Unipol profits after the accounts, few surprises for brokers

(Il Sole 24 Ore Radiocor) - Unipol shares gained following the publication of its nine-month results. Specifically, restated consolidated net profit as of September 30th amounted to €1.2 billion (+48%), while reported net profit as of June 30th stood at €1.12 billion (+54.7%) . Total direct premiums amounted to €12.6 billion (+10.8%), with the P&C business at €6.78 billion (+4.5%). Net insurance income reached €961 million (+45%). The combined ratio also improved to 93.5% (from 93.9%), and the group solvency ratio stood at 220% (the insurance solvency ratio was 265%). Net profit for the quarter amounted to €486 million.

According to Equita, "as anticipated, the third-quarter result benefited from a positive extraordinary component " on the quarterly profit "of approximately €170 million after taxes due to Unipol's acceptance of BPER's offer for Sondrio. Net of this component, we estimate a net profit of €316 million, still a significant increase of 15%" year-over-year. The same analysts add that the company "reported slightly better-than-expected results , mainly thanks to the P&C business" and that the positive pre-tax surprise stems from "a higher net financial result of €188 million" versus estimates of €79 million.

Intermonte's assessment is balanced: "Unipol reported results substantially in line with expectations and without any particular surprises ." Analysts note "a slightly less favorable than expected performance of the combined ratio, partly due to prudent reserve policies," while on the capital front, "the solvency ratio stands at 220%, while for insurance activities, the solvency ratio reaches 265%." The group explains that "up to today, the insurance business has proceeded normally and no significant events are currently reported; in particular, the main actions envisaged in the 2025-2027 strategic plan are ongoing and are expected to gradually produce their effects over the coming months." Since the beginning of the year, however, the company's stock remains up nearly 60%.