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La Via Cattolica

STRATEGICPLAN2007 - 20102007 - 2010

Borsa Italiana

ITALIAN INVESTORCONFERENCE 2007

London, 21-22 June 2007

Contents

The strategic positioning

The business Pillars of Group strategy

Economic and financial objectives to 2010

Going on the Cattolica way

1

A solid base for the generation of value

€ 4.5 bn in 2006 (+8.5% CAGR compared to 2000), of which 35% is non-life and 65% is life insurance6th largest operator in the Italian market, 5th in Motor

A history of overall growth of premiums

From ~550 to ~1,500 agencies during 2000-06Strong growth of the agency

network

Approximately 2 million direct customers in the agency network alone

A broad customer base with potential for further

development

Over 30 agreements with partner banks involving over 2,700 branches

A successful model in Bancassurance

~ 26,000 Shareholder membersNetwork of relations with Ecclesiastic and Non-profitentities

The Group has a firmly rooted system of economic relations

“A” rating from A.M. Best (stable outlook)"A-" rating from Standard & Poors (stable outlook)

Flexibility and financial strength

2

Leading insurance company for retail and small business customers

The strategic concept

Focused, organic growth, with specialization and further development of

Group's system of relations

Increased value with focus on operating efficiency and risk and capital

management

Systematic development of growth opportunities in Italy and abroad

Strategic objectives

Plan perimeter

3

The Business Pillars which constitute the Group's strategy

Focused, endogenous growth, with specialization and further development of Group's system of relations

Increased value with focus on operating efficiency and risk and capital management

Strategic Pillars

Unification and development of the Group's agency networks, widespread throughout the country (“Compagnia del Territorio”)Unification and development of the Group's agency networks, widespread throughout the country (“Compagnia del Territorio”)

Growth in value, quality of service and efficiency of the motorbusiness, through the specialized business partnership with Mapfre Group

Growth in value, quality of service and efficiency of the motorbusiness, through the specialized business partnership with Mapfre Group

Development of life and non-life bancassurance: reinforcement and extension of the partnerships with regional banks, intensification of the strategic relation with Banca Lombarda and extensive development of the new agreement with Banca Popolare di Vicenza

Development of life and non-life bancassurance: reinforcement and extension of the partnerships with regional banks, intensification of the strategic relation with Banca Lombarda and extensive development of the new agreement with Banca Popolare di Vicenza

Exploitation of the relations with shareholdersFocused action on ecclesiastic and non-profit entitiesExploitation of the relations with shareholdersFocused action on ecclesiastic and non-profit entities

Corporate, organizational and operational integrationCorporate, organizational and operational integration

Development of Group investment policies Development of Group investment policies

Strategic risk and capital management Strategic risk and capital management

4

A U T OA U T OA U T OA U T O

Shared operational services

The new business and service model

Motor Business(1)

(1) Including Motor FTK, Assistance and all accessories to the overall Motor product , except the business developed with Shareholder members and the banking channel

(2) Only the JVs will tend to have an autonomous corporate standing with respect to the parent company

Finance and Investments

Bancassurance“Compagnia del Territorio”

Non MotorP&C

Life Life Non-lifePensionplanning

Banking andfinancialproducts

BANKING CHANNEL (2)INSURANCE CHANNEL

5

Organizational and corporate structure

(1) To be established(2) Awaiting authorization

Note: The non-life bancassurance sector also includes the Cattolica Online division and Lombarda Assicurazioni, when activatedNote: Some transactions require the approval of Cattolica Assicurazioni AGM and the authorization of the competent authorities

Top Management

“Cattolica ClaimsManagement”

(new diCa)

“Compagnia del Territorio”

Life and Non-life Bancassurance

Pension Planning

Governance Functions

NewCoBank products (1)

BPVI FONDI

ABC Assicura

Finance and Investments

Ecclesiastic and Non- Profit entities


Lombarda Assicurazioni (2)

6

Corporate simplification

Agency motor classes


MERGER

Corporate Business/ brokers

Agency motor

classes

New name

Establishment of MCA Centralization of life and pension planning divisions

MER

GER

(1) Note: The transactions are subject to the authorization of the competent authorities

