Unipol — Earnings Release 2017

Mar 23, 2018

FY17 CONSOLIDATED RESULTS UNIPOL AND UNIPOLSAI

Bologna, 23 March 2018

PART 1

Consolidated results

PART 2

Insurance Business

• Non-Life
• Life

PART 5 Dividend proposal PART 3 Banking Business

PART 6 Solvency

PART 7 Appendix

PART 4

Investments

2

PART 1 CONSOLIDATED RESULTS

CONSOLIDATED RESULTS 4

CONSOLIDATED RESULTS

€m

	UNIPOL			UNIPOLSAI
	FY16	FY17	FY17 a normalized
Consolidated pre-tax result	706	-179	904
Non-Life	471	687	687
Life	379	328	328
Banking	7	-987	16
Holding and other	-150	-207	-127
Consolidated net result	535	-169	655
Group net result	330	-346	450

	FY16	FY17	FY17 a normalized
Consolidated pre-tax result	681	760	873
Non-Life	365	501	593
Life	357	286	307
Other	-41	-27	-27
Consolidated net result	527	537	649
Group net result	497	504	617

PART 2 NON-LIFE INSURANCE BUSINESS

NON-LIFE INSURANCE BUSINESS 6

DIRECT PREMIUM INCOME

€m

Premiums by company	FY16	FY17
UnipolSai SpA	6,960	6,901
a UniSalute	337	371
Linear a	150	172
Arca Assicurazioni b	104	110
Other companies	258	312

^a 9M17 under the direct control of Unipol SpA. 4Q17 under the direct control of UnipolSai SpA.. ^b On 8 November 2017, Unipol, BPER and BPS renewed in advance their strategic bancassurance partnership in Life (Arca Vita) and Non-Life (Arca Assicurazioni) sectors. The agreement will have a 5-year term (from 1 Jan. 2018)

NON-LIFE INSURANCE BUSINESS 7

NON-LIFE COMBINED RATIO NET OF REINSURANCE

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

UNIPOLSAI S.P.A. – MV TPL TECHNICAL INDICATORS DIRECT BUSINESS

UNIPOLSAI S.p.A.

MV TPL Combined Ratio FY16 FY17 Direct Business 99.9% 97.7% Expense ratio ^a 22.7% 22.7% commissions/premiums 14.0% 13.6% other operating expenses/premiums 8.8% 9.1% Loss ratio ^b(incl. OTI) 77.2% 75.1%

No. of black boxes 3.5 million (37% of the portfolio)

Other MV TPL indicators	Var. vs FY16
Total portfolio	-1.0%
retail	-1.1%
fleets	+0.4%
Portfolio average premium	-2.1%
No. of claims reported (followed-up passive claims)	-3.6%
Frequency	-0.16 p.p.

^a Operating expenses / written premiums from direct business (before reinsurance) ^b Claims charges / earned premiums from direct business (before reinsurance) Operating figures

OTHER INSURANCE COMPANIES

€m

UNISALUTE
	FY16	FY17
Premium income	337	371
Accident & Health	336	370
Other	1	1
CoR direct business	85.8%	87.5%
Expense ratio	11.2%	11.4%
Loss ratio (incl. OTI)	74.5%	76.2%
IAS net result	41	43

LINEAR
	FY16	FY17
Premium income	150	172
MV	135	155
Other	15	18
CoR direct business	102.4%	99.0%
Expense ratio	24.6%	21.6%
Loss ratio (incl. OTI)	77.8%	77.4%
IAS net result	5	6

ARCA ASSICURAZIONI

	FY16	FY17
Premium income	104	110
MV	34	33
Other	70	77
CoR direct business	64.5%	63.3%
Expense ratio	29.4%	30.4%
Loss ratio (incl. OTI)	35.1%	32.9%
IAS net result	28	30

PART 2 LIFE INSURANCE BUSINESS

LIFE INSURANCE BUSINESS 11

DIRECT INCOME

€m

Income by company	FY16	FY17
UnipolSai (group)	5,279	3,713
Arca Vita + AVI	1,718	711
Unipol	6,997	4,424

Income by company	FY16	FY17
UnipolSai S.p.A.	3,042	2,892
Popolare Vita + Lawr. Life a	2,130	706
Other companies	107	115
UnipolSai	5,279	3,713

8%

Unit linked Pension funds Capitalization

Traditional

^a On 29 June 2017, the BoD of UnipolSai approved the termination of the agreement with Banco BPM and the exercising of the put option on its stake in Popolare Vita

LIFE INSURANCE BUSINESS 12

SEGREGATED ACCOUNTS AND MINIMUM GUARANTEED YIELDS

^a Class 1 and class 5 technical reserves Operating figures

PART 3 BANKING BUSINESS

BANKING BUSINESS 14

KPIs

€m

Gross operating income

49,482 FY16 FY17 50,611 Indirect deposits -2.2%

Loan Loss Provisions (LLPs)	FY16	FY17
LLPs Unipol Banca	44	967
LLPs Unipol	30	105
LLPs Finitalia	6	6
Total LLPs	80	1,078
Total NPEs coverage ratio	45.7%	71.1%

Unipol Banca CET1 ratio Unipol CET1 ratio

216

345

FY16

129

FY17 normalized

interest income non-interest income

145

348

203

31.5%

15.2%

The banking business is comprised of Unipol Banca, its subsidiaries and UnipolSai Investimenti SGR – Operating figures ^a FY17 net of loans to the parent company ^b Proforma figures. Spin-off 1st February 2018

