Net Insurance Group Company Profile. - November

Transcription

1 Net Insurance Group Company Profile - November

2 Disclaimer The information contained in this presentation is confidential and proprietary and is intended only for the persons to whom it is transmitted by Methorios Capital SpA (hereinafter Methorios, MTH or the Company ). Any reproduction of this document, in whole or in part, or the divulgence of any of its contents, without the prior written consent of the Company, is prohibited. Receipt or possession of this document does not convey any rights to disclose its contents, in whole or in part, to any third party, or to develop, manufacture, use, or sell anything described herein. This document does not constitute an offer to sell any securities. Any such solicitation will be undertaken only under appropriate documents and pursuant to all applicable securities laws. The information set forth herein is believed by the Company to be reliable. It must be recognized, however, that projections and predictions about the company s future performance are necessarily subject to a high degree of uncertainly, and no warranty of such projections is expressed or implied hereby. Some of the statements contained in this presentation, including information incorporated by reference, discuss future expectations, or state other forward looking information. Those statements are subject to known and unknown risks, uncertainties and other factors, several of which are beyond the Company s control, which could cause the actual results to differ materially from those contemplated by the statements. The forward looking information is based on various factors and was derived using numerous assumptions. In light of the risks, assumptions, and uncertainties involved, there can be no assurance that the forward looking information contained in this presentation will in fact transpire or prove to be accurate. The Company makes no representation and undertakes no obligation to update the forward looking information to reflect actual results or changes in assumptions or other factors that could affect those statements. 2

3 Key People Profile KEY PEOPLE ROLE BACKGROUND Giuseppe Caruso CEO and Chairman Master Degree in Statistic at University of Siena From 1986 to 1988: Managing Director of Marketing Informative System at Tirrenia Assicurazioni Group From 1988 to 1991: Managing Director of Direct Marketing at Italian Diner s Club From 1991 to 2000: Head of Life Insurance and Managing Director of the business unit Loans Protection at FATA Assicurazioni (Generali Group) From 2001: CEO at Net Insurance S.p.A. From 2007: Chairman at Net Insurance Life S.p.A. Luigi Aiudi CFO (Supervisor of Group s Financial Reports ex art. 154 bis TUF) Master Degree in Economics at LUISS University Chartered Accountant and Auditor from1996 From 1989 to 1994: General Manager Assistant in Finance and Accounting area at SOFID From 1994 to 1996: Managing Director for Budgeting and Control at SOFID From 1996 to 2001: Managing Director in Finance and Accounting area at SOFID Vita S.p.A. From 2001: Head of Finance and Accounting area at Net Insurance S.p.A. From 2007: CFO at Net Insurance Life S.p.A. Elio Migliardi Head of Insurance Department Master Degree in Law at Napoli University From 1985 to 1987: Supervisor of the sales organization at FATA Assicurazioni S.p.A. (Generali Group) From 1988 to 1990: Head of Sales for Rome Area at Unipol Assicurazioni From 1991 to 1996: Head of Motor Insurance and head of Sales Organization for Centre-South area at Allsecures Assicurazioni S.p.A. From 1996 to 2001: Head of the sales organization at FATA Assicurazioni S.p.A. (Generali Group) From 2001: Head of Insurance Department at Net Insurance S.p.A. 3

4 Table of Contents I GROUP DESCRIPTION II TARGET MARKET AND MAIN CLIENTS III BUSINESS MODEL IV KEY FINANCIALS V OFFERING STRUCTURE VI APPENDIX 4

5 Group Description Net Insurance is an insurance group active in non-life and life business through two separate companies: Net Insurance S.p.A. and Net Insurance Life S.p.A. The Group specializes in the offering of credit protection insurance products The Group, given its remarkable know-how, has a leadership position in the insurance covers related to Cessione del Quinto (CQ), a personal loan guaranteed by the salary (CQS) or by the pension (CQP). Net Insurance Group s mission could be defined as it follows: propose innovative insurance covers with a clear performance visibility develop partnerships focusing on the finance area; guarantee to its partners and its customers an high-standard level of the service GROUP MILESTONES 2000 Foundation 2004 Strategic Agreement with Swiss RE that became a new shareholder 2006 Entry of Unicredit (the largest Italian bank) in the equity 2006 Involvement in the establishment of CQService SpA (taken over by Zenith Service SpA in 2012 ) 2007 Entry of UBI (Italian mid size bank) in the equity 2008 Establishment Net Insurance Life SpA 2011 Fusion through incorporation of Personal Loan Holding in Net Insurance SpA 2011 Monte dei Paschi (the third Italian bank for size) and Banca Etruria (Italian mid size bank) became new shareholders 2012 Veneto Banca (Italian mid size bank) became new shareholder 2013 Acquisition of a shareholding in Techub SpA 2013 Banca Popolare di Bari (Italian mid size bank) and AXA Group became new shareholders AN EFFICIENTLY-MANAGED GROWING HISTORY 5

6 Group Description Business Overview AT A GLANCE Net Insurance is a Groups which was born on innovation: back in 2000 the founders identified a gap in the insurance products related to Cessione del Quinto, and exploited this niche becoming in a few years a leader insurance company. Today, thanks to the gained experience, to the strong specialization and to the availability of sector-specific scoring tools, Net Insurance still holds a competitive advantage against its main competitors Net Insurance is a highly-integrated Group, which manage the industrial chain through subsidiaries dealing on one hand with the disbursement of the loans according to Cessione del Quinto procedures (Dynamica Retail S.p.A. and Terfinance S.p.A.), an on the other hand with the supply of services related to the management of consumer credit (Techub S.p.A. and Zenith Services S.p.A.) SHAREHOLDERS BUSINESS LINES Core Business Business to Business The Group mainly operates with a B2B setting, through partnerships with banks and consumer credit companies. The insurance coverages related to CQS and CQP represent the main focus area. Other business lines Business to Consumer Net Insurance shares with general agents and brokers plans aimed to the distribution of innovative products, characterized by clearness and simplicity, based on a common specialization path in customer service. 4% 5% 4% 3% 3% 2% 1% 1% Charter Members NISA Management Net Insurance Swiss Re UBI Veneto Banca Business to Business to Consumer Operating through the web marketing and the direct marketing channels, Net Insurance is able to directly offer its own products to groups of retail clients with similar features (Affinity Groups and utilities). 10% 3% 1% 63% Methorios Capital Axa Banca Etruria Banca Popolare di Bari Banca MPS Net Insurance On Line Net Insurance supports the business to business and the business to consumer activities with technological investments both on its own website and on its partners websites. Unicredit INNOVATION CAPABILITY AND STRONG KNOW HOW ARE KEY TO SUCCESS 6

