO Insurance is available on the Company website (www.revoinsurance.com).

The Company manages and coordinates subsidiary REVO Underwriting S.r.l. and is also the parent company of the REVO Insurance Group, entered in the Register of Insurance Groups under No. 59.

Information on personnel, directors and statutory auditors

Annex 32 to these notes shows the average headcount during the year and its breakdown by category.

In 2023 the average Group headcount was 175 (19 executives, 152 employees and 4 contract staff), with a total cost of €15,765,000. In the previous year, the average headcount was 128 (18 executives, 107 employees and 4 contract staff), with a total cost of €13,418,000.

At 31 December 2023, the Company's Board of Directors consisted of a chairman, a chief executive officer and five directors. The remuneration payable for 2023 amounts to €700,000 (€512,000 at 31 December 2022).

The Company's Board of Statutory Auditors consists of a chairman, two standing auditors and two alternate auditors. The fees payable for 2022 amount to €214,000 (€132,000 at 31 December 2022).

Fees for auditing and services other than auditing

In the following diagram, pursuant to Article 149 of the Regulation on Issuers, sets out the fees accrued during the year for services provided by the External Auditor and entities in its network (the amounts shown do not include expenses, Consob contributions and VAT):

Type of service	Company	Remuneration
Statutory audit	KPMG S.p.A.	139
Solvency II review	KPMG S.p.A.	70
Certification services	KPMG S.p.A.	75
		284

Statement of cash flows

The Company's statement of cash flows at 31 December 2023 is set out below:

	2023	2022
A. Cash flows from operating activities
Results of operations for the period	5,830	-7,282
Change in technical provisions	38,663	29,420
Change in payables from security deposits	0	0
Change in severance indemnity	164	125
Change in provisions for risks and charges	-352	-684
Change in reinsurance deposits	1,068	349
Change in payables from reinsurance operations	19,488	9,078
Change in other liabilities	5,499	7,607
Change in receivables	-36,323	-44,322
Change in accrued income and prepaid expenses	-111	-238
Change in miscellaneous payables	2,836	13,928
Change in other assets	-168	-16
Cash flow from operating activities (A)	36,594	7,965
B. Cash flows from investing activities
Change in intangible assets	2,665	-86,754
Change in financial investments	-31,670	-64,150
Change in tangible assets and stocks	-21	-131
Cash flow from investment activities (B)	-29,026	-151,035

C. Cash flows from financing activities
Third-party assets	0	0
Change in payables to banks	0	0
Own capital
Change in negative reserve for treasury shares	-6,557	0
Increase in equity reserves due to merger	0	143,508
Dividends paid	0	0
Flow from financing activity (C)	-6,557	143,508
Change in cash and cash equivalents (A + B + C)	1,011	438
Cash and cash equivalents
Bank current accounts and cash at 31/12/N	5,456	4,445
Bank current accounts and cash at 31/12/N-1	4,445	4,007

Verona, 13 March 2024 REVO Insurance S.p.A.

Chief Executive Officer (Alberto Minali)

Annexes to the notes

88 TABLE OF CONTENTS | Schedules attached to the notes to the financial statements

Annexes to the notes

Company REVO INSURANCE S.p.A.

Notes to the financial statements - Annex 1

STATEMENT OF FINANCIAL POSITION – NON-LIFE OPERATIONS ASSETS

						Values for the year
A.		RECEIVABLES FROM SHAREHOLDERS FOR SUBSCRIBED SHARE CAPITAL NOT PAID UP					0 1
		of which called capital			0 2

B.		INTANGIBLE ASSETS
		1. Acquisition commissions to be amortised
		a) life classes	3	0
		b) non-life classes	4	0	0 5
		2. Other acquisition expenses			0 6
		3. Start-up and expansion costs			8 7
		4. Goodwill			71,231 8
		5. Other multi-year costs			15,189 9		86,428 10

C.		INVESTMENTS
	I	- Land and buildings
		1. Property intended for company use			0 11
		2. Property for third-party use			0 12
		3. Other property			0 13
		4. Other rights in rem			0 14
		5. Assets under construction and advances			0 15	0 16
	II	- Investments in Group companies and other investee companies
		1. Shares and holding in companies:
		a) parent companies	17	0
		b) subsidiaries	18	150
		c) affiliates	19	0
		d) associates	20	3
		e) other	21	556	709 22
		2. Bonds issued by companies:
		a) parent companies	23	0
		b) subsidiaries	24	0
		c) affiliates	25	0
		d) associates	26	0
		e) other	27	0	0 28
		3. Loans to companies:
		a) parent companies	29	0
		b) subsidiaries	30	0
		c) affiliates	31	0
		d) associates	32	0
		e) other	33	0	0 34	709 35
					rried forward		86,428

ASSETS

	Values for the year
					carried
					forward				86,428

	C. INVESTMENTS (continued)
	III - Other financial investments
	1. Shares and holdings
	a) Listed shares	36	0
	b) Unlisted shares	37	0
	c) Units	38	0	39	0
	2. Mutual fund units			40	2,775
	3. Bonds and other fixed-income securities
	a) listed	41	213,626
	b) unlisted	42	0
	c) convertible bonds	43	0	44	213,626
	4. Loans
	a) collaterised loans	45	0
	b) loans on policies	46	0
	c) other loans	47	0	48	0
	5. Units in mutual investments			49	0
	6. Deposits with credit institutions			50	0
	7. Miscellaneous financial investments			51	0	52	216,401
I
V	- Deposits with ceding companies					53	0	54	217,110
D	INVESTMENTS FOR THE BENEFIT OF LIFE INSURANCE POLICYHOLDERS WHO BEAR THE ASSOCIATED RISK AND INVESTMENTS ARISING FROM PENSION FUND MANAGEMENT
I	- Investments relating to the performance of investment funds and market indices					55	0
II	- Investments arising from pension fund management					56	0	57	0

D bis.	REINSURERS' SHARE OF TECHNICAL PROVISIONS
	I - NON-LIFE CLASSES
	1. Premium reserve			58	61,833
	2. Claims reserve			59	45,473
	3. Profit-sharing and reversals reserve			60	0
	4. Other technical provisions			61	0	62	107,306
	II - LIFE CLASSES
	1. Mathematical reserves			63	0
	2. Supplementary insurance premium reserve			64	0
	3. Reserve for amounts payable			65	0
	4. Profit-sharing and reversals reserve			66	0
	5. Other technical provisions			67	0
	6. Technical provisions where the investment risk
	is borne by policyholders and reserves arising from
	pension fund management			68	0	69	0	70	107,306
					to be carried
					forward				410,844

ASSETS

				Values for the year
			carried
			forward		410,844

E.	I	RECEIVABLES - Receivables, arising from direct insurance operations, in respect of:
		1. Policyholders
		a) for premiums for the year 46,752 71
		b) for premiums for previous years 0 72	46,752 73
		2. Insurance intermediaries	4,553 74
		3. Company current accounts	0 75
		4. Policyholders and third parties for amounts to be recovered	25,031 76	76,336 77
	II	- Receivables, arising from reinsurance operations, in respect of:
		1. Insurance and reinsurance companies	5,614 78
		2. Reinsurance intermediaries	0 79	5,614 80
		III - Other receivables		27,337 81	109,287 82

F.		OTHER ASSETS
	I	- Tangible assets and stocks:
		1. Furniture, office machinery and internal means of transport	496 83
		2. Movable property entered in public registers	84
		3. Plant and equipment	85
		4. Miscellaneous stocks and goods	86	496 87
	II	- Cash and cash equivalents
		1. Bank and postal current account deposits	5,455 88
		2. Cheques and cash balances	1 89	5,456 90
		IV - Other assets
		1. Reinsurance transition accounts	0 92
		2. Miscellaneous assets	184 93	184 94	6,136 95
G
		ACCRUALS AND DEFERRALS
		1. For interest		1,382 96
		2. For rent		0 97
		3. Other accruals and deferrals		1,389 98	2,780 99
		TOTAL ASSETS			529,047 100