Mergers

7

Contents

Strategic positioning


- “Compagnia del Territorio”

- The specialized business partnership with Mapfre Group

- Life and non-life bancassurance

- Corporate, organizational and operational integration

- Investment policies

- Risk and Capital management



8

“Compagnia del Territorio” - Focus on proprietary channel

Increased penetration of non motor

and life products in the agency network

Unification and integration of the agency networks- Segmentation of agencies into the types and

models profiled- Progressive development of range of

products and services

Increase in commercial efficiency and exploitation of the agency network- New sales structure, unifying and

strengthening of the central and local sales structures

- Expanding Agency sales force, by introducing Insurance Consultants and Life and Pension Planning Consultants

- Intense training program- Incentives aimed at increasing profitability and

cross-selling- Development of support and sales monitoring

tools

Drivers of development

Target

“Compagnia del Territorio”“Compagnia del Territorio”

9

Unification and integration of the agency networks

Number of Agencies(3)

569625569~1,400~1,400

99

2

4545

143143

25515

145

21

9121

52

53

136

37

61

42

1475

79

9

29%

52%

19%

N: 725C: 362S: 271

A widespread agency network, firmly rooted in the local area, particularly outside the large metropolitan areas

58% of the Agencies are in areas with populations of 10,000 to 100,000 Strong relational system for retail and small business customersExcellent knowledge of the local marketsOpportunity to exploit relations with a wider range of insurance and financial products


A unified agency network

Motor (1)

Two agency mandates

Non motor, life, pensionplanning(2)


(1) Including Motor FTK, Assistance and accessories to the Motor product(2) Including the entire business portfolio (life and non-life) developed with

Shareholders members(3) Updated December 2006

10

Strategy of integrated products and services

Vehicles Protection

of goods

and assets

Personal protection

Life and pension planning

Savings and investments

Financing Banking services

Motor TPLProt. of other

damages to

goods

Health products

TCM

Savings plans

Pension Funds

Innovative products

Life financ. Revolving cardsalso for policies

Cash accounts

Motor FTKHeadof family TPL

and activities

Funds and management…

Consumer credit

Legaladvice

MortgagesAssistance

…

Products/services offered in progressive modulesDevelopment of specific offers targeted to certain segments (young people, couples, senior citizens, affluent/private)Product combinations, with multiple guarantee and multiple specialty innovations

Credit cards…

Development of customer loyalty initiatives


Retail and Small Business Customers

Services

Long term care.

…

…

…

Integrated safeguarding circuits

11

Unification and strengthening of the sales process

Unification and strengthening of the sales structure, increasing the duties of the marketing and sales divisions

Increasing domestic sales staff (planned increase of 100-120), assigned to boost and support the agency network


Action points Sales Division - Agents

Sales

Sales Division -Agents

Sales Planning

Network

Area Manager

Life spec.

Agentsworking under an

company departmentAgents

Sales Assistants

Marketing

12

Increasing the domestic sales force

CattolicaAgent

Sub-Agent (1)

Life and pension planningconsultant

AgencyFinancialAdvisor (2)

Insurance consultant

(1) The acquisition of new sub-agents with portfolios will not be the main focus over the next few years

(2) All the agency staff (Agents, sub-agents, producers) can be Financial Advisors

Potentialcareerpath

350(target for the period

in question)

Central role of the Agent in the process of integrating and increasing his own sales forceSupport from the “Compagnia del Territorio” to Agents for recruiting, training and sales coordination of the sales force

Primary focus on portfolios of agency

customers


350(target for the period

in question)

Business development on new customers

700 Consultants

13

Targets of the strategic actions

Increased cross-selling

– actions aimed at increasing sales

– incentives for portfolio mix

– active management of life maturities

Support agencies in adding Insurance consultants (focus on new customers): agencies selected according to portfolio size and staff

Support agencies in adding Life and pension planning consultants(focus on cross selling): major agencies according to portfolio size and staff

