Unipol — Investor Presentation 2018

Aug 10, 2018

1H18 CONSOLIDATED RESULTS UNIPOL AND UNIPOLSAI

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 1H18 were slightly different compared to 1H17, namely:

• Popolare Vita was part of Unipol and UnipolSai until 1Q18 only
• UniSalute and Linear, which were directly controlled by Unipol in 1H17, were included in UnipolSai perimeter in 1H18

For the sake of clarity, the basis of consolidation the figures refer to is stated in each slide.

	1H17	1H18
Consolidated pre-tax result	-516	769
Non-Life	368	329
Life	212	523
Banking	-940	18
Holding and other	-156	-100
Consolidated net result	-390	644
Group net result	-489	482
	o/w €	309 m gains from Pop. Vita sale

UNIPOL UNIPOLSAI
	1H17	1H18
	o/w €	309 m gains from Pop. Vita sale

1H17 and 1H18 results were impacted by changes in the perimeter and extraordinary items detailed in the next slide.

1H18 consolidated net result 1H18 consolidated net result

Premiums by company	1H17	1H18
UnipolSai S.p.A.	3,506	3,464
UniSalute	210	226
Linear	87	93
Arca Assicurazioni a	56	61
Other companies	167	163

UnipolSai acquired UniSalute and Linear in 4Q17. Adjusted figures and like-for-like changes include these two companies also in 1H17. Operating figures

^a Within the direct control of Unipol in 1H18; under the UnipolSai perimeter after 7 August 2018.

UnipolSai acquired UniSalute and Linear in 4Q17. Adjusted figures include these two companies also in 1H17. Combined ratio net of reinsurance: operating expenses/earned premiums after reinsurance+claims charges/earned premiums after reinsurance

UNIPOLSAI S.p.A.
------------------	--

MV TPL Combined Ratio	1H17	1H18
Direct Business	101.7%	97.9%
ratio a Expense	22.5%	21.3%
commissions/premiums	13.9%	13.0%
other operating expenses/premiums	8.6%	8.3%
ratio b (incl. OTI) Loss	79.2%	76.6%

No. of black boxes 3.7 million (39% of the retail portfolio)

Other MV TPL indicators	Var. vs FY17
Total portfolio	+0.4%
retail	+0.6%
fleets	-4.3%
Portfolio average premium	-1.1%
	Var. vs 1H17
No. of claims reported (followed-up managed claims)	-5.1%
Frequency (managed claims)	-0.2 p.p.

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

UNISALUTE
	1H17	1H18
Premium income	210	226
CoR direct business	88.6%	90.5%
Expense ratio	10.1%	10.1%
Loss ratio (incl. OTI)	78.5%	80.4%
IAS net result	17.5	18.9

LINEAR
	1H17	1H18
Premium income	87	93
CoR direct business	98.7%	96.8%
Expense ratio	22.2%	19.8%
Loss ratio (incl. OTI)	76.5%	77.0%
IAS net result	3.1	4.4

ARCA ASSICURAZIONI
	1H17	1H18
Premium income	56	61
CoR direct business	68.3%	72.7%
Expense ratio	31.2%	38.0%
Loss ratio (incl. OTI)	37.1%	34.7%
IAS net result	12.8	13.6

Income by company	1H17	1H18
UnipolSai S.p.A.	1,416	1,533
Popolare Vita + Lawr. Life b	456	105
Other companies	59	44
UnipolSai	1,931	1,681

^a Within the direct control of Unipol in 1H18; under the UnipolSai perimeter after 7 August 2018. Arca Vita and AVI achieved a total net profit for 1H18 of € 39.2 m (€ 36.3 m in 1H17). ^b The sale of Popolare Vita was finalized on 29 March 2018.

FY17 adj. and 1H18 excluding Popolare Vita. ^a Class 1 and class 5 technical reserves. Operating figures

	1Q18	1H18		1H17	1H17	1H18
Direct deposits	11,064	10,257			adj.
Indirect deposits	50,937	48,947	Gross operating income	170 a	170 a	177
			o/w interest income	110 a	110 a	103
a Net loans	6,956	6,904	o/w non-interest income	60 a	60 a	74
			Pre-tax result	-942 a	5 b	18
Unipol CET1 ratio		30.1%	Net result	-714 a	8 b	13
(fully loaded)

NPEs		1Q18			1H18
	net loans	gross loans	coverage ratio	net loans	gross loans	coverage ratio
Bad loans (Sofferenze)	26	116	77%	24	101	77%
Unlikely to pay	392	710	45%	341	636	46%
Past due	75	89	16%	70	88	21%
Total NPEs	494	915	46%	434	825	47%

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

		1 Feb 18 a			1H18
NPEs TREND	net loans	gross loans	coverage ratio	net loans	gross loans	coverage ratio
Bad loans (Sofferenze)	553	2,900	81%	518	2,702	81%
Unlikely to pay	0	0		0	0
Past due	0	0		0	0
Total NPEs	553	2,900	81%	518	2,702	81%

NPEs highlights (1 Feb – 30 Jun)	Collections /GBV
Bad loans (GBV reduction)	198
Collections	49	25%

Operating figures

1H18 Non-Life Life Total €m Yield €m Yield €m Yield Coupons and dividends ¹⁹⁷ 3.1% ⁶¹⁶ 3.4% ⁸¹⁵ 3.3% Realized and unrealized gains/losses 17 0.3% 145 0.8% 161 0.6% Total ²¹⁴ 3.4% ⁷⁶¹ 4.2% ⁹⁷⁵ 3.9% 1H18 Non-Life Life Total €m Yield €m Yield €m Yield Coupons and dividends ¹⁹³ 3.1% ⁵⁰⁹ 3.5% ⁷⁰² 3.4% Realized and unrealized gains/losses 17 0.3% 143 1.0% 160 0.8% Total ²⁰⁹ 3.4% ⁶⁵² 4.5% ⁸⁶² 4.2%

UNIPOL UNIPOLSAI

UNIPOL – Tot. portfolio € 4.1 bn

^a No. 65 deeds as at 30 June 2018. b Including exchange variation and operations on RE funds and associated SPV. Operating figures.

€bn

UNIPOL (consolidated) PARTIAL INTERNAL MODEL

UNIPOLSAI (consolidated) ECONOMIC CAPITAL

UNIPOLSAI (solo) PARTIAL INTERNAL MODEL

^aStake 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 ^c Arca Vita (that controls Arca Assicurazioni) was transferred to UnipolSai on 7 August 2018

UNIPOL
	1H17	1H18
Consolidated net result	-390	644
Group net result	-489	482
Premium income (direct business)	6,327	6,258	Premium income
o/w Non-Life	4,026	4,007
o/w Life	2,300	2,251
Combined Ratio net of reins.	97.1%	95.1%
	FY17	1H18
Total equity	7,453	6,692
Shareholders' equity	5,486	5,352

	1H17	1H18
Consolidated net result	282	647
Group net result	265	618
Premium income (direct business)	5,604	5,627
o/w Non-Life	3,673	3,946
o/w Life	1,931	1,681
Combined Ratio net of reins.	97.9%	95.4%
	FY17	1H18
Total equity	6,194	5,634
Shareholders' equity	5,869	5,539

1H17 consolidated net results include the impact of the restructuring of the Group banking sector

(€ -780 m at Unipol level and € -104 m at UnipolSai level).

1H18 consolidated net results include the capital gain from Popolare Vita sale (€ +309 m for both Unipol and UnipolSai)

and the real estate write-down on Area Castello (€ -27 m for both Unipol and UnipolSai).

Fleonora 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