Rome, February 5th 2004 UBS Italian Financial Services Conference 2004 Growth after restructuring Rome, February 5th 2004 Andrea Battista Chief of Bancassurance Department Giorgio Zampieri Chief Financial Officer
Investments: - 39%
Costs: - 50%
Rome, February 5th 2004
DUOMO RESTRUCTURINGIn 2 years alignment of COMBINED RATIO with Cattolica
Grafico1
1.04612419211.1570888564
0.98441121811.1785294997
0.97153809261.009962058
1.00580734371.0059754663
Cattolica
Duomo
Foglio2
Combined ratio
1999200020012002
Cattolica104.6%98.4%97.2%100.6%
Duomo115.7%117.9%101.0%100.6%
Premi competenza
Cattolica348,938422,355567,144683,445
Il Duomo Ass.ni164,499184,435164,725262,741
Saldo Tecnico
Cattolica-16,0956,58416,142-3,969
Il Duomo Ass.ni-25,841-32,927-1,641-1,570
Duomo restructuring: allignment of combined ratio
Foglio2
00
00
00
00
Cattolica
Duomo
Foglio3
Rome, February 5th 2004
RESTRUCTURING DURING GROWTHRestructuring of DuomoReal estate spin off Transfer to Parent Companys divisions of 3 subsidiaries:Cattolica on line division Verona Assicurazioni divisionCattolica Aziende division (ongoing)
Exploitation by the Parent Company of know-how already developed and achievement of economies of scale and scope Use of the 3 companies vehicles to develop strategic business areas with the acquisition of new know-how
Rome, February 5th 2004
TUA: AN INNOVATIVE GROWTH DRIVER TUA Assicurazioni is the First insurer in Italy which INNOVATES the sales model in the AGENT CHANNEL and CUSTOMER RELATIONSHIPS with new products created through deep market research (e.g. focus groups) readdressing the role of agents, focusing solely on commercial activities based on a FRANCHISING logic Targets in 2006Agencies 200Clients90.000 Non-life premiums 140 mn /euro
Rome, February 5th 2004
Rome, February 5th 2004UBS Italian Financial Services Conference 2004AGENDAA history of growthGrowth after restructuringDrivers for sustainable growthTargets
Rome, February 5th 2004
NEW SCENARIO: PATENTE A PUNTIJuly 2003 Introduction in Italy of the penalty points system for driving licences
An opportunity for our clients or a driver to increase profitability of the insurance system??We havent enough statistical information.We need at least one year to provide an answer to this question
Rome, February 5th 2004
Since 1994 driver-customised tariffs: UNIQUE in Italy
In 9M2003 Motor premium growth +16,67% with 1,835,000 policies and 1,150,000 clients Duomos Motor TPL portfolio entirely renewed and aligned with that of Cattolica: 487,000 new Motor policies at September 30th 2003
Significant savings in terms of costs for XL reinsurance following a major decline in the frequency of the most significant motor TPL claims19981999200020012002228291447651827CAGR 38%MOTOR A SUCCESSFUL STRATEGYFigures in mln/euro20022003Claims frequencyChange %9.6%9.8%- 2.0%Market*Cattolica Group20022003*Change %9.0%9.0% -%Claims payed avg cost3,5203,268+7.7%3,3073,120+6.0%*Cattolica estimate
Rome, February 5th 2004
LIFE DRIVERS OF GROWTH AND PROFITABILITY*Other administrative expenses/average life technical reserves, not annualized as at September 2003
Rome, February 5th 2004
Market share no. ofbranchesBANCASSURANCEBancassurance premiumsCAGR 98-0347.3%Figures in mln/euroBancassurance Agencies and other channels~3,050 branches as at 31.12.2003
Rome, February 5th 2004
LIFE BUSINESSIndex: 27.3%Traditional: 48.9%Index and Unit: 41.6%Traditional: 58.4%Market al 30.09.2003Cattolica Group 30.09.2003L I FE *Figures in mln/euroBank branches (no.)19981999Premiums*20002,0667761,517 3562,6531,789200120022,7482,1692,7172,043Premiums/branch(000) 376 2356747897522003E3,0532,468808Unit: 23.8%
Rome, February 5th 2004
Rome, February 5th 2004UBS Italian Financial Services Conference 2004AGENDAA history of growthGrowth after restructuringDrivers for sustainable growthTargets
