Bologna, 12 February 2016 UNIPOLSAI: 2013-2015 BUSINESS PLAN
CONCLUDED AND PRELIMINARY CONSOLIDATED RESULTS OF 2015 EXAMINED
2013-2015 Business Plan concluded: cumulative consolidated profits
of 2,216m achieved cumulative dividends of 1,462m1 distributed
synergies amounting to approximately 390m reached Consolidated net
profit in 2015 of 738m (783m in 2014) affected by an extraordinary
negative fiscal impact of 84m Direct insurance income of 13,982m
(-8.8%2, net of the sale of the business unit to Allianz): Non-Life
business: premium income of 7,334m (-5.3%2, net of the sale of the
business unit to Allianz) Life business: income of 6,648 (-12.3%)
Combined ratio at 93.9%3 Solvency I margin equal to 177% Expected
dividend of 0.15 per share
The Board of Directors of UnipolSai Assicurazioni S.p.A., which met
yesterday under the chairmanship of Fabio Cerchiai, examined the
preliminary consolidated results for financial year 2015. The
definitive results shall be examined and approved by the Board of
Directors meeting scheduled for 10 March 2016. The year 2015
concluded the three-year 2013-2015 Business Plan, characterised by
the process of integration with Fondiaria-SAI, after the
acquisition that took place in 2012, one of the largest and most
complex integration transactions occurring during the period on the
Italian market, not only in the insurance industry, and saw the
Unipol Group strongly involved in the following activities:
Corporate restructuring: from 2012 to present the Group's companies
have almost halved (from approximately 120 to approximately 60)
subsequent to merger, disposal and winding-up transactions.
1 2
Value including the expected dividend for the year 2015 Estimated
management figure 3 Combined Ratio for direct business
1
-
Unification of IT systems supporting management processes, the
agency network (from 41 to 19 application platforms) and the
start-up of the new Group Data Center. Corporate and shareholding
streamlining: with the transition from 4 to 2 companies listed and
from 8 to 2 types of shares (Unipol and UnipolSai). Synergies
amounting to approximately 390m by the end the plan, above the
expected target of 349m. Disposal of assets and shareholdings: the
disposal of the business unit as requested by the Antitrust
Authority through the sale of 725 agencies, 1.1bn in premiums and
470 employees to Allianz was completed and the major shareholdings
in portfolio were disposed of.
In the 2013-2015 three-year period, cumulative consolidated profits
of UnipolSai amounted to 2,216m and dividends amounting to 1,426m 1
were distributed, with an average payout on statutory profit of
63%, in line with the 60/80% range indicated in the plan.
Preliminary Consolidated Results 2015 In 2015, UnipolSai recorded a
consolidated net profit of 738m compared to 783m in the year 2014
(-5.8%), due to the recognition of an extraordinary negative impact
equal to 84m regarding the recalculation of deferred taxes due to
the recent variation of the IRES (corporate income tax) rate (from
27.5% to 24%). The consolidated pre-tax result stood at 1,044m
(1,142m in 2014). In particular, Non-Life business contributed to
this result with 813m (954m in 2014) and Life business with 344m
(254m in 2014). In 2015, direct insurance income gross of outwards
reinsurance amounted to 13,982m, a decrease of 8.8% on a comparable
basis compared to 2014, taking into account the sale of the
business unit to Allianz (-12.7% including the effect of such
sale). Non-Life Business Direct premium income of UnipolSai
amounted to 7,334m (-5.3% net of the sale of the business unit to
Allianz compared to 31 December 2014), of which 4,254m from MV
business (-7.3% net of the sale of Allianz) and 3,080m from Non-MV
business (-2.4m net of the aforementioned sale of premiums). In
this context, UnipolSai recorded a combined ratio (direct business)
of 93.9% as at 31 December 2015 (94.6% net of reinsurance) compared
to 95.3% recorded in 2014. The loss ratio (direct business) stood
at 65.4%, contained compared to the 68.1% recorded in 2014. The
expense ratio (direct business) was equal to 28.5%, and was
impacted by the effect of the drop in premiums and the shift in the
production mix towards Non-MV business. The pre-tax result of the
business was a profit of 813m (954m in 2014). Life Business
2
In Life business, a market environment characterised by low
interest rates favoured income allowing lower capital absorption
also in terms of Solvency II. In 2015, the business recorded direct
income amounting to 6,648m, a decrease of 12.3% due to comparison
with the strong performance recorded in the year 2014 (+23.6%),
especially in the bancassurance channel. The Company UnipolSai
