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 mln including FATA H204 H205 % H204 H205 % Total direct premiums 2,94 2,986 +2.5% 2,94 3,97 +9.7% P&C direct premiums 844 822-2.6% 844,033 +22.3% Life direct premiums 2,070 2,64 +4.5% 2,070 2,64 +4.5% Combined ratio 2 9.5% 92.0% +0.5 pps 9.5% 93.4% +.9 pps Shareholders Equity (Cons.) 2,8 3 2,5 +.6% Solvency I Ratio 4.90 5.92 +0.02 pps Consolidated Net Result 56 67 +9.6% Group s Net Result 48 53 +0.4% Including investment contracts. 2 Retained business. 3 Net of Parent Company and minorities dividend. As at 3.2.204. 4 Post Parent Company s dividend payment. 5 As at 3.2.204. 3
Consolidated Income Statement as at June 30 th 205 Group Companies contribution to consolidated result 30.06.204 Normalised Impairment 30.06.204 30.06.205 Normalised Impairment 30.06.205 mln P&C Insurance Companies 45 0 45 6-7 54 Life Insurance Companies 2 0 2 25-4 Non-Insurance Companies - - - - IAS/IFRS Consolidated Result 56 0 56 85-8 67 IAS/IFRS Group s Result 48 0 48 7-8 53 4
Consolidated Shareholders Equity mln Group s Shareholders Equity 67 2,88 2,5,963-70 -29-5,923 Group s Shareholders Equity FY204 Shareholders Equity H205 Result Cattolica & minorities dividend 2 Changes in AFS reserve Other H205 Shareholders Equity It includes the changes in shadow accounting (net of taxes). 2 Mainly buy-back and third party s capital. 5
Group s Solvency I ratio Ratio: Available capital/required margin Initial Ratio as at FY204 before Parent Company s dividend.96 Parent Company s dividend - 0.06 Initial Ratio as at FY204 post Parent Company s dividend.90 Variation of required margins - 0.06 Result of the period and changes in AFS reserve 0.08 Ratio as at H 205.92 6
Solvency I ratio trend AVAILABLE CAPITAL ( mln),782,869 SOLVENCY I RATIO,082,203,37 Post dividend.40.55.62.90.92 / 20 202 203 204 H205 MINIMUM REQUIRED MARGIN ( mln) 20 202 203 204 H205 768 775 80 938 97 Excess Capital : 898 mn (x regulatory min.) 20 202 203 204 H205 After the application of the anti crisis decrees. 7
Agenda H 205 Results P&C Business Performance Life Business Performance Investments 8
P&C Premiums P&C PREMIUMS P&C PREMIUMS mln Non Motor CATTOLICA GROUP (escluding FATA) 844 822 343 355 % Jun5/ Jun4-2.6% +3.4% CATTOLICA GROUP (with FATA),033 458 % Jun5/ Jun4 +22.3% +33.4% % Mkt Mar205/ Mar204-2.0% +2.4% The evolution of P&C premiums (net of FATA) is characterized by the decrease of motor business by 6.7% mainly due to the decrease of the average premium. The number of motor policies as at July 205 grows by 2.8% compared to FY204 (+8.30 policies compared to FY204); Average motor premium as at July 205 decreases by 5.4% compared to FY204. Motor 50 575 467-6.7% H204 H205 H205 +4.8% -5.4% A strong contribution was offered by Tua Assicurazioni, a company of the Group that operates mainly through non tied agencies, with 9 mln premiums (+2,7%). P&C PREMIUMS BREAKDOWN BY CLASS P&C PREMIUMS BREAKDOWN BY CHANNEL TPL- Land motor vehicles 49.3% FATA included Land vehicles hulls 6.4% Accident & Injury 9.4% Brokers 2.3% Other channels 2.0% Banks 3.3% FATA included Other damage to assets 2.3% Other 5.5% Health 3.2% Fire and natural forces 5.7% General TPL 8.2% Agencies 92.4% Source: IVASS premiums as reported on ANIA Trends n.6 (July205) 9
