Unipol Gruppo Finanziario : Corporate › Financial Consolidated Results for the first half of 2019 approved

CONSOLIDATED RESULTS FOR THE FIRST HALF OF 2019 APPROVED PROFIT AND PREMIUM INCOME GROW

IMPROVED COMBINED RATIO

SOLID FINANCIAL STRENGTH CONFIRMED

• • Consolidated net profit of €740m compared to €644m at 30 June 2018 (+14.9%)

• • Direct insurance income of €7.3bn (+18.5%)1

  •  Non-Life business: €4.1bn (+2.6%)

  •  Life business: €3.2bn (+48.4%)1

• • Net of reinsurance combined ratio of 94.6%, an improvement on 95.1% recorded in the first half of 2018

• • Pro forma consolidated solvency ratio of 165%2 considering the effects of the sale of Unipol Banca and the acquisition of NPL portfolios from the BPER Group

Delivery of the first operations reflecting the guidelines set out in the 2019-2021

Strategic Plan:

• • Agreement with all the trade unions on the Solidarity Fund and other forms of voluntary redundancy for approximately 750 employees. The agreement also calls for pro-active policies on employment, including hiring 300 new professionals

• • Purchase of the entire shareholding of Car Server (long-term car rental company) for €96m

1 2018 figures recalculated on a comparable basis with current figures

2 Management estimate on the figures at 31 March 2019. The reported consolidated solvency ratio is 153%: the figure was calculated on the basis of the partial internal model, to be taken as preliminary since the Supervisory Authorities will be notified of the definitive figure in accordance with legally required deadlines.

Bologna, 2 August 2019

The Board of Directors of Unipol Gruppo S.p.A., which met yesterday under the chairmanship of Pierluigi Stefanini, approved the consolidated results of the Group as at 30 June 2019.

The consolidated net profit amounted to €740m in the first six months of 2019 compared to €644m in June 2018. The first half result for 2019 includes the positive effects of the first-time application of the consolidation in equity of the investment in BPER Banca (of €388m); the 2018 result included the capital gain of €309m from the sale of the investment in Popolare Vita and other minor effects. If the non-recurring economic components are not included, and on a comparable basis, Unipol Gruppo made a normalised3 consolidated net profit of €353m in the first six months of 2019, significantly up (+13.3%) on the normalised3 result of €311m in the corresponding period of the previous year.

Direct insurance income at 30 June 2019, including reinsurance ceded, stood at €7,294m (+18,5%1 compared to the €6,153m collected at 30 June 2018).

Non-Life Business

Direct non-life income at 30 June 2019 amounted to €4,109m (up 2.6% compared to €4,007m recorded at 30 June 2018). With growth of 0.5%, UnipolSai contributed to this result, along with a number of the other main Group companies. UniSalute recorded premiums of €238m (up 5.4%), Incontra Assicurazioni recorded premium income of €102m (+101%) and Linear recorded a total amount of €96m in premiums (+3.7%).

The MV business was substantially stable and stood at €2,151m (-0.3%). Premiums amounted to €1,958m in the Non-MV business, up 5.8%, mainly due to significant developments in the health business (+18.0%).

Against this background, at 30 June 2019, the Unipol Group recorded a combined ratio, net of reinsurance, of 94.6% (93.2% direct business), an improvement on the figure of 95.1% recorded at 30 June 2018 (93.0% direct business) despite the greater impact of the weather events.

The loss ratio, net of reinsurance, stood at 66.7% (compared to 67.8% for the first half of 2018), while the expense ratio, net of reinsurance, stood at 27.9% (compared to 27.3% at 30 June 2018) as they were influenced by a product mix that leaned more heavily towards the Non-MV business with a greater impact on commissions.

3 Normalised figures for the first half of 2019 do not include the extraordinary effects of the first-time consolidation of BPER in equity. The figures from the first half of 2018 do not include the effects of the capital gain from the sale of Popolare Vita, and were recalculated on a comparable basis with the current period.

The normalised3 pre-tax result for the Non-Life business amounted to €386m, up 18.3% on the normalised3 figure of the first six months of 2018 which amounted to €326m, partly due to technical improvements.