Values for the previous year
	carried forward		342,749




36,438
0	36,438 73
	3,912 74
	0 75
	5,316 76	45,666 77

	969 78
	0 79	969 80
		26,328 81	72,963 82



	544 83
	10 84
	11 85
	0 86	475 87

	4,444 88
	1 89	4,445 90

	0 92
	16 93	16 94	4,936 95


		552 96
		0 97
		2,117	2,669
		98	99
TOTAL ASSETS			423,317 100

LIABILITIES AND SHAREHOLDERS' EQUITY

					Values for the year

A.		SHAREHOLDERS' EQUITY
	I	- Subscribed share capital or equivalent provision			6,680 101
	II	- Share premium reserve			170 102
	III	- Revaluation reserves			0 103
	IV	- Legal reserve			1,385 104
	V	- Statutory reserves			0 105
	VI	- Reserves for parent company shares			0 400
	VII	- Other reserves			202,908 107
	VIII	- Retained earnings (losses carried forward)			0 108
	IX	- Profit (loss) for the year			5,830 109
	X	- Negative reserve for own shares			-7,803 401	209,170 110

B.		SUBORDINATED LIABILITIES				0 111

C.		TECHNICAL PROVISIONS
	I	- NON-LIFE CLASSES
		1. Premium reserve	112	155,840
		2. Claims reserve	113	88,196
		3. Profit-sharing and reversals reserve	114	32
		4. Other technical provisions	115	0
		5. Equalisation reserves	116	337	244,405 117
	II	- LIFE CLASSES
		1. Mathematical reserves	118	0
		2. Supplementary insurance premium reserve	119	0
		3. Reserve for amounts payable	120	0
		4. Profit-sharing and reversals reserve	121	0
		5. Other technical provisions	122	0	0 123	244,405 124
D.		TECHNICAL PROVISIONS WHERE THE INVESTMENT RISK IS BORNE BY POLICYHOLDERS AND RESERVES ARISING FROM PENSION FUND MANAGEMENT
	I	- Reserves relating to contracts whose performance is connected to
		investment funds and market indices			0 125
	II	- Reserves arising from pension fund management			0 126	0 127
				to be carried
				forward		453,575

	Values for the previous year

	6,680 101
	170 102
	0 103
	1,385 104
	0 105
	0 400
	210,190 107
	0 108
	-7,282 109
	+ 1.247% 401	209,896 110

		0 111



128,496 112
38,008 113
58 114
0 115
91 116	166,653 117
0 118
0 119
0 120
0 121
0 122	0 123	166,653 124




	0 125
	0 126	0 127
to be carried forward		376,549

LIABILITIES AND SHAREHOLDERS' EQUITY

				Values for the year
			carried
			forward		453,575

E.		PROVISIONS FOR RISKS AND CHARGES
	1.	Provisions for retirement benefits and similar obligations		2,571 128
	2.	Provisions for taxes		0 129

	3.	Other provisions		0 130	2,571 131

F.		DEPOSITS RECEIVED FROM REINSURERS			2,668 132

G		PAYABLES AND OTHER LIABILITIES
	I	- Payables, arising from direct insurance operations, to:
		1. Insurance intermediaries	0 133

		2. Company current accounts	0 134
		3. Policyholders for security deposits and premiums	0 135
		4. Guarantee funds for policyholders	0 136	0 137
	II	- Payables, arising from reinsurance operations, in respect of:
		1. Insurance and reinsurance companies	31,205 138
		2. Reinsurance intermediaries	0 139	31,205 140
	III	- Bonds		0 141
	IV	- Payables to banks and financial institutions		1 142
	V	- Collateralised payables		0 143
	VI	- Misc. loans and other financial debts		0 144
	VII	- Employee severance indemnity		743 145
	VIII	- Other payables
		1. For taxes payable by policyholders	2,932 146
		2. Misc. tax charges	2,607 147
		3. To social security and pension institutions	660 148
		4. Miscellaneous payables	17,241 149	23,440 150
	IX	- Other liabilities
		1. Reinsurance transition accounts	0 151
		2. Commissions for premiums in the process of collection	8,740 152
		3. Misc. liabilities	6,104 153	14,844 154	70,233 155
			to be
			carried
			forward		529,047

	Values for the previous year
carried forward		376,549


	2,603 128
	0 129
	320 130	2,923 131

		1,600 132


0 133
0 134
0 135
0 136	0 137

11,717 138
0 139	11,717 140
	0 141
	0 142
	0 143
	0 144
	579 145

1,579 146
741 147
519 148
17,765 149	20,604 150
0 151
6,926 152
2,419 153	9,345 154	42,245 155
to be carried forward
		423,317

LIABILITIES AND SHAREHOLDERS' EQUITY

			Values for the year
		carried forward			529,047

H.	ACCRUALS AND DEFERRALS
	1. For interest		0 156
	2. For rent		0 157
	3. Other accruals and deferrals		0 158	159	0
	TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY			160	529,047

	Values for the previous year
carried forward		423,317

	0 156
	0 157
	0 158	0 159
		423,317 160

Notes to the financial statements - Annex 3

Company REVO Insurance S.p.A. Year 2023

Table showing the breakdown of the net result for the year between the non-life and life classes

			Non-life operations	Life operations		Total

Result of the technical account		1	15,421	21	41	15,421
Investment income	+	2	6,844		42	6,844
Capital and financial expenses Share of profit from investments transferred	-	3	1,285		43	1,285
to the technical account of the life classes…………….	+			24	44
Share of profit from investments transferred to the technical account of the non-life classes…………….
Interim operating	-	5	1,998		45	1,998
result		6	18,982	26	46	18,982
Other income	+	7	451	27	47	451
Other expenses	-	8	11,915	28	48	11,915
Extraordinary income	+	9	829	29	49	829
Extraordinary expenses	-	10	1,087	30	50	1,087
Result before tax		11	7,260	31	51	7,260
Income tax for the year	-	12	1,430	32	52	1,430
Net result for the year		13	5,830	33	53	5,830

		Intangible assets B	Land and buildings C.I
Gross opening balances	+	1 104,801	31
Increases during the year	+	2 9,417	32
for: purchases or increases		3 9,417	33
write-backs		4 0	34
write-ups		5 0	35
other changes		6 0	36
Decreases during the year	-	7 721	37
for: sales or decreases		8 721	38
lasting write-downs		9 0	39
other changes		10 0	40
Gross final balances (a)		11 113,497	41
Depreciation and amortisation:
Opening balances	+	12 15,707	42
Increases during the year	+	13 11,889	43
for: depreciation and amortisation for the year		14 11,889	44
other changes		15 0	45
Decreases during the year	-	16 527	46
for: reductions for disposals		17 527	47
other changes		18 0	48
Final balances depreciation and amortisation (b)		19 27,069	49
Carrying amount (a - b)		20 86,428	50
Current value		86,428	51
Total write-ups		22	52
Total write-downs		23	53

		Shares and holdings C.II.1	Bonds C.II.2	Loans C.II.3
Opening balances	+	001 706	021	041
Increases during the year:	+	002 3	022	042
for: purchases, subscriptions or disbursements -		003 3	023	043
write-backs		004	024	044
write-ups		005.
other changes		006	026	046
Decreases during the year:	-	007 0	027	047
for: sales or reimbursements		008	028	048
write-downs		009 0	029	049
other changes		010	030	050
Carrying amount		011 710	031	051
Current value		012 710	032	052
Total write-ups		013
Total write-downs		014	034	054

