Insurance Services

The SBU financial results for the year were down year-on-year, and should be read in light of the challenging context for the sector and the fact that 2022 enjoyed positive effects related to interest rate dynamics. We highlight the solid performance in the Life business with net premium inflows of €3.4 billion in 2023, in line with expectations and bucking the trend in the sector, with the lapse rate remaining well below market levels. Net Insurance’s contribution to the protection business was positive.
The Solvency Ratio at 31 December 2023 stood at 307%, confirming the solvency of the insurance Group.


Results and KPIs

 

Insurance Services 
(€m)

2023

2022

Changes 

%

External revenue

1,567

1,650

(83)

-5.0%

Revenue from other sectors

(148)

(148)

(0)

-0.1%

Total revenue

1,419

1,502

(83)

-5.5%

Costs

31

19

+12

+62.0%

Costs vs. other sectors

28

29

(0)

-1.5%

Total costs

59

48

+11

+23.9%

EBIT

1,360

1,455

(94)

-6.5%

NET PROFIT

994

1,051

(57)

-5.5%

 

 

Operative KPIs

31 December 2023

31 December 2022

Changes

Net technical provisions Poste Vita Group (€bn)1

161.1

154.0

+7.1

+4.6%

Contractual Service Margin (CSM)2 (€bn)

13.7

12.9

+0.8

+6.5%

Solvency Ratio

307%

253%

-

-

 

Life business

2023

2022

Changes

Gross premium - Life (€m)3

17,996

17,179

+816

+4.8%

of which: Classes I-IV-V

14,059

9,584

+4,476

+46.7%

of which: Multi-class 4

3,926

7,579

(3,653)

-48.2%

Net inflows (€m)

3.4

7.5

(4.1)

-54.4%

Redemption rate

4.4%

3.5%

-

-

Poste Vita products with ESG elements5

79%

70%

-

-

 

P&C business

2023

2022

Changes (Assoluti)

Changes (%)

Gross premium - P&C (€m)6

581

392

+189

+48.2%

Average daily premiums - Modular offer (€k)7

245

269

(24)

-8.9%

Combined protection ratio (net reinsurance)8

84.2%

84.2%

-

-

¹ Technical reserves of the insurance business (life and P&C) determined in accordance with the national accounting standards used to prepare the separate financial statements of the Group’s insurance companies.

² Represents the present value of the expected and not yet realised profit that the Group will recognise on an accrual basis in profit and loss over the life of the contract.

³ Includes life written premiums, gross of reinsurance and intercompany portions of the Poste Italiane Group.

⁴ Includes gross premiums from Class I and Class III of Multi-class products.

⁵ All products with sustainability content consistent with the “Guidelines for defining the sustainability characteristics of products” approved by the CEO of Poste Vita in October 2023.

⁶ Includes non-life gross premiums written, gross of change in premium reserves, reinsurance ceded and intercompany portions of the Poste Italiane Group.

⁷ Calculated on annualised net premiums, including Property and Personal policies sold in the Poste Italiane network.

⁸ Corresponds to the ratio of total costs incurred (claims and settlement expenses + net reinsurance expenses + attributable/non-attributable operating expenses + other technical expenses and income) to gross insurance revenues.

 

 


 

Title: Market Revenues

(data in millions of euros)

Fiscal Year

Category2022 (millions of euros)2023 (millions of euros)Change (millions of euros)Change %
Non-life (Includes Poste Insurance Broker)6882 +20.6%
Life1,5821,475 -6.7%
Total1,6501,587-83-3.8%
CSM Release1,5151,285 -15.2%

Fourth Quarter of the Year

CategoryQ4 2022 (millions of euros)Q4 2023 (millions of euros)Change (millions of euros)Change %
Non-life (Includes Poste Insurance Broker)1233 +175.0%
Life494391 -20.8%
Total506425-81-16.1%
CSM Release468329 -29.7%

 

Market-leading insurance group with comprehensive Life and Protection product range.