7 Group Description - Structure NET INSURANCE GROUP AND ITS SUBSIDIARIES The Group and its subsidiaries are well diversified and vertically integrated. The Group is composed by Net Insurance S.p.A., and its 100% controlled subsidiary, Net Insurance Life S.p.A., which are active in the insurance business, respectively in non-life and in life insurance. The other subsidiaries Dynamica Retail S.p.A. and Terfinance S.p.A. are both active in Cessione del Quinto and Anthilia Holding S.r.l., Zenith Service S.p.A. and Techub S.p.A. offer supporting services of any kind Insurance Salary Guaranteed Loans Consultancy Services *39.9% 10.8% 100% 43.9% 15.0% 7.1% Dynamica Retail S.p.A Terfinance S.p.A Net Insurance Life S.p.A. Techub S.p.A. Anthilia Holding Zenith Service is a financial company specialized in the debursment of salary (pension) guaranteed loans, operating all over the country mainly operates in the salary (pension) guaranteed loans, and it is active all over Italy is the company of the Group which is active in the life insurance. It is a priviliged partner for the clients and the distribution channels of the Group and it can offer tailor-made coverages mainly offers ICT services and it develops systems for the consumer credit segment, namely for salary (pension) guaranteed loans S.r.l. is a holding dedicated to asset management with a relevant stake in Anthilia Capital Partners SGR S.p.A. offers back-office services to financial institutions and consultancy services for structuring securitizations VERTICAL INTEGRATION TO COVER THE ENTIRE VALUE CHAIN * 19,9% is directly owned by Net Insurance S.p.A. e 20% indirectly owned through Net Insurance Life S.p.A. 7

8 Group Description Corporate Governance KEY PEOPLE General Management G. Caruso CFO L. Aiudi* Manager Insurance Area E. Migliardi Markets Manager G. Caruso Manager Internal Services G. Caruso BOARD OF DIRECTORS Chairman: Rocchi Alfredo CEO: Caruso Giuseppe Board Member: Amato Arturo Board Member: Amato Francesca Romana Board Member: Amato Giuseppe Romano Board Member: Amato Renato Giulio Board Member: Berlendis Lorenzo Board Member: Boccucci Roberto Board Member: Monti Maria Board Member: Passeri Luigi Board Member: Passeri Marino Board Member: Rocchi Francesco Independent Board Member: Paolo De Angelis Independent Board Member: Gino Bellotto STATUTORY AUDITORS Chairman: Perrotta Francesco Standing Statutory Auditor: Vella Cosimo Standing Statutory Auditor: Bertoli Paolo Substitute Statutory Auditor: Barlassina Umberto Substitute Statutory Auditor: Cantamaglia Paolo AUDITING FIRM Mazars S.p.A. Personnel September Managers Officers Employees Collaboration and Traineers (2) Total MANAGEMENT TEAM WITH PROVEN EXPERTISE *Manager in charge of preparing accounting documents ex art. 154 bis TUF 8

9 Investment Opportunity Highly diversified and integrated group Leadership in a niche sector Blue-chip specialization of the portfolio products Sector-specific scoring tool High-value and core business-functional shareholders Highly qualified and skilled management Reinsurance company among the most reliable ones in the business Solid perspective profitability 9

10 Table of Contents I GROUP DESCRIPTION II TARGET MARKET AND MAIN CLIENTS III BUSINESS MODEL IV KEY FINANCIALS V OFFERING STRUCTURE VI APPENDIX 10

11 Core Business Overview Cessione del Quinto is a form of personal guaranteed consumer credit, characterized by the loan repayment through the transfer of a fifth of the salary (CQS) or of the net monthly pension (CQP) The guaranteed loan must be necessarily associated, as the present legislation states, with an insurance policy for the mortality risk and the employment risk (the latter only in case of employed workers). Net Insurance Group s core business is the offering to moneylender institutions, of insurance covers related to mortality risk or employment risk (resignation, layoff, early retirement) CREDIT PROTECTION METHODS EMPLOYED WORKERS Employer takes over the obligation of loan repayment Pension deduction in case of retirement placing TFR excussion in case of interruption of the business relation Utilization of the insurance coverage in case of dissolution due to mortality (compensation equal to the residual debt) or employment risk (compensation equal to the residual debt followed by extrajudicial debt collection procedures) RETIREE Loan repayment is up to the Compulsory Social Security Institution Utilisation of the insurance coverage in case of death COMPETITIVE ADVANTAGE THE OFEERING OF INSURANCE COVERAGES RELATED TO THIS TYPES OF GUARANTEED LOANS REQUIRES AN EXPERTISE-BASED TYPE OF COMPETENCES: AN EXACT RISK ESTIMATE ONLY COMES WITH KNOW HOW GUARANTEED POSITIONING THANKS TO THE HIGH-LEVEL KNOW HOW 11

12 Target Market NET INSURANCE OFFERING TARGET IS PERMANENT EMPLOYEES WHOSE NUMBER REMAINED STABLE DURING THE OBSERVATION PERIOD - Istat data about the workforce from 2008 and 2012 (Values in thousands of units) - Examination Year (N) Unemployment Rate (*) variation previous year 8% 21% -2% 14% 21% Employees 23,349 22,922 22,871 22,953 22,805 (a) variation previous year 24 (427) (51) 82 (148) Permanent Employees 15,280 15,108 14,927 15,016 14,859 (b) variation previous year 213 (172) (181) 89 (157) (c) Employees drawing to a close 2,255 2,174 2,182 2,368 2,367 variation previous year (27) (81) (1) Freelancers 5,814 5,640 5,762 5,569 5,579 variation previous year (162) (174) 122 (193) 10 People looking for a job 1,775 2,143 2,102 2,428 2,988 variation previous year (41) Total Workforce 25,124 25,065 24,973 25,381 25,793 variation previous year 143 (59) (92) % Weight Public Employees Italy (**) 18.2% 18.2% 18.2% 18.2% 18.2% (d) % Weight Private Employees Italy (**) 81.8% 81.8% 81.8% 81.8% 81.8% (e) (*) Source: Istat (**) Source: Istat La struttura del costo del lavoro in Italia, Statistiche/Report THE INCREASE OF THE UNEMPLOYMENT RATE IS MAINLY DUE TO THE DIFFICULTY OF ENTRY IN THE LABOUR MARKET OF PEOPLE LOOKING FOR A JOB RATHER THAN TO THE JOB LOSS OF PERMANENT EMPLOYEES, WHICH ARE THE TARGET MARKET FOR NET GROUP 12

