Unipol — Investor Presentation 2019

Aug 2, 2019

Unless otherwise specified, all figures reported in this presentation refer to the Unipol Group.

1H18, FY18, 1H19 figures and variations are reported on the basis of the current perimeter, unless otherwise specified.

€m

	1H18
	Consolidated net result	Group net result
1H18 actual	644	482
gain on Pop. Vita sale	-309	-247
a perimeter normalisation	-24	-20
1H18 normalised	311	214

		1H19
	Consolidated net result	Group net result
1H19 actual	740	627
BPER 1st consolid. impact	-388	-357
1H19 normalised	353	270

^a Normalisations refer to Popolare Vita, Arca and Unipol Banca results

UNIPOL UNIPOLSAI

	1H18
	Consolidated net result	Group net result
1H18 actual	647	618
gain on Pop. Vita sale	-309	-309
a perimeter normalisation	+13	+9
1H18 normalised	351	318

	1H19
	Consolidated net result	Group net result
1H19 actual	377	364
	--	--
1H19 normalised	377	364

€m

	1H18	1H19	Var%
Consolidated pre-tax result	426	473	+11.0%
Non-life	326	386
Life	200	139
Holding and other	-100	-51
Consolidated net result	311	353	+13.3%
Group net result	214	270	+25.9%

UNIPOL UNIPOLSAI

	1H18	1H19 a	Var%
Consolidated pre-tax result	479	501	+4.6%
Non-life	328	387
Life	201	140
Other	-50	-25
Consolidated net result	351	377	+7.4%
Group net result	318	364	+14.6%

^a Normalised and actual results are the same at UnipolSai level

€m

1H19 Consolidated results

Direct premium income
4,007		4,109	+2.6%
2,157		2,151	-0.3%
1,850		1,958	+5.8%
1H18		1H19
MV		Non-MV

	€m	%	Var%
Mobility	2,314	56%	+0.8%
Motor TPL	1,770	43%	-1.6%
M.O.D.	382	9%	+6.5%
Other	163	4%	+16.9%
Welfare a	715	17%	+10.4%
Health	380	9%	+17.6%
Accident	335	8%	+3.3%
Property	1,079	26%	+1.6%
Property	578	14%	-0.4%
General TPL	347	8%	+2.5%
Other	155	4%	+7.6%
Total	4,109	100%	+2.6%

Premiums by business line Premiums by company

	€m	%	Var%
UnipolSai S.p.A.	3,480	85%	+0.5%
UniSalute	238	6%	+5.4%
Linear	96	2%	+3.7%
Incontra	102	2%	+101.1%
Arca Assicurazioni	69	2%	+13.6%
Siat, DDOR & PA	122	3%	+9.6%
Total	4,109	100%	+2.6%

Premiums by distribution channel

	€m	%	Var%
Agents	3,296	80%	+0.2%
Brokers/head office	495	12%	+6.3%
Bancassurance	171	4%	+53.3%
Direct and other	146	4%	+4.9%
Total	4,109	100%	+2.6%

^a The whole Welfare ecosystem also includes Life business for a total of 3.9 €bn Operating figures

Net of reinsurance Direct business

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

Combined ratio direct business: operating expenses/written premiums from direct business (before reinsurance) + claims charges /earned premiums from direct business (after reinsurance). Operating figures

Motor TPL combined ratio

	1H18	1H19
Direct business	97.9%	97.9%
ratio a Expense	21.3%	21.8%
ratio b Loss	76.6%	76.0%

Other Motor TPL indicators

	var. vs FY18
Total portfolio	+0.4%
Retail (95% of tot. ptf)	+0.2%
Fleets (5% of tot. ptf)	+4.2%
Portfolio average premium	-1.0%
	var. vs 1H18
N. of claims reported (followed-up managed claims)	-0.9%
Frequency	-0.10pp

No. of black boxes 4 million (44% of the tot. portfolio)

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

€m

Direct premium income

Premiums by line of business

	€m	%	var%
Traditional	1,785	56%	+38.1%
Unit linked	152	5%	-46.8%
Pension funds	956	30%	+180.6%
Capitalization	291	9%	+28.4%
Total	3,185	100%	+48.4%

Premiums by company

	€m	%	var%
UnipolSai S.p.A.	2,327	73%	+51.8%
Arca Vita + AVI	811	25%	+42.2%
Other companies	47	1%	+7.3%
Total	3,185	100%	+48.4%

Premiums by distribution channel

	€m	%	var%
Agents	871	27%	+23.0%
Bancassurance/Fin. advisors	965	30%	+36.2%
Pension funds	921	29%	+199.3%
Brokers/Head office	419	13%	+3.4%
Other	8	0%	-50.2%
Total	3,185	100%	+48.4%

