Unipol (UNI) Q2 2024 earnings summary

Executive summary

• Group net profit rose to €555m, or €632m including BPER and BPSO, up over 22% year-over-year; total net result including banking associates at €587m.

• Premium collection increased 10.5% year-over-year to €8,165m, with direct insurance income at €8.2bn (+10.4%), driven by both Non-Life (+7.8%) and Life (+14.0%) segments.

• All business ecosystems—Mobility, Welfare, and Property—reported positive income growth, with Mobility up 9.5% and Welfare up 10.6%.

• UnipolSai numbers no longer represented due to delisting; group now reports only consolidated results.

• Life business saw strong net inflows, mainly from bancassurance, and technical results exceeded H1 2023 despite an €18m provision for the guarantee fund.

Financial highlights

• Combined ratio improved to 93.1% from 97.5% in H1 2023, but was impacted by over €120m in additional reserves due to updated Milan Court tables, increasing the ratio by 3 points.

• Solvency ratio closed at 221%, up from 215% at FY23, supported by capital generation despite negative market performance and a 6-point impact from the Unipol Gruppo tender offer.

• Total reserve runoff in H1 2024 was 3.4% (€160m), mainly from risk adjustment; H1 2023 was 5.8%.

• Motor business runoff in H1 2024 was 0.9%, down from 7.3% in H1 2023.

• Pre-tax result including banking associates was €834m, up from €697m in H1 2023.

Outlook and guidance

• Confident in delivering 2024 strategic plan targets, including the combined ratio, though caution remains due to potential NatCat impacts and financial market volatility.

• Inertial price increases in motor expected to continue offsetting claim inflation; no immediate need for further tariff hikes.

• Dividend policy for 2024 to be addressed later in the year, with more focus on the 2025-2027 industrial plan.