13 Target Market Salary (Pension) Guaranteed Loans Perspectives THE MACROECONOMIC AND SPECIFIC SITUATION SHOULD IMPLY AN INCREASE IN THE DEMAND OF THE CORE BUSINESS ACTIVITIES OF THE GROUP MACROECONOMIC DRIVERS The expected growth of Italian Gross Domestic Product and of the national consumption should contribute to an improvement in the consumers confidence and increase the willingness to get into debts, in particular in the consumer credit segment Among the consumer credit forms, the salary guaranteed loan stands out because it allows to satisfy the financial need of a wide user base (employees and retirees) SECTOR SPECIFIC DRIVERS Re-established focus of the big banking groups in the guaranteed loans segment: due to the ousting from the market of financial intermediates (not banks) which operated with procedures that were not in line with the surveillance institutions, there has been a clear selection and qualification of the lending institutions range. Now in the market there are mainly important bank groups and consumer credit companies, which could concentrate on the salary (pension) guaranteed loans activity, because it could represent a fullyguaranteed type of use Italian GDP Evolution Italian Consumption Evolution Possible legislation interventions aimed at making the guaranteed loans market more interesting for the banks (less absorption for secured lendings) (2,4%) (1,7%) 1,0% 1,7% 1,8% 1,9% (3,9%) (1,9%) 0,3% 1,0% 1,2% 1,4% In 2013, the securitization operations concerning portfolios of salary (pension) guaranteed credit loans show a surge in the demand of secured credits. This fact, in a situation where the other financing forms are experiencing a contraction, should reasonably mean a growing trend for Cessione del Quinto by the financial institutions Source: Governo Italiano - Nota di Aggiornamento al DEF 2012 POSITIVE EXPECTATIONS FOR THE SALARY (PENSION) GUARANTEED LOANS MARKET 13

14 Target Market Consumer Finance and Salary Guaranteed Loans perspectives The Assofin survey for the first semester 2013 show that, unlike to other forms of consumer finance, the salary (pension) guaranteed loans grew by 3.8% - - Market evolution of Consumer Credit and Guaranteed Loans (in terms of financed amounts) YoY (%) 5,7% (10,1%) (10,4%) (1,1%) (4,6%) (12,4%) (0,5%) (8,4%) 3,4% (6,8%) (9,7%) 3,8% (8,4%) The positive rebounce of the salary (pension) guaranteed loan distribution in the first semester of 2013 connotes a growth of the related insurance market for the rest of the year Cessione del Quinto is the only consumer credit market segment which registers a growth in the first semester of 2013 (13,8%) (14,0%) H 2013 Consumer Credit (Other) Salary and Pension Guaranteed Loans Personal Loans Valori in / H 2013 Consumer Credit (other) 55,342 49,773 47,475 47,231 44,007 21,293 YoY - (10.1%) (4.6%) (0.5%) (6.8%) (8.4%) CQS & CQP 5,315 5,617 4,920 4,507 4,067 2,190 YoY - 5.7% (12.4%) (8.4%) (9.7%) 3.8% Personal Loans 21,718 19,452 19,232 19,883 17,131 8,264 YoY - (10.4%) (1.1%) 3.4% (13.8%) (14.0%) CQS & CQP/(CQS & CQP+Personal Loans) 19.7% 22.4% 20.4% 18.5% 19.2% 20.9% THE REFERENCE MARKET, AFTER A DOWNSIZING PERIOD, IS STARTING TO GROW AGAIN Source: Assofin,

15 Target Market Competitive Positioning From 2008 Net Insurance Group is leader in Italy in the insurance segment of Cessione del Quinto #1 The market share is durable over 30% In the first semester of 2013, following a three-year decrease period, the number of loans is growing (+2.4% compared with the first semester of 2012), as well as the number of insurance agreements that the Group contracted (+9.6% compared with the first semester of 2012) Shown below are the data related to the Group s positioning relative to Cessione del Quinto segment in terms of number of signed contracts by Net Insurance Group in comparison with the total amount of financed disbursements /06/2013 # Market # Contratti Contracts Mercato 317, , , , , YoY 43.1% 43,1% 4.0% 4,0% -8,5% -8.5% -11.7% -11,7% -10,7% -10.7% 2.4% 2,4%(*) # Net Contratti insurance Net Contracts Insurance 92, , , , ,497 39, YoY -1.7% -1,7% 37.0% 37,0% -16,5% -16.5% -20.1% -20,1% -10,2% -10.2% 9.6% 9,6%(*) Source: Osservatorio Assofin sul Credito al Consumo MARKET SHARE Net Insurance 71,0% 29,0% 61,9% 38,1% 65,2% 34,8% 68,5% 31,5% 68,3% 31,7% 69,3% 30,7% STRONG LEADERSHIP IN THE INSURANCE SEGMENT FOR THE SALARY AND PENSION GUARANTEED LOANS 15

16 Market Share in the Salary Guaranteed Loans business Main Clients Channels and Clients THE MAIN CLIENTS OF NET INSURANCE GROUP ARE BANKING GROUPS THAT HAVE A LEADERSHIP POSITION IN THE SALARY (PENSION) GUARANTEED LOANS BUSINESS TOP 5 CLIENTS NET INSURANCE 2008 TOP 5 CLIENTS NET INSURANCE 1H 2013 Pos n.a. n.a. Mkt Share 14,1% 5.7% 0.3% n.a. The cumulated Market Share of the top 5 clients of the Group has a CAGR (08-12) equal to almost 10% 20% 32% % Portfolio Net n.a. 7% % 12% 11% 11% 8% 49% Pos Mkt Share 6.7% 9.0% 4.8% 2.2% Var.Disburse 1H 2012 vs. 1H % 81% -24% 34% 5% Incidence of Net Insurance portfolio Net Insurance s production coming from banks or from the product companies of big groups increased from 58% in 2008 to 97% in the first half of 2013, mainly because of the effect of the exclusion from the market of several financial institutions that were not in line with the authority directives. This change is even better solvency guarantee for Net Insurance Group. It has been recorded that 49% of the contracted agreements at 31 August 2013 is generated from the top 5 clients of the Group. Each of them has a weight not over 12%. GREAT PERSPECTIVES FOR EXPANDING IN THE REFERENCE MARKET 16

17 Main Clients Core business expansion perspectives FURTHER ELEMENTS SUPPORTING THE MARKET SHARE GROWTH Expansion of the 2013 clients portfolio: since 2008 Net Insurance Group has constantly enlarged its clients portfolio, making Cessione del Quinto market leaders faithful customers. This trend continued in recent years and got even stronger in 2013 with the entry of Intesa Sanpaolo/NEOS (number 1 operator in the first semester of 2013 in terms of market share), BNL (ranked fifth in terms of market share in the first semester of 2013), and Prestinuova/Banca Popolare di Vicenza (ranked 14 ). Those are leader groups in the business with high growth rates: their average growth in the first half of 2013 is up 36.1% in comparison with the same period of Growth of the long-term clients: the main clients of the Group are expanding their activities in Cessione del Quinto market, generating new resources for the Group s companies. In the first half of 2013 Net Insurance s top 5 clients boosted the distribution of assisted loans by 7.3% in comparison with AXA Agreement: in September 2013, the insurance group AXA, European leader in the industry, with 2012 overall premiums equal to 90 billions, subscribed an industrial agreement with Net Insurance Group that states the entry of AXA in Net Insurance through the acquisition of an equity stake from the charter members, and the subscription of reinsurance treaty. This agreement consists in the right for AXA to reinsure a significant stake in the Group s portfolio related to the salary (pension) guaranteed loans. This operation will have important implications concerning the offering of the Group in its core business: this will allow to increase the maximum coverage for each client there where the Net Insurance Group will step forward in partnership with AXA. GREAT GROWTH PERSPECTIVES IN THE TARGET MARKET 17

