Unipol Grupo Spa

Good afternoon. This is the Coral School Conference Operator. Welcome and thank you for joining the presentation of First Half 2023 Consolidated Results of Unipol and Unipol SAI. 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 to everyone and thank you very much for staying with us on 11 of August. Before opening the floor to the question, let me make some statements and remarks on our results. I will start as usually from non-life business, where in terms of top line we achieved a very good growth. I have to say that The numbers don't reflect in full our distribution potential due to the monthly installments, sale of products, above all in motor that we started at the beginning of the year. So the performance was very good both in motor and in non-motor. In particular... Very good the performance that we achieved in the health business where we started to distribute Unisalute product both through the agent distribution network and bank assurance. And in particular, bank assurance was the most important driver of growth in terms of top line. In terms of technical profitability, there were some negative impact, as you were able to see in the numbers. Both in motor, where we have been commenting about the trend in motor for several quarters. We have the increase of frequency and also the increase of the average cost of claim. At the same time, we are following and executing our strategy of repricing. We are on track in the execution of the strategy. We start to see some positive implications coming from the trend of the frequency, so some light at the end of the tunnel. But nevertheless, we will continue to pursue our strategy of repricing of our product. Concerning non-motor, we had some negative impact coming from NatCat, in particular the implication and losses coming from the flood in Emilia-Romagna that were priced at 110 million euros in the numbers of the first half of the year. In July we continue to have some negative impact coming from NatCat in particular in the area of again Emilia-Romagna, Veneto and Lombardia. In life, we had very positive results in terms of top line, first of all, where, again, we had some positive contribution coming from pension funds where we acquired three new jobs. mandates but also in the traditional business the trend was very good above all again in the bank assurance distribution network but also in our agents distribution network we have positive net inflows that were able to contribute to increase the yield of our asset in life and We decreased the minimum guarantee, the average minimum guarantee of our portfolio, and we were able to maintain a stable profitability for the equity shareholder in life. We had positive contribution coming from the CSM creation in life. And in terms of new business value, we maintained a profitability above 4%. One of the main drivers of this contribution, both in life and in non-life, comes from investments. This is a natural and normal implication coming from the increased profitability. of interest rate and the positive performance of financial market. And as a consequence of this trend, we were able to improve the contribution of investments to the numbers of the first half numbers in Unipol Gruppo and Unipol SAI. Positive implications come also in our capital position. The main driver is the contribution of the result, but also the positive contribution coming from the trend of financial market and also coming from the decision to decrease our investments in the equity component of the portfolio as a consequence of the prosecution of the upward trend in equity financial market. Finally, I have to stress that, as you were able to see in Ullivol Gruppo results, reflect the effect of banks' extra profit tax that was announced by the Italian government at the beginning of this week. Consequently, we decided to adjust the contribution of BIPER results as they were approved by the Board of the Bank last week before the announcement. by deducting the total number by 28 million euros. And so the contribution has changed from 141 million to 113 million in order, again, to reflect this very important news that came at the beginning of this week. Having said that, I'm here with Enrico San Pietro, and we are ready to answer to all your questions. Thank you very much.

This is the Coruscall 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. We kindly ask you to use the handset when asking questions. Anyone who has a question may press star and 1 at this time. The first question is from Michael Hattner from Berenberg. Please go ahead.