Interactive reports (ITA version)

Consolidated Financial Statements 2017

Annual report and Financial Statements 2017

Sustainability Report 2017

Letter from the Chairman

In 2017, the Board of Directors launched a project to profoundly transform the Group, with the aim of enabling Cattolica to better express its industrial potential.


They created conditions for the new team of managers to make the Company even stronger and capable of facing challenges within the market.


The financial statements figures being presented for approval by the Shareholders’ Meeting demonstrate the solidity of our Group, the result of a coherent strategy and a growth path that has been able to maintain its roots in our identity and values and within the scope of our cooperative business model.


On this basis, the new management team has identified new lines of development, presenting an ambitious but concrete Business Plan, which will allow us to meet the expectations of those who have decided to and those who will decide to invest in our Company, whether they be partners or shareholders.


The markets have shown that they appreciate the goodwill of our beliefs and have faith in the Cattolica project, this is a Company applying its own original development model and that makes corporate social responsibility core to its operating activities.



Paolo Bedoni

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Letter from the Managing Director

Cattolica Assicurazioni ended the 2017 financial year, confirming its position as one of the main players in the sector in Italy, despite challenging economic growth and strong market competition. In industrial and equity terms, the Group is very solid: the premium collection, which increased in Non-Life and Life business, reached € 5 billion; the technical excellence of our production reached optimum levels; the Solvency II margin came to 2.39 times the regulatory minimum, among the highest in the domestic insurance market. In 2017, the Group reported a net profit of € 56 million, as a result of new impairment testing procedures that adapt the Group’s assessment models to the Solvency II approach, in line with maximum prudence principles.


My arrival in Cattolica at the beginning of June allowed me to guide the Company for more than half of the 2017 financial year. Thanks to the cross-cutting involvement of all my colleagues and the quality of the Group’s core assets, we have prepared the 2018-2020 Business Plan with the aim of making Cattolica more innovative, agile and responsive to market challenges. The industrial transformation that we wish to pursue, along with the contribution of the new management team who have embraced Cattolica’s project, is based on pillars of sustainable growth, innovation and technical excellence and is born from the shared desire of all Group colleagues to truly change the face of our Company.


To accommodate this change of pace and make it effective and sustainable, it will be crucial to simplify and transform the Group’s culture. The values and history of our Company require us to act seriously and responsibly to achieve the realistic but ambitious targets that have been outlined and to repay our shareholders for the trust they have placed in us.



Alberto Minali

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Group highlights

As of December 31st, the consolidation area comprised the insurance Parent Company, seven insurance companies, four service companies, two companies in the agricultural-real estate sector and three real estate property investment funds.

Group’s market share:

Total market share

2017

3.8%

2013

3.6%

2014

3.7%

2015

3.6%

2016

3.5%

Non-life sector

2017

6.2%

2013

4.5%

2014

5.0%

2015

5.5%

2016

6.2%

Life sector

2017

3.0%

2013

3.1%

2014

3.3%

2015

3.0%

2016

2.7%

Data and Graphics
(€ millions)

KEY ECONOMIC INDICATORS

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(€ millions) 2013 2014 2015 2016 2017
Total premiums written 4,384.4 5,676.9 5,611.5 4,758.8 5,008.2
Direct business - non-life 1,715.3 1,853.1 2,028.6 1,972.5 2,015.1
Direct business - life 2,655.7 3,769.1 3,567 2,771.1 2,979.4
Consolidated net profit for the period 64.2 107.1 81.6 93.4 56.1
Group net profit for the period 44.3 90.7 60.9 76.3 41.1
Combined ratio for retained business 93.5% 91.5% 91.5% 93.2% 94.7%



KEY EQUITY INDICATORS

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(€ millions) 2013 2014 2015 2016 2017
Investment 16,927.2 19,957.7 21,390.9 21,590.9 23,284.5
Technical provisions net of reinsurance amount 14,920.7 17,084.2 18,169.7 18,796.5 19,969.2
Consolidated shareholders’ equity 1,560.8 2,188.1 2,158.7 2,113.7 2,107.5
Shareholders’ equity pertaining to the Group 1,334.3 1,962.7 1,911.8 1,854.9 1,845.3
Solvency II ratio --- --- --- 1.86 2.39(1)

(1) The post-distribution ratio of the proposed Parent Company dividend, calculated according to the Standard Formula with the use of the Undertaking Specific Parameters (USP). The ratio includes the subordinated debenture loan issued on December 14th, 2017. The figures have not yet been subject to the checks envisaged by the IVASS letter to the market dated December 7th, 2016.

