(Alliance News) - Unipol Spa reported on Friday that it had posted a profit increase to EUR1.33 billion in 2023 from EUR866 million a year earlier.

Non-life premiums rose sharply to EUR8.65 billion from EUR8.30 billion in 2022, with Motor up 3.0 percent and Non-motor up 5.2 percent, and a combined ratio down slightly to 98.2 percent from 98.6 percent.

The Non-Life Sector's pre-tax result was EUR896 million compared to EUR846 million in FY 2022 determined under previous accounting principles and EUR731 million in FY 2022 result recalculated under new accounting principles.

In the life business, premium income rose to EUR6.41 billion from EUR5.34 billion, with a pretax profit of EUR375 million from EUR273 million a year earlier.

Following strong 2023 figures, the company decided to raise the dividend to EUR0.38 from EUR0.37 a year earlier.

As of December 31, 2023, consolidated shareholders' equity amounted to EUR9.80 billion from EUR8.58 billion as of December 31, 2022, of which EUR7.97 billion was attributable to the group. In addition to the positive result for the period, the change during the period benefited from the recovery of the financial markets.

According to preliminary data, the group solvency ratio as of December 31, 2023, is 200 percent - in line with the value as of December 31, 2022 - and takes into account expected dividends and the consolidation of Banca Popolare di Sondrio Scpa.

In addition, Unipol's board approved the merger of UnipolSai--and other subsidiaries--by launching a takeover bid on the latter at EUR2.70 per share.

The offer represents a premium of 13 percent over Thursday's close and 16 percent over the weighted arithmetic average of the past six months.

For Unipol, the deal is aimed at rationalizing the group's corporate structure while simplifying the group's unitary management and governance decision-making processes. The merged company will be one of Italy's leading insurance companies, listed on regulated markets, which will also play the role of parent company of the Unipol Group, in line with national and international best practices and market expectations.

In addition, it will serve to optimize Unipol Gruppo's cash and funding profile; achieve some cost synergies related to the optimization of central structures and related activities; and optimize the group's solid solvency position, also from a prospective perspective.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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