18 Main Clients Current Trading Core Business Premiums recorded in the first 8 months of 2013 and 2012 (Values in /000) 12.8% New Clients Intesa Sanpaolo/NEOS BNL Prestinuova - BPV +8,58% 6, % Others already in portfolio Top 5 clients 45.5% 46,043 43, August August 2013 THE GROWTH OF THE PREMIUMS IN 2013 IS STRONGER THAN THE EXPANSION OF THE SALARY (PENSION) GUARANTEED LOANS MARKET 18

19 Main Clients MAIN CLIENTS Agos Ducato S.p.A. Crédit Agricole Group Banca di Credito Popolare Banca di Sassari S.p.A. Bper Group Banca Popolare Pugliese Bieffe5 S.p.A. Findomestic Group BNL FINANCE Bnp Paribas Group Carichieti S.p.A. Cassa di Risp. Di Chieti Group CASSA DEPOSITI E PRESTITI S.C.R.L. Claris Cinque S.p.A. - Veneto Banca Group CONAFI Gruppo Banca Etruria Consum.it S.p.A. Montepaschi Group Credem Banca S.p.A. Creditis S.p.A. Banca Carige Group Dynamica Retail S.p.A. Fides S.p.A. Banco Desio Group Futuro S.p.A. e Compass S.p.A. Mediobanca Group INTESA SANPAOLO PERSONAL FINANCE - Intesa Sanpaolo Group Ibl Banca S.p.A. Italcredi S.p.A. Banca Popolare di Ravenna Group LOGOS FINANZIARIA Crédit Agricole Group Pitagora S.p.A. PRESTINUOVA Banca Popolare di Vicenza Group Prestitalia S.p.A. UBI Banca Group PROFAMILY Banca Popolare di Milano Group QG ITALIA RACES SIGLA TerFinance S.p.A. Unicredit S.p.A. HIGH-QUALITY CUSTOMER BASE 19

20 Table of Contents I GROUP DESCRIPTION II TARGET MARKET AND MAIN CLIENTS III BUSINESS MODEL IV KEY FINANCIALS V OFFERING STRUCTURE VI APPENDIX 20

21 Core Business Model CORE BUSINESS Credit Insurance Life Insurance Employment risk of the borrower Mortality risk of the borrower Personal loans guaranteed by the salary (CQS) and by the pension (CQP) Clients: banks and consumer credit companies 21

22 Business Model Core Business Risk Management (1/3) PORTFOLIO COMPOSITION PUBLIC EMPLOYEES MAJORITY Portfolio Breakdown by Borrowers Kind The stability of the evolution of the claims is due to the composition of the financed subjects whose insurance coverages are referred to. This group is made by the 69% by public employees. Concerning the private employees, it is notable that the selected firms by the company, picked after a tight selection process, represent, on a national scale, almost 15% of the ones with more than 15 workers. 69% 31% Private Public GROUP S POLICY RELATED TO EMPLOYEES WORKING IN PRIVATE FIRMS The insurance coverage is released only in case of permanent work contract; The risk undertaking depends on the outcome of an internal integrated scoring system, applied to the employer enterprise; The risk undertaking is limited to firms with more than 15 employees The insurance coverage is not provided for loans to employees of firms that, due to business sector or cyclicality, are physiologically characterized by a consistent employee turnover. THE GROUPS POLICY IS ORIENTED TO AN OPTIMAL RISK MANAGEMENT 22

23 Business Model Net Insurance and Unemployment in Italy (2/3) As shown in the market overview section, Net Insurance core business offering is addressed to permanent employees whose number remained substantially stable and unrelated to unemployment rate. In order to propose an objective valuation of the acquired risks within the Employment Risk business, it has been developed a model for quantifying the claims that Net Insurance has in the portfolio, in relation to the recorded unemployment in Italy in the last five years. Moreover, it has to be pointed out that, for the criteria that Net Insurance adopts, the reference typology of worker among the employees is represented by permanent employees. The model assumes the quantification of the percentage weight of the risk-exposed subjects of Net Insurance S.p.A., in relation to the type of administration (public or private institutions) where the employee works. Istat data (year 2008) reveal that public employees represent almost 18.2% of the total employees. If we apply this distribution hypothesis (d) and (e) to the number of permanent employees in relation with the total number of employees we can determine the weight of each worker category compared to the total amount of individuals with a job in Italy. - Valuation Model from 2008 to 2012 (Values in thousands of units) - Examination Year (N) % Estimation Weight of Public Permanent Employees over the total amount of employees 11.76% 11.91% 12.00% 11.88% 11.91% 11.86% (f)=(b)*(d)/(a) % Estimation Weight of Private Permanent Employees over the total amount of employees 52.84% 53.53% 53.91% 53.39% 53.51% 53.30% (g)=(b)*(e)/(a) % Estimation Weight of Public and Private Permanent Employees over the total amount of employees 64.60% 65.44% 65.91% 65.27% 65.42% 65.16% % Weight Net Public Employees 61.49% 60.50% 60.39% 60.30% 60.48% 60.29% (h) % Weight Net Private Employees 38.51% 39.50% 39.61% 39.70% 39.52% 39.71% (i) % Estimation Weight Exposed Net Public Employees over the total amount of employees 7.23% 7.21% 7.24% 7.16% 7.20% 7.15% (j)=(h)*(f) % Estimation Weight Exposed Net Private Employees over the total amount of employees 20.35% 21.15% 21.35% 21.19% 21.15% 21.16% (k)= (i)*(g) % Estimation Weight Exposed Net Public and Private Employees over the total amount of employees 27.58% 28.35% 28.60% 28.36% 28.35% 28.31% (l)=(j)+(k) Istat Outflows Permanent Employees ( ) ( ) ( ) (m)=(c) % Decrease in occupation Istat Permanent Employees over the total amount of employees N.A. N.A. 0.74% 0.79% N.A. 0.68% (n)=(m)/((a) ad N-1) % Decrease in occupation Net Permanent Employees over the total amount of employees N.A. N.A. 0.21% 0.23% N.A. 0.19% (o)=(n)*((l) a N-1) Exposed Net year N (p) Exposed Net year N (q) Claims Frequency Determination recorded in year N-1 Recorded Outflows year N-1 due to Layoff (payed and reserved) (r) Claims Frequency Determination recorded in year N % 0.82% 0.85% 1.01% 0.95% 0.85% (s)= (r)/(p) Number of expected Notifications (t)=(s)*(q) Major Expected Notifications estimated on an Istat basis N.A. N.A N.A (u)= (q)*(o) Number of Expected Notifications with an increase Istat year N (v)=(u)+(t) Recorded Outflows in year N due to Layoff (w) Variation of the number of expected claims over Istat increase (0.200) (1.326) (0.510) (1.276) (x)=(w)-(v) % Variation compared to the number of expected claims over Istat increase 25% 4% -5% -23% -10% -21% The analysis confirms the substantial stability of claims trend, which is imputable to a portfolio mix in which the prevalence risk undertaking is connected to public employees. It is fair to affirm that the increase of the unemployment rate does not automatically correspond to an increase of occupation loss of the permanent employees (years 2008 and 2011). This confirms the absence of correlation between the unemployment rate and the total amount of claims in the Company s portfolio. 23

