Società Cattolica di Assicurazione - Società Cooperativa

Registered office in Verona, Lungadige Cangrande n.16

Tax Code 00320160237 -

Enrolled in the Verona Companies' Register with no. 00320160237

Company enrolled in the Register of Cooperative Companies with no. A100378

PRESS RELEASE

First half of 2014 positive for the Cattolica Group

PROFIT INCREASED BY 30.2%

56 MILLION IN THE FIRST HALF-YEAR

The results for the first half of 2014 approved by the Board of Directors.

The comments of the Chairman Paolo Bedoni and of the Managing Director

Giovan Battista Mazzucchelli.

Total premiums written totalling € 2,957 million (+30.6% compared with the first half of 2013) with a consolidated net profit of € 56 million, up 30.2% when compared with June 2013. Total premiums for direct business were made up of non-life premiums for € 844 million and life premiums for € 2,070 million. The combined ratio continued to improve to 91.5% when compared with June 2013 (93.5%). The solvency margin1 stood at 1.45 times the regulatory minimum2.

These are the highlights of the Consolidated interim report as at June 30th, 2014 approved by the Board of Directors of Cattolica Assicurazioni, which met today in Verona under the chairmanship of Paolo Bedoni.

The first six months of the year revealed for the Cattolica Group a significant increase in consolidated net profit of € 56 million, up 30.2% compared with € 43 million in the same period of 2013.

The Group net profit3 of € 48 million increased by 60% compared with € 30 million in

June 2013.

Total premiums written for direct and indirect life and non-life business4 amounted to € 2,957 million, up 30.6% compared with € 2,264 million in the first half of 2013.

Non-life business

Premiums written for direct business fell from € 875 million as at June 30th, 2013 to

€ 844 million at the end of June 2014 (-3.5%).

In the motor segment, premiums written amounted to € 501 million, down by 5.5% when compared with June 30th, 2013, against a market figure, which showed in the first quarter of 2014 a drop in premiums written in the motor segment by 5.7%5. The

1 Takes into account the acquisition of Fata Assicurazioni, whose impact on the solvency margin, net of the subordinated loan of € 100 million issued on December 17th, 2013, which was partly used to finance the acquisition, is 0.05 times the regulatory minimum.

2 The statement of financial position figures at the close of the first half of 2014 include those related to FATA Assicurazioni acquired on June 11th, 2014, whose economic effects will be consolidated by the Cattolica Group as

from the second half of 2014.

3 Net of minority interests.

4 Includes insurance premiums and investment contracts of life classes as defined in IFRS 4.

5 Source: IVASS circular of August 1st, 2014, like-for-like basis.

PRESS RELEASE

Group counteracted the generalised drop in the average premium on the market acquiring new customers (more than 52 thousand new motor polices were sold at the beginning of the year; +2.4%6).

Non-motor classes, with premiums written of € 343 million are slightly down when compared with June 2013 (€ 345 million, -0.4%), resulting, rather than from a given market trend, from specific assumptive choices that favour an increase in premiums written related to policies for retail customers.

The combined ratio7 continued to improve, dropping from 93.5% as at June 30th,

2013 to 91.5%, disclosing a further improvement even when compared to the end of

2013 (93.5%).

Life business

In the life business, direct premiums written stood at € 2,070 million, improving compared to the first half of 2013 (+50.5%): traditional classes (Class I +57.8% and Class V +27.4%) and class III (+48.4%) increased.

Financial operations and financial position

The results of investments8 amounted to € 264 million (compared with € 252 million as at June 30th, 2013). Investments as at June 30th, 2014 amounted to € 18,796 million.

Gross technical provisions for non-life business amounted to € 3,641 million (€ 3,072 million as at December 31st, 2013). The considerable growth in premiums written pushed the life business provisions, which include financial liabilities, to € 14,432 million (€ 13,165 million as at December 31st, 2013).

The figures as at June 30th, 2014 confirm the Group's equity soundness with a consolidated shareholders' equity of € 1,652 million (€ 1,561 million as at December 31st, 2013).

The Group's solvency margin amounted to 1.45 times the regulatory minimum. This value takes into account the acquisition of Fata Assicurazioni on June 11th, 2014.

Sales network

The agency network at the end of June 2014 had 1,590 agencies (including 165 agencies of Fata Assicurazioni) and bank branches that place products of the Group as at June 30th, 2014 were 5,959.

Outlook for business activities

In a still uncertain macro-economic context, the Group will continue to pursue all actions aimed at consolidating the overall result.

Life premiums written will continue to focus on the value of the products distributed through various channels.

Non-life classes, despite the strong competitiveness in the market, will consolidate profitability due to the actions already undertaken to protect the quality of the portfolio.

******

6 Figure related to the period from January 1st, 2014 to July 25th, 2014.

7 Combined ratio of retained business: 1-(Technical balance/net premiums), including other technical items.

8 Financial assets excluding investments whose risk is borne by the policyholders, gross of tax effects.


PRESS RELEASE

The Chairman of Cattolica Assicurazioni, Paolo Bedoni, declared: "The excellent results of the interim report must be read with a twofold view. On the one hand, they are the really encouraging bases for starting a three-year plan that we will launch in September and that will have ambitious targets for growth in terms of quality and size of the Group supported by important choices on innovation, organisation, efficiency and competitiveness. On the other hand, they show the great attention of Cattolica to company profitability and hence to the consistency of a dividend policy that rewards the loyalty and quality of the corporate base and the reliability of the shareholders of the Group.

