Unipol — Investor Presentation 2021

Mar 18, 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 FY20 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.

^a Normalised figure

€m

	FY19 a Norm.	FY20 b Norm.	Adj.	FY20 Act.
Consolidated pre-tax result	962	1,066	-41	1,026
Non-Life	810	1,124	-20	1,104
Life	236	71		71
Holding and other	-84	-128	-21	-149
Consolidated net result	732	905	-41	864
Group net result	569	745	-38	707

UNIPOL UNIPOLSAI

	FY19 c Norm.	FY20 Norm.	Adj.	FY20 Act.
Consolidated pre-tax result	969	1,119	--	1,119
Non-Life	782	1,105	--	1,105
Life	239	73	--	73
Other	-52	-60	--	-60
Consolidated net result	721	853	---	853
Group net result	694	820	--	820

^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

^b Normalised figures excluding the impact of the realignment of the badwill on BPER shareholding following the Unipol Group's stake dilution after the Bank capital increase (partial reversal of the gain on the first consolidation of BPER)

^cNormalised figures excluding the Solidarity Fund impact

€m

Motor		Non-Motor
-------	--	-----------

Premiums by Business Line
	€m	%	var%
Mobility	4,303	55	-4.2
Motor	3,985	51	-4.6
Other	318	4	+1.3
Welfare	1,403	18	-2.0
Health	720	9	-2.0
Accident	683	9	-1.9
Property	2,176	28	-3.0
Fire&Other dam. to prop.	1,209	15	-0.1
General TPL	704	9	-3.2
Other	262	3	-14.3
Total	7,882	100	-3.5

Premiums by Company

	€m	%	var%
UnipolSai S.p.A.	6,772	86	-3.1
UniSalute	483	6	+7.7
Linear	185	2	+0.6
Arca Assicurazioni	140	2	+3.0
Siat	129	2	-5.7
DDOR	88	1	+3.6
Incontra	84	1	-54.4
Total	7,882	100	-3.5

Premiums by Distribution Channel

	€m	%	var%
Agents	6,381	81	-3.1
Brokers/Head Off.	997	13	+1.6
Bancassurance	225	3	-30.0
Direct and other	279	3	+1.0
Total	7,882	100	-3.5

Operating figures

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

Motor TPL Combined Ratio Direct Business

Key Figures

Motor TPL	var. vs FY19
Portfolio average premium	-7.3%
N. of claims reported a	-29.2%
Frequency	-1.5 p.p.
Bodily injury/Tot. followed-up claims	-1.4 p.p.

Motor and General TPL	FY20
savings on settled claims b %
Motor TPL	45.9%
General TPL	67.3%

^aFollowed-up managed claims

^b Savings on settled claims of previous years / amount provisioned Operating figures

€m

Direct Premium Income

Premiums by Company

	€m	%	var%
UnipolSai S.p.A.	3,099	72	-24.0
Arca Vita + AVI	1,140	26	-32.0
Other companies	90	2	-1.9
Total	4,328	100	-26.0

Premiums by Line of Business

	€m	%	var%
Traditional	2,738	63	-26.4
Unit linked	522	12	+39.2
Pension funds	707	16	-44.2
Capitalization	361	8	-25.0
Total	4,328	100	-26.0

Premiums by Distribution Channel

	€m %		var%
Agents	1,673	39	-14.1
Bancassurance	1,260	29	-36.2
Head office	1,245	29	-31.5
Other	150	3	+43.3
Total	4,328	100	-26.0

Operating figures

€m

Segregated Accounts and Minimum Guaranteed Yields

Technical Reserves by Minimum Guarantee ^a

	FY19		FY20
Min. guar. yield	€bn	%	€bn	%
0%	10.3	32	12.1	36
0%-1%	7.3	22	8.0	24
1%-2%	7.5	23	6.5	19
2%-3%	5.4	17	5.0	15
>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 62.2 €bn Financial Investment Yields

Market value – Operating figures. Investment yields on a yearly basis

	Total			Non-Life		Life
	€m	Yield	€m	Yield	€m	Yield
Coupons and dividends	1,470	3.0%	344	2.8%	1,116	3.2%
Realized/unrealized gains/losses	-44	-0.1%	-24	-0.2%	-23	-0.1%
Total	1,425	2.9%	320	2.6%	1,093	3.1%

