Unipol Grupo Spa

Good afternoon. This is the Corsco Conference Operator. Welcome and thank you for joining the Unipol Group as of 31st December 2022 preliminary results Q&A session conference call. At this time, I would like to turn the conference over to Mr. Matteo La Terza, CEO of Unipol SAI and General Manager of Unipol. Please go ahead, sir.

Good morning and thank you very much for participating to this conference. Before opening the floor to questions, I will spend a few minutes to comment on the preliminary 2022 financial results that we released this morning. I have to say, first of all, that they were very strong results, despite the very challenging environment in which we have run the business last year. I will start to comment the PNC, where in the business we achieved a top-line growth above 4%, mainly driven by non-motor business, where the main catalyst was the growth that we achieved in the health insurance, with Unisalute growing double digits. In terms of distribution channels, bank assurance has been the main driver of growth, with ARCA Sicurazioni growing in the whereabout of 30%. On the other hand, in terms of technical profitability, 2022 was impacted by two different trends. If on one end in non-motor we had a positive trend, despite a slightly higher impact coming from nut cut and large losses. In motor, on the other hand, we had a deterioration of the combined ratio, mainly driven by the increase in the average cost of claim that has been offset, has been not offset yet by the repricing of the portfolio that we implemented starting from the second part of 2022. In life, the business went pretty well, despite a very challenging environment in terms of structure of interest rates. The business grew above all in pension funds, where we doubled the production compared to the number that we achieved in 2021. In terms of technical profitability, we achieved a very positive impact coming from both the financial component of the business and also the technical part, above all driven by the mortality component of the profitability. Finally, investment income was very solid. we increased based above all on the increase of the base rate of the free risk rates that gave us the possibility to diversify our financial portfolio by increasing the yield of the portfolio and at the same time we reduced the volatility of our own funds. This is a very important target, considering that we closed 2022 with a very robust solvency ratio, both at Unipol site level and Unipol group. And this was a very solid pillar that justified the the proposal of dividend of 16 cents in Unipol SAI, which is absolutely in line with the assumption of our industrial plan. And we proposed 37 cents in Unipol Gruppo, which is above the target of the industrial plan. So to sum up, I can say that We closed our first year of the industrial plan opening new ways, being on track on all the main industrial and financial KPIs. And having said that, I open the floor to questions. I'm here with Enrico Salpieto, who is General Manager of the Insurance Business, and we are open on all the questions that you have. Thank you.

This is the Coruscant Conference Operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch-tone telephone. To remove yourself from the question queue, please press star and 2. Please pick up the receiver when asking questions. Anyone who has a question may press star and 1 at this time. The first question is from Andrea Lisi of Equity. Please go ahead.