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1. Company Snapshot

1.a. Company Description

Unipol Gruppo S.p.A., together with its subsidiaries, provides insurance and banking services primarily in Italy.The company operates through Non-Life Insurance Business, Life Insurance Business, Banking Business, Real Estate Business, and Holding and Other Businesses segments.It offers non-life insurance products for vehicles, sports craft, and travel; home and condominiums; work related to businesses, traders, professionals, and legal protection; accident and health protection; and investments and welfare.


The company also provides life insurance products; and reinsurance services to individuals and legal entities through its agency network.In addition, it is involved in the management of non-performing loans; operation and management of real estate properties; operation of resorts and hotels; and agricultural, harbor, and healthcare businesses.The company was formerly known as Unipol Gruppo Finanziario S.p.A. and changed its name to Unipol Gruppo S.p.A. in June 2017.


Unipol Gruppo S.p.A. was founded in 1961 and is based in Bologna, Italy.

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1.b. Last Insights on UNI

Unipol Gruppo S.p.A.'s recent performance was driven by strong profitability, with a net profit of €1.12 billion for the first nine months of 2025. The motor business showed improvements in average premium, claim frequency, and average cost of claims, aligning with targets. Additionally, the company's dividend yield of over 3.1% offers potential stability and income in a mixed European economic landscape. According to recent earnings calls, Unipol's solid financials and improving business conditions position the company for sustained growth.

1.c. Company Highlights

2. Unipol's Q3 Earnings: A Strong Performance

Unipol reported a net profit of EUR 1.12 billion in the first 9 months of the year, with an actual EPS of 0.4184, beating analyst estimates of 0.3257. The company's financial performance was driven by a solid trend in the top line, particularly in the health business and bancassurance distribution channel. The technical profitability of the motor business is on track with the target of the industrial plan. The company's combined ratio improved, driven by the motor business, which saw a relevant improvement due to the fact that pricing actions are working. Loss frequency is decreasing, and the average cost of the claim is back to normal after the spike last year.

Publication Date: Nov -08

📋 Highlights
  • Net Profit Surge:: EUR 1.12 billion in the first 9 months driven by EUR 150 million net gain from BPER Banca/Sondrio exchange tender.
  • Provision for Early Retirement Fund:: EUR 80 million charged to accelerate generational change and skill acquisition.
  • Combined Ratio Improvement:: Motor business recovery boosted by reduced loss frequency and normalized claim costs, offsetting non-motor reinsurance challenges.
  • Life Business Growth:: Top-line expansion supported by 12 bps increase in asset yield under management via bancassurance and agents.
  • Expense Ratio Hike:: Linked to agent incentive schemes tied to portfolio profitability, reflecting 2024 results and 2025 forecasts.

Business Segment Performance

The life business had a solid growth in the top line, driven by agents and bancassurance, with an increase in the yield of the assets under management of almost 12 basis points. The finance department did a good job, contributing to the overall numbers. The non-motor business was conservative in its reserving policy, mainly regarding the treatment of nat cat in the quarter. Enrico Pietro elaborated on the nat cat approach, explaining that the Italian season of weather-related events was benign, resulting in an additional percentage point in non-motor combined ratio compared to the previous year.

Valuation and Dividend Yield

Unipol's Price-to-Book Ratio stands at 1.45, indicating a relatively reasonable valuation. The Dividend Yield is 4.55%, which is attractive for income investors. Given the company's strong financial performance and improving combined ratio, the current valuation appears to be justified. Analysts estimate next year's revenue growth at 2.2%, which suggests a stable outlook for the company.

Outlook and Risks

Matteo Laterza addressed the regional tax in Italy, stating that the company is still in the process of understanding the final impact of the budget law on their numbers, starting from 2026. The company's exposure to Italian government bonds, which is EUR 17 billion, may be a risk factor, but Unipol is maintaining its investment and looking to diversify into other assets. Overall, Unipol's strong Q3 earnings and improving operational metrics suggest a positive outlook for the company.

3. NewsRoom

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AM Best Upgrades Credit Ratings of SIAT-Società Italiana Assicurazioni e Riassicurazioni p.A.

Jul -17

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AM Best Assigns Credit Ratings to Unipol Assicurazioni S.p.A.

Jul -17

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Unipol Assicurazioni SpA (UFGSY) Q1 2025 Earnings Call Highlights: Strong Performance in ...

May -19

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.83%)

6. Segments

Non-life Business

Expected Growth: 4.83%

Unipol Gruppo S.p.A.'s Non-life Business growth of 4.83% is driven by increasing demand for motor insurance, expansion into new regions, and strategic partnerships. Additionally, the company's focus on digitalization and process efficiency has improved customer experience, leading to higher retention rates and new business acquisition.

