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23/02/2018

Intesa Sanpaolo Vita: Results and Capital Requirements as at 31 december 2017

  • Assets Under Management at € 151,343.5 million (€ 143,735.3 million as at December 2016 +5.3%)

  • Financial liabilities (Unit and Index Linked) at € 68,398.4 million (€ 57,353.2 million as at December 2016 + 19.3%)

  • Insurance provisions at € 82,945.1 million (€ 86,382.1 million as at December 2016 -4.0%)1

  • Life Gross written premiums at € 22,528.0 million (€ 23,933.0 million as at December 2016, -5.9%)

  • Claims paid at € 16,394.2 million (€ 14,072.2 million as at December 2016, +16.5%)

  • Life Net written premiums at € 6,133.7 million (€ 9,860.7 million as at December 2016, -37.8%)

  • Investments at € 156,124.0 million (€ 147,204.3 million at December 2016 +6.1%)

  • Shareholders’ equity at € 5,541.3 million (€ 5,242.8 million at December 2016 +5.7%)

  • Net income at € 639.3 million (€ 691.1 million at December 2016, -7.5%)

  • Solvency Capital Requirement at 236%

Turin, 23 February 2018  The Board of Directors' meeting of Intesa Sanpaolo Vita held on 16 February 2018, chaired by Luigi Maranzana and under the direction of the Chief Executive Officer Nicola Maria Fioravanti, also responsible for the Intesa Sanpaolo Insurance Division, approved the results of the Intesa Sanpaolo Vita Insurance Group at 31 December 2017, with reference only to companies subject to a controlling interest (excluding, therefore, Fideuram Vita) and, for Unified Management2, the consolidated/aggregated results of the Intesa Sanpaolo Vita Insurance Group including Fideuram Vita, which represent, at the entity level3, a perimeter homogeneous with the Insurance Division of the Parent Company, Intesa Sanpaolo.

 

“The Intesa Sanpaolo Insurance Division closed the 2017 financial year with solid results, contributing 11% to the gross operating profit of the Intesa Sanpaolo Group – said Nicola Maria Fioravanti, Head of the Insurance Division of the Intesa Sanpaolo Group.

The Insurance Group has maintained the growth trend recorded in recent years and confirms its position as a leader in the domestic life market, in the pension sector and in the Bancassurance non-life market, with an excellent performance in 2017 in terms of both net income, equal to € 639.3 million. as well as capital solidity, with a Solvency Ratio of 236%.

The Intesa Sanpaolo Group's business plan, announced by our CEO in recent days, has among its objectives achievement of European leadership in Wealth Management and Protection, with significant development of non-life insurance.

We feel directly responsible for this challenge, not only in achieving the results, but also in making our service model evolve responsibly, proposing ourselves as an asset and risk manager for our customers.

Thanks to the constant collaboration with the other Divisions of the Group, we will help Italian households in particular to optimise the management of their assets, promoting non-life policies as a fundamental pillar of their Welfare.”

Assets under management grew by 5.3%, increasing from € 143,735.3 million at December 2016 to € 151,343.5 million at December 2017 (Intesa Sanpaolo Vita insurance Group referring only to companies subject to a controlling interest € 119,895.8 million at December 2017 compared to € 114,668.8 million at December 2016 with an increase of 4.6%), in particular:

  • +19.3% in financial liabilities related to index and unit linked products, increasing from € 57,353.2 million at December 2016 to € 68,398.4 million at 31 December 2017. The financial liabilities component, predominantly represented by Unit Linked products, increased compared to total assets under management, from 39.9% at the end of 2016 to 45.2% at 31 December 2017 (the Intesa Sanpaolo Vita insurance Group referring only to companies subject to a controlling interest increased by 25.8%, from € 34,532.7 million in 2016 to € 43,442.9 million at 31 December 2017, with an increase in the incidence of financial liabilities compared to total assets under management from 30.1% at the end of 2016 to 36.2% at December 2017);

  • -4.0% in insurance provisions decreasing from € 86,382.1 million at December 2016 to € 82,945.1 million at 31 December 2017 (in the Intesa Sanpaolo Vita Insurance Group referring only to companies subject to a controlling interest, the decrease was -4.6% from € 80,136.1 million at the end of 2016 to € 76,452.9 million at 31 December 2017).

The net consolidated profit went from € 691.1 million at 31 December 2016 to € 639.3 million at 31 December 2017, showing a decrease of 7.5% (the Intesa Sanpaolo Vita insurance Group referring only to companies subject to a controlling interest € 587.1 million at December 2017, a decrease of 8.1% compared to € 638.7 million recorded at December 2016).

