UBS Italian Financial Services Conference 2004

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1 UBS Italian Financial Services Conference 2004 Growth after restructuring Andrea Battista Chief of Bancassurance Department Giorgio Zampieri Chief Financial Officer

2 AGENDA UBS Italian Financial Services Conference 2004 A history of growth Growth after restructuring Drivers for sustainable growth Targets

3 CATTOLICA GROUP Founded in 1896 with co-operative legal-entity structure 5 th Italian insurance Group with 12 companies specialised in life and non-life sectors

4 GROWTH OF VOLUMES Life Non-life CAGR +30.5% 3,731 4,181* 3,351 CAGR +25.3% 2,768 1, E Figures in mln/euro direct and indirect business * Business Plan targets

5 ..AND OF PROFITABILITY Consolidated net result CAGR +42.8% 108* CAGR +21.8% E Figures in mln/euro * Business Plan targets

6 CATTOLICA AND THE MARKET Market al Non- Life 35.1% T O T A L Cattolica Group Non-Life 34.7% Life 64.9% Life 65.3% Market al N O N Motor TPL 54.0% Motor TPL 62.4% Others 46.0% Others 37.6% L I F E Cattolica Group * Based on ISVAP Circular n. 523/S January 2nd 2004

7 AGENDA UBS Italian Financial Services Conference 2004 A history of growth Growth after restructuring Drivers for sustainable growth Targets

8 SCENARIO Economic/Financial variables Interest rates with uncertain increase at the end of the year Equity market still volatile Competitive variables Customer attitude Reduction of operating costs Positioning strategy New technologies Lack of confidence and strong aversion to credit risk Quest for simplicity and transparency and greater demand for advice

9 STRATEGIC MODEL: FOCUS ON CORE BUSINESS Agency distribution network development to reach potential profitable areas and enhancement of agents ability to sell life products CHANNELS New channels: TUA Assicurazioni Brokers Fas Consolidation of bancassurance partnerships and search for alliances in niche segments featuring high potential Assurance Core business Bancassurance PRODUCTS Strong specialisation and flexibility for each channel

10 FOCUS ON EFFICIENCY Reduction of operating costs via: integration of Data Center (IT platform) 3,000 2,500 2,000 1,500 Investments: - 39% Costs: - 50% 1, extension of call center payment system from Motor TPL (except for bodily injuries claims) to other business segments - for example: accident & health automation and process redesign (ongoing)

11 DUOMO RESTRUCTURING In 2 years alignment of COMBINED RATIO with Cattolica 130% 120% 110% 100% 90% Cattolica Duomo

RESTRUCTURING DURING GROWTH Restructuring of Duomo Real estate spin off Transfer to Parent Company s divisions of 3 subsidiaries: Cattolica on line division Verona Assicurazioni division Cattolica

12 RESTRUCTURING DURING GROWTH Restructuring of Duomo Real estate spin off Transfer to Parent Company s divisions of 3 subsidiaries: Cattolica on line division Verona Assicurazioni division Cattolica Aziende division (ongoing) Exploitation by the Parent Company of know-how already developed and achievement of economies of scale and scope Use of the 3 companies vehicles to develop strategic business areas with the acquisition of new know-how DIVISIONE From to

13 TUA: AN INNOVATIVE GROWTH DRIVER TUA Assicurazioni is the First insurer in Italy which INNOVATES the sales model in the AGENT CHANNEL and CUSTOMER RELATIONSHIPS with new products created through deep market research (e.g. focus groups) readdressing the role of agents, focusing solely on commercial activities based on a FRANCHISING logic Targets in 2006 Agencies 200 Clients Non-life premiums 140 mn /euro

14 AGENDA UBS Italian Financial Services Conference 2004 A history of growth Growth after restructuring Drivers for sustainable growth Targets

15 NEW SCENARIO: PATENTE A PUNTI July 2003 Introduction in Italy of the penalty points system for driving licences An opportunity for our clients or a driver to increase profitability of the insurance system?? We haven t enough statistical information. We need at least one year to provide an answer to this question

16 Since 1994 driver-customised tariffs: UNIQUE in Italy In 9M2003 Motor premium growth +16,67% with 1,835,000 policies and 1,150,000 clients Duomo s Motor TPL portfolio entirely renewed and aligned with that of Cattolica: 487,000 new Motor policies at September 30th 2003 Significant savings in terms of costs for XL reinsurance following a major decline in the frequency of the most significant motor TPL claims Market* Change % Claims frequency MOTOR A SUCCESSFUL STRATEGY 9.8% 9.6% - 2.0% CAGR 38% Figures in mln/euro Cattolica Group * Change % 9.0% 9.0% -% Claims payed avg cost 3,268 3, % 3,120 3, % *Cattolica estimate

