Unipol — Interim / Quarterly Report 2018

Nov 9, 2018

9M18 CONSOLIDATED RESULTS UNIPOL AND UNIPOLSAI

Bologna, 9 November 2018

PART 1

Consolidated Results

PART 2

Insurance Business

• Non-Life
• Life

PART 3

Banking and NPE Businesses

PART 4 Investments PART 5 Solvency

PART 6 Appendix

THE BASES OF CONSOLIDATION OF UNIPOL AND UNIPOLSAI IN 9M18 WERE SLIGHTLY DIFFERENT COMPARED TO 9M17, NAMELY:

• POPOLARE VITA WAS PART OF UNIPOL AND UNIPOLSAI UNTIL 1Q18 ONLY
• UNISALUTE AND LINEAR, WHICH WERE DIRECTLY CONTROLLED BY UNIPOL IN 9M17, WERE INCLUDED IN UNIPOLSAI PERIMETER IN 9M18
• ARCA VITA, WHICH WAS DIRECTLY CONTROLLED BY UNIPOL UNTIL 1H18, WAS INCLUDED IN UNIPOLSAI PERIMETER STARTING FROM 3Q18.

PART 1 CONSOLIDATED RESULTS

CONSOLIDATED RESULTS 4

CONSOLIDATED RESULTS

€m

UNIPOL
	9M17	9M18
Consolidated pre-tax result	-292	1,079
Non-Life	539	591
Life	288	583
Banking	-941	27
Holding and other	-178	-121
Consolidated net result	-229	843
Group net result	-377	639
	o/w €	309 m gain from Pop. Vita sale
net result a Adj. consolidated	508	522

9M17 9M18 Consolidated pre-tax result 601 1,087 Non-Life 369 575 Life 251 564 Other -19 -52 Consolidated net result 430 862 Group net result 405 828 o/w € 309 m gain from Pop. Vita sale

^a Excluding Popolare Vita result from both 9M17 and 9M18 as well as gain from its sale and excluding the impact of the restructuring of the banking business. ^b Including UniSalute, Linear and Arca in both 9M17 and 9M18.

PART 2 NON-LIFE INSURANCE BUSINESS

NON-LIFE INSURANCE BUSINESS 6

DIRECT PREMIUM INCOME

€m

Premiums by company	9M17	9M18	var. %
UnipolSai S.p.A.	4,870	4,823	-1.0%
UniSalute	275	298	+8.4%
Linear	127	133	+4.8%
Arca Assicurazioni	79	87	+9.0%
Other companies	238	237	-0.8%
Total premium income	5,590	5,577	-0.2%

9M18 adj. premiums breakdown
Motor Vehicles	55%
Accident and Health	16%
Property	14%
General TPL	8%
Other	7%

UnipolSai acquired UniSalute and Linear in 4Q17 and Arca in 3Q18. Adjusted figures include UniSalute, Linear and Arca in both 9M17 and 9M18. Operating figures

NON-LIFE INSURANCE BUSINESS 7

NON-LIFE COMBINED RATIO NET OF REINSURANCE

UnipolSai acquired UniSalute and Linear in 4Q17 and Arca in 3Q18.

Adjusted figures include UniSalute, Linear and Arca in both 9M17 and 9M18.

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

PART 2 LIFE INSURANCE BUSINESS

LIFE INSURANCE BUSINESS 9

DIRECT INCOME

€m

Premiums by company	9M17	9M18	var. %
UnipolSai S.p.A.	2,029	2,180	+7.5%
Arca Vita + AVI	520	811	+55.9%
Other companies	73	67	-8.3%
Total premium income	2,623	3,059	+16.6%

9M18 adj. premiums breakdown
Traditional	61%
Unit linked	13%
Pension funds	18%
Capitalization	9%

UnipolSai acquired Arca in 3Q18. The sale of Popolare Vita was finalized in 1Q18. Adjusted figures include Arca and exclude Popolare Vita for all 9M17 and 9M18.

PART 3 BANKING AND NPE BUSINESSES

BANKING BUSINESS KPIs

€m

9M17 1Q18 9M18 9M17 9M18 adj. Direct deposits 11,064 10,311 251 a Gross operating income 256 262 Indirect deposits 50,937 48,815 o/w interest income 155 155 a 150 a Net loans 6,956 6,904 o/w non-interest 101 96 a 113 income 4 b Pre-tax result -941 27 Unipol CET1 ratio 30.5% 9 b Net result -710 19 (fully loaded)
NPEs 1Q18 9M18
net gross coverage net gross coverage

Total NPEs	494	915	46%	426	806	47%
Past due	75	89	16%	56	70	20%
Unlikely to pay	392	710	45%	345	640	46%
(Sofferenze) Bad loans	26	116	77%	25	96	74%
	net loans	gross loans	coverage ratio	net loans	gross loans	coverage ratio
NPEs		1Q18			9M18

The "Banking Business" is comprised of Unipol Banca and Finitalia – Operating figures.