Assicurazioni recorded income from direct business amounting to
3,418m. Gruppo Popolare Vita and Lawrence Life recorded a total
income of 3,043m (-17%). The pre-tax result of the business was a
profit of 344m (254m in 2014). Real Estate Business In Real Estate
business, still impacted by difficult market conditions, operations
remained focused on the restoration and redevelopment of certain
properties in portfolio, among which the Velasca and Galfa Towers
in Milan should be mentioned for their importance. Renovation
activities were financed by planned disposals, which in 2015
concerned mainly the Porta Nuova area in Milan and the subsidiary
Punta di Ferro, owner of a building in Forli used as a shopping
centre. The pre-tax result of the business as at 31 December 2015
was a loss of 96m (-74m as at 31 December 2014). This result was
influenced by gross write-downs on certain properties for
approximately 73m . Other Business The commercial development of
diversified companies continued during the period under
consideration. Such activities, together with the restructuring
initiatives implemented in previous years and still in progress,
led to results that although negative show gradual improvement. It
should be noted that in the hotel business, Atahotels recorded a
profit of approximately 2m as at 31 December 2015. The pre-tax
result of the business was a loss of 18m. Financial Management With
regard to the management of financial investments, also in 2015
stock markets were marked by tensions, especially in the second
half of the year, triggered by the slowdown of the Chinese economy,
the fall in raw material prices and, in Italy, the effects of the
bailout of certain banks. The company's securities portfolio,
characterised by the significant presence of Italian government
bonds, maintained substantial appreciation throughout the year,
favoured by the ECB's anti-deflation initiative resulting from the
launch of Quantitative Easing. The profitability of the Group's
securities portfolio, despite aiming to preserve the risk/return
profile of assets and consistency between assets and liabilities
underwritten with policyholders, achieved a significant yield in
the period under consideration, equal to approximately 5% of
invested assets. The disposal policy adopted by the Group
subsequent to operations implemented to increase the
diversification profile of financial assets and the completion,
during the first part of the year, of forward sales transactions
for certain securities agreed upon in 2014 contributed to this
result.
3
Balance Sheet Consolidated shareholders' equity as at the end of
2015 amounted to 6,278m, compared to 6,295m at the end of 2014. The
AFS reserve amounted to 903m in 2015 (1,169m at the end of 2014).
The consolidated solvency margin as at 31 December 2015, calculated
on Solvency I metrics, was equal to 177% the regulatory capital
requirement, compared to 165% at the end of 2014. With regard to
the new prudential supervisory regime, Solvency II, which came into
force on 1 January 2016, it should be noted that the Company has
been authorised by the competent Supervisory Authority (IVASS,
Italian Insurance Supervisory Authority) to use Undertaking
Specific Parameters (USP) for the quantification of the solvency
capital requirement for Non-Life and Health technical insurance
risks. The use of USPs shall allow the Company - pending
authorisation to apply the internal model, for which pre
application procedures continue - to better represent its risk
profile, thus allowing more effective capital management. Estimated
Individual Accounting Records and Dividends for the Year 2015 It
should be noted, moreover, that the individual accounting results
of the Company, still preliminary, give an estimated profit of
550m. Taking this into account, the distribution of a dividend for
the year 2015 equal to 0.15 per ordinary share. In this regard, it
should also be noted that the approval of the draft statutory and
consolidated financial statements of UnipolSai as at 31 December
2015, as well as the proposed allocation of the result of the
period to be submitted to the Shareholders' Meeting, is scheduled
for 10 March. Therefore, the information contained herein is to be
considered preliminary and refers to the date hereof and, as such,
may be subject to changes. The auditing firm has not yet completed
the verification of these figures required in order to issue its
own audit report. Finally, it should be noted that the since
Shareholders' Meeting for the approval of the financial statements
for the year 2015 is scheduled for 27 April 2016, the eventual
ex-dividend date based on the results of such year is scheduled for
the month of May.
