1Cattolica Group

Cattolica Group:Strategic Opportunities and Capital Management

UBSThe Italian Financial Services Conference 2006

Capital allocation and strategic opportunitiesfor Italian Financials

Milan, 2nd February 2006

Giulio Fezzi - Chief Financial Officer and IR ManagerAndrea Battista - General Manager Duomo Assicurazioni and IR

2Cattolica Group

Agenda

n Cattolica Group at a glance

n Strategic framework and strategy implementation

n Capital and risk management

n Business growth and value creation

n Attachments

3Cattolica Group

Agenda

n Cattolica Group at a glance

n Strategic framework and strategy implementation

n Capital and risk management

n Business growth and value creation

n Attachments

4Cattolica Group

n The Parent Company is a co-operative legal-entity structure, operating in the life and non-life insurance businesses in Italy

n Today the Group consists of 22 companies, including 14 insurance companies

n Insurance subsidiaries of the Parent Company, include:

• 8 life insurance companies (Duomo Previdenza, Risparmio & Previdenza, BPV Vita, Lombarda Vita, Eurosav, Axa-Cattolica Previdenza in Azienda, San Miniato Previdenza, Persona Life)

• 5 non-life insurance companies (Il Duomo Assicurazioni, ABC Assicura, Cattolica Aziende, Tua Assicurazioni, UniOne Assicurazioni)

n Other Group companies consist of two real-estate companies, four service companies, one asset management company and one retail-brokerage (Fas) company

Cattolica Group

5Cattolica Group

Cattolica Group brands and companiesHISTORICAL PHASES

Cattolica Group Evolution

(1) Planned

1896 1976BIRTH CONS. GROUP DEVELOPMENT

1994 20042000 2002 2003‘98‘95‘97

2001 2005

Premiums (Euro mln) 373 2,768 3,731 4,803 (1)

Listing

2006

6Cattolica Group

Group Market Share trend

Group Market Share (2002 - 2004; Italian direct business)

Sources: Estimates on Cattolica Group reports and ANIA data

3.8%4.0% 4.0%

4.5% 4.5%

4.9%

4.2%4.3%

4.5%

2002 2003 2004

Non-life Life Total market share

2004

• FonSAI• Generali• Allianz• Unipol• Toro• R. Mutua• Cattolica• Zurich • Axa Italia• Sara

• Generali• Allianz• AIP• Unipol• Poste V.• Cattolica• Aviva• FonSAI• MPS• Mediolan.

• Generali• Allianz• Unipol• FonSAI• AIP• Cattolica• Poste V.• Aviva• Toro• MPS

Non-life Life Total

7

6 6

5 thtraditional insurance

Italian Group

7Cattolica Group

Business mix: Cattolica Group and the Market

MARKET 30.09.2005 CATTOLICA GROUP 30.09.2005

Non-Life32.1%

Non-Life27.2%

Life67.9%

Life72.8%

Total Total

Non-Life

Life

Non-Life

Life

Motor TPL52.8%

Other47.2%

Motor TPL60.2%

Other39.8%

Index and Unit36.1%

Traditional63.9%

Traditional51.1%

Index and Unit48.9%

Source: Isvap data – direct business premiums

8Cattolica Group

Agenda

n Cattolica Group at a glance

n Strategic framework and strategy implementation

n Capital and risk management

n Business growth and value creation

n Attachments

9Cattolica Group

Mission and strategic objectives continued

Architettura industriale focalizzata, integrata e aperta

Crescita organica

Crescita per linee esterne

sul core business assicurativo, proseguendo nel consolidamento dei business attuali ed avviando nuovi percorsi di crescita

Focus integrated, openIndustrial architecture

Crescita organicaOrganicgrowth

Crescita per linee esterne

Externalgrowth

STRATEGIC PATHS

MISSION

Consolidate the insurance

business model

Integrated development of

financial services

Service centralisation and cost optimization

Strengthen controllership

Develop current business

Develop new markets, products,

channels

Accelerate development

Strategic objectives

… focus on insurance core business, consolidating current businesses and implementing new growth strategies through flexible development methods

10Cattolica Group

Details on strategy and key assumptions

nConsolidation of organization structure, insurance brands and corporate culture with a focused, integrated and open business architecture

