Unipol (UNI) Q2 2024 earnings summary

Executive summary

• Consolidated net profit for H1 2024 reached €555m, up 7.4% year-over-year, with total net result including banking associates at €632m, and group net result at €511m; all business ecosystems—Mobility, Welfare, and Property—reported positive income growth.

• Direct insurance income totaled €8.2bn, a 10.4% increase year-over-year, with premium collection up 10.5% to €8,165m, driven by both Non-Life (+7.8%) and Life (+14.0%) segments.

• Solvency 2 ratio improved to 221% from 215% at FY23, reflecting strong capital adequacy.

• The group completed a major corporate rationalisation, acquiring nearly all shares of UnipolSai, initiating a merger and delisting process.

• Robust top-line growth in P&C, especially in health, with technical profitability in non-motor improved due to repricing and derisking actions.

Financial highlights

• Non-Life premium collection reached €4.6bn (+7.8% year-over-year), with strong growth in Mobility (+9.5%) and Welfare (+10.6%).

• Life premium collection totaled €3.6bn (+14.0% year-over-year), with traditional products up 31.7% and bancassurance channel up 47.4%.

• Combined ratio improved to 93.1% from 97.5% in H1 2023, indicating better underwriting performance.

• Pre-tax result for non-life business was €508m (+13.5%), life business pre-tax result was €139m (slightly down from €143m), and banking associates contributed €121m.

• Shareholders’ equity increased to €9,125m at 1H24 from €7,967m at FY23.

Outlook and guidance

• Full-year income from consolidated operating activities is expected to align with the 2022-2024 Strategic Plan targets, barring unforeseen market or climate events.

• Inertial price increases in motor expected to continue offsetting claim inflation; no immediate need for further tariff hikes.

• Dividend policy for 2024 to be addressed later in the year, with more focus on the 2025-2027 industrial plan.