As regards the commercial performance, new life business decreased by -5.8% from € 23,650.6 million at December 2016 to € 22,268.6 million at 31 December 2017 (Intesa Sanpaolo Vita insurance Group referring only to companies subject to a controlling interest € 17,562.8 million at December 2017 compared to € 19,239.4 million at December 2016, with a change of -8.7%).

Life gross written premiums came to € 22,528.0 million compared to € 23,933.0 million at 31 December 2016, down -5.9% (Intesa Sanpaolo Vita Insurance Group referring only to the companies subject to a controlling interest € 17,739.4 million in December 2017 compared to € 19,422.5 million in December 2016, down -8.7%).

This performance was due to:

  • growth in collection of Unit Linked products4 offered, also in the hybrid multi-segment configuration: these products, at 31 December 2017, had a gross collection of € 15,994.6 million compared to € 15,754.7 million at 31 December 2016, with an increase of +1.5% (Intesa Sanpaolo Vita Insurance Group referring only to companies subject to a controlling interest € 11,816.3 million at December 2017 with an increase of 0.5% compared to € 11,761.8 million at December 2016).

  • a downsizing of the offer of traditional products which recorded a decrease in collection of 22.9%, equal to € 1,727.6 million, from € 7,531.8 million at December 2016 to € 5,804.2 million at 31 December 2017 (Intesa Sanpaolo Vita Insurance Group referring only to companies subject to a controlling interest € 5,329.8 million at December 2017, down 25.3% compared to € 7,131.3 million at December 2016);

  • a 12.8% increase in collection in the pension business from € 646.5 million at 31 December 2016 to € 729.2 million at 31 December 2017 (Intesa Sanpaolo Vita insurance Group referring only to companies subject to a controlling interest € 593.3 million at December 2017 compared to € 529.4 million at December 2016, with an increase of 12.1%).

Net life earned premiums amounting to € 6,133.7 million decreased by 37.8% compared to € 9,860.7 million at 31 December 2016 (Intesa Sanpaolo Vita insurance Group referring only to companies subject to a controlling interest € 4,443.0 million at December 2017 compared to € 8,674.9 million as at December 2016, with a decrease of -48.8%).

Non-life gross written premiums came to € 431.6 million compared to € 393.8 million at 31 December 2016, up 9.6%.

Shareholders’ equity stood at € 5,541.3 million, an increase of € 298.5 million (+5.7%) compared to the end of the 2016 financial year, which had a shareholders’ equity of € 5,242.8 million (the Intesa Sanpaolo Vita Insurance Group referring only to the companies subject to a controlling interest € 4,818.2 million, an increase of € 252.8 million, +5.5% compared to € 4,565.4 million at the end of 2016).

The regulatory Solvency Ratio for the fourth quarter of 2017 of the Intesa Sanpaolo Vita insurance group, including Fideuram Vita, was equal to 236% (excluding Fideuram Vita equal to 245%).

The total amount of subordinated debt amounted to € 2,071.8 million compared to € 1,401.9 million at the end of 2016 (Intesa Sanpaolo Vita Insurance Group referring only to companies subject to a controlling interest € 1,926.6 million at December 2017 compared to € 1,316.2 million at the end of 2016).

During the third quarter of the year, the Insurance Parent Company Intesa Sanpaolo Vita S.p.A. received a subordinated loan for a total amount of 600 million euros over a period of 10 years, granted by the Parent Company Intesa Sanpaolo S.p.A., classified as TIER II for Solvency II solvency capital purposes.

Moreover, in December, Fideuram Vita repaid a subordinated loan of 85 million euros in advance and simultaneously benefited from a subordinated loan for a total amount of 145 million euros over a period of 10 years, granted by the Parent Company Intesa Sanpaolo S.p.A., classified as TIER II for Solvency capital purposes.

 

 

For information:

Intesa Sanpaolo Group
Wealth Management Media Department
stampa@intesasanpaolo.com
+39 02 87963119
 

 

 

 

Insurance provisions included deferred liabilities due to insured (shadow accounting) totalling € 4,777.8 million at 31 December 2017 compared to € 5,743.4 million at the end of 2016. Regarding the Intesa Sanpaolo Vita insurance group referring only to companies subject to a controlling interest (excluding, therefore, Fideuram Vita), the extent of shadow accounting as at December 2017 was € 4,433.2 million compared to € 5,334.6 million at the end of 2016.

The insurance Parent Company Intesa Sanpaolo Vita, pursuant to Article 96 of Legislative Decree 209/2005 "Private Insurance Code", is required to prepare the consolidated/aggregate financial statements, also including the subsidiary Fideuram Vita in the scope of consolidation.

The companies included in the Intesa Sanpaolo Insurance Division are: Intesa Sanpaolo Vita, Intesa Sanpaolo Life, Intesa Sanpaolo Assicura and Fideuram Vita.

The hybrid multi-segment products only include collection referring to the Unit Linked component.