- Strengthening parent company controls by controlling strategic processes using improved support tools (planning and control, Internal Audit, Organization & HR, new Program Management structure, Group Finance)

- Insurance business model consolidation with reorganization of technical areas, enabled by the new, enhanced non -life platform

- Integrated development of financial and asset management

- Completing integration of operating processes and procedures

nOrganic growth: research and development of internal growth initiatives, building on the existing business strengths

- Expansion of existing businesses, through distribution channel development and diversification

- Identification and entrance into new markets, products and channels: implementation and finalization of new initiatives like “Tua Assicurazioni” and “Axa – Cattolica Previdenza in Azienda”

- Assure the development of non-life bancassurance distribution

- Reentry/development of multi- mandatory agent distribution: from Eurosav to Persona Life

- Nurture the innovation culture as a growth driver for testing new products and market segments: Pension Center of Excellence, new health product development - from simple to LTC coverage

nExternal growth- Formalized process for screening and developing proposals for potential acquisitions (Corporate Development team)

July 2005 – UniOne acquisition

11Cattolica Group

Internal Reorganization: the path to a focused, integrated, open business architecture

Central Management

Fina

ncia

l Ser

vice

s

Operational services

Insurance Business

– Group Risk Management and ALM– Group Planning and Control– Group Internal Audit– Group Organization & HR– Group Actuarial Control– Group Reinsurance– Group Corporate Development

structure and Group integration

– Centralized Treasury services

– Group Asset Management

– Real Estate Management Company

– Integrated financial product distribution

Current Status

– Centralized claims management

– Centralized purchasing department (Co.CeA)

– IT Service Company (new processes)

– Centralized Administrative Services

“Specific” focus on

insurance life and non-life

business

12Cattolica Group

Organic growth: multi-channel developmentB

USI

NES

S/SE

RVI

CE

LIN

ES

Tied agents Banks Brokers Other channels

CHANNELS

Non-Life

Life

Financial services and asset management

• Agency network develop-ment

• Product and channel innova-tion (TUA)

• Retail segment

• Selective corporate expansion

• Focus on profitability

• Penetration on preferred segments

• Social security

• Expansion of parent company units for direct assumption of corporate risks

• Private retail segment• Standard products• JV with BPVN and other

business/ partnerships agreements (OnLineDivision)

• “Flexible” confirmation of the JV model

• Protection/development of strategic commercial contracts

• Product and segment innovation

• Re-launch of Cattolica Aziende

• Focus and selection of middle size, high-contribu-tionbrokers

• Axa-Cattolica

• Middle company segment (B2B2E)

• Direct channel for corporate contracts

• Development of “preferred multi-mandatory” distribution

• FAs working inside agencies: Cattolica Investimenti SIM

• Cross-selling at sales outlets

• Banking partnerships to increase multi-bank financial products with specific proprietary brands

• Development of Cattolica Investimenti SIM model• Institutional Asset management: Verona Gestioni

SGR

13Cattolica Group

Agencies network development

Agency network development(1999 - 2003; no. agencies)

Proprietary agency network

546

900 974 1,024 1,049

1999 2000 2001 2002 2003

1,092

709

364

19

2004

+4,1%+4,1%

1,357

2005

382

732

187

56

+24.3%

Multi-mandatory agency network (number of agencies)

138 Eurosav multi-mandatory agencies as at 31 December 2005, which will sell non-life products starting in 2006.

2007E

1,523

14Cattolica Group

Bancassurance consolidation

Cattolica Group bank branches distribution:

2,885 branches Market share of 9.3% in Italy

1474

191574

17168

6623

291648

6511

65

38

371 (6.0%)

461 (6.6%)

2.053 (11.4%)

December 2005Renewal until 2010 of Cattolica and Banca Lombarda agreementBusiness and commercial agreement

Cattolica Group insurance products will continue to be sold via the 796 bank branches and 578 Financial advisors of Banca Lombarda

Confirmation of Lombarda Vita activity: the joint-venture founded in 2000, 50.1% owned by Cattolica and 49.9 by Banca Lombarda

Non-life bancassurance - During 2006 a new joint-venture with Banca Lombarda Group will be set up for the sale of non-life products through the bank partner’s distribution network

