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Results as at March 31st, 2013 approved

Results as at March 31st, 2013 approved
31 March 2013

ƒ CONSOLIDATED NET PROFIT OF € 24 MILLION (€ 19 million at March 2012; +26.3%)

ƒ TOTAL PREMIUMS WRITTEN € 1,073 MILLION (+24.9%) o Direct business non-life premiums € 406 million (+2.1%) o Direct business life premiums € 654 million (+45.4%)

ƒ COMBINED RATIO 94.5% DOWN FROM 96.5% AS AT MARCH 2012

ƒ SOLVENCY MARGIN EQUAL TO 1.55 TIMES THE SUPERVISORY MINIMUM1

 

Verona, May 15th, 2013

The Board of Directors of Cattolica Assicurazioni, chaired by Paolo Bedoni, today approved the Interim Management Report as at March 31st, 2013 of the Cattolica Group2 .

The first quarter of 2013 reported profit on the rise, a significant pick up in life premiums and an improved business trend in the non-life classes. The first three months of the year revealed a consolidated net profit of € 24 million3 , compared with € 19 million in the same period in 2012 (+26.3%).

The Group net profit4 amounted to € 21 million, compared with € 16 million in the previous year (+31.3%). Total premiums written for direct and indirect life and non-life business5 amounted to € 1,073 million, up 24.9% with respect to the € 859 million in the previous year.

Non-life business

Premiums written for direct business rose from € 398 million as at March 31st, 2012 to € 406 million at the end of March 2013 (+2.1%).

In the motor insurance segment, premiums written amounted to € 248 million, up 3.8% when compared with March 31st, 2012.

Non-motor classes, with premiums written for € 158 million, were essentially in line with the same period last year (€ 159 million). In the non-life sector, the satisfactory business performance was reflected in the combined ratio6 , which dropped from 96.5% as at March 31st, 2012 to 94.5%, disclosing a further improvement with respect to the end of 2012 (95.7%)

Life business

With regard to life business, direct premiums written came to € 654 million. The improvement with respect to the previous year (+45.4%) is mainly due to the premiums written for traditional Classes I (+60.3%) and V (+37.3%) which disclosed a clear pick up. Premiums written for Class III were also satisfactory (+12.3%), growing once again after a negative period. On a general note, the increase in premiums written was affected significantly by the banking channel (+70.9%).

Financial operations and balance sheet position

The result of investments7 came to € 125 million (compared with € 129 million as at March 31st, 2012). Investments amounted to € 16,100 million. Gross technical provisions for non-life business amounted to € 3,003 million (€ 3,014 million as at December 31st, 2012), while life provisions, inclusive of financial liabilities, came to € 12,302 million (12,323 million as at December 31st, 2012). The figures as at March 31st, 2013 confirm the Group’s balance sheet solidity with consolidated shareholders’ equity of € 1,610 million (€ 1,609 million as at December 31st, 2012).

The Group’s solvency margin8 comes to 1.55 times the regulatory minimum (unchanged with respect to December 31st, 2012, having taken into account the dividend proposal approved by the shareholders’ meeting held on April 20th, 2013).

Sales Network

The agency network at the end of March 2013 had 1,418 agencies and bank branches which place Group products as at March 31st, 2013 numbered 5,968.

Outlook for business activities

With regard to the year underway, characterised by a complex economic situation, an improved insurance operational trend in line is at present envisaged. Action continues to develop the non-life segment, as well as initiatives for the recovery of production on the life segment. The management of investments will continue in accordance with highly prudent criteria, in relation to the trend of the financial markets.

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The Chairman of Cattolica Assicurazioni, Paolo Bedoni, declared: "Cattolica continues to grow in a market situation which remains highly critical and it does so thanks to a strengthening of its competitive ability, a condition in turn necessary for seizing the opportunities which may derive from a pick up in the Italian and European economy which we hope is not far off. The results for the first quarter should be reported with particular satisfaction also because - within an extremely positive overview - we can reveal an improvement in life premiums written and a sharp revival of the banking channel where Cattolica’s presence is particularly qualified thanks to strategically important partnerships".

Cattolica Assicurazioni’s Managing Director, Giovan Battista Mazzucchelli, declared: “The figures for the first quarter of 2013 confirm the consolidation of the growth trend registered in the 2012 financial statements: the increase in profit (+26.3%) and total premiums written (+24.9%) has been accompanied by the positive figures of the combined ratio and the balance sheet. In detail, emphasis should be made of the turnaround in the trend in a key segment such as life insurance where the banking channel contributed considerably (+70.9%) to the noteworthy increase in premiums (+45.4%). Overall, we have confirmed the satisfactory retention ability of the Group in an economic cycle period still heavily affected by the recession and a market position favourable for a period of additional growth and development".

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The Executive appointed to draw up the corporate accounting documents, Giuseppe Milone, declares in pursuance of Article 154 bis, paragraph 2 of the Consolidated Finance Law that the accounting disclosure contained in this press release complies with the documental results, the books and ledgers and the accounting entries. The Company hereby discloses that the Cattolica Group’s Interim management report at March 31st, 2013 shall be made available to the public at the registered offices and on the company’s website www.cattolica.it, as per the formalities and by the deadlines envisaged by current legal and regulatory provisions. 

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1 It is hereby disclosed that the Company does not apply the IVASS anti-crisis regulations.

2 The interim management report relating to the first quarter of 2013 has been drawn up on the basis of Article 154 ter of the Consolidated Finance Law and Consob Communication No. DEM/8041082 dated April 30th, 2008 and does not represent interim financial statements drawn up in pursuance of IAS 34.

3 The profit was affected by writedowns on investments in the portfolio for approximately € 1 million. This is impairment on securities net of shadow accounting and tax effects.

4 Net of minority interests.

5 They include insurance premiums and life insurance investment policies as defined by IFRS 4. 

6 Combined ratio of retained business: 1 - (Technical balance / Net premiums) inclusive of other technical items.

7 Financial assets excluding investments whose risk is borne by the policyholders, gross of the tax effects.

8 It is hereby disclosed that the Company does not apply the IVASS anti-crisis regulations.