The SBU performances for the year are solid and show growth compared to the results in 2020. The operative margin and net result also amounted to pre-pandemic levels. The Solvency Ratio of 261% at the end of the year confirms the solvency of the insurance Group.

2021 of the sector

RESULTS and KPIs

INSURANCE SERVICES
(€m)		20212020
CHANGES
External revenue1,8701,643+228+13.9%
Revenue from other sectors31+1+87.6%
Total revenue1,8731,644+229+13.9%
Costs146133+13+9.9%
Costs vs other sectors604523+81+15.4%
Total costs750656+94+14.3%
EBIT1,123988+135+13.7%
EBIT Margin %60.0%60.1%
NET PROFIT828784+44+5.6%

n.s.: not significant

Operating KPIs20212020CHANGES
Net technical provisions Poste Vita Group (€bn)159.0153.713.59.6%
Solvency Ratio261%267%
Life business20212020CHANGES
Gross premium revenue – Life (€m)*17,57416,661(1,071)-6.0%
of which: Classes I-IV-V13,74914,661(1,132)-7.2%
of which: Class III**3,8262,000613.1%
Incidence of Multi-class premiums on total58%34%
Unrealized capital gains/(losses) (€bn)13.217.96.455.2%
Lapse rate3.1%2.5%
% of ESG products on investments products***50%14%
P&C business20212020CHANGES
Gross premium revenue – non-life (€m)****319240+79+33.0%
Average daily premiums – modular offer (€t)*****20598+107+108.9%
Intermediated premiums on motor (€t)5,843n/an/sn/s
Combined ratio (net reinsurance)******91.1%79.5%
Loss ratio59.5%48.0%

n/a not applicable
n/s not significant
* Includes gross premium revenue before outward reinsurance premiums and intra-group portions.
** Gross class III premium revenue includes the target portion of the new multi-class products, with “linked” portion definition.
*** For products being placed, the presence of an ESG component is enhanced. Product campaigns are excluded with gross annual inflows that are less than € 100 million
**** Includes gross premium revenue before the premium reserve, outward reinsurance premiums and intra-group portions.
***** Calculated on net annual premiums, including Property and Casualty policies
****** Corresponds to the ratio between the total amount of costs incurred (commissions for the year + charges relating to claims + balance of business ceded + operating costs + other technical expenses and income) and gross premiums earned.

EXTERNAL REVENUE
(€ m)

ROAD TO 2024

“2024 Sustain & Innovate” Strategy

Market-leading insurance company with comprehensive
and sustainable product portfolio

  • Life products at the heart of the group’s investment offering
  • Profitable growth in the non-life market
  • Full integration of ESG principles and reduction of under- insurance in Italy
SEGMENT LOREM LOREM PILLAR
LifeAs part of the strategic guidelines outlined in the “24SI” Plan, which envisage improving the product mix in the life business with a particular focus on multi-class  products, the following were launched during the period:
  • the multi-class policies “Poste Progetto Dinamico” (with the relative restyling: “Poste Progetto Dinamico New) and “Poste Progetto Dinamico Più”40. The benefits are linked to the Separate Account “Posta Valore Più”41 and to the value of the units in one of the two available Internal Insurance Funds (one of which is ESG). These policies provide the possibility of accessing the opportunities offered by the financial markets through a gradual approach, and the service of gradual reallocation of risk as the product maturity date approaches;

  • the “Poste Soluzione Valore” policy, a multi-class life insurance contract the benefits of which are linked to the “Posta Valore Più” separate account and to the value of the units in one of the two available Internal Insurance Funds (one of which is ESG). The duration is 10 years.

  • the restyling of the product “Poste Soluzione Valore New”, with a duration of 15 years;

  • the “Poste Domani Per Te Plus” policy, a 10-year Class I product with a guarantee at maturity on the premium invested, net of any partial surrenders and coupons already liquidated.

  • the policy “Poste Progetto Capitale”, launched in February 2020, is a multi-class recurring life insurance contract with a 10-year duration, which combines the stability of the Gestione Separata Posta ValorePiù (class I) product with the potential of the two Internal Insurance Funds (one of
    which is ESG).
In order to reduce the country’s under-insurance by raising customer awareness of the importance of protection needs, as envisaged in the “24SI” strategic plan, the marketing of the new integrated Life/P&C offer was launched during the period, whereby subscribers to specific Life policies are
offered a P&C policy free of charge.
P&CThe new motor liability offer, “Poste Guidare Sicuri”, was launched on the market, following a gradual approach to sales by the distribution network (over 4,100 authorised post offices)
Improvements were made to the terms and conditions of the modular product42, “Poste Vivere Protetti”, aimed at ensuring that the needs expressed by customers are met more effectively

40. Dedicated to customers who bring in new liquidity and characterised by investments in a single solution with the possibility of repayment of the cost applied on the initial single premium in the form of a Bonus, starting from a pre-established date.
41. Poste Vita SpA manages a portfolio of investments separately from the other assets held by the insurance company. This portfolio of investments, known as Posta ValorePiù, falls within the definition of a Separate Account pursuant to ISVAP Regulation 38 of 3 June 2011 (hereinafter ISVAP Regulation 38). Posta ValorePiù generates a return on which the benefits of the insurance contracts linked to it are revalued.
42. The modular policy Poste Vivere Protetti complements the protection coverage available to retail customers, to protect their health, home and pets. Modules and related coverages can always be added or removed as customers’ needs change, and the coverages, which are indicated in the policy, always form a single contract.