Unipol — Investor Presentation 2020

Nov 13, 2020

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 9M20 results.

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.

The content of this document does not constitute a recommendation in relation to any financial instruments issued by the companies 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 companies or by other companies of the Group, nor it may be relied upon for any investment decision by its addressees.

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

€m

	9M19 a	9M20
Consolidated pre-tax result	796	939
Non-Life	603	985
Life	217	51
Holding and other	-23	-98
Consolidated net result	577	759
Group net result	450	631

UNIPOL UNIPOLSAI

	9M19 b	9M20
Consolidated pre-tax result	793	980
Non-Life	598	971
Life	219	53
Other	-23	-44
Consolidated net result	576	701
Group net result	557	677

^a Normalised figures excluding the impact of the first consolidation of BPER (176 €m in Non-Life and 244 €m in Holding and other sectors) and of the Solidarity Fund

^bNormalised figures excluding Solidarity Fund impact

€m

Premiums by Business Line
	€m	%	var%
Mobility	3,165	57%	-4.1%
Motor	2,926	53%	-4.6%
Other	239	4%	+1.2%
Welfare	940	17%	-3.3%
Health	474	9%	-5.8%
Accident	466	8%	-0.7%
Property	1,415	26%	-2.7%
Fire&Other dam. to prop.	787	14%	+1.1%
General TPL	442	8%	-3.4%
Other	187	3%	-14.9%
Total	5,521	100%	-3.6%

Premiums by Company

	€m	%	var%
UnipolSai S.p.A.	4,722	86%	-3.0%
UniSalute	325	6%	+4.8%
Linear	139	3%	+0.6%
Incontra	67	1%	-52.1%
Arca Assicurazioni	100	2%	+0.8%
Siat	101	2%	-7.5%
DDOR	67	1%	+3.4%
Total	5,521	100%	-3.6%

Premiums by Distribution Channel

	€m	%	var%
Agents	4,487	81%	-3.4%
Brokers/Head Off.	659	12%	+3.4%
Bancassurance	167	3%	-30.0%
Direct and other	208	4%	0.0%
Total	5,521	100%	-3.6%

Operating figures

7

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 direct business (before reinsurance) + claims charges /earned premiums direct business (before reinsurance) Operating figures

€m

Direct Premium Income

Premiums by Company

	€m	%	var%
UnipolSai S.p.A.	2,185	70%	-28.2%
Arca Vita + AVI	877	28%	-25.0%
Other companies	53	2%	-22.2%
Total	3,114	100%	-27.2%

Premiums by Line of Business

	€m	%	var%
Traditional	1,919	62%	-25.6%
Unit linked	332	11%	+39.7%
Pension funds	572	18%	-48.5%
Capitalization	291	9%	-17.1%
Total	3,114	100%	-27.2%

Premiums by Distribution Channel

	€m	%	var%
Agents	1,021	33%	-18.2%
Bancassurance/Fin. advisors	947	30%	-33.0%
Pension funds	531	17%	-50.1%
Brokers/Head office	580	19%	+7.4%
Other	35	1%	+200.2%
Total	3,114	100%	-27.2%

Operating figures

€m

Segregated Accounts and Minimum Guaranteed Yields

Technical Reserves by Minimum Guarantee ^a

		FY19		9M20
Min. guar. yield	€bn	%	€bn	%
0%-1%	17.6	54%	19.4	58%
1%-2%	7.5	23%	6.8	20%
2%-3%	5.4	17%	5.3	16%
>3%	2.2	7%	2.1	6%
Total	32.7	100%	33.7	100%

^aClass 1 and Class 5 technical reserves Operating figures

Total Investments 60.4 €bn Financial Investment Yields

Market value – Operating figures Investment yields on a yearly basis

10

	Total			Non-Life		Life
	€m	Yield	€m	Yield	€m	Yield
Coupons and dividends	1,105	3.0%	254	2.8%	843	3.2%
Realized/unrealized gains/losses	-43	-0.1%	-1	0.0%	-34	-0.1%
Total	1,061	2.9%	253	2.8%	810	3.1%

Total Investments Duration (years)

	Total	Non-Life	Life
Assets	6.8	3.4	8.4
Liabilities	7.6	2.8	9.5
Mismatch	-0.3	1.3	-0.6

Total Portfolio 3.9 €bn

Land

52%

20%

4% 2% 1%

8% 9% 4%

Other RE investm.