**** Presentation of the Preliminary Results to the Financial
Community At 12:00 pm today, a conference call is scheduled during
which financial analysts and institutional investors may submit
question to the Chief Executive Officer and Top Management with
regard to the results as at 31 December 2015. The phone numbers to
dial to attend the event are: +39/02/8020911 (from Italy and other
countries), +1/718/7058796 (from the US), +44/121/2818004 (from the
UK).
***
In order to allow a more complete disclosure of the preliminary
results for the year 2015, please find attached hereto the
preliminary Consolidated Balance Sheet, Consolidated Income
Statement and summary of the Consolidated Income Statement Broken
Down by Business Segment. 4
***
Maurizio Castellina, Manager in charge of financial reporting of
UnipolSai Assicurazioni S.p.A., declares, pursuant to Article
154-bis, paragraph 2, of the "Consolidated Law on Financial
Intermediation", that the accounting information contained in this
document corresponds to the figures in corporate accounting
records, ledgers and documents.
Glossary COMBINED RATIO: sum of loss ratio and expense ratio
EXPENSE RATIO: ratio of Non-Life operating expenses and on earned
premiums LOSS RATIO: ratio of Non-Life claims and premiums AFS
RESERVE: reserve on assets classified as "Available-for-sale"
Contacts Unipol Group Press Office Fernando Vacarini Tel.
+39/051/5077705 pressoffice@uniposail.it Barabino & Partners
Massimiliano Parboni m.parboni@barabino.it Tel. +39/335/8304078
Giovanni Vantaggi g.vantaggi@barabino.it Tel. +39/328/8317379
Unipol Group Investor Relations Adriano Donati Tel. +39/051/5077933
investor.relations@unipolsai.it
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 10
million customers and holds a leading position in the national
ranking of insurance groups with a direct income amounting to
approximately 16bn, of which 8.4bn in Non-Life Business and 7.6bn
in Life Business (2014 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 capitalized
securities.
5
Consolidated Balance Sheet Assets
Amounts in m
Preliminary at 31/12/2015 750.6 306.7 443.8 1,432.6 1,323.4 109.2
868.9 61,010.1 2,535.3 528.1 1,100.0 5,250.7 42,804.5 8,791.5
2,958.0 1,518.6 75.7 1,363.8 746.5 16.5 86.8 186.6 44.6 411.9 957.4
68,724.0
31/12/2014 804.8 306.7 498.1 1,196.4 1,072.0 124.4 960.2 61,122.0
2,824.2 608.4 1,420.0 5,169.5 42,113.7 8,986.2 3,395.1 1,630.8 89.8
1,674.6 813.9 23.6 75.5 221.8 97.5 395.6 684.0 68,976.5
1 1.1 1.2 2 2.1 2.2 3 4 4.1 4.2 4.3 4.4 4.5 4.6 5 5.1 5.2 5.3 6 6.1
6.2 6.3 6.4 6.5 7
INTANGIBLE ASSETS Goodwill Other intangible assets PROPERTY, PLANT
AND EQUIPMENT Property Other items of property, plant and equipment
TECHNICAL PROVISIONS - REINSURERS' SHARE INVESTMENTS Inves tment
property Inves tments in subsidiaries and associates and interests
in joint ventures Held-to-maturity investments Loans and
receivables Available-for-s ale financial assets Financ ial assets
at fair value through profit or loss SUNDRY RECEIVABLES Rec
eivables relating to direct insurance business Rec eivables
relating to reinsurance business Other receivables OTHER ASSETS
Non-c urrent assets held for sale or disposal groups Deferred
acquisition costs Deferred tax assets Current tax assets Other
assets CASH AND CASH EQUIVALENTS TOTAL ASSETS
Consolidated Balance Sheet Equity and Liabilities
Amounts in m
Preliminary at 31/12/2015 6,614.5 6,277.6 2,031.4 0.0 346.8 2,297.1
-49.5 3.9 902.9 33.8 711.3 336.9 277.8 32.8 26.3 518.6 56,095.2
3,896.9 1,543.2 2,353.7 806.9 114.8 96.6 595.4 792.0 0.0 40.6 34.8
