The Cattolica Assicurazioni business will continue in the first quarter of 2020, albeit in a period marked by the coronavirus emergency, which among other things saw the concrete commitment of the Veneto-based company to support the affected communities, through a donation of 2 million euros for hospitals, and their customers, through the unprecedented initiative of the Motor liability vouchersequal to 1/12 of the gross annual premium. In this context, however, business suffered repercussions: for example there was a sharp drop in new business, both Non-Life (-45% Motor, -61% Non-Motor) and, above all, Life (-81%). However, since the last week of April, there has been a partial recovery with new Motor business up +23% on the average of the previous weeks and Life business up +10%.
In the first quarter, therefore, total premium income from direct and indirect Non-Life and Life business grew by 2,8% to 1,549 billion. In the direct Non-Life business there was a drop of 1,9%. The increase in Life premiums was 4,9% with a decisive incidence of unit-linked (28,7% of the total). The combined ratio improved to 92,6% (-1,1 pp) despite provisions to take into account the voucher for MV customers which accounts for 4,9% of the premiums earned. Also the operating result marks a marked increase of 20,5% to 72 million. The operating RoE stands at 7,4%. The Group's net profit is down to 14 million (26 million a year ago, -45%), due to write-downs on investments in the equity sector and on some mutual funds. Adjusted profit amounted to €18 million, down by 38,3% compared to 2019 due to the aforementioned write-downs.
“The results we present – he commented Atanasio Pantarrotas, CFO of Cattolica Assicurazioni – confirm the Group's resilience in the face of exceptional events. The quarter was characterized by a growth in premium income of 2,8% compared to the same period of the previous year and by a decline in the claims ratio, particularly in the MV classes. At the end of a phase of high market volatility, the group's net profit stood at 14 million due to the effect of write-downs on investments and the balance sheet solidity was maintained, with an S-II ratio equal to 1,47 times the regulatory requirement. To date, while aware of the many risks associated with the pandemic, without prejudice to further extraordinary events, we confirm an operating result at the end of the year between 350 and 375 million".
The board of directors, chaired by Paolo Bedoni, has also definitively approved the proposed amendments to the by-laws which will be submitted to the extraordinary shareholders' meeting convened on 26-27 June. The changes, which follow those already voted on March 20, received the only negative vote from former CEO Alberto Minali. In particular, it concerns the reduction of directors from 17 to 15, of the prohibition for the managing director to also be a shareholder, the introduction of criteria for gender equality, the introduction of a time limit of three continuous mandates for eligibility for the special positions of Chairman and Vice Chairman, the more precise definition of the functions of the Chief Executive Officer.
