Unipol (UNI) Q1 2025 earnings summary

Executive summary

• Consolidated net profit reached €407m, up 12.1% year-over-year, including BPER and BPSO contributions; excluding these, net profit was €285m, a 17.8% increase year-over-year.

• Pre-tax total result reached €419m, compared to €361m in 1Q24, excluding banking associates' contribution.

• Direct insurance income totaled €4,988m, up 18.8% compared to Q1 2024.

• Solid first quarter with strong performance in both P&C and life segments, supported by growth in premiums and technical profitability improvements.

• Solvency 2 ratio for the Insurance Group improved to 277% from 260% at FY24; Group Solvency ratio at 218%, including estimated 2025 dividend.

Financial highlights

• Non-life direct insurance income rose 4.7% to €2,387m; life direct insurance income surged 35.5% to €2,600m.

• Combined ratio improved slightly to 91.0% from 91.1% in Q1 2024, with motor at 92.0% and non-motor at 90.2%.

• Gross return on financial insurance investments reached 6.9% (4.2% from coupons/dividends), up from 5.8% in Q1 2024.

• Realized gains of €113 million in Q1, considered opportunistic and not expected to recur in subsequent quarters.

• Health insurance growth at 16% for the group, with UniSalute at 21.5%.

Outlook and guidance

• Strategic Plan 2025-2027 actions initiated, with expected impact in coming quarters.

• Combined ratio targets for motor and non-motor segments expected to be maintained, barring extraordinary events.

• Health insurance growth expected to normalize to below 8% CAGR over the three-year plan.

• NatCat budget prudently set €100 million higher per year than 2024, with new aggregate reinsurance cover to enhance protection.

• Solvency ratios are net of estimated dividends accrued on a pro-rata temporis basis for FY25, with actual dividends to be determined per capital management policy.