15Cattolica Group

Non-Life Bancassurance development

A strategic opportunity in Italian Market

Mission: – Meet the increasing demand for Non-Life insurance from the

family segment– Use the commercial and operative synergies between the

insurance and banking partners– Guarantee customers consultancy services suitable to

different needs

Cattolica Group Non-Life Bancassurance development: maximise competitive advantage and optimise the

combination of Life Bancassurance experiences and Non-Life technical skills

In first months 2006 start-up of the new 50/50 JV with the Group BancoPopolare di Verona e Novara

Extend Non-Life Insurance activities to other Banking GroupsConsolidate the operations of the Cattolica Online Division (development of the agreement with ICCREA)Products: Motor TPL, fire, theft, simple general TPL, injury and healthTarget: Bank retail customersAssistance: dedicated call centerClaims settlement managed directly by Cattolica structure

In Italy Bancassurance business in the non-life sector is poorly developed, with a share of just 1%, whilst market share turns out higher in other European countries: in Germany it is 5%, in the Netherlands and France it is 8%

16Cattolica Group

UniOne acquisition

n Relative young company, born in 1984, from 2000 in Generali Group

n Agency network focused on P&C business, based most of them in middle and south Italy

n Motor Transportation business is 86% of total premiums

n Claims settlement network complementary to existing Cattolica network

n High potential in life business which is a recent start-up

100%

UniOne history Ongoing process: activities’ integration at Group level with utilization of services from the Parent Company

End 2005 – UniOne Vita integration into Duomo Previdenza and following “multi-mandatory agencies” branch of business transfer from Eurosav to UniOne Vita

Persona Life birth: UniOne Vita new denomination; the first Group company dedicated to multi-mandatory agency network

Restructuring and Integration process

17Cattolica Group

Persona Life: development towards “preferred multimandatory pole”

Cattolica Group first dedicated company for the multi-mandatory agency network in line with the “preferred multi-mandatory” modelProgressively concentrate Group agents in the new specialised multi-mandatory poleTarget: Main focus on central-southern Italian marketProducts: Innovative and flexible life products portfolio. In 2006 non-life products distribution will be implementedCross selling towards non-life products

Persona Life birth

Set up a Cattolica Group Pole for “preferred multi-mandatory” distribution (see the French experience)

TARGET

100%

99.9% 100%

Branch of business transfer

100%

100%

Branch of business “Multi-mandatory agents”

Branch of business transfer Branch of

business transfer

Persona Life Mission

Completed processOngoing process

18Cattolica Group

Agenda

n Cattolica Group at a glance

n Strategic framework and strategy implementation

n Capital and risk management

n Business growth and value creation

n Attachments

19Cattolica Group

Rating on Cattolica: “excellent risk-adjusted capitalisation”

A Excellent

Stable outlook

NOTE

Aq Strong

Quantitative – Insurer Financial Strength

NOTE

ApiPublic Information

NOTE

Strong

The rating reflects Cattolica’sprospective excellent risk-adjusted capitalisation, excellentoperating performance and distinctive business position in the Italian Market

The rating reflects very strongcapitalisation and strongearnings.

The rating reflects strong capacity to meet policyholder and contract obligations. Risk factors are moderate, and their impact of any adverse business and economic factors is expected to be small

20Cattolica Group

Cattolica Group towards a integrated internal risk control system

Financial risks

Insurance business

risks

Operational risks

Integrated risk management

control system

Cattolica Group attitude

Cattolica has acknowledged the existing European Union and Isvap regulations and is starting to develop its own risk capital model in order to:identify and reduce absorption of capital, required by its insurance, financial and operational activitiesachieve more efficient use of excess capital

Implementation of an adequate and integrated internal organisational structure for the development of quantitative models to evaluate and measure risks at all levels

Objectives:

- Market risk- Credit risk- Liquidity risk

- Underwriting- Technical provisions

- Legal risks- Reputation risk- Operational risks

21Cattolica Group

Proactive Risk Management Process

Proactive risk management based

upon three main principles:

Limited Portfolio Risk1. Well diversified by asset type,sector and issuer2. Conservative, liquid, high quality portfolio with a 3.3%* allocation to

non-investment grade bonds3. Equity securities limited to 0.91%* of class C investment

Limited Portfolio Risk1. Well diversified by asset type,sector and issuer2. Conservative, liquid, high quality portfolio with a 3.3%* allocation to

non-investment grade bonds3. Equity securities limited to 0.91%* of class C investment