P&C premiums by class (excluding FATA) P&C Premiums by class Classes ( mln) H204 H205 Δ% Var % June 205 on 205/204 June 203 MARKET Var % June 205 on June 203 0 - TPL Land motor vehicles 447 4-8.% -3.5% -3.0% 3 - Land vehicle hulls 54 57 4.2%.8% -9.6% Total Motor 50 467-6.7% -.9% -2.6% - Accident and injury 75 87 4.7% 24.3% 0.0% 2 - Health 34 32-6.2% -29.3% -3.9% 8 - Fire and natural forces 48 50 4.4%.4% -0.5% 9 - Other damage to assets 67 69.6% 0.8% 6.7% 3 - TPL General 72 70-2.6% -6.9% -3.7% 6 - Sundry financial losses 2 2 4.3% 6.2%.4% 7 - Legal protection 7 7-2.9% 4.8% 0.8% 8 - Assistance 5 6 0.9% 4.0% 6.% Other non Motor classes 4 3-3.6% 0.% -0.% Total non Motor 343 355 3.4% 2.9% 0.% Total 844 822-2.6% -6.0% -7.% 0
P&C: technical ratios COMBINED RATIO AVERAGE COST OF MOTOR TPL PAID CLAIM 2 excluding FATA including FATA 9.5% 92.0% 93.4% CSR* AS AT JUNE 204 205 Var. 205/204 Average Cost ( ) CSR* Average Cost ( ) CSR* Average Cost Card G 7.2%,363 72.4%,347.2pps -.2% H204 H205 H205 CLAIMS RATIO excluding FATA including FATA 66.6% 66.0% 67.2% No Card 39.% 2,040 37.0% 2,079-2.0pps.9% Card G & No Card** 63.7%,464 64.7%,444.0pps -.4% (*) Claims Settlement Rate (**) Claims directly managed by the network. Card G claims show a lower causality or incident seriousness compared to No Card claims. TREND OF MOTOR TPL FREQUENCY 2 8.2% 7.7% 7.8% 7.4% G&A H204 H205 H205 EXPENSE RATIO excluding FATA including FATA 23.8% 24.5% 24.9% 6.% 6.5% 6.7% 7.6% 7.7% 6.5% 7.% 6.7% 5.7% Cattolica Group (escluding IBNR) 5.9% 5.7% 5.0% 4.9% 5.48% 5.49% 4.69% 4.65% Commissions 7.7% 8.0% 8.2% Market H204 H205 H205 2007 2008 2009 200 20 202 203 204 H204 Retained business. 2 FATA not included
Group s Agency Network 3.2.204 AGENCY NETWORK The agency network s requalification continued during the first half of 205, through a policy of dimensional strengthening New openings Rationalisations Total 30.06.205 Numero Agenzie,535 +42-46,53 Variazione unità agenzie -4 Tied Agencies AGENCY NETWORK at H205 968 975 n Agencies H205/Q205 +7 The continued development of the agency network reaches,53 units as at June 205 (+7 compared to March 205). 68 800 78 FATA 797 Excluding FATA agencies, the rationalisation in the number of tied agencies continues to 797 units as at June 205 (-3 compared to March 205). Non tied agencies are equal to 556 units as at June 205. Q205 H205 2
Agenda H 205 Results P&C Business Performance Life Business Performance Investments 3
Life premiums LIFE PREMIUMS mln % % Mkt mln Jun5/ Mar205/ -9.9% Jun4 Mar204,837 2,070 2,64 +4.5% +6.%,655 LIFE PREMIUMS BY CLASS 63 +65.9% 433 +7,9% 70 76 H204 H205 H204 H205 H204 H205 H204 H205 Traditional products Linked products Pension funds mln LIFE PREMIUMS BREAKDOWN BY CHANNEL +8.2%,806,669 LIFE PREMIUMS BREAKDOWN BY CHANNEL Agents & Pension adv. 0.0% Other channels 5.4% Brokers.2% - -5.8% -0.9% 27 27 55 26 29 5 H204 H205 H204 H205 H204 H205 H204 H205 Own channels 2 Banks 3 Brokers Other channels Banks & Fin. advisors 83.4% Source: ANIA Trends no.6 (July 205). 2 Agencies and Pension Advisors. 3 Including Financial Advisors. 4
