- Outperformed KPIs Unipol exceeded all key performance indicators in 2025, including a P&C combined ratio of 92.9% (in line with target) and strong Life premium growth driven by agents and bancassurance.
- Consolidated Result Reported EUR 1.5B consolidated result, with EUR 1.2B from the insurance business, and proposed a EUR 1.12/share dividend (70% of insurance group result).
- Solvency Strength Insurance group solvency rose to 281% (vs. 233% overall), driven by EUR 500M organic capital generation post-EUR 804M dividend distribution.
- Technical Profitability Prudent nat cat risk management added EUR 220M in risk adjustment, while motor business saw a 12 bps frequency benefit from improved loss trends.
- Capital Allocation Prioritizing organic growth over capital return, with a EUR 800M dividend floor and commitment to maintain solvency above targets (281%) to avoid short-term capital restatements.
Business Segment Performance
The Life insurance business saw a strong performance in premium driven by agents, distribution networks, and bancassurance. Unipol reached its target of new business value and contractual service margin. Enrico Pietro, during the earnings call, highlighted that the technical profitability was good in both motor and non-motor business, with a prudent approach to nat cat risk. The motor combined ratio is already better than the target, but the company is being cautious and keeping the target at 95%.
Capital Management and Dividend Policy
Unipol's solvency increased to 233%, with the insurance group solvency at 281%, a very solid number. The company proposed a dividend of EUR 1.12 per share, more than 70% of the insurance group result. Matteo Laterza mentioned that EUR 800 million is the floor for dividend payments, and the possibility of an interim dividend is not currently being considered. The company's dividend yield stands at 4.05%, which is attractive for income investors.
Valuation and Outlook
Unipol's Price-to-Book Ratio (P/B) is 1.63, indicating a reasonable valuation. The company's Return on Equity (ROE) is 9.38%, which is a respectable number. Given the company's strong performance and commitment to delivering its KPIs, it is well-positioned for future growth. With a dividend yield of 4.05% and a P/B ratio of 1.63, Unipol appears to be reasonably valued. The company's commitment to using its capital in a profitable way and ensuring a satisfactory remuneration for shareholders is positive for investors.