Listed bonds	061
Unlisted bonds	062
Carrying amount	063
of which convertible bonds	064

Notes to the financial statements - Annex 06

Company REVO Insurance

S.p.A. Year 2023

Assets - Table containing information on investee companies (*)

Ord.	Type	Listed	Activity		Currency	Share capital		Shareholders'	Profit or loss	Equity investment held (5)
no. (**)	(1)	Unlisted (2)	performed (3)	Name and registered office		Amount (4)	Number shares	equity (***) (4)	for the last financial year (***) (4)	Direct %	Indirect % %	Total %
1	b = Subsidiaries	NL	9	REVO Underwriting Srl - Via Mecenate 90 - Milan	Euro	150		248	120	100.00	0.00	100.00
2	e = Other	NL	9	Mangrovia Blockchain Solutions - C.so Venezia 54 - Milan	Euro	11				9.50	0.00	9.50
3	d = Associates	NL	9	MedInsure Srl - Via Giuseppe Frua 22 - Milan	Euro	10		55	-143	33.00	0.00	33.00

(*) Group companies and other companies in which a direct investment is held must be listed, including through a trust company or intermediary

(***) Only to be filled in for subsidiaries and associates

(**) Order number must be greater than 0

1) Type	(3) Business activities	(4) Amounts in original currency
a = Parent companies	1 = Insurance company
b = Subsidiaries	2 = Finance company	(5) Indicate the total equity investment held
c = Affiliates	3 = Credit institution
d = Associates	4 = Real estate company
e = Other	5 = Trust company
	6 = Investment fund management or distribution company
(2) Indicate L for securities traded in regulated markets	7 = Consortium
and NL for others	8 = Industrial enterprise

9 = Other company or entity

Notes to the financial statements - Annex 07

Company REVO Insurance S.p.A. Year 2023

Assets - Statement of changes in investments in Group companies and other investee companies:

shares and holdings

Order	Type			Increases during the year		Decreases during the year Carrying amount (4)
												value	Current value	ISIN
no.			Name	For purchases		Other	For sales			Other	Show if valued using the equity method (types b and d only)	Quantity	Value
(1)	(2)	(3)		Quantity	Value	increases	Quantity	Value	decreases

1	b = Subsidiaries	D	REVO Underwriting Srl								150	150	150

2	e = Other	D	Mangrovia Blockchain Solutions								556	1,113	556

3	d = Associates	D	MedInsure Srl		3						3	3	3

(2) Type

a = Parent companies

b = Subsidiaries

d = Associates

e = Other

(1) Must correspond to that indicated in Annex 6 (3) Indicate: (4) Show with (*) if valued using the equity method (types b and d only) D for investments assigned to non-life operations (Item C.II.1) V for investments assigned to life operations (Item C.II.1 V1 for investments assigned to life operations (Item D.I. V2 for investments assigned to life operations (Item D.2 c = Affiliates The same order number must be assigned to the equity investment, even if it is split

Notes to the financial statements - Annex 8

Company REVO Insurance S.p.A. Year 2023

Assets - Breakdown on the basis of the use of other financial investments: shares and holdings in companies, units of mutual funds, bonds and other fixed-income securities, units in mutual investments and miscellaneous financial investments (Items C.III.1, 2, 3, 5, 7)

I - Non-life operations

	Long-term portfolio				Short-term portfolio		Total
	Carrying amount		Current value	Carrying amount		Current value		Carrying amount		Current value
1. Shares and holdings companies:	1		21	41		61	81		101
a) listed shares	2		22	42		62	82		102
b) unlisted shares	3		23	43		63	83		103
(c) quotas	4		24	44		64	84		104
2. Mutual fund units	5		0 25	0 45	2,775 65		2,775 85	2,775 105		2,775
3. Bonds and other fixed-income securities	6	15,432 26	15,999 46		198,194 66	199,873 86		213,626 106		215,872
a1) listed government securities	7	15,432 27	15,999 47		163,110 67	164,503 87		178,542 107		180,502
a2) other listed securities	8		0 28	0 48	35,084 68		35,370 88	35,084 108		35,370
b1) unlisted government securities	9		29	49		69	89		109
b2) other unlisted securities	10		30	50		70	90		110
c) convertible bonds	11		31	51		71	91		111
5. Units in mutual investments	12		32	52		72	92		112
7. Miscellaneous financial investments	13		33	53		73	93		113

	Long-term portfolio			Short-term portfolio	Total
	Carrying amount	Current value	Carrying amount	Current value	Carrying amount	Current value
1. Shares and holdings companies:	121	141	161	181	201	221
a) listed shares	122	142	162	182	202	222
b) unlisted shares	123	143	163	183	203	223
(c) quotas	124	144	164	184	204	224
2. Mutual fund units	125	145	165	185	205	225
3. Bonds and other fixed-income securities	126	146	166	186	206	226
a1) listed government securities	127	147	167	187	207	227
a2) other listed securities	128	148	168	188	208	228
b1) unlisted government securities	129	149	169	189	209	229
b2) other unlisted securities	130	150	170	190	210	230

c) convertible bonds 5. Units in mutual investments	131	151	171	191	211	231
7. Miscellaneous financial investments	132	152	172	192	212	232
	133	153	173	193	213	233

Notes to the financial statements - Annex 9

Company REVO Insurance S.p.A. Year 2023

Assets - Changes during the year in other long-term financial investments: shares and holdings in companies, units of mutual funds, bonds and other fixed-income securities, units in mutual investments and miscellaneous financial investments (Items C.III.1, 2, 3, 5, 7)

		Shares and holdings C.III.1	Mutual fund units investment C.III.2	Bonds and other fixed-income securities C.III.3		Units in mutual investments C.III.5	Miscellaneous financial investments C.III.7
Opening balances…………………………………………………………	+	001	021	041	8,545	081	101
Increases during the year…………………………………………………………………	+	002	022	042	6,886	082	102
for: purchases……………………………………………………		003	023	043	6,886	083	103
write-backs………………………………………		004	024	044		084	104
transfers from short-term portfolio………………………………………		005.	025	045		085	105
other changes…………………………………………		006	026	046		086	106
Decreases during the year	-	007	027	047		087	107
for: sales……………………………………………………………….		008	028	048		088	108
write-downs………………………………………………………		009	029	049		089	109
transfers to short-term portfolio……………………………………………………………….		010	030	050		090	110
other changes……………………………………………………………		011	031	051		091	111
Carrying amount		012	032	052	15,431	092	112
Current value…………………………………………………………………….		013	033	053	15,999	093	113

Notes to the financial statements - Annex 10

Year 2023

Company REVO INSURANCE S.p.A.

