2018-2020 Business Plan
Cattolica 2020: tradition in motion
- Turn Cattolica into a more innovative and flexible player, ready to cope with future challenges.
- Reinforce and diversify Cattolica's business model, confirming market position and closeness to families and corporates.
- Increase of value for all the stakeholders.
The Plan aims to make Cattolica a more innovative, agile and reactive Group, ready to take on the challenges and opportunities of an increasingly competitive market, in a macroeconomic, yet challenging context.
The pillars of the Plan
The Plan’s strategy stands on three pillars: profitable growth, technical excellence and innovation & data management. Simplification and cultural transformation of the Company cross cut the strategic actions and stand at the basis of the Plan’s pillars. The combined action of these drivers aims at exploiting the strengths already available within the Company and allowing the increase of its performance.
Cattolica can count on 5 key assets the Plan leverages on:
- Large and loyal customer base (3.6M customers, families and SMEs; +1pp of Motor TPL retention vs market) 2 – Widespread coverage (1,500 loyal Agencies widespread all over the territory.
- Partnership with 2 out of the top 5 Italian banks).
- Motor business profitability (-4.5pp of Motor TPL loss ratio vs market; 4.9% Motor frequency vs 6.2% market average).
- Positioning on distinctive segments (Leader in the agricultural space; 8,500 voluntary entities insured).
- Solid capital position (-9pp financial leverage versus main players; SII ratio>180%).
Five improvement opportunities for the company:
- Innovation (Limited digitalisation; Traditional offering).
- Product and channel mix (46% Motor only customers; Focus on traditional Life products; Broker channel to be strengthened).
- Non-Motor profitability (+8pp Non Motor CoR vs market average).
- Life profitability (Limited Life profitability compared to peers).
- Productivity (Limited process automation; Complexity reduction).
The Plan will radically transform the Group thanks to the actions planned for each strategic pillar that, together with those actions of inorganic growth, aim at technical and operational excellence, profitable growth and new form of services for customers. The Life mix rebalancing actions (production change towards unit linked and traditional products with low capital absorption) as well as the Non-Life ones (focus on the development of the Non-Motor business), the benefits coming from the introduction of telematics, a new ad-hoc company for specific businesses, the contribution of the JV with Banco BPM, the process optimization activity and a stronger distribution model, will enable Cattolica to achieve ambitious targets at 2020.
Key financial target
The KPIs will be achieved through:
A tangible plan
- Plan organised in 21 projects, already activated, people in charge appointed and targets assigned.
- Targets under management’s control based on efficiency, technical excellence and external growth.
- Investment approval driven by business case.
- Close scrutiny of overall business plan projects under CFO responsibility.
- Weekly steering committees with the CEO and project leaders.
- Projects monitored weekly with dedicated KPI dashboard.
- Strengthened MBO aligned to Plan targets.
- Multidisciplinary teams and best talents involved.
- Enhancement of execution capacity throughtraining and selective recruitment.
Full transparency on strategy and execution of the Plan with annual updates to the markets.