Unipol — Investor Presentation 2021

Nov 12, 2021

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 9M21 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

UNIPOL UNIPOLSAI

	9M20 reported	9M21 reported	9M20 excl. BPER	9M21 excl. BPER
Consolidated pre-tax result	939	974	898	819
Non-Life	985	843	965	766
Life	51	160	51	160
Holding and other	-98	-29	-119	-108
Consolidated net result	759	813	718	659
Group net result	631	661	593	517

	9M20	9M21
Consolidated pre-tax result	980	874
Non-Life	971	769
Life	53	164
Other	-44	-59
Consolidated net result	701	704
Group net result	677	680

€m

Premiums
5,521	5,539	+0.3%
2,926	2,797	-4.4%
2,595	2,742	+5.7%
9M20	9M21

Motor Non-Motor

Premiums by Business Line				Premiums by Company
	€m	%	var%
Mobility	3,038	55	-4.0
Motor	2,797	50	-4.4
Other	241	4	+0.8
Welfare	1,006	18	+7.0
Health	536	10	+13.1
Accident	470	8	+0.8
Property	1,495	27	+5.6
Fire&Other dam. to prop.	834	15	+6.0
General TPL	453	8	+2.4
Other	208	4	+11.6
Total	5,539	100	+0.3

€m % var% UnipolSai 4,661 84 -1.3 UniSalute 366 7 +12.5 Linear 138 2 -0.6 Arca Assicurazioni 131 2 +30.4 Siat 92 2 -8.9 Incontra 81 1 +21.8 DDOR 71 1 +5.3 Total 5,539 100 +0.3

Breakdown by Distribution Channel

	Motor	Non-Motor	Tot. Non-Life
Agents	89%	70%	80%
Brokers/Head Off.	4%	21%	12%
Bancassurance	1%	7%	4%
Direct and other	6%	2%	4%
Total	100%	100%	100%

Breakdown by Market Segment

	Total	Mobility	Welfare	Property
Retail & SMEs	82%	49%	11%	23%
Corporate	18%	6%	8%	4%
Total	100%

Operating figures

9M19 86.0% 9M20 9M21 94.1% 92.8% 59.2% 26.8% 67.2% 26.9% 9M19 85.5% 9M20 91.7% 96.0% 9M21 62.9% 28.7% 57.2% 28.3% 6.6% Atm. Events + Heavy Losses 6.9% 66.2% 26.6% 4.6% 7.3% 67.8% 28.1% 7.5% 6.6% Expense Ratio Loss Ratio

Net of Reinsurance Direct Business

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

€m

Direct Premium Income

Premiums by Company

	€m	%	var%
UnipolSai	1,975	50	-9.6
Arca Vita + AVI	1,871	48	+113.4
Other companies	69	2	+31.8
Total	3,915	100	+25.7

Premiums by Line of Business

	€m	%	var%
Traditional	2,516	64	+31.1
Unit linked	831	21	+150.1
Pension funds	430	11	-24.8
Capitalization	138	4	-52.6
Total	3,915	100	+25.7

Premiums by Distribution Channel

	€m	%	var%
Agents	1,074	27	+5.2
Bancassurance	1,927	49	+110.2
Head office	740	19	-28.2
Other	174	4	+19.5
Total	3,915	100	+25.7

Operating figures

Life Yields

^aTechnical reserves of segregated funds in the existing portfolio

^b Calculated at cost basis

^c Gross financial margin on annual basis

Operating figures

Technical Reserves by Minimum Guarantee ^a

		9M20		9M21
Min. guar. yield	€bn	%	€bn	%
0%	11.6	34	14.8	43
0%-1%	7.8	23	7.7	22
1%-2%	6.8	20	5.8	17
2%-3%	5.3	16	4.6	13
>3%	2.1	6	2.0	6
Total	33.7	100	34.8	100

Total Investments	FY20		9M21
	€bn	%	€bn	%
Total Bonds	54.0	86.8	51.2	82.6
o/w Italian Govies	26.2	42.2	24.4	39.3
o/w Non-Italian Govies	10.2	16.2	9.8	15.9
o/w Corporate	17.7	28.5	17.0	27.5
Cash	1.0	1.6	2.6	4.2
Equity and Funds	1.5	2.5	2.3	3.8
Real Assets, P.E., H.F.	1.2	1.9	1.5	2.5
Real Estate	4.5	7.2	4.3	6.9
Total	62.2	100	62.0	100

Duration (years)		FY20			9M21
	Total	Non-Life	Life	Total	Non-Life	Life
Assets	6.8	3.5	8.4	6.1	3.2	7.5
Liabilities	7.7	2.8	9.6	7.2	2.9	8.8
Mismatch	-0.2	1.4	-0.6	-0.4	1.1	-0.8