24 Business Model Core Business Risk Management (3/3) Probability of elimination for Mortality Risk Probability of elimination for Employment Risk Years from subscription The Figure shows the probability trend of elimination from the portfolio (valued on the historic data of the Group) for «Mortality Risk». We can observe that the claims are mainly concentrated between the second and the fifth year. The Figure below shows the trend of every single contractual generation taken into consideration. In order to restrain the borrowers moral hazard-related risks it is considered a medical examination relation for Years from subscription The Figure shows the probability trend of elimination from the portfolio (valued on the historic data of the Group) for «Employment Risk». We can observe that the claims are mainly concentrated between the second and the fourth year. The Figure below shows the trend of every single contractual generation taken into consideration. above-average grants. Mortality Risk trend for Single Generation Employment Risk trend for Single Generation Years from subscription Years from subscription 2010 THE DECREASE IN CLAIMS LEADS TO ASSUME AN INCREASE IN PROFITABILITY From 2010 the implicit claims is more restrained as a result of a most accurate risk assessment policy that should contribute to the decrease of the loss ratio (claim on premium), which is already positively influenced by a contraction of the principal amount detectable on the latest generations. This is amenable to the increase of the Annual Percentage Rate on the granted loans 24

25 Business Model Product Lines apart from Core Business OTHER BUSINESS LINES Life Policies (term life insurance) Accident protection Agricultural Risk Policies Fire and Theft Policies (for residences) Multi-assurance policies (for families) Policies for the protection of the landlord of a residential building CUSTOMERS: CONSUMERS AND FAMILIES 25

26 Business Model Distribution Network NET INSURANCE NET INSURANCE LIFE /06/ /06/ Agents; 19 Agents; 7 Agents; 16 Agents; 18 Brokers; 29 Brokers; 15 Brokers; 25 Brokers; 20 Mediators sec. D of RUI* 21 Mediators sec. D of RUI 25 Mediators sec. D of RUI 26 Mediators sec. D of RUI Agenti Agents Broker Brokers Intermediari Mediators sez.d Sec. RUI RUI Agenti Broker Intermediar /06/ /06/2013 During the first months of 2013, the Group substantially expanded its distribution network, coherently with the strategic goal to diversify the offering and to increase the direct distribution REINFORCED DISTRIBUTION NETWORK FOR THE OFFERING OF THE OTHERS PRODUCTS (NO SALARY GUARANTEED LOANS) *Italian Single Register of Insurance Brokers 26

27 Business Model Production of Reinsurance Companies in 2013 COMPANIES DESCRIPTION OF THE CONTRACTED DEALS RATING Non-life: reinsurance treaty in Quota Share on risk attaching basis (implied renewal) for the credit line - CQS, with a cession share equal to 15% of premiums. Life: reinsurance treaty in Quota Share on risk attaching basis (implied renewal), with a cession share equal to 17% of premiums for CQS and 15% of premiums for CQP. S&P: Fitch: AM Best: AA- A+ A+ Non-life: reinsurance treaty in Quota Share on risk attaching basis (implied renewal) for the credit line - CQS, with a cession share equal to 15% of premiums. Life: reinsurance treaty in Quota Share on risk attaching basis (implied renewal), with a cession share equal to 15% of premiums for both CQS and CQP. S&P: Moody s: AM Best: AA+ Aa1 A++ Non-life: reinsurance treaty in Quota Share on risk attaching basis (implied renewal) for the credit line - CQS, with a cession share equal to 10% of premiums. Life: reinsurance treaty in Quota Share on risk attaching basis (implied renewal), with a cession share equal to 15% of premiums for both CQS and CQP. S&P: Moody s: AM Best: Fitch: AA- Aa3 A+ AA- Non-life: reinsurance treaty for risks different from CQS. Life: reinsurance treaty for risks different from both CQS and CQP. S&P: Moody s: AM Best: AA- A1 A+ Non-life: one-year reinsurance treaty in Quota Share on risk attaching basis, with a cession share equal to 3% of premiums for both CQS and CQP Life: one-year reinsurance treaty in Quota Share on risk attaching basis, with a cession share equal to 3% of premiums for both CQS and CQP. S&P: Fitch: Mood s: A+ AA- Aa3 27

28 Business Model SWOT Analysis Strengths STABILITY OF THE MARKET SHARE PRODUCT INNOVATION VERTICAL INTEGRATION STRONG KNOW HOW IN THE CORE BUSINESS INNOVATIVE SCORING TOOLS FOR RISK-SPECIFIC MANAGEMENT OPERATING SPEED IN THE CLAIMS SETTLEMENT QUALITY OF THE SERVICE SPECIALISATION Opportunities Weaknesses LIMITED PRODCUT LINE RETAIL DISTRIBUTION NOT COMPLETELY STRUCTURED Threaths GROWTH OF THE REFERENCE MARKET DEVELOPMENT OF THE BANKASSURANCE CHANNEL DEVELOPMENT OF INNOVATIVE DISTRIBUTION CHANNELS (WEB) ADVERSE LEGISLATION CHANGES ENTRY OF FOREIGN PLAYERS IN THE CQ MARKET NICHE THE POSITIVE DRIVERS SUSTAIN THE GROWTH PLAN. THE MAIN EXTERNAL THREATS DO NOT BRING THE BUSINESS MODEL INTO QUESTION 28

29 Business Model Product Lines OUR FUTURE VISION Our approach to maximize value 1 BEING INNOVATION-DRIVEN 2 BEING SENSITIVE TO PARTNERSHIPS 3 HAVING PROJECT FLEXIBILITY 4 PAYING ATTENTION TO THE QUALITY OF THE SERVICE 5 BEING ORIENTED TO THE SOCIAL SPHERE MISSION:CREATING VALUE FOR THE SHAREHOLDERS 29

