unipol group 2006-2009 strategic plan
Transcript
unipol group 2006-2009 strategic plan
UNIPOL GROUP 2006-2009 STRATEGIC PLAN Contents CHAPTER 1: 2006-2009 STRATEGIC PLAN 9 Group positioning 9 Key Pillars 9 Key Figures CHAPTER 2: CORPORATE AND FUNCTIONAL REORGANIZATION PLAN 1 Contents CHAPTER 1: 2006-2009 STRATEGIC PLAN 9 Group positioning 9 Key Pillars 9 Key Figures CHAPTER 2: CORPORATE AND FUNCTIONAL REORGANIZATION PLAN 2 Unipol is an integrated group offering insurance and banking services Insurance Area Composite companies Specialised companies Banking Area Bancassurance • FY 2006 Premiums about 10.8 Euro/bn • ~4,500 points of sales; distribution agreements with ~1,500 branches • Excellent Group Technical Results • Balanced mix of premiums (~40% Non-Life and ~60% Life) • 265 branches nationwide • More than 50% of the branches are colocated with insurance agencies • ~40 financial counters • FY 2006 deposits about 34 Euro/bn 3 The Group is the third insurance player in the market 2005, Gross Direct Written Premiums, Italian GAAP Market share Life Group Premiums € billion Generali* Italian Insurance market Group Premiums € billion 27.8 Allianz 14.6 25.3 25.3 13.3 13.3 Unipol 10.8** 9.8 9.8 FonSAI 10.2 9.3 9.3 Cattolica Allianz 9.0 Unipol 6.7** Poste Vita Generali* 5.3 4.8 4.8 19.7 Eurizon 26.9 26.9 12.2 12.2 9.2 9.2 7.9 7.9 5.8 6.3 6.3 4.6 Non-Life Group Premiums € billion Generali* 8.0 FondSAI 7.1 Allianz 5.6 Unipol Reale Mutua *Proforma, Toro Group included; Source: ANIA ** 2006 preliminary figures: 10,8 €/bn Premiums (o/w 6.7 Life and 4.1 Non Life) 4.1** 1.8 22.0 22.0 19.7 19.7 15.4 15.4 10.9 10.9 5.0 5.0 4 Both business areas grew at very fast pace 1999-2005, Italian GAAP CAGR 1999-2005 Banking growth Customer deposits + Customer funds € billion Insurance growth Gross Domestic Written Premiums € billion 8.9 6.0 1.9 2.0 1.1 0.8 1.2 1999 2000 2.8 2001 3.8 Premiums 656 389 Customer funds 28.5 4.9 3.9 49% 49% 3.9 3.7 2002 5.1 2003 5.7 2004 20.2 4.3 2.3 Acquisition Acquisition Life 9.6 2.1 3.2 Customer deposits 10.7 33.5% 33.5% 4.9 P&C 6.8 2.6 0.4 2005 Acquisition Premiums Premiums 1,929 140 3.9 0.5 2.2 3.4 1999 2000 Acquisition of 51 branches from Banca Intesa 7.4 1.1 9.2 2.2 6.3 7.0 2001 2002 Acquisition of 60 branches from Capitalia 14.1 2.6 11.5 2003 23.6 15.9 2004 2005 Acquisition of 22 branches from Antonveneta 88 1,108 5 Three core skills enabled the Group to grow considerably in the last years Business growth and profitability X Unipol Ass. business overperformed market growth (since 1999: Unipol Ass. +15.4% vs Market + 10.0%) X Combined ratio constantly below market average X Profitable business development with Affinity Group (33% of Unipol Ass. Non-Life business) Steady growth of insurance original business Merger competencies X Acquisition and integration of 6 companies since 2000 X Strengthen Aurora up to the 3° composite Italian company X Fast integration of key shared functions (IT, claims) Fast integration after acquisitions Innovation and growth options X Development of Unipol Banca based on an integrated model (banking branch + insurance agency) innovative in the Italian market X Development of channel/product specialized companies (e.g., Linear, Unisalute) Development of new businesses 6 An integrated model based on increasing convergence of households’ financial needs Evolution of customer needs makes the difference more and more artificial Need X Buy a house A large customer base in insurance makes the opportunity real and feasible to boost the banking client portfolio Offer required X Mortgage loans X Unipol has 6 million customers X Home insurance X Payment protection coverage X Own a car X Car financing X Motor coverage X Road assistance X… X Save for retirement X Mutual funds X Life assurance X Saving plan Develop integrated insurance and banking offer X Top 40% of agencies have average portfolio of 4,000 customers X 20% of client of Unipol Banca comes from insurance (35% on average in the branches co-located with