Unipol (UNI) Q3 2024 earnings summary

Executive summary

• Group net result for 9M24 reached €834m, up 8.5% year-over-year, with strong contributions from both insurance and banking associates.

• Achieved a solid quarter in both P&C and life segments, with strong top-line growth in health and bancassurance distribution channels.

• Premium collection increased to €11.4bn, a 9.1% year-over-year rise, driven by both Non-Life and Life segments.

• Life business outperformed, driven by bancassurance (notably Arca Vita) and positive contributions from protection and investment components.

• Combined ratio improved to 93.9% from 98.6% in the prior year period, reflecting better underwriting performance.

Financial highlights

• Group net result: €834m (9M24) vs €769m (9M23); Insurance Group net result: €681m (9M24) vs €615m (9M23).

• Non-life direct insurance income rose to €6.5bn (+6.8%), with notable growth in health and motor vehicle lines.

• Life direct insurance income increased to €4.9bn (+9.6%), with bancassurance channel Arca Vita up 27.5%.

• Current yield from investments reached 4.3% as of September 2024, significantly above the prior year.

• Provision related to the Solidarity Fund impacted results by nearly €150 million gross of tax, or about €100 million net.

Outlook and guidance

• Confident in delivering overall profitability targets of the industrial plan for 2024.

• Combined ratio target (92.6%) for the year is within reach, though final achievement depends on Q4 developments.

• Income from consolidated operating activities is in line with the 2022-2024 Strategic Plan targets, barring unforeseen economic or weather-related events.

• Dividend policy expected to remain competitive with the insurance sector, reflecting the new status as an operating insurance company.

• Merger of banking associates BPER and BPSO expected by year-end 2024.