*Excluding Cattolica on line divisionCAGR 06-10

2006 2010T

Non motor premiums– Agency channel (€ mn)

Life premium collection – Agency channel (€ mln)

458*617

347534

Action points


2006 2010T

11.4%

7.7%

14

Mapfre Cattolica Auto - targets

Increase in profitability of the Motor segment,

with increased penetration of coverage with higher

added value and improvement in technical

results

• Company specialized in the Motor segment in a joint-venture with Mapfre

• Expanding the range of products and services; careful selection of risks and customized pricing

Business partnership withMapfre

Business partnership withMapfre

• Actions focused optimizing claims management, with focus on customer service and profitability over the entire life of the claim


Target

Completion of on-going re-alignment strategy


15

Profile of the joint-venture

Cross Fertilization of experiencesMAPFRE will take on the role of catalyst and driver for innovation. Both Groups will be able to benefit from the mutual exchange of experience and know-how

Create a corporate vehicle specialized in the Motor segment which, using the contributions of Mapfre, the leader in the motor business in Spain, will provide a suitable response to the competitive and regulatory change underway in the Italian Motor insurance market, by:

the provision of high quality service to customerscontinuous innovation of product and processspecific actions aimed at increasing customer appreciation of the value of the service receivedan integrated distribution network widespread throughout the countrytechnical excellence from underwriting up to claim adjustment optimization of efficiency of operations supporting the entire risk underwriting and claims management processes

(1) Aggregated 2005

• Creating a 50/50 joint-venture called Mapfre Cattolica Auto(MCA)

• Mapfre purchases 50% of the assets relating to the agency motor business of Cattolica and Duomo/ UniOne

• Consolidated gross premiums on an annual basis: > 1 bil (1)

• Shareholders’ equity: ~ 400 mn

• Distribution network 1,426 agencies

• Joint-venture on an equal basis as defined by IAS 31

Business partnership with the Mapfre Group


The operation

The numbers

Mission

16

Optimization of claims management

All Group activities involving claims management centralized in di.CaDevelopment of operating platforms:– Industrialization of processes– Flexible organization– New TechnologiesProcess integration– Reduction of management and claim

settlement costs (e.g. legal expenses and inspections)

– Reduction of logistics costs in adjustment centers (unification of adjustment center networks)

– Centralization and diffusion of information and knowledge



Action points

Focus on customer service and

profitability over the entire claims cycle

In cooperationwith

In cooperationwith

17

Targets of the strategic actions

Premiums - Motor Agents (€ mln)

(1) Normalized value(2) Estimate - Gross of reinsurance

Claims ratio MCA (2) (%) 80.3% (1) 76.0%

Total MCA

Group share of MCA



2006 2010T

1,0521,138

569

CAGR 06-10

2.0%

- 4.3 p.p.

18

Bancassurance - strategic drivers

Consolidation of the life market share

and development of non-life

bancassurance

Reconfirmation of the partnership oriented model: sales agreements, focused partnerships, joint ventures

Strategic partnership with BPVI

Consolidation of life bancassurance

Development of non-life bancassurance


Target

BancassuranceBancassurance

19

Bancassurance: the "repositioning" of the model

Focused partnerships

Sales agreements

Joint ventures

Product distribution agreements

Maximum exploitation of the management model for a differentiate portfolio of

partnerships

Distribution and product agreements,reinforced by

capital investments (in certain cases featuring a cross over)

Joint-ventures, with a strategicpartnership

946

252

1,539

Number of branches

Taking advantage of existing agreements

Development of new agreements, aimed at completing geographic coverage

Taking advantage of existing agreements

Business development aimed at selecting new agreements

Taking advantage of partnerships


20

The agreement with Banca Popolare di Vicenza

Life Bancassurance: acquisition of a 50% share in life assurance companies of Banca Popolare di Vicenza Group: Berica Vita SpA (governed by Italian law) and Vicenza Life Ltd (governed by Irish law)

Non-life Bancassurance: disposal to BPVI of a 50% share of ABC Assicura SpA

Asset management: integration of Verona Gestioni SGR with BPVI Fondi SGR. Equal stakes

Newco: Cattolica and Banca Popolare will establish a newco which is equally controlled by both, for placement of bank products across the entire network of Cattolica Group agencies, specifically loans developed by BPVI Group divisions under the Cattolica brand.