Headcount and sales network

Total headcount

Total headcount

2017

1,579

2016

1,568

2015

1,580

2014

1,654

2013

1,454

VIEW

Full time equivalent headcount

Full time equivalent headcount

2017

1,517

2016

1,508

2015

1,522

2014

1,595

2013

1,401

VIEW

Agencies

Agencies

2017

1,494

2016

1,496

2015

1,516

2014

1,535

2013

1,422

VIEW

Bank branches

Bank branches

2017

5,064

2016

5,649

2015

5,744

2014

5,985

2013

5,862

VIEW

Financial advisors

Financial advisors

2017

800

2016

906

2015

1.039

2014

910

2013

867

VIEW

Welfare and pension product advisors

Welfare and pension product advisors

2017

210

2016

299

2015

362

2014

485

2013

440

VIEW

Agrifides sub-agencies

Agrifides sub-agencies

2017

28

2016

19

2015

---

2014

---

2013

---

VIEW

Significant events

In April, Cattolica decided to exercise its preemptive right for the sale to BPVi of the shares held in the share capital of Berica Vita S.p.A., Cattolica Life DAC, and ABC Assicura S.p.A., in accordance with the Partnership Agreements entered into at the time.

In May, with reference to the Solvency II ratio and based on the assessments of the 2016 financial year, the IVASS authorised the use of the specific Group (GSP) and company (USP) parameters respectively.

On 28 April, the Board of Directors announced that Mr. Giovan Battista Mazzucchelli would be leaving as of 30 May, stepping down from the role of Director and Chief Executive Officer in Cattolica Assicurazioni and other companies of the Group.

The Board of Directors appointed Mr. Alberto Minali as new Chief Executive Officer starting 1 June 2017, and proceeded to co-opt him into the Board and appoint him as Chief Executive Officer of the Company and Group.

In the context of a wider organisational redesign, in July, the Board of Directors appointed Mr. Carlo Ferraresi as new General Manager for Markets and Distribution Channels.

In August, the Parent Company sent Banca Popolare di Vicenza’s administrative compulsory liquidation bodies the “Request for recognition of credits pursuant to Art. 86, paragraph 5 of Legislative Decree no. 385/1993” in relation to credits for over 190 million.

In the month of September, Mr. Enrico Mattioli entered the Group, assuming the role of Vice General Manager of Strategic Planning and Control, Administration and Financial Statements, reporting to the Chief Executive Officer. He was also appointed Chief Financial Officer of the Cattolica Group.

At the start of October, Berkshire Hathaway, the investment arm owned by Warren Buffet, officially recognised Quaestio Capital Management SGR’s 9.047% share in Cattolica’s capital through the compulsory updates to CONSOB.

On 9 November, Banco BPM and Cattolica signed an agreement that foresaw Cattolica’s acquisition of a 65% share in the capital of Popolare Vita S.p.A. and Avipop Assicurazioni S.p.A. (hereinafter “the Companies”) and the start of a 15-year commercial partnership for the distribution of insurance products in the Companies’ life and non-life sectors through the former Banco Popolare network. Cattolica will carry out the Companies’ management and coordination activities. Banco BPM will retain voting powers on matters of strategic relevance; Cattolica will appoint the Chief Executive Officer of the Companies, Banco BPM the General Manager.

On 5 December, the Parent Company successfully located a bond exclusively reserved for qualified investors. The issue, which received orders from more than 250 investors for a total of over 3 billion, around 7 times the issue’s amount, was finalised on 14 December. As of that date, the bonds were listed on the market regulated by the Irish Stock Exchange.

On 21 December, the Cassa di Risparmio di San Miniato S.p.A entered the Crèdit Agricole Italia banking group. Following the increase of capital from 200 million fully signed by the Voluntary Scheme of the Interbank Fund for the Protection of Deposits, the Parent Company diluted its own share in Cassa di Risparmio di San Miniato S.p.A. from 25.12% to 1.2%, meaning the latter lost its affiliate nature.





Our Headquarters

Milano Via Nuvolari Tazio

Roma Via Urbana 169/A

Roma Via Aurelia 294

Verona Lungadige Cangrande 16

Verona Via Enrico Fermi 11/B e 11/D

Cattolica Assicurazioni - Via Nuvolari Tazio - 20100 Milano (MI)
Cattolica Assicurazioni - Via Urbana 169/A - 00184 Roma (RM)
Cattolica Assicurazioni - Via Aurelia 294 - 00118 Roma (RM)
Cattolica Assicurazioni - Lungadige Cangrande, 16 - 37126 Verona (VR)
Cattolica Assicurazioni - Via Enrico Fermi 11/B e 11/D - 37135 Verona (VR)