In particular, this interim report shows that Cattolica produces and distributes value as part of a gradual consolidation of its financial position thanks also to an investment

policy for enhancing its social and territorial location".

The Managing Director of Cattolica Assicurazioni, Giovan Battista Mazzucchelli, declared: "The half-year figures show extremely positive indications with regard to the capacity of Cattolica to continue to grow significantly despite the persistent economic and market difficulties that oblige the insurance companies to compete increasingly. The growth in consolidated net profit by more than 30 per cent compared to last year is the result of improvement in both technical efficiency and portfolio quality as part of a decline in prices and increase in the number of insured customers. In this regard, we note the further significant improvement of the combined ratio determined by the constant recovery of efficiency and productivity, in particular.

We have reason to believe that this framework will be strengthened in the second half of the year so we can start the new business plan with a 2014 characterised by more than satisfactory results for our shareholders".

******

The executive appointed to draw up the corporate accounting documents, Giuseppe Milone, declares according to paragraph 2 Article 154bis of "Testo Unico della Finanza" that the accounting disclosure contained in this press release conforms to the documental results, the books and the accounting records.

The company informs that the Interim report as at June 30th, 2014 of the Cattolica Group, inclusive of the Independent Auditors' Report, will be available to the public at the Registered office and on the Company's web site www.cattolica.it, as provided and within the time required by applicable laws and regulations.

The reclassified statements as at June 30th, 2014 of the Consolidated interim report of the Cattolica Group are attached herewith, by informing that the expected Independent Auditors' Report has not yet been issued.

SOCIETÁ CATTOLICA DI ASSICURAZIONI

CONTACTS

Investor Relations Officer Institutional communication

Carlo Ferraresi Aldo Canale

Tel. 045 8391202 Tel. 045 8391613 investor.relations@cattolicaassicurazioni.it aldo.canale@cattolicaassicurazioni.it

Cattolica Group - INTERIM REPORT AS AT JUNE 30TH, 2014

(prepared in accordance with international accounting standards)

Reclassified statement of financial position (€ millions) June 30th, 2014 December 31st, 2013

Items from obligatory statements (*)

Assets
Investment property and properties 463 395 4.1 + 2.1
Investments in subsidiaries, associates and joint ventures 85 83 4.2
Loans and receivables 1.156 1.172 4.4
Held to maturity investments 253 270 4.3
Available for sale financial assets 13.400 11.235 4.5
Financial assets at fair value through profit or loss 2.869 3.267 4.6
Cash and cash equivalents 570 505 7
Investment 18.796 16.927
Intangible assets 308 289 1
Technical provisions - reinsurance amount 755 681 3
Other assets net of other liabilities 632 628 (**)
ASSETS 20.491 18.525
Shareholders' equity and liabilities
Group capital and reserves 1.391 1.290
Group result 48 44 1.1.9
Group shareholders' equity 1.439 1.334 1,1
Shareholders' equity pertaining to minority interests 213 227 1,2
Consolidated shareholders' equity 1.652 1.561 1
Provision for unearned premiums 785 671
Provision for outstanding claims 2.856 2.401
Gross technical provisions - non-life 3.641 3.072 3
Gross technical provisions - life 13.260 12.167 3
Other gross non-life technical provisions 2 2 3
Other gross life technical provisions 361 360 3
Financial liabilities 1.575 1.363 4
of which deposits from policyholders 1.172 998
SHAREHOLDERS' EQUITY AND LIABILITIES 20.491 18.525

Reclassified Income Statement (€ millions) June 30th, 2014 June 30th, 2013

Items from obligatory statements (*)

Revenues and income
Net premiums 2.626 2.044 1.1
Commission income 1 1 1.2
Income and charges from financial instruments at fair value through profit or loss 62 22 1.3
of which class D 58 18
Income from investments in subsidiaries, associates and joint ventures 2 1 1.4
Income from other financial instruments and investment property 309 330 1.5
of which changes in other financial liabilities - -1
Other revenues 26 32 1.6
Total revenues and income 3.026 2.430
Costs and charges
Net charges relating to claims -2.549 -1.931 2.1
Commission expense -1 -2 2.2
Charges from investments in subsidiaries, associates and joint ventures - - 2.3
Charges from other financial instruments and investment property -40 -75 2.4
Operating expenses -248 -239 2.5
Commission and other acquisition costs -173 -163
Operating expenses relating to investments -11 -8
Other administrative expenses -64 -68
Other costs -72 -102 2.6
Total costs and charges -2.910 -2.349
Pre-tax profit for the period 116 81
Income taxes for the year -60 -38 3
Net profit for the period 56 43
Profit from discontinued operations - - 4
CONSOLIDATED PROFIT (LOSS) FOR THE PERIOD 56 43
Profit pertaining to minority interests 8 13
PROFIT PERTAINING TO THE GROUP 48 30

(*) Indicates the items of the statements in the consolidated financial statements as per ISVAP regulation No. 7 of July 13th, 2007.

(**) Sundry receivables, other asset items and other tangible assets (statement of financial position items under assets = 5 + 6 + 2.2) net of allowances, payables and other liability items (statement of financial position items under liabilities = 2 + 5 + 6)

The statement of financial position figures of the first half of 2014 include those related to FATA Assicurazioni acquired on June 11th, 2014.

distributed by