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Unipolsai — Earnings Release 2017
Nov 10, 2017
4413_10-q_2017-11-10_ba88f97b-ab08-42b3-9885-e80a5e362d28.pdf
Earnings Release
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| Informazione Regolamentata n. 0230-34-2017 |
Data/Ora Ricezione 10 Novembre 2017 06:48:11 |
MTA | |
|---|---|---|---|
| Societa' | : | UNIPOLSAI | |
| Identificativo Informazione Regolamentata |
: | 95765 | |
| Nome utilizzatore | : | UNIPOLSAIN07 - Giay | |
| Tipologia | : | 3.1 | |
| Data/Ora Ricezione | : | 10 Novembre 2017 06:48:11 | |
| Data/Ora Inizio Diffusione presunta |
: | 10 Novembre 2017 06:48:12 | |
| Oggetto | : | UNIPOLSAI: APPROVAL OF CONSOLIDATED RESULTS AT 30 SEPTEMBER 2017 |
|
| Testo del comunicato |
Vedi allegato.
UNIPOLSAI: APPROVAL OF CONSOLIDATED RESULTS AT 30 SEPTEMBER 2017
- Consolidated net income, after the effects of the banking sector restructuring plan, amounted to €430m (€427m in the first nine months of 2016).
- Direct insurance income at €7.8bn (€9bn in the first nine months of 2016) Non-Life: €5.1bn (in line with the first nine months of 2016) Life: €2.7bn (down 31.4%)
- Combined ratio after reinsurance at 97.3%
- Profitability of financial investments at 4.0%
- Separate solvency ratio at 243%1
- Consolidated solvency ratio based on economic capital equal to 206%2
1 Figure calculated on the Partial Internal Model to be understood as preliminary as the final figure will be disclosed to the Supervisory Authority according to the timeline set out in the applicable legislation.
2 Economic capital is the measure of absorbed capital calculated on the basis of the principles and models applied in the Partial Internal Model and having operational value.
Bologna, 10 November 2017
The Board of Directors of UnipolSai Assicurazioni S.p.A. approved the consolidated results at 30 September 2017.
| Summary of the Group's most significant data | |||
|---|---|---|---|
| -- | -- | ---------------------------------------------- | -- |
| Amounts in Euro million | 30/9/2017 | 30/9/2016 | Change in % |
|---|---|---|---|
| Direct insurance income | 7,783 | 9,040 | (13.9) |
| Non-Life direct insurance income | 5,109 | 5,141 | (0.6) |
| Life direct insurance income | 2,674 | 3,899 | (31.4) |
| Non-Life combined ratio – direct business | 97.9% | 96.2% | |
| Non-Life combined ratio – net of reinsurance | 97.3% | 96.0% | |
| Net consolidated result | 430 | 427 | 0.6 |
| Amounts in Euro million | 30/9/2017 | 31/12/2016 | Change in % |
| Investments and cash and cash equivalents | 52,094 | 63,261 | (17.7) |
| Shareholders' equity attributable to the Group | 6,338 | 6,156 | 3.0 |
| Separate solvency ratio – Internal Partial Model | 243% | 243% |
At 30 September 2017, the UnipolSai Group reported a consolidated net income of €430m (€427m at 30 September 2016) despite the effects, already apparent at 30 June 2017, of the start of the Unipol Group's banking sector restructuring plan. The plan resulted in significant adjustments to the coverage of non-performing loans of Unipol Banca, which had a negative impact of €105m on UnipolSai.
Not including such impact, the consolidated net profit of UnipolSai was €536m (up 25.5% compared to the first nine months of 2016).
During the reporting period, the insurance direct income, gross of reinsurance cessions, stood at €7,783m (€9,040m at 30 September 2016, down 13.9%).
Non-Life Insurance
Direct income in the Non-Life business at 30 September 2017 amounted to €5,109m (€5,141m at 30 September 2016, down 0.6%). Premium income in the MV segment dropped to €2,932m (down 3.0%) due to the ongoing pressure on rates. The non-MV segment posted premiums of €2,177m with a growth of 2.8%.
UnipolSai reported direct Non-Life income of €4,870m (€4,951m at 30 September 2016, down 1.6%).
The combined ratio after reinsurance3 was 97.3% (97.9% for direct business) compared to 96.0% for the same period in 2016.
The loss ratio stood at 70.3% (68.6% at 30 September 2016), while the expense ratio was 27.1% (27.4% at 30 September 2016). Higher claims due to weather events for a substantial amount had an incidence of approximately 1.8 percentage points on the loss ratio.
The pre-tax result of the Non-Life business was a profit of €369m. Not including the impact of the banking sector restructuring, this result would have been €455m (€381m at 30 September 2016).
Life Insurance
In the Life business, in a market environment that continued to be characterised by very low or negative short-term interest rates, the strategic decision to limit the flows of traditional products with returns linked to segregated funds was confirmed, directing the supply towards multi-branch and unit-linked products.
Direct income, amounting to €2,674m, recorded a decrease of 31.4% (€3,899m at 30 September 2016), largely due to the sharp decline in the income of Popolare Vita (down 64.5%), the bancassurance company that distributes policies through the Banco BPM.
UnipolSai achieved direct income of €2,029m (down 8.2%), where multi-branch and unit-linked products were highly appreciated by the market.
The pre-tax result in the Life business was a profit of €251m. Not including the impact of the banking sector restructuring, this result would have been €271m (€252m at 30 September 2016).