Assets - Changes during the year in loans and deposits with credit institutions (Items C.III.4, 6)

		Loans	Deposits with credit institutions
		C.III.4	C.III.6
Opening balances	+	001	021
Increases during the year:	+	002	022
for: disbursements		003
write-backs		004
other changes		005.
Decreases during the year: ….……	-	006	026
for: reimbursements write		007
downs		008
other changes		009
Carrying amount		010	030

Notes to the financial statements - Annex 13

Company REVO Insurance S.p.A. Year 2023

Liabilities - Changes during the year in the components of the premium reserve (Item C.I.1) and the claims reserve (Item C.I.2) of the nonlife classes

Type		Year		Previous year	Change
Premium reserve:
Reserve for unearned premiums	1	155,767	11	128,496	21	27,271
Reserve for unexpired risks	2	73	12		22	73
Carrying amount	3	155,840	13	128,496	23	27,344
Claims reserve: Reserve for compensation and direct expenditure
	4	82,409	14	35,830	24	46,579
Reserve for settlement expenses	5	1,231	15	537	25	694
Reserve for claims incurred but not reported	6	4,556	16	1,640	26	2,916
Carrying amount	7	88,196	17	38,007	27	50,189

Notes to the financial statements - Annex 15

Company REVO Insurance S.p.A. Year 2023

Liabilities - Changes during the year in provisions for risks and charges (Item E) and employee severance indemnities (Item G.VII)

		Provisions for retirement benefits and similar Provisions for obligations taxes similar		Other provisions		Employee severance payment subordinated
Opening balances	+	1	2,603	11	21	320	31	579
Provisions for the year
Other increases	+	2	0	12	22		32	213
	+	3		13	23		33	8
Use during the year	-	4	32	14	24	200	34	57
Other decreases	-	5		15	25	120	35
Carrying amount		6	2,571	16	26	0	36	743

Notes to the financial statements - Annex 16

Company REVO INSURANCE S.p.A. Year 2023

Detailed statement of assets and liabilities relating to Group companies and other investee companies

I: Activity

	Parent companies	Subsidiaries	Affiliates	Associates	Other	Total
Shares and quotas	001	002 150	003	004	3 005.	556 006 709
Bonds	007	008	009	010	011	012
Loans	013	014	015	016	017	018
Units in mutual investments	019	020	021	022	023	024
Deposits with credit institutions	025	026	027	028	029	030
Miscellaneous financial investments	031	032	033	034	035	036
Deposits with ceding companies	037	038	039	040	041	042
Investments related to services connected to
investment funds and market indices…………………………	043	044	045	046	047	048
Investments arising from pension fund management	049	050	051	052	053	054
Receivables arising from direct insurance operations	055	056 576	057	058	059	060 576
Receivables arising from reinsurance operations	061	062	063	064	065	066
Other receivables	067	068 72	069	070	071	072 72
Bank and postal current account deposits	073	074	075	076	077	078
Miscellaneous assets	079	080	081	082	083	084
Total	085	086 798	087	088 3	089	556 090 1,357
of which subordinated activities	091	092	093	094	095	096

Detailed statement of assets and liabilities relating to Group companies and other investee companies

II: Liabilities

	Parent companies	Subsidiaries	Affiliates	Associates	Other	Total
Subordinated liabilities	097	098	099	100	101	102
Deposits received from reinsurers	103	104	105	106	107	108
Payables arising from direct insurance operations	109	110	111	112	113	114
Payables arising from reinsurance operations	115	116	117	118	119	120
Payables to banks and financial institutions	121	122	123	124	125	126
Collateralised payables	127	128	129	130	131	132
Other loans and other financial debts	133	134	135	136	137	138
Miscellaneous payables	139	140	141	142	143	144
Miscellaneous liabilities	145	146	625 147	148	149	150 625
Total	151	152	625 153	154	155	156 625

Notes to the financial statements - Annex

Company REVO Insurance S.p.A. Year 2023

Disclosure on "guarantees, commitments and other memorandum accounts"

	Year		Previous year
I. Guarantees given:
a) guarantees and endorsements given in the interest of parent companies, subsidiaries and affiliates…………………	1		31
b) guarantees and endorsements given in the interest of associates and other investee companies………………………………………….	2		32
c) guarantees and endorsements given in the interest of third parties	3		33
d) other personal guarantees given in the interest of parent companies, subsidiaries and affiliates ………………………………….	4		34
e) other personal guarantees given in the interest of associates and other investee companies……………………………………	5		35
f) other personal guarantees given in the interest of third parties	6	0	36	0
g) collateral for bonds of parent companies, subsidiaries and affiliates……………………………………………	7		37
h) collateral for bonds of associates
and other investee companies………………………………… i) collateral for bonds of third parties	8 9		38 39
l) guarantees given for bonds of the company	10		40
m) assets held as deposits for the purpose of
inward reinsurance………………………………. Total	11 12	0	41 42	0
II. Guarantees received: a) from group companies, associates and other investee companies	13		43
b) from third parties Total	14 15	13 13	44 45	81 81
III. Guarantees given by third parties in the interest of the company:
a) by group companies, associates and other investee companies	16		46
b) by third parties	17	4	47	4
Total	18	4	48	4
IV. Commitments: a) purchase commitments with resale obligation	19		49
b) sale commitments with repurchase obligation	20		50
c) other commitments	21		51
Total V. Assets attributable to pension funds managed in the name and on behalf of third parties	22 23		52 53
VI. Securities held with third parties	24	224,203	54	185,981
Total	25	224,203	55	185,981

Notes to the inancial statements - Annex 19

Company REVO Insurance S.p.A. Year 2023

Summary information on the technical account of the non-life classes

	Premiums Premiums premiums premiums			Gross expense of claims		Operating expenses	Balance of reinsurance
Direct insurance:
Accident and Health (Classes 1 and 2)	1	6,228	2	5,800	3	3,762	4 1,864	5	-289
Motor vehicle liability (Class 10)	6	0	7	0	8	0	9 0	10	0
Land vehicles (Class 3)	11	2,672	12	1,479	13	584	14 869	15	-93
Marine, aviation and transport insurance
(Classes 4, 5, 6, 7 11 and 12)…………………………………	16	23,700	17	20,546	18	21,760	19 6,338	20	1,175
Fire and other damage to property (Classes 8 and 9)	21	60,238	22	55,141	23	40,019	24 22,288	25	4,506
General liability (Class 13)	26	31,444	27	29,718	28	3,503	29 10,114	30	-10,121
Credit and Suretyship (Classes 14 and 15)	31	85,408	32	71,746	33	9,948	34 35,569	35	-5,097
Miscellaneous financial loss (Class 16)	36	2,916	37	1,979	38	33	39 798	40	-1,085
Legal expenses (Class 17)	41	557	42	130	43	0	44 111	45	0
Assistance (Class 18)	46	13	47	12	48	8	49 5	50	-2
Total direct insurance	51	213,176	52	186,551	53	79,617	54 77,956	55	-11,006
Indirect insurance	56	0	57	0	58	0	59 0	60	0
Total Italian portfolio	61	213,176	62	186,551	63	79,617	64 77,956	65	-11,006
Foreign portfolio	66	3,063	67	2,344	68	1,679	69 873	70	0
Grand total	71	216,239	72	188,895	73	81,296	74 78,829	75	-11,006

Notes to the financial statements - Annex 21

Company REVO Insurance S.p.A. Year 2023

Investment income (Items II.2 and III.3)
	Non-life operations		Life operations		Total
Income from shares and quotas:
Dividends and other income from shares and quotas of group companies and investee companies………………….	1	0	41	81	0
Dividends and other income from shares and quotas of other companies ………………………….	2	24	42	82	24
Total	3	24	43	83	24
Income from investments in land and buildings	4	0	44	84	0
Income from other investments: Income from bonds of group companies and investee companies ………………………………….	5		45	85
Interest on loans to group companies and investee companies	6		46	86
Income from mutual fund units	7	0	47	87	0
Income from bonds and other fixed-income securities	8	4,741	48	88	4,741
Interest on loans	9	0	49	89	0
Income from units in mutual investments	10	0	50	90	0
Interest on deposits with credit institutions	11	0	51	91	0
Income from miscellaneous financial investments	12	0	52	92	0
Interest on deposits with ceding companies	13	0	53	93	0
Total	14	4,741	54	94	4,741
Write-backs of value adjustments on investments relating to:
Land and buildings Shares and quotas of group companies and investee companies	15 16		55 56	95 96
Bonds issued by group companies and investee companies	17		57	97
Other shares and quotas	18		58	98

Other bonds	19	1,939	59	99	1,939
Other financial investments	20		60	100
Total	21	1,939	61	101	1,939
Gains on investment disposals:
Capital gains arising from the disposal of land and buildings	22	0	62	102
Profits on shares and quotas of group companies and investee companies………………………………. Profits on bonds issued by group companies and investee companies…………………………………….	23 24	0 0	63 64	103 104
Profits on other shares and quotas	25	0	65	105	0

