SHAREHOLDERS MEETING, 30 APRIL Carlo Cimbri CEO

Transcription

1 SHAREHOLDERS MEETING, 30 APRIL 2012 CONSOLIDATED RESULTS AS AT 31 DECEMBER 2011 Carlo Cimbri CEO Bologna, 30 April 2012

2 AGENDA Results as at 31 December 2011 Consolidated result Insurance business Non-Life insurance business Life insurance business Banking business Investment tmanagement Capital and Solvency

3 2011 HIGHLIGHTS Combined ratio 95.5% 5% vs 102.1% 1% in 2010 and vs the 2012 business plan target of 97.5% Non-Life Technical Margin at 386m vs 242m of the business plan in 2011 and the 2012 business plan target of 325m Life New Business Value at 50m (vs 42m in 2010) Consolidated Net Profit (before Unipol Banca-related impairments) of 226m (vs 71m in 2010) Solvency I Ratio: 125% before enforcement of Isvap Regulations, with an excess of 560m vs the minimum required margin; 140% after enforcement of Isvap Regulations, with an excess of 900m vs the minimum required margin 3

4 2011 CONSOLIDATED NET RESULT Consolidated net result normalised 112 Goodwill realignment 184 Disposal of securities ii to strengthen the holding s liquidity idi 70 Consolidated net result before Unipol Banca impairment 226 Impairment* 320 o/w: Unipol Banca 119 o/w: goodwill of Unipol Banca branches 201 Consolidated net result reported 94 * total impairment before taxes 419m 4

5 AGENDA Results as at 31 December 2011 Consolidated result Insurance business Non-Life insurance business Life insurance business Banking business Investment management Capital and Solvency

6 CONSOLIDATED RESULT TREND FY10 1Q11 1H11 9M11 FY Pre-tax result Net result Reported result Reported result Reported result Reported result Normalis. result Goodwill realign. Disposal of securities Goodw. imp. U.Banca sharehold. Goodw. imp. U.Banca branches Reported result Note: figures including BNL Vita 6

7 CONSOLIDATED INCOME STATEMENT BY BUSINESS SECTOR m FY10 FY11 (excluding Unipol Banca impairment ) Non-Life Life Banking Holding Cons. net business business business & cons. result adj. Non-Life Life Banking Holding Cons. net business business business & cons. result adj. Note: consolidated results, including BNL Vita, after tax, before minority interests 7

8 AGENDA Results as at 31 December 2011 Consolidated result Insurance business Non-Life insurance business Life insurance business Banking business Investment management Capital and Solvency

9 NON-LIFE BUSINESS DIRECT WRITTEN PREMIUMS m Income by business segment 4,243 4, % +1,2% +1.2% +2,7% +2.7% Income by Company Income by channel % on total -0.5% -0.6% 82.7% +19.4% +1.1% (excl. Arca) +17.8% +17.8% +11.2% 9.2% 4.6% n.m.* n.m.* 3.5% *Arca Group consolidated as from July

10 NON-LIFE COMBINED RATIO (direct business) Var vs 2009: p.p. Var vs 2009: -5.9 p.p. Combined ratio Expense ratio Loss ratio 108.0% 0% 15.5% 6.4% 86.0% 22.0% 102.1% 100.3% 15.5% 22.1% 14.8% 6.6% 6.8% 80.0% 0% 78.7% Var vs 2010: -6.6 p.p. 99.0% 21.6% 15.7% 22.3% 6.6% 76.7% 98.1% CoR Motor 97.3% CoR Non-Motor 92.9% 15.7% 95.5%* 22.5% 6.8% 15.8% 22.3% 6.5% 75.6% 73.2% FY09 commissions/premiums other operating expenses/premiums FY10 1H11 9M11 1Q11 FY11 * 96.9% 9% net of reinsurance 10