Rome, February 5th 2004
TARGETS 2003-20052005E2004E2003E Non-life net premiums1,3881,5621,719264153CAGR11.3%42.8%Underwriting result Non-Life businessLife net premiumsUnderwriting result Life business2,7272,9653,1796674921551742198.0%18.1%18.9%Pre-tax profit10811714917.5%Consolidated net income9610313317.7% Group net income
Rome, February 5th 2004
ADJUSTED ROE
Grafico1
0.05110082980.0668159562
0.06319862730.081367855
0.1020.125962261
0.1030.1275732776
0.1230.1507989665
Business plan ROE (1)
Adjusted ROE (2)
RATIOS
Indicatori Gruppo Cattolica
Indicatori danniFonte (codice voce del bilancio consolidato annuale)31.12.200130.09.200231.12.200230.09.2003
1Premi di competenza dannivoce 5 C.E.783,092695,603971,782818,278
2Sinistri di competenzavoce 15 C.E.585,367542,482778,201627,041
3Altre spese di amministrazione dannivoce 22 C.E.53,75041,81959,44945,596
4Spese di acquisizione e incasso dannivoci (18+19-20+21-23) del C.E.118,48391,576123,055111,100
5Spese di gestione dannivoce 24 C.E.172,233133,395182,504156,696
6Saldo tecnico dannivoce 27 C.E.11,8044,468-5,55718,345
7Riserve tecniche danni nette della riass.voce 68-33 di S.P.1,271,6871,441,5371,567,6771,769,602
Claims ratioSinistri comp.(2) / Premi comp. (1)74.75%77.99%80.08%76.63%
G&A ratioAltre sp. Amm.ne (3) / Premi comp. (1)6.86%6.01%6.12%5.57%
Commission ratioSp. Acq. (4) / Premi comp. (1)15.13%13.16%12.66%13.58%
Total Expense ratioSpese gest. (5) / Premi comp. (1)21.99%19.18%18.78%19.15%
Combined ratio1- (6/1)98.49%99.36%100.57%97.76%
Rapporto Rt/Premi (netti della riassicurazione) (^)Riserve tecniche (7) / Premi di comp. (1)162.39%207.24%161.32%216.26%
Indicatori vitaFonte (codice voce del bilancio consolidato annuale)31.12.200130.09.200231.12.200230.09.2003
1Premi di competenza vitavoce 30 C.E.2,291,5431,634,2242,456,4782,063,669
2Altre spese di amministrazione vitavoce 68 C.E.22,53716,14619,76815,482
3Spese di acquisizione e incasso vitavoci (64+65-66+67-69) del C.E.89,29662,77995,38275,398
4Spese di gestione vitavoce 70 C.E.111,83378,925115,15090,880
5Saldo tecnico vitavoce 78 C.E.35,65328,12339,79842,850
6Riserve tecniche lorde(voci 72+ 74 del S.P.)7,001,4748,179,8319,141,81910,809,017
Riserve classe Cvoce 72 S.P.3,200,6483,458,2593,921,4514,632,073
Riserva classe Dvoce 74 S.P.3,800,8264,721,5725,220,3686,176,944
G&A ratioAltre sp. Amm.ne (2) / Premi comp. (1)0.98%0.99%0.80%0.75%
Commission ratioSp. Acq. (3) / Premi comp. (1)3.90%3.84%3.88%3.65%
Total Expense ratioSpese gest. (4) / Premi comp. (1)4.88%4.83%4.69%4.40%
Saldo tecn. Vita (5) / Premi comp.1.56%1.72%1.62%2.08%
Altre sp. Amm.ne (2) / Riserve tecn. Medie (6)0.37%0.21%0.24%0.16%
(^): non annualizzato nei periodi infrannuali
R.O.E.Fonte (codice voce del bilancio consolidato annuale)31.12.200130.09.200231.12.200230.09.2003
1Risultato di periodo di Gruppovoce 57 di S.P.45,50045,35256,99965,122
2Patrimonio Netto dell'esercizio prec.voce 158 di S.P.884,684896,109896,109907,696
3Patrimonio Netto a fine periodovoce 58 di S.P.896,109871,011907,696928,001
4R.O.E. contabile di Gruppo (^)Ris.(1) / media(P.N. es (3) + P.N. es. prec (2))5.1%5.1%6.3%7.1%
5R.O.E. contabile di Gruppo senza risultati nel P.N.(^)5.4%5.4%6.7%7.6%
Elementi da rettificare per il calcolo del R.O.E. adjusted
Ammortamento della differenza da consolidamento5,8844,7286,7705,724
Ammortamento del portafoglio PAV8,6876,8379,1166,607
Altre voci: condono4,726
Effetto fiscale-3,583-2,752-3,669-2,527
6Totale10,9888,81312,2179,804
7Risultato rettificatoRisultato di periodo (1) + altri el. (6)56,48854,16569,21674,926
8R.O.E. adjusted di Gruppo senza risultati nel P.N.(^)6.7%6.5%8.1%8.7%
(^): non annualizzato nei periodi infrannuali
In azzurro dati non forniti nella trimestrale depositata (P.N. trimestrale)
R.O.E. da Piano StrategicoFonte (codice voce del bilancio consolidato annuale)31.12.200231.12.200331.12.200431.12.2005