For a more useful comparison the 9M18 balance sheet figures have been compared with the 1Q18 figures following the spin-off of UnipolReC.

^a Like-for-like figures.

^b Excluding the impact of the restructuring of the banking business.

^c FNR (Fondo Nazionale di Risoluzione) and FITD (Fondo Interbancario di Tutela Depositi)

BANKING AND NPE BUSINESSES 12

NPE BUSINESS –UNIPOL REC

€m

		1 Feb 18 a		9M18
NPEs TREND	net loans	gross loans	coverage ratio	net loans	gross loans	coverage ratio
(Sofferenze) Bad loans	553	2,900	81%	498	2,651	81%
Unlikely to pay	0	0		0	0
Past due	0	0		0	0
Total NPEs	553	2,900	81%	498	2,651	81%

NPEs highlights (1 Feb – 30 Sept)	Collections /GBV
Bad loans (GBV reduction)	250
Collections	79	32%

PART 4 INVESTMENTS

INVESTMENTS 14

ASSET ALLOCATION

Operating figures

INVESTMENTS 15

FINANCIAL INVESTMENT YIELDS

	9M18 act.
		Non-Life		Life		Total
	€m	Yield	€m	Yield	€m	Yield
Coupons and dividends	320	3.4%	903	3.4%	1,227	3.3%
Realized and unrealized gains/losses	49	0.5%	159	0.6%	209	0.6%
Total	369	3.9%	1,063	4.0%	1,436	3.9%

UNIPOL UNIPOLSAI

	9M18 act.
	Non-Life			Life	Total
	€m	Yield	€m	Yield	€m	Yield
Coupons and dividends	316	3.4%	797	3.5%	1,113	3.4%
Realized and unrealized gains/losses	49	0.5%	157	0.7%	206	0.6%
Total	365	3.9%	954	4.2%	1,319	4.1%

				9M18 adj.							9M18 adj.
		Non-Life		Life		Total			Non-Life		Life	Total
	€m	Yield	€m	Yield	€m	Yield		€m	Yield	€m	Yield	€m	Yield
Total	369	3.9%	1,020	4.1%	1,393	3.9%	Total	369	3.9%	1,020	4.1%	1,389	4.0%

Adjusted figures exclude Popolare Vita and, with respect to UnipolSai, include Arca Vita for all 9M18.

INVESTMENTS 16

REAL ESTATE

UNIPOL – Tot. portfolio € 4.0 bn

^a No. 100 deeds as at 30 September 2018. ^b Including exchange variation and operations on RE funds and associated SPV. Operating figures.

PART 5 SOLVENCY

SOLVENCY

SOLVENCY

€bn

UNIPOL (consolidated) PARTIAL INTERNAL MODEL

UNIPOLSAI (consolidated) ECONOMIC CAPITAL

UNIPOLSAI (solo) PARTIAL INTERNAL MODEL

PART 6 APPENDIX

APPENDIX 20

GROUP STRUCTURE

a Stake as at 9 July 2018. Including the shares held by Unipol Finance, Unipol Investment and UnipolPart I. 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 21

KEY PERFORMANCE INDICATORS

€m

UNIPOL
	9M17 act.	9M18 act.
Consolidated net result	-229	843
Group net result	-377	639
Premium income (direct business)	8,785	8,740	Premium income
o/w Non-Life	5,590	5,577
o/w Life	3,195	3,164
Combined Ratio net of reins.	96.4%	93.5%
	FY17 act.	9M18 act.
Total equity	7,453	6,677
Shareholders' equity	5,486	5,381

	9M17 act.	9M18 act.
Consolidated net result	430	862
Group net result	405	828
Premium income (direct business)	7,783	8,109
o/w Non-Life	5,109	5,516
o/w Life	2,674	2,594
Combined Ratio net of reins.	97.3%	93.7%
	FY17 act.	9M18 act.
Total equity	6,194	5,745
Shareholders' equity	5,869	5,505

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 9M18 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 +39 011 665 7088
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