Profits on other bonds ................................................................................................................... 26 141 66 106 141 Profits on other financial investments .............................................................. 27 0 67 107 0 Total ......................................................................................................................... 28 0 68 108 0 GRAND TOTAL ............................................................................................................. 29 6,845 69 109 6,845

Notes to the financial statements - Annex 23

Company REVO Insurance S.p.A. Year 2023

Capital and financial expenses (Items II.9 and III.5)

	Non-life operations	Life operations	Total
Investment operating expenses and other expenses
Expenses relating to shares and quotas	1	31	61
Expenses relating to investments in land and buildings	2	32	62
Expenses relating to bonds	3 439	33	63 439
Expenses relating to mutual fund units	4	34	64
Expenses relating to units in mutual investments	5	35	65
Expenses related to miscellaneous financial investments	6	36	66
Interest on deposits received from reinsurers	7	37	67
Total	8 439	38	68 439
Value adjustments on investments relating to:
Land and buildings	9 0	39	69 0
Shares and quotas of group companies and investee companies	10 0	40	70 0
Bonds issued by group companies and investee companies …………………….	11 0	41	71 0
Other shares and quotas	12 0	42	72 0
Other bonds	13 213	43	73 213
Other financial investments	14 0	44	74 0
Total	15 213	45	75 213
Losses on investment disposals
Capital losses arising from the disposal of land and buildings	16 0	46	76
Losses on shares and quotas	17 0	47	77 0
Losses on bonds ……………….	18 633	48	78 633
Losses on other financial investments …………………………………….	19 0	49	79
Total	20 633	50	80 633
GRAND TOTAL	21 1,285	51	81 1,285

Notes to the financial statements - Annex 25

Company REVO Insurance S.p.A. Year 2023

Non-life insurance - Summary schedule of technical accounts for each class - Italian portfolio

Class code 01 Class code 02 Class code 03 Class code 04 Class code 05 Class code 06 Accident Sickness Land vehicles Railway rolling stock Aviation hull Marine hull (name) (name) (name) (name) (name) (name) Direct business gross of reinsurance Premiums written.................................................................................... + 1 1,916 1 4311 1 2,672 1 1,789 1 5,647 1 10,318 Change in premium reserve (+ or -).............................................................. - 2 172 2 255 2 1,193 2 1,574 2 1,021 2 520 Claims-related expenses............................................................................... - 3 425 3 3,337 3 584 3 24 3 2,180 3 13,479 Change in other technical provisions (+ or -)...................... - 4 0 4 0 4 0 4 0 4 0 4 0 Balance of other technical items (+ or -)............................................................................ + 5 -16 5 0 5 0 5 0 5 22 5 -243 Operating expenses..................................................................................................... - 6 642 6 1,222 6 869 6 229 6 1,091 6 2,855 Technical balance of direct business (+ or -) ............................................................................................................. 7 661 7 -503 7 26 7 -38 7 1,377 7 -6,779 Result of outward reinsurance (+ or -).........................B 8 -647 8 359 8 -93 8 -147 8 -1,808 8 2,703 Net result of indirect business (+ or -).................................................................C 9 -10 9 0 9 0 9 0 9 0 9 0 Change in equalisation reserves (+ or -).....................................D 10 0 10 0 10 0 10 0 10 0 10 0 Share of profit from investments transferred from non-technical account............E 11 6 11 10 11 14 11 5 11 3 11 96 Result of the technical account (+ o -) …………….......... (A + B + C - D + E) 12 19 12 -134 12 -53 12 -180 12 -428 12 -3,980

		Class code 07		Class code 08		Class code 09		Class code 10		Class code 11		Class code 12
		Goods in transit		Fire and natural forces Other damage to property		Motor vehicle liability		Aviation liability		Marine hull liability
		(name)		(name)		(name)		(name)		(name)		(name)
Direct business gross of reinsurance
Premiums written	+	1 4,651	1	26,735	1	33,503	1	0	1	935	1	359
Change in premium reserve (+ or -)	-	2 -106	2	954	2	4,142	2	0	2	119	2	26
Claims-related expenses	-	3 5,965	3	21,874	3	18,145	3	0	3	3	3	110
Change in other technical provisions (+ or -
)	-	4 0	4	0	4	0	4	0	4	0	4	0
Balance of other technical items (+ or -)	+	5 -19	5	-588	5	-204	5	0	5	0	5	0
Operating expenses	-	6 1,821	6	10,193	6	12,095	6	0	6	187	6	154
Technical balance of direct business (+ or -)
		7 -3,048	7	-6,874	7	-1,083	7	0	7	626	7	69
Result of outward reinsurance (+ or -)B		8 1,197	8	4,759	8	-253	8	0	8	-666	8	-104
Net result of indirect business (+ or -)C		9 0	9	0	9	0	9	0	9	0	9	0
Change in equalisation reserves (+ or -)D		10 0	10	104	10	109	10	0	10	0	10	0
Share of profit from investments transferred from non-technical accountE		11 38	11	155	11	310	11	0	11	0	11	1
Result of the technical account (+ o -) …………… (A + B + C - D + E)		12 -1,813	12	-2,064	12	-1,135	12	0	12	-40	12	-34

			Class code 13		Class code 14		Class code 15		Class code 16		Class code 17		Class code 18
			General liability		Credit		Suretyship		Financial loss		Legal expenses		Assistance
			(name)		(name)		(name)		(name)		(name)		(name)
Direct business gross of reinsurance
Premiums written	+	1	31,444	1	232	1	85,176	1	2,916	1	558	1	13
Change in premium reserve (+ or -)	-	2	1,726	2	125	2	13,537	2	937	2	428	2	1
Claims-related expenses	-	3	3,503	3	16	3	9,932	3	33	3	0	3	8
Change in other technical provisions (+ or -
)	-	4	0	4	0	4	0	4	0	4	0	4	0
Balance of other technical items (+ or -)	+	5	-511	5	0	5	-2,536	5	0	5	0	5	-1
Operating expenses	-	6	10,114	6	37	6	35,532	6	798	6	111	6	5
Technical balance of direct business (+ or -)
		7	15,590	7	54	7	23,639	7	1,148	7	19	7	-2

Result of outward reinsurance (+ or -)B		8	-10,121	8	0	8	-5,097	8	-1,085	8	0	8	-2
Net result of indirect business (+ or -)C		9	0	9	0	9	0	9	0	9	0	9	0
Change in equalisation reserves (+ or -)D		10	0	10	0	10	0	10	0	10	0	10	0
Share of profit from investments transferred from non-technical accountE		11	216	11	33	11	1,104	11	10	11	6	11	0

Result of the technical account (+ o -) …………… (A + B + C - D + E)		12	5,685	12	24	12	19,646	12	73	12	25	12	-4

Notes to the financial statements - Annex 26

Company REVO Insurance Year 2023

Summary schedule of the technical account summarising all the non-life classes – Italian portfolio

Italian portfolio

		Direct insurance risks				Indirect insurance risks	Retained risks
		Direct risks I		Risks ceded 2		Risks underwritten 3	Retroceded risks 4		Total 5= 1 -2 + 3 - 4
Premiums written	+	1	213,175	11	99,954	21 0	31	41	113,221
Change in premium reserve (+ or -)	-	2	26,624	12	8,900	22 0	32	42	17,724
Claims-related expenses	-	3	79,618	13	43,126	23 0	33	43	36,492
Change in other technical provisions (+ or -)	-	4	0	14		24 0	34	44	0
Balance of other technical items (+ or -)	+	5	-4,096	15	2,153	25 0	35	45	-6,249
Operating expenses	-	6	77,955	16	39,075	26 0	36	46	38,880
Technical balance (+ or -)		7	24,882	17	11,006	27 0	37	47	13,876
Change in equalisation reserves (+ or -)	-							48	246
Share of profit from investments transferred from non-technical account	+	9	1,977			29 0		49	1,977
Result of technical account (+ or -)		10	26,859	20	11,006	30 0	40	50	15,607