Life new business (all classes) mln LIFE NEW BUSINESS AS AT H205 LIFE N.B. BY CHANNEL AS AT H205 % Jun5/Jun4 % Market Jun205/Jun204 +4.4% +6.3% Additional payments,888 49,972 476 +3.6% Agents 7.2% Other channels.7% Brokers 9.3% New business,469,496 +.9% Banks 8.8% H204 H205 Cattolica Life is included in the broker channel Fonte: ANIA Trends, August 205 5
Life net premiums - traditional classes (I and V) NET CASH FLOWS CLASSES I-V H204 mln mln NET CASH FLOWS CLASSES I-V H205,837,655,00 3% ClassV,70 9% Class V Maturities Claims Redemptions 54% 6% 40% 87% Class I 836 Maturities Claims Redemptions 68% 6% 26% 9% Class I 485 Settlement Costs Gross premiums Net cash flows Settlement Costs Gross Premiums Net cash flows H204 H205 Annualised Indexes Class I Class V Class I Class V PORTFOLIO LAPSE INDEX 5.6% 24.2% 4.9% 29.5% of which CLAIMS INDEX.% -.2% - of which REDEMPTION INDEX 4.9% 0.6% 4.2% 8.3% of which MATURITY INDEX 9.6% 3.7% 9.5% 2.2% 6
Life net premiums Class III NET CASH FLOWS CLASS III H204 mln mln 466 NET CASH FLOWS CLASS III H205 434 Maturities 8% 63 Claims Redemptions 7% 2% Settlement Costs Gross premiums -303 Maturities Claims Redemptions 06 % 6% 73% 328 Net cash flows Settlement Costs Gross Premiums Net cash flows H204 H205 Annualised Indexes Class III Class IIII PORTFOLIO LAPSE INDEX 44.6% 2.6% of which CLAIMS INDEX 2.5% 2.4% of which REDEMPTION INDEX 9.% 8.6% of which MATURITY INDEX 33.% 0.6% 7
Agenda H 205 Results P&C Business Performance Life Business Performance Investments 8
Investments result (Class C) mln 82-25 -9 327 Equity 3.2% Real estate 6.6% 278 264 Credit Risk 23.% Gov. Bonds & Liquidity 67.% Interests & coupons 2 Gains & losses Impairments Investment costs Subsidiaries H205 IFRS Result H204 IFRS Result Including realised gains and mark-to-market profits on investments, different from impairments and depreciation on property. 2 Gross of taxes and of shadow accounting. 9
Investments result (Class C) P&C mln 29-0 -3 63 Equity 2.6% 47 Real estate 7.7% Credit risk 22.7% Gov. Bonds & Liquidity 67.0% Interests & coupons 2 Gains & losses Impairments Investment costs IFRS Result Including realised gains. 2 Gross of taxes. 20
Investments result (Class C) - Life mln 23 53-5 -5 265 Equity 3.3% Real estate 6.3% Credit risk 23.2% Gov. Bonds & Liquidity 67.2% Interests & coupons 2 Gains & losses Impairments Investments costs Subsidiaries IFRS Result Including realised gains and mark-to-market profits on investments, different from impairments and depreciation on property. 2 Gross of taxes and of shadow accounting. 2