* End 2004

Disciplined approach to assessing and prioritizing risk and return tradeoffs

Disciplined approach to assessing and prioritizing risk and return tradeoffs

Well-established, comprehensive,coordinated process across the financial organisation

Well-established, comprehensive,coordinated process across the financial organisation

Current risk management priorities:

Better interest rate risk management and improved product level risk return decisions by developing a flexible financial database covering class C and class D portfolios

Better interest rate risk management and improved product level risk return decisions by developing a flexible financial database covering class C and class D portfolios

Selection of new risk management/investments technology platform

Selection of new risk management/investments technology platform

Implementation of ALM for non-life businessImplementation of ALM for non-life business

22Cattolica Group

Risk Management map

Risk managementRisks

Market risk

Default risk

Counterparty risk

Liquidity risk

“Investment guidelines”: document approved by the Board of Directors which defines the guidelines for the investment of assets guaranteeing the technical reserves and of net shareholders’ equityFinance Committee and ALM Committee held once a monthFormal Process for selecting external asset managersOngoing monitoring of compliance with investment guidelines by the asset managers and Implementation of strategies decided by the Finance and ALM Committees monitored on an ongoing basis

Broad portfolio diversification focused primarily in highly rated bonds in compliance with limits defined in the “Investment guidelines” (maximum investment in a single issuer - 5% of total investments)Investment reporting broken down by rating and sectors to monitor riskManagement of “fallen angels”: FINCO proposes the retention or sale of the position to the Board of Directors which retains the final decision and approval authority

Selection of market counterparties regulated by the “Investment guidelines”- approval of Board of Directors requiredDiversification of market counterparties

Broadly diversified investmentsHighly rated bonds preferredCriteria set in the “Investment guidelines”

23Cattolica Group

• 1 year earning at risk projection

• 5 year confidence interval of earnings

• Annual cash flow testing

• Liquidity is managed at group level in order to ensure maximum flexibility

• High yield investments are limited in order to limit liquidity and credit default risk (in accordance to Investment Guidelines)

• Internal stress tests show Cattolica has ample liquidity to comfortably manage through a severe stress scenario

• Senior management is constantly informed of risks• Communication occurs at the Asset Liability Management Committee

(ALCO) and Finance Committee (FINCO) levels• Reporting

Investment Management Tied to Risk Management and ALM

Investment Management closely aligned with the Risk Management and ALM processes

Management of Interest Rate Risk is an ongoing process

Liquidity Management is a core issue

Risk is measured and communicated regularly

is a core issue

24Cattolica Group

Agenda

n Cattolica Group at a glance

n Strategic framework and strategy implementation

n Capital and risk management

n Business growth and value creation

n Attachments

25Cattolica Group

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Growth and Value Performance

Focus on Value

Focus on Value

Focus on Growth

Focus on Growth

Index value = 1

BUSINESS PLAN 2005|2007

Business Plan 2005-2007 estimates a balanced mix of growth and value for the next 3 years

Index focused on growth and value performanceIndex=Group net profit growth rate/ Consolidated premiums growth rate (1995-2007E)

Listing

More focus on VALUE in combination with

positive growth

26Cattolica Group

525 7561,053 1,267 1,392

917

2,012

2,2982,464

2,820

1999 2000 2001 2002 2003

Development of consolidated premiums

1,442

2,768

3,3513,731

4,212

2004

1,420

3,197

4,617

Gross Consolidated Premiums Direct and indirect business

(1999 - 2003; Euro mn)

2004 Result

73%64% 69% 66% 67%Non-lifeLife

Breakdown

27%36% 31% 34% 33%

Life

Non-life(*)

69%

31%

CAGR99/04

26%26%

(*) With the inclusion of indirect business (**) Only direct business

2007E

2,010

3,499

5,510

64%

36%

2007 Target

28%28%

22%22%

CAGR04/07

6%6%

3%3%

12%12%

+9.6%+9.6%

+13.4%+13.4%

+2.5%**+2.5%**

Change % 2004/ 2003

MKT 10%

MKT 13%

MKT 6%

Note: Business Plan Italian GAAP

27Cattolica Group

Technical profitability

Non-life combined ratio trend(1999 - 2003; %)

