Results as of September 30th, 2011 approved
CONSOLIDATED NET PROFIT OF € 41 MILLION (€ 62 million excluding the effect of the higher IRAP tax rate and the write-down of Greek government securities, compared to € 61 million for September 2010)
CONSOLIDATED PREMIUMS WRITTEN OF € 2,871 MILLION
- Direct non-life premiums +2.1%
- Direct life premiums -34.5%
BUSINESS PERFORMANCE EFFICIENCY CONFIRMED
- Combined ratio stands at 96.9% (97.7% at December 31st, 2010)
SOLVENCY MARGIN 1.35 TIMES THE REGULATORY MINIMUM
Verona, November 11th 2011
Today, the Cattolica Assicurazioni Board of Directors, chaired by Paolo Bedoni, unanimously approved the Interim Report as of September 30th, 2011 of the Cattolica Group1 . Consolidated net profit amounted to € 41 million, affected by € 17 million in investment portfolio write-downs2 . Excluding non-recurring effects and the IRAP tax rate increase, consolidated net profit would be € 62 million, up on the € 61 million recorded in the same period in 2010.
The Group net profit stands at € 39 million (€ 56 million as of September 30th, 2010). Net of the aforementioned non-recurring effects, Group net profit would be € 53 million. Total direct and indirect premiums written3 totalled € 2,871 million (€ 3,749 million in the same period of 2010, -23.4%). In compliance with a strict underwriting policy, direct non-life premiums written increased from € 1,120 million as of September 30th, 2010 to € 1,144 million in the first nine months of 2011 (+2.1%).
The motor segment recorded premiums written of € 681 million, up 4.0% on the same period in 2010.
The result in the non-motor classes remained more or less stable with premiums written of € 463 million (-0.4%; +4% excluding general TPL and health). In the life segment direct premiums written recorded € 1,713 million. The decrease compared to the previous year (-34.5%) is in line with market trends and is mainly due to the fall in premiums written through the banking channel, which in 2010 benefited from a particularly favourable economic situation. Class III products increased by 69.9%, achieving premiums written of € 205 million against the € 120 million recorded as of September 30th, 2010.
The first nine months of 2011 confirmed the positive business performance. In particular, in the non-life segments the combined ratio4 was 96.9%%, recording a further improvement on the ratio recorded at the end of 2010 (97.7%) and in the first half of 2011 (97.4%). As at September 30th, 2011 consolidated shareholders’ equity stood at € 1,082 million (€ 1,353 million as of December 31st, 2010.
The Group’s solvency margin is 1.35 times the regulatory minimum5 . The decrease compared to June 30th, 2011 is mainly due to the falling value of Italian government securities held. Investments totalled € 15,607 million. Non-life business technical provisions amounted to € 2,920 million and life business provisions to € 12,831 million including financial liabilities.
The result of investments6 net of write-downs was € 288 million for the first nine months of 2011. The positive business performance is confirmed for the entire year.
The Managing Director of Cattolica Assicurazioni, Giovan Battista Mazzucchelli, announced: “Once again in the third quarter of this year, despite the extremely difficult economic and financial scenario, the Cattolica Group recorded a net profit as a result of the continued positive business performance. The upward trend of the business efficiency (with a further improvement in the already satisfactory combined ratio) gives a positive result, regardless of the necessary write-down in Greek government securities held, and affected in the meantime by the increase in the IRAP tax rate. The business results are in line with forecasts even if fears regarding future financial position trends and the sovereign debt crisis remain strong”.
In accordance with art. 154-bis, paragraph 2 of the Consolidated Law on Finance, the executive appointed to draw up the corporate accounting documents, Giuseppe Milone, states that the accounting information disclosed in this press release corresponds with the accounting documents, books and records. The Company confirms that the Interim Report as of September 30th, 2011 of the Cattolica Group will be made available to the public at the registered offices and from Borsa Italiana S.p.A. in accordance with the methods and deadlines required by laws and regulations in force. The Report will also be available on the corporate web site www.cattolica.it.
1 The interim report for the third quarter of 2011 was drawn up on the basis of Article 154-ter of the Consolidated Finance Law and Consob Communication no. DEM/8041082 of April 30th, 2008, and does not represent interim financial statements drawn up according to IAS 34.
2 € 15 million impairment relating to Greek government securities and € 2 million to other securities. These values are net of tax effects and shadow accounting effects.
3 Includes insurance premiums and life business investments as defined in IFRS 4.
4 Combined ratio for retained business: 1 – (Technical balance/net premiums), including other technical items.
5 The solvency margin as of September 30th, 2011 was calculated assuming application of the provisions of anti-crisis measures.
6 Excluding investments where the risk is borne by policyholders, gross of related tax effects.