Unipol — Earnings Release 2016

Feb 10, 2017

FY16 PRELIMINARY CONSOLIDATED RESULTS UNIPOL AND UNIPOLSAI

Bologna, 10 February 2017

NOTICE

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This document has been prepared by Unipol Gruppo Finanziario S.p.A. and by UnipolSai Assicurazioni S.p.A. solely for information purposes in the context of the presentation of its FY16 preliminary results.

The content of this document does not constitute a recommendation in relation to any financial instruments issued by the Company or by other companies of the Group, nor it constitutes or forms part of any offer or invitation to sell, or any solicitation to purchase any financial instruments issued by the Company or by other companies of the Group, nor it may be relied upon for any investment decision by its addressees.

The FY16 data contained herein are preliminary in nature and refer to the date hereof and, therefore, may be subject to further variations. Please note that these preliminary data are subject to review by the Independent Auditors that still have to complete their necessary analysis in order to release their report.

The FY16 final results will be approved by the Board of Directors scheduled on 23 March 2017 and will be disclosed to the market according to, and in the terms set forth by, the applicable laws and regulations.

Unless otherwise specified all the figures reported in this presentation are on a consolidated basis.

PART1

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Consolidated results

PART₂ Insurance business Non-Life $\bullet$ Life $\bullet$

PART₃ Banking business

PART₄ Investments PART₅

Real Estate business

PART6

Total equity, dividends
and Solvency

PART₇ Appendix

PART 1 CONSOLIDATED
RESULTS

	FY15		FY16
	Pre-tax result	Net result	Pre-tax result	Net result
Non-Life	907	636	471	381
Life	343	235	379	263
Banking business	6	5	7	6
Other	-298	-298	-150	-116
Consolidated profit	958	579	706	535
Group profit		272		330

	FY15			FY16
	Pre-tax result	Net result	Pre-tax result	Net result
Non-Life	813	578	365	310
Life	344	237	357	250
Other	-114	-78	-41	-32
Consolidated profit	1,044	738	681	527
Group profit		711		497

PART₂ NON-LIFE
INSURANCE BUSINESS

Premiums by company	FY15	FY16
UnipolSai Group	7,334	7,218
Linear	145	150
UniSalute	301	337
Arca	103	104
Unipol Gruppo Finanziario	7,883	7,809

Premiums by company	FY15	FY16
a UnipolSai S.p.A.	7,084	6,960
Other companies	250	258
UnipolSai Group	7,334	7,218

7,334 7,218

4,254 4,083

FY15 FY16

3,080 3,135

Non-MV MV

^a Current basis of consolidation Operating figures

Combined ratio net of reinsurance: operating expenses/earned premiums after reinsurance + claims charges/earned premiums after reinsurance

MV TPL Combined Ratio	FY15	FY16
Direct business	93.8%	99.9%
ratio a Expense	23.5%	22.7%
commissions/premiums	13.3%	14.0%
other operating expenses/premiums	10.2%	8.8%
ratio b (incl. OTI) Loss	70.3%	77.2%

Other MV TPL indicators	Var. vs FY15
Total portfolio	+1.2%
retail	+1.0%
fleets	+5.6%
Portfolio average premium	-4.8%
No. of claims reported (followed-up passive claims)	+3.0%
c Frequency	+0.02 p.p.

^a Operating expenses / written premiums from direct business (before reinsurance) ^b Claims charges / earned premiums from direct business (before reinsurance) ^c Passive claims frequency (incurred + late claims reported during the year) Operating figures, current basis of consolidation

	FY15	FY16	D %
Premium income	549	591	+7.8%
MV	169	169	+0.1%
Accident & Health	340	378	+11.2%
Other	40	45	+10.9%
CoR direct business	88.8%	86.2%	-2.5 p.p.
Expense ratio	19.7%	17.8%	-1.8 p.p.
Loss ratio (incl. OTI)	69.1%	68.4%	-0.7 p.p.
IAS net result	66	73	+12.0%

PART₂ LIFE
INSURANCE BUSINESS

Income by company	FY15	FY16
UnipolSai Group	6,648	5,279
Arca Vita + AVI	1,943	1,718
Other companies	3	0
Unipol Gruppo Finanziario	8,593	6,997

Income by company	FY15	FY16
UnipolSai S.p.A.a	3,441	3,042
Popolare Vita + Lawr. Life	3,043	2,130
Other companies	164	107
UnipolSai Group	6,648	5,279

^a Pro-forma figures incl. Liguria Vita Operating figures

average minimum guaranteed yield average segregated accounts yield

average minimum guaranteed yield average segregated accounts yield

PART₃ BANKING
BUSINESS

State of the Contract of

Banking business	FY15	FY16	D %
Gross operating income	361	345	-4.4%
o/w interest income	234	216	-7.9%
o/w non-interest a income	127	129	+2.1%
Cost / Income	82.2%	80.8%	-1.3 p.p.
LLPs (Unipol Banca)	52	50	-3.3%
Pre-tax result	6	7	+10.8%
Net result	5	6	+21.0%

Loan Loss Provisions (LLPs)	FY15	FY16	D %
LLPs (Unipol Banca)	52	50	-3.3%
LLPs (UGF)	100	30	-70.0%
Total LLPs	152	80	-47.2%
ratio b Total NPE coverage	44.5%	45.7%	+1.3 p.p.

