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    2016-2018 Strategic Plan Presentation PDF
    Unipol: 2016-2018 strategic plan approved Press Release PDF
    UnipolSai: 2016-2018 strategic plan approved Press Release PDF

    2016-2018
    Strategic Plan

    unipol.it | unipolsai.com
    Copyright @ 2016 Unipol Gruppo Finanziario S.p.A.
    Disclaimer

  2. 2015

    2016-2018 Strategic Plan Presentation PDF
    Unipol: 2016-2018 strategic plan approved Press Release PDF
    UnipolSai: 2016-2018 strategic plan approved Press Release PDF

    2015

    Results achieved as of 2015

  3. CONTEXT

    2016-2018 Strategic Plan Presentation PDF
    Unipol: 2016-2018 strategic plan approved Press Release PDF
    UnipolSai: 2016-2018 strategic plan approved Press Release PDF

    Context

    Challenges facing the insurance industry

  4. STRATEGY

    2016-2018 Strategic Plan Presentation PDF
    Unipol: 2016-2018 strategic plan approved Press Release PDF
    UnipolSai: 2016-2018 strategic plan approved Press Release PDF

    Strategy

    Future strategy

  5. 2018

    2016-2018 Strategic Plan Presentation PDF
    Unipol: 2016-2018 strategic plan approved Press Release PDF
    UnipolSai: 2016-2018 strategic plan approved Press Release PDF

    2018

    Future targets

it
2016-2018 Strategic Plan
Unipol: 2016-2018 strategic plan approved
UnipolSai: 2016-2018 strategic plan approved

2016-2018
Strategic Plan

unipol.it | unipolsai.com
Copyright @ 2016 Unipol Gruppo Finanziario S.p.A.
Disclaimer

2015

Results achieved as of 2015

Context

Challenges facing the insurance industry

Strategy

Future strategy

2018

Future targets

A new dimension

Evolution of the Unipol Group since 2010

Repositioning
2010-2012
Integration
2013-2015
2010-2012
2013-2015
  • Acquisition of ARCA
  • Return to Non-Life profitability
  • Simplification of the organisational structure and maintenance of balance sheet solidity
  • Acquisition of FondiariaSAI Group
  • Corporate merger and birth of UnipolSai
  • Organisational and industrial integration
  • Sale of a branch of the company in compliance with the Antitrust Authority
Repositioning
2010-2012
  • Acquisition of ARCA
  • Return to Non-Life profitability
  • Simplification of the organisational structure and maintenance of balance sheet solidity
Integration
2013-2015
  • Acquisition of FondiariaSAI Group
  • Corporate merger and birth of UnipolSai
  • Organisational and industrial integration
  • Sale of a branch of the company in compliance with the Antitrust Authority

Results achieved

Numbers

A continued standard of excellence in respect of solvency and shareholder returns
 
2015
RESULTS
2013-2015
STRATEGIC PLAN TARGETS
CONSOLIDATED NET PROFIT*
€1,414m
€1,836m
INVESTMENT YIELD
4.6%
4.2%
SOLVENCY I RATIO
168%
~180%
 
Dividends of €375m distributed in the 2013-2015 period
 
* 2013-2015 cumulative data; 2015 net profit adjusted for the effects of the new I.R.E.S. rate (Legge di Stabilità 2016)
Exceeded targets relating to value creation, financial solidity and shareholder returns
 
2015
RESULTS
2013-2015
STRATEGIC PLAN TARGETS
CONSOLIDATED NET PROFIT*
€2,298m
€1,785m
COMBINED RATIO
94.6%
94.3%
SOLVENCY I RATIO
176%
~180%
FONSAI INTEGRATION SYNERGIES
~€390m
€349m
 
Dividends of €1,462m distributed in the 2013-15 period
 
* 2013-2015 cumulative data; 2015 net profit adjusted for the effects of the new I.R.E.S. rate (Legge di Stabilità 2016)

Facts

Management and execution ability clasrly demonstrated

  • Streamlining of the number of companies from 113 to 65
  • Centralisation of banking business and Direct Insurance
  • New «UnipolSai» brand
  • Unification of products offered in Life and Non-Life businesses
  • > 2.5m telematics devices installed
  • Approx. € 700m in policies financed in 2015
  • Approx. 180,000 claims settled through repairs carried out by our network with reimbursement in kind during 2015
  • 1st Italian agency network, with more than 5,000 agents and 16,000 sub-agents
  • Reorganization of the entire Commercial Network, with coverage of over 3,500 agencies in 4 districts and 16 zones
  • Standardised incentive scheme
  • From 41 to 19 core insurance systems
  • All companies of the insurance sector centralised on the Group’s SAP platform
  • Creation of a single data centre for the Group
  • From 40 locations (before the integration) to 20 target locations, with the involvement of approx. 2,000 resources in the insurance sector
  • Disposal of 725 agencies, 470 employees, and €1.1bn in premiums in compliance with AGCM requirements

