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The application of the new accounting standards weighs on Unipol’s first-half profit, which also show a substantial increase in direct insurance premiums to €7.5bn (+12.6% compared to 30 June 2022) and a leap over 300 % of the Solvency Ratio of the subsidiary UnipolSai. Furthermore, a probable and greater impact of atmospheric events on the accounts of the group’s non-life companies is expected for the current year.
The numbers
The consolidated net result of the Bologna holding amounted to 517 million, down by 24.4% compared to the same period a year ago. However, a note specifies, extraordinary components were reflected in the first half of 2022 for approximately 279 million euros linked to the pro-rata consolidation of the result of Bper Banca: moreover, «the 2022 figure, restated for comparative purposes in application of the new accounting standards, is equal to 433 million». To this it should be added that, given the rule on the taxation of extra bank profits, the 2023 net profit will include “Bper’s contribution of 113 million” already determined “net of the negative impact of the extraordinary tax estimated at 28 million”.
The combined ratio, whose calculation criterion has been revised in relation to the new income statement formats envisaged by IFRS 17, stands at 97.1% against 94.4% recorded in the first quarter of 2023 and against 94.1 % of a year ago. Its increase, specifies the holding company, «is mainly attributable to an increase in the claims ratio, both in terms of frequency and increase in the average cost of the Motor TPL class, and to the effects of the recent flood in Emilia Romagna which impacted this indicator for about 2.5 percentage points”. Funding, as mentioned, is up to 7.5 billion. In particular, Non-Life reached 4.3 billion (+4.2%) with a pre-tax result of 501 million euro, compared to 627 in the first half of 2022, while Life saw premium income rise by 26.8% to 3.1 billion with an almost stable result at 143 million. As regards Ecosystems, positive performances from Mobility (2 billion, +1.6%), Welfare (900 million, +9.6%) and Property (1.2 billion, +5.1%).
Damage sector
In particular, the MV segment increased by 1.6% compared to the previous year with premiums of 2 billion, «positively affected by tariff increases aimed at containing the effects of recovery in frequency and increase in the average cost of claims linked to the ongoing inflation dynamics”. On the other hand, the growth in Non-Motor premiums was more sustained, amounting to 2.327 billion, with an increase of 6.5% on the first half of 2022, a result which benefited in particular from the commercial push practiced in the Health sector. Finally, on Non-Life, the holding underlines that “considering the recurrence of atmospheric events which are repeatedly affecting the national territory, a greater impact of these events on the accounts of the group’s non-life insurance companies is probable for the current year”.
The UnipolSai accounts
Green light also for the accounts of the subsidiary UnipolSai, which show a consolidated net result of €431m (+2% compared to 30 June 2022 and a marked increase compared to the €176m that would have been achieved a year ago using the new accounting standards). The Combined ratio rose to 97.1% against 94.1% a year ago, while UnipolSai’s individual solvency ratio as at 30 June 2023 was 315% (288% at the end of 2022). The consolidated solvency ratio based on economic capital is 301% (274% as at 31 December 2022).