88th year of business 2009 Annual Report & Accounts Relations/PDF... · PARENT COMPANY OF VITTORIA...

SOCIETÀ PER AZIONI REGISTERED OFFICES: VIA CALDERA, 21 - 20153 MILAN - ITALY SHARE CAPITAL: EURO 65,788,948 FULLY PAID-UP FISCAL CODE AND MILAN COMPANIES REGISTER NO. 01329510158 - REA NO. 54871 COMPANY REGISTERED TO REGISTER OF INSURANCE AND REINSURANCE COMPANIES – SECTION I NO.1.00014 PARENT COMPANY OF VITTORIA ASSICURAZIONI GROUP REGISTERED TO REGISTER OF INSURANCE GROUPS NO.008

88th year of business

2009 Annual Report & Accounts

Annual General Meeting of Shareholders 23 April 2010

Please note that the original Report is in Italian. In case of doubt the Italian version prevails.

Call of General Meeting

The shareholders of Vittoria Assicurazioni SpA are called to attend the ordinary General Meeting (AGM) to be held at Hotel Brun – Via Caldera, 21 - Milan, on Friday, 23 April 2010, at 10:30 a.m. on the first call and, if necessary, on Monday, 24 April 2010, at the same time and place on the second call, to discuss and vote on the following:

AGENDA

1. Financial statements for the year ending on 31 December 2009 and reports of the Board of

Directors and of the Board of Statutory Auditors; related resolutions; 2. Appointment of the Board of Directors, after establishing the number of its members, and

establishment of related remuneration; 3. Appointment of the Board of Statutory Auditors, after establishing the emolument for standing

statutory auditors. The documentation required by current regulations concerning agenda items will be lodged at the company’s registered offices and c/o Borsa Italiana SpA, the company managing the Italian stock market, by the legally established deadline, at the disposal of whoever asks for it. The same documents will be available on the Company’s website at the address www.vittoriaassicurazioni.com, in the Investor Relations section.

The Reports of the Board of Directors regarding the agenda topics, including the 2009 statutory financial statements and annual corporate governance report will be lodged at the registered office and the stock market operating company Borsa Italiana S.p.A. by the statutory deadlines, and will be available to anyone who so requests. These documents will be available on the company website at www.vittoriaassicurazioni.com. In particular, it is pointed out that: - Pursuant to Articles 10 and 17 of the Company Bylaws, appointment of the members of the Board of

Directors and of the Board of Statutory Auditors will take placed on lists presented by shareholders who, alone or together with other presenting shareholders, own total voting equity stock accounting for at least 2.5% of share capital with the right to vote at Ordinary Shareholders’ Meetings.

- The lists presented by shareholders, signed by the persons presenting them, must be lodged at the Company’s registered headquarters at least 1w5 (fifteen days) before the date fixed for shareholders’ meeting on first call – and therefore by the end of the day on Thursday, 8 April 2010 – and will be made public by the Company according to current rules.

- If, upon expiry of the above deadline, as regards appointment of the Board of Statutory Auditors, only one list has been lodged (or lists that are interlinked according to the definitions of current rules), lists for appointment of the Board of Statutory Auditors can be presented until the fifth day after the deadline. In this case, the threshold for presentation of lists for appointment of the Board of Statutory Auditors is reduce to 1.25% of share capital with the right to vote at Ordinary Shareholders’ Meetings.

Together with each list presented for appointment of the Board of Directors, the following documentation must be lodged at the Company’s registered headquarters: - Specific certification issued by a licensed intermediary demonstrating ownership of the number of

shares necessary to present the lists; - The declarations with which individual candidates accept their candidacies and certify, under their

own responsibility, the absence of any causes of ineligibility and incompatibility, as well as possession of the requisites established for their respective offices;

- Acurriculum vitae concerning each candidate’s personal and professional characteristics with the indication, if applicable, of his/her ability to qualify as an independent director.

Together with each list presented for appointment of the Board of Statutory Auditors – which must consist of two sections, one for appointment of standing statutory auditors and one for appointment of substitute statutory auditors – the following documentation must be lodged at the Company’s registered headquarters:

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- Information on the identity of the shareholders who have presented the lists, indicating the total percent shareholding owned, and certification demonstrating the ownership of the shareholding in question;

- Exhaustive information on the candidates’ personal characteristics, as well as a declaration by the candidates themselves certifying possession of legally established requisites and their acceptance of candidacy, plus a list of any directorships or statutory auditor offices held in other companies.

- In the case of presentation of a list by shareholders other than those owning, also jointly, a controlling or relative-majority shareholding, a declaration must also be lodged certifying the absence of links, such as those indicated in current legislation and regulations, with the latter.

Lists presented that fail to meet the above requirements will be considered not to have been submitted.

Pursuant to Article 84, paragraph 2, of the Regulation adopted with CONSOB (Italian securities & exchange commission) resolution no. 11971 of 14 May 1999 [the Issuers’ Regulation], it is specified that: - As per Article 8 of the Company Bylaw, Article 85 of Italian Legislative Decree no. 58/1998, and

Article 23 of the joint Regulation adopted by the Bank of Italy and the CONSOB on 22 February 2008, holders of ordinary shares for which the Company has received the intermediary’s notification required by Article 2370 of the Italian Civil Code within the deadline of two working days before the date of the shareholders’ meeting on first call, will have the right to take part in the shareholders’ meeting. Holders of ordinary shares that have not yet been dematerialised must hand over their share certificates to an authorised party beforehand, so that they can be included in the centralised dematerialised management system, and request that the aforementioned notification be sent to Vittoria Assicurazioni SpA.

- Share capital is currently € 65,788,948.00, divided into 65,788,948 ordinary shares with a par value of € 1.00 each. Each share gives the right to one vote.

- Each shareholder who has the right to take part in the Shareholders’ Meeting can be represented by means of a written proxy pursuant to current legal requirements, also by signing the proxy included at the foot of authorised intermediaries’ copy of notification. Alternatively, the shareholder can use the proxy form available on the Company’s website www.vittoriaassicurazioni.it in the Investor Relations section.

For the Board of Directors

Roberto Guarena

Chief Executive Officer

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Table of contents Page

Summoning of Annual General Meeting of Shareholders 3 Corporate bodies and officers 6 Delegated powers 8

2009 INDIVIDUAL ANNUAL REPORT & ACCOUNTS

Directors’ Report 9 Review of operating performance 14 Life business 16 Claims, capital sums and annuities accruing, and surrenders - Reinsurance 17 Non-Life business 18 Technical result 18 Claims 21 Claims settlement speed 23 Claims reserve run-off 23 Reinsurance 24 Insurance risk management and analysis 25 Commercial organisation 28 Overheads and operating costs 29 Human resources 30 Investments 32 Property assets 34 Fixed-income securities, equity investments, and mutual investment funds 34 Financial risk management and analysis 36 Bond loan issue 41 Personal data protection code 41 Information on ownership status 42 Shares of company and subsidiaries owned by directors, statutory auditors, and strategically accountable managers 42 Disclosure of existence of groups, pursuant to Article 2497/2, Italian Civil Code. 43 Infragroup and related-party transactions 43 Performance in early months of FY2010 and expected business progress 47 Allocation of earnings 48

Balance Sheet 50 Income Statement 62 Explanatory Notes to Accounts 71

Format and content of year-end financial statements 71 Reclassified Balance Sheet 72 Reclassified Income Statement 74 Part A: Accounting policies 75

Insurance technical captions 75 Investment captions 81 Other captions 85

Part B: Information on Balance Sheet and Income Statement 87 Balance Sheet 87 Statement of equity 103 Guarantees, commitments, and other memorandum accounts 117 Income Statement 119 Tax schedules 131

Part C: Other information 134 Appendices 1-32 to Explanatory Notes 147 Company in which an unquoted Shareholding higher than 10% is held 210 Management attestation 213 Board of statutory auditors’ report and attachment 1 217 Independent auditors’ report 225 Summary of shareholders’ resolutions 230 Company’s development since its corporation 231

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BOARD OF DIRECTORS * Luigi GUATRI Honorary Chairman Giorgio Roberto COSTA Chairman Andrea ACUTIS Executive Deputy Chairman Carlo ACUTIS Executive Deputy Chairman Roberto GUARENA Managing Director Adriana ACUTIS BISCARETTI di RUFFIA Director Francesco BAGGI SISINI Independent director Marco BRIGNONE Independent director Arnaud HELLOUIN de MENIBUS Director Luciano GOBBI Independent director Pietro Carlo MARSANI Independent director Giorgio MARSIAJ Independent director Edgar MÜLLER-GOTTHARD Independent director Lodovico PASSERIN d’ENTREVES Independent director Luca PAVERI FONTANA Director Robert RICCI Independent director Giuseppe SPADAFORA Independent director Mario RAVASIO Secretary

BOARD OF STATUTORY AUDITORS * Angelo CASÒ President Ferruccio ARALDI Standing statutory auditor Giovanni MARITANO Standing statutory auditor Sergio VASCONI Substitute statutory auditor Corrado VERSINO Substitute statutory auditor GENERAL MANAGEMENT Cesare CALDARELLI Joint General Manager Mario RAVASIO Joint General Manager Enrico CORAZZA Central Manager Antonio MASSOCCO Central Manager Piero Angelo PARAZZINI Central Manager INDEPENDENT AUDITOR BDO S.p.A. * Directors and Statutory Auditors appointed by the shareholders’ and Board of directors’ meetings of 23 April 2010

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APPOINTMENTS AND REMUNERATION COMMITTEE Luca PAVERI FONTANA Non-executive president Francesco BAGGI SISINI Independent non-executive member Lodovico PASSERIN d’ENTREVES Independent non-executive member INTERNAL CONTROL COMMITTEE Pietro Carlo MARSANI Independent non-executive president Luciano GOBBI Independent non-executive member Giuseppe SPADAFORA Independent non-executive member FINANCE COMMITTEE Andrea ACUTIS Executive president Adriana ACUTIS BISCARETTI di RUFFIA Non-executive member Carlo ACUTIS Executive member Giorgio COSTA Non-executive member Luciano GOBBI Independent non-executive member Roberto GUARENA Executive member Luca PAVERI FONTANA Non-executive member

REAL ESTATE COMMITTEE Andrea ACUTIS Executive president Adriana ACUTIS BISCARETTI di RUFFIA Non-executive member Carlo ACUTIS Executive member Francesco BAGGI SISINI Independent non-executive member Giorgio COSTA Non-executive member Roberto GUARENA Executive member Arnaud HELLOUIN de MENIBUS Non-executive member Luca PAVERI FONTANA Non-executive member

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In accordance with CONSOB (Italian securities & exchange commission) communication no. 97001574 of 20 February 1997 and given that the company Articles of Association delegate to the Chairman of the Board of Directors powers of legal representation of the company for transactions with third parties and in court and, with the approach established by the Board of Directors, to the Deputy Chairman and Managing Director, a brief description is provided below of the nature of the powers given by the Board of Directors, to be exercised on a disjoined basis, to:

The DEPUTY CHAIRMAN Carlo Acutis and to the MANAGING DIRECTOR

- Purchase, exchange and sell buildings up to a maximum of € 10 (ten) million per transaction.

- Stipulate tender contracts and sign projects and specifications related to the company’s buildings.

- Purchase and sell, without any limit on the amount, government securities or securities guaranteed by the government, non-convertible bonds and similar securities and units in CIUs (collective investment undertakings) that mainly invest in bonds.

- Purchase and sell, give and carry over shares, convertible bonds, investments in companies and bodies, units of closed-end funds and credit instruments in general up to a maximum of € 10 (ten) million, reduced to € 5 (five) million when the investments and divestments relate to investments in insurance companies or other companies with a corporate purpose directly related or functional to that business. The right to purchase and sell majority investments in other companies and bodies is in any case the prerogative of the Board of Directors, except for those transactions involving real estate companies within the limit of € 10 million per transaction.

