In This Article:
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Combined Ratio: Improved to 91 in the PNC segment.
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Life Segment Margin: Improvement in technical profitability.
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Net Inflows: Significant improvement driven by agent and bank assurance networks.
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Investment Earnings: Strong contribution from guaranteed coupons, dividends, and realized gains.
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Solvency Ratio: 2118%, including estimated dividend for 2025.
Release Date: May 16, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Unipol Assicurazioni SpA (UFGSY) reported a solid quarter with growth in both PNC and life insurance segments.
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The combined ratio improved to 91%, indicating enhanced technical profitability.
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Investment income was strong, driven by realized gains and improved yields from financial assets.
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The solvency ratio stood at 2118%, reflecting robust capital generation.
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Health insurance segment experienced significant growth, outperforming planned targets.
Negative Points
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The expense ratio was higher than expected due to increased agent commissions linked to technical profitability.
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Non-motor combined ratio worsened due to the absence of prior year reserve releases.
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The sustainability of realized gains in investment income is uncertain, with future contributions expected to rely more on coupons and dividends.
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The company faces potential challenges in maintaining the current level of combined ratio in the medium term.
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There is uncertainty regarding the potential sale of Yuna Hotel, which could impact future profitability.
Q & A Highlights
Q: Can you provide more details on the combined ratio, particularly the split between motor and non-motor, and the impact of attritional versus large losses? A: The combined ratio was strong, with improvements in motor due to pricing actions taken in 2024. The attritional losses were managed well, and large losses were not material this quarter. The expense ratio increase is linked to agent remuneration tied to technical profitability. (Matteo Laterza, CEO; E. San Pietro, Insurance General Manager)
Q: What is the outlook for the sustainability of the financial income yield, excluding capital gains? A: The current yield is above 4%, which is sustainable for 2025, supported by dividend streams from equity investments. Future sustainability will depend on market conditions and interest rates. (Matteo Laterza, CEO)
Q: Regarding your stake in banks, particularly with the exchange offer by Banco di Sardegna, what actions will you take if you surpass the 20% level? A: We have no intention to exceed a 20% stake. In case of an exchange offer success, we have a financial instrument in place to manage our stake, ensuring we remain at 20%. (Matteo Laterza, CEO)