1Risultato di GruppoPiano Strategico96,400103,400133,400
2Elementi da rettificare (amm.ti)elaborazione interna15,88615,88615,886
3Effetto fiscaleelaborazione interna-3,373-3,373-3,373
4Totale elementi da rettificareelaborazione interna12,51312,51312,513
5Risultato di Gruppo rettificatoPiano Strategico108,913115,913145,913
6P.N. di GruppoPiano Strategico975,0001,042,0001,130,000
7P.N. di Gruppo senza risultato nel P.N.Piano Strategico (media dei P.N.)864,649908,600967,600
9R.O.E. adjusted da Piano senza ris. nel P.N. (5/8)12.60%12.76%15.08%
&R&"Garamond,Antiqua"(dati in migliaia di euro)
&C&F - &A&R&D - &T
Foglio1
2001A2002A2003E2004E2005E
Business plan ROE (1)5.11%6.32%10.20%10.30%12.30%
Adjusted ROE (2)6.68%8.14%12.60%12.76%15.08%
Foglio1
00
00
00
00
00
Business plan ROE (1)
Adjusted ROE (2)
Foglio2
20012002H1-03H1-029M039M02200320042005
Lordi1,053.01,267.4705.0600.0982.0871.01,454.01,617.01,782.0
Netti comp783.0971.8553.0471.0818.0696.01,144.01,296.51,455.5
% conservazione74.4%76.7%78.4%78.5%83.3%79.9%78.7%80.2%81.7%
input
Combined ratio2001A2002A2003E2004E2005E
Underwriting result left sc)11.80-5.5625.9041.3053.10
Premi netti comp783.09971.781,144.01,296.51,455.5
Combined ratio (right sc)98.49%100.57%97.74%96.81%96.35%
Foglio2
00
00
00
00
00
&A
Page &P
46% CAGR
Underwriting result left sc)
Combined ratio (right sc)
Rome, February 5th 2004
This document has been prepared by Cattolica Assicurazioni based on data from internal sources (year-end financial statements, consolidated group financial statements, internal reporting and other company documentation, etc.) for the sole purpose of providing information on the groups results and future operating strategies. Given this, it can in no way be used as a basis for possible investment decisions. It is not a solicitation to buy or sell shares. No part of the document can be taken to be the cause of or reason for agreements or commitments of any type or kind whatsoever, nor can it be relied upon for agreements and commitments.Information contained in the document concerning forecasts has been prepared according to various assumptions and/or elements that might ultimately materialise differently to present expectations. Results might therefore change. Cattolica therefore in no way provides any guarantee, either explicit or tacit, as regards the integrity or accuracy of the information or opinions contained in the document, nor can any degree of reliability be attributed to the same, inasmuch as it has not been subjected to independent verification. Responsibility for use of the information and opinions contained in the document lies solely with the user. In any case Cattolica, within legally admissible limits, will not consider itself liable for any damages, direct or indirect, that third parties might claim due to utilisation of incomplete or inaccurate information. For any further information concerning Cattolica Assicurazioni and its related group, reference must be made exclusively to the information given in the annual, quarterly, and interim reports and financial statements. The full versions of these documents, which constitute the factual basis and proof for all legal purposes, are lodged at the companys registered offices and are available to anyone requesting them. Reproduction or full or partial publication and distribution of the information contained herein to third parties is prohibited. Acceptance of the present document automatically signifies recognition of the aforesaid constraints.
DISCLAIMER
Rome, February 5th 2004
UBS Italian Financial Services Conference 2004
Growth after restructuring Rome, February 5th 2004
Andrea BattistaChief of Bancassurance Department
Giorgio ZampieriChief Financial Officer
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