2004 Result 2007 Target

94.5%

2007E

97.5%

20041999 2000 2001 2002 2003

104.2%

98.9%

101.3%

98.5%100.6%

28Cattolica Group

Development of consolidated net profit

Consolidated net profit 1999-2003( Euro mn)

26

4753

63

125

1999 2000 2001 2002 2003

Group net profit (*) 25 44 46 57 116

2004

150

136

2004 ResultCAGR99/04

2007 TargetCAGR04/07

2007E

176

162

42%42%5,5%5,5%

+19.6%+19.6%

40%40% 6%6%+17.1%+17.1%

29Cattolica Group

3rd Q 2005 Key numbers

(1) Net of taxes and minority interests

Legend:

Technical ResultTechnical Result

Non-life Life

Figures in € mlnChange 30.09.04-30.09.05

Gross PremiumsGross Premiums

2,308

1,0831,023

2,849

30.09.2004 31.12.2005E*

3,3313,93218%18%

Non-life Life

98.02%96.93%

Non-life combined ratioNon-life combined ratio

30.09.2004 30.09.2005

1,564

3,239

4,803

30.09.2005

1831

47

5165

26.2%26.2% 82

30.09.2004 31.12.2005E*

62

98

36

30.09.2004

97.2%

31.12.2005E*

Net ordinary resultNet ordinary result

105

14639.1%39.1%

30.09.2004 30.09.2005

165

31.12.2005E*

85894.7%4.7%

Net profit (1)Net profit (1)

30.09.2004 30.09.2005

126

31.12.2005E*

9210311%11%

Consolidated net result Consolidated net result

30.09.2004 30.09.2005

138

31.12.2005E*

*Cattolica Group Business Plan 2005-2007 - Italian GAAP

30Cattolica Group

Development of dividend per share

2000 2001 2002 2003

Pay-out (Euro mln)

Other indicators

30 43 48

0.70

1.00 1.001.02

Dividend per share(1999-2003; Euro)

0.78

0.22

Dividend yield(1) 2.28% 3.60% 4.59% 3.50%

43(**)

Extraordinarydividend

1 free share for every 10

1999

0.62

17

n.a.

Dividend 2004

2004

1.35

64,0

3.75%(***)

Cattolica dividend policy is consistent with the 3-year plan value creation program

+32,4%+32,4%

CAGR99/04

17%17%

30%30%Pay-out ratio (*) 76.5% 72.4%(3) 78.3%77.1 %(2)71.7% 60.2%

Fonti: Cattolica – Bilancio d’esercizio 2003 – Analisi interne(1) Dividend yield: Dividend per share/Official price of last day of the year (2) With the inclusion of extraordinary dividend(3) Pay out, net of property transfer (*) Pay-out at Parent Company level

(***) Calculated on a price per share of € 36

31Cattolica Group

Cattolica stock performance in 2005-2006

Source: Bloomberg

PERFORMANCE 2005-2006as at 31 January 2006

Cattolica +32.73%

MIB INS.

Mibtel

S&P/MIB

+17.72%

+18.22%

+17.55%

Change % 01/01/2005-31/01/2006

01/01/2005

Cattolica S&P/MIBMIB INS. MIBTEL

31/01/2006

Stock performance in comparison with the main indexes

32Cattolica Group

Agenda

n Cattolica Group at a glance

n Strategic framework and strategy implementation

n Focus on growth and value creation

n Capital Allocation

n Attachments

33Cattolica Group

Focused, integrated, open business architecture

Characteristics

Focused: each unit must focus its activities on its own objectives

Integrated: common, standardised, optimised, measurable mechanisms of interaction between the various structures

Open: organisational framework consolidates existing functions while enabling integration of new businesses

Business Architecture

Central Management

Fina

ncia

l Ser

vice

s

Operational services

Insurance Business

Nuova San Zeno Imm.