Group s Investments breakdown Investments breakdown - H204 Investments breakdown - H205 Short term Gov. Bond Real Estate 3.3% Liquidity.0% 7.2% Equity 2.9% Short term Gov. Bond 6.6% Real Estate 3.5% Liquidity 0.6% Equity 2.7% H204 Credit Risk 8.2% H205 Credit Risk 8.3% 5,06 mln 7,303 mln Long term Gov. Bond 67.4% Long term Gov. Bond 68.3% Class C assets (excluding subsidiaries), H204 figures not including FATA. IAS Financials. 2 Sustainable yield: weighted average of the historical value of the sustainable yields of the positions. Bonds: actual coupon + pro rata trading discount ; Equity: expected dividend yield Sustainable yield 2 : 3.6% 22
P&C Group Investments trend and bond rating classes P&C Investments Breakdown trend Bonds Breakdown by region H205 Short term Gov. Bond Real Estate 6.7% Liquidity.0%.9% Equity 4.% Spain 3.% Ireland 0.5% Other.0% H204 2,569 mln Credit Risk 4.8% Long term Gov. Bond 7.5% Italy 85.4% Short term Gov. Bond 6.7% Real Estate 6.4% H205 3,45 mln Liquidity 0.6% Equity 4.5% Credit Risk 6.9% Bonds rating Breakdown H205 BBB 86.4% <BBB e NR 7.9% A 4.0% Long term Gov. Bond 64.9% AAA 0.5% AA.3% Class C assets (excluding subsidiaries), H204 figures not including FATA. IAS Financials. 2 Sustainable yield: weighted average of the historical value of the sustainable yields of the positions. Bonds: actual coupon + pro rata trading discount ; Equity: expected dividend yield Sustainable yield 2 : 2.65% 23
Life Group Investments trend and bond rating classes Breakdown of Life Investments trend Bonds Breakdown by region H205 Short term Gov. Bond 8.3% Real Estate 2.6% Liquidity.0% Equity 2.7% Spain.0% Ireland.2% Other 9.% H205 Credit Risk 8.9% 2,447 mln Long term Gov. Bond 66.5% Italy 88.6% Short term Gov. Bond 6.5% Real Estate 2,8% H205 3,852 mln Liquidity 0.6% Equity 2.2% Credit Risk 8.7% Bonds rating Breakdown H205 BBB 88.9% <BBB e NR 5.9% A 4.3% Long term Gov. Bond 69.2% AAA 0.4% AA 0.4% Class C assets (excluding subsidiaries), H204 figures not including FATA. IAS Financials. 2 Sustainable yield: weighted average of the historical value of the sustainable yields of the positions. Bonds: actual coupon + pro rata trading discount ; Equity: expected dividend yield Sustainable yield 2 : 3.29% 24
Performance and minimum guaranteed TECHNICAL RESERVE BREAKDOWN FOR MINIMUM GUARANTEED (SEGREGATED FUNDS) YIELD VS MINIMUM GUARANTEED.8% 3.4% H205 94.8%,948 5.0% 204 203 202 20 200 94.3% 92.3% 90.3% 89.5% 88.5% 2.0% 3.7%,394 3.7% 4.0% 9,895 3.8% 5.9% 8,838 4.0% 6.5% 8,757 4.2% 7.3% 8,69 4.5% 4.0% 3.5% 3.0% 2.5% 2.0%.5%.0% 0.5% 3.6%.6% 4.2% 4.2%.5%.3% 3.9% 3.7% 3.6%.2%.%.% 2009 85.0% 5.4% 9.6% 7,27 0.0% 205 206 207 208 209 2020 0 3.000 6.000 9.000 2.000 2,5% >2,5%; <4% 4% mln Group Average yield (segregated funds) Average guaranteed rate (liabilities) 25
Available for Sale reserve trend mln AVAILABLE FOR SALE RESERVE STOCK NET OF SHADOW E TAX 86 98 63 34 8-237 20 202 203 204 H205 3-Jul-205 26
APPENDIX 27
Glossary Ratio Formula Claims Ratio Net claims costs / Net premiums (retained business) Expense Ratio (P&C) Operating expenses / Net premiums (retained business) Combined Ratio (-(Technical result / Net premiums )) (retained business) APE 28
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. 29
Results as at June 30 th 205 Cattolica Assicurazioni Group Verona, August 7 th 205 30