Società Cattolica di Assicurazione Società Cooperativa : S&P conferma il rating di Cattolica a BBB e rivede a rialzo l’outlook a stabile. In miglioramento anche il rating delle emissioni obbligazionarie a BB+.

Società Cattolica di Assicurazione - Società Cooperativa

Sede in Verona, Lungadige Cangrande n.16

C.F. 00320160237 - Iscritta al Registro delle Imprese di Verona al n. 00320160237

Società iscritta all'Albo delle Società Cooperative al n. A100378

COMUNICATO STAMPA

S&P CONFERMA IL RATING DI CATTOLICA A BBB E RIVEDE A RIALZO L'OUTLOOK A STABILE. IN MIGLIORAMENTO ANCHE IL RATING DI ENTRAMBE LE EMISSIONI OBBLIGAZIONARIE DA BB A BB+. STAND- ALONE CREDIT PROFILE IMMUTATO A bbb+.

Verona, 26 ottobre 2020. Standard & Poor's ha confermato oggi il rating di Cattolica a BBB adeguando l'outlook, secondo quanto previsto dai criteri dell'Agenzia, a quello del debito sovrano della Repubblica Italiana, che in data 23 ottobre 2020 è stato rivisto da negative a stable.

L'Agenzia ha inoltre rivisto a rialzo il rating da BB a BB+ di entrambe le emissioni obbligazionarie quotate emesse dal Gruppo Cattolica, in quanto il rafforzamento del Solvency II ratio di Gruppo e l'aumento di capitale riservato a Generali hanno ridotto significativamente il rischio del differimento della cedola.

Lo stand-alone credit profile (SACP) di Cattolica è confermato a bbb+, più elevato di un notch rispetto al financial strength rating BBB. Sebbene l'aumento di capitale abbia rafforzato il financial risk profile di Cattolica che viene ora valutato da Standard and Poor's "satisfactory", l'agenzia mantiene invariato il rating soprattutto in considerazione dell'inasprirsi delle incertezze economiche e del mercato in generale.

SOCIETÁ CATTOLICA DI ASSICURAZIONE

Cattolica Assicurazioni è uno dei maggiori attori del mercato assicurativo italiano e unica società cooperativa di settore quotata alla Borsa di Milano, dove è presente dal novembre 2000. Con oltre 3,5 milioni di clienti che si affidano alle soluzioni assicurative e ai prodotti distribuiti, il Gruppo registra una raccolta premi di quasi 7 miliardi di euro (2019). Cattolica conta, a livello di Gruppo, su 1.378 agenzie diffuse su tutto il territorio italiano, sia nei grandi che nei piccoli centri, e su una rete di 1.886 agenti. Per ulteriori informazioni: www.cattolica.it/profilo-societario

CONTATTI

Chief Financial Officer	Media Relations Office
Atanasio Pantarrotas, CFA	Erminia Frigerio - Media Relations
Tel. [phone]	[e-mail]
[e-mail]	Tel [phone]
	Angelo Cipriani - Media locali
	Tel. [phone]
	[e-mail]

COMUNICATO STAMPA

Comin & Partners

Giuseppe Stamegna

[e-mail]

Tel [phone]

Research Update:

Societa Cattolica di Assicurazione Outlook Revised To Stable Following Similar Action On Italy; Tier 2 Debt Upgraded

October 26, 2020

Overview

• On Oct. 23, S&P Global Ratings revised its outlook to stable from negative on Italy (unsolicited; BBB/Stable/A-2).
• The ratings on Italian insurer Società Cattolica di Assicurazione (Cattolica) are limited by the sovereign credit rating, due to Cattolica's high exposure to Italian government bonds.
• We believe the group's operating performance has so far proven resilient to the COVID-19 pandemic.
• Cattolica has also finalized a €300 million reserved capital increase from Generali, which will materially improve capitalization and regulatory Solvency (SII) ratios and consequently reduce deferral risk on Cattolica's hybrids.
• We are therefore revising our outlook on Cattolica to stable from negative, affirming our 'BBB' long-term issuer credit rating on the insurer, and raising our rating on Cattolica's hybrids instruments from 'BB' to 'BB+'.
• The stable outlook reflects that on Italy.

