Societa Cattolica di Assicurazione : Results at 9M2016 approved

Società Cattolica di Assicurazione - Società Cooperativa

Sede in Verona, Lungadige Cangrande n.16

C.F. 00320160237 - Iscritta al Registro delle Imprese di Verona al n. 00320160237 Società iscritta all'Albo delle Società Cooperative al n. A100378

• RESULTS FOR THE THIRD QUARTER OF 2016 APPROVED1 CONSOLIDATED NET PROFIT AT € 56 MILION

  P&C premiums for € 1,382 million (-2.9%) and Life premiums for € 2,100 million (-24.9%) contributed to total premiums written for € 3,493 million (-17.4% compared with September 30th, 2015).

  The combined ratio came to 93.2%2.

  The consolidated net profit for the third quarter came to € 56 million (-44% compared with September 30th, 2015), while Group net profit amounted to € 45 million (-46.4%).

  The Solvency II margin, calculated using the Standard Formula, came to 1.75 times the regulatory minimum.

• AMENDMENT TO 2017 FORECASTS

Verona, November 11th, 2016. The Board of Directors of Cattolica Assicurazioni, which met today in Verona under the chairmanship of Paolo Bedoni, approved the Interim management report as at September 30th, 2016 of the Cattolica Group.

The first nine months of the year disclosed a consolidated net profit of € 56 million (€ 100 million in September 2015; -44%) and Group net profit3 of € 45 million (€ 84 million in September 2015; -46.4%). The third quarter of 2016, with a Group profit of

€28 million, indicates a return to significant core profitability after the impairments on bank equity investments recorded in the first part of the year4 which negatively affected the interim results.

Total premiums written for direct and indirect business - Life and P&C5 - came to

€ 3,493 million, down 17.4% compared with € 4,230 million in the third quarter of 2015. This figure in particular for the Life business was influenced by the negative effects deriving from the situation in which Banca Popolare di Vicenza finds itself, which continued to limit the ability to write premiums.

Premiums written for direct business dropped from € 1,423 million as of September 30th, 2015 to € 1,382 million at the end of September 2016 (-2.9%).

1 The Interim Management report as of September 30th 2016 has been drawn up on a voluntary basis for the purpose of ensuring continuity with the previous periodic quarterly disclosure.

With the resolution No. 19770 of October 26th 2016 CONSOB has approved the amendments to the Regolamento Emittenti (Issuers' Regulations) on the matter of Interim Management Reports, granting the faculty to listed

companies to chose weather to publish or not the periodical additional information. The new provisions will apply as from January 2nd, 2017.

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

3 Net of minority interests.

4 The impairments for the first six months were related to Cassa di Risparmio di San Miniato (35 million), Banca

Popolare di Vicenza (6 million), Veneto Banca (2 million), other investments (4 million). In the third quarter an impairment on the holding in UBI Banca (3 million) has been recognised.

5 Includes insurance premiums and investment policies for Life classes as defined by IFRS 4.

PRESS RELEASE

The motor segment

posted premiums written of € 785 million, (-3.3%) compared

with September 30th, 2015. The number of customers increased of over 63 thousand polices from the beginning of 2016 (+2.0%6); the average premium was affected by the continuing market phase of reductions in tariffs, albeit with lower decrease rates than in 2015.

The non-motor classes, with premiums written for € 597 million, decreased 2.4%

with respect to choices.

September 2015 (€ 611 million), mainly as a result of underwriting

The combined ratio2 rose from 92.5% as at September 30th, 2015 to 93.2%. This

slight increase is the

consequence of the motor business profitability deterioration,

due to the generalised and persistent decrease of the average premium and to the effects of the earthquake on August 24th in Central Italy.

In the Life sector, direct premiums came to € 2,100 million. The drop (-24.9%) is due to a significant extent to the weakness of the distribution channels linked to Banca Popolare di Vicenza (-€ 312 million with respect to the third quarter of 2015; -69%)7. With regard to the other distribution channels, premiums written were in line with the expectations for traditional products, slowing down, but in line with the market trends for class III products.