- Purchase and sell units of CIUs, excluding closed-end funds, that invest in the equity segment, up to the maximum amount of € 15 (fifteen) million.

- Purchase and sell, without any limit on amount, debt and equity securities for the benefit of life policyholders who bear related risk and those arising from pension fund management.

- Grant loans and financing up to the amount of € 5 (five) million in all other cases, with the right to agree on all guarantees, including mortgages.

The right to issue sureties and endorsements on behalf of third parties is in any case the prerogative of the Board of Directors except for those for lease contracts related to the company’s normal operations.

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Directors’ report

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Shareholders, The financial statements for our 88th financial year submitted for your approval show a net profit of € 24,290 thousand (-36.0% compared with the net profit of € 37,939 thousand for the previous year), equivalent to an ROE of 9.1% (16.0% in 2008). The principal components of company operations that contributed to the net profit for the year are illustrated as follows: - a decrease in the balance of premium accruals and liabilities (net of allocated income) in the

Non-Life and Life Businesses, which totalled € 12,977 thousand at the end of the financial year, compared with € 15,646 thousand in the previous year;

- recognition during the period of dividends for € 5,689 thousand, in considerable decrease compared with the amounts of the previous financial year (€ 27,581 thousand).

A total of € 671,307 thousand in premiums were recognised, up 6.4% from the previous year. Direct insurance premiums written amounted to € 129,293 and are broken down as follows: - 68.6% of single premiums, equal to € 88,643 thousand (€ 70,263 thousand at 31 December 2008); - 31.4% of annual premiums, equal to € 40,650 thousand (€ 44,426 thousand at 31 December 2008); The 12.9% increase in premiums is mainly obtained thanks to Intermediaries’ effort, also strengthened by the acquisition of a Life business portfolio from SACE BT S.p.A., with effect 1st July 2009. The yields of segregated accounts are illustrated as follows, in order of importance: - Vittoria Rendimento Mensile: gross return of 4.23% - Vittoria Valore Crescente: gross return of 5.08% - Vittoria Liquinvest: gross return of 3.80% Direct Non-Life (i.e. property and casualty) insurance premiums amounted to € 541,519 thousand, with a 5.0% YoY increase. The loss ratio (claims/premiums ratio) and the combined ratio of retained insurance business were 73.4% and 99.6%, compared with 72.1% and 99.1% the previous year. Motor premiums written increased by 7.5%; more specifically, the land vehicle hulls branch rose by 10.3%. The motor TPL (third-party liability) line reported a 6.7% increase in premiums, due to a significant increase in the number of vehicles/year insured, even if the average premium continues to decrease this year too. Contributing to this growth were the constant attention dedicated to affinity groups and strengthening of the commercial organisation through the opening of 32 new sales outlets. Direct Non-Marine premiums decreased by 2.0%: premiums are decreasing as a consequence of a severe underwriting policy in the Credit Protection line of business, undertaken in light of the unemployment rate increase. Premiums for Speciality lines (i.e. marine and transport, aviation, and credit and suretyship) increased by 18.9%. Overhead costs as a percentage of total insurance premiums and revenues (direct business) amounted to 9.7% (10.0% in 2008): the decrease was reached thanks to a severe cost control. This fact is to be valued in light of the higher costs stemming from the implementation of the five-year plan that calls for development and reinforcement of the in-house organisation set up to support the expected increase in agency and sub-agency sales networks. Investments totalled € 1,602,266 thousand (+4.8%), and are broken down as follows: € 75,800 thousand for investments with the risk borne by policyholders and € 1,526,466 thousand for investments with the risk borne by the Company. Ordinary income from investments with risk borne by the Company totalled € 54,471 thousand, for a decrease of 14.5%.

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The 2009 conversion period of the "Vittoria Assicurazioni – Fixed Floater 2001/2016” bond closed on 30 October. The face value of the converted bonds was € 54,571, which caused share capital to increase from € 65,766,210 to € 65,788,948 and the additional paid-in capital from € 31,097,618 to € 31,129,451. The Board of Directors of Vittoria Assicurazioni S.p.A. on 12 November 2009 resolved the early repayment of the “Vittoria Assicurazioni – Fixed/Floater 2001-2016” convertible bond. Given this, as allowed by Article 9.2 of the loan’s Regulation, on 1 January 2011 the Company will repay all bonds outstanding on that date. On 5 February ISVAP approved the early repayment. As an alternative to repayment, bondholders will be given the option of exercising the bonds’ conversion right. The repayment to the bondholders who will not exercise their conversion right will take place at par, including the interest accrued (5.50% gross of withholding tax). As shown in the consolidated financial statements, equity attributable to the company's shareholders was € 356,056 thousand, up 6.7% from the € 333,846 thousand for the previous year.

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148,005

173,110

215,362

259,677272,893

2005 2006 2007 2008 2009

SHAREHOLDERS' EQUITY (in thousands of euros)

289,445

185,243

723,484

1,198,172

329,677

207,815

767,711

1,305,203

395,191

237,807

810,581

1,305,203

423,940

261,944

758,495

1,444,379

458,549

273,839

812,937

1,545,325

2005 2006 2007 2008 2009

TECHNICAL PROVISIONS, LIFE AND NON-LIFE(net of reinsurers' share)(in thousands of euros)

LIFE BUSINESS

OTHER

THIRD PARTY MOTOR LIABILITY

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Review of operating performance The following table compares, for each line, premiums written in FYs 2009 and 2008 and their contribution to the total portfolio mix:

COMPARISON BETWEEN GROSS PREMIUMS WRITTEN IN 2009 AND 2008DIRECT AND INDIRECT BUSINESS

(in thousand of euros)YoY % of

Year Year change total book2009 2008 % 2009 2008

Domestic direct business

Life businessI Whole- and term life 93,996 91,682 2.5 14.0 14.5 III. Unit-linked policies 1,031 2,405 57.1- 0.2 0.4 IV Health (long-term care) 346 332 4.2 0.0 0.1 V Capitalisation 32,093 18,089 77.4 4.8 2.9 VI Unit trust management 1,827 2,001 -8.7 0.27 0.3Total Life business 129,293 114,509 12.9 19.3 18.2

Non-Life business

Accident 31,924 28,539 11.9 4.8 4.5Health 9,321 8,357 11.5 1.4 1.3Fire and natural events 26,773 25,434 5.3 4.0 4.0Miscellaneous damage 30,273 30,461 -0.6 4.4 4.8General TPL (third-party liability) 30,311 29,694 2.1 4.5 4.7Pecuniary losses 16,053 25,134 -36.1 2.4 4.0Legal protection 2,584 2,541 1.7 0.4 0.4Total non-marine lines (exc. specialty and motor) 147,239 150,160 -2.0 21.9 23.7

Railway rolling stock 2 2 0.0 0.0 0.0Aircraft hulls 1,059 841 25.9 0.1 0.1Marine hulls 725 1,117 -35.1 0.1 0.2Cargo insurance 2,027 1,831 10.7 0.3 0.3Aviation TPL 60 64 -6.3 0.0 0.0Credit insurance 1,980 1 n.d. 0.3 0.0Bond insurance 8,523 8,237 3.5 1.3 1.3Total specialty lines 14,376 12,093 18.9 2.1 1.9

Third-party motor liability 308,968 289,455 6.7 46.0 45.9Third-party marine liability 450 421 6.9 0.1 0.1Motor vehicle hulls 64,949 58,874 10.3 9.7 9.3Support and assistance 5,537 4,703 17.7 0.8 0.8Total motor lines 379,904 353,453 7.5 56.6 56.1

Total Non-Life business 541,519 515,706 5.0 80.6 81.7

Total direct business 670,812 630,215 6.4 99.9 99.9

Domestic indirect business

Life business 1 1 0.0 0.0 0.0Non-Life business 494 502 -1.6 0.1 0.1Total indirect business 495 503 -1.6 0.1 0.1

Grand Total 671,307 630,718 6.4 100.0 100.0

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The following charts highlight premium volume and portfolio breakdown in the last five FYs. Italian Direct Business

256,783

175,633

117,760

264,591

189,969

131,703

279,378

215,593

141,087

289,455

226,251

114,509

308,968

232,551

129,293

2005 2006 2007 2008 2009

WRITTEN PREMIUMS (€/000)

46.7%

31.9%

21.4%

45.0%

32.5%

22.5%

43.8%

34.1%

22.1%

45.9%

35.9%

18.2%

46.0%

34.7%

19.3%

2005 2006 2007 2008 2009

PORTFOLIO MIX

LIFE BUSINESS

OTHER


LIFE BUSINESS

OTHER


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Life business The products currently marketed by the company cover all insurance business lines, from savings (‘‘revaluable’’ policies* relating to segregated accounts), protection (policies covering risks of death, disability, and non-self-sufficiency (i.e. long-term care)) and supplementary pension plans (individual pension schemes and open-ended pension fund). The product range also includes unit-linked financial policies. The lines marketed include policies that envisage the possibility of converting the benefit accrued into an annuity. Conversion takes place at the conditions in force when the option is exercised. The types of tariffs used are those for endowment, whole-life and term-life policies, on both an annual and single-premium basis, and fixed term policies, plus group tariffs for whole/term life and/or disability policies. Contractual terms are updated constantly and are in line with those commonly offered by the market.

The key features of FY2009 are summarised in the following table, where they are compared with data for the previous FY:

LIFE Business - 2009 Results - Net of reinsurance (in thousands of euros)

Non - linked Linked Total Non - linked Linked Total

Premium Income 124,223 2,858 127,081 107,842 4,406 112,248

Other technical Income/(Costs) -177 542 365 -30 539 509

Change in Technical Provisions -26,539 -5,755 -32,294 17,017 26,529 43,546

Claims paid -103,032 -11,704 -114,736 -124,128 -10,091 -134,219

Overheads -17,596 -224 -17,820 -19,627 -472 -20,099

Investment Income 32,322 14,666 46,988 27,023 -20,395 6,628

Operating Profit before Tax 9,201 383 9,584 8,097 516 8,613

Extraordinary Investment Income 210 - 210 - - -

Profit before Tax 9,411 383 9,794 8,097 516 8,613

2009 Results 2008 Results

* For non-Italian readers: with the Italian “revaluable” policy, which is of the endowment type, the insurance company, at the end of each year, grants a bonus that is credited to mathematical reserves and depends on the performance of an investment portfolio. This bonus is determined in such a way that total interest credited to the insured is equal to a given percentage of the annual return of the reference portfolio and in any case does not fall below the minimum interest rate guaranteed. The “revaluable” policy is therefore of the participating type.

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In FY2009 the funds relating to segregated accounts achieved the following returns:

(€/000)

Average rate of return Total investments

Vittoria Rendimento Mensile 4.23% 357,368 Vittoria Valore Crescente 5.08% 244,972 Vittoria Liquinvest 3.80% 6,777

The rate of return allocated to policyholders complies with the specific contractual terms stipulated. As done in previous years, in 2009 acquisition commissions on long-term policies and incentives paid to agents for new business were deferred, i.e. capitalised, and amortised within the total limit of associated loading of premiums, depending on contracts’ duration and in any case over a period not exceeding 10 years.

Claims, accrued capital sums & annuities, and surrenders The following table summarises, for direct business, claims, accrued capital sums & annuities, plus surrenders as at 31 December 2009, compared with the previous FY’s figures, for Classes I (whole/term life), IV (long-term care), and V (capital redemption).