30 Business Model Strategic Guidelines ACTION PLAN STRATEGIC PRIORITIES KEY ACTIONS EXECUTION PLANS KEEP THE LEADERSHIP IN THE SALARY (PENSION) GUARANTEED LOANS MARKET NICHE strengthen the relationship with the operating partners Reaching agreements with new partners improve the technical profitability of the product DIVERISFY IN ORDER TO DEVELOP A MULTICHANNEL APPROACH upgrade of the agents and brokers network development of the distribution network (through agreements with regional banking groups) and creation of further partnerships with bank networks development of the direct offering (internet and telephone) development of the direct relationships with users communities DIVERISFY INTO NEW PRODUCT NICHES Take advantage of the know how and of the innovative capabilities in order to expand in new niches not overseen by competitors (pet insurance, policies on rent contracts, etc.) STRENGTHEN THE LEADERSHIP POSITION AND DIVERSIFY CHANNELS AND PRODUCTS IN ORDER TO KEEP HASTENING 30

31 Table of Contents I GROUP DESCRIPTION II TARGET MARKET AND MAIN CLIENTS III BUSINESS MODEL IV KEY FINANCIALS V OFFERING STRUCTURE VI APPENDIX 31

32 Key Financials Income Statement IFRS CONSOLIDATED INCOME STATEMENT Riclassified Income Statement ( /000) FY 2010 FY 2011 FY 2012 Competency Gross Premiums 117, ,836 86,946 Net Premiums 67,344 53,293 48,417 Gross Claims Obligations and var. of the reserves 111,691 96,594 91,379 Claims-related Net Obligations 65,639 52,800 50,222 Net Revenues from Investments 5,634 3,317 7,548 Operating Expenses 16,866 14,074 11,047 Perceived Commissions 15,209 14,282 4,971 Other Revenues Other Costs 1, Income before Taxes 4,132 3,391 (1,013) Taxes 1,602 1,340 (282) Net Income 2,530 2,051 (731) The decrease of the gross written premiums of 13.8% is due to the lower number of financial intermediaries in the sector and to the strong reduction of premium amount in life insurance in retires segment; the costs related to claims during 2011 and 2012 are affected by the consequences of an increase in the production registered during 2008 and 2009 (the year with the highest claims are the second and the fourth after the policy subscription); the reduction of reinsurers commission of 65.2% is due to new contracts terms condition which recognize the negative macro economic conditions; the operating expenses decrease during 2012 cause of less negative commission thanks to new agreements with financial institutions; the financial income is 7,549 Mln in 2012, showed a high increase due to recovery of financial market during the year; the net taxes show a positive outcome of 282,000 due to the effect of early paid taxes accrued by Holding Net Insurance; the net lose of 2012 is affected by the IAS/IFRS adjustment, in particular the valuation of securitites classified as available for sale (the financial result expressed according to ITA GAAP principles shows a positive result) 32

33 Key Financials Current Trading & Adjustments: 1H 2013 INCOME STATEMENT IFRS 1 HALF 2013 Reclassified Income Statement ( /000) 1H H H 2013 Adjusted Competency Gross Premiums 43,535 40,171 44,259 Net Premiums 23,794 20,481 22,577 Gross Claims Obligations and var. of the reserves 42,940 42,844 42,415 Claims-related Net Obligations 23,214 22,763 22,510 Net Revenues from Investments 3,617 2,734 2,734 Operating Expenses 6,199 5,940 5,940 Perceived Commissions 2,550 5,106 5,106 Other Revenues Other Costs Income before Taxes 41 (729) 1,620 Taxes 34 (101) 531 Net Income 7 (628) 1,089 THE FIRST SEMESTER FIGURES HAVE BEEN ADJUSTED TO NET THE THE FIRST SEMESTER FIGURES HAVE BEEN ADJUSTED TO NET THE EFFECTS OF THE RECENT LAW (L. 221/2012) EFFECTS OF THE RECENT LAW N. 221/2012 Aim of the Adjustment: To estimate the impact on the Technical Account at 30 June 2013 occurring at annulment for lapse risk without premium payment to insurer supposing the same frequency of annulment for lapse risk observed during the first half of Evidences: This valuation lead to a reduction of the losses reported on the Technical Account on the 30 th June The amount of the new technical provisions (either gross or net to reinsurance) was allocated in the Technical Account; the reduction of the technical provisions on the 30 th June 2013 was reflected on the Technical Account for a gross tax benefit of 2,350. During the first half of 2013, although the gross written premiums increase of about 25% (see next slide) compared with the first semester 2012 thanks to a huge increase of gross written premium of credit line (+ 29% from 21,6 Mln to 16 Mln) and other non-life business (from 99k to 7.8 Mln) partially offset by a contraction of gross written premiums of life business (-12% from 21.6 Mln to 19 Mln), it is showed a decrease of premium earned and net premium, due to a greater holding period of risks related to policies subscribed in the previous generation in the portfolio due to a law change. The net premium transfers plan 2013 to reinsures set a greater divestiture compared to the previous year; Claims paid during the first semester 2013 are affected by the increase of the portfolio risk; The commissions to reinsurers increase during the first semester 2013 thanks to more favorable agreements with life business reinsures and thanks to the increase of the volume reinsured in other non-life business (agricultural risk) 33

34 Key Financials Premiums PREMIUMS EVOLUTION Since, the amount of gross premiums showed a constant growth in non-life insurance, Net Insurance s only specialization business until 2007, reaching an amount of 97 Mln. From 2008, because of the entry into force of the Reg. Isvap n. 29/2009, Net Insurance, through Net Insurance Life, has extended its activity to life insurances, showing, since the very following year, a amount of premiums bigger than the one in non-life insurance. In 2012 the 15.7% decrease of the gross premiums is ascribable to the reduction in the number of financial institutions operating in the industry. Moreover, this decrease is due to the reduction of the life insurance premium amount in the retirees sector. 160 /Mln Casualty Non Life Premiums Life Life Premiums 34

35 Key Financials Premium in Non-life & Life Business NON-LIFE BUSINESS PREMIUM FOR NON-LIFE NET INSURANCE PREMIUM FOR NON-LIFE 2012 MARKET /000 Source: Circolare IVASS April , % 28,392 23, % +91.7% 12,397 Net Insurance grows at a higher rate than the market in non-life business H H 2013 LIFE BUSINESS PREMIUM FOR LIFE NET INSURANCE /000 53, % PREMIUM FOR LIFE 2012 MARKET -9.6% Source: Circolare IVASS April , % 21,605 19, H H 2013 The Group has decreased on purpose its offerings on risks coverage related to the retirees because of the application of policies aimed at reducing premiums rates announced by competitors 35

