cattolica assicurazioni group · non-insurance companies-1-2-2 ias/ifrs consolidated result 100 106...

Results as at September 30th, 2016Results as at September 30th, 2016Cattolica Assicurazioni Group

Verona, November 11th, 2016

Agenda

Results as at September 30th, 2016Results as at September 30th, 2016

P&C Business PerformanceP&C Business Performance

2

InvestmentsInvestments

Life Business PerformanceLife Business Performance


Results as at September 30th, 2016

€ mln

9M2015 9M2016 Δ %

Total Direct Premiums 4,219 3,482 -17.5%

P&C Direct Premiums 1,423 1,382 -2.9%

Life Direct Premiums 2,796 2,100 -24.9%

IAS/IFRS Results

1

3(1) Including Investments contracts. (2) On retained business. (3) As at December 31st 2015. (4) As at June 30th 2016.

Combined Ratio 92.5% 93.2% 0.7 pps

Consolidated Shareholders'’ Equity 2,159 2,100 -2.7%

Solvency II Ratio 1.88x 1.75x -13 pps

Consolidated Net Result 100 56 -44.0%

Group’s Net Result 84 45 -46.4%

2

3

4

Consolidated Income Statement

€ mln

Group Companies’ contribution to the consolidated result

9M20159M2016

NormalisedImpairments 9M2016

P&C insurance companies 83 84 -15 69

4

Life insurance companies 18 24 -35 -11

Non-insurance companies -1 -2 -2

IAS/IFRS Consolidated Result 100 106 -50 56

IAS/IFRS Group’s Result 84 95 -50 45

2,1592,100

56

-80-24 -11

Shareholders’ Equity

€ mln

1,912

1,861

Group’s

Shareholders

Equity

Group’s

Shareholders

Equity

Cattolica holds approximately 3.2% of its share capital

5

Shareholder’s Equity

FY2015 9M2016 Result Cattolica &

minorities’

dividends

Change in AFS

reserve

Own shares

Shareholders’Equity

9M20161

(1) It includes the changes in shadow accounting (net of tax).

Group’s Solvency II Ratio

€ mln

Solvency II Ratio

1.75x

Standard Formula Solvency II Ratio as at 9M2016

2,035

Tier 2 e Tier 31

8%

6(1) Tier 3 eligible own funds (net prepaid income taxes) equal to about 2% of total own eligible funds(2) Tier 1 “unrestricted” eligible own funds (share capital and capital buffers ) equal to about 88% of total eligible own funds.

Tier 1 2

92%

869

1,166

Eligible own funds Solvency Capital Requirement Excess capital

Agenda



7




P&C Premiums

€ mln

∆ %

9M2016/

9M2015

∆ % Market

1H2016/

1H20151

-1.4%-2.9%

-3.3%-3.3%

Group’s P&C Premiums

-4.4%-4.4%

P&C Premiums Breakdown by Class

812 785

1,4231,382

Motor

Motor TPL

49.9%

Land vehicles hulls

6.9%Accident and Injury

9.2%

Other damage

11.5%

General TPL

8.2%

Fire and natural forces

5.8%Health

2.7%Other

5.8%

to assets

8

P&C Premiums Breakdown by Channel

-3.3%-3.3%

-2.4%-2.4% +2.1%+2.1%

-4.4%-4.4%

(1) Source: ANIA Trends newsletter. Anno XII n.7 (September 2016).

611 597

785

9M2015 9M2016

Motor

Non

Motor

2.7%5.8%

Other channels

1.5%

Agencies

92.6%

Banks

3.1%Brokers

2.8%

P&C: Technical Ratios

Claims Ratio1Combined Ratio1

92.5% 93.2%

65.7% 65.8%

9M2015 9M2016

9(1) On retained business.

Expense Ratio1

9M2015 9M2016

18.7% 18.9%

6.7% 6.8%

25.4% 25.7%

9M2015 9M2016

G&A

Commissions

P&C: Motor T.P.L. Technical Ratios

Motor T.P.L. policies

AS AT SEPTEMBER

2015 2016 ∆ 2016/2015

Claims Settlement

Rate

Average Cost(€)

Claims Settlement

Rate

Average Cost(€)

Claims Settlement

Rate

Average Cost(€)

Card G* 79.2% 1,418 78.8% 1,414 -0.4 -0.3%

No Card* 48.6% 2,157 47.7% 2,061 -0.9 -4.5%

Card G & No Card 71.7% 1,548 71.5% 1,527 -0.2 -1.4%

∆ compared with FY2015

Motor Premiums and Policies

+2.0%+2.0% Motor T.P.L. Frequency Trend1

Average Cost of Motor T.P.L. Paid Claims

(*) Claims directly managed by the network . Card G claims show a lower causality or incident seriousness compared to No Card claims.