(€/000)

31/12/2009 31/12/2008Claims 16,661 9,880Accrued sums and annuities 62,029 49,785Surrenders 25,178 65,289Total 103,868 124,954 The FY2008 surrenders figure was affected by institutional investors’ recalls of single-premium capital redemption contracts amounting to € 40,568 thousand, whereas the increase in claims was a consequence of the significant increase in risk premiums underwritten in the last three years. Surrenders and claims relating to investments for which policyholders bear the risk (Classes III (unit- and index-linked policies) and VI (open-ended pension fund) totalled € 11,704 thousand vs. € 10,090 thousand in FY2008.

Reinsurance Outward reinsurance

In the Life business, the main treaties in place, which relate to Class 1 (whole/term life), are as follows: - Excess of claims; - Pure office premiums --- treaties set up in 1996 and 1997. Ceded premiums amounted to Euro 2,213 thousand in 2009. Inward reinsurance

With respect to the life business, there is a traditional pure-premium treaty no longer fed with new business which merely records changes occurring in the related portfolio.

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Non-Life business

Technical result

The following table shows – in total and by categories – the technical results of direct and indirect business, net of related outward reinsurance, equalisation (i.e. smoothing) reserves –as indicated in Appendices 25 and 26 of the Explanatory Notes – compared with the same data for the previous FY. The result shown does not take allocation of investment income earned during the FY into account.

(in thousands of euros)

Technical results of direct business net of

outwards

Technical results of indirect

business net of outwards

Change in equalisation provisions

2009 Technical

result

2008 Technical result

Non - Marine lines 2,095 134 -111 2,118 -4,063

Specialty business 660 40 -5 695 -682

Motor business 3,429 0 -195 3,234 12,385

Total Non Life Business 6,184 174 -311 6,047 7,640

Non Life Business - 2009 Results

Technical performance shows a loss ratio and a combined ratio for retained business of 73.4% and 99.6% respectively, as compared with 72.1% and 99.1% in FY2008. Based on this, the following considerations can be made for the various lines.

NON-MARINE BUSINESSES

Total Non-Marine premiums decreased by -2.0%. This was a consequence of the careful underwriting policy applied in the “20% salary assignment loan” sector due to the increase in the unemployment rate, as well of the new ISVAP regulation concerning classification of the various businesses. The technical result was positive vs. a negative result in FY2008, thanks to painstaking revision of risks already on the books and to a prudent underwriting policy for new risks.

More specifically, the individual lines of business showed the following technical results:

Accident: the business featured further growth of previous compared with the previous year’s growth (+11.9% vs. +4.0% YoY). The technical performance of direct business improved over the previous year, thanks to shrinkage of the average cost of current-generation claims, caused by a lower incidence of peak claims.

Health: the business experienced a 11.5% increase in premiums vs. a decrease of -1.6% in FY2008, mainly due to the underwriting of collective policies. The claims ratio worsened due to the increase in the number of reported and peak claims.

Fire and natural events: the business showed an increase in premiums written (+5.3%) as opposed to a decrease of -9.1% in the previous year. It featured a substantially stable technical result for direct business, notwithstanding the occurrence of some peak claims in the SME and Residential segment.

Other asset damage: the premiums of the business – which includes cover of the risks of theft and burglary, hail, damage to electronic equipment, and technological damage – slipped slightly (-0.6%). As regards technical performance, there was a loss in line with that of FY2008.

General TPL: premiums increased by 2.1%, less than the previous year’s growth of 10.7%. This was due to a prudent underwriting policy, implemented in view of the difficult market phase – with the soundness of this confirmed by a positive technical result.

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Pecuniary loss: the business’s premiums decreased by -36.1% YoY. This was mainly because of the decision taken in FY2008 to operate extremely cautiously in the segment of 20%-salary-assignment loans (SALs), which accounted for a preponderant amount of the premiums written for the business. The decision was in turn based on the macroeconomic scenario projected for 2009-2010 and its consequent effects on employment. The decrease in premiums written was also due to the new ISVAP regulation concerning classification of the various businesses. The new classification positions the SAL risk in the Credit category, when it exists, if the possibility of recourse vis-à-vis the insured party is envisaged. Despite the significant deterioration of the rate of claims relating to the job-loss risk, the overall technical result was positive.

Legal protection: the premiums of this business progressed by +1.7%. The technical result remained positive.

SPECIALTY BUSINESSES

Specialty businesses showed premium growth of 18.9%, with a technical result showing improvement compared with previous years. More specifically:

Credit: Premiums written for this business took on special importance in FY2009 due to inclusion in its classification of part of the risks relating to SALs (20%-salary-assignment loans). Despite the substantial absence of claims, the technical result was negative, mainly because of the methods established for calculation of the premiums reserve.

Bond insurance: Premiums written increased by 3.5%, albeit in a general situation of economic slowdown with marked repercussions on the sector of public works contracting and VAT rebates. The business had a positive technical result despite the emergence of claims, as per Italian Law 210/2005, relating to warranties given to the purchasers of buildings – caused by the growing number of companies in the real estate industry that are in trouble.

Aircraft hulls – Aviation TPL: premiums written for these businesses grew by 23.7%, primarily due to the increase of the Aircraft hulls segment (+25.9%). The technical result virtually broke even.

Watercraft hulls (sea, lake and river) and railway rolling stock: Premiums decreased by -35.1% YoY. The technical result was negative because of a major claim event that occurred at a shipyard.

Goods in transit: premiums written grew by 10.7%. Careful selection of risks during underwriting, as well as tight management of recourse, permitted improvement of the already positive technical result.

MOTOR BUSINESSES

Motor businesses as a whole featured 7.5% growth of premiums written, together with a positive technical result. More specifically:

Motor vehicle and watercraft (sea, lake and river) TPL:: Premiums written grew by 6.7% as a result of a tangible increase in the number of vehicles insured, albeit, once again in FY2009 with a tangible decrease in the average premium. Corporate policies continue to focus on (a) accentuation of customisation to increase policyholder loyalty, (b) development of affinity groups, and (c) selective underwriting. The investments necessary to adjust the Company’s IT and operating procedures continue to be significant to ensure effective handling of the problems stemming from application of the knock-for-knock system, as well as to achieve construction of new databases permitting more detailed analysis for proper and timely calculation of tariffs. The technical result – positive – deteriorated compared with FY2008. This was mainly due to the decrease in average premium caused by legislative measures that, during FY2009, had an adverse effect on tariffs (facilitation in assignment of the initial merit rating pursuant to the so-called Bersani law, and the ISVAP measure concerning observation of shared-liability claims for the purposes of evolution of the “malus” rating).

Land motor vehicle hulls: premiums grew by +10.3%. more than in the previous year (+3.5%). We continued to apply an underwriting policy that, besides dedicating special attention to linking ancillary cover to Motor TPL and to further development of the affinity groups, also aimed to

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consolidate co-operation, via the agencies, with the dealer networks for new cars and related services. Although positive, the technical result deteriorated vs. FY2008. This was due to significant claims reports for atmospheric events occurring during the year and to an increase in claims frequency concerning cover related to weather events.

Assistance: Premiums grew by 17.7%, more than in FY2008. The technical result was positive and showed improvement over previous years.

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Claims

Reported claims

The following chart, concerning reported claims, has been prepared using data from positions opened during the year:

(€/000)

number total cost number total cost number total cost

Accident insurance 6,876 17,665 6,366 17,384 8.0 1.6

Health insurance 15,502 6,372 3,831 5,401 304.6 18.0

Fire and natural events 5,745 18,452 5,515 18,468 4.2 -0.1

Miscellaneous damages 10,123 16,948 9,426 16,402 7.4 3.3

Third-party general liability 6,633 22,932 6,751 24,863 -1.7 -7.8

Pecuniary losses 8,384 13,789 4,302 13,711 94.9 0.6

Legal protection 178 90 180 91 -1.1 -1.1

Total non-motor businesses 53,441 96,248 36,371 96,320 46.9 -0.1

Third-party aviation liability 4 1,031 5 423 -20.0 143.7

Third-party marine liability 29 16,215 24 257 20.8 6,209.3

Cargo insurance 368 978 438 1,342 -16.0 -27.1

Third-party aviation liability 1 30 2 1 -50.0 2,900.0

Bond insurance 150 5,267 121 2,504 24.0 110.3

Total Special businesses 561 23,536 590 4,527 -4.9 419.9

Third-party motor liability 75,198 246,552 66,392 217,101 13.3 13.6

Third-party marine liability 70 286 34 164 105.9 74.4

Motor vehicle hulls 25,695 45,136 21,921 38,394 17.2 17.6

Support and assistance 12,701 1,362 10,081 1,033 26.0 31.8

Total motor businesses 113,664 293,336 98,428 256,692 15.5 14.3

Total non-life businesses 167,666 413,120 135,389 357,539 23.8 15.5

31/12/09 31/12/08 Change %

As regards Motor TPL reported claims, the following table shows data by claim handling type:

(€/000)

Branch Claim handling Type Number Total cost Number Total cost

Motor TPL - land K-for-K - liable 53,734 105,072 45,979 87,012 Motor TPL - land K-for-K - originator 62,610 154,288 55,377 135,168 Motor TPL - land Non K-for-K claims 21,464 112,512 20,413 107,737 Motor TPL - watercraft Non K-for-K claims 70 286 34 164

137,878 372,159 121,803 330,080

31/12/09

Total Motor T.P.L. claims handled

31/12/08

The company received 80,792 reports of claim events to be managed as originator (73,563 reports of claim in 2008: +9.8%), against which it will complete recoveries from other insurers for a total of € 125,320 thousand (€ 112,815 thousand in 2008: +11.1%), based on the forfeitary amounts established by the Ministry Technical Committee as per Article 13 of Italian Presidential Decree no. 254/2006.

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Claims paid

The gross cost of all generations of claims, which comprises the cost of the claims handling organisation, is shown in Appendix 19 to the Explanatory Notes.

The following table shows the amount of claims paid for direct business, net of recoveries, and the amount charged to reinsurers:

(€/000)

Claims paid Claims paid Change31/12/09 31/12/08 gross

Current year

Previous years Total

Current year

Previous years Total

claims %

Accident insurance 4,345 7,252 11,596 307 4,229 9,317 13,546 -14.4

Health insurance 3,960 2,039 5,999 11 3,437 2,233 5,670 5.8

Fire and natural events 7,378 8,804 16,182 2,423 7,768 4,562 12,330 31.2

Miscellaneous damages 21,146 3,833 24,979 9,306 21,739 3,004 24,743 1.0

Third-party general liability 5,081 12,396 17,477 359 4,938 10,524 15,462 13.0

Pecuniary losses 3,387 12,887 16,274 93 2,522 2,790 5,313 206.3

Legal protection 0 14 14 12 3 24 27 -46.7

Total non-motor businesses 45,297 47,226 92,523 12,511 44,636 32,454 77,090 20.0

Third-party aviation liability 914 165 1,078 915 367 622 989 9.0

Third-party marine liability 205 206 412 56 31 122 152 170.0

Cargo insurance 189 1,005 1,194 284 189 754 944 26.5

Third-party aviation liability - - - - - 7 7 n.v.

Bond insurance 4,392 2,096 6,489 3,619 1,523 6,337 7,860 -17.5

Total Special businesses 5,700 3,472 9,172 4,874 2,110 7,841 9,952 -7.8

Third-party motor liability 96,307 128,853 225,160 2,268 87,913 145,806 233,720 -3.7

Third-party marine liability 123 75 199 - 47 428 476 -58.3

Motor vehicle hulls 27,172 9,139 36,311 1,316 22,259 8,602 30,861 17.7

Support and assistance 1,407 668 2,075 2,073 1,259 906 2,165 -4.2

Total motor businesses 125,009 138,735 263,745 5,656 111,478 155,743 267,221 -1.3

Total non-life businesses 176,006 189,433 365,439 23,041 158,225 196,038 354,263 3.2

Claims recovered

from reinsurers

The additional cost borne in 2008 for the road-accident victim guarantee fund was € 7.243 thousand vs. € 6,804 thousand in the previous year.