Operating figures

€m

Segregated accounts and minimum guaranteed yields

Technical reserves by minimum guaranteed ^a

	FY18		1H19
Min. guar. yield	€bn	%	€bn	%
0%-1%	14.2	45%	16.0	51%
1%-2%	9.2	29%	7.7	25%
2%-3%	6.0	19%	5.6	18%
>3%	2.3	7%	2.3	7%
Total	31.7	100%	31.6	100%

^aClass 1 and Class 5 technical reserves Operating figures

€ mln

Total investments 56.3 €bn

Total bonds 85.4%

Financial investment yields

				1H19
	Non-life		Life		Total
	€m	Yield	€m	Yield	€m	Yield
Coupons and dividends	196	3.2%	584	3.4%	787	3.3%
Realized and unrealized gains/losses	0	0.0%	36	0.2%	42	0.2%
Total	195	3.2%	620	3.6%	829	3.5%

Total investments duration

(Years)	Assets	Liabilities	Mismatch
Non-Life	3.5	2.8	1.2
Life	7.5	8.8	-0.9
Total portfolio	6.2	6.9	-0.3

Total portfolio 4.0 €bn

Development of RE portfolio Breakdown by cluster Breakdown by sector

5%

^aN. 72 deeds as at 30 June 2019

^bIncluding exchange variation and operations on RE funds and associated SPV Operating figures

€m

NPEs stock

	FY18	1H19
Gross loans	2,590	2,399
Net loans	490	451
Coverage ratio	81%	81%

NPEs collection

	1H18	1H19
Collections	49	59
NPEs reduction (GBV)	198	191
Collections/GBV	25%	31%

Net result

	1H18	1H19
Net result	2	10

€bn

UNIPOL (consolidated) – Partial internal model UNIPOLSAI (consolidated) – Economic capital

^a Preliminary evaluation that might be subject to updates

NPL portfolio Unipol Banca Car Server Acquisition by UnipolReC of a portfolio of NPL from BPER Closing 31 July 2019 Price 102 €m GBV 1.2 €bn • 32% secured • 68% unsecured Sale of Unipol Banca to BPER Closing 31 July 2019 Price 220 €m No effect on Unipol and UnipolSai P&L in 1H19 Acquisition of 100% of Car Server, one of the leading long-term car rental players in Italy Closing 1 August 2019 Price 96 €m N. of cars >45,000 Total revenues 302 €m

Appendix

€m

	1H18	1H19
a Premium income	6,153	7,294
Non-Life	4,007	4,109
Life	2,147	3,185
Ratio b Combined	95.1%	94.6%
Consolid. net result	644	740
Group net result	482	627
(norm.) c Cons. net result	311	353
(norm.) c Group net result	214	270

	FY18	1H19
Total equity	6,327	7,547
Shareholders' equity	5,032	6,092

^aDirect business

^b Net of reinsurance

^c Ref. p. 5 for details on normalisation

UNIPOL UNIPOLSAI

	1H18	1H19
a Premium income	6,153	7,294
Non-Life	4,007	4,109
Life	2,147	3,185
Ratio b Combined	95.1%	94.6%
Consolid. net result	647	377
Group net result	618	364
(norm.) c Cons. net result	351	377
(norm.) c Group net result	318	364

	FY18	1H19
Total equity	5,697	6,294
Shareholders' equity	5,448	6,039

On 7 February 2019 the BoD of Unipol and UnipolSai approved the sale of Unipol Banca to BPER Banca, which was completed on 31 July 2019

^aIncluding the shares held by Unipol Investment and UnipolPart I ^b As at 30 June 2019

Appendix

€ mln

Total investments 54.7 €bn

Total bonds 86.5%

Financial investment yields

	1H19
	Non-life		Life		Total
	€m	Yield	€m	Yield	€m	Yield
Coupons and dividends	196	3.2%	584	3.4%	779	3.4%
Realized and unrealized
gains/losses	0	0.0%	36	0.2%	35	0.2%
Total	195	3.2%	620	3.6%	815	3.5%

Duration

(Years)	Assets	Liabilities
Non-Life	3.5	2.8	1.2
Life	7.5	8.8	-0.9
Total portfolio	6.2	7.1	-0.2

Appendix

Total portfolio 4.0 €bn

Development of RE portfolio Breakdown by cluster Breakdown by sector

5%

Other RE investm. Offices Residential Hotel Land Commercial Condos and ind. Health centres Breakdown by use Breakdown by area 52% 17% 9% 9% 5% 4% 2% 2%

^aN. 72 deeds as at 30 June 2019

^bIncluding exchange variation and operations on RE funds and associated SPV Operating figures

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 1H19 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 constitutes or forms it 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 may it 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.

Adriano Donati Head of Investor Relations Tel +39 051 507 7933

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