Notes to the financial statements - Annex 29

Company	REVO INSURANCE S.p.A.	2023

Section I: Non-life insurance

		Total classes
Direct business gross of reinsurance Premiums written Change in premium reserve (+ or -) Claims-related expenses	+ - -	1 2 3
Change in other technical reserves (+ or -) Balance of other technical items (+ or -)……………………………………………… Operating expenses Technical balance of direct business (+ or -) A	- + -	4 5 6 7
Result of outward reinsurance (+ or -) B		8
Net result from indirect business (+ or -) C Change in equalisation reserves (+ or -) D		9 -208 10
Share of profit from investments transferred from non-technical account E		11 21
Result of the technical account (+ or -) (A + B + C- D + E)		12 -187

Section II: Life insurance

		Total classes
Direct business gross of reinsurance
Premiums written	+	1
Claims-related expenses	-	2
Change in mathematical reserves and other technical reserves (+ or -)	-	3
Balance of other technical items (+ or -)	+	4
Operating expenses	-	5
Profit on investment net of portion transferred to the non-technical account (1)
	+	6
Balance of direct business gross of reinsurance (+ or -) A		7
Result of outward reinsurance (+ or -) B		8
Net result from indirect business (+ or -) C		9
Result of the technical account (+ or -) (A + B + C)		10

(1) The algebraic sum of items relating to the foreign portfolio included in Items II.2, II.3, II.9, II.10 and II.12 of the Income Statement

Notes to the financial statements - Annex 30

Company REVO Insurance S.p.A. Year 2023

Relations with Group companies and other investee companies

	Parent companies	Subsidiaries	Affiliates	Associates	Other	Total
Investment income
Income from land and buildings	001	002	003	004	005.	006
Dividends and other income from shares and quotas ……………………….	007	008	009	010	011	012
Income on bonds	013	014	015	016	017	018
Interest on loans	019	020	021	022	023	024
Income on other financial investments ………………………………………….	025	026	027	028	029	030
Interest on deposits with ceding undertakings	031	032	033	034	035	036
Total	037	038	039	040	041	042
Unrealised income and capital gains on investments for the benefit of policyholders who bear the associated risk and investments arising from pension fund management
	043	044	045	046	047	048
Other income
Interest on receivables	049	050	051	052	053	054
Recoveries of administrative expenses and charges	055	056 44	057	058	059	060 44
Other income and recoveries	061	062	063	064	065	066 0
Total	067	068 44	069	070	071	072 44
Gains on investment disposals (*)	073	074	075	076	077	078 0
Extraordinary income	079	080	081	082	083	084 0
GRAND TOTAL	085	086 44	087	088	089	090 44

Relations with Group companies and other investee companies

II: Expenses

	Parent companies	Subsidiaries	Associates	Affiliates	Other	Total
Investment management expenses and interest expense Expenses related to investments 091		092	093	094	095	096
Interest on subordinated liabilities	097	098	099	100	101	102
Interest on deposits received from reinsurers	103	104	105	106	107	108
Interest on payables arising from direct insurance operations	109	110	111	112	113	114
Interest on payables arising from reinsurance operations	115	116	117	118	119	120
Interest on payables to banks and financial institutions	121	122	123	124	125	126
Interest on collateralised payables	127	128	129	130	131	132
Interest on other payables	133	134	135	136	137	138
Losses on receivables	139	140	141	142	143	144
Administrative charges and expenses for third parties	145	146	147	148	149	150
Miscellaneous expenses	151	152	153	154	155	156
Total	157	158	159	160	161	162
Unrealised expenses and capital losses on investments for the benefit of policyholders who bear the associated risk and arising from pension fund management
	163	164	165	166	167	168
Losses on investment disposals (*)	169	170	171	172	173	174
Extraordinary expenses	175	176	177	178	179	180
GRAND TOTAL	181	182	183	184	185	186

(*) With reference to the counterparty in the transaction

Notes to the financial statements - Annex 31

Company REVO Insurance S.p.A. Year 2023

Summary schedule of premiums written for direct business

	Non-life operations			Life operations		Total
	Establishment		FPS		Establishment	FPS	Establishment		FPS
Premiums written:
in Italy	1	198,044	5	0	11	15	21	198,044	25	0
in other States of the European Union	2		6	9,717	12	16	22		26	9,717
in third countries	3		7	5,414	13	17	23		27	5,414
Total	4	198,044	8	15,131	14	18	24	198,044	28	15,131

Notes to the financial statements - Annex 32

Company REVO Insurance Year 2023

Schedule of expenses relating to personnel, directors and statutory auditors

I: Payroll expenses

	Non-life operations		Life operations		Total
Employment expenses:
Italian portfolio:
- Salaries	1	11,932	31	61	11,932
- Social security contributions	2	2,889	32	62	2,889
- Provision for severance indemnity and similar obligations	3	1,431	33	63	1,431
- Miscellaneous personnel expenses	4	1,571	34	64	1,571
Total	5	17,823	35	65	17,823
Foreign portfolio:
- Salaries	6		36	66
- Social security contributions	7		37	67
- Miscellaneous personnel expenses	8		38	68
Total	9		39	69
Overall total	10	17,823	40	70	17,823
Self-employment expenses:
Italian portfolio	11	3,091	41	71	3,091
Foreign portfolio	12		42	72
Total	13	3,091	43	73	3,091
Total expenses for work performed	14	20,914	44	74	20,914

II: Description of expensed items

		Non-life operations	Life operations		Total
Investment operating expenses	15	192	45	75	192
Claims-related expenses	16	4,110	46	76	4,110
Other acquisition expenses	17	8,716	47	77	8,716
Other administrative expenses	18	7,896	48	78	7,896
Administrative charges and expenses for third parties
	19		49	79
	20		50	80
Total	21	20,914	51	81	20,914

III: Average number of personnel during the year

		Number
Executives	91	17
Office workers	92	107
Salaried workers	93
Other	94	1
Total	95	125

IV: Directors and statutory auditors

		Number		Fees payable
Directors	96	7	98	700
Statutory Auditors	97	3	99	214

I, the undersigned, declare that these financial statements conform to the truth and records

The legal representatives of the Company ( * )

Alberto Minali - Chief Executive Officer

( ** ) ( ** ) ( ** )

Statutory Auditors

Saverio Ugolini - Chairman

Rosella Colleoni

Alessandro Copparoni

Space reserved for certification of filing by the Companies Register.

( * ) For foreign companies, the signature must be affixed by the general representative for Italy.

( ** ) Indicate the position held by the signatory.

Certification of the consolidated financial statements pursuant to Article 81-ter of Consob Regulation 11971/1999 193

1. The undersigned, Alberto Minali, in his capacity as Chief Executive Officer, and Jacopo Tanaglia, in his capacity as Financial Reporting Officer of REVO Insurance S.p.A., hereby attest to, also taking account of Article 154-bis, paragraphs 3 and 4, of Legislative Decree no. 58 of 24 February 1998:
2. the adequacy in relation to the characteristics of the Company; and
3. the effective application of administrative and accounting procedures for the preparation of the consolidated financial statements during financial year 2023.
1. We also certify that:
2. the consolidated financial statements as at 31 December 2023:
  - have been prepared in compliance with the international accounting standards recognised by the European Community pursuant to Regulation (EC) No. 1606/2002 of the European Parliament and of the Council of 19 July 2002, as well as the current legislative and regulatory provisions;
  - correspond to the accounting books and records;
  - are fit to provide a true and fair representation of the financial position, cash flows and results of operations of the issuer and all the companies included within the scope of consolidation.
3. the report on operations includes a reliable analysis of the performance and operating results, as well as the situation of the issuer and all the companies within the scope of consolidation, together with a description of the main risks and uncertainties to which they are exposed.