716.7 68,724.0
31/12/2014 6,634.9 6,295.2 1,996.1 110.1 247.8 2,062.8 -49.5 3.8
1,169.3 15.2 739.5 339.7 261.5 34.4 43.8 619.9 56,228.5 3,812.7
1,365.4 2,447.3 818.9 143.7 40.9 634.4 861.6 2.6 86.3 15.7 757.0
68,976.5
1 1.1 1.1.1 1.1.2 1.1.3 1.1.4 1.1.5 1.1.6 1.1.7 1.1.8
EQUITY a ttributa bl e to the owners of the Parent Share capital
Other equity instruments Equity -related reserves Inc ome-related
and other reserves (Treas ury shares) Trans lation reserve Gains or
losses on available-for-sale financial assets Other gains or losses
recognised directly in equity
1.1.9 Profit (loss) for the year attributable to the owners of the
Parent
a ttributa bl e to non-controlling interests Share capital and
reserves attributable to non-controlling 1.2.1 interests 1.2.2
Gains or losses recognised directly in equity
1.2 1.2.3 Profit (loss) for the year attributable to
non-controlling interests 2 3 4 4.1 4.2 5 5.1 5.2 5.3 6 6.1 6.2 6.3
6.4
PROVISIONS TECHNICAL PROVISIONS FI NANCIAL LIABILITIES Financ ial
liabilities at fair value through profit or loss Other financial
liabilities PAYABLES Pay ables arising from direct insurance
business Pay ables arising from reinsurance business Other payables
OTHER LIABILITIES Liabilities associated with disposal groups held
for sale Deferred tax liabilities Current tax liabilities Other
liabilities TOTAL EQUITY AND LIABILITIES
Consolidated Income Statement
Amounts in m
Preliminary at 31/12/2015 13,095.1 13,557.8 -462.8 9.3 393.1 25.8
2,430.7 1,489.8 185.3 722.3 33.3 505.4 16,459.4 -11,584.7 -11,804.0
219.4 -8.3 -8.0 -628.4 -90.6 -48.0 -247.5 -242.2 -2,421.7 -1,802.7
-119.8 -499.2 -764.7 -15,415.7 1,043.7 -306.1 737.6 0.0 737.6 711.3
26.3 31/12/2014 15,960.6 16,414.6 -454.0 14.9 71.8 6.9 2,817.6
1,593.2 186.7 767.1 270.6 868.7 19,740.5 -14,312.8 -14,571.6 258.7
-13.7 -26.0 -665.7 -97.5 -96.3 -286.7 -185.2 -2,645.9 -1,982.3
-98.2 -565.5 -934.4 -18,598.5 1,142.0 -354.5 787.5 -4.1 783.4 739.5
43.8
1.1 1.1.1 1.1.2 1.2 1.3 1.4 1.5 1.5.1 1.5.2 1.5.3 1.5.4 1.6 1 2.1
2.1.1 2.1.2 2.2 2.3 2.4 2.4.1 2.4.2 2.4.3 2.4.4 2.5 2.5.1 2.5.2
2.5.3 2.6 2 3 4
Net premiums Gros s premiums Ceded premiums Fee and commission
income Gains and losses on financial instruments at fair value
through profit or loss Gains on investments in subsidiaries and
associates and interests in joint ventures Gains on other financial
instruments and investment property Interes t income Other gains
Realis ed gains Unrealis ed gains Other revenue TOTAL REVENUE AND
INCOME Net charges relating to claims Amounts paid and changes in
technical provisions Reins urers ' share Fee and commission expense
Los s es on investments in subsidiaries and associates and
interests in joint ventures Los s es on other financial instruments
and investment property Interes t expense Other charges Realis ed
losses Unrealis ed losses Operating expenses Commis s ions and
other acquisition costs Inves tment management expenses Other
administrative expenses Other costs TOTAL COSTS AND EXPENSES
PRE-TAX PROFIT (LOSS) FOR THE YEAR Inc ome tax POST-TAX PROFIT
(LOSS) FOR THE YEAR PROFIT (LOSS) FROM DISCONTINUED OPERATIONS
CONSOLI DATED PROFIT (LOSS) FOR THE YEAR attrib utab le to the
owners of the Parent attrib utab le to non-controlling
interests
Condensed Consolidated Income Statement by Business Segment
Amounts in m
NON-LI FE BUSINESS
dec-15 d ec-14
LI FE BUSINESS
INSURANCE BUSINESS
OTHER BUSINESSES
0 0 -3 1 0 0 -4 0 -50 0 -50 35 -18 9 0 -9 -9 0 0.0 7 n.s. 43 -106.1
44 -97.6 0 -48.2 8 -100.3 -8 0 -66 0 -66 19 4 -4 1 0 0 -55.4 0.0
-24.7 0.0 -24.7 81.7 n.s. n.s. n.s. n.s.