36 Key Financials Breakdown technical account Non Life Insurance 1H 2013 Adj* 1H 2013 FY 2012 FY 2011 FY 2010 Premium Earned 1H 2013 Gross Premium Written 23,771 23,771 28,392 26,917 33,521 Variation Premium Reserves 1,476 (2,612) 18,707 19,925 19,499 Premium Earned 25,247 21,159 47,099 46,842 53,020 Claims (21,847) (22,276) (49,036) (47,886) (57,492) Commissions and other operational expenses (4,354) (4,354) (6,314) (5,666) (6,518) Reinsurance Results 548 2,715 2,743 5,096 6,459 Income From Financial Operations ,577 1,181 4,371 Technical Results 262 (2,088) (931) (433) (160) Life Insurance 1H 2013 Adj* 1H 2013 FY 2012 FY 2011 FY 2010 Gross Premium Written (*) 19,011 19,011 39,846 53,994 64,686 Variation Premium Reserves (2,764) (2,764) (9,226) (26,694) (39,637) Premium Earned 16,247 16,247 30,620 27,300 25,049 Claims (17,804) (17,804) (33,116) (22,015) (14,563) Commissions and other operational expenses (1,586) (1,586) (4,733) (8,408) (10,348) Reinsurance Results 2,782 2,782 4,855 5,437 4,440 Income From Financial Operations 1,513 1,513 5, (141) 47% 46% 53% Premium Earned FY % Technical Results 1,152 1,152 2,826 3,041 4,437 Premium Earned 44,258 40,170 86, , ,706 Premium Earned FY 2011 Premium Earned FY 2011 FROM 2011 TO THE FIRST HALF OF 2013, THE RELATIVE WEIGHT OF LIFE GROSS WRITTEN PREMIUMS ON THE TOTAL IS CONSIDERABLY DECREASED IN FAVOR OF NON-LIFE (54% in 2011 Vs 47% in the first half of 2013) 54% 54% 46% 46% Non Life Insurance Life Insurance (*) In the life sector, according to IAS/IFRS rules, gross written premiums are expressed before the mathematic reserve variation. 36

37 Key Financials Balance Sheet IFRS CONSOLIDATED BALANCE SHEET / Variation % Variation Intangible Assets 640 5,743 5, % Tangible Assets ,818 10, % Investments 188, ,362 (1,157) -0.6% Other Assets 71,646 76,175 4, % Reinsurance Technical Provision 151, ,094 (5,370) -3.5% Gross Technical Provision (338,620) (332,393) 6, % Financial Liabilities % Other Liabilities 43,280 47,567 4, % Net Assets 30,645 46,232 15, % % 2011 % 2012 Participations 7,654 2, % 1.2% Loans 19,210 12, % 6.4% AFS - Mutual Funds 18,755 18, % 9.8% AFS - Bonds 126, , % 70.9% AFS - Shares 16,279 22, % 11.8% Total Investments 188, , % 100.0% The investment activity is based on an investment policy, previously approved by the Board of Directors and annually reassessed. The Group is also endowed with a Risk Management section, managed by an external consultant, Kriel, to periodically evaluate financial risks to optimize their management intangible assets, increased by 5,103,000, are consistently affected by the reclassification of the Dynamica Retail S.p.A. participation in the item Goodwill after the imputation of the sole value of the equity in the item Investments ; the tangible assets increase ( 10,542 thousands) is mainly due to the purchase, at the end of November 2012, of the property destined to be the new Group s headquarters by the holding, Net Insurance, for 35% and by the subsidiary, Net Insurance Life, for 65%. The headquarter is situated in Rome, in Via Guattani n. 4/bis, and its value includes acquisition expenses summed up to the total acquisition cost; financial investments, 187, , in 2012, decreased by 0.6% compared to the previous year due to: the decrease of the participations after Dynamica Retail S.p.A. s equity evaluation; the increase of the available-for-sale assets mainly attributable to the positive trend of the financial markets on the portfolio stocks value. 37

38 Key Financials Financial Investment Composition Financial Investment Composition 12% 5% 31% Corporate Bonds Funds and SICAV NET INSURANCE GROUP PORTFOLIO IS WELL BALANCED AND HAS HIGHER RETURNS THAN ITS BENCHMARK Shares 52% 6% 16% 4% 14% 16,00% 12,00% 16% 2% 12% 0% 10% 8% 8% 6% 6% 4% 4% 2% 2% 0% 0% -2% -2% 14,00% 12,00% 10,00% 8,00% 6,00% 4,00% 2,00% 0,00% FY FY 2011 FY H ,00% Rendimento Group Corporate Titoli Corporate Share Performance Gruppo Net Group Corporate Bond Performance Rendimento IBXXELAT Indice Index IBXXELAT IBXXELAT Index (*) Performance 14% 10,00% 12% 8,00% 10% 8% 6,00% 6% 4,00% 4% 2,00% 2% 0% 0,00% -2% 2010 FY 2010 FY FY H Rendimento Titoli di Stato Gruppo Net Rendimento Btp 5 anni Group Government Bond Performance 5 Years Italian Government Performance WINNING INVESTMENT STRATEGY (*) IBXXELAT Index: Markit iboxx EUR Liquid Corporates 38

39 Key Financials Balance Sheet IFRS CONSOLIDATED BALANCE SHEET Net technical provisions decrease of 857,000, from 187,156,000 to 186,299,000. In detail technical amount represented by gross technical provisions decrease from 338,156,000 to 332,393,000, instead the technical provisions all-dependig from reinsures mortality of 3.5% at 146,094,000 The increase of 6.3% of the other items of Uses side is due to liquidity growth because of the choice to keep greater cash availability to face market volatility The solvency ratio (the ratio between available margin and the margin to be constituted) of the Group shows an increment of about 25% in 2012 as showed in the following tables Net Insurance Group Amount of the correct required solvency margin 18,091 19,805 Total amount of the elements of the required solvency margin 28,903 39,474 Surplus (Deficit) 10,812 19,669 Solvency Ratio The Group Solvency Ratio is considerably higher than the market average (Source: Ania) Solvency Ratio Net 4.33 Non Life Insurance Market

40 Key Financials Equity EQUITY Total Equity ( /000) Variation Var. % Equity 5,842 6, % Capital Reserves 7,662 13,425 5, % Income Reserves and Other Reserves 25,424 27,475 2, % Income (Loss) on Financial Activities (10,334) (82) 10, % Income (Loss) 2,051 (731) (2,782) (135.5%) 30,645 46,232 15, % The Group equity has been considerably reinforced during 2012 for two reasons: On the 26 th January 2012 the holding s extraordinary shareholders meeting approved a capital increase of 6,066,060 (303,000 shares of nominal value of 1.00 with an excess price of 19.02) integrally subscribed and paid by the new shareholder Veneto Banca S.c.p.A. during the first quarter 2013 The item gains and loss on AFS activities, which includes the effects of the valuation at fair value securities classified in the category available for sale, increased more of 10 million thanks to market value improvement of the securities available on the Group portfolio 40

41 Key Financials INCOME STATEMENT DATA Consolidated Total Revenues /000) Consolidated Income Statement ( /000) ,521 The lower premium amount 60, , % negatively affected total revenues but this effect was considerably softened by an increase in income from investments 28, , Net income including recoveries, registered as retained earnings or in other reserves (4,684) /06/2012 1H /06/2013 1H BALANCE SHEET DATA Consolidated Total Equity ( /000) Solvibility Margin 2012 ( /000) , ,474 The total equity growth is for more than 10 millions due to the positive effect on the available , % for-sale stocks on financial markets and for 6 millions to 19, the capital increase occurred in Margine da costituire Margin to constitute Tot. Elementi costituitivi Total amount of constitutive elements 41