Real Estate Sector
The real estate management continued to be focused on the renovation of certain property units, especially in the Milan area. Sales of property units, or portions thereof, located in various areas of Italy, were finalised in the period under consideration.
Other Activities
The operations of companies belonging to the other sectors in which the Group operates continued to be focused on the development of commercial activities and, as regards the hotel industry in particular, on the completion of the integration of the Atahotels and Una Hotels facilities.
3 Combined ratio after reinsurance and with expense ratio calculated on net premiums for the year.
The overall pre-tax result of the Real Estate and Other Activities sectors was a loss of €19m (loss of €28m at 30 September 2016).
Financial Management
With regard to financial management, the gross profitability of the Group's insurance investment portfolio achieved a particularly significant yield in the period under consideration, i.e. 4.0% of invested assets (3.7% at 30 September 2016), which includes 3.5% relating to the component of coupons and dividends.
Capital
At 30 September 2017, consolidated shareholders' equity amounted to €6,653m (€6,535m at 31 December 2016), including €6,338m attributable to the Group.
At 30 September 2017, the separate solvency ratio was 243%4 of required capital (unchanged compared to 31 December 2016).
At 30 September 2017, the consolidated solvency ratio based on Economic Capital was 206%5 of required capital (212% at 31 December 2016).
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Corporate Governance Appointment of a New Director
Following the 5 October announcement regarding the resignation of Director Milva Carletti, please be informed that the Board of Directors - pursuant to Article 2386, first paragraph, of the Italian Civil Code and the By-Laws in force - has appointed Ms Cristina De Benetti as a non-executive and independent Director of the Company, replacing Ms Carletti.
It should be recalled that Ms Carletti, who was not a member of any Committees, had been appointed by the Company's General Meeting of Shareholders on 27 April 2016 from the list presented by the majority shareholder Unipol Gruppo S.p.A. that came first by number of votes cast and contained 18 candidates, 17 of whom were elected together with the first candidate from the list that came second by number of votes cast. Ms Cristina De Benetti, who accepted the office, was the 18th candidate on such majority list.
The newly appointed Director will remain in office until the next General Meeting of Shareholders.
4 Figure calculated based on the Partial Internal Model to be understood as preliminary as the final figure will be disclosed to the Supervisory Authority according to the timeline set out in the applicable legislation.
5 Economic capital is the measure of absorbed capital calculated on the basis of the principles and models applied in the Partial Internal Model and having operational value.
Ms De Benetti's curriculum vitae is available to the public on the Company's website at www.unipolsai.com (Section Governance / Boards and Officials / Board of Directors).
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Euro Medium Term Notes (EMTN) Programme
During the same meeting, the Board of Directors also approved the renewal the Euro Medium Term Notes (EMTN) Programme for a nominal maximum amount of €3bn, giving the Chairman and the General Manager the authority to perform the necessary acts.
The renewal of the EMTN Programme aims to provide the Company with the required document platform to evaluate whether to issue one or more bonds thereby minimising the time required to seize any favourable market conditions that may arise from time to time.
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Presentation of results to the Financial Community
A conference call is scheduled for today at 12pm. At such time, financial analysts and institutional investors may ask the Group CEO and Senior Management questions on the results at 30 September 2017. The phone numbers to dial to attend the event are: +39 02 8058811 (from Italy and all other countries), +1 718 7058794 (from the US), +44 1212 818003 (from the UK). The multimedia file containing a pre-recorded commentary of the results is already available in the Investor Relations section on the website www.unipolsai.com.
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Maurizio Castellina, Manager in charge of financial reporting for UnipolSai Assicurazioni S.p.A., declares, pursuant to Article 154-bis, paragraph 2, of the "Consolidated law of provisions on financial brokerage", that the disclosure relating to the actual accounting data contained in this press release corresponds to the accounting records, books and entries.
For the significant events that occurred during the period under consideration and after 30 September 2017, please refer to the press releases that may be downloaded at www.unipolsai.com
Glossary
DIRECT BUSINESS COMBINED RATIO: indicator that measures the balance of Non-Life direct technical management, represented by the sum of the loss ratio (ratio between direct claims for the period + other technical charges and direct premiums earned) and the expense ratio (ratio between operating expenses and direct premiums recognised).
COMBINED RATIO AFTER REINSURANCE: indicator that measures the balance of Non-Life total technical management, represented by the sum of the loss ratio (ratio between claims for the period + other technical charges and premiums earned) and the expense ratio (ratio between operating expenses and premiums earned).
UnipolSai Assicurazioni S.p.A.
UnipolSai Assicurazioni S.p.A. is the insurance company of the Unipol Group, Italian leader in Non-Life Business, in particular in vehicle liability insurance. Also active in Life Business, UnipolSai has a portfolio of over 10m customers and holds a leading position in the national ranking of insurance groups with a direct income amounting to approximately €12.5bn, of which €7.2bn in Non-Life Business and €5.3bn in Life Business (2016 figures). The company currently operates through 5 divisions (Unipol, La Fondiaria, Sai, Nuova MAA and La Previdente) and has the largest agency network in Italy, with more than 3,000 agencies and 6,000 sub-agencies spread across the country. UnipolSai Assicurazioni is a subsidiary of Unipol Gruppo Finanziario S.p.A. and, like the latter, is listed on the Italian Stock Exchange, being one of the most highly capitalised securities.