11 NON-LIFE INDUSTRIAL MARGIN TREND PRODUCT DEVELOPMENT UNDERWRITING PORTFOLIO MANAGEMENT CLAIMS SETTLEMENT AGENCY NETWORK MV: veichles with Unibox installations Tariff customization based on driving style Non MV: Retail: new products for Accidents and Families focused on protection Non retail: Sales campaings vs particular target of SMEs Retail products: Design of new control tools on underwriting quality Tailor made products: Design of a new underwriting process MV: Completion of pruning of fleet portfolio Non MV: Retail: Accident and health portfolio pruning Non retail: Recovery on General TPL underway Injury costs: Drawing up of a new Direct access to Unibox data for Agents agreement claim settlement; based on remuneration of Channeling claims to Unisalute portfolio quality network; Enhancement of CRM on Material damages: Assicoop network and on Restructuring of contracted body 176 tied agencies shops network with increase in Enhancement of agency channeling and costs control; models on 124 pilot tied Full operating fraud prevention agencies underway supported by IT Industrial margin(*) m plan 2012 plan * Excl. Arca Var. vs

12 NON-LIFE BUSINESS FOCUS ON MOTOR TPL* Motor TPL indicators Var. FY10 vs FY09 Var. FY11 vs FY10 Portfolio (no. of policies) -5.7% -0.7% Portfolio average premium No. of claims reported Claims settlement speed Frequency +4.8% +3.1% -14.0% -18.7% +5.1 p.p p.p. -9.4% -15.9% 12 *excluding Arca

13 AGENDA Results as at 31 December 2011 Consolidated result Insurance business Non-Life insurance business Life insurance business Banking business Investment management Capital and Solvency

14 LIFE BUSINESS DIRECT INSURANCE INCOME m +9.6% Index/Unit linked 251 (+ n.m.) Capitalization 316 (-16.0%) +9,6% Pension Funds F 412 (+0.3%) Traditional 1,495 (+6.5%) Income by Company Income by channel -4.0% -1.1% nm* n.m. n.m.* n.m. *Arca Group consolidated as from July 2010 Note: figures excluding BNL Vita Var. % income - agency channel: Unipol -2% Market -6.5% 14

15 LIFE BUSINESS APE, NBV, NBM, VIF m Unipol Ass.ni APE NBV NBM VIF FY % FY FY % FY Arca FY % FY % 67 FY10 54 FY11 58 FY % FY Total* FY % FY MAIN ASSUMPTIONS 2011 Average discounting rate: 6.15% Average yield rate: 3.65% Tax rate: 34.32% 32% *Total pro-quota: Unipol Assicurazioni 100%, Arca 61.58%; Arca consolidated as from July Note: 2010 figures restated according to 2011 assumptions assumptions were: discounting rate 6.25%, yield rate 3.80%, tax-rate 32.32%. 15

16 LIFE NEW BUSINESS MARGIN EVOLUTION mln PRODUCT DEVELOPMENT DISTRIBUTION PORTFOLIO MANAGEMENT Update of product pricing and review of cost guaranties completed Therefore the life supply is today available through the Matrix Products-Needs and the Lifecycle Model Finalized the new agents contract with incentive based on quality portfolio Enhancement of the management of policy maturity with CRM support Agency dedicated life specialists working close with Life Tutors Start up of the migration to a new operating IT platform for the management of life products New Business Margin (*) 18.4% 20.3% 21.5% PLAN *Total pro-quota: Unipol Assicurazioni 100%, Arca 61.58%; Arca consolidated as fromjuly Figures restated according to 2011 assumptions 16

17 AGENDA Results as at 31 December 2011 Consolidated result Insurance business Non-Life insurance business Life insurance business Banking business Investment management Capital and Solvency

18 BANKING GROUP CONSOLIDATED FINANCIAL HIGHLIGHTS m Direct deposits* bn Indirect deposits 8,679 9, % % -17.5% +10.2% (+ 726m) m Lending* deposits - lending + 594m Lending indicators** FY11 7,817 7, % (+ 132m) Net non-performing loans ( m) 1,212 Net non-performing loans/ loans 12.1% Non-performing loans coverage ratio Net bad and doubtful loans/loans Bad and doubtful loans coverage ratio 25.8% 4.3% 45.5% *excluding securitisation schemes before 2010 **reclassified management figures net of loans guaranteed by the Holding comapny for 491m 18