PRIMARY CREDIT ANALYST

Taos D Fudji

Milan

(39) 02-72111-276

taos.fudji

@spglobal.com

SECONDARY CONTACT

Eugenio Manzoli

Paris

+ 33 1 40 75 25 53

eugenio.manzoli

@spglobal.com

Rating Action

On Oct. 26, 2020, S&P Global Ratings revised its outlook on Società Cattolica di Assicurazione (Cattolica) to stable from negative. At the same time, S&P Global Ratings affirmed its 'BBB' long-term issuer credit rating on Cattolica, and raised its issue rating on the insurer's Tier 2 notes to 'BB+' from 'BB'.

www.spglobal.com/ratingsdirect

October 26, 2020 1

Research Update: Societa Cattolica di Assicurazione Outlook Revised To Stable Following Similar Action On Italy; Tier 2 Debt Upgraded

Rationale

The outlook revision follows that on Italy (for more information, see "Italy Outlook Revised To Stable From Negative; Ratings Affirmed At 'BBB/A-2'," published Oct. 23, 2020, on RatingsDirect).

We believe Cattolica benefits from the improved credit risk associated with Italian sovereign bonds. As of June 30, 2020, the insurer had invested about €13 billion in Italian government securities, corresponding to the 52.3% of its total investments and to 5.5x its consolidated shareholders' equity. Because of its material investment exposure to Italian assets, we cap our rating on Cattolica at the long-term sovereign credit ratings on Italy.

Cattolica's stand-alone credit profile (SACP)--our opinion of its creditworthiness before accounting for sovereign risk--is unchanged at 'bbb+', one notch higher than the ratings. Although the capital increases strengthen Cattolica's financial risk profile to satisfactory, we still believe a 'bbb+' SACP well reflects the insurer's intrinsic creditworthiness, especially given heightened market and economic uncertainty.

The regulator approved Cattolica's change of legal status in that of a joint-stock company, and holders of only the 11.64% of shares exercised their right of withdrawal. We understand, therefore, that Italian insurer Generali has completed its €300 million committed capital increase in Cattolica this month. Thereafter, Cattolica will have a month to offer the withdrawn shares at €5.47 each to existing shareholders, in an attempt to reduce the €111 million disbursement linked to the share repurchase. Subsequently, the insurer will proceed with the additional €200 million capital increase with option rights for all shareholders, which we expect will conclude in January 2021.

The capital increase significantly reduces the likelihood that Cattolica could defer the coupon payment on its two Tier 2 rated instruments, so we are applying the usual double notching for rating junior subordinated debt issue, reflecting their subordination and interest deferral features, and upgrading the hybrids to 'BB+' from 'BB'.

This action on the hybrids reverses the downgrade on June 10, when we widened the notching following the sharp decline in Solvency II ratio, due to lower risk-free rates, wider spreads on Italian government bonds, and a decrease in the volatility adjustment. Since then, the favorable Italian spread dynamics have brought the SII ratio back to 154% as of August, and we expect the capital increases to materially strengthen it further, building a buffer to cope with potential market volatility.

We expect Cattolica's operating performance to remain resilient in 2020 despite COVID-19, because the company has confirmed its pre-pandemic guidance. Despite the drop in gross written premiums following strict lockdown measures in Italy from March-May, we believe that the sound technical performance in the property and casualty business lines, especially in motor, will enable the company to reach net income of above €100 million this year (including minority interests and excluding goodwill impairments).

Outlook

The stable outlook mirrors that on Italy.

Upside scenario

We could upgrade the rating on Cattolica over the next 12-24 months following an upgrade of Italy.

www.spglobal.com/ratingsdirect

October 26, 2020 2