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Claims settlement speed The following table shows claims settlement speed based on the number of reported claims, net of claims eliminated without payout, split by present and aged claims for the main lines of insurance business:

(percentages)

31/12/2009 31/12/2008 31/12/2009 31/12/2008

Accident insurance 57.78 59.43 73.43 80.05Health insurance 86.43 84.37 82.68 73.62Motor vehicle hulls 84.49 83.55 86.82 88.58Fire and natural events 83.46 80.03 80.66 76.53Miscellaneous damages - theft 87.82 85.97 87.19 86.48Third-party motor liability 74.22 75.11 72.24 71.03Third-party general liability 70.45 66.08 36.78 39.67

current generation previous generations

Claims reserve run-off – Direct business The claims reserve existing at the beginning of FY2009, compared with costs borne in the year for previous years’ claim events -.consisting of payments made and year-end reserving for claims yet to be paid – showed, for the only direct business, a gain of 7,109 thousand, i.e. 1.4% of opening reserves, as highlighted in the following table:

Direct Risks (€/000)

2009 2008

Claims reserve brought forward 509,493 504,071

Amounts paid in the year related to claims occurred in previous years -194,548 -200,897 Balance of claims recovered or to be recovered by policyholders

7,229 2,183

Claims reserve carried forward -315,065 -311,862

Balance of portfolio transfers 0 0

Aggregate loss development table 7,109 -6,504

% of incidence on claims reserve brought forward 1.4% -1.3%

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Reinsurance

Outward reinsurance

Corporate policies concerning outward reinsurance are based on the same selection criteria as those applied for direct underwriting. They aim for development and size of the insurance book in relation to the entity of risks covered and for achievement of balanced net retention. Transactions are undertaken internationally with highly rated reinsurers. The main existing treaties relate to: Non-life business Type of treaty Accident Claims excess Aviation hulls Pure premium for flight risks Marine hulls Claims excess Cargo (goods in transit) Claims excess Fire and natural events Claims excess Miscellaneous damage Pure premium for hail, multi-risk Motor TPL Claims excess General TPL Claims excess Suretyship Pure premium Legal protection Pure premium Assistance Pure premium Premiums ceded in the FY totalled € 30,230 thousand.

Inward reinsurance

Acceptance of risks relating to indirect business mainly arises from participation in syndicates and from business in Class 05 - Aircraft hulls/space risks.

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Insurance risk management and analysis

Insurance risk management

Objectives

The company’s insurance business is managed according to the following objectives:

Diversification of types of insurance cover offered;

Careful and correct pricing of policies;

Diversification of risks based on customer segmentation (households, individuals, professionals, small business operators, SMEs and large companies) giving preference to net retention of personal and SME risks, without however neglecting larger companies whose policies are covered by adequate reinsurance;

Diversification of sales channels (agents, bancassurance agreements, and brokers);

Selective risk underwriting policy and continuous monitoring of risk trends;

Organisation of an agency network capable of timely and professional response to customer needs;

Strengthening of the affinity-group approach;

Enhancement of customer loyalty via the sale of integrated products and services;

Increase of the Non-Life market share, dedicating special attention to the non-motor segment, and increase of Life new-business growth rates;

Consolidation of acquired portfolio;

Consolidation of technical profitability and further improvement of the combined ratio, which shows the degree of coverage of charges relating to claims, sales costs and overhead costs in the non-life business;

Constant updating of the New Age system, taking changes in headquarters and agency management processes into account, in order to monitor the insurance book, risk concentration and adequacy of claims settlement speed on an ongoing basis, paying special attention to changes in the insurance market.

Policies

The Group intends pursue the above objectives by applying the following policies:

Strengthening of the agency network throughout Italy, thus ensuring the diversification of risk by geographical area and at the same time paying the utmost attention to areas with anomalous claims rate trends;

Reinforcement of the agency network in terms of continuous training for both agents and their staff;

Creation of trans products for policyholders;

Incentive campaigns for agents to assure the ideal mix of types of cover marketed;

Use of outward reinsurance pursuing a policy of technical balance in mass risks and protection against peak and catastrophe claims;

Limitation of costs, above all thanks to use of the new integrated headquarters/agency operating system, which improves the combined ratio;

Presence of dedicated non-life actuaries, separate from those of the life business, thus permitting not only correct risk pricing (adjustment to the expected claims rate) but also development of customised tariffs with innovative content. The greatest degree of customisation has been achieved in the Motor TPL line with the company’s lead product. The corporate sector, which includes large companies, has always featured pricing based on policyholder reliability and risk levels to be underwritten.

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In order to permit control of risks underwritten, agents work according to a level of independence that is constantly monitored and updated, defined by limits that vary depending on the type of cover and entity of risk. Beyond these limits, only headquarters personnel have the power to sign policies.

Financial and actuarial assumptions for Life insurance products

The assumptions used for valuation of the products sold, as regards both their financial and demographic aspects, are applied taking regulatory constraints into account (e.g., maximum limits for financial cover) and the latest information on demographic trends (e.g., mortality and/or survivorship) and portfolio trends (e.g. cancellations and surrenders, etc.).

When a new product is being created, certain assumptions are adopted (first-order technical bases) which, compatibly with the factors just mentioned, are initially screened, during development of appropriate actuarial valuations, using profit-testing techniques. The latter require the adoption of assumptions other than those previously defined as first-order assumptions. These further assumptions relate to:

- Macro-economic assumptions: trends in market interest rates, inflation, cash flow discount rates, etc.;

- Second-order assumptions: mortality and expected portfolio trends, and assets’ rate of return, etc.;

- Business assumptions: levels of commercial and administrative costs and expenses.

As part of such valuations, sensitivity analyses are performed of how the result varies according to changes in the above assumptions.

A similar procedure is applied when moving from the ex ante valuation to the ex post valuation carried out on the entire portfolio in order to check the valuations made when designing the product.

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Insurance risk analysis

In this section we describe the insurance risks to which the company is exposed. These risks are classified in three main categories, i.e. credit risk, concentration risks, and catastrophe cover (earthquakes, hail, space risks, and floods). Credit risk As regards credit risk, we highlight the fact that the company makes use of premier reinsurers. The following table shows the balance sheet transactions in place as at reporting date, by Standard & Poor’s rating.

(€/000)

S&P Rating Current and deposit

accounts

Technical reserves of inward & outward

reinsurance

Total net balance sheets amounts

% breakdown

AAA 69 492 561 1.2%AA -158 2,534 2,376 5.0%AA- -4,637 13,839 9,202 19.4%A+ -676 23,672 22,996 48.4%A -20,677 26,831 6,154 12.9%A- -307 2,658 2,351 4.9%BBB - - - 0.0%Not rated 967 2,919 3,886 8.2%Totale -25,422 72,947 47,525 100.0%

Concentration risk

In order to neutralise concentration risk, the company distributes its non-life and life products throughout Italy using a multi-channel sales approach. Based on the analysis of premiums as at 31 December 2009, non-life business accounts for approximately 81% of total company premiums, with 46.0% of this percentage referring to motor lines. This concentration of premiums in these lines means that group profitability is largely dependent on the frequency and average cost of claims and on efficient tariff management. This concentration may make the company more vulnerable to changes in the regulatory framework and in market trends. These may occasionally translate into increases in indemnities payable to policyholders. This risk is mitigated by enhancing the loyalty of policyholders featuring more ‘‘virtuous’’ behaviour through accentuated tariff customisation. This aims to normalise the entity of claims whilst also reducing portfolio volatility.

Earthquake exposure

Reinsurance covers put in place to mitigate exposure to earthquake risks have been calculated using the main tools available on the market. Calculation is based on evidence of the maximum probable loss on the fire and miscellaneous asset damage lines (technological risk sector), in turn calculated over a 250-year return period, which is the one most widely used in the Italian market. The protection purchased is approximately twice the requirement shown for the worst-case scenario.

Hail exposure

Once again, in the case of this risk, cover acquired for exposure to the risks present in the land vehicle motor property line is approximately twice the amount of the worst claim that has ever occurred in this line.

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Space risk exposure

The outward reinsurance programme has made it possible to limit maximum net theoretical exposure per risk, with more than 80% of the portfolio underwritten outwardly reinsured. Furthermore, the portfolio underwritten has a maximum effective exposure 60% lower than theoretical exposure.

Flood exposure

Exposure to this catastrophic risk has again been calculated based on an assessment model used by other market operators. The capacity purchased, as in the case of the earthquake risk, far exceeds the worst-case requirement assumed in the model.

Commercial organisation FY2009 featured full application of the Commercial Organisation model that had already been designed by Vittoria Assicurazioni in the previous year. The new organisation enabled our human resources to work according to roles and guidelines that are clearly delineated but, at the same time, also flexible and dynamic. This enabled us to address a period of great market turbulence with determination, obtaining significant results as regards both an enhanced customer offering and expansion of the sales network. Development activity took the concrete form of the inauguration of 32 new agencies and reorganisation of another 24. As at 31/12/2009 the Company was nationally present with 283 general agencies and 463 professional sub-agencies, joined by a further 49 agents with a special life insurance mandate. Based on continuation of the “Novices Project”, initiated during FY2008, we signed on further insurance promoters who flank agencies in developing their business. This initiative also aims to launch young people, who for the first time enter the world of work, in the insurance profession. Given the significant increase in the number of agencies and outside staff dedicated to sales, the year also featured a major training effort, not only in compliance with current regulations, but also in order to equip sales networks with appropriate knowledge of products and of the best sales techniques. The recent regulatory reintroduction of multiannual policies, enabled us to perform in-depth analysis of the insurance book in place, based on targeted commercial campaigns aiming to improve our customer offering. This activity will also continue during FY2010. The increasingly fruitful co-operation with our agent group made it possible to perform synergical and incisive activity also as regards this reform.

We are also pleased to say that all the commercial agreements with the main affinity groups were renewed.

Products The commitment to create new products and revise existing products was maintained. Work during the year can be summarised as follows:

New Products

Life business:

“Linea Risparmio” (“Savings Line): a policy covering end-of-service indemnity dedicated exclusively to directors of companies belonging to specific trade associations;

“Temporanea caso morte a premio e scadenza prefissati”: a simple and immediate term life insurance policy designed for immediate sale;

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“Zero Dubbi”: reactivation of the product [an innovative capital redemption policy]..

Non-Life business:

“Linea Tutela e Infortuni (Protection & Accident Line): policy with discretionary choice of capital

that can be taken out for full accident cover; “Linea Tutela e Infortuni”: new flat-rate products for traffic and leisure accidents; “Linea Imprese e Professioni” (Businesses & Professions Line): an environmental liability policy

relating to loading and unloading of motor vehicles at third-party facilities. “Linea Patrimonio”: a new family product featuring greater flexibility ““Linea Strada” (Road Line): new conditions, changes of some types of cover, and new prices. “Formula Credito”: relating to the Credit business.

Revamped Products

Life business: “Linea Risparmio” (Savings Line): elimination of the minimum limit for two products’ additional

payments; “Linea Investimento” (Investment Line): modification of the investment allocation percentages in

the fixed-style service of unit-linked policies linked to multi-asset funds; “Linea Previdenza Complementare” (Supplementary Pension-Planning Line): updating of the

information sheet of Vittoria Formula Lavoro; “Linea Risparmio” (Savings Line): reduction of minimum premium for two products; “Linea Protezione” (Protection Line): reduction of minium premium for a product.

