Unipol doubles profit but sees rating cut by Standard & Poor's. The insurance company closed the first half of 2012 with profits up by 112,3% on an annual basis, to 121 million euros. This morning, one hour after the opening, the company's share on the Stock Exchange gains 1,28%.
Non-life direct premium income – reads a note – amounted to 2,146 billion (-2,3%), of which 1.292 million in the motor classes (-2,5%) and 853 million in the other classes (-2,1%) . Group direct life premiums amounted to 1,074 million, down 20,4% y/y. The financial management obtained a gross return on the income statement of approximately 4,4%.
As of June 30, 2012 the exposure to Italian debt amounts to 10,309 billion, for a market value of 9,892 billion. The exposure to government bonds issued by Portugal, Ireland, Spain and Greece amounted to 942 million. Finally, the banking sector closed with direct deposits from third-party customers (retail and SMEs) of 8,435 billion (+1,9% compared to 31 December 2011). The group Unipol Banca presents a Core Tier 1 of 8,3% compared to 8,2% in 2011. The first half of 2012 closed with a net profit of the banking sector of 6 million (3 million in the same period of 2011).
Standard & Poor's downgraded the rating of Unipol Gruppo Finanziario from BBB- to BB+ and that of the subsidiary Unipol Assicurazioni from BBB+ to BBB. The outlook remains negative. According to S&P analysts, the downgrading reflects the weakening of the financial risk profile due to the managerial and financial commitment to the Premafin group, including the 339,5 million euro of investments in the former Ligresti family holding company and the 140 million in FonSai savings shares.
The benefits of the 1,1 billion euro capital increase and the related proceeds of 725,8 million, according to the agency, are not sufficient to offset the negative effects in terms of the investment profile, financial flexibility and risk profile determined from the merger with Premafin and with the subsidiaries FonSai and Milano Assicurazioni.
Meanwhile, the CEO Carlo Cimbri has confirmed that the auctions on the unopted share capital increases of Unipol and Fondiaria-Sai will be held after the mid-August break, although a precise date has not yet been established. Overall, the unsubscribed amounts to approximately €665 million, which in the event of non-subscriptions would be borne by the banks in the underwriting syndicate, led by Mediobanca and UniCredit, which would take over the most significant portion.