Some transactions require the approval of Cattolica Assicurazioni AGM and the authorization of the competent authorities


The key points of the agreementSignificant growth potential in

Life Bancassurance

BPVI

0.91.6

Average premiums per branch (€ mn)

BPVI Average for comparable

banks

16.422.4

Reserves/AUM (%)

Average for comparable

banks

21

The agreement with Banca Lombarda

LOMBARDA VITA2006 premiums:

1.376 € mnCAGR 2006/2010;

8%

22

Business and commercial agreementCattolica Group insurance products will continue to be sold via the 811 bank branches and 567 Financial advisors of Banca Lombarda

Confirmation of Lombarda Vita activity: the joint-venture founded in 2000, 50.1% owned by Cattolica and 49.9 by Banca Lombarda

Renewal until 2010 of Cattolica and Banca Lombarda agreement

Life Bancassurance: action points and objectives

Focus on pension planning as a growing business Balanced product mix, to maintain flexibility in relation to market performanceSelective introduction of innovative product elements to respond to pension planning challenges (e.g. class I and class III mixed products)Monitoring and, where possible, development of the insurance content of life products with financial contentSales actions focused on medium to high level bank customers (affluent and private insurance, also through Irish operations) and testing of corporate bancassurance products (collective / employee benefit)Maintenance of penetration of current partnerships, with a focus on service and sales support to PartnersContinuous search for new partnership opportunities (not taken into account for the Plan)


Premiums - Life Bancassurance (€ mn)

2,5173,107

BPVN

Other partnerships

720

2006 2010T

1,7973,107

MS (%) ~4.9% ~5.0%

Action points

5.4%

CAGR 06-10

23

Non-life Bancassurance: action points and objectives

Gradual activation of the range of products offered through all major partner networks, with a focus on collective products coupled with banking products (credit protection on personal loans and mortgages, accident and injury coverage for c/a and fire insurance on mortgages) and on stand-alone products

Maintenance of wide range of products/services (asset, vehicle, current account, credit line and personal coverage), but with a particular focus on personal coverage for the retail segment

Subsequent focus on products for the small business segment, in particular with “all risk”coverage products (theft, fire, civil liability)

Extension of the penetration of current partnerships

Continuous exploration of opportunities for new agreements with banks and financial companies


Premiums - Non-Life Bancassurance (€ mn)

28

82

Non motorMotor

24

2006 2010T4

20

MS (%) ~4.1% ~7.3%

62

Action points

31%

CAGR 06-10

24

IT intervention guidelines

Support the corporate and organizational evolution expected in the near future

Support the operating launch of MCA, through unification of the agency network

Unification and innovation of Group systems, rationalizing the platform and facilitating efficiency

Support the evolution of the integrated agency network

Main objectives

Corporate, organizational and operational integrationCorporate, organizational

and operational integration

Organizational acceleration strategies

Partnership in IT application and facility management

New management team for the IT company

Investment Plan for strategic projects 2007/10: ~ € 60 mn

25

Operating efficiency

Freeze employee turnover

− Take advantage of existing skills

− Reassign staff to areas with greater development, using dedicated training programs

− Recruitment of staff with selected specializations

Insourcing of currently outsource tasks/departments to available staff

− once the corporate unification is complete

− actions planned on information systems

Acceleration of the optimization and centralization of purchases

Compliance with IT budget

Action points

(1) At a perimeter level with 100% aggregated with MCA

Gross overall savings of approximately € 35 million (1) in operating costs compared to inertial

Corporate, organizational and operational integrationCorporate, organizational

and operational integration

26

Guidelines for capital usage and management

Growth

Systematic development of growth opportunities in Italy and abroad

Share-holders

Progressive growth in the

dividend per shareSolidityConfirmation

of rating target ≥ A

In the medium term with

absence of opportunities

Capital management actions

Capital availability targets

Management of risks and capital

Management of risks and capital

27

Contents





28

Main targets of the plan: focus on growth aimed at generating value…

Premium collection (€ mn) (1) Non-life Combined ratio (%)

