MILAN (Reuters) – Italy’s second-largest insurer UnipolSai said on Friday its had exceed the targets set out in its three-year business plan ending last year, despite a still weak motor business weighing on its 2021 profit.
Under the 2019-2021 plan, UnipolSai and its parent holding company Unipol had targeted an overall net profit of 4 billion euros and dividends totalling 1.9 billion euros for both companies.
In 2021 consolidated net profit for UnipolSai stood at 723 million euros ($823 million) down 15.2% year earlier when it had benefited from a significant decline in motor vehicle claims as a result of reduced traffic due to coronavirus-related lockdowns.
“Even though 2021 was still influenced by the pandemic, limitations to the movement of people were less affected, while average motor premiums continued to fall, therefore reducing the technical profitability of the business,” the Bologna-based insurer said in a statement.
UnipolSai’s combined ratio – a measure of profitability for its property and casualty division, its biggest revenue earner – was at 92.5%, worsening from 85.4% a year earlier when it benefited from a reduction in claims due lockdown restrictions.
Readings below 100% indicate profitability.
UnipolSai said it planned to pay a 0.19 euro per share dividend this year, stable from the previous year.
Its parent company Unipol said in a separate statement it would pay a dividend of 0.30 euro per share, up 7.1% from previous year.
($1 = 0.8785 euros)
(reporting by Andrea Mandalà, editing by David Evans)