Total Investments Duration (years)

	Total	Non-Life	Life
Assets	6.8	3.5	8.4
Liabilities	7.7	2.8	9.6
Mismatch	-0.2	1.4	-0.6

€m

Total Portfolio 4.1 €bn

Total Portfolio - by Sector

Third Parties Portfolio – Gross Yield

		FY19		FY20
	€m	Yield	€m	Yield
Ord. yield	101	3.6%	103	3.5%
Covid-19 impact	--	--	-28	-1.0%
Extraord. yield b	-23	-0.8%	10	0.4%
Total	79	2.8%	85	2.9%

13

Third Parties Portfolio - by Cluster

Third Parties Portfolio - by Use Third Parties Portfolio - by Area

^aShareholdings refer to Tenute del Cerro (105 €m) and Marina di Loano (64 €m)

^b Extraordinary yields include gains, losses and net write-downs

Operating figures, book value

€m

Bad Loans Stock

	FY19	FY20
Gross loans	3,465	3,046
Net loans	516	423
Coverage ratio	85%	86%

Bad Loans Collection

	FY19	FY20
Collections	110	116
Bad Loans reduction (GBV)	366	419
Collections/GBV	30%	28%

KPIs

	FY19	FY20
Net result	12	6
	FY19	FY20
Debt	155	73
Total Equity	434	440

€m

^aThe BoD of Unipol initially approved 0.28 € DPS and then proposed to the AGM (which executed) to suspend dividend payment to comply with the recommendation of the Supervisory Authorithies following the Covid-19 pandemic

€bn

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

16

^aEligible Own Funds in excess of Solvency Capital Requirements

€m

17

a Eligible Own Funds in excess of Solvency Capital Requirements

Support to the Community

Support to the Agency Network

Business continuity Employee safety

• Donations for 20 €m to the community to help combat the emergency, namely to increase the number of beds in hospitals (especially in intensive care units) and purchase healthcare equipment
• Extension of premium payment deadlines for Group customers holders of Life and Non-Life policies
• Free of charge extension of health guarantees for Covid patients and dedicated health coverage, 24/7 medical consult through UniSalute Support to the
• Customers #UnMesePerTe campaign: 1 month discount on MV policies at renewal, conceived as a strategic, commercial and reputational initiative
  • Covid-dedicated coverage, with targeted welfare products: #AndràTuttoBene (SME), #AndràTuttoBene Premium (Retail), #AndràTuttoBeneFree (free Covid-19 insurance coverage for policies expiring in March, April and May 2020)
  • #SicuriRipartiamo, a package of services such as medical services at lower tariffs dedicated to enterprises willing to resume business in all safety, ensuring the protection of their employees' health
  • Renewal payments through Reserved Area and App and activation of electronic payment methods
  • Più3 campaign: for new policies dedicated to business activities, 3 additional months of free coverage, up to 20% discount and premium payment from the fourth month
  • #UniSalutePerTe: UnipolSai 10 million customers are offered UniSalute healthcare cover to deal with the possible consequences of Covid: 24/7 medical consult, 100 €/day compensation for admission to hospital of up to 14 days and 2,000 € in compensation after coming out from intensive care hospitalisation
  • Advance payment of incentives, suspension of recoveries and interest-free financial lending program
  • Extension of digital tools (e.g. ature), fully digital sales processes and centralised task force providing continuity for agencies forced to suspend operations
  • Distribution of personal protective equipment and dedicated health cover, 24/7 medical consult through UniSalute
  • Remote working for almost all employees
  • Distribution of personal protective equipment and increased sanitization of the premises
  • Dedicated health coverage, 24/7 medical consult through UniSalute