4,5145,279

Life

Non-life

(1) Including investment contractsNote: Tua Assicurazioni included in the figures for 2006 (in the one-off item for the combined ratio)

109.2%

Normaliz.2,906

2006 2010T

1,608

3,950

1,3302006 2010T

~ 99% ~ 93%

TARGETS

CAGR 06-10

3.4 %

- ~ 6 p.p

∆ p.p. 06-10T: Target

29

… with attention to the technical profitability and operating efficiency levels

2006

76.8

-1.6 -1.3-1.5

-1.8

2010T

70.621

2006

20.9

2010T

+1.8

-1.9

Operations involvingportfolio realignment

Operations involvingportfolio realignment

Evolution of the portfolio mix with increasing weight on non motor business

Evolution of the portfolio mix with increasing weight on non motor business

Portfolio re-balancing effect for theMCA operation

Portfolio re-balancing effect for theMCA operation

Reduction of manage-ment claim adjustment costs

Reduction of manage-ment claim adjustment costs

Evolution of the commission mix:

Evolution of the commission mix:

Actions involvingreduction of operating costs

Actions involvingreduction of operating costs• increasing

weight of non motor business

• MCA effect

Claims Ratio 2006-2010 change (%) Expense Ratio 2006-2010 change (%)

Commission ratio

Pure expense ratio(1)

(1) Normalized

TARGETS

F: Forecast; T: Target

30

85,6

Development of consolidated and net Group profits

Net consolidated profit (€ mn)

2006 2010T

Group net profit (€ mn)

2006 2010T

TARGETS

In the interim periodsignificant capital gains are expected from planned extraordinary transactions

CAGR 06-10

160

195

139

1705,1%

5,2%

T: Target

31

Contents





32

1Q2007 Results

1Q2006 1Q2007

Consolidated net result(€ mln)

3821

- 44.7%

2006 1Q2007

Combined ratio(%)

109.2%

102.7%

2005

Dividendo per azione(€)

1Q2006** 1Q2007**

Net financial income(€ mln)

51

7852.9%

2005

Dividendo per azione(€)

1Q2006** 1Q2007**

Gross premiums collection*(€ mln)

1,051 1,046- 0.5%

405 399

1.1%

-1.5%

Focus on non-life more profitable businesses:

• Non-motor business: +4%

• Motor premiums: -3.7% because of portfolio pruning

Focus on non-life more profitable businesses:

• Non-motor business: +4%

• Motor premiums: -3.7% because of portfolio pruning

1Q2006 result was positively affected by extraordinary gains coming from real estate disposal worth 10 mn, gross of taxes

1Q2006 result was positively affected by extraordinary gains coming from real estate disposal worth 10 mn, gross of taxes

In 2006 Cattolica maintained a prudent approach in P&C business via a reinforcement of non-life technical reserves

In 2006 Cattolica maintained a prudent approach in P&C business via a reinforcement of non-life technical reserves

646 647

* Including investment contracts ** Excluding BPV VITA according to IFRS 5

33

New Shareholders’ Structure

Stakebuilding planannounced by Mapfre who will acquire extra 10% Cattolica’sshares on the market

Two-part capital increase reserved to Banca Popolaredi Vicenza: 1° tranche will amount to 8% of Cattolica’spost-increase share capital (waiting for the final authorization from market authorities); 2° tranche, for another 4% of capital, will be available starting on July 1°2010.