19 BANKING GROUP CONSOLIDATED ECONOMIC HIGHLIGHTS m Gross operating income Operating costs % -4.0% % -4.7% -1.5% -1.4% Consolidated result FY10 FY m after branches impairment 3 1 Core Tier 1 Capital adequacy +1.1% +1,1% -0.2% 6.8% -0.5% 8.2% pre-tax result net result IRAP increase FY10 Cap. increase 100 m Goodwill realign. Taxation AFS reserve RWA Weight. FY11 19

20 BANKING BUSINESS BUSINESS PLAN ENHANCEMENT BUSINESS MODEL PROFITABILITY OPERATING MODEL SALES NETWORK New lending focused on core business (Retail, SMEs and targeted markets) Creation of a Sales Department dedicated to cooperatives in terms of resources/services Rebalancing of interest income through lending/deposits pricing review Completion of centralization at Group level of main costs management to achieve economies of scale Tier 1 from 6 8% (2010) to 8 2% (2011) of resources/services Tier 1 from 6.8% (2010) to 8.2% Centralization of Unipol Merchant s loan portfolio in Unipol Banca Operating management of loans with RE collateral also with the Holding company s support Review of branches geographic location underway and enhancement actions to realign network s profitability to market benchmarks +10.2% direct deposits from third parties in ,600 new retail and SMEs current accounts (96% of current accounts openings in 2011) m Consolidated net result 45 50m pre Irap increase PLAN 20

21 AGENDA Results as at 31 December 2011 Consolidated result Insurance business Non-Life insurance business Life insurance business Banking business Investment management Capital and Solvency

22 bn ASSET ALLOCATION Cash 1.0 (5.5%) BREAKDOWN BY ASSET Equity 13(70%) 1.3 (7.0%) FY10 TOT. 19.1bn* BREAKDOWN BY ACCOUNTING CATEGORY Held To Maturity 1.8 (9.3%) L&R 3.6 (19.1%) Cash 1.0 (5.5%) Bonds 16.7 (87.6%) Fair Value 0.5 (2.5%) Available For Sale 12.1 (63.6%) BREAKDOWN BY ASSET Cash 0.9 (5.4%) Equity 1.2 (7.0%) FY11 TOT. 17.4bn* -8.8% Duration Non Life 2.62 Life 3.19 Holding 1.40 Total BREAKDOWN BY ACCOUNTING CATEGORY Held ldto Maturity 1.5 (8.7 %) Fair Value 04(22%) 0.4 (2.2%) L&R 3.6 (20.9%) Cash 0.9 (5.4%) Over 0.3bn real estate investments (excl. own-used) Bonds 15.2 (87.6%) *Insurance investments managed by Unipol Group, mark to market, excluding BNL Vita, Class D and Unipol Banca bonds (intercompany) and including Arca. Available For Sale 10.9 (62.9%) 22

23 BOND PORTFOLIO BREAKDOWN BY RATING Total: 15.2bn* BREAKDOWN BY RATE INDEXING above or equal to A+:19% Floating rate: 30% NR or below BBB-: 3% from BBB- to BBB+: 14% from A to A-: 64% Fixed rate: 70% BREAKDOWN BY BUSINESS AREA Holding: 2% Life: 66% Non-Life: 32% *Insurance investments managed by Unipol Group, mark to market, excluding BNL Vita, Class D and Unipol Banca bonds (intercompany) and including Arca. 23