– Group finance – Claims– Administrative

Back Offices– General

Services

Verona Servizi

Non - life Life

(*) Joint control with AXA Italia

(*)

34Cattolica Group

Major initiatives

n Risk management and ALM- Formalized ALM process for life companies,- Developing ALM model for non-life companies- Establishing Financial Risk management structure

n Group Services in placen Actuarial Control: group-wide guidelines on tariffs

Financial Services

Operational Services

Central management

n Group Finance Dept (2002)n Dedicated Asset Management Company (Verona Gestioni SGR, 2003)n Investment advisory company (Cattolica Investimenti, 2004)n Real Estate Management Company (2002)

n Claims management- Set up of a centralized function of claims management- Centralized claims call center DiCa handles all claim reporting and

manages simple claimsCost Control:centralized purchasing dept. (CoCeA, April 2005)Cattolica It Services (January 2005)Centralized Administrative Services: definition of a Group Administrative Dept. 2006, implementation 2006/2007

35Cattolica Group

Non-life business

Premiums

1,001

(Direct business - Euro mn)

1,064

2003

30.09.2004 30.09.2005 2004

1,398

+6.3%+6.3%

Agents92.3%

Other5.2%

Broker1.2%

Banks1.3%

Growth in agency networK− 1,333 proprietary agencies− 140 Eurosav multi-mandatory agencies

New structures for selecting and supporting new agentsSpecial projects − Agency segmentation based on performance− Service Partners and Club Best agencies− Regional and local projects

Premiums breakdown by channel Premiums growth by channel(Direct business - Euro mn)

30.09.2004 30.09.2005

Agencies + 4.3%

Broker + 8.3%

Banks + 100%

Other + 37.5%

942 982

127

40131455

36Cattolica Group

Life business

Premiums

2,308

(Direct business - Euro mn)

2,849

30.09.2004 30.09.2005 2004

3,197

+23.4%+23.4%

Banks84.7%

Agencies5.2 %

Other7.2%

FAs1.6%

Broker1.3%

Premiums growth by channel(Direct business - Euro mn)

30.09.2004 30.09.2005

Life premiums include investments contracts for an amount of € 298 millionCometa pension fund collected € 94.4 million premiums. In the first 5 months Cometa registered a 4% (annualized) performance. Subscribers are almost 36,000

Banks + 13.3%

FAs + 275%

Agencies + 8%

Other + 792.6%

2,1312,414

1213827

45149241

37Cattolica Group

Life new business premiums

Premiums

2,170

(Euro mn) 2,708

30.09.2004 30.09.2005 2004

2,981

+24.8%+24.8%

Premiums mix by type of product(Euro mn)

30.09.2004 30.09.2005

46.3%

11.4%

42.3%

Index

Unit

Traditional

34.1%

17%

12.8%48.9%

Breakdown by channel (Euro mn)

+20.6%+20.6%

+13.8%+13.8%

82

2,350

68

1.485

7544

4444

Agents

2,066

Banks

FAs/other

276

37

+646%+646%

30.09. 2004

30.09.2004

30.09.2004

30.09. 2005

30.09.2005

30.09.2005

38Cattolica Group

Investment Spread over Guaranteed Rates

Technical reserves breakdown by financial guarantee

Traditional products

<= 2.5% > 2.5% e < 4% >= 4%

Financial guarantee

6,487

5,487

(Euro mn)

30.09. 2005

69.4%

61.5%

10.6%

12.1%

20%

26.4%2004

+ 33.5%+ 33.5% + 3.9%+ 3.9% - 10.6%- 10.6%

Group average yield and average guaranteed rate

2003A 2004A 2005E 2007E2006E

3.57%

Group average yield (Segregated funds)

Average guaranteed rate (Liabilities)

3.65%

3.62%

3.45%

3.54%

3.06% 2.98%2.70%

2.65%

2.61%

39Cattolica Group

Core business: technical performance

Non-life businessPremiums stable; focus on profitability with an increase of 72.2%Expense ratio down to 19.21% from 19.54% in 3rd Q2004 and claims ratio decreases from 76.37% as at 3rd Q2004 to 75.55% as at 3rd Q 2005

Life Business:Strong premiums increase (+23.4%); technical result +8.5%

18

Non-Life technical result(Euro mn) 31

30.09.2004 30.09.2005 2004

30

+72.2%+72.2%

Combined ratio

98.02%96.93%

30.09.2004 30.09.2005 2004

97.5%47

Life technical result(Euro mn)

30.09.2004 30.09.2005 2004

59

51+8.5%+8.5%

40Cattolica Group

Non-technical account

200

Net Investment income(Euro mn)

221

30.09.2004 30.09.2005 2004

260

+10.5%+10.5%

Financial performance increase despite low interest rates environmentConstant increase of ordinary resultLower incidence of extraordinary income deriving from real estate reorganization, even if property assets transfer is still ongoing