10

+63,189 units

-3.7%-3.7%

Average Motor Premium

+2.0%+2.0%

As at October 2016

Motor T.P.L. Frequency Trend1

2

(1) FATA excluded.(2) Source: “ANIA Relazione Mercato Assicurativo” until 2015. 2016 is a projection based on “statistica rapida ANIA” at June 2016.

8.2%7.7%

7.1%6.7%

5.7%

5.0% 4.9%4.7% 4.7% 4.7%

7.6% 7.7%

7.8%

7.4%

6.5%

5.9%5.7% 5.5% 5.6% 5.6%

2007 2008 2009 2010 2011 2012 2013 2014 2015 9M2016

Cattolica Group (excluding IBNR)

Market(excluding IBNR)

Agenda



11




Life Premiums

Life Premiums Life Premiums by Class

- %-24.9% -8.9%

€ mln € mln

Traditional products Linked products Pension funds

-23.7%-23.7%

-35.5%-35.5%+6.0%+6.0%

∆ %

9M2016/

9M2015

∆ % Market

1H2016/

1H20151

2,796

2,100

9M2015 9M2016

2,152

1,641

537 346

107 113

9M2015 9M2016 9M2015 9M2016 9M2015 9M2016

12

307 317

2,092

1,567

20042

197 174

9M2015 9M2016 9M2015 9M2016 9M2015 9M2016 9M2015 9M2016

(1) Source: ANIA Trends newsletter. Anno XII n.7 (September 2016). (2) Agents and Pension Advisors. (3) Including Financial advisors. (4) Including Cattolica Life.

Life Premiums by Class Life Premiums by Channel

Own channels2 OtherBrokers 4Banks 3

+3.3%+3.3%

-25.1%-25.1%

-79.0%-79.0% -11.8%-11.8%

€ mln

9M2015 9M2016

Traditional products Linked products Pension funds9M2015 9M2016

Class I,

IV and V

77.0%

Class III

and VI

23.0%

Class I,

IV and V

78.1%

Class III

and VI

21.9%

639

589

2,533

1,850

Additional

payments

Life New Business

Life New Business by Channel

∆ %

9M2016/

9M2015

-27.0%

€ mln

Life New Business

-11.7%

∆ % Mercato

Sept.2016/

Sept.2015 1 Agents

11.8% Brokers

0.5%

Other channels

2.7%

13

1,894

1,261

589

9M2015 9M2016

New

business

-7.8%-7.8%

-33.4%-33.4%

(1) Source: ANIA Trends life new business. Anno XII n.9 (October 2016).

Banks

85.0%

Class I91%

-1,592

560

Class V 9%

66%

2,152

6%

28%

Gross Premiums Total costs Net inflow

Life Net Premiums

Net Inflows Classes I & V

9M2015 9M2016€ mln

Redemptions

Claims

Maturities

Redemptions

Claims

Maturities

Class I91%

-1,357

285

Class V 9%

52%

1,642

11%

37%


14


9M2015 9M2016€ mln

Net Inflows Class III


Redemptions

Claims

Maturities

537

-192

34531%

7%

62%


Redemptions

Claims

Maturities

347

-286

612%

5%

93%

Gross Premiums Total costs Net inflows

Life net bancassurance premiums with BPVi

Berica Vita1

9M2015 9M2016€ mln

Redemptions

Claims

Maturities

-285 -17

77%

268

6%

17%

Gross premiums Total costs Net inflow

Redemptions

Claims

Maturities

-156

46%

111

17%

37%

-267


15

9M2015 9M2016€ mln

Cattolica Life1

Gross premiums Total costs Net inflow Gross premiums Total costs Net inflow

Redemptions

Claims

Maturities

Redemptions

Claims

Maturities

26

-187

97%

1%2%

-213


178

-131

4741%

4%

55%


(1) Figures are only related to the distribution channels of Banca Popolare di Vicenza and Banca Nuova.

Agenda


P&C Business Performance P&C Business Performance

16



P&C Business Performance P&C Business Performance

387

411

356

38

-14

-55

Investments Result

Property6.9%

Equity2.6%

CreditRisk

€ mln

17

Net interests and

coupons

Gains & losses Investment

costs

Result before

impairments

Impairments &

write-downs

IFRS Result as at

9M2016

1

(1) Including realised gains and mark-to-market profits on investments, different from impairments and depreciation on property.