42 Key Financials RATIOS Loss Ratio Combined Ratio Claims Incurred 112.2% 112,2% 118,4% 118.4% Loss Ratio + Expense Ratio Earned Premiums 104,1% 104.1% 116,5% 116.5% H H 2013 Rendimento Impieghi Expense Ratio 9,44% 9.44% 14.3% 14,3% Net Commission + Operational Costs High performance testify to Earned Premiums good capacity to select investment 2,13% 2.13% ** 4,3% 4.3% ** It includes pending capital gain H

43 Table of Contents I GROUP DESCRIPTION II TARGET MARKET AND MAIN CLIENTS III BUSINESS MODEL IV KEY FINANCIALS V OFFERING STRUCTURE VI APPENDIX 43

44 IPO Structure OFFERING STRUCTURE Listing Market AIM Italia /MAC Offering Structure 100% AuCap 1 Bonus Share every 10 if owed for 18 months Offering Structure About 15 million capital Increase Lock up From 24 to 36 month for the current shareholders (related to the profile of each shareholder) Team Finnat Bank: Global Coordinator and Bookrunner EnVent: Nominated Adviser Finnat Bank: Specialist Methorios Capital: Financial Advisor Timing Pre-marketing expected during October 2013 Bookbuilding expected at the end of November 2013 Beginning of negotiation expected in the first days of December

45 IPO Structure TIMETABLE STRUCTURE 4 th November2013 Start Roadshow e Bookbuilding 22 th November 2013 Closing Bookbuilding Within the 26 th November 2013 Pricing and Allotment 2 nd December2013 Admission to trading 4 th December 2013 Settlement and Start Trading on AIM Italia/MAC 45

46 Table of Contents I GROUP DESCRIPTION II TARGET MARKET AND MAIN CLIENTS III BUSINESS MODEL IV KEY FINANCIALS V OFFERING STRUCTURE VI APPENDIX 46

47 Appendix - Products: B2B Cessione del Quinto CESSIONE DEL QUINTO Net Insurance Group s core business is the business to business offering (B2B) of insurance coverage related to personal loan guaranteed by the salary (CQS) or by the pension (CQP) addressed to financial institutions. From 2009 those loans must be guaranteed by a job loss insurance and a life insurance: Non Life Insurance (Credit Line of business) Products related to job loss personal loan guaranteed by the salary (CQS); Life Insurance Products related to mortality risk - personal loan guaranteed by the salary and by the pension (CQS e CQP). If during the reimbursement period of the loan the subscriber lose his job or die, the insurance coverage is activated The job loss insurance is issued by Net Insurance S.p.A. The life insurance is issued by Net Insurance Life S.p.A. Net Insurance, once reimbursed the Bank/Financial Institution, get the right to obtain the residual loan amount from the borrower 47

48 Appendix Products: Retail / Non Life Insurance ACCIDENT AND INJURY PRODUCTS Injury Insurance PASSA SEMPRE it covers the risk of a permanent handicap, the compensation is calculated on the level of disability occurred. In the base formula insurance is also guaranteed several assistance services Injury Insurance PASSA SUBITO it covers the risk of a permanent grievous handicap, the compensation is calculated on the level of disability occurred and lesion from injuries with a pre determined compensation. The insurance could also offers the compensation of the medical expenses Injury Insurance PASSA E VAI it covers the mortality or permanent handicap risk due to car accident. If there is a permanent handicap, the compensation is calculated on the level of disability occurred. The insurance gives the possibility to cover a certain person, his family or the driver. Insurance Passa 5: 5 years pre paid injury insurance which covers against mortality and handicap risks due to injuries. The insurance is based on four different levels of pre determined compensation for mortality risk and injury risk. Insurance for agricultural risks: it covers damages to agricultural production due to events like: hail (standard coverage), freeze, frost, temperature leap, strong wind, heavy rain, sirocco wind (complementary coverage) AGRICULTURAL RISKS 48

49 Appendix Products: Retail / Other Lines of Business ANTICRISIS PRODUCTS Insurance Policy Linea Continua It offers pay protection for utilities bills in case of job loss for employees and in case of temporary inability from injury or illness for professionals Insurance Policy Linea Continua Triennale - It offers pay protection for utilities bills in case of job loss for employees and in case of temporary inability from injury or illness for the professionals. It lasts three years without implicit renewal Insurance Policy PREMI NO STRESS It offers an insurance coverage to guarantee the payment of other insurance policies premiums in case of job loss for employees (unemployment greater than 30 days) or in case of temporary inability from injury (longer than 30 days) or illness (longer than 60 days) for professionals Insurance Policy Incendio Mutui: it covers the fire risk for building if they are a collateral for a mortgage Insurance Policy Incendio Mutui Plus: it has the same features of the previous policy with an additional coverage for damages to other buildings Insurance Protezione Affitto Locatore: it offers an insurance coverage to landlords in case of rent payments delay; it is underwritten by the tenant. It requires the pre payment of the premium, related to lenght of the contract. 49

50 Appendix Products: Retail / Other Lines of Business PRODUCTS RELATED TO LOANS AND / OR MORTGAGES Insurance Policy Mutuo al Sicuro 5 It is an insurance programme designed for residential mortgages underwriters and it is composed of two different polices: a Term Life Insurance, issued by Net Insurance Life S.p.A., and another policy that covers other risks (Multirisks policy) issued by Net Insurance S.p.A. Insurance Policy Mutuo al Sicuro 10 It is an insurance programme with the same features of Mutuo al Sicuro 5 with: 10 years duration without implicit renewal; Limitation related to the age of the clients. Insurance Policy Prestito al Sicuro: It is an insurance programme for personal loans borrowers. It is composed by two different insurance policies: A Term Life Insurance that covers the mortality risk issued by Net insurance life S.p.A. A policy that cover job loss and disease risk issued by Net Insurance S.p.A. Insurance Policy Se Mai It is a Term Life Insurance. The duration of the policy is between 5 and 30 years. If the underwriter dies the policy gives a compensation to the beneficiary of the insurance coverage. 50

51 Appendix Products: Retail / Life Insurance LIFE INSURANCE Since the 12 th June 2013, Net Insurance Life has started its on line and telephonic distribution of some life insurance products through the website and call centre The on-line distribution is realized through the institutional web site and through This project was developed in collaboration with Mutui on-line Group S.p.A., leader in the distribution of on-line financial products Mutui on-line Group offers outsourcing activities too, like, call centre and contracts management to support the website Since 2013 the Life insurance products are: NET FOR LIFE One year Term Life Insurance with a variable premium; NET FOR LIFE Multi-year Term Life Insurance with a fixed premium; NET PHONE LIFE Term Life Insurance with yearly premium and fixed capital. 51

52 1 Nota metodologica Via Bocca di Leone Rome Tel Fax