Non-Life business: The insurance conditions were updated of the products “Formula Uffici” [cover of risks typical of an office, excluding professional TPL], “R.C. Professione” (professional TPL), “Formula Fabbricati” [buildings], and “Vittoria Formula Navigare Più” [watercraft hulls + rescue and assistance]. The tariffs for Non-Marine products were adjusted according to Italian Law no. 99 of 23 July 2009, which envisages application of a discount to premiums for multiannual policies. Revamping continued of the motor products “Vittoria Formula Strada” and “Vittoria Formula Strada InCamper”.

Overhead costs – direct business The total amount of personnel costs, other costs, and depreciation & amortisation charges, before allocation to specific functions, i.e. claims handling, business production organisation, and asset administration, amounted to € 64,868 thousand vs. € 62,877 thousand in 2008, with an increase of 3.2% YoY. Besides current operating expenses, these costs also include amortisation of investments in IT structures and processes aimed at reining in, in future, overheads burdening the HQ and the agency network, whilst also improving services for policyholders as regards insurance cover and claims settlement.

29

The following table shows the breakdown of these costs, with ‘‘Other costs’’ consisting primarily of office operating costs, IT costs, legal and legal-entity costs, mandatory contributions, and association membership fees.


31/12/2009 31/12/2008 Change %

Personnel expenses 34,882 34,093 2.3Other costs 25,105 23,896 5.1Depreciations 4,881 4,888 -0.1

Gross Operating Costs 64,868 62,877 3.2 Overhead costs as a percentage of total direct insurance premiums were 9.7% (vs. 10.0% in 2008); the decrease was reached thanks to a severe cost control. This fact is to be valued in light of the higher costs stemming from the implementation of the five-year plan that calls for development and reinforcement of the in-house organisation set up to support the expected increase in agency and sub-agency sales networks

Human resources

As is spelt out in the Company’s Code of Business Ethics, the Vittoria Assicurazioni safeguards and enhances the value of its human resources, while assuring respect individuals’ moral and professional dignity.

We pursue this objective via:

• Assessment of candidacies based on the match between requirements and the professional

profiles to acquired. The priority for identification of resources is internal recruitment, to aid professional growth. When in-house candidacies consistent with the profile sought cannot be identified, external market recruitment processes are activated to hire particularly qualified people in terms of their academic background and/or professional experience acquired in the sector.

• Commitment to providing training appropriate to the role covered by each person, consistently with the Company’s objectives and strategies. The Vittoria Assicurazioni Group in fact believes that human resources play a key role in the value creation process and, because of this, it pays special attention to planning training and development activities.

• Preference for forms of flexibility in organising work, respecting individual/family and company needs.

• Prevention of all forms of discrimination. • Adoption of a reward system based on assignment of personal or group targets to specific

professional figures Constant commitment to achieving workplaces and units that not only comply with legal safety

standards, to protect the health of those using them, but are also pleasant places in which to be.

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Operating costs – direct business The following table shows the breakdown of operating costs for direct business, calculated gross of commissions and reinsurer profit-sharing.


31/12/2009 31/12/2008 Change %

Operating Costs, net of expenses tansferred to acquisition, claims handling and investment management expenses 43,826 42,463 3.2 - Acquisition and collection costs 100,053 100,957 -0.9 - Other acquisition costs (net of operating expeneses) 8,311 9,291 -10.6

Total Acquisition Costs 108,363 110,248 -1.7

Total Overheads 152,189 152,711 -0.3

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Investments Investments reached a value of € 1,602,266 thousand with an increase of 4.8% YoY.

Their breakdown is shown in the table below:


Investments 31/12/2009 31/12/2008Change

%

Land and buildings 18,872 18,837 0.2Investments in group and other companies- Equity investments 234,104 223,432 4.8- Loans 3,064 3,162 -3.1Other financial investments:- Unit trust units 6,496 6,785 -4.3- Bonds and other fixed-interest securities 1,251,304 1,183,659 5.7- Loans 11,308 12,487 -9.4- Deposits with banks - 10,000 -100.0Deposits with ceding companies 280 404 -30.7

Total investments where the company bears the risk 1,526,466 1,458,766 4.6

Investments benefiting life policyholders bearing the risk 75,800 69,467 9.1

Total investments 1,602,266 1,528,233 4.8

Bank accounts and cash-in-hand 44,779 33,976 31.8

1,286,1941,410,118 1,511,386 1,528,233 1,602,266

2005 2006 2007 2008 2009

INVESTMENTS


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The weight average ordinary return of bonds and other fixed-income securities was 4.1% (4.3% in FY2008).


31/12/09 31/12/08 Change %

Income on investments (net of related costs)

Amount% of

breakdownAmount

% of breakdown

Income on equity investments 5,532 10.7 27,384 33.9 -79.8%Income on other investments:- land and buildings 77 0.1 57 0.1 35.1%- bonds and other fixed-interest securities 46,637 89.9 53,633 66.4 -13.0%- income on unit trust units 63 0.1 96 0.1 -34.4%- interest on loans 575 1.1 731 0.9 -21.3%- interest on deposits with ceding companies -995 -1.9 -1,117 -1.4 -10.9%Total income 51,889 100.0 80,784 100.0 -35.8Adjustments to investment values:- equity investments -495 -19.9 -15,034 84.0- bonds and other fixed-interest securities 2,978 119.9 -2,870 16.0Total adjustments to investment values: 2,483 100.0 -17,904 100.0Profit on sale of investments:- bonds and other fixed-interest securities 15 15.2 128 15.4Total profit on sale of investments 99 100.0 832 100.0

Total income on investments where the company bears the risk 54,471 63,712 -14.5

Net income on investments benefiting life policyholders bearing the risk 14,666 -20,395

Total 69,137 43,317 59.6

The following chart highlights the income earned from capital and financial investments in the last five FYs.

39,658

56,22968,315 63,712

54,471

2005 2006 2007 2008 2009

NET INCOME ON INVESTMENTS (in thousands of euros)

\

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Property assets The book value of real estate at 31 December 2009 was € 18,872 thousand, including € 783 thousand for operating buildings used by the Company, € 13,338 thousand for buildings loaned free of charge to agencies and € 4,751 thousand for buildings used by third parties.

The increase from 31 December 2008 is € 35 thousand and is related to restructuring in property assets. Fixed-income securities, equity investments, and mutual investment funds Investments in the fixed income portfolio consist in fixed-rate Italian government securities totalling € 214,245 thousand. In FY09, after the purchase of the life business of SACE BT SpA, are increased the Eurozone government bonds for € 22,096 thousand of which € 805 thousand classified as investment; the portfolio also increased by € 1,189 thousand for acquisitions from policy redemptions pursuant to Article 41(2) Legislative Decree 209 of 7 September 2005. During the financial year were reclassified investments with a maturity of less than two years from investment portfolio to trading portfolio for € 62,841 thousand and besides fixed-interest rate securities were sold for € 14,241 of which € 13,099 thousand classified as investment, realizing capital loss for € 95 thousand and capital gain for € 90 thousand. During the financial year, were purchased unit funds for € 5,000 thousand, sale unit funds for € 5,172 thousand, with capital gains of € 84 thousand, and obtainted the partial reimbursement of closed-end real estate funds for € 118. During the year, equity holdings held as long-term investments, excluding subsidiaries, associated companies and affiliates, were the following:

- BCC di Signa: further to the merger of the Banca Comprensorio del Cuoio in the BCC di Signa, the Group has been assigned 900 shares in replacement of 100 shares of the merged bank;

- Cam Finanziaria Spa: the parent company exercised the option right and subscribed no. 13,093,299 new shares with related warrants, paying € 3,011 thousand;

- Gpa S.p.A. Group: capitalised shares transfer expenses for € 7 thousand; - Downall Italia Srl: capitalised units transfer expenses for € 1 thousand and recorded an impairment

for € 495 thousand; - Immobiliare Adamello Srl: € 50 thousand were paid to cover losses; - Liguria Srl - in liquidation: the company was cancelled by the trade register; - Mediobanca Spa: further to a bonus capital increase, the parent company received no. 58,350

shares and no.1,167,000 warrants designated to Held for Trading financial assets. Transactions involving subsidiaries, associates and affiliates regarded: - Forum Mondadori Residenze S.r.l.: Vittoria Assicurazioni acquired 100% equity interest of

company, constituted to realize a property in Mantova, from the subsidiaries Vittoria Immobiliare S.p.A. for € 170 thousand.

- Gima Finance S.A.: € 967 thousand were paid as additional paid-in capital; - Immobiliare Bilancia Seconda S.r.l.: € 7,250 thousand collected as reimbursement for

additional paid-in capital; - Laumor Holdings Sarl: € 328 thousand were paid as additional paid-in capital; - Lauro 2000 S.r.l.: € 10,000 thousand paid in, including € 2,500 thousand for capital increase

and € 7,500 thousand as additional paid-in capital; - Vittoria Immobiliare SpA: € 1,745 thousand paid for capital increase; - Vittoria Service S.r.l.: € 840 thousand paid for capital increase; - Yarpa S.p.A.: increased equity interest from 20.91% to 25.36% in three tranche with an

investment of € 478 thousand; subsequently paid € 1,862 thousand for capital increase.

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Pursuant to Article 2428(3, 4), it is certified that Vittoria Assicurazioni S.p.A. did not carry out any transaction in its own name or through trust companies or intermediaries that involved its own shares and those of the company.

Investments benefiting Life policyholders who bear related risk and relating to pension fund management As at 31 December 2009 these investments amounted to € 75,800 thousand with an increase of 9.1% YoY. Of the total € 19.918 thousand related to unit-linked policies linked to funds outside the company, € 32,918 thousand to unit-linked policies linked to the company’s internal funds, € 14,143 thousand to index-linked policies and € 8,821 thousand to the Vittoria Formula Lavoro open-ended pension fund. Overall net return was positive by € 14,666 thousand (€ 20,395 thousand in 2008).

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Investment and financial risk management & analysis policies

Financial risk management The financial risk management system is designed to assure the company’s capital soundness via monitoring of the risks inherent in asset portfolios due to adverse market conditions. In this perspective, specific investment policies have been designed and special procedures adopted.

Investment policies: objectives

A) Life and Non-Life investments with risk borne by the company Investments are managed according to the following objectives: • Assure the company’s capital soundness; • For the Life segment, assure a stable return higher than the technical rate envisaged by

contracts in force; • For the Non-Life segment, assure a stable return in line with the forecasts factored into product

tariffs and positive cash flows; • Distribute the securities portfolio’s duration taking liabilities’ duration into account; • Give preference to continuity of returns rather than to achievement of high returns in limited

periods of time.

As regards Life segregated accounts, the fixed-investment securities portfolio takes treasury cash flows into account, consistently with what is envisaged in the company’s plans, also considering the law of lapse of the portfolio due to natural and voluntary causes. As instead regards the Non-Life business, the investment choices made by the company, in terms of fixed-investment securities, are more than supported by the expectations of surplus liquidity generated by current operations, as factored into the company’s development plans, and as in fact achieved in previous FYs. These expected flows are also able to address scenarios featuring any increase in claims settlement speed. In order to protect investments’ value from exchange-rate fluctuations, the company can use financial derivatives. The company can purchase and retain warrants received as part of capital operations undertaken by the issuers of equities held in the portfolio.

B) Life investments with risks borne by policyholders

Investments benefiting policyholders who bear related risk (index- and unit-linked policies) and those relating to pension-fund management are managed according to the objectives envisaged by relevant policies and by pension funds’ regulations, with the constraint of total transparency vis-à-vis policy holders and in compliance with specific legal regulations. In order to protect investments’ value from exchange-rate fluctuations, the company can use financial derivatives. Warrants in the internal funds linked to unit-linked policies can be bought and sold, if this is expressly envisaged by the fund’s regulation. Structured products to hedge reserves relating to index-policies can be purchased, in compliance with supervisory regulations.