105

Net ordinary result(Euro mn)

146

30.09.2004 30.09.2005 2004

140

+39.1%+39.1% 54

Net extraordinary result(Euro mn)

26

30.09.2004 30.09.2005 2004

80

-51.9%-51.9%

41Cattolica Group

Development of consolidated technical results

Non-life business

12

(Euro mn)

30

Life business

2003

58

(Euro mn)

59

Change % 2003-2004

Total technical result(Euro mn)

2003 2004

7189

2003 2004 2007E

93

170

2003 2004 2007E

77

+24%+24%

+46%+46%

+9%+9%

CAGR 04/07

2007E

+148%+148%

+1%+1%

+26%+26%

42Cattolica Group

Economic / financial ratios

Non-life claims ratio(%)

Combined ratio(%)

Non-life expense ratio(%)

Life expense ratio (1)(%)

2003 2004 2007E

0.22%0.17%

0.20%

(1) Other life administrative expenses / gross average life technical reserves

2003 2004 2007E

19.2%19.8% 20.0%

2003 2004 2007E

78.2%75.2%

72.9%

2003 2004 2007E

98.9%97.5%

94.5%

43Cattolica Group

Embedded Value as at 31 December 2004

1,228

1,0341,067

(33)

194

Sources: Internal Analyses

Group Embedded Value 2004 (Euro mn)

Shareholders’equity

Adjustments N.A.V. EmbeddedValue

1,177984979 5 193

1,2281,0341,067 (33) 194

+ 51+ 50+ 88 (38) + 1

2003

2004

Delta

EV/Share (€)

24.8

25.9

+ 1.1

Variazione 2004/ 2003

Note: 2004 figure is pre distribution of dividends. 50%Eurosav. All components are net of : taxes, reinsurance, policyholders’ interests and minorities

Value of life in force

business

44Cattolica Group

Embedded Value Assumptions

7.25%

4.5%

Variables

100% ISVAP Minimum

38.25%

Discount Rate

Life Products Investment Return

Solvency Margin

Taxation on Profit

AssumptionVariable

45Cattolica Group

Transition to IAS IFRS and impacts of first time adoption

IAS IFRS application

n Cattolica Group edited the consolidated six-months report to 30 June 2005 in accordance with Italian GAAP principles and the required prospects attachment in compliance with CONSOB art. 81-bis n. 14990

n The Group has decided to apply IAS 39 and IFRS 4 as of 1st January 2005, in order to better understand the impacts on consolidated shareholders’ equity and on consolidated net profit

n All other IAS/IFRS principles were adopted as of 1st January 2004

n The prospects resulted to be a complete IAS/IFRS application as far as it regards 1H2005 consolidated net profit and consolidated net shareholders’ equity

The impact on Group shareholders’ equity will be positive

=Analysis areas

Consolidation areaTechnical reserves and DACFinancial investmentsBusiness combinationsLand and buildingsIntangible assets

Group shareholders’ equity

Impacts

Impacts of first time adoption

IAS/IFRS application has an insignificant impact on net profit

46Cattolica Group

Details on ALM process

Actions Output

ObjectivesBetter management of financial uncertainty: decisions on assets and liabilities are coordinatedDefinition of strategic asset allocationIdentification of opportunities to improve financial results

Frequency of ALM simulations

At least Quarterly or: − In case of extraordinary operations

(mergers, acquisitions, etc.)− When required by regulatory Authorities

(ISVAP)− When required by the Management

Interest rate scenarios considered

Level (no deviation from current rates)Increasing (rates rise 0.5% a year for ten years, then level)Cap (rates rise 1% a year for five years, fall 1% a year for five years, then level)Pop-up (rates rise 1% immediately, then level)Decreasing (rates fall 0.5% a year for ten years, then level)Cup (rates decline 1% a year for five years, rise 1% a year for five years, then level)Pop-down (rates fall 1% immediately, then level)

Reports are sent to on a regular basis to all departments involvedMajor findings are discussed in the ALM Committee in order to determine strategic alternatives and select those which maximize the financial reward for a given level of riskThe Investment Manager and the Actuarial Life Manager are responsible for the implementation of the strategies settled by the ALM Board

Deputy General Manager Deputy General Manager (Bancassurance)Life Business ManagerFinance & Investment ManagerChief ActuaryAdministration & Financial Accounts ManagerInternal Audit Manager

