Net Insurance

Management Reports • Jun 23, 2022

Informazione Regolamentata n. 20034-39-2022		Data/Ora Ricezione 23 Giugno 2022 07:42:53	Euronext Growth Milan
Societa'	:	Net Insurance S.p.A.
Identificativo Informazione Regolamentata	:	163994
Nome utilizzatore	:	NETINSURANCEN01 - Pennisi
Tipologia	:	3.1
Data/Ora Ricezione	:	23 Giugno 2022 07:42:53
Data/Ora Inizio Diffusione presunta	:	23 Giugno 2022 07:42:54
Oggetto	:		New 2022–2025 Business Plan approved
Testo del comunicato

Vedi allegato.

Net Insurance: New 2022–2025 Business Plan approved

Rome, 23 June 2022 –The Board of Directors of Net Insurance, which met yesterday evening under the chairmanship of Luisa Todini, has approved the Company's new 2022–2025 Business Plan.¹

In substantial continuity with the previous 2019-2023 Business Plan which was presented to the market in June 2019, the company's new growth project rests and leverages on the positive performance recorded in recent years as well as on six strategic pillars. First and foremost, the dynamic balance between growth, capital strength and shareholders' remuneration.

This fundamental objective is supported by the following actions:

• Consolidation of Net Insurance's position as a Leader in Salary-backed Loans;
• From start-up to scale-up of the Bancassurance business to become a market leader for local banks;
• Ramp-up of the Broker channel with a strong digital and specialty business-oriented approach;
• Efficient and digital operating machine at scale ensuring strong customisation of service to partners;
• Evolution of the business and operating model towards ESG "Good practice".

In the coming years, Net Insurance will accelerate profitable growth, bringing the operating models of all business lines to maturity:

• − Salary-Backed Loans:
• Defence of its competitive advantage and leadership position (30% share) among the top Salary-Back Loan players;
• Increased presence among the top players with still limited share of wallet and development of medium-sized players;
• Maintenance of a high quality of risk underwriting against moderately increasing volumes, thanks to service quality and advanced analytics applied to best pricing and underwriting practices.

¹ The estimates in the new Business Plan reflect the reclassified income statement figures and are expressed according to the accounting standards currently in force, without taking into account the effects of the introduction of IFRS17 and IFRS9.

• − Bancassurance:
• Consolidation of the distribution potential with primary bancassurance partners (agreements with upfront investments) on CPI, Non-Life (Family, Health and Home) and Life Protection ;
• Enhancement of the differential service model to increase the share of wallet in still underdeveloped partners;
• Selective development of new distribution agreements with local banks.
• − Broker:
• Broker business development with a dedicated digital platform ("Digital Attacker") and focus on business Affinity;
• Consolidation of Specialties (Suretyship and Agriculture policies) with a prudent underwriting and reinsurance policy;
• Gradual growth of existing digital insurance partnerships and proposition of specific products for digital channels.

At a business level, the Group expects gross premiums written for Euro 169 million in 2022; Euro 191 million in 2023; Euro 221 million in 2024 to reach Euro 252 million in 2025. Of the latter, Euro 130 million refer to the Salary-Backed Loans business, Euro 76 million to the bancassurance segment, and the remaining Euro 46 million to the Brokersegment including Digital.

Ordinary expenses at Euro 23.1 million in 2022, rising to Euro 26 million in 2023, to Euro 28 million in 2024 and reaching around Euro 29 million in 2025, with a incidence of gross premiums written down from 13.7% in 2022 to 11.5% in 2025. A significant strengthening of the operational machine is planned with the entry of new resources during the Plan period, the creation of a Value Pool dedicated to talent retention and a new '"extended" stock option plan.

The Combined Ratio which will go from an expected 87% by the end of 2022, to 82% in 2025, due to the technical quality of Non-Life business products and the progressive reduction of expenses as a percentage of premiums. [table1].

The result from financial operations is expected to grow to Euro 5.2 million by 2025, from Euro 2.5 million in 2022 to Euro 3.7 million in 2023 and to Euro 4.5 million in 2024.

Normalised profit² , from a level of about Euro 13.6 million at the end of 2022, will reach Euro 15.8 million in 2023; Euro 19.3 million in 2024 will reach Euro 25.9 million in 2025, with a RoE that will be around 19% when fully achieved. [table 2].

The Solvency Ratio, thanks to the generation of a capital ensured by the business activity and the prudent dividend policy, will gradually stabilise at around 175%, without any capital increases. [table 3]

² Normalised figure is net of non recurrent charges and revenues, therefore linked to events of an extraordinary nature.

The amount of dividends is expected to grow due to the increase in profit, with a constant Payout Ratio at 30% during the Plan period. [table 4]

In the area of ESG issues, Net Insurance aims to consolidate its policies through the introduction of six macro-targets:

• Increased focus on selecting investments that comply with ESG criteria and/or asset companies operating in "non-critical" sectors;
• Reduction of CO2 emissions from offices and data centres by 15% during the Plan period and increase of the share of renewable energy used;
• Continuous improvement of the working environment and maintenance of Great Place to Work recognition (score >60%);
• Commitment to maintaining the levels of gender representation (40% of the least represented gender) and absence of Gender Pay Gap with full compliance with the meritocracy logic;
• Development of the internal ESG committee in terms of developing initiatives to disseminate the culture of sustainability within the organisation;
• Integration of sustainability objectives into the variable remuneration of management during the Plan period.

