repricing is starting to make itself felt in car collection

Enrico San Pietro (general manager) does not rule out further adjustments to car price lists to offset inflation and the increase in the frequency of claims

Per Unipol it was a decidedly positive start to the year. The group led by Charles Cimbri in fact, it closed the first quarter of the year with a 15.3% growth in net profit and a 12% increase in premium income.

Commenting on the results, the general manager of the Group and CEO of UnipolSai, Matteo Laterza, told analysts that the first quarter was in line with the business plan and then explained: “One of the main drivers of growth in the non-auto sector has been bancassurance; the effects of the repricing are beginning to be felt in motor vehicle collection”. On the increase in the combined ratio (again for motor vehicles), as regards the increase in premiums, the manager explained that the effects will begin to be felt between the end of 2023 and the beginning of 2024, while on the improvement in Solvency of Unipol, the recovery of the financial markets and the generation of capital had an impact.

Asked by analysts about the possible return to shareholders of part of UnipolSai’s substantial excess capital, Laterza said: “It is too early to comment on dividends” by UnipolSai.

Henry St. Petergeneral manager insurance of Unipol explained to analysts that the combined ratio is worsening in the motor, “we had 97.5 now we are at 102, while in the non-motor business we register an improvement”.

As for the car, St. Peter said he found “a negative impact of the inflation rate and frequency. We can assume that half of the deterioration of about five percentage points is due to inflation and the other half to the increase in the attendance rate”.

The significant impact of the premium increase”it is already manifesting itself on the retention rate, which is decreasing just a little but without being worrying”. According to St. Peter”the increase in the average premium will be 7-8% against an inflation rate of 5% in 2022” e you “an inflationary effect on the average cost of the claim in the first quarter which is approximately 2.5%”. Unipol does not rule out further adjustments to the price lists to compensate, in addition to inflation, also the increase in the frequency of claims: the increases that have already taken place “might be enough” to offset inflation”however we also register an increase in frequencies, even if not very strong. We will take stock of this next month”.

edited by Vincenzo Giudice

Read also Unipol ends the first quarter with a profit of €284m (+15.3%)

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2023-05-15 07:47:39

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