17 LIFE DRIVERS OF GROWTH AND PROFITABILITY B A N C A S S U R A N C E A S S U R A N C E Long Term stable growth of bank branches Good level of productivity per branch Defence of margin : - stability of average gross margin - balanced mix linked vs. traditional - reduction of average guarantee Cost reduction through integration and economies of scale: 16 bp* Exploitation of cross selling potential of tied agents network of the Group and of newco s (Tua and employees benefits) *Other administrative expenses/average life technical reserves, not annualized as at September 2003

BANCASSURANCE Bancassurance premiums CAGR 98-03 47.3% ~3,050 branches as at 31.12.2003 Market share no.

18 BANCASSURANCE Bancassurance premiums CAGR % ~3,050 branches as at Market share no. of branches 2,468 2,043 2,169 1, < 5% 5%-10% > 10% E Figures in mln/euro Bancassurance Agencies and other channels

19 LIFE BUSINESS E Premiums* ,789 2,043 2,169 2,468 Bank branches (no.) 1,517 2,066 2,653 2,717 2,748 3,053 Premiums/branch( 000) *Figures in mln/euro Market al Index and Unit: 41.6% L I F E Cattolica Group Index: 27.3% Unit: 23.8% Traditional: 58.4% Traditional: 48.9%

20 AGENDA UBS Italian Financial Services Conference 2004 A history of growth Growth after restructuring Drivers for sustainable growth Targets

21 TARGETS E 2004E 2005E CAGR Non-life net premiums 1,388 1,562 1, % Underwriting result Non-Life business Life net premiums Underwriting result Life business Pre-tax profit ,727 2,965 3, % 8.0% 18.1% 18.9% Consolidated net income Group net income % %

22 ADJUSTED ROE 20% 15% 10% 5% 0% 15.1% 12.6% 12.8% 12.3% 8.1% 6.7% 10.2% 10.3% 5.1% 6.3% 2001A 2002A 2003E 2004E 2005E Business plan ROE (1) Adjusted ROE (2)

23 DISCLAIMER This document has been prepared by Cattolica Assicurazioni based on data from internal sources (year-end financial statements, consolidated group financial statements, internal reporting and other company documentation, etc.) for the sole purpose of providing information on the group s results and future operating strategies. Given this, it can in no way be used as a basis for possible investment decisions. It is not a solicitation to buy or sell shares. No part of the document can be taken to be the cause of or reason for agreements or commitments of any type or kind whatsoever, nor can it be relied upon for agreements and commitments.information contained in the document concerning forecasts has been prepared according to various assumptions and/or elements that might ultimately materialise differently to present expectations. Results might therefore change. Cattolica therefore in no way provides any guarantee, either explicit or tacit, as regards the integrity or accuracy of the information or opinions contained in the document, nor can any degree of reliability be attributed to the same, inasmuch as it has not been subjected to independent verification. Responsibility for use of the information and opinions contained in the document lies solely with the user. In any case Cattolica, within legally admissible limits, will not consider itself liable for any damages, direct or indirect, that third parties might claim due to utilisation of incomplete or inaccurate information. For any further information concerning Cattolica Assicurazioni and its related group, reference must be made exclusively to the information given in the annual, quarterly, and interim reports and financial statements. The full versions of these documents, which constitute the factual basis and proof for all legal purposes, are lodged at the company s registered offices and are available to anyone requesting them. Reproduction or full or partial publication and distribution of the information contained herein to third parties is prohibited. Acceptance of the present document automatically signifies recognition of the aforesaid constraints.

24 UBS Italian Financial Services Conference 2004 Growth after restructuring Andrea Battista Chief of Bancassurance Department Giorgio Zampieri Chief Financial Officer

Results as at June 30 th 2015 Cattolica Assicurazioni Group

Results as at June 30 th 2015 Cattolica Assicurazioni Group Results as at June 30 th 205 Cattolica Assicurazioni Group Verona, August 7 th 205 Agenda H 205 Results P&C Business Performance Life Business Performance Investments 2 H 205 Results excluding FATA mln