2007 Shareholders’ Structure 2007 Cattolica Shareholders’ structure

FondazioneBanca del Monte diLombardia2.006%

Retailinvestors76%

Mapfre4.06%

BancaPopolare diVicenza 2.01%

FondazioneCARI Trento e Rovereto2.2%

Further actions

Institutional investors show stronger interest on the Stock with acquisition of important stakes

OtherInstitutionalinvestors13%

Going on the Cattolica Way

Corporate restructuring startedCommercial reorganization going-onAccelerating portfolio re-mixing (non-motor +4% in 1q)Joint activities with Mapfre started

New Board of Directorsin place since the AGM approval (28th April)

Cattolica new General Manager hired and already in place

General Manager of Mapfre Cattolica Autoappointed by Mapfre

Implementation Master Plan set-up and started

Group & Plan Governance Compagnia del Territorio®

New agreement with BPVI on track, but still not in numbersStrong performance of Lombarda Vita in 1Q (~+5%)Non-life bankinsurance growing at >50% pace in 1Q

Bankinsurance

Approved the integration of CIRA branch of business by CattolicaApproved the merger of Duomo Previdenza and Persona Life in CattolicaNew CIO hired and new IT partner selectedRigid cost control on IT spending in place (actual 20% saving on first projects started)Strong vigilance on HR & structure costs

Corporate organizational and operational integration

34

ANNEX

35

Definitions

Ratio Calculation method

Claims incurred/Earned premiums, net of reinsuranceClaims Ratio

Operating expenses/Earned premiums, net of reinsuranceExpense Ratio (Non-life)

(1 - Non-life technical result/Earned premiums, net of reinsurance)Combined Ratio

36

21 March

27-28 April

10 May

12 September

13 November

Corporate Events 2007

Calendar

Approval of the financial statements for the year and the consolidated financial statements for 2006

Shareholders’ Meeting27 April – First call28 April– Second call

Approval of the quarterly financial statements for the period ending 31 March 2007

Approval of the quarterly financial statements for the period ending 30 June 2007

Approval of the quarterly financial statements for the period ending 30 September 2007

37

Contacts

Group Chief Strategy and Operating OfficerHead of Investor RelationsTel. +39 045 8391620e-mail: [email protected]

Giulio Fezzi

Andrea Battista

Head of Bancassurancee-mail: [email protected]

Piero Gavazzi

Chief Financial Officere-mail: [email protected]

38

Chiara Adria

Investor RelationsTel. +39 045 8391229e-mail: [email protected]

Chiara Giordano

Investor RelationsTel. +39 045 8391114e-mail: [email protected]

This document has been prepared by Cattolica Assicurazioni – based on data from internal sources (year-end financial statements, consolidated group financial statements, internal reporting and other company documentation, etc.) – for the sole purpose of providing information on the group’s results and future operating strategies. Given this, it can in no way be used as a basis for possible investment decisions. It is not a solicitation to buy or sell shares. No part of the document can be taken to be the cause of or reason for agreements or commitments of any type or kind whatsoever, nor can it be relied upon for agreements and commitments.Information contained in the document concerning forecasts has been prepared according to various assumptions and/or elements that might ultimately materialise differently to present expectations. Results might therefore change. Cattolica therefore in no way provides any guarantee, either explicit or tacit, as regards the integrity or accuracy of the information or opinions contained in the document, nor can any degree of reliability be attributed to the same, inasmuch as it has not been subjected to independent verification. Responsibility for use of the information and opinions contained in the document lies solely with the user. In any case Cattolica, within legally admissible limits, will not consider itself liable for any damages, direct or indirect, that third parties might claim due to utilisation of incomplete or inaccurate information. For any further information concerning Cattolica Assicurazioni and its related group, reference must be made exclusively to the information given in the annual, quarterly, and interim reports and financial statements. The full versions of these documents, which constitute the factual basis and proof for all legal purposes, are lodged at the company’s registered offices and are available to anyone requesting them. Reproduction or full or partial publication and distribution of the information contained herein to third parties is prohibited. Acceptance of the present document automatically signifies recognition of the aforesaid constraints.

DISCLAIMER

39

Searching for new ways to create valueand new value to create

La Via Cattolica

STRATEGICPLAN2007 - 20102007 - 2010

Borsa Italiana

ITALIAN INVESTORCONFERENCE 2007

London, 21-22 June 2007

la via cattolica...company department agents sales assistants marketing 12 increasing the domestic...

Documents