Unipol — Earnings Release 2017

Feb 9, 2018

FY17 PRELIMINARY CONSOLIDATED RESULTS UNIPOL AND UNIPOLSAI

Bologna, 9 February 2018

NOTICE

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 its FY17 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 FY17 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 FY17 final results will be approved by the Board of Directors scheduled on 22 March 2018 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

Consolidated results

PART₄ Investments

PART₂ Insurance Business

Non-Life $\bullet$

Life $\bullet$

PART₅ Dividend proposal

PART₃ Banking Business

PART6 Solvency

Unipoltobe

PART₇ Appendix

PART1 CONSOLIDATED RESULTS

The Season

	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

PART₂ NON-LIFE INSURANCE BUSINESS

Contract of the Contract of the Contract of the Contract of the Contract of the Contract of The Contract of The Contract of The Contract of The Contract of The Contract of The Contract of The Contract of The Contract of Th

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)

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

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

NON-LIFE INSURANCE BUSINESS

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

PART₂ LIFE INSURANCE BUSINESS

Contract of

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

SEGREGATED ACCOUNTS AND MINIMUM GUARANTEED YIELDS

PART₃ BANKING BUSINESS

Contract Contract Contract Contract Contract Contract Contract Contract Contract Contract Contract Contract Co

Indirect deposits

FY17

554

o/w UnipolReC ^b

normalized

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%

Gross operating income
		345		348
		216		203
		129		145
FY16 FY17 normalized
interest income non-interest income
Unipol CET1 ratio
Unipol Banca CET1 ratio

Net result

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

Unipol Banca pre-split

	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 1° February 2018

The State of the Contract of PART4 INVESTMENTS

INVESTMENTS

FINANCIAL INVESTMENT YIELDS

UNIPOL

UNIPOLSAI

FY17								FY17
	Non-Life		Life Total				Non-Life		Life		Total
	€m	Yield%	€m	Yield%	€m	Yield%		€m	Yield%	€m	Yield%	€m	Yield%
Coupons and 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

REAL ESTATE

UNIPOL - Tot. portfolio € 4.1 bn

Unipol UnipolSai

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

The Street of the South of the Society of PART₅ DIVIDEND PROPOSAL

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

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

PART 6 SOLVENCY

Charles Strategy

€bn

€bn

€bn

Figures net of dividend distribution proposal

PART₇ APPENDIX

Philippine of the Company

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

	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

	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.

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