Unipol — Investor Presentation 2021

Aug 6, 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 1H21 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

	1H20 reported	1H21 reported	1H20 excl. BPER	1H21 excl. BPER
Consolidated pre-tax result	753	743	731	605
Non-Life	810	618	799	549
Life	14	111	14	111
Holding and other	-70	14	-82	-56
Consolidated net result	617	652	595	514
Group net result	514	537	494	409

5

UNIPOL UNIPOLSAI

	1H20	1H21
Consolidated pre-tax result	789	636
Non-Life	805	553
Life	15	114
Other	-30	-31
Consolidated net result	560	542
Group net result	545	526

€m

Premiums
3,927	3,923	-0.1%
2,041	1,946	-4.7%
1,887	1,977	+4.8%
1H20	1H21

Premiums by Business Line	Premiums by Company
	€m	%	var%
Mobility	2,115	54	-4.2
Motor	1,946	50	-4.7
Other	169	4	+2.0
Welfare	726	19	+6.2
Health	392	10	+11.9
Accident	335	9	+0.2
Property	1,081	28	+4.3
Fire&Other dam. to prop.	608	15	+4.8
General TPL	329	8	+1.5
Other	145	4	+9.4
Total	3,923	100	-0.1

	€m	%	var%
UnipolSai	3,306	84	-1.4
UniSalute	272	7	+13.9
Linear	94	2	-2.3
Arca Assicurazioni	85	2	+24.1
Siat	67	2	-5.6
Incontra	50	1	-2.2
DDOR	49	1	+2.4
Total	3,923	100	-0.1

Breakdown by Distribution Channel

	Motor	Non-Motor	Tot. Non-Life
Agents	89%	70%	79%
Brokers/Head Off.	5%	22%	13%
Bancassurance	1%	6%	3%
Direct and other	5%	2%	4%
Total	100%	100%	100%

Motor Non-Motor

Breakdown by Market Segment
-----------------------------	--	--	--

	Total	Mobility	Welfare	Property
Retail & SMEs	82%	48%	10%	23%
Corporate	18%	6%	8%	4%
Total	100%

Operating figures

7

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	1,410	54	-6.4
Arca Vita + AVI	1,165	44	+84.5
Other companies	54	2	+55.3
Total	2,629	100	+21.0

Premiums by Line of Business

	€m	%	var%
Traditional	1,676	64	+24.2
Unit linked	557	21	+142.6
Pension funds	285	11	-15.2
Capitalization	111	4	-57.0
Total	2,629	100	+21.0

Premiums by Distribution Channel

	€m %		var%
Agents	763	29	+11.0
Bancassurance	1,210	46	+83.8
Head office	515	20	-27.9
Other	141	5	+25.2
Total	2,629	100	+21.0

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

	FY20		1H21
Min. guar. yield	€bn	%	€bn	%
0%	12.1	36	14.2	41
0%-1%	8.0	24	7.6	22
1%-2%	6.5	19	5.9	17
2%-3%	5.0	15	4.6	13
>3%	2.1	6	2.0	6
Total	33.7	100	34.4	100

Total Investments	FY20		1H21
	€bn	%	€bn	%
Total Bonds	54.0	86.8	50.7	82.5
o/w Italian Govies	26.2	42.2	24.9	40.6
o/w Non-Italian Govies	10.2	16.2	8.7	14.2
o/w Corporate	17.7	28.5	17.1	27.8
Cash	1.0	1.6	2.8	4.6
Equity and Funds	1.5	2.5	2.2	3.6
Real Assets, P.E., H.F.	1.2	1.9	1.4	2.3
Real Estate	4.5	7.2	4.3	7.0
Total	62.2	100	61.5	100

Duration (years)		FY20			1H21
	Total	Non-Life	Life	Total	Non-Life	Life
Assets	6.8	3.5	8.4	6.2	3.3	7.7
Liabilities	7.7	2.8	9.6	7.5	2.9	9.2
Mismatch	-0.2	1.4	-0.6	-0.4	1.2	-0.8