24 BOND PORTFOLIO BREAKDOWN BY ISSUER Total: 15.2bn* Spain Ireland Portugal Greece 7.1% Government 59% Italy 46.7% Other 4.9% Corporate 3% Financials Financials Corporate Government m EURO GOVERNMENT BONDS 31/12/ /03/2012 Gross figures % on tot % on tot before segr. acc. and taxes MtoM bond ptf. MtoM bond ptf. Spain % % Ireland % % 39% Portugal % % Greece % % Total 1, % % Italy 7, % 8, % Net figures after segr. acc. and taxes** MtoM MtoM Spain Ireland Portugal Greece 11 9 Total Italy 1,692 1,964 *Insurance investments managed by Unipol Group, mark to market, excluding BNL Vita, Class D and Unipol Banca bonds (intercompany) and including Arca **Tax rate applied: 34.32% 24

25 INCOME FROM FINANCIAL INVESTMENTS* m FY coupons and dividends gains fair value through P&L total income Yield % 3.70% 0.64% -0.47% 3.88% FY coupons and dividends gains fair value through P&L total income Yield % 4.12% -0.14% -0.78% 3.20% *Insurance sector, excluding Class D and BNL Vita. Including Arca 25

26 INCOME FROM FINANCIAL INVESTMENTS* BY BUSINESS SECTOR m NON-LIFE coupons and dividends gains fair value through P&L total income % yield 3.81% -0.08% -0.56% 3.18% LIFE % yield coupons and dividends gains fair value through P&L total income 4.29% 0.42% -0.95% 3.76% HOLDING coupons and dividends gains fair value through P&L total income % yield 3.84% -7.60% -0.01% -3.77% *Insurance segment, excluding Class D and BNL Vita. Including Arca 26

27 AGENDA Results as at 31 December 2011 Consolidated result Insurance business Non-Life insurance business Life insurance business Banking business Investment management Capital and Solvency

28 AVAILABLE FOR SALE RESERVE TREND* m equities bonds FY10 1Q11 1H11 9M11 FY11 1Q12 (Provisional) Total % % % -15 2% Italy % GIPS Other Corporate *break-up based on in-house estimate. Excluding BNL Vita 28

29 UNIPOL GROUP SOLVENCY I bn Available Capital 3.2-0, ,42-0, , ,04 as at 12/03/ m FY10 BNL Vita Proforma Net result Lower goodwill Delta Other 31/12/11 Isvap Reg. 31/12/11 disposal FY10 31/12/11 to deduct AFS adjust. Before Isvap Reg. 28 and 37 After Isvap Reg. Solvency Requirements ,33 excess vs minimum required margin: excess vs minimum required margin: 0.6bn 0.9bn 0, , , FY10 BNL Vita Proforma Banking Non-Life Life 31/12/11 31/12/11 disposal FY10 business business business Before Isvap Reg. After Isvap Reg. Solvency I Ratio 1.3x 1.4x 1.3x 1.4x before Isvap Reg. after Isvap Reg. 1.3x Solvency II (QIS5) 1.2x Solvency II (QIS5) 29

30 2011 results and Business Plan key targets ( Business Plan target) Budget combined ratio Danni (dir.business) Life new business margin 108.0% 102.1% 95.5% 97.5% 93% 19% [a] 18.4 [c] 20.3% [c] 21.5% [c] Banking Group Net result - 24m 6 m 1 m [d] 45 m Consolidated net result m 71 m 112 m [d] 225 m 250 m solvency ratio 14x(Solv 1.4 (Solv. I) 13x(Solv 1.3 (Solv. I) x (Solv. I) 14x(Solv 1.4 (Solv. I) 1.5 x (Solv. I) 1.4 x (Solv. II) [b] 1.3 x (Solv. II) [b] 1.2 x (Solv. II) 1.4 x (Solv. II) [b] [b] a) Unipol Ass.ni figures related to previous assumptions b) Solvency ratio based on Internal Model (settlement underway) and Standard Formula, as defined within the QIS5. c) Based on 2011 new assumptions d) Normalised figure 30

31 SHAREHOLDERS MEETING 30APRIL 2012 UNIPOL GRUPPO FINANZIARIO SPA STATUTORY ACCOUNT AS AT 31 DECEMBER 2011 Carlo Cimbri CEO Bologna, 30 April 2012