Jacopo Tanaglia Alberto Minali Financial Reporting Officer Chief Executive Officer corporate accounts REVO Insurance S.p.A. REVO Insurance S.p.A.

Board of Statutory Auditors' Report

-

External Auditor's Report

KPMG S.p.A. Revisione e organizzazione contabile Via Vittor Pisani, 25 20124 MILANO MI Telefono +39 02 6763.1 Email [email protected] PEC [email protected]

Relazione della società di revisione indipendente ai sensi dell'art. 14 del D.Lgs. 27 gennaio 2010, n. 39, dell'art. 10 del Regolamento (UE) n. 537 del 16 aprile 2014 e dell'art. 102 del D.Lgs. 7 settembre 2005, n. 209

Agli Azionisti della Revo Insurance S.p.A.

Relazione sulla revisione contabile del bilancio d'esercizio

Giudizio

Abbiamo svolto la revisione contabile del bilancio d'esercizio della Revo Insurance S.p.A. (nel seguito anche la "Società"), costituito dallo stato patrimoniale al 31 dicembre 2023, dal conto economico per l'esercizio chiuso a tale data e dalla nota integrativa.

A nostro giudizio, il bilancio d'esercizio fornisce una rappresentazione veritiera e corretta della situazione patrimoniale e finanziaria della Società al 31 dicembre 2023 e del risultato economico per l'esercizio chiuso a tale data in conformità alle norme italiane che ne disciplinano i criteri di redazione.

Elementi alla base del giudizio

Abbiamo svolto la revisione contabile in conformità ai principi di revisione internazionali (ISA Italia). Le nostre responsabilità ai sensi di tali principi sono ulteriormente descritte nel paragrafo "Responsabilità della società di revisione per la revisione contabile del bilancio d'esercizio" della presente relazione. Siamo indipendenti rispetto alla Società in conformità alle norme e ai principi in materia di etica e di indipendenza applicabili nell'ordinamento italiano alla revisione contabile del bilancio. Riteniamo di aver acquisito elementi probativi sufficienti e appropriati su cui basare il nostro giudizio.

Aspetti chiave della revisione contabile

Gli aspetti chiave della revisione contabile sono quegli aspetti che, secondo il nostro giudizio professionale, sono stati maggiormente significativi nell'ambito della revisione contabile del bilancio dell'esercizio in esame. Tali aspetti sono stati da noi affrontati nell'ambito della revisione contabile e nella formazione del nostro giudizio sul bilancio d'esercizio nel suo complesso; pertanto, su tali aspetti non esprimiamo un giudizio separato.

KPMG S.p.A. è una società per azioni di diritto italiano e fa parte del network KPMG di entità indipendenti affiliate a KPMG International Limited, società di diritto inglese.

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Società per azioni Capitale sociale Euro 10.415.500,00 i.v. Registro Imprese Milano Monza Brianza Lodi e Codice Fiscale N. 00709600159 R.E.A. Milano N. 512867 Partita IVA 00709600159 VAT number IT00709600159 Sede legale: Via Vittor Pisani, 25 20124 Milano MI ITALIA

Valutazione delle riserve tecniche

Nota integrativa "Parte A – Criteri di valutazione" paragrafo "Riserve tecniche"

Nota integrativa "Parte B – Informazioni sullo stato patrimoniale e conto economico" paragrafo "Riserve tecniche"

Aspetto chiave	Procedure di revisione in risposta all'aspetto chiave
Il bilancio individuale al 31 dicembre 2023 include riserve tecniche per circa €244 milioni che rappresentano circa il 76% delle passività dello stato patrimoniale. La valutazione di tale voce di bilancio viene effettuata anche attraverso l'utilizzo di tecniche attuariali che implicano l'utilizzo di un importante grado di giudizio complesso e soggettivo legato a variabili interne ed esterne all'impresa, passate e future, per le quali, variazioni nelle assunzioni di base, potrebbero avere un impatto materiale sulla valutazione di tali passività. Per tali ragioni abbiamo considerato la valutazione delle riserve tecniche un aspetto chiave dell'attività di revisione.	Le nostre procedure di revisione hanno incluso: • la comprensione del processo di valutazione delle riserve tecniche e del relativo ambiente informatico, l'esame della configurazione e della messa in atto dei controlli e lo svolgimento di procedure per valutare l'efficacia operativa dei controlli ritenuti rilevanti; • l'analisi delle variazioni significative delle riserve tecniche rispetto ai dati degli esercizi precedenti, l'analisi dei principali indicatori di sintesi e la discussione delle risultanze con le funzioni aziendali coinvolte; • l'esame delle tecniche attuariali utilizzate dalla Società e della ragionevolezza dei dati e dei parametri utilizzati ai fini della stima per i rami ministeriali ritenuti più significativi; tale attività è stata svolta anche con il supporto di esperti attuariali del network KPMG;
	• la verifica della determinazione delle riserve tecniche complessive in conformità alle vigenti disposizioni di legge e regolamentari e a corrette tecniche attuariali, anche mediante analisi di ragionevolezza basate sugli indici e trend dei principali indicatori caratteristici delle riserve tecniche; tale attività è stata svolta anche con il supporto di esperti attuariali del network KPMG; • l'esame dell'appropriatezza dell'informativa di bilancio relativa alle riserve tecniche.

Responsabilità degli Amministratori e del Collegio Sindacale della Revo Insurance S.p.A. per il bilancio d'esercizio

Gli Amministratori sono responsabili per la redazione del bilancio d'esercizio che fornisca una rappresentazione veritiera e corretta in conformità alle norme italiane che ne disciplinano i criteri di redazione, e nei termini previsti dalla legge, per quella parte del controllo interno dagli stessi ritenuta necessaria per consentire la redazione di un bilancio che non contenga errori significativi dovuti a frodi o a comportamenti o eventi non intenzionali.

Gli Amministratori sono responsabili per la valutazione della capacità della Società di continuare a operare come un'entità in funzionamento e, nella redazione del bilancio d'esercizio, per l'appropriatezza dell'utilizzo del presupposto della continuità aziendale, nonché per una adeguata informativa in materia. Gli Amministratori utilizzano il presupposto della continuità aziendale nella redazione del bilancio d'esercizio a meno che abbiano valutato che sussistono le condizioni per la liquidazione della Società o per l'interruzione dell'attività o non abbiano alternative realistiche a tali scelte.

Il Collegio Sindacale ha la responsabilità della vigilanza, nei termini previsti dalla legge, sul processo di predisposizione dell'informativa finanziaria della Società.

Responsabilità della società di revisione per la revisione contabile del bilancio d'esercizio

I nostri obiettivi sono l'acquisizione di una ragionevole sicurezza che il bilancio d'esercizio nel suo complesso non contenga errori significativi, dovuti a frodi o a comportamenti o eventi non intenzionali, e l'emissione di una relazione di revisione che includa il nostro giudizio. Per ragionevole sicurezza si intende un livello elevato di sicurezza che, tuttavia, non fornisce la garanzia che una revisione contabile svolta in conformità ai principi di revisione internazionali (ISA Italia) individui sempre un errore significativo, qualora esistente. Gli errori possono derivare da frodi o da comportamenti o eventi non intenzionali e sono considerati significativi qualora ci si possa ragionevolmente attendere che essi, singolarmente o nel loro insieme, siano in grado di influenzare le decisioni economiche degli utilizzatori prese sulla base del bilancio d'esercizio.