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Procedures

In order to keep its exposure to financial risks under control, the company has equipped itself with a structured system of procedures and activities. These assure regular reporting able to monitor:

The market value of assets and their consequent potential losses vs. carrying value; Macroeconomic and market-variable trends; For bond portfolios, issuers’ rating of the issuers and analysis of sensitivity to interest-rate

risk; Compliance with the investment limits defined by the Board of Directors; Overall exposure to the same issuer.

The company also performs ALM (asset-liability management) analyses the main objective of which, in a medium-term perspective, is to:

Provide joint dynamic projections of cash flows and of other asset and liability features in order to show any income-statement and/or financial mismatching;

Provide an indication – for asset portfolios backing life insurance contracts - of the expected trends in asset portfolios’ rates of returns compared with contractual minimum returns;

Identify the variables (financial, actuarial and commercial) that may have a greater negative impact on results by performing specific stress tests and scenario analyses.

The results of the above activities and reports are regularly reviewed by the Finance Committee. This committee has been set up within the Board of Directors and has been delegated to supervise the securities portfolio’s performance and to define investment strategies within the limits established by the Board in investment policies. Financial risk analysis In this chapter we describe the risks to which the company is exposed in relation to financial markets’ movements. These risks are grouped in the three main categories, i.e. market risk, liquidity risk, and credit risk. The chapter does not discuss investments benefiting policyholders who bear the risk of such investments and investments relating to pension-fund management, because these are strictly connected with related liabilities.

37

Securities portfolio breakdown The following table shows the carrying value of the securities portfolio with risk borne by the company, broken down by investment type (debt securities, equity securities and CIU units). It also provides indicates concerning financial risk exposure and uncertainties of flows.


Investment natureAmount

31/12/2009% of

breakdownAmount

31/12/2008% of

breakdown

DEBT SECURITIES 1,251,304 96.5% 1,183,659 96.4% Listed treasury bonds: 1,174,687 90.5% 1,081,149 88.0% Fixed-interest rate 871,119 67.1% 710,495 57.8% Variable interest rate 303,568 23.4% 370,654 30.2% Unlisted treasury bonds: 2,312 0.2% 2,483 0.2% Fixed-interest rate - 0.0% - 0.0% Variable interest rate 2,312 0.2% 2,483 0.2% Listed corporate bonds: 60,678 4.7% 84,341 6.9% Fixed-interest rate 45,182 3.5% 76,345 6.2% Variable interest rate 15,496 1.2% 7,996 0.7% Unlisted corporate bonds: 217 0.0% 2,739 0.2% Fixed-interest rate 217 0.0% 239 0.0% Variable interest rate - 0.0% 2,500 0.2% Bonds of supranational issuers: 13,410 1.0% 12,947 1.1% Fixed-interest rate 13,410 1.0% 12,947 1.1% Variable interest rate - 0.0% - 0.0%

of which Total fixed-interest securities 929,928 74.3% 800,026 67.6% Total variable-interest securities 321,376 25.7% 383,633 32.4%Total debt securities 1,251,304 100.0% 1,183,659 100.0%of which Total listed securities 1,248,775 99.8% 1,178,437 99.6% Total unlisted securities 2,529 0.2% 5,222 0.4%Total debt securities 1,251,304 100.0% 1,183,659 100.0%EQUITY INSTRUMENTS (*) 39,531 3.0% 38,000 3.0% listed shares 17,751 1.4% 15,778 1.3% unlisted equity instruments 21,780 1.7% 22,222 1.8%

OEIC UNITS 6,496 0.5% 6,785 0.6%TOTAL 1,297,331 100.0% 1,228,444 100.0%

(*) excluding investments in participating interests The fixed-income securities portfolio has a duration of 4 years.

38

The following table summarises investment breakdown based on utilisation (investment and trading).

(in thousands of Euros)

Investment natureAmount

31/12/2009% of

breakdownAmount

31/12/2008% of

breakdownDEBT SECURITIES 1,251,304 96.5% 1,183,659 96.4%FIXED INTEREST RATE SECURITIES 929,928 800,026 of which Investment portfolio 862,665 755,637 of which Trading portfolio 67,263 44,389 VARIABLE INTEREST RATE SECURITIES 321,376 383,633 of which Investment portfolio 55,296 50,517 of which Trading portfolio 266,080 333,116

EQUITY INSTRUMENTS (*) 39,531 3.0% 38,000 3.0%OEIC UNITS 6,496 0.5% 6,785 0.6% of which Investment portfolio 6,430 6,547 of which Trading portfolio 66 238

TOTAL 1,297,331 100.0% 1,228,444 100.0%

(*) excluding investments in participating interests Market risk Market risk consists of interest rate risk, price risk and exchange rate risk. Debt securities are exposed to interest-rate risk. The interest-rate risk on fair value is the risk of a financial instrument’s value varying due to changes in market interest rates. A decrease in interest rates would cause an increase in the fair value of such securities, whereas an increase in rates would decrease their fair value. The interest-rate risk on cash flows relates to possible changes in the coupons of floating-rate securities. The carrying value of fixed-interest debt securities exposed to interest-rate risk on fair value totalled € 929,928 thousand (74.3% of the bond portfolio with investment risk borne by the company), of which € 862,665 thousand classified among investment securities (i.e. for long-lasting utilisation) and € 67,263 thousand among trading securities (for temporary utilisation). The carrying value of floating-rate debt securities exposed to interest-rate risk on cash flows totalled € 321,376 thousand (25,7% of the bond portfolio with investment risk borne by the company), of which € 55,296 thousand classified among investment securities and € 266,080 thousand among trading securities. Life insurance contracts envisage a guaranteed minimum rate of interest and feature a direct link between investments and benefits to be paid to policyholders. This direct link between obligations to policyholders and investments of assets associated with benefits is governed by means of the integrated asset-liability management (ALM) model mentioned earlier. More specifically, the company manages interest-rate risk by matching asset and liability cash flows and by maintaining a balance between liabilities’ duration and that of the securities portfolio directly related to such liabilities. Duration is an indicator of the sensitivity of asset and liability fair value to changes in interest rates.

39

To complete disclosure, the following tables show the carrying value of fixed-rate securities by maturity and the carrying value of floating-rate securities by type of interest rate. Maturity Amount % of breakdown< 1 year 104,234 11.2%1<X<2 50,878 5.5%2<X<3 80,021 8.6%3<X<4 80,986 8.7%4<X<5 78,763 8.5%5<X<10 435,400 46.8%more 99,646 10.7%Total 929,928 100.0% Variable - interest securities (in thousands of euros)

Tipe of rate Indexation Amount % of breakdownConstant mat. Swap Euroswap 10Y 32,489 10.1%Constant mat. Swap Euroswap 30Y 7,995 2.5%variabile 3 months tresury bonds 2,312 0.7%Variable 6 months tresury bonds 266,080 82.8%Variable other 12,500 3.9%Total 321,376 100.0% The contractual rate refixing date for most of these securities is in the first half of the year. Equity securities are exposed to price risk, i.e., the possibility of their fair value varying as a result of changes arising both from factors specific to the individual instrument or issuer and from those affecting all instruments traded on the market As at 31/12/2009, investments in equity securities (excluding equity interests in subsidiaries, affiliates, and associates) amounted to € 39,531 thousand, of which € 17,751 thousand relating to listed stocks and € 21,780 thousand to unlisted stocks. The company is not exposed to foreign exchange risk since, as at 31.12.2009, all investments for which it bears the risk are expressed in euro, observing the principle of consistency with technical reserves. Liquidity risk The company is daily required to execute payments arising from insurance and investment contracts stipulated. The liquidity risk is the risk that available funds may not be sufficient to meet obligations. It is constantly monitored by means of the ALM procedure. This risk may also arise as a result of inability to sell a financial asset fast at an amount close to its fair value. The greater the weight is of financial assets listed in active and regulated markets, the less likely it is that this will happen As at 31/12/2009, as shown in the previous section ‘‘Securities portfolio breakdown’’, financial assets listed in a regulated market accounted for over 95% of financial assets owned.

40

Credit risk In implementing its investment policy, the company limits its exposure to credit risk by investing in highly-rated issuers. As can be seen in the table below, as at 31/12/2009 nearly all corporate bonds held by the group were rated as investment grade.


Rating (Standard & Poor's) Amounts % of breakdownAAA 233,324 18.6%AA+ / AA- 48,465 3.9%A+ / A- 949,519 75.9%BBB+ / BBB- 19,995 1.6%

Total investment grade 1,251,303 100.0%

Non investment grade 1 0.0%Not rated - 0.0%Totale 1,251,304 100.0% ‘‘Victoria Assicurazioni SpA Fixed/Floater 2001/2016 subordinated bond issue convertible into ordinary shares’’ (ISIN: IT0003184758) Below we list the main characteristics of the convertible subordinated bond issue, issuance of which was approved by the Extraordinary Meeting of Shareholders on 26 April 2001. The bonds are fully subscribed: - Total nominal amount of € 18,000,000; residual nominal value of € 4,106,524.80 following

exercise of bond conversion option as up to 31/12/2009; - Originally consisting of 3,750,000 bonds with a nominal value of € 4.80 each, as at 31/12/2009

855,526 bonds remained; - Nominal interest rate:

- Fixed 5.5% until 31 December 2010 - annual coupons; - Variable 6-month Euribor plus a spread of 2.5%, six-monthly coupons as from 1 January

2011; The Board of Directors of Vittoria Assicurazioni S.p.A. on 12 November 2009 resolved the early repayment of the ‘‘Vittoria Assicurazioni --- Fixed/Floater 2001-2016’’ convertible bond. Given this, as allowed by Article 9.2 of the loan’s Regulation, on 1 January 2011 the Company will repay all bonds outstanding on that date. On 5 February ISVAP approved the early repayment. As an alternative to repayment, bondholders will be given the option of exercising the bonds’ conversion right. The repayment to the bondholders who will not exercise their conversion right will take place at par, including the interest accrued (5.50% gross of withholding tax). The bonds constitute subordinated liabilities calculated for the purposes of coverage of the issuer’s solvency margin pursuant to Articles 44 and 45 of Italian Legislative Decree no. 209 of 7 September 2005.

Personal data protection code (pursuant to Annex B, point 26, of Italian Legislative Decree no. 196 of 30 June 2003) Vittoria Assicurazioni SpA issued on 31 March 2010 an updated version of its Personal Data Security Policy, originally drawn up on 30 June 2003, within the deadline required by current regulations.

41

Information concerning adherence to codes of conduct (pursuant to Article 123/2 of T.U.F. and pursuant to Article 89/2 of CONSOB resolution no. 11971 of 14/5/1999 as subsequently amended and supplemented) The annual report on adherence of codes of conduct and on observance of consequent commits established by article 123/2 of T.U.F. has been prepared according to the format published by Borsa Italiana SpA on February 2010. The document can be consulted on the company’s website in the section “Governance” at the following address: www.vittoriaassicurazioni.com

Shares of Vittoria Assicurazioni S.p.A. and its subsidiaries held by directors, statutory auditors and strategically accountable managers as at 31 December 2009 (pursuant to Article 79 of CONSOB resolution no. 11971 of 14 May 1999 and subsequent amendments and additions)

Name Company heldNumber of

shares held at the end of 2008

Number of shares

purchased or subscribed

Number of shares sold

Number of shares held at

the end of 2009

Costa Giorgio Directly 37,398 - - 37,398

Acutis Carlo Through Subsidiary Company 39,217,648 - 689,288 38,528,360

Acutis Andrea Directly 64,822 - - 64,822

Guarena Roberto Directly / Through family 20,000 6,950 - 26,950

Acutis Biscaretti di Ruffia Adriana Directly 64,750 - - 64,750

Baggi Sisini Francesco Through Subsidiary Company 3,719,170 - - 3,719,170

Marsani Pietro Carlo Directly 2,000 2,000 - 4,000

Marsiaj Giorgio Directly - 344,644 - 344,644

Paveri Fontana Luca Directly 62,000 - - 62,000

84,934 4,000 - 88,934

Vittoria Assicurazioni S.p.A.