Ecosystem	Key Facts 2020
	Long term rental: re-branding of Car Server as UnipolRental. New Business Plan with the target to become leader in the retail segment and reference point in the corporate segment for companies already customers of UnipolSai
MOBILITY	Car-selling platform: acquisition of Cambiomarcia and start of the integration into the Mobility Ecosystem
	Mobility payments: car tax and fines payment integrated with PagoPA; parking booking and payment in affiliated premises
	Electronic toll service: completion of the process to obtain approval and to attain the AISCAT certificate
	Roadside assistance: Tow Truck Unipol Assistance project launched including vertical service integration
	Technology for the customers: Qshino, the new infant car seat with anti-abandonment device
	Medical consult services:
WELFARE	- free and 24/7 in case of Covid-19 infection for all Group customers
	- specialised consult through remote interaction with competent doctors
	Medical centers: launch of a new diagnostic surgical center and rebranding of all Group health premises as DYADEA
	Building refurbishment services: SuperBonus 110%, acquisition of the tax credit and insurance coverage for the building and the work in progress
PROPERTY	Support to the agricultural sector: LIFE ADA (ADaptation in Agricolture) to enhance climate resilience
	Identify extreme weather events: co-development of the European Extreme Events Climate Index (E3CI)
	Utilities supply services: +900 agencies enabled to sell contractsto supply electricity and gas

€m

	Target 2019-2021	Results	% vs. target
Consolidated net profit	2,000 cumulated	1,637 a	82%
Dividends	600 cumulated	201 b	34%
2 ratio c Solvency	140%-160% (comfort range)	216%

201 €m not paid in 2020 allocated to equity reserve and available for distribution to shareholders, according to the indications of the Supervisory Authorities

^a2019-2020 cumulated normalised consolidated results

^b 2019-2020 cumulated dividend

^c Cons. Partial Internal Model ^d Cons. Economic Capital

UNIPOL UNIPOLSAI

	Target 2019-2021	Results	% vs. target
Consolidated net profit	2,000 cumulated	1,574 a	79%
Dividends	1,300 cumulated	991 b	76%
2 ratio d Solvency	170%-200% (comfort range)	281%

Appendix

€m
UNIPOL	FY19	FY20	UNIPOLSAI
a Premium income	14,014	12,210
Non-Life	8,167	7,882
Life	5,847	4,328
Ratio b Combined	94.2%	87.0%
Consolid. Net Result	1,087	864
Group Net Result	903	707
EPS (€) c	1.26	0.99
Cons. Net Result (norm.)	732	905
Group Net Result (norm.)	569	745
EPS (norm., €) c	0.79	1.04
Dividends	--	201
DPS (€)	--	0.280
Total Equity	8,305	9,525
Shareholders' Equity	6,687	7,614
BVPS (€) c	9.32	10.6

	FY19	FY20
a Premium income	14,014	12,210
Non-Life	8,167	7,882
Life	5,847	4,328
Ratio b Combined	94.2%	87.0%
Consolid. net result	655	853
Group net result	628	820
EPS (€) c	0.22	0.29
Cons. Net Result (norm.)	721	853
Group Net Result (norm.)	694	820
EPS (norm., €) c	0.25	0.29
Dividends	453	538
DPS (€)	0.160	0.190
Total Equity	7,153	8,144
Shareholders' Equity	6,878	7,881
BVPS (€) c d	2.43	2.61

24

^aDirect business. ^b Net of reinsurance. ^c Calculated on the total number of shares. ^d FY20 BVPS is calculated excluding the RT1 issued in 2020 from the Shareholders' Equity. Ref. p. 6 for details on normalisation

Companies listed on the Italian Stock Exchange

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

Appendix

As at 31 December 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 15 Mar. 2021
UnipolSai		262	Sub.	Tier II	Jul, 2023	Eur3M+2.5%	early redemption planned
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				4.40% avg. e
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)		1,000	Sen.	--	Sep, 2030	3.25%	issued 2020
Total Unipol S.p.A.		2,731				3.30% avg. e
Total UnipolSai S.p.A. + Unipol S.p.A.d		5,283

^aListed on the Luxembourg Stock Exchange

^b 1 st call date Jun, 2024

c 1 st call date Apr, 2030

^dExcluding intercompany debt

^e Calculated on the basis of interests for 2020

Appendix

€m

As at 31 December 2020

	Assets		Liabilities
a Liquid financial assets	1,829	Financial debt to UnipolSai	568
		Senior debt 2021	231
		Senior debt 2025	1,000
		Senior debt 2027	500
		Senior green bond 2030	1,000
Liquid financial assets	1,829	b Financial debts	3,299
Net Financial Position	-1,470

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