Life Business

Expected Growth: 4.83%

Unipol Gruppo S.p.A.'s Life Business growth of 4.83% is driven by increasing demand for protection and savings products, expansion into new distribution channels, and strategic partnerships. Additionally, the company's focus on digitalization, cost optimization, and product innovation have contributed to its growth momentum.

Holding and Other

Expected Growth: 4.83%

Unipol Gruppo S.p.A.'s Holding and Other segment growth of 4.83% is driven by strategic investments in digital transformation, cost optimization initiatives, and expansion into new business lines, such as asset management and real estate services, which have improved operational efficiency and diversified revenue streams.

Intersegment Eliminations

Expected Growth: 4.83%

Unipol Gruppo S.p.A.'s 4.83% intersegment eliminations growth is driven by increased insurance premiums, expansion of bancassurance channels, and cost savings from operational synergies. Additionally, the company's diversified business model, strong brand presence, and strategic investments in digitalization have contributed to this growth.

Real Estate

Expected Growth: 4.83%

Unipol Gruppo S.p.A.'s Real Estate segment growth of 4.83% is driven by increasing demand for residential and commercial properties, strategic acquisitions, and effective asset management. Additionally, favorable interest rates, government incentives, and a strong Italian economy contribute to the segment's growth.

7. Detailed Products

Life Insurance

Unipol Gruppo S.p.A. offers a range of life insurance products that provide financial protection to individuals and families in the event of death, disability, or critical illness.

Non-Life Insurance

Unipol Grupao S.p.A. provides non-life insurance products that cover damages or losses to properties, vehicles, and businesses.

Health Insurance

Unipol Gruppo S.p.A. offers health insurance products that provide medical coverage to individuals and families.

Pension Funds

Unipol Gruppo S.p.A. provides pension fund products that help individuals save for retirement.

Bancassurance

Unipol Gruppo S.p.A. offers bancassurance products that combine banking and insurance services.

Asset Management

Unipol Gruppo S.p.A. provides asset management services that help individuals and institutions manage their investments.

Real Estate Services

Unipol Gruppo S.p.A. provides real estate services that help individuals and businesses buy, sell, and manage properties.

8. Unipol Gruppo S.p.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Unipol Gruppo S.p.A. operates in the insurance industry, where substitutes are limited. However, the company faces competition from other insurance providers, which can be considered as substitutes.

Bargaining Power Of Customers

Unipol Gruppo S.p.A. has a large customer base, which reduces the bargaining power of individual customers. Additionally, the company's diversified product offerings and strong brand reputation further reduce customer bargaining power.

Bargaining Power Of Suppliers

Unipol Gruppo S.p.A. relies on a network of agents and brokers to distribute its insurance products. While the company has some bargaining power due to its size, suppliers still have some negotiating power due to the specialized nature of their services.

Threat Of New Entrants

The insurance industry has high barriers to entry, including regulatory requirements and capital requirements. Additionally, Unipol Gruppo S.p.A.'s strong brand reputation and established distribution network make it difficult for new entrants to compete.

Intensity Of Rivalry

The Italian insurance market is highly competitive, with many established players competing for market share. Unipol Gruppo S.p.A. faces intense competition from other insurance companies, which can lead to pricing pressure and reduced profitability.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 30.37%
Debt Cost 5.54%
Equity Weight 69.63%
Equity Cost 9.63%
WACC 8.39%
Leverage 43.61%

11. Quality Control: Unipol Gruppo S.p.A. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Grupo Catalana Occidente

A-Score: 8.1/10

Value: 8.4

Growth: 4.3

Quality: 7.9

Yield: 9.4

Momentum: 9.0

Volatility: 9.7

1-Year Total Return ->

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Aviva

A-Score: 7.4/10

Value: 6.5

Growth: 5.4

Quality: 5.8

Yield: 9.4

Momentum: 8.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
ASR Nederland

A-Score: 7.1/10

Value: 5.7

Growth: 4.0

Quality: 6.4

Yield: 8.8

Momentum: 8.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Unipol Gruppo

A-Score: 6.9/10

Value: 5.0

Growth: 4.1

Quality: 6.4

Yield: 8.8

Momentum: 9.5

Volatility: 7.3

1-Year Total Return ->

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UNIQA

A-Score: 6.8/10

Value: 4.8

Growth: 3.4

Quality: 4.8

Yield: 8.8

Momentum: 10.0

Volatility: 9.0

1-Year Total Return ->

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NN Group

A-Score: 6.7/10

Value: 3.9

Growth: 3.4

Quality: 5.9

Yield: 8.8

Momentum: 9.0

Volatility: 9.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.59$

Current Price

19.59$

Potential

-0.00%

Expected Cash-Flows