The result from investments8 came to € 356 million (compared with € 442 million as

of September 30th,

2015); the result was affected by the afore-mentioned bank

impairments. The 2015 result also benefited from a significant generation of capital gains from trading, made possible by particular market conditions.

Investments amounted to € 21,874 million. Gross technical provisions for P&C business amounted to € 3,538 million (€ 3,589 million as at December 31st, 2015)

and the Life

(€ 16,607 million as of December 31st, 2015).

The figures as of September 30th, 2016 confirm the Group's equity soundness with

December 31st, 2015, before distribution of the dividends).

The Group's Solvency II margin came to 1.75 times the regulatory minimum. The ratio was calculated applying the Standard Formula.

The agency network at the end of September 2016 was made up of 1,510 agencies and the bank branches which place Group products as of September 30th, 2016 numbered 5,683.

In an insurance market still characterised by sharp competition and by the persistence of low interest rates and a high volatility of the equity sector, the Group's

6 Figure relating to the period between December 31st, 2015 and October 21st, 2016 (Fata Assicurazioni until September 30th, 2016).

7 Total Life premiums written in the third quarter of 2016 via the insurance companies of the partnership with

Banca Popolare di Vicenza come to 142 million.

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

PRESS RELEASE

operations will continue with attention to profitability both in the P&C and in the Life classes, favouring products with lower capital absorption.

With reference to the earthquakes that took place after the end of the third quarter, at

the present moment economic effects.

the Company does not expect them to produce significant

With the only exception of possible uncertainties arising from the financial markets,

also influenced by

exogenous factors on the general economic trend, the Parent

Company envisages,

as of today, to be able to maintain the expected level of

remuneration for Members and Shareholders.

******

Cattolica Assicurazioni's Chairman, Paolo Bedoni, declared: "The Cattolica Group is about to end, with a good set of results, a still difficult year for the Italian economy, which is eventually emerging from a long period of recession, but whose recovery is still struggling to take off due to the persistence of structural problems of the business system reflected on competitiveness and on the willingness to invest. In this picture

Cattolica has chosen

to focus firmly on a dynamic approach by innovating and

qualifying its insurance offer, especially in business areas in which it can best express its competitive capacity, also thanks to important partnerships achieved in the meantime. Cattolica is able to face the new market challenges with the necessary

strategic framework soundness".

and with the strength deriving from its financial and capital

The Managing Director of Cattolica Assicurazioni, Giovan Battista Mazzucchelli,

declared: "The results

for the third quarter show a return to a core profitability if

compared with the half-year results, which were affected by significant impairments on bank holdings. The third quarter net consolidated profit stands at €56 million. Within a framework of desirable, albeit limited, financial recovery and stability of the Italian economy, Cattolica's overall financial result is expected to enable the Group to maintain the expected level of remuneration for Members and Shareholders. Its capital and financial soundness and the actions put in place within the frame of the business plan in order to strengthen competitiveness, allow the Group to resume its growth process in the context of an insurance sector slowed down by the drop of the average motor premium and by the persistence of low interest rates that limit the profitability of financial investments and that make it difficult to reach a strong development in the life business".

Today the Board of

Directors has been informed by the Managing Director of the

beginning of a process to draw up the Budget for 2017 financial year, that will be submitted to the Board next January.

On the basis of the

first provisional management data a consolidated profit at

December 31st 2017 of about €150 million is expected.

The reason behind the difference with the previous forecasts (about €200 million communicated in April 20169) is largely due to some significant events and elements such as which took place during the last months:

9 See the Information Note attached to the Board of Directors Explanatory Memorandum on the items on the agenda of the General Meeting of April 15/16th, 2016, drawn up in compliance with art. 125-Ter of Legislative