Nell'ambito della revisione contabile svolta in conformità ai principi di revisione internazionali (ISA Italia), abbiamo esercitato il giudizio professionale e abbiamo mantenuto lo scetticismo professionale per tutta la durata della revisione contabile. Inoltre:

abbiamo identificato e valutato i rischi di errori significativi nel bilancio d'esercizio, dovuti a frodi o a comportamenti o eventi non intenzionali; abbiamo definito e svolto procedure di revisione in risposta a tali rischi; abbiamo acquisito elementi probativi sufficienti e appropriati su cui basare il nostro giudizio. Il rischio di non individuare un errore significativo dovuto a frodi è più elevato rispetto al rischio di non individuare un errore significativo derivante da comportamenti o eventi non intenzionali, poiché la frode può implicare l'esistenza di collusioni, falsificazioni, omissioni intenzionali, rappresentazioni fuorvianti o forzature del controllo interno;
abbiamo acquisito una comprensione del controllo interno rilevante ai fini della revisione contabile allo scopo di definire procedure di revisione appropriate nelle circostanze e non per esprimere un giudizio sull'efficacia del controllo interno della Società;
abbiamo valutato l'appropriatezza dei principi contabili utilizzati nonché la ragionevolezza delle stime contabili effettuate dagli Amministratori, inclusa la relativa informativa;
siamo giunti a una conclusione sull'appropriatezza dell'utilizzo da parte degli Amministratori del presupposto della continuità aziendale e, in base agli elementi probativi acquisiti, sull'eventuale esistenza di un'incertezza significativa riguardo a eventi o circostanze che possono far sorgere dubbi significativi sulla capacità della Società di continuare a operare come un'entità in funzionamento. In presenza di un'incertezza significativa, siamo tenuti a richiamare l'attenzione nella relazione di revisione sulla relativa informativa di bilancio ovvero, qualora tale informativa sia inadeguata, a riflettere tale circostanza nella formulazione del nostro giudizio. Le nostre conclusioni sono basate sugli elementi probativi acquisiti fino alla data della presente relazione. Tuttavia, eventi o circostanze successivi possono comportare che la Società cessi di operare come un'entità in funzionamento;

• abbiamo valutato la presentazione, la struttura e il contenuto del bilancio d'esercizio nel suo complesso, inclusa l'informativa, e se il bilancio d'esercizio rappresenti le operazioni e gli eventi sottostanti in modo da fornire una corretta rappresentazione.

Abbiamo comunicato ai responsabili delle attività di governance, identificati a un livello appropriato come richiesto dagli ISA Italia, tra gli altri aspetti, la portata e la tempistica pianificate per la revisione contabile e i risultati significativi emersi, incluse le eventuali carenze significative nel controllo interno identificate nel corso della revisione contabile.

Abbiamo fornito ai responsabili delle attività di governance anche una dichiarazione sul fatto che abbiamo rispettato le norme e i principi in materia di etica e di indipendenza applicabili nell'ordinamento italiano e abbiamo comunicato loro ogni situazione che possa ragionevolmente avere un effetto sulla nostra indipendenza e, ove applicabile, le azioni intraprese per eliminare i relativi rischi o le misure di salvaguardia applicate.

Tra gli aspetti comunicati ai responsabili delle attività di governance, abbiamo identificato quelli che sono stati più rilevanti nell'ambito della revisione contabile del bilancio dell'esercizio in esame, che hanno costituito quindi gli aspetti chiave della revisione. Abbiamo descritto tali aspetti nella relazione di revisione.

Altre informazioni comunicate ai sensi dell'art. 10 del Regolamento (UE) 537 del 16 aprile 2014

L'Assemblea degli Azionisti della Revo Insurance S.p.A. (già Elba Assicurazioni S.p.A) ci ha conferito in data 6 aprile 2017 l'incarico di revisione legale per gli esercizi dal 31 dicembre 2017 al 31 dicembre 2025.

Dichiariamo che non sono stati prestati servizi diversi dalla revisione contabile vietati ai sensi dell'art. 5, paragrafo 1, del Regolamento (UE) 537 del 16 aprile 2014 e che siamo rimasti indipendenti rispetto alla Società nell'esecuzione della revisione legale.

Confermiamo che il giudizio sul bilancio d'esercizio espresso nella presente relazione è in linea con quanto indicato nella relazione aggiuntiva destinata al Collegio Sindacale, nella sua funzione di Comitato per il controllo interno e la revisione contabile, predisposta ai sensi dell'art. 11 del citato Regolamento.

Relazione su altre disposizioni di legge e regolamentari

Giudizio sulla conformità alle disposizioni del Regolamento Delegato (UE) 2019/815

Gli Amministratori della Revo Insurance S.p.A. sono responsabili per l'applicazione delle disposizioni del Regolamento Delegato (UE) 2019/815 della Commissione Europea in materia di norme tecniche di regolamentazione relative alla specificazione del formato elettronico unico di comunicazione (ESEF – European Single Electronic Format) al bilancio d'esercizio al 31 dicembre 2023, da includere nella relazione finanziaria annuale.

Abbiamo svolto le procedure indicate nel principio di revisione (SA Italia) 700B al fine di esprimere un giudizio sulla conformità del bilancio d'esercizio alle disposizioni del Regolamento Delegato (UE) 2019/815.

A nostro giudizio, il bilancio d'esercizio al 31 dicembre 2023 è stato predisposto nel formato XHTML in conformità alle disposizioni del Regolamento Delegato (UE) 2019/815.

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Revo Insurance

4376_10-k_2024-03-28_671d3777-1434-4961-89af-370dccd47a60.pdf

REVO Insurance S.p.A.

www.revoinsurance.com

Corporate officers and Directors

BOARD OF DIRECTORS

INTERNAL BOARD COMMITTEES

Internal Control and Risks Committee

Appointments and Remuneration Committee

Environmental, Social and Governance (ESG) Committee

Related Parties Committee

BOARD OF STATUTORY AUDITORS

GENERAL MANAGER

EXTERNAL AUDITOR

General information

Corporate information

Report on Operations

Report on Operations

Market scenario

Macroeconomic scenario

Insurance scenario

Industry regulations

Main corporate events

General performance

Evolution of the insurance portfolio and the sales network

Claims

Suretyship class

Other classes

Settlement speed

Acquisition expenses and general expenses

A detailed summary is provided below:

Foreign business

Reinsurance policy

Main new products launched on the market

OverX

Investment policy guidelines and profitability achieved

Remuneration policies and information on personnel

Remuneration policies

MbO system

2022-2024 Performance Share Plan

Code of Ethics

Summary data for 2023

Solvency II – Solvency margin

Insurance risk management objectives and policy

Underwriting risks

Market risk

Credit risk

Liquidity risk

Operational risk

Compliance risk

Reputational risk

Strategic risk

Climate change risk

Ongoing disputes

Capital and financial transactions with parent companies, associates, affiliates and other related parties

Subsidiaries and controlled entities

Associates, companies under joint control and other related parties

Other significant events during the year

Main significant events after year-end

Business outlook

Treasury shares held and changes in the holding

Relations with public authorities and other entities

Report on corporate governance and ownership structure pursuant to Article 123 and Legislative Decree No. 58 of 24 February 1998

Proposals to the Shareholders' Meeting

Statement of financial position and Income statement

Statement of financial position and income statement

Statement of financial position

STATEMENT OF FINANCIAL POSITION ASSETS

STATEMENT OF FINANCIAL POSITION LIABILITIES

Income statement

Notes to the financial statements

Notes to the financial statements

General section

Part A – Valuation criteria

Assets

Intangible assets

Investments

Investments in Group companies and other investee companies

Other long-term financial investments