The presentation of the new 2022-2025 Business Plan will be held today at 10:30 a.m. at the headquarters of Borsa Italiana. For further details on the new Business Plan, please refer to the presentation available on the Company's website³ .

Finally, the Company informs that the Board of Directors, in the same meeting, has approved the submission of the application for the listing on Euronext Milan, STAR segment (assuming the conditions, Euronext STAR Milan) and the filing with CONSOB of the application for approval of the prospectus for admission to trading of ordinary shares and warrants of the Company, delegating to the Chief Executive Officer any decision relating to the actual filing date taking into account, inter alia, the interlocusions with the Authority.

"Net Insurance's Business Plan" is an ambitious and yet realistic project that, with a view to continuity, aims to develop the strategic options already identified, progressively improving the profit profile and the shareholders' remuneration. "This Plan combines growth, value creation and sustainable development; Net's future is written in these three key words, has stated Andrea Battista, CEO of Net Insurance. "Together with the Board and all the people at Net, we are ready to continue with determination along the course that has been mapped out", has concluded Andrea Battista.

³ Link: https://www.netinsurance.it/investor-relations/presentazioni/roadshow/

Table 1

	2021	2022 F	2023 P	2024 P	2025 P
Gross premiums written $\epsilon$ Min	149.3	169.2	191.3	221.4	252.1
Ordinary Expenses $\epsilon$ Min	21.0	23.1	26.0	28.0	28.9
Net Tech. Result € Min	10.6	17.0	19.0	23.2	31.7
Financial Result € Min	3.3	2.5	3.7	4.5	5.2
Net Profit $\epsilon$ Min	11.3	14.9	20.2	19.3	25.9
Normalised Net Profit $\epsilon$ Min	11.5	13.6	15.8	19.3	25.9
ROE	13.4%	16.2%	19%	15.7%	18.8%

NOTE

"This press release contains "forward-looking statements", which include all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements are based on various assumptions, expectations, projections and provisional data concerning future events and are subject to numerous uncertainties and other factors, many of which are outside the control of Net Insurance S.p.A. (the "Company"). There are a variety of factors that may cause actual results and performance to be materially different from the explicit or implicit contents of any forwardlooking statements and thus, such forward-looking statements are not a reliable indicator of future performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law. The information and opinions contained in this press release are provided as of the date hereof and are subject to change without notice. Neither this press release nor any part of it nor the fact of its distribution may form the basis of, or be relied on or in connection with, any contract or investment decision.

The information, statements and opinions contained in this press release are for informational purposes only and do not constitute a public offer under any applicable legislation, nor an offer to sell or a solicitation to purchase or subscribe for any securities, nor do they constitute advice or recommendations with respect to such securities. None of the securities referred to herein have been or will be registered in the United States under the United States Securities Act of 1933 (as amended) (the "Securities Act"), or under the securities laws of any other state or jurisdiction in the United States or Australia, Canada or Japan or in any other jurisdiction where such offer or solicitation would be unlawful (the "Other Countries"), nor will there be any public offering of such securities in the United States. This press release does not constitute or form an offer or solicitation to purchase or subscribe for any securities in the United States or the Other Countries.

Distribution of this document in other jurisdictions may be prohibited and the recipients into whose possession this document comes shall be solely responsible for informing themselves about and observing any such restrictions.

This press release may contain summarised or information that has not been audited, and its recipients are advised to consult the documentation and public information made available by Net Insurance.

Neither the Company nor any member of the Net Insurance Group nor any of its or their representatives, directors or employees accept any liability whatsoever in connection with this press release or any of its contents or in relation to any loss arising from its use or from any reliance placed upon it."

Net Insurance is an insurance company that aims to offer protection solutions for Individuals, Families and small and medium-sized enterprises. Net Insurance's history, financial strength, agility and offering of innovative products and approaches make it a unique player within the Italian insurance industry. An evolving company with an eye on the future.

CONTACT INFORMATION

Net Insurance S.p.A. Via Giuseppe Antonio Guattani, 4 00161 Rome

Press Office

Investor Relator

Rossella Vignoletti M: +39 347 7634424 Tel: +39 06 89326299 e-mail: rossella.vignoletti@netinsurance.it

Ottavio Pennisi Tel: +39 06 89326518 Fax: +39 06 89326300 e-mail: investor.relations@netinsurance.it

Specialist

Banca Finnat Euramerica S.p.A. Palazzo Altieri - Piazza del Gesù, 49

Lorenzo Scimìa

Euronext Growth Advisor

EnVent Capital Markets Ltd. 42 Berkeley Square, London (UK) Tel: +39 06 69933446 Fax: +39 06 69933435 email: l.scimia@finnat.it

Tel: +44(0)2035198451