Net loans ^c Tangible Book Value ^d

The banking business includes Unipol Banca and its subsidiaries

^a FY15 figure including reclassification of income from loans disposal

Banking Group

^b Coverage ratio including UGF LLPs

^c Also net of provisions set aside at UGF S.p.A. level

^d Figure for the segment (UB + Finitalia)

Breakdown of total		FY15			FY16
NPE portfolio	net loans	gross loans	coverage ratio	net loans	gross loans	coverage ratio
Bad loans (Sofferenze)	1,129	2,644	57.3%	1,127	2,651	57.5%
Unlikely to pay	925	1,145	19.2%	767	958	19.9%
Past due	122	129	5.1%	145	151	3.5%
Total NPE	2,176	3,918	44.5%	2,040	3,760	45.7%

Including provisions set aside by UGF

PART 4 INVESTMENTS

Contraction Contraction

INVESTMENTS 19

FINANCIAL INVESTMENT YIELDS

UNIPOL GRUPPO FINANZIARIO

	FY16
		Non-Life		Life	Total
	€m	Yield%	€m	Yield%	€m	Yield%
Coupons and dividends	450	3.3%	1,372	3.6%	1,827	3.4%
Realised and unrealised gains/losses	$-16$	$-0.1%$	90	0.2%	68	0.1%
Total	434	3.1%	1,462	3.8%	1,896	3.5%
				€ 628 m FY15

UNIPOLSAI

	FY16
		Non-Life		Life		Total
	€m	Yield%	€m	Yield%	€m	Yield%
Coupons and dividends	427	3.3%	1,178	3.7%	1,605	3.6%
Realised and unrealised gains/losses	$-19$	$-0.1%$	77	0.2%	59	0.1%
Total	408	3.2%	1,256	3.9%	/1,664	3.7%

PART 5 REAL ESTATE BUSINESS

c Including exchange variation and operations on RE funds and associated SPV Operating figures

PART 6 TOTAL EQUITY, DIVIDENDS

Variation in AFS reserve Variation in AFS reserve

FY15					FY16
Statutory accounting result	Pay-out	Total dividends	DPS (€)	Statutory accounting result a	Pay-out	Total dividends	DPS (€)
166	77%	128	0.18	160	80%	128	0.18

		FY16		FY15
DPS (€)	Total dividends	Pay-out	Statutory accounting result a	DPS (€)	Total dividends	Pay-out	Statutory accounting result
0.125	353	77%	458	0.15	424	76%	556

€bn

€bn

PART₇ APPENDIX

Harry Charles

CASE

Listed Company

a Including shares held by Unipol Finance and Unipol Investment as at December 2016 ^b O/w 27.49% is the subject of a put option granted by Unipol to UnipolSai and of a call option granted by UnipolSai to Unipol

	FY15	FY16	D %
Consolidated net profit	579	535	-7.6%
Group net profit	272	330	+21.3%
EPS a (€)	0.38	0.46	+21.3%
Premium income (direct business)	16,476	14,806	-10.1%
o/w Non-Life	7,883	7,809	-0.9%
o/w Life	8,593	6,997	-18.6%
Ratio b Combined	93.9%	95.6%	+1.7 p.p.
	FY15	FY16	D %
Total equity	8,445	8,134	-3.7%
Shareholders' equity	5,524	5,649	+2.3%
BVPS (€)	7.70	7.87	+2.3%

	FY15	FY16	D %
Consolidated net profit	738	527	-28.5%
Group net profit	711	497	-30.1%
EPS a (€)	0.25	0.18	-30.1%
Premium income (direct business)	13,982	12,497	-10.6%
o/w Non-Life	7,334	7,218	-1.6%
o/w Life	6,648	5,279	-20.6%
Ratio b Combined	94.6%	96.5%	+1.9 p.p.
	FY15	FY16	D %
Total equity	6,615	6,535	-1.2%
Shareholders' equity	6,278	6,156	-1.9%
BVPS (€)	2.22	2.18	-1.9%

^a Group profit for the period / no. of total shares to date ^b Net of reinsurance (expense ratio calculated on earned premiums)

DISCLAIMER

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Maurizio Castellina, Senior Executive responsible for drawing up the corporate accounts of Unipol Gruppo Finanziario S.p.A. and UnipolSai Assicurazioni S.p.A., declares, in accordance with Article 154-bis, para 2, of the 'Consolidated Finance Act', that the accounting information reported in this document corresponds to the document contents, books and accounting records.

CONTACT INFORMATION

INVESTOR RELATIONS

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Adriano Donati Head of Investor Relations Tel +39 051 507 7063

investor.relations@unipol.it investor.relations@unipolsai.it

Giancarlo Lana	Tel +39 011 66 57 642
Eleonora Roncuzzi	Tel +39 051 507 7063
Giuseppe Giuliani	Tel +39 051 507 7218
Carlo Latini	Tel +39 051 507 6333
Silvia Tonioli	Tel +39 051 507 2371
Alena Harbatava	Tel +39 051 507 2919