  • Resilient and Sustainable Life Investment and Pension business
  • Rapid and profitable growth in the Protection business
  • Expansion of the distribution network through third-party channels
  • Full integration of ESG principles in investment products
  • Positive organic capital generation, strong capital ratios and less volatility than in the past
SEGMENTOPERATING REVIEWPILLAR
LIFE

In the context of Class I investment products:

  • in April 2023, the “Poste Domani Insieme” policy was launched with a duration of 10 years and with the main feature of the New Separately Managed Account called “Poste Vita Valore Solidità”86. The policy includes as ancillary cover the free serious illness policy “Poste protezione Mia87”; 
  • in June 2023, a policy called “Orizzonte 5” was launched, with a duration of 5 years with the Separately Managed Account called “Posta ValorePiù” and can only be subscribed to for the potential reinvestment, as part of advisory
    services, of expired or maturing policies; 
  • November 2023 saw the placement of the new “Poste Prospettiva Valore Gold” policy, a mixed-form life insurance policy with a 10-year term and annual revaluation of the invested capital88.

In the context of Multi-class investment products:
 

  • from July 2023, “Poste Progetto Integrazione Programmata”, a mixed-form life insurance contract89 (build-up component and unit-linked component) is being placed on the market. It is characterised by the provision for decumulation: the customer has access to a plan of automatic and scheduled periodic redemptions of the Invested Capital90. The contract duration is 15 years;
  • dal mese di novembre 2023, è in collocamento “Poste Progetto Bonus 4in4”, un contratto di assicurativo sulla vita in forma mista, di durata pari a 15 anni, che prevede l’erogazione di due bonus del 2% del premio al primo e al quarto anno. La polizza include come copertura accessoria la polizza 
Image
Icona finanza sostenibile
P&C/LIFEFrom April 2023, the restyling91 of the “person” coverage policies is available in all post offices, as well as the unique underwriting process with the Poste Protezione Affetti 360 life insurance policy.
Image
Icona innovazione
P&CDuring the first half of the year, the new version of “Posteprotezione Prestito” was made available at all post offices. Compared to the previous version, the policy includes new covers and services, such as legal protection and job replacement92.
Image
Icona valore al territorio
During the fourth quarter of 2023, the new insurance “Check Up” service was released, which allowed for a comprehensive consultation to develop the analysis of the needs and requirements of the individual customer in the household.

86 The main feature of the new separately managed account is the presence of the so-called “profit fund”: a fund that is established by setting aside net capital gains realised on the sale of assets under the separately managed account.
87 “Poste Domani Insieme” subscribers aged between 18 and 69 are offered “Poste Protezione Mia”, a free serious illness policy provided by Poste Assicura, designed to protect their investment. In the event of the first diagnosis of a serious illness, Poste Assicura shall in fact pay the Policyholder an indemnity equal to 25% of the life premiums paid into the insurance investment product, non-revalued and resulting at the time of the first diagnosis of a serious illness, net of any partial redemptions and releases for other causes.
88La polizza prevede una rivalutazione annuale del capitale investito, ad un tasso certo e predeterminato per i primi 5 anni di e, nel corso delle annualità successive ai primi 5 anni, una rivalutazione annuale, positiva o negativa, dell’importo consolidato in base al rendimento della gestione separata Poste Vita Valore Solidità.
89 The contract benefits are linked to the Poste Vita’s Separately Managed Account Posta ValorePiù and to the value of the units of one of the three available Internal Insurance Funds: Poste Vita Valore Sostenibilità Equilibrato, Poste Vita Valore Sostenibilità Dinamico and Poste Vita Valore Sostenibilità Sviluppo.
90 The product is aimed at customers who have at least €40,000 in investable assets and whose goal is capital appreciation and growth over a long-term time horizon.
91 This is a simplification of the purchasing process for insurance products covering the risks for the person, death or permanent disability from illness and accidents.

92The job replacement service is aimed at reintegration into the world of work; if a policyholder loses his or her job, a customised training development plan is drawn up for him or her, support is provided in updating his or her CV, and specific motivational learning sessions are organised. At the end of the course, it is assessed which partner companies could represent a valid opportunity for the policyholder to re-enter the labour market and the parties are put in contact, it being understood that in no way, there is a guarantee of eventual employment.