Unipol Grupo Spa

The General Director of Unipol, Mr. Matteo La Terza, will share with you a short introduction, and then he will be available for questions. Mr. La Terza, the floor is yours. Good morning, ladies and gentlemen. You must all have seen the presentation and read the communique, so the press release, so no presentation is required. I'm here with Enrico San Pietro, the Insurance Business General Director, and I'm here ready to take your questions. Thank you. So, if you want to ask a question, please dial star followed by one on your phone. To get out of the booking list, please dial star followed by two. Please ask your questions by using the receiver of your phone. So if you want to ask a question, please dial star followed by one now. Thank you. First question from the regional conference is from Michele Ballatore from KPW. Please. Thank you. Now this is my first question for you and it is on the investment yield IY. So especially in the non-life business it went up a lot versus H1 2021. So can we have some color about this? Second question is again on the investments yield. So, corporate bonds reduction and the Italian GovViz reduction. I know there's been a slowdown or a cut. Now, is the cut due to the market only? Or are you repositioning it away? Third question. What about the GovViz strategy? Is it going to change? Because they went up a little bit. Thank you. Well, thank you for the question. Now, as for question number one, on the IEY, so investment yield of the non-life business, we have many factors to take into account. The first one is due to the significant presence in our portfolio of inflation bonds. Now, of course, the coupons were impacted positively by the increase of the European inflation rate in the past months. So I think that this is a non-repeatable attitude or fact, because if it becomes fixed or structural, we would have an advantage on the investment parts. But we have to go through some criticalities in terms of our liabilities on the non-life businesses. Apart from this, we carried out major investments in terms of liquidity that we had in our portfolio, and we have had the possibility to invest at very interesting rates versus the past. Now, this means we've been able to strengthen the structural coupon yield of our portfolio. We also have the dividend components, and now it has given a more than proportionate contribution versus the same time last year. And then on the non-life business, we have allocated plenty of real assets, investments, or alternative investments. Of course, they have a higher profitability versus what you can see on the fixed rate market there. So we are investing our cash flows on the non-life business between 2% and 2.5%. This is what we invest on a diversified portfolio where we have Italian gobies, 35%. The remaining part is European gobies and corporate gobies again. So we also have the dividend component, we have the inflation component, and of course, well, it depends on how it will go in the next quarters, and then we also have the alternative investments. This is the strategy we carried out, I mean, some years ago. We want to reduce the investments in Italian gobies. We want to reinvest the cash flows in other securities, I mean, bonds or Europe core parts. the credit components on the high rating levels I mean from single a upwards and then a small part in alternative investments the objective is we want to have the right profitability that fits or meets our objectives as for the Italian gobies a total exposure is now 35 percent now during the six months we have reduced our securities by around 1 billion euros and the remaining part is market to market i mean the italian gob is lost a little bit their value more than proportionally versus many other fixed rate income so in terms of aa or asset allocation this means we have reduced the percent allocation. So right now we don't think there will be any change in the assets composition. What we have now is 200 basis points spread between the BTP and Bund. So we are close to political elections. So we prefer to have a cautious prudent attitude right now before making decisions. on the financial assets portfolio. Thank you. Next question is from the conference in English from David Palmer from BMP. Excellent, please.

Hello. Thank you for taking my questions. So the first one is on P&T and the NATCAT impact in H1, which in 2Q especially, seemed a bit high. Can you remind us how your reinsurance cover works and whether you have any plans of tweaking that going forward? My second question is still on P&T. What was the support from prior year releases in the first half, please? And then lastly, on life, so another strong quarter and LIFE making your last guidance for free tax results seem quite conservative now. Could you update us on this and your expectations for the LIFE contribution?

Thank you. Thank you.