Unipol Gruppo Finanziario SpA (UNI.MI) said late Thursday it is targeting a 2015 net profit of about EUR970 million ($1.27 billion) following the integration with Premafin-Fondiaria SAI.

In late January, Unipol reached an agreement with Premafin Finanziaria Holding di Partecipazioni SpA (PF.MI) aimed at creating the country's second largest insurer by the end of the year. Premafin is the holding company of Fondiaria-SAi SpA (FSA.MI), or FonSai. Unipol has given itself until July 20 to get the necessary regulatory approval.

In a filing to the Italian stock exchange, the company said it expects the 2015 life premiums of the combined company to reach about EUR7.1 billion, while nonlife premiums are seen at EUR10.5 billion.

The solvency ratio--a measure of available capital over risk capital, which must be at least 100% by regulatory requirement--is expected to reach 150% in 2015.

Unipol added it expects synergies for EUR335 million in the medium term from the integration operation with Premafin-FonSai.

In addition, Unipol said it ended 2011 with a net loss of EUR94 million compared with a net profit of EUR71 million, as a result of goodwill impairment of EUR300 million on Unipol Banca.

Despite a solvency margin of 1.4 times the regulatory requirement and a EUR900 million excess capital, Carlo Cimbri, the company's chief executive officer, said in the statement he advises against the distribution of a dividend due to the economic difficulties and financial markets instability.

Exchange website: www.borsaitaliana.it

-By Enza Tedesco, Dow Jones Newswires, enza.tedesco@dowjones.com

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