Unipol Grupo Spa

Good afternoon. This is the Coruscant Conference Operator. Welcome and thank you for joining the Unipool 9 Months 2023 Results Conference Call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing Good morning and thank you very much for joining us to this first nine-month result meeting.

I'm here with the general manager, Enrico Sanpietro, and as usual, before opening the floor to the questions, let me make a very brief introduction on the numbers. I will start from the PNC business, where top line growth was quite robust, even if the 3.8% growth in terms of premium that you saw in the presentation was to me underestimate our commercial effectiveness because it doesn't take in consideration the policy splitting strategy that we massively applied here to date above all in the motor TPL business. In fact, the 1.2% premium growth in motor adjusted for the policy splitting is a number close to 5%. And in non-motor, the 6.2 is a number above 7%. In particular, in non-motor was very high the performance of health insurance business with almost 17% of growth in premiums. And on this pillar, we are ahead of schedule to reach the target of our industrial plan at the end of 2024. On technical profitability, the third quarter was impacted by several trends and events. We start from motor TPL, where we saw three important trends. The first one is The increase in the average premium that year-to-date is above 7%, so the upward trend is accelerating. Second, we had in the third quarter a slowdown in terms of claim. And it is another positive trend. And the third one that I wanted to mention is the slowdown in the average cost of claim. All these three trends were positive in terms of impact in the technical profitability. Even if we have not yet reached a decent level of combined ratio in motor TPL, we are in a good track to reach it quite soon. On the negative side, the third quarter of this year was impacted quite massively by NATCAT. You saw in the presentation that NATCAT plus large claim impacted net of reinsurance quite 11.5 percentage point versus 7.1 in the first half of this year. And of course, the main contributor to this to this deterioration is due to the event that we had in the second half of July in the northern part of Italy. And I have to say that this is the main driver of the deterioration of the combined ratio that closed in September at 98.6%. In life, we had a quite positive trend in terms of premium in all the line of business. Very important is the positive net inflows in the traditional products. where we are close to 300 million overall. Very important is the contribution of the bank assurance in this side, and we maintain in life a quite good level of profitability in line with our forecast of profitability that we had for 2023. Finally, and I will close this introduction, in terms of solvency, we have a group solvency at 218%, exactly the same than at the end of June. We had, above all, two main drivers, one positive, that is the capital generation contribution, And on the negative side, third quarter was quite negative in terms of performance of financial market. We had a deterioration of the spread of government bonds on one side. Equity market had a negative performance in the third quarter. And these two main driver had a negative impact on the own funds. And at the end, these two elements were offsetting each other, and we closed the solvency at 218%. At Unipol's high level, we have more or less the same kind of remarks to say on solvency. Having said that, with Enrico, now we open the floor to the question. Thank you very much.

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 one on their touch-tone telephone. To remove yourself from the question queue, please press star and two. Please pick up the receiver when asking questions. Anyone who has a question may press star and one at this time. The first question is from Peter Elliot of Kepler Chevrolet. Please go ahead.