Corporate›FinancialUnipol Gruppo: first half 2022 consolidated results approved

• Consolidated net profit up to €684m compared to €652m at 30 June 2021
• Direct insurance income increased to €6.6bn (+1.2%)
• • Non-lifebusiness: €4.2bn (+5.8%) of which €2.0bn MV and €2.2bn Non-MV

Positive performance in all the lines of business of the ecosystems:

1. Mobility: €2.2bn (+1.9%)

1. Welfare: €825m (+13.6%)

• • 1. Property: €1.2bn (+8.3%)
  • Life business: €2.5bn (-5.7%)
• Combined Ratio net reinsurance of 94.1%
• Consolidated solvency ratio of 201%1
• UnipolReC: sale of the loan portfolio successfully concluded

• The figure should be taken as provisional as the supervisory authorities will be notified of the definitive result in accordance with legally required deadlines.

Bologna, 5 August 2022

The board of directors of Unipol Gruppo S.p.A., which met yesterday under the chairmanship of Carlo Cimbri, approved the consolidated results as at 30 June 2022.

The Unipol Group ended the first half of 2022 with a consolidated net profit of €684m, up on the figure of €652m for the corresponding period of the previous year. There was a positive effect of €318m (€138m in the first half of 2021) on the net result for the first six months of 2022 resulting from the consolidation of BPER Banca using the equity method, with the BPER Banca result influenced in turn by the effects of accounting for the badwill arising from the acquisition of Carige (equal to €236m). Excluding the extraordinary effects resulting from consolidation of the BPER results, the normalised consolidated net result amounts to €405m (compared to a normalised result for the first half of 2021 of €386m2).

Direct insurance income, including reinsurance ceded, stood at €6,632m in the first half of 2022, up (+1.2%) on the figure of €6,552m recorded at 30 June 2021.

• The normalised result for the first half of 2022 excluded certain non-recurring effects resulting from the consolidation of BPER using the equity method, comprising the positive economic component connected to the increase from 18.9% to 19.9% of the total stake held by Unipol in BPER and the badwill recognised by BPER following the acquisition of 80% of the Banca Carige capital. The result for the first half of 2021 excluded the effects of the agreement relating to settlement of the actions for liability taken against former directors and statutory auditors of Fondiaria-Sai and Milano Assicurazioni, those relating to the tax realignment of goodwill and property, and the badwill recognised by BPER in view of the acquisition of former UBI Banca and Banca Intesa Sanpaolo branches.

Direct income from the non-lifebusiness at 30 June 2022 amounted to €4,152m, a significant increase (+5.8%) over the figure of €3,923m as at 30 June 2021, with a positive performance in all the ecosystems in which the Group operates. Along with the other main Group companies, the insurance company UnipolSai contributed to this result, with non-life premiums of €3,390m (+2.5%). UniSalute collected premiums of €301m (+10.5%), Arca Assicurazioni reported premiums of €125m (+46.8%) while Linear reported total premiums of €99m (+5.4%).

The MV business was up by 1.1% over the previous period, recording premiums of €1,967m. Even though there was a progressive recovery in the frequency of claims in the Motor TPL division, in a strongly competitive environment, average premium values do not yet reflect the current scenario of a strong resumption of movement after the limitations imposed by the pandemic. On the other hand, the accessory insurance cover included in the vehicle comprehensive and collision division continues to expand.

The performance recorded in the non-MV business was highly positive, with premiums of €2,184m, and a 10.5% increase over the first half of 2021, with all the main divisions of the business and all sales channels of the Group having contributed to that result.

The bancassurance business in which Arca Assicurazioni (€125m; +46.8%) and Incontra (€93m; +85.7%) operate is showing strong growth. This model added value to Unipol's distinctive know how through the branches of the various banking partners where Group products are sold.

The combined ratio, net of reinsurance, as at 30 June 2022 amounted to 94.1% (91.1% direct business) compared to a figure of 92.6% recorded at 30 June 2021 (91.4% direct business). The loss ratio, net of reinsurance, stood at 65.6% (compared to 65.0% for the first half of 2021), while the expense ratio, net of reinsurance, stood at 28.4% (compared to 27.5% at 30 June 2021). Claims were affected, inter alia, by the recovery in the frequency of claims made in the Motor TPL division, which were still benefitting from the restrictions imposed on the movement of people in the first half of 2021. The performance in the other divisions is positive along with maintenance of the reserving of claims for previous financial periods indicated by significant savings on claims paid.

UnipolRental, the Group long-term rental company, ended the half-year period with a further significant increase in the contracts acquired (approximately 70,000 compared to approximately 60,000 at the end of 2021) thanks in part to the excellent sales results achieved by the UnipolSai agencies. The total number of vehicles registered in the first half of 2022 amounted to 11,857 compared to 7,241 for the same period of the previous year. Revenue amounted to €171.2m and the net profit amounted to €13.6m.

The pre-taxresult for the non-lifebusiness amounted to €627m compared to €618m recorded in the first six months of 2021. Net of the non-recurring effects, the result amounted to €516m compared to €517m for the first half of 20212.

The Mobility Ecosystem reported income of €2,155m (+1.9%) and grew its position along the entire mobility life-cycle through UnipolRental and UnipolMove, the new electronic toll collection system which already placed approximately 300,000 devices in the first 5 months of distribution; the Welfare Ecosystem reported income of €825m (+13.6%), with a significant increase in the health area (income €472m, +20.5%), with UniSalute in constant growth (€301m, +10.5%); finally, with income of €1,171m, the Property Ecosystem recorded 8.3% growth.

The Unipol Group reported direct income of €2,480m in the life business, down 5.7% compared to the figure of €2,629m recorded in the first six months of 2021. The income mix was mainly directed towards hybrid and unit-linked products, in line with a strategy aimed at reducing capital absorption and the minimum guaranteed rate, with about 45% of the reserves already eliminated as at 30 June 2022.

In this context, UnipolSai reported €1,261m in direct income (-10.6% compared to the first half of 2021 which had benefitted from certain one-off collective/corporate contracts), while in the bancassurance channel, Arca Vita, along with its subsidiary Arca Vita International, reported direct income of €1,190m (+2.1% compared to €1,165m in the first half of 2021).

The pre-taxresult for the life business amounted to €145m compared to €111m in the first six months of 2021 (normalised figure of €104m). The growth was linked to an improvement in both the technical and financial margin increases benefitting from the framework of increasing current and prospective interest rates.

Real Estate Business

Acquisitions were made during the half-year period of over €200m, favouring prestigious locations in Rome and the logistics sector. Work continued on the construction of the new multi-storey building to be used as offices in Piazza Gae Aulenti in Milan, along with the restructuring and development of the property assets. The tower was designed and built with a view towards obtaining the highest level of energy and water savings, along with the ecological quality of the interiors (Leed Platinum certification).

There was a pre-taxloss of €18m in the business compared to a loss of €11m at 30 June 2021 (with a normalised loss of €22m).

Holdings and Other Businesses

With regard to the other businesses that the Group operates in, there has been a significant recovery in the hotel sector in particular for the summer season. For the most part, the other Group businesses broke even.

There was a pre-taxprofit of €114m in the holdings and other businesses compared to €25m at 30 June 2021. The corresponding normalised results amount to a loss of €54m for the first half of 2022 and a loss of €57m for the first half of 2021.