Life Business

The Unipol Group registered direct income of €3,185m in the Life business, up 48.4%1 compared to the figure at 30 June 2018 on a comparable basis.

UnipolSai registered €2,327m in direct income (+51.8%)1 , due in part to the excellent pension fund performance, while in the bancassurance business, Arca Vita in particular continued to grow significantly, and along with its subsidiary Arca Vita International, earned direct income of €811m, up 42.2% from the first half of 2018.

The pre-tax result for the business amounted to €139m compared to a normalised3 result of €200m at 30 June 2018 with the decrease the result of a lower contribution from investment income.

Real Estate Business

Property management continued to revolve around the redevelopment of certain properties with a view towards enhancing their value or using them for operational purposes.

There was a pre-tax loss of €26m in the business compared to a loss of €48m at 30 June 2018 which included the effects of the higher write-downs.

Holdings and Other Businesses

In the other sector in which the Group is active, Gruppo UNA, clinics and agricultural business posted positive profit margins. Gruppo UNA posted a net profit of €1.2m, reversing the loss trend shown in the previous period.

UnipolReC recorded a significant net profit of approximately €10m, ending the half year period with a drop of €191m in gross non-performing loans for which it collected €59m (31% of their gross value).

There was a normalised3 pre-tax loss of €25m in the business, including the holding business, however this was an improvement on the loss of €53m as at 30 June 2018 due to the above-mentioned trends and the higher return on holding financial investments.

Financial Management

With regard to management of financial investments, the gross return on the Group's financial insurance investment portfolio for the period was 3.5% of the invested assets, with 3.3% of this relating to the coupon and dividend component.

Balance Sheet

Consolidated equity as at 30 June 2019 amounted to €7,547m (€6,327m at 31 December 2018), of which €6,092m attributable to the Group (€5,032m at 31 December 2018).

The Group solvency ratio at 30 June 2019, which includes the effects of classifying BPER as an associate company, was 165%2 on a pro forma basis, i.e. considering the effects of the sale of Unipol Banca and the acquisition of the NPL portfolios from the BPER Group completed on 31 July 2019 (163% at 31 December 2018). The corresponding reported ratio is 153%2.

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Significant events occurring after closure of the half-year period

Trade union agreement on staff. On 18 July last, UnipolSai and all the trade unions signed an agreement on the "Solidarity Fund" and other forms of voluntary redundancy falling within the scope of the strategic guidelines of the 2019-2021 Industrial Plan regarding staff. This agreement gives the opportunity to approximately 750 employees who fulfil the necessary requirements to voluntarily decide whether to take early retirement, with a series of incentives. The agreement also calls for pro-active policies on employment to capitalise on human resources and the hire of approximately 300 resources whose new skills will be put to use for the development and evolution of the Group.

Car Server company acquired

On 1 August 2019, UnipolSai finalised the purchase of the entire shareholding of Car Server, one of the main operators in Italy in the long-term rental of company car fleets, and more generally company mobility management. This will enable the Group to strengthen its assets for execution of the 2019-2021 Strategic Plan in the mobility ecosystem. The price agreed amounted to €96m.

Presentation of results to the financial community

A conference call will be held at 12:00 p.m. CEST today during which financial analysts and institutional investors may submit questions to the Group CEO and Senior Management on the results at 30 June 2019. The phone numbers to dial to attend the event are: +39/02/8058811 (from Italy and all other countries), +1/718/7058794 (from the US) and +44/121/2818003 (from the UK).

The multimedia file with the pre-recorded comment on the results can be found in the Investors section of the websitewww.unipol.it.

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In order to allow more complete disclosure of the results at 30 June 2019, please find attached hereto the Consolidated Balance Sheet, the Consolidated Income Statement, the summary of the Consolidated Income Statement by Business Segment and the Balance Sheet by Business Segment.

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Maurizio Castellina, Manager in charge of financial reporting of Unipol S.p.A. and UnipolSai

Assicurazioni S.p.A., declares, pursuant to Article 154-bis, paragraph 2, of the "Consolidated Law on Finance", that the accounting information contained in this press release corresponds to the figures in the corporate accounting records, ledgers and documents.