Market value – Operating figures

€m

1H20

	Total	Non-Life	Life
Coupons and dividends	736	163	568
Yield	3.1%	2.7%	3.2%
Realized/unrealized gains/losses	-48	0	-40
Yield	-0.2%	0.0%	-0.2%
Total	687	163	528
Yield	2.9%	2.7%	3.0%

1H21

	Total	Non-Life	Life
Coupons and dividends	722	182	533
Yield	2.9%	2.8%	3.0%
Realized/unrealized gains/losses	80	47	10
Yield	0.3%	0.7%	0.1%
Total	802	229	543
Yield	3.2%	3.5%	3.1%

11

Investment yields on a yearly basis Operating figures

Real Estate Investment Portfolio Details 2,807 €m

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

€m

Bad Loans Stock

	FY20	1H21
Gross loans	3,046	2,899
Net loans	423	393
Coverage ratio	86%	86%

Bad Loans Collection

	1H20	1H21
Collections	54	40
Bad Loans reduction (GBV)	179	146
Collections/GBV	30%	27%

Balance Sheet Highlights

	FY20	1H21
Net Financial Position	-27	2
Total Equity	440	442 a

7% Collections Breakdown Secured loans Unsecured loans 71% 29%

a Tangible equity 441 €m

€bn

UNIPOL (consolidated) Partial internal model

UNIPOLSAI (consolidated) Economic capital

UNIPOLSAI (solo) Partial internal model

^aEligible Own Funds in excess of Solvency Capital Requirements

Companies listed on the Italian Stock Exchange

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

€m

	1H20	1H21
a Premium income	6,100	6,552
Non-Life	3,927	3,923
Life	2,173	2,629
Ratio b Combined	82.1%	92.6%
Consolid. Net Result reported	617	652
Consolid. Net Result excl. BPER	595	514
Group Net Result reported	514	537
Group Net Result excl. BPER	494	409

	FY20	1H21
Total Equity	9,525	9,955
Shareholders' Equity	7,614	8,026
Solvency 2 ratio (cons. PIM)	216%	212%

^aDirect business

^b Net of reinsurance

^c 216% before payment of 2019 dividend

UNIPOL UNIPOLSAI

	1H20	1H21
a Premium income	6,100	6,552
Non-Life	3,927	3,923
Life	2,173	2,629
Ratio b Combined	82.1%	92.6%
Consolid. Net Result	560	542
Group Net Result	545	526

		FY20	1H21
	Total Equity	8,144	8,231
	Shareholders' Equity	7,881	7,977
C	Solvency 2 ratio (cons. ec. cap.)	281%	290%

€m

KPIs

	1H20	1H21
Total revenues	142	144
a Gross operating margin	26	26
EBIT	12	10
Net result	7	8

1H20 FY20 49,365 1H21 50,053 52,428

Fleet – Propriety Vehicles

Registered Vehicles

^a Net of vehicles' depreciation Operating figures

€m

As at 30 June 2021

Issuer	Listed a	Nominal amount	Sub./Sen./ Hyb.	Tier	Maturity	Coupon
UnipolSai		240	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.		1,990				4.60% 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				3.24% f
Total UnipolSai S.p.A. + Unipol S.p.A.e		4,490

^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 1H21 average stock

€m

As at 30 June 2021

	Assets		Liabilities
Liquid financial assets	1,610	Financial debt to UnipolSai Senior debt 2025 Senior debt 2027	300 1,000 500
a Liquid financial assets	1,610	Senior green bond 2030 b Financial liabilities	1,000 2,800

Net balance -1,190
-----------------------

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

^b Nominal value

As at 30 June 2021

		Notes
UnipolSai shareholding	84.93%	ref. slide 16
UnipolReC shareholding	85.24%	ref. slide 16
UnipolReC tangible book value	441 €m	ref. slide 13
BPER direct shareholding	9.56%	ref. slide 16
Net financial assets/liabilities	-1,190 €m	ref. slide 20
Net operating costs	15 €m	difference between value and costs of production, items A and B of the P&L - local GAAP
Loan assets	138 €m	loans to UnipolReC and UnipolRental
DTA	320 €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

12 November 2021 9M21 Results Reporting