“The challenge is to grow in the Non-Auto sector, because various innovations are arriving in the automotive world, from car sharing to car pooling, which will lead to further competition and probably a contraction in margins”. As the managing director of Cattolica Assicurazioni, Alberto Minali, presented to the shareholders' meeting in Verona the future strategies of a company which today sees almost half of its business represented by motor liability insurance (46%), but which despite the difficult context - both economic and insurance market – ended 2018 with results even beyond expectations.
“The operating result grew by 42,2% – recalled Minali, illustrating the data to the audience of shareholders gathered at the Cattolica Center – to 292 million euro, well beyond our expectations. This year we expect to exceed 300 million“. Also the dividend, much to the delight of the shareholders, rose by 14,3% to 0,4 euro per share, with business growing in all sectors: total premiums by 15,6%, 4,4% Non-Life premiums, 23% Life premiums.
Cattolica's business will increasingly focus on Life, and on the new insurance needs such as those linked to health and supplementary pensions, despite the fierce competition of the banks, currently leaders in the Life sector and good growth also in P&C. “We need to grow in the Non-Auto business – reiterated the managing director -, in the meantime, however, we are working a lot on pricing, on the new tariffs. We want increasingly sophisticated pricing, with new models”.
Il Positive 2018 for Cattolica, recalled Minali, arrived in a particularly unfavorable context, with interest rates still at low levels, increased spreads, market volatility (which did not prevent the company from rallying by 24,3% in the calendar year, 6 percentage points more than the Ftse Mib and the basket of insurance securities), slowdown of the Italian economy and still low inflation. “As regards Motors, claims decreased by 3% but above all the average premium contracted for the sixth consecutive year. Despite this, the average premium of our RCA has grown, albeit slightly, by 1,3%”.
The insurance market also slacked off on the Non-Motor front (with moderate growth in Health) and on the Life front, with funding which was stable and margins down. “The 2018 consolidated net result – Minali specified again -, in the case of Cattolica was also penalized by some non-recurring factors, such as the additional reserves linked to the "dormant" policies, the provision for risks for the possible application of VAT to commissions of co-insurance, the non-benefit of certain tax measures".
and approved one only list, which confirms Alberto Minali as CEO and Paolo Bedoni as president.
Precisely on the participation of the US shareholder, the managing director Minali, answering questions from journalists, said: “Warren Buffett's legal representative was present at the meeting, who voted in favor of all resolutions. As far as the share ratio is concerned, the share is always that of 9,05%. We have an excellent working relationship with Buffett, at the moment his participation is not invasive in governance". Finally, as regards possible acquisitions, the CEO recalled that there is no open dossier in the industrial plan, "but we're ready to watch whatever comes next to strengthen Cattolica”.
Read the interview issued by Alberto Minali to FIRSTonline.