Market value – Operating figures

€m

9M20

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

9M21

	Total	Non-Life	Life
Coupons and dividends	1,075	278	787
Yield	2.8%	2.8%	3.0%
Realized/unrealized gains/losses	99	63	15
Yield	0.3%	0.6%	0.1%
Total	1,174	341	802
Yield	3.1%	3.4%	3.0%

11

Investment yields on a yearly basis Operating figures

Real Estate Investment Portfolio Details 2,765 €m

^a Extraordinary yields include gains, losses, net write-downs and Covid-19 impacts. Operating figures, book value

€m

Bad Loans Stock

	FY20	9M21
Gross loans	3,046	2,801
Net loans	423	376
Coverage ratio	86%	87%

Bad Loans Collection

	9M20	9M21
Collections	80	60
Bad Loan s reduction (GBV)	277	244
Collections/GBV	29%	25%

Balance Sheet Highlights

	FY20	9M21
Net Financial Position	-27	19
Tax Assets	55	52
Total Equity	440	a 442

a Tangible equity 442 €m

UNIPOL (consolidated) Partial internal model

UNIPOLSAI (consolidated)

14

Economic capital

UNIPOLSAI (solo) Partial internal model

^aEligible Own Funds in excess of Solvency Capital Requirements

Bancassurance

16

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

€m

	9M20	9M21
a Premium income	8,635	9,454
Non-Life	5,521	5,539
Life	3,114	3,915
Ratio b Combined	86.0%	92.8%
Consolid. Net Result reported	759	813
Consolid. Net Result excl. BPER	718	659
Group Net Result reported	631	661
Group Net Result excl. BPER	593	517

	FY20	9M21
Total Equity	9,525	10,083
Shareholders' Equity	7,614	8,126
Solvency 2 ratio (cons. PIM)	216%	208%

^aDirect business

^b Net of reinsurance

UNIPOL UNIPOLSAI

	9M20	9M21
a Premium income	8,635	9,454
Non-Life	5,521	5,539
Life	3,114	3,915
Ratio b Combined	86.0%	92.8%
Consolid. Net Result	701	704
Group Net Result	677	680

	FY20	9M21
Total Equity	8,144	8,369
Shareholders' Equity	7,881	8,107
Solvency 2 ratio (cons. ec. cap.)	281%	282%

Appendix

€m

KPIs

	9M20	9M21
Total revenues	213	221
a Gross operating margin	36	41
EBIT	16	17
Net result	9	12

Fleet – Proprietary Vehicles

Registered Vehicles

^a Net of vehicles' depreciation Operating figures

Appendix

€m

As at 30 September 2021

Issuer	Listed a	Nominal amount	Sub./Sen./ Hyb.	Tier	Maturity	Coupon
UnipolSai		160	Hyb.	Tier I	Jul, 2023	Eur6M+1.8% b
UnipolSai		500	Sub.	Tier II	Mar, 2028	3.88%
UnipolSai		750	Hyb.	Tier I	c Perpetual	5.75%
UnipolSai		500	Hyb.	Tier I	d Perpetual	6.38%
Total UnipolSai S.p.A.		1,910				4.74% f
Unipol		1,000	Sen.	--	Mar, 2025	3.00%
Unipol		500	Sen.	--	Nov, 2027	3.50%
Unipol (Green Bond)		1,000	Sen.	--	Sep, 2030	3.25%
Total Unipol S.p.A.		2,500				3.22% f
Total UnipolSai S.p.A. + Unipol S.p.A.e		4,410

^aListed on the Luxembourg Stock Exchange

^b Additional spreads 0.715bps on 30 Jun and 31 Dec each year

• c 1 st call date Jun, 2024
• ^d 1 st call date Apr, 2030

^eExcluding intercompany debt

^f Average coupon, calculated on the basis of 9M21 average stock

Appendix

€m

As at 30 September 2021

	Assets		Liabilities
Liquid financial assets	1,552	Financial debt to UnipolSai	300
		Senior debt 2025 Senior debt 2027	1,000 500
a Liquid financial assets	1,552	Senior green bond 2030 b Financial liabilities	1,000 2,800

	Net balance	-1,248
--	-------------	--------

a Including liquid financial assets of Unipol S.p.A. and its 100% directly controlled subsidiaries

^b Nominal value

As at 30 September 2021

		Notes
UnipolSai shareholding	84.93%	ref. slide 16
UnipolReC shareholding	85.24%	ref. slide 16
UnipolReC tangible book value	442 €m	ref. slide 13
BPER direct shareholding	9.55%	ref. slide 16
Net financial assets/liabilities	-1,248 €m	ref. slide 20
Net operating costs	22 €m	difference between value and costs of production, items A and B of the P&L - local GAAP
Loan assets	150 €m	loan to UnipolRental
DTA	311 €m	Deferred Tax Assets relating to goodwill realignment - local GAAP

Operating figures

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