Condos and ind. Health centres Commercial

Offices

Hotel Residential

^aN. 17 deeds as at 30 September 2020 incl. reimbursement of shares in RE funds. Operating figures, book value

€m

Bad Loans Stock

	FY19	9M20
Gross loans	3,465	3,188
Net loans	516	453
Coverage ratio	85%	86%

Bad Loans Collection

	9M19	9M20
Collections	83	80
Bad Loans reduction (GBV)	266	277
Collections/GBV	31%	29%

KPIs

	9M19	9M20
Net result	10.7	4.7
	FY19	9M20
Debt	155	113
Total Equity	434	439

€bn

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

^aEligible Own Funds in excess of Solvency Capital Requirements

€m

	9M19	9M20
a Premium income	10,008	8,635
Non-Life	5,730	5,521
Life	4,278	3,114
ratio b Combined	94.1%	86.0%
Consolid. net Result	577 c	759
Group net Result	450 c	631

	FY19	9M20
Total Equity	8,305	8,328
Shareholders' Equity	6,687	7,033

UNIPOL UNIPOLSAI

	9M19	9M20
a Premium income	10,008	8,635
Non-Life	5,730	5,521
Life	4,278	3,114
Ratio b Combined	94.1%	86.0%
Consolid. net Result	576 d	701
Group net Result	557 d	677

	FY19	9M20
Total Equity	7,153	6,906
Shareholders' Equity	6,878	6,657

^aDirect business

^b Net of reinsurance

^c Normalised figures excluding the impact of the first consolidation of BPER (176 €m in Non-Life and 244 €m in Holding and other sectors) and of the Solidarity Fund

^d Normalised figures excluding Solidarity Fund impact

Companies listed on the Italian Stock Exchange

^aIncluding the shares held by Unipol Investment, UnipolPart I and Unipol Finance

Appendix

Last update October 2020

€m

Issuer	Listed a	Nominal amount	Sub./Sen./ Hyb.	Tier	Maturity	Coupon
UnipolSai		300	Sub.	Tier II	Jun, 2021	Eur3M+2.5%	early redemption
UnipolSai		262	Sub.	Tier II	Jul, 2023	Eur3M+2.5%	announced
UnipolSai		240	Hyb.	Tier I	Jul, 2023	Eur6M+2.5%
UnipolSai		500	Sub.	Tier II	Mar, 2028	3.88%
UnipolSai		750	Hyb.	Tier I	b Perpetual	5.75%
UnipolSai		500	Hyb.	Tier I	c Perpetual	6.38%	issued 2020
Total UnipolSai S.p.A.		2,552
Unipol		231	Sen.	--	Mar, 2021	4.38%
Unipol		1,000	Sen.	--	Mar, 2025	3.00%
Unipol		500	Sen.	--	Nov, 2027	3.50%
Unipol (Green Bond)		750	Sen.	--	Sep, 2030	3.25%	issued 2020
Total Unipol S.p.A.		2,481
Total UnipolSai S.p.A. + Unipol S.p.A.d		5,033

^aListed on the Luxembourg Stock Exchange

^b 1 st call date Jun, 2024

c 1 st call date Oct, 2030

^dExcluding intercompany debt

Appendix

€m

	Assets		Liabilities
a Liquid financial assets	1,560	Financial debt to UnipolSai	568
		Senior debt 2021	231
		Senior debt 2025	1,000
		Senior debt 2027	500
		Senior green bond 2030	750
Liquid financial assets	1,560	b Financial debts	3,049
Net Financial Position	-1,489

18

a Including liquid financial assets of Unipol Gruppo and its subsidiaries 100% directly controlled

^b Nominal value

Adriano Donati Head of Investor Relations

investor.relations@unipol.it investor.relations@unipolsai.it

Giancarlo Lana Tel +39 011 654 2088 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