Catholic archive the first semester with a Operating income up 25,1%, to 149 million, while the group result it stood at 51 million, up from one million last year. There total collection reached 2,9 billion (+12,6%) against an increase in both Life (+17,2%) and by Danni (+5,4%) while the combined ratio is at 92,6% (from 93,4%) and the Solvency II Ratio al 160%.
As regards the Net income, which at consolidated level stands at 63 million (8 million last year) Cattolica specifies that the first half of 2017 was marked by significant non-recurring write-downs for a total of 67 million (66 million group share); the one-off effects are present again this year for 12 million, in addition to some costs for the start-up of the joint venture with Banco Bpm.
In an insurance market "still characterized by a highly competitive environment, by low interest rates and by significant volatility of the spread on Italian securities, except for extraordinary events", Cattolica foresees "an operating result and net profit of the group in marked improvement compared to the previous year".
L'ad Alberto Minali underlines in a note the “substantial growth of the group” and how “the Solvency II figure confirms the capital solidity, despite the volatility of the bond markets. The industrial turnaround will lead us to achieve the plan targets through sustainable growth which is translating, already in the course of this year, into a decidedly improving operating result and net profit".
Furthermore, Minali made it known that Warren Buffet's Berkshire, which owns 9% of the Veronese company, “has not requested to be registered in the shareholders' register, we would be happy to accept it. They are long-term investors, very interested in industrial and financial performance. They could become partners, it is a decision that is up to them, as soon as they request we will analyze it very carefully and quickly".
On the contrary, Minali specified, “Cariverona he applied to become a member and was accepted: this is excellent news, the Foundation is a very important operator working in the area. We are very happy that they have approached Cattolica”.
Finally, Minali said that “the impact of the spread on our capital position it was significant because it widened a lot, we're talking about an impact of almost 40 points. We are in a phase of spread widening which has not yet enabled the volatility adjustment mechanism to be activated. If the spread widened by another 50 basis points, paradoxically this mechanism would be triggered and we would have a recovery of our capital position of almost 20 points. Obviously we would have a benefit even if the spread fell”.