insurance agencies) X Pension Funds X Protect the family X Death coverage X Health coverage X Break even level for Unipol Banca branch is low (around 500 current accounts) X LTC X De-cumulate assets X Reverse mortgage X Annuity X… 7 Contents CHAPTER 1: 2006-2009 STRATEGIC PLAN 9 Group positioning 9 Key Pillars 9 Key Figures CHAPTER 2: CORPORATE AND FUNCTIONAL REORGANIZATION PLAN 8 Strategic guidelines and key targets Insurance Reinforce current market position and improve profitability 2009 Banking Scale up and improve profitability X +50% Insurance technical result Corporate Center Reinforce ‘holding functions’ to increase integration and to strengthen commercial coordination Capital Management Enhance value and identify external growth opportunities in line with the Group’s strategy and profitability targets X Banking net profit above 90 millions X x2 EPS X Expected ROE at 14% 9 Strategic guidelines and key targets Insurance Reinforce current market position and improve profitability Banking Scale up and improve profitability X Improve offering and sales performance X Cut operating costs by exploiting unrealized synergies X Maintain technical excellence mainly focusing on claims X Increase Life New Business Value with a more profitable mix Corporate Center Reinforce ‘holding functions’ to increase integration and to strengthen commercial coordination Capital Management Enhance value and identify external growth opportunities in line with the group’s strategy and profitability targets 10 Strategic guidelines and key target Insurance Reinforce current market position and improve profitability Banking Scale up and improve profitability Corporate Center Reinforce ‘holding functions’ to increase integration and to strengthen commercial coordination X Improve cost/income ratio leveraging on strong revenue growth increasing: Align recently opened branches to the average performance Increase network sales productivity X Expand branch network Capital Management Enhance value and identify external growth opportunities in line with the group’s strategy and profitability targets 11 Strategic guidelines and key targets Insurance Reinforce current market position and improve profitability Banking Scale up and improve profitability Corporate Center X Rationalize Group structure Reinforce ‘holding functions’ to increase integration and to strengthen commercial coordination X Promote coordination among business areas Capital Management Enhance value and identify external growth opportunities in line with the group’s strategy and profitability targets 12 Strategic guidelines and key targets Insurance Reinforce current market position and improve profitability Banking Scale up and improve profitability Corporate Center Reinforce ‘holding functions’ to increase integration and to strengthen commercial coordination Capital Management X Minorities buy-out Enhance value and identify external growth opportunities in line with the group’s strategy and profitability targets X Seize external growth opportunities X Confirm pay-out policy 13 Excess capital provides resources to tackle market opportunities € million The PTO on 100% Aurora shares for a total amount of 751 mn € started on 29 January 2007 Potential add-on of 1 bln € of hybrid capital to be issued in case of acquisition 2,700 800 ∼2,000 ∼300 Excess capital YE ‘05 Minorities buy-out Capital required to finance growth, net of retained earnings ∼400 Excess of Issuing of subordinated regulatory capital notes available across the plan 14 Contents CHAPTER 1: 2006-2009 STRATEGIC PLAN 9 Group positioning 9 Key Pillars 9 Key Figures CHAPTER 2: CORPORATE AND FUNCTIONAL REORGANIZATION PLAN 15 Key economics Insurance business, Gross Domestic Written Premiums € million, percent Non-Life Premiums Combined Ratio Non-Life Technical Result Life Premiums* Life New Business Margin 2005 2009 3,948 4,800 5.0% 93.7% 92.0% –1.7 p.p. 245 350 9.3% 5,188 7,150 8.3% 20.6% 23.6% +3.0 p.p. * IFRS Proforma including 100% of BNL Vita and 