Directors with strategic responsabilities

42

Disclosure of existence of groups, pursuant to Article 2497/2 of Italian Civil Code Vittoria Assicurazioni SpA – in the insurance group regulated by Articles 82 et seq. of Italian Legislative Decree no. 209 of 7 September 2005 and by ISVAP (Italian insurance regulator) Regulation no. 15 of 20 February 2008 – holds the role of Group Company and performs activities of direction and co-ordination of the following companies: Real estate companies Service companies

Vittoria Immobiliare SpA – Milan Interbilancia Srl - Milan Lauro 2000 Srl – Milan Vittoria Service Srl - Milan Acacia 2000 Srl – Milan A.Spe.Vi. Srl - Milan Immobiliare Bilancia Srl – Milan Vittoria.net Srl - Milan Immobiliare Bilancia Prima Srl - Milan Immobiliare Bilancia Seconda Srl - Milan Immobiliare Bilancia Terza Srl - Milan V.R.G. Domus Srl – Turin Vittoria Properties Srl – Milan Valsalaria Srl – Rome Forum Mondadori Residenze Srl – Milan Vaimm Sviluppo Srl – Milan Cadorna Real Estate Srl – Milan Interimmobili Srl - Rome Gestimmobili Srl - Milan

Infragroup and related-party transactions

At its meeting on 22 March 2007, the Board of Directors approved a resolution regarding guidelines applicable to transactions with related parties.

At its meeting on 19 February 2009, the Board of Directors approved the document entitled “Guidelines for Significant Transactions with Group Companies and Related Parties” pursuant both to Article 6 of ISVAP Regulation 25 of 27 May 2008 and the previous rules set out in IAS 24, to which reference is also made in CONSOB regulations. The Board of Directors updated the document at its meeting on 30 July 2009. The new guidelines are included in the annual Corporate Governance Report.

The new guidelines was been applied in FY 2009. This section sets out the financial and business transactions carried out during the year with Group companies. Information about the companies and additional information are provided in the Explanatory Notes, Part C – Other Information and in the Consolidated Annual Report & Accounts.

Transactions and relationships with companies The Group has no financial or commercial relationships with the direct company Vittoria Capital N.V. and the indirect companies Yafa Holding B.V., The Netherlands, and Yafa S.p.A. The companies do not engage in management and coordination of the Group, insofar as they merely serve as holding companies.

43

Transactions with subsidiaries Vittoria Immobiliare S.p.A. – Milan (87.24% interest)

Vittoria Immobiliare paid the Company a dividend of € 1,774 thousand. In order to increase its share capital from € 20,000 thousand to € 22,000 thousand and consequently strengthen its balance sheet, Vittoria Immobiliare floated a rights offering. The Company paid in its own contribution of € 1,745 thousand, leaving its equity interest unchanged. In addition to owning 50% of Rovimmobiliare S.r.l. (Rome), 49.5% of SIVIM S.r.l. (Milan), 30% of Vittoria Service S.r.l (Milan), 25% of Mosaico S.p.A. (Turin), 25% of Pama & Partners S.r.l (Genoa), 40% of VP Sviluppo 2015 S.r.l. (Milan), 49% of VZ Real Estate S.r.l. (Turin), 40% of Fiori di San Bovio S.r.l. (Milan) and 20% of Interbilancia S.r.l. (Milan), Vittoria Immobiliare S.p.A. has a controlling stake in the following equity investments:

Acacia 2000 Srl Milan 65% stake Gestimmobili Srl Milan 80% stake Interimmobili Srl Rome 80% stake VRG Domus Srl Turin 51% stake Valsalaria S.r.l. Rome 51% stake Cadorna Real Estate Srl Milan 70% stake Vaimm Sviluppo Srl Milan 100% stake

The Company’s relationships with the aforementioned companies involved delegation of management of its property holdings, logistic and property management, agencies and Claims Settlement Inspectorates, and in the preparation of appraisals to obtain mortgage loans, for which fees of € 250 thousand plus VAT were paid. Vittoria Assicurazioni granted its subsidiary a loan for € 264 thousand. Vittoria immobiliare’s net receivable from Vittoria Assicurazioni under the tax consolidation programme totalled € 724 thousand. Since FY 2008, Acacia 2000 S.r.l. has been included in the scope of the tax consolidation programme, and its net receivable from Vittoria Assicurazioni, together with the subsidiaries of Vittoria Immobiliare, Gestimmobili S.r.l. and Interimmobili S.r.l. totalled € 481 thousand. Vittoria Assicurazioni billed the aforementioned companies € 329 thousand for the services provided to them in FY 2009. The consolidated financial statements provide more details on the activity of Group companies. Immobiliare Bilancia S.r.l. – Milan (100% direct equity interest)

On 30 March 2009 Jannozzi S.r.l. was merged into its parent company Immobiliare Bilancia S.r.l.. As the taking-over company held the whole share capital of the merged company, the share representing the entire share capital of the Jannozzi S.r.l. was cancelled without any share capital increase of Immobiliare Bilancia S.r.l.. Immobiliare Bilancia paid the Company a dividend of € 2,772 thousand.

Vittoria Assicurazioni billed the subsidiary € 17 thousand for the services provided to it in FY 2009. The net receivable of Vittoria Assicurazioni for the tax consolidation programme is € 32 thousand.

Immobiliare Bilancia Prima S.r.l. – Milan (100% direct equity interest)

Vittoria Assicurazioni billed the subsidiary € 8 thousand for the services provided to it in FY 2009. The net receivable of Vittoria Assicurazioni for the tax consolidation programme is € 8 thousand.

Immobiliare Bilancia Seconda S.r.l. – Milan (100% direct equity interest)

On 26 November 2009 the Quotaholders’ Meeting of Immobiliare Seconda Srl resolved the reimbursement to the parent company of € 7,250 thousand as part of additional paid-in capital and of € 852 as profit brought forward reserve, totalling € 8,102 thousand. Vittoria Assicurazioni billed the subsidiary € 6 thousand for the services provided to it in FY 2009. The net payable to Vittoria Assicurazioni for the tax consolidation programme is € 49 thousand.

44

Immobiliare Bilancia Terza S.r.l. – Milan (100% direct equity interest)

The company is currently not operative. The net receivable from Vittoria Assicurazioni for the tax consolidation programme is € 4 thousand. Lauro 2000 S.r.l. – Milan (100% direct equity interest) On 6 July 2009 the Extraordinary Quotaholders’ Meeting of Lauro 2000 S.r.l. resolved the capital increase envisaging a total investment by Vittoria Assicurazioni of € 20,000 thousand, of which € 5,000 for capital and € 15,000 for the premium reserve, to be executed by 30 June 2010. In parallel with the resolution and subsequently, Vittoria Assicurazioni subscribed a first tranche of the capital increase decided by the subsidiary, paying in € 10,000 thousand, of which € 2,500 thousand for capital and € 7,500 thousand for the premium reserve. The net receivable from Vittoria Assicurazioni totalled € 980 thousand. Vittoria Assicurazioni billed the subsidiary € 52 thousand for the services provided to it in FY 2009.

Forum Mondadori Residenze S.r.l.- Milan (100% direct equity interest)

On 18 March 2009, Vittoria Immobiliare S.p.A. acquired a 30% equity interest in the company Forum Mondadori Residenze S.r.l., becoming its sole partner as it already held a 70% share. Successively, on 26 November 2009, Vittoria Immobiliare S.p.A. ceded to the parent company the 100% of the subsidiary, that is currently not operative. The net receivable of Vittoria Assicurazioni for the tax consolidation programme is € 15 thousand.

Interbilancia S.r.l. – Milan (80% direct equity interest)

Interbilancia holds the following equity investments: A.Spe.Vi S.r.l. Milan 100% equity interest Vittoria.Net S.r.l. Milan 100% equity interest Le Api S.r.l. Milan 30% equity interest

Vittoria Assicurazioni held a direct equity interest of 0.98% and of 38.80% through Vittoria.Net S.r.l. in Consorzio Movincom S.c.r.l., a company dedicated to the development of payment systems using the mobile phone.

Vittoria Assicurazioni granted its subsidiary a loan for € 300 thousand in FY 2008.

The Group's Interbilancia companies provided your company with services for € 925 thousand + VAT for its brokerage activity, and received commissions and contributions for € 2,064 thousand. Vittoria Assicurazioni billed the subsidiary € 29 thousand for the services provided to it in FY 2009.

The net receivable from Vittoria Assicurazioni totalled € 57 thousand.

Vittoria Properties S.r.l. – Milan (99% direct equity interest)

During the financial year Vittoria Properties S.r.l. was paid € 90 thousand in rent and expense reimbursements on property leases. Vittoria Assicurazioni billed the subsidiary € 5 thousand for the services provided to it in FY 2009.

Vittoria Service S.r.l. – Milan (70% direct equity interest)

Vittoria Assicurazioni and Vittoria Immobiliare S.p.A. paid the subsidiary Vittoria Service S.r.l. € 1,200 thousand against a future capital increase, each proportionally to its interest owned.

Vittoria Assicurazioni billed the subsidiary € 10 thousand for the services provided to it in FY 2009.

Transactions with associate companies and joint ventures Yam Invest N.V. – The Netherlands (18,75% direct equity interest)

White Finance S.A. – Luxembourg (32.17% direct equity interest)

No commercial or supply relationships were maintained during the perio

Laumor Holdings S.a.r.l. – Luxembourg (29% direct equity interest)

During the financial year, the Company paid the associate € 329 thousand for the increase in additional paid-in capital. No commercial or supply relationships were maintained during the period.

45

Gima Finance S.A. – Luxembourg (32.13% direct equity interest)

A total of € 967 thousand was paid to the associate by Vittoria Assicurazoini towards an increase in additional paid-in capital.

S.In.T. S.p.A. – Turin (48.19% direct equity interest)

The services of S.In.T. S.p.A. were used in FY 2009 for other commercial agreements made by the company, for an aggregate cost of € 669 thousand plus VAT. Yarpa S.p.A. – Genoa (25.90% direct equity interest)

No commercial or supply relationships were maintained during the period. Yarpa S.p.A. paid the Company a dividend of € 62 thousand.

Touring Vacanze S.r.l. – Milan (24% direct equity investment)

No commercial or supply relationships were maintained with the associate during the period, and its equity interest remained unchanged at 24.0%. The associate paid the Company a dividend of € 49 thousand. Le Api S.r.l. - Milano 30.00% equity interest through Interbilancia S.r.l. The associate provided the parent company with services for € 1,323 thousand plus VAT.

Consorzio Movincom S.c.r.l. – Italy (0.98% direct equity investment and 38.8% equity interest through Vittoria.Net S.r.l.)

The associate is a company dedicated to the development of payment systems using the mobile phone. The associate billed costs for € 17 thousand + VAT in FY 2009.

As recommended by the CONSOB in its memorandum no. 98015375 of 27 February 1998 and its subsequent memorandum no. 6064293 of 28/07/2006, we certify that the transactions carried out with Group companies referred to the normal course of business with use of specific professional services at market rates and did not include any unusual transactions.

46

Performance in early months of FY2010 and business outlook On 15 January 2010, the Board of Directors of Lauro 2000 S.r.l. decided to call in part of the capital increase resolved by the Shareholders’ Meeting on 16 July 2009. The parent Company Vittoria Assicurazioni S.p.A. thus paid in € 5,000 thousand, of which € 1,250 thousand for share capital and € 3,750 thousand for the share premium reserve.

