Unipol — Interim / Quarterly Report 2016

Aug 4, 2016

1H16 CONSOLIDATED RESULTS UNIPOL AND UNIPOLSAI

Bologna, 4 August 2016

PART₁

$\overline{2}$

Consolidated results

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

PART₃ Banking business

PART₄ Investments PART₅

Real Estate business

PART6

Shareholders' equity
and Solvency

PART₇ Appendix

PART 1 CONSOLIDATED
RESULTS

	1H15		1H16
	Pre-tax result	Net result	Pre-tax result	Net result
Non-Life	534	374	268	196
Life	250	179	193	135
Banking business	6	4	2	1
Other	-142	-111	-68	-57
Consolidated profit	647	446	394	276
Group profit		255		160

		1H15	1H16
	Pre-tax result	Net result	Pre-tax result	Net result
Non-Life	482	337	225	168
Life	251	183	176	125
Other	-87	-64	-18	-14
Consolidated profit	645	455	383	280
Group profit		438		269

PART₂ NON-LIFE
INSURANCE BUSINESS

Premiums by company	1H15	1H16
UnipolSai Group	3,772	3,685
Linear	78	74
UniSalute	177	197
Arca	55	54
Unipol Gruppo Finanziario	4,082	4,011

Premiums by company	1H15	1H16
a UnipolSai S.p.A.	3,643	3,556
Other companies	129	129
UnipolSai Group	3,772	3,685

^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	1H15	1H16
Direct business	94.5%	99.9%
ratio a Expense	22.2%	21.8%
commissions/premiums	12.6%	13.7%
other operating expenses/premiums	9.6%	8.1%
ratio b (incl. OTI) Loss	72.3%	78.1%

Other MV TPL indicators	Var. vs FY15
Total portfolio	+1.9%
retail	+2.0%
fleets	+0.6%
Portfolio average premium	-3.7%
	Var. vs 1H15
No. of claims reported (followed-up passive claims)	+1.8%
Frequency	-0.07 p.p.

^a Operating expenses/written premiums from direct business (before reinsurance). ^b Claims charges/earned premiums from direct business (before reinsurance). Operating figures, current basis of consolidation.

	1H15	1H16	D %
Premium income	309	326	+5.3%
MV	91	85	-6.3%
Accident&Health	198	218	+10.2%
Other	20	22	+9.7%
CoR direct business	87.7%	87.9%	+0.2 p.p.
Expense ratio	16.6%	16.4%	-0.2 p.p.
Loss ratio (incl. OTI)	71.1%	71.5%	+0.4 p.p.
IAS net result	31	29	-6.4%

PART₂ LIFE
INSURANCE BUSINESS

Income by company	1H15	1H16
UnipolSai Group	3,512	3,036
Arca Vita+AVI	1,107	1,360
Unipol Gruppo Finanziario	4,619	4,396

Income by company	1H15	1H16
a UnipolSai S.p.A.	1,811	1,593
Popolare Vita+Lawr. Life	1,597	1,384
Other companies	104	60
UnipolSai Group	3,512	3,036

^a 1H15 pro-forma figures incl. Liguria Vita. Operating figures.

average minimum guaranteed average segregated accounts yields

PART₃ BANKING
BUSINESS

State of the Contract of

	1H15	1H16	D %
Gross operating income	177	172	-2.8%
o/w interest income	124	110	-11.4%
o/w non-interest income	53	62	17.5%
Loans loss provisions	51	31	-38.3%
a Pre-tax result	6	2	-66.0%
a Net result	4	1	-73.4%
Cost / Income	80.2%	87.2%	+6.9 p.p.
	FY15	1H16	D %
Total NPLs coverage ratio	44.5%	45.2%	+0.7 p.p.

The banking business includes Unipol Banca and its subsidiaries.

^a Profit for UGF consolidated banking sector.

^b FY15 figure excluding €32m of collateralized deposits with Cassa Compensazione e Garanzia (€0m as at 1H16).

^c Net of provisions at UGF S.p.A. level.