Risk24.1%

Gov. Bonds and

Liquidity 66.4%

59

83

67

29

-5

-16

Investments Result – P&C

€ mln

Equity

18

Net interests and

coupons


costs

Result before

impairments

Impairments &

write-downs

IFRS Result as at

9M2016

(1) Including realised gains/losses.

Property12.2%

Equity4.6%

Credit risk26.1%

Gov. Bonds and

Liquidity 57.1%

1

328

289

9328

-9

-39

Investments Result – Life

€ mln

Property 5.9%

Equity2.2%

Credit risk23.7%

19

Net interests and

coupons


costs

Result before

impairments

Impairments &

write-downs

IFRS Result as at

9M2016

Gov. Bonds and

Liquidity 68.2%

1

2

(1) Including realised gains/losses and depreciation on property. (2) Including other expenses on investments not attributable directly to the life business for about € 1 mln.

Group’s Asset Allocation Trend

Investments Breakdown1

Property

3.4%

Short term Gov. Bonds

7.8%

Liquidity

0.5%

Equity

2,4%

9M2015

Property

4.6%

Short term Gov. Bonds

8.1%

Liquidity

0.2%

Equity

2.5%

9M2016

20(1) Class C assets (excluding subsidiaries) as at September 30th. 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 yield2: 2.84%Sustainable yield2: 2.84%

Long term Gov. Bonds

67.7%

Credit risk18.2%

9M2015

€ 17,253 mln

Long term Gov. Bonds

66.7%

Credit risk17.9%

9M2016

€ 18,625 mln

Investment – Real estate fund ″Mercury″

• Subscription of 51% of the Italian reserved closed-end Real Estate Fund – MercuryProperty

• Real Estate Fund value: € 300 million

• 66 buildings – for retail use (mostly supermarkets)

• 18 and 24-year lease contracts (Fund duration: 20 years)

• Net financial debt: € 165 million (leverage 55%)

Characteristics

• Three regional CONAD consortia (Tirreno, Adriatico, Centronord). They hold 49% of the Fund equity. Fund Contributors

• Savills Investment Management SGRFund Manager

Renters

Investment • About € 69 million (divided for the three sectors)

• Regional consortia subleasing to the store managers

21

Renters

Fund profitability • 8.25% 1

Strategy • The investment is diversified both by asset and by location (in 9 Italian regions). The assets have been selected among the

most performing ones. Important (bank and corporate) guarantees make the Fund stable on the side of profitability. The

plan for disposal includes a call on portfolio properties in favor of contributors.

• Regional consortia subleasing to the store managers

Governance • Cattolica: 2 on 3 members in advisory committees and general meetings (of each sector).

(1) Shareholder's annual distribution equivalent.

Performance and Minimum Guaranteed

Technical Reserve Breakdown for

Minimum Guaranteed (Segregated

Funds)

+221pps

Yield v.s. Minimum Guaranteed (2016)

3.45%

29.9%

34.3%

37.5%

41.0%

65.1%

60.8%

57.8%

54.3%

1.8%

1.7%

1.7%

1.6%

1.6%

3.2%

3.3%

3.2%

3.1%

3.1%

12,156

12,268

12,444

12,660

FY2015

1Q2016

1H2016

9M2016

22

≤ 1% 2,5% < < 4%1% < ≤ 2,5% ≥ 4%1% < ≤ 2,5%

1.24%

Average Yield

(Segregated Funds)

Average guaranteed rate

(Liablilities)

7.2%

9.5%

12.3%

17.0%

21.8%

26.0%

86.5%

84.8%

82.0%

77.6%

72.9%

69.1%

2.2%

2.0%

2.0%

1.9%

1.9%

1.8%

4.1%

3.7%

3.7%

3.5%

3.4%

3.2%

10,835

11,167

11,394

11,686

11,948

12,093

1H2014

9M2014

FY2014

1Q2015

1H2015

9M2015

Available for Sale Reserve Trend

€ mln

1,260 1,2691,348

1,086

Gross of shadow and taxes

Net of shadow and taxes

23

-888

180

458

-237

86 98162 131 108 83

FY2011 FY2012 FY2013 FY2014 FY2015 9M2016 Nov- 3rd 2016

24

APPENDIX

Glossary

Ratio Formula

Net claims costs / Net premiums (retained business)Claims Ratio

Operating expenses / Net premiums (retained business)Expense Ratio (P&C)

25

(1-(Technical result / Net premiums )) (retained business)Combined Ratio

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

DISCLAIMER

26

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.

cattolica assicurazioni group · non-insurance companies-1-2-2 ias/ifrs consolidated result 100 106...

Documents