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UNIPOL (UIPN.SG)

UNIPOL (UIPN.SG) (UNI.MI) Q1 2026 Earnings Call Transcript

Bullish Insurance - Diversified 17.96B Italy

Unipol Assicurazioni S.p.A., together with its subsidiaries, provides insurance products and services primarily in Italy. The company operates through Non-Life Insurance Business, Life Insurance Business, Banking Associates Business, and Other Business segments. It offers risk cover solutions for vehicles, such as car, motorcycle, truck, and boat; sports craft; travel and mobility; home and condominiums; work related to businesses, traders, professionals, and legal protection; accident and health protection; and investments and welfare. The company also provides life insurance products; bancassurance; and reinsurance services. In addition, it is involved in the operation and management of real estate properties; operation of hotels, residences, and resorts through leases, franchises, and management; agricultural, wine, healthcare facilities, and port facilities; provision of vehicle and glass repair services; mobile payments, telematics, and response services to assistance request; supplies anti-theft systems; and telemedicine, home care services, physiotherapy, and social care. Further, the company offers digital health platform; property services to homes and condominiums, and administrators and owners; and electronic payment and e-money services, as well as supplementary pension solution and saving and investment plan. It distributes its products through direct sales; broker; agency, banking, and craftsmen network; and franchise administrators. The company was formerly known as Unipol Gruppo S.p.A. and changed its name to Unipol Assicurazioni S.p.A. in January 2025. Unipol Assicurazioni S.p.A. was founded in 1961 and is based in Bologna, Italy.

Unipol delivers solid 2025 results, over-delivering on the first-year KPIs, with strong solvency, a robust dividend framework, and disciplined capital deployment to support growth opportunities.

⭐ Key Highlights

Strong 2025 results vs plan
Unipol reports year 1 of its industrial plan above targets across principal KPIs, with robust insurance and investment performance driving solid profitability.
Insurance group result and dividend
Insurance group result exceeds EUR 1.2 billion and supports a proposed dividend of EUR 1.12 per share (about 71% of insurance group earnings), seen as a floor for future years.
Solvency and capital generation
Solvency ratio at 281% (insurance group) driven by strong organic capital generation, contributing to a comfortable balance sheet despite a higher nat-cat load in non-motor.
Prudent nat-cat and new business value focus
Positive technical profitability despite prudent nat-cat reserves; new business value in line with targets, with Life premium growth helped by pension funds but emphasis on higher-margin products.
Capital deployment stance
No M&A on the table currently; AT1 issuance completed earlier, and capital is viewed as a buffer to exploit future growth opportunities, not to be redistributed immediately.

✔Positive Signals

  • Insurance group result above EUR 1.2 billion driving EUR 1.12 dividend per share
  • Solvency at 281% (insurance group) and strong organic capital generation
  • Motor and non-motor premium growth across P&C, especially health insurance
  • AT1 issuance completed; capital ready to fund growth opportunities
  • Clear floor on dividend (EUR 0.80 per share floor) with potential over-delivery

✖Negative Signals

  • Nat-cat load higher in non-motor affecting technical profitability
  • Short-term volatility in real estate writedowns and occasional provisioning (e.g., San Donato tower, tax-credit investments)
  • Economic variance can move CSM and profitability; dependence on financial markets for one-off gains
  • Regulatory/geo-political uncertainties could constrain growth opportunities
  • No interim dividend planned; policy to keep floor dividend rather than frequent payouts

📊Financial Results

  • Consolidated result: > EUR 1.5 billion for 2025
  • Insurance group result: > EUR 1.2 billion, supporting EUR 1.12 per share dividend
  • Solvency: Insurance group 281%; overall group 233% (decline in banking-related risks noted but offset by organic capital generation)
  • New business value (NBV) in line with target; Life NBV growth aided by large pension-fund contracts
  • Running investment yield: 4.2% (forward-looking proxy); gross investment yield 5.2% in 2025; ordinary yield emphasized

🔮Future Guidance

  • Dividend: EUR 0.80 per share floor, with potential over-delivery; interim dividend not currently planned
  • Targets: Maintain motor CR target around 95% and pursue higher-margin non-motor growth (bancassurance, health)
  • Capital deployment: No current M&A; capital to be used opportunistically for organic growth or external opportunities if favorable
  • Reinsurance: Expect possible further renegotiation favorable to terms if nat-cat results remain favorable
  • CSM sustainability: Focus on quality of life products and higher-margin lines to sustain CSM growth; disregard purely economic variance as a driver

💡Interesting Insights

  • Management views excess capital as a strategic buffer rather than excess cash, to be deployed for growth opportunities when they arise

Detailed Analysis

AI-generated summary of UNIPOL (UIPN.SG) earnings call transcript.

In its first year of the industrial plan, Unipol posted results above targets across principal KPIs, driven by strong P&C premium growth (notably in health insurance) and excellent Life premium performance, supported by healthy ordinary investment yields. The combined ratio was around target levels at 92.9%, with additional prudence on nat-cat reserves, which explains a 9-point nat-cat load albeit within a benign year. The insurance group generated over EUR 1.2 billion, underpinning a proposed dividend of EUR 1.12 per share (about 71% of insurance group earnings), viewed as a floor for future distributions. Solvency remained very strong (281% for the insurance group), aided by robust organic capital generation and favorable financial-market performance. The group foresees over-delivery on the EUR 2.2 billion cumulative dividend target and maintains a 71% floor, while acknowledging the need to preserve capital for growth opportunities, including potential organic expansion and select opportunities, with no current M&A on the table. Management also highlighted ongoing efficiency in motor pricing, continued growth in non-motor (notably health and bancassurance), and a cautious but constructive view on AI/autonomous driving implications. The plan remains to reach or exceed KPI targets with a commitment to a sustainable dividend and prudent capital management, while keeping options open for opportunistic use of capital if favorable opportunities arise.

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