Unipol (UNI) Q4 2024 earnings summary

Executive summary

• 2024 consolidated net profit reached €1,119m, up 5.2% year-over-year, with strong contributions from both Non-Life and Life segments.

• Direct insurance income totaled €15.6bn, a 4.6% increase, with Non-Life up 7.7% and Life up 0.6%.

• Dividend per share proposed at €0.85, more than doubling from €0.38 in FY23, with a yield of 6.2% and payout ratio of 77%.

• 2022-2024 strategic plan targets for profitability, financial strength, and shareholder return were surpassed.

• Overdelivered economic KPIs in net profit, dividends, and solvency despite inflation and NatCat headwinds over the last three years.

Financial highlights

• Combined ratio improved to 93.6% from 98.2% in 2023, with Motor at 98.5% and Non-Motor at 88.0%.

• Solvency 2 ratio at 263% (insurance group), consolidated solvency ratio at 213%.

• Net investment income rose to €2,207m, with a gross return on investment portfolio of 4.1%.

• Shareholders' equity at €9,628m at year-end 2024.

• One-off items in Q4 2024 (vehicle fleet devaluation, solidarity fund, merger costs) totaled about €150m in P&C; €173m pre-tax charge for Employee Solidarity Fund.

Outlook and guidance

• Cumulative net result for 2022-2024 reached €2,957m, exceeding the strategic plan target of €2.3bn.

• Cumulative dividends distributed over the plan period totaled €1,283m, surpassing the €0.75bn target.

• Positive performance expected to continue in 2025, with new 2025-2027 Strategic Plan to be presented in March 2025.

• Expectation to continue increasing average premiums and maintain profitability in motor insurance in 2025.

• Life business productivity per branch and bancassurance network seen as areas for future growth.