32 m STATUTORY ACCOUNTS RESULTS OF MAIN GROUP S OWNED COMPANIES normalised impairment Result Value adjs.on result current (excl. Adjs) goodwill/branch. Unipol Banca (after tax) including Unipol Banca impairment assets (after tax) 2011 economic result Unipol Assicurazioni Unisalute Linear Arca Vita Arca Assicurazioni Unipol Banca In 2011 UGF S.p.A. didn t receive any dividends from owned companies, due to value adjustments made on their portfolio assets. 32

33 UGF SPA RECLASSIFIED INCOME STATEMENT ( m) Income from investments Other financial income Interest and other financial charges (59.4) (132.8) Exchange rate gains (losses) (0.3) (0.4) NET FINANCIAL INCOME 4.3 (70.5) Write-backs Write-downs (46.0) (286.4) TOTAL ADJUSTMENTS (36.8) (285.1) TOTAL OTHER OPERATING INCOME TOTAL OTHER OPERATING COSTS (80.7) (158.0) OPERATING PROFIT/(LOSS) (80.0) 0) (481.6) NET EXTRAORDINARY INCOME (EXPENSE) (6.5) 59.1 PRE-TAX PROFIT/(LOSS) (86.5) (422.5) Income taxes NET PROFIT/(LOSS) FOR THE YEAR (63.7) (358.3) 33

34 UGF SPA BALANCE SHEET m ASSETS A) SHARE CAPITAL PROCEEDS TO BE RECEIVED B) FIXED ASSETS 4, ,710.1 C) CURRENT ASSETS 1, D) PREPAYMENTS AND ACCRUED INCOME TOTAL ASSETS 5, ,693.9 LIABILITIES A) EQUITY I Share capital 2, ,699.1 II Share premium reserve 1, ,144.8 III Revaluation reserves IV Legal reserve VII Other reserves Extraordinary reserve Reserve for own shares/parent s shares Share exchange reserve IX Profit (loss) for the year TOTAL EQUITY 4, ,337.9 B) TOTAL PROVISIONS FOR RISKS AND CHARGES C) EMPLOYEES LEAVING ENTITLEMENT D) TOTAL LIABILITIES 1, ,228.0 E) TOTAL ACCRUED EXPENSES AND DEFERRED INCOME TOTAL LIABILITIES ,

35 UNIPOL GRUPPO FINANZIARIO SPA PROPOSALS TO SHAREHOLDERS MEETING

36 UGF SPA PROPOSALS TO SHAREHOLDERS MEETING PROPOSAL to endorse the statutory accounts of Unipol Gruppo Finanziario S.p.A. as at 31 december 2011, which includes the BoDs explanatory report, reporting a loss of 358,347,966.82; PROPOSAL to cover the above mentioned loss of 358,347, through the employment of the following capital reserve: Extraordinary reserve (of capital) for its whole amount of 187,428,627.08; Share Exchange reserve for 2,626,000.00; Share premium reserve for 168,293,

37 UNIPOL GRUPPO FINANZIARIO SPA FIRST 1Q12 FIGURES

38 DIRECT INSURANCE INCOME m 1,704 1, % New Scope Of Consolidation (excl.bnl Vita) ,067 1, % +0.7% 1Q 11 1Q 12 provisional i NON-LIFE LIFE 38

39 NON-LIFE FOCUS ON MV TPL UNIPOL ASSICURAZIONI MV TPL indicators Var. 1Q12 vs 1Q11 (provisional) Portfolio (n policies) (single) (fleets) (total) -2.1% -2.9% 29% -2.1% N. of claims reported (passive claims with follow-up) Claim settlement t speed (Managed claims Current year) -11.8% +3.5 p.p. 39

40 UNIPOL GROUP SOLVENCY RATIO 1.40 ~1.5 Excess vs requirements: ~ 1.1 bn 1.25 >1.4 ~ 1.0 bn FY 11 1Q 12 provisional Ante Isvap Reg. Post Isvap Reg. Solvency I 40