Alm Committee Composition

47Cattolica Group

IAS/IFRS impact on shareholders’ equity

1,068

Net shareholder’s equity

(Euro mn)

1,041

IT gaap as at 1st January 2004

IAS/IFRS as at 1st January 2004

IT gaap as at 1st January 2005

1,166 +3.7%+3.7%

1,209

IAS/IFRS as at 1st January 2005

IT gaap as at 30th June 2005

IAS/IFRS as at 30th June 2005

1,163

1,221

+5%+5%

-2.5%-2.5%

IAS/IFRS as at 30thSeptember

2005

1,201

1,267

+5.5%+5.5%

IT gaap as at30th September

2005

48Cattolica Group

IAS/IFRS impact on shareholders’ equity

IT gaap IAS/IFRS

1,1631,221

- 22

Tangible and intangible

assets

252

Financial assets and liabilities

- 146

Insurance contracts

3

Other

- 29

Fiscal effect

Net shareholder’s equity as at 30th June 2005

(Euro mn)

+5%+5%

49Cattolica Group

IAS/IFRS impact on consolidated net profit and life premiums

150

Consolidated net profit

72

IAS/IFRS as at31st December

2004

66

163

IT gaap as at31st December

2004

IT gaap as at 30th June

2005

IAS/IFRS as at30th September

2005

(Euro mn)

+8.7%+8.7%

Consolidated life premiums

2,5512,849

IT gaap as at 30th September

2005

IAS/IFRS as at30th September

2005

(Euro mn)

-10.5%-10.5%

Investment contracts: €298 million

+9.1%+9.1%

103

114+10.7%+10.7%

IT gaap as at 30th September

2005

IAS/IFRS as at 30th June

2005

50Cattolica Group

Economic/Financial information

(*) Before dividens and reserves pay back(**) Class C investments

PREMIUMS(Euro millions)

NET PROFIT(Euro millions)

CAPITAL(Euro miilions)

ASSETS (**)(Euro millions)

30.06-30.09.2005 2004

55 236+16%

0.2 14

61 85

395 ~ 410

P&C

LIFE 1 5TOTAL 56 241

(*)

2003

204+19%

9

71

~ 350

P&C

LIFE 3TOTAL 207

51Cattolica Group

Agency network at the end of September 2005

UniOne networkNumber of proprietary agencies

1474

191574

17168

6623

291648

6511

65

33

38

69

188188

N: 28C: 70 S: 90

314 8

3

11 9

2311

2

14

275

21

22

15

37%

48%

15%

Cattolica Group integrated networkNumber of proprietary agencies

(with the inclusion of UniONE)

1474

191574

17168

6623

291648

6511

65

3338

69

1.3331.333

N: 693C: 363 S: 27793

249 139

21

133

9122

48

13953

10

40

6016

71

41

49

3

36

19

27%

21%

52%

Cattolica GroupNumber of proprietary agencies

1474

191574

17168

6623

291648

6511

65

3338

69

1.1321.132

N: 665C: 328 S: 13990

235 131

20

132

8822

39

11642

8

27

3311

50

19

34

3

36

19

27%

15%

58%

52Cattolica Group

Definitions

Ratio Calculation method

Claims incurred/Earned premiums, net of reinsuranceClaims Ratio

Operating expenses/ Earned premiums, net of reinsuranceExpense Ratio (non-life)

1 – (Non-life technical result/Net earned premiums)Combined Ratio

Other administrative expenses/ Average Life Technical ReservesExpense Ratio (Life)

53Cattolica Group

Contatti

Giulio FezziInvestor Relations OfficerTel. + 39 045 8391620giulio.fezzi@cattolicaassicurazioni.it

Andrea BattistaTel. +39 045 8391450abattista@duomo.it

Chiara AdriaTel. + 39 045 8391229chiara.adria@cattolicaassicurazioni.it

Investor Relations Team

54Cattolica Group

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.

DISCLAIMER

55Cattolica Group

Cattolica Group:Strategic Opportunities and Capital Management

UBSThe Italian Financial Services Conference 2006

Capital allocation and strategic opportunitiesfor Italian Financials

Milan, 2nd February 2006

Giulio Fezzi - Chief Financial Officer and IR ManagerAndrea Battista - General Manager Duomo Assicurazioni and IR