REAL ESTATE Inte rse gm e nt CONSOLI DATED BUSINESS Elimination
TOTAL
d ec-15 d ec-14 d ec-15 d ec-14 var . %
v ar. % d ec-15 d ec-14 v ar. %
d ec-15 d ec-14 v ar. % d ec-15 d ec-14 v ar. % d ec-15 d ec-14 v
ar. %
Net premiums Net fees and commissions Financ ial income/expense **
Net interest Other income and expenses Realis ed gains and losses
Unrealis ed gains and losses Net charges relating to claims
Operating expenses Commis s ions and other acquisition costs Other
expenses Other income / expense Pre -ta x profit (loss) Inc ome tax
Profit (loss) on discontinued operations Consol ida te d profit
(loss) for the period Profit (loss) attributable to the owners of
the Parent Profit (loss) attributable to non-controlling
interests
7,040 0 633 346 85 344
8,439 -16.6 6,055 7,522 -19.5 13,095 15,961 -18.0 0 -244.7 1 0 n.s.
1 0 n.s. 497 27.5 1,491 1,329 12.2 2,124 1,825 16.4 398 -13.1 1,060
1,087 -2.4 1,406 1,485 -5.3 50 71.0 66 -12 -669.1 151 38 296.7 160
115.6 323 238 36.0 668 398 67.9 28.0 41 16 160.8 -101 -95 6.0 -19.8
-6,840 -8,183 -16.4 -11,419 -13,892 -17.8 -9.1 -331 -356 -7.1
-2,380 -2,611 -8.9 -9.5 -175 -208 -15.8 -1,803 -2,006 -10.1 -7.8
-155 -148 5.1 -577 -605 -4.6 n.s. -14.8 -17.7 0.0 -13.5 -32 344
-107 0 237 211 -57 254 -93 0 161 122 44.3 35.3 14.6 0.0 47.3 -265
1,157 -342 0 815 787 -74 1,208 -379 0 830 789 n.s. -4.2 -9.8 0.0
-1.7
0 0 -48 -2 26 -1 -71 0 -13 0 -13 -35 -96 27 0 -69 -67
0 0.0 0 0.0 -34 -39.6 -2 5.1 34 -23.1 -1 37.3 -66 0 -10 0 -10 7.9
0.0 33.3 0.0 33.3
0 0 -27 0 -27 0 0 0 21 0 21 6 0 0 0 0 0 0
0 -6 -51 -24 -27 0 0 0 41 24 17 20 4 0 -4 0 0 0
13,095 15,961 -18.0 1 1 -13.1 2,048 1,784 14.8 1,405 1,503 -6.5 151
45 232.0 666 404 64.9 -175 -169 -11,419 -13,892 -2,422 -2,646
-1,803 -1,982 -619 -664 -259 1,044 -306 0 738 711 26 -66 1,142 -355
-4 783 740 44 3.8 -17.8 -8.5 -9.1 -6.7 n.s. -8.6 -13.7 n.s. -5.8
-3.8 -39.9
-142 -111 -4,579 -5,709 -2,049 -2,255 -1,627 -1,797 -422 -458 -233
813 -235 0 578 576 -17 954 -285 0 669 667
-30 -16.4 -74 -29.4 29 -6.3 -1 n.s. -46 -48.8 -50
2 1 26 39 28 40 0 0 -2 3 (*) the Real Estate Business only includes
real estate companies controlled by UnipolSai (**) Excluding
assets/liabilities at fair value related to contracts issued by
insurance companies with investment risk borne by customers and
arising from pension fund management