MILAN (Reuters) - UnipolSai ended the first nine months of the year with consolidated net income down 4.9 percent to 586 million euros affected by deteriorating profitability in its non-life business due to higher claims costs and the impact of weather events in northern Italy last summer.

Total direct insurance premiums rose 7.5 percent year-on-year to 10.6 billion euros, including 6.1 billion in non-life (+3.8 percent) and 4.5 billion in life (+12.9 percent).

More sustained, however, was the growth in Non-Motor premiums, +6.2% thanks mainly to the development of the Health segment.

The Non-Life business closed the period with gross profit down 28 percent to 527 million, while the Life business result improved by nearly 18 percent to 224 million.

The combined ratio, including the reinsurance balance, is at 98.6 percent, down from the 97.1 percent recorded in the first half of 2023 mainly due to the impact of the weather events that hit northern Italy in July with windstorms and hail, UnipolSai points out.

On the other hand, the company adds, the third quarter saw an improvement in motor liability business.

On the capital front, the individual solvency ratio at the end of September was 303 percent, up from 288 percent at the end of 2002.

Consolidated Solvency based on economic capital is 296% from 274% in December 2022.

Parent company Unipol made a profit of 769 million in the nine months, down 10 percent from 850 million last year calculated under previous accounting principles and on which were reflected extraordinary items of about 275 million related to the pro-rata consolidation of Bper Banca.

Among the businesses directly related to the parent company, the Holding and Other activities sector improved, with pretax income rising to 111 million from 46 million previously.

Particularly noteworthy is the positive result recorded by the Una Group, which benefited from the recovery in the flow of tourism in Italy, reaching a net income of 24 million euros.

Regarding the Unipol Group's solvency ratio, as of September 30, the ratio of shareholders' equity to required capital was 218 percent, up from 200 percent at the end of December.

UnipolSai full press release

Unipol full press release

(Andrea Mandalà, editing Sabina Suzzi)