BANKING BUSINESS 15

Unipol Banca pre-split

FOCUS ON NON-PERFORMING EXPOSURES OF THE BANKING SECTOR

€m

		FY16			FY17
	net loans	gross loans	coverage ratio	net loans	gross loans	coverage ratio
Bad loans (Sofferenze)	1,127	2,651	57%	598	3,025	80%
Unlikely to pay	767	958	20%	435	726	40%
Past due	145	151	3%	75	88	14%
Total NPEs	2,040	3,760	46%	1,109	3,839	71%

o/w UnipolRec ^a

	FY17 proforma
net loans	gross loans	coverage ratio
554	2,906	81%
554	2,906	81%

The banking business is comprised of Unipol Banca, its subsidiaries and UnipolSai Investimenti SGR – Operating figures Including provisions made by Unipol S.p.A. ^a Spin-off 1st February 2018

PART 4 INVESTMENTS

INVESTMENTS 17

ASSET ALLOCATION

INVESTMENTS 18

FINANCIAL INVESTMENT YIELDS

UNIPOL	UNIPOLSAI

			FY17							FY17
		Non-Life		Life		Total			Non-Life		Life		Total
	€m	Yield%	€m	Yield%	€m	Yield%		€m	Yield%	€m	Yield%	€m	Yield%
Coupons and dividends	442	3.3%	1,321	3.4%	1,766	3.3%	Coupons and dividends	423	3.4%	1,119	3.5%	1,542	3.4%
Realized and unrealized gains/losses	147	1.1%	44	0.1%	193	0.4%	Realized and unrealized gains/losses	150	1.2%	52	0.2%	201	0.5%
Total	590	4.4%	1,365	3.5%	1,959	3.7%	Total	572	4.6%	1,170	3.6%	1,742	3.9%

INVESTMENTS 19

REAL ESTATE

UNIPOL – Tot. portfolio € 4.1 bn

b

^a No. 126 deeds as at 31 December 2017. Including exchange variation and operations on RE funds and associated SPV Operating figures

PART 5 DIVIDEND PROPOSAL

2017 DIVIDEND PROPOSAL

€m

UNIPOL
FY16 FY17
	Statutory accounting result	Pay-out	Total dividends	DPS (€)	Statutory accounting result	Pay-out	Total dividends	DPS (€)
	160	80%	128	0.18	213	60%	129	0.18

UNIPOLSAI

FY16						FY17
Statutory accounting result			Pay-out	dividends	Total	DPS	(€)	Statutory accounting	result	Pay-out		dividends	Total	DPS (€)
	458		77%		353		0.125		577	71%			409	0.145

PART 6 SOLVENCY

SOLVENCY

SOLVENCY – UNIPOL (consolidated)

€bn

ECONOMIC CAPITAL STANDARD FORMULA USP

Figures net of dividend distribution proposal

SOLVENCY

SOLVENCY – UNIPOLSAI

€bn

ECONOMIC CAPITAL (consolidated)

PARTIAL INTERNAL MODEL (UnipolSai solo)

SOLVENCY 25

SOLVENCY – OWN FUNDS AND SCR DETAILS

€bn

PART 7 APPENDIX

APPENDIX 27

GROUP STRUCTURE

Structure after the streamlining of the insurance business, following the sale of UniSalute and Linear to UnipolSai (effective since November 2017)

^aIncluding the shares held by Unipol Finance and Unipol Investment ^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

APPENDIX 28

KEY PERFORMANCE INDICATORS

€m

	FY16	FY17	FY17 a normalized
Consolidated net result	535	-169	655
Group net result	330	-346	450
Premium income direct business	14,806	12,291
o/w Non-Life	7,809	7,867
o/w Life	6,997	4,424
Combined Ratio	95.6%	96.4%

	FY16	FY17	FY17 normalized
Total equity	8,134	7,453	8,277
Shareholders' equity	5,649	5,486	6,281

UNIPOL UNIPOLSAI FY16 FY17 FY17 ^a normalized Consolidated net result 527 537 649 Group net result 497 504 617 Premium income direct business 12,497 11,068 o/w Non-Life 7,218 7,355 o/w Life 5,279 3,713 Combined Ratio 96.5% 97.2% FY16 FY17 FY17 normalized Total equity 6,535 6,194 6,306 Shareholders' equity 6,156 5,869 5,982

^a Figures restated excluding the impacts of the restructuring of the Group banking sector

DISCLAIMER

Maurizio Castellina, Senior Executive responsible for drawing up the corporate accounts of Unipol Gruppo 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.

This document has been prepared by Unipol Gruppo S.p.A. and by UnipolSai Assicurazioni S.p.A. solely for information purposes in the context of the presentation of their FY17 results. The content of this document does not constitute a recommendation in relation to any financial instruments issued by the companies of the Unipol 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 companies of the Unipol Group, nor it may be relied upon for any investment decision by its addressees. Unless otherwise specified all the figures reported in this presentation are on a consolidated basis.

INVESTOR RELATIONS CONTACTS

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 57 088
Eleonora Roncuzzi	Tel +39 051 507 7063
Carlo Latini	Tel +39 051 507 6333
Giuseppe Giuliani	Tel +39 051 507 7218
Silvia Tonioli	Tel +39 051 507 2371
Colm Begley	Tel +39 051 507 7837