The competitive environment

Rapidly changing market enviroment

REGULATORY FRAMEWORK TECHNOLOGICAL DEVELOPMENT TARGET MARKETS CUSTOMER BEHAVIOUR
Customer behaviour
Target markets
Technological development
Regulatory framework

Customer behaviour

  • Climate change, well-being, ageing and generational changes
  • Customers are increasingly likely to govern their decision-making process of their purchases through digital and hybrid means
  • Cultural evolution from “possession” to “use” and growing demand for flexibility

Target markets

  • Forecast of a motor insurance market still in “deflation” during 2016 but with signals of recovery in terms of new car registrations
  • Prolonged phase of low interest rates
  • Demographic and social evolution and progressive disengagement of the State with a considerable impact on welfare

Technological development

  • Telematics
  • Internet of Things
  • 24/ 7 multi-device accessibility
  • Digital Analytics – Big Data

Regulatory framework

  • 2015 – Banking Resolution and Recovery Directive
  • 2016 - Solvency II
  • 2016 - Packaged Retail and Insurance -Based Investment Products
  • 2016 – Law Decree Concorrenza (being discussed)
  • 2018 - Insurance Distribution Directive
  • 2018 - EU Data Protection

Challenges and opportunities

The competitive environment requires a new “Roadmap for Change” in the insurance sector

  • -16% of Average Premium 2015 v 2012
  • Trend of increased claims frequency resumed in 2015
  • Claims settlement efficiency
  • Streamlining of costs
  • Differentiation in pricing and services
+€1.4bn growth expected for 2018 in Non-Life Non-Motor and approx. +€20bn in Life business
  • “Supply” market requires a target customer approach, specialisation and professionalism
Need for new insurance solutions and services (health and welfare) and demand for use and Interation enabled by technology
  • Investment in technology and innovation and skills
  • Evolution of the company and agency business processes

The Unipol Way

A new path for the Group

GROWING IDENTITY KEY VALUES Accessibility Foresight Respect Solidarity Responsibility NEW KEY DRIVERS Simplicity Speed Empowering People Innovation VISION CSR POLICY MISSION UNIPOL NEXT TO Positioning focus Closeness

Strategic goals and key drivers

Strategy focused on the core insurance business capitalising on the Group’s excellence

2016-2018 Strategic Plan challenges

  • Non-Life technical profitability is shrinking
  • Financial investment yields are still low
  • Economic growth is still weak
  • 2012-2015 plan targets exceeded
  • Integration of the Fondiaria-Sai Group successfully finalised
  • Company and capital structure streamlined
  • Leader in Europe in Motor policies with blackbox
  • Leader in Italy in Non-Life business
  • The largest agency network in the domestic market
  • New Motor products launched offering high-level services
  • Onset of AlfaEvolution to manage blackboxes and big data
  • UniSalute, Finitalia, APB and MyGlass are core companies which offer services and ensure cost savings in the claims settlement process
STRENGTHENING THE GROUP LEADERSHIP IN THE ITALIAN INSURANCE MARKET
  • +500,000 clients in Motor business
  • +8% growth in Non-Motor premiums, Retail and SME
  • +3% market share in Health business (UniSalute)
  • Average combined ratio 95.5% (Unipol) and 96.0% (UnipolSai)
  • 50 €m savings on the cost of claims, thanks to blackbox data
  • 30% of the Life premium income made by linked products
ENSURING A SUSTAINABLE PROFITABILITY OVER TIME
  • Total consolidated profit between 1.5 and 1.7 €bn (Unipol consolidated)
  • Total consolidated profit between 1.4 and 1.6 €bn (UnipolSai consolidated)
  • Total dividends 400 €m (Unipol)
  • Total dividends 1 €bn (UnipolSai)
  • Solvency II range 120-160% (Unipol consolidated)
  • Solvency II range 150-200% (UnipolSai consolidated)

DISCLAIMER

This presentation contains information and data, as well as expectations, estimates, forecasts of results and events that reflect the current views and assumptions of the Company’s management.

Such content may significantly differ from what will actually happen as a result of events, risks, economic conditions and market factors not known or not foreseeable at present, or that are outside of the management’s control.

Furthermore, no obligation will be assumed as to any future update of the presentation contents.

The group structure covered by the information contained herein should be understood as at 31 December 2015.

Pursuant to Article 154-bis, second paragraph, of the “Consolidated Law on Financial Intermediation”, Maurizio Castellina, senior executive responsible for financial reporting of Unipol Gruppo Finanziario S.p.A. and UnipolSai Assicurazioni S.p.A., hereby declares that the information relating to the Company’s financial statements contained in the presentation matches the documentary findings, accounting books and records.