Break-down of overall		FY15			1H16
Non Performing Loans portfolio	net loans	gross loans	coverage ratio	net loans	gross loans	coverage ratio
Bad loans	1,129	2,644	57.3%	1,132	2,680	57.8%
Unlikely to pay	925	1,145	19.2%	832	1,023	18.6%
Past due	122	129	5.1%	150	155	3.5%
Total NPLs	2,176	3,918	44.5%	2,114	3,858	45.2%

Including provisions set aside by UGF.

PART 4 INVESTMENTS

Contraction Contraction

€bn

excluding DDOR, Lawrence Life and class D, investment in subsidiaries, associates and JVs.

Operating figures.

				1H16
		Non-Life		Life		Total
	€m	Yield%	€m	Yield%	€m	Yield%
Coupons and dividends	225	3.2%	683	3.6%	912	3.4%
Realised and unrealised gains/losses	27	0.4%	17	0.1%	46	0.2%
Total	253	3.6%	700	3.7%	958	3.6%

	1H16
		Non-Life		Life		Total
	€m	Yield%	€m	Yield%	€m	Yield%
Coupons and dividends	214	3.3%	590	3.7%	803	3.6%
Realised and unrealised gains/losses	26	0.4%	10	0.1%	35	0.2%
Total	239	3.7%	600	3.8%	839	3.8%

Income pertaining to insurance companies of the Unipol Group and to UGF SpA, excluding DDOR, Lawrence Life and class D,

investments in subsidiaries, associates and JVs, investments in RE and RE funds.

Operating figures.

PART 5 REAL ESTATE BUSINESS

^b No. 37 deeds as at 1H16.

c Including exchange variation and operations on R.E. funds and other associated companies. Operating figures.

PART 6 SHAREHOLDERS'EQUITY

Charles Comments

€bn

Figures calculated using the USP (Undertaking Specific Parameters) according to current regulation.

PART₇ APPENDIX

Harry Charles

CALCIO

a Including shares held indirectly by Unipol Finance and Unipol Investment as at 30 June 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.

	1H15	1H16	D %
Consolidated net profit	446	276	-38.1%
Group net profit	255	160	-37.2%
EPS a (€)	0.36	0.22	-37.2%
Premium income (direct business)	8,701	8,408	-3.4%
o/w Non-Life	4,082	4,011	-1.7%
o/w Life	4,619	4,396	-4.8%
Ratio b Combined	97.2%	96.3%	-0.8 p.p.

	FY15	1H16	D %
c Solvency II (consolidated figures)	1.50x	1.40x	-0.10x
Total equity	8,445	8,006	-5.2%
Shareholders' equity	5,524	5,464	-1.1%
BVPS (€)	7.70	7.62	-1.1%

	1H15	1H16	D %
Consolidated net profit	455	280	-38.5%
Group net profit	438	269	-38.5%
EPS a (€)	0.16	0.10	-39.5%
Premium income (direct business)	7,284	6,722	-7.7%
o/w Non-Life	3,772	3,685	-2.3%
o/w Life	3,512	3,036	-13.5%
Ratio b Combined	97.8%	96.9%	-0.9 p.p.

	FY15	1H16	D %
c Solvency II (consolidated figures)	1.90x	1.73x	-0.17x
Total equity	6,615	6,263	-5.3%
Shareholders' equity	6,278	5,940	-5.4%
BVPS (€)	2.22	2.10	-5.4%

^a Group profit for the period / no. total shares to date.

^b Net of reinsurance (expense ratio calculated on earned premiums).

^c Figures calculated using the USP (Undertaking Specific Parameters) according to current regulation.

APPENDIX 27 DISCLAIMER

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.

APPENDIX 28

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 57 642
Eleonora Roncuzzi	Tel +39 051 507 7063
Laura Marrone	Tel +39 051 507 2183
Giuseppe Giuliani	Tel +39 051 507 7218
Carlo Latini	Tel +39 051 507 6333
Silvia Tonioli	Tel +39 051 507 2371