50% of Quadrifoglio. CAGR 05-09 16 Key economics Unipol Banca € million, percent 2005 CAGR 05-09 7,021 9,000 6.4% Customer Funds 23,645 32,200 8.0% Customer Loans 5,261 8,600 13.1% 84.3% 56.4% –27.9 p.p. Gross operating income 187 446 24.3% Net profit –4* 94 - ROE n.s. 9.5% - Customer Deposits Cost Income * 2009 +20.4 Italian GAAP 17 Key performance indicators Group € million, percent Total Gross Domestic Written Premiums Group Net profit ROE* EPS (€ Cent.) Excess regulatory capital * Net of excess capital ** Across the 3-years plan CAGR ‘05-’09 2005 2009 9,136 11,950 6.9% 254 570 22.3% 9.2 ∼14 ∼5 p.p. 11 24 22.3% 2,700 ∼2,000** - 18 Summary of Key Consolidated Figures INSURANCE BUSINESS INSURANCE INCOME * INSURANCE BUSINESS UNIPOL GROUP MARKET SHARES (Ins. Income) TOTAL INVESTMENTS (EUR/m) stable FY 2005 10.9% ~6,700 ~4,100 6,782 +12% 3,948 (EUR/bn) ~10,800 10,730 10.9% 9.4% 9.2% 2005 FY 2006E Non-Life Life * Direct premium income – local GAAP 2006E Total Non-Life Total Life BANKING BUSINESS (EUR/m) 23,645 4.3 4,2 31,7 33.6 FY 2005 3Q06 Inv. on behalf of policyholders (former Class D) UNIPOL GROUP BANKING BUSINESS NET PROFIT LOANS TO CUSTOMERS (EUR/m) (EUR/m) Funds 35.9 +5.5% over 2005 Other investments BANKING DEPOSITS AND FUNDS Deposits 37.9 ~26,400 +12% 254 +5.5% increasing 30 ~6,200 ~7,800 7,021 FY 2005 5,261 +7.8% +18% 282 5,261 FY 2006E FY 2005 FY 2006E FY 2005 FY 2006E 19 Contents CHAPTER 1: 2006-2009 STRATEGIC PLAN 9 Group positioning 9 Key Pillars 9 Key Figures CHAPTER 2: CORPORATE AND FUNCTIONAL REORGANIZATION PLAN 20 The current structure of Unipol Group Main companies HOLMO MPS P&V Group (BE) HOPA 56.24% 27.84% 4.59% 5.40% 4.50% BNP PARIBAS JP MORGAN (USA) 1.43% FINSOE Permanent stake: 50.2% of ordinary shares (31% of the total share capital) Holding and Insurance Company INSURANCE INSURANCE 66.66% AURORA ASSICURAZIONI 98.48% (*) UNISALUTE BANCASSURANCE BANCASSURANCE 50% 50% QUADRIFOGLIO VITA BNL VITA BANKING BANKING 84.53% (*) UNIPOL BANCA 86.15% UNIPOL MERCHANT BANCA PER LE IMPRESE 100% (*) 99.80% (*) Direct + indirect stake LINEAR 100% NAVALE ASSICURAZIONI 100% UNIPOL SGR UNIPOL FONDI 21 Unipol Group Reorganization Plan: goals and transaction structure Transaction Transaction structure structure Goals Goals Voluntary tender offer for 33.34% stake of Aurora not held by Unipol at a price of €2.45 per share Total Offer Value up to €751m Acquisition of the full control (100%) of Aurora Assicurazioni Hive-down of the insurance business of Aurora Merger by incorporation of Aurora into Unipol: Exchange ratio expected in a range between: 0.431 – 0.511 Unipol ordinary shares for each Aurora share 0.266 – 0.315 Unipol pref. shares each Aurora share Rationalization of the corporate structure within Unipol, by separating holding and insurance activities Hive-down of the insurance business of Unipol and creation of Unipol Assicurazioni S.p.A., wholly controlled (100%) by Unipol Gruppo Finanziario S.p.A. 22 Unipol Group at the end of the transaction Main companies HOLMO MPS P&V Group (BE) HOPA 56.24% 27.84% 4.59% 5.40% 4.50% BNP PARIBAS JP MORGAN (USA) 1.43% FINSOE Permanent stake: 50.2% of ordinary shares (31% of the total share capital) UNIPOL Gruppo Finanziario S.p.A. INSURANCE INSURANCE 100% 100% BANCASSURANCE BANCASSURANCE UNIPOL ASSICURAZIONI 50% AURORA ASSICURAZIONI 50% QUADRIFOGLIO VITA BNL VITA BANKING BANKING 84.53% UNIPOL BANCA 86.15% UNIPOL MERCHANT BANCA PER LE IMPRESE ~100% Other insurance companies 100% 100% UNIPOL SGR UNIPOL FONDI 23 DISCLAIMER This presentation contains information relating to forecasts of figures, results and events which reflect the current management outlook, but these could differ from what actually happens owing to events, risks and market factors that it is presently impossible either to know or to predict. 24 Contatti Investor Relations Unipol Assicurazioni - Via Stalingrado 45 Bologna Adriano Donati Tel. +39.051.507.6166 [email protected] Francesco Fronzoni Tel. +39.051.507.6563 [email protected] 25