47

Allocation of earnings Shareholders, At the end of the Directors’ Report, and considering the contents of the year-end financial statements and accounts, we submit the following allocation of the year’s earnings as follows: Net profit of Non-Life Business € 16,453,801 Net profit of Life Business € 7,835,757

Total (equal to € 0.369 per share) € 24,289,558 Allocation to Non-Life Business Legal Reserve € 822,690 Allocation to Life Business Legal Reserve € 391,788

Total available net profit € 23,075,080 of which: Available net profit of Non-Life Business € 15,631,111 Available net profit of Life Business € 7,443,969

Shareholders,

the operating plans that have been prepared lead us to make the following motion for allocation of net profit:

- To each of the 65,788,948 shares comprising the entire share capital, € 0,17 for a total of € 11,184,121

- for Non-Life Business € 6,540,472 - for Life Business € 4,643,649

Remainder € 11,890,959 which we propose that you allocate € 9,090,639 thousand to increasing the Available Reserve for Non-Life Business and € 2,800,320 thousand to increasing the Available Reserve Life Business.

If you agree with and approve our proposal, the dividend will be paid as from 13 May 2010 c/o custodian intermediaries with detachment of coupon no. 28 on 10 May 2010.

In view of the fact that, pursuant to the Articles of Association, the mandate of the entire Board of Directors now expires, we ask that you proceed with election of Board members, after having fixed their number, and decide their emoluments.

We also ask you, pursuant to the Articles of Association, to appoint members of the Board of Statutory Auditors, due to expiry of the latter’s mandate, and to establish related emoluments.

In concluding this report, we wish to thank shareholders and policyholders for the trust placed in the company, as well as employees, agents and their staff for their hard work and effort.

The Board of Directors

Milan, 9 March 2010

48

Financial statementsas at and for the year ended

31 December 2009

49

BALANCE SHEETASSETS

Current year

A. SHARE CAPITAL PROCEEDS TO BE RECEIVED 1 0

of which: called-up 2 0

B. INTANGIBLE ASSETS

1. Acquisition commissions to be amortised

a) life businesses 3 2,767,805

b) non-life businesses 4 4,386,480 5 7,154,285

2. Other acquisition costs 6 0

3. Start-up and capital costs 7 13,066

4. Goodwill 8 3,162,659

5. Other deferred costs 9 28,604,253 10 38,934,261

C. INVESTMENTS

I - Land and buildings

1. Operating buildings 11 783,000

2. Buildings used by third parties 12 18,088,776

3. Other buildings 13 0

4. Other property rights 14 0

5. Assets under construction and payments on account 15 0 16 18,871,776

II - Investments in group and other companies:

1. Equity investments in:

a) parent companies 17 0

b) subsidiaries 18 157,115,979

c) related companies 19 0

d) associated companies 20 37,457,103

e) other companies 21 39,530,780 22 234,103,862

2. Bonds issued by:


b) subsidiaries 24 0


d) associated companies 26 0

e) other companies 27 0 28 0

3. Loans to:


b) subsidiaries 30 563,892


d) associated companies 32 0

e) other companies 33 2,500,001 34 3,063,893 35 237,167,755

to carry forward 38,934,261

50

Previous year

181 0

182 0

183 2,753,145

184 5,414,919 185 8,168,064

186 0

187 26,475

188 0

189 21,476,094 190 29,670,633

191 783,000

192 18,053,900

193 0

194 0

195 0 196 18,836,900

197 0

198 151,610,979

199 0

200 33,821,235

201 37,999,670 202 223,431,884

203 0

204 0

205 0

206 0

207 0 208 0

209 0

210 661,498

211 0

212 0

213 2,500,001 214 3,161,499 215 226,593,383


51

BALANCE SHEETASSETS

Current year

brought forward 38,934,261

C. INVESTMENTS (continues)

III - Other financial investments:

1. Equity investments

a) Listed shares 36 0

b) Unlisted shares 37 0

c) Quotas 38 0 39 0

2. Unit trust units 40 6,495,544

3. Bonds and other fixed-interest securities

a) listed 41 1,247,205,714

b) unlisted 42 4,098,516

c ) convertible bonds 43 0 44 1,251,304,230

4. Loans

a) secured loans 45 3,046,168

b) loans on policies 46 3,773,446

c) other loans 47 4,488,496 48 11,308,110

5. Shares in investment pools 49 0

6. Deposits with banks 50 0

7. Other financial investments 51 1,038,335 52 1,270,146,219

IV - Deposits with ceding companies 53 280,155 54 1,526,465,905

D. INVESTMENTS BENEFITING LIFE POLICYHOLDERS BEARING THE RISK AND STEMMING FROM PENSION FUND MANAGEMENT

I - Investments relating to index-linked policies 55 66,978,557

II - Investments relating to pension fund management 56 8,821,216 57 75,799,773

D bis. REINSURERS' SHARE OF TECHNICAL RESERVES

I - NON-LIFE BUSINESSES

1. Premium reserve 58 9,658,088

2. Claims reserve 59 44,274,350

3. Profit participation and reimbursement reserve 60 0

4. Other technical reserves 61 0 62 53,932,438

II - LIFE BUSINESSES

1. Mathematical reserves 63 19,926,354

2. Complementary insurance premium reserve 64 0

3. Reserve for payable amounts 65 372,901


5. Other technical reserves 67 22,500

6. Technical reserves where investment risk is borne by policyholders and reserves relating to pension fund management 68 0 69 20,321,755 70 74,254,193

to carry forward 1,715,454,133

52

Previous year


216 0

217 0

218 0 219 0

220 6,785,201

221 1,176,897,344

222 6,761,505

223 0 224 1,183,658,849

225 3,341,444

226 3,594,397

227 5,551,225 228 12,487,066

229 0

230 10,000,000

231 0 232 1,212,931,116

233 404,384 234 1,458,765,783

235 63,892,598

236 5,574,331 237 69,466,929

238 9,507,444

239 37,753,722

240 0

241 0 242 47,261,166

243 18,841,454

244 0

245 0

246 0

247 23,350

248 0 249 18,864,804 250 66,125,970


53

BALANCE SHEETASSETS

Current year

brought forward 1,715,454,133

E. RECEIVABLES

I - Receivables relating to direct insurance due from:

1. Policyholders

a) premiums for the year 71 45,088,964

b) premiums for previous years 72 6,385,285 73 51,474,249

2. Insurance brokers and agents 74 54,035,830

3. Current account companies 75 10,846,331

4. Amounts to be recovered from policyholders and third parties 76 36,031,119 77 152,387,528

II - Receivables relating to reinsurance due from:

1. Insurance and reinsurance companies 78 5,303,253

2. Reinsurance brokers and agents 79 0 80 5,303,253

III. - Other receivables 81 28,655,970 82 186,346,752

F. OTHER ASSETS

I - Tangible assets and inventory:

1. Office furniture and machines and internal transport systems 83 2,870,876

2. Registered chattel property 84 12,300

3. Plant and machinery 85 125,534

4. Inventory and other assets 86 0 87 3,008,710

II - Liquid funds

1. Bank and postal accounts 88 44,769,125

2. Cheques on hand and cash-in-hand 89 9,725 90 44,778,851

III - Own shares or quotas 91 0

IV - Other assets

1. Suspense reinsurance accounts 92 0

2. Sundry assets 93 16,158,983 94 16,158,983 95 63,946,544

G. PREPAYMENTS AND ACCRUED INCOME

1. Interest 96 16,567,182

2. Rent instalments 97 182,257

3. Other prepayments and accrued income 98 1,605,959 99 18,355,398

TOTAL ASSETS 100 1,984,102,826

54

Previous year


251 44,911,328

252 3,557,909 253 48,469,237

254 56,934,723

255 12,330,655

256 28,895,477 257 146,630,092

258 6,230,396

259 0 260 6,230,396

261 19,896,825 262 172,757,313

263 3,014,194

264 376

265 197,261

266 0 267 3,211,831

268 33,869,592

269 106,212 270 33,975,804

271 0

272 0

273 14,076,819 274 14,076,819 275 51,264,454

276 18,810,223

277 196,721

278 1,776,718 279 20,783,662

280 1,868,834,744

55

BALANCE SHEETLIABILITIES AND SHAREHOLDERS' EQUITY

Current year

A. SHAREHOLDERS' EQUITY

I - Subscribed share capital or equivalent fund 101 65,788,948

II - Share premium reserve 102 31,129,451

III - Revaluation reserves 103 10,938,990

IV - Legal reserve 104 8,430,189

V - Statutory reserves 105 0

VI - Reserves for purchase of own shares and shares of parent company 106 0

VII - Other reserves 107 132,315,966

VIII - Retained earnings or losses carried forward 108 0

IX - Net profit (loss) for the year 109 24,289,558 110 272,893,102

B. SUBORDINATED LIABILITIES 111 4,106,525

C. TECHNICAL RESERVES


1. Premium reserve 112 230,007,120

2. Claims reserve 113 549,508,324


4. Other technical reserves 115 3,773,527

5. Equalisation reserves 116 3,031,328 117 786,320,300


1. Mathematical reserves 118 721,900,276

2. Complementary insurance premium reserve 119 156,359

3. Reserve for payable amounts 120 23,304,393

4. Profit participation and reimbursement reserve 121 28,531

5. Other technical reserves 122 12,068,568 123 757,458,128 124 1,543,778,428

D. TECHNICAL RESERVES WHERE THE INVESTMENT RISK IS BORNE BY POLICYHOLDERS AND RESERVES ARISING FROM PENSION FUND MANAGEMENT

I - Reserves arising from index-linked policies 125 66,978,557

II - Reserves arising from pension fund management 126 8,821,216 127 75,799,773


56

Previous year

281 65,766,210

282 31,097,618

283 10,887,143

284 6,533,218

285 0

286 0

287 107,453,767

288 0

289 37,939,426 290 259,677,382

291 4,161,096

292 216,215,776

293 510,435,163

294 0

295 3,773,527

296 2,720,126 297 733,144,592

298 674,168,012

299 167,373

300 22,180,234

301 24,395

302 11,352,864 303 707,892,878 304 1,441,037,470

305 63,892,598

306 5,574,331 307 69,466,929


57


Current year


E. PROVISIONS FOR CONTINGENCIES AND OTHER CHARGES

1 Pension and similar provisions 128 0

2 Provision for taxation 129 521,835

3 Other provisions 130 741,337 131 1,263,172

F. DEPOSITS FROM REINSURERS 132 23,553,806

G. PAYABLES AND OTHER LIABILITIES

I - Payables arising from direct insurance business due to:

1. Insurance brokers and agents 133 3,651,136

2. Current account companies 134 2,496,031

3. Guarantee deposits and premiums paid by policyholders 135 199,098

4. Guarantee funds in favour of policyholders 136 751,572 137 7,097,837

II - Payables arising from reinsurance business due to:

1. Insurance and reinsurance companies 138 7,450,643

2. Reinsurance brokers and agents 139 0 140 7,450,643

III. - Bond issues 141 0

IV - Due to banks and other financial institutions 142 0

V - Secured debts 143 0

VI - Sundry loans and other financial payables 144 0

VII - Employees' leaving entitlement 145 4,392,349

VIII - Other sums payable

1. Policyholders' tax due 146 11,902,735

2. Other sums payable to taxation authorities 147 1,560,901

3. Social security charges payable 148 2,016,478

4. Sundry payables 149 14,845,469 150 30,325,583

IX - Other liabilities

1. Suspense reinsurance accounts 151 0

2. Commissions on premiums under collection 152 11,294,299

3. Other liabilities 153 1,889,662 154 13,183,962 155 62,450,374


58

Previous year


308 0

309 623,682

310 741,337 311 1,365,019

312 28,258,319

313 5,016,633

314 2,439,042

315 224,467

316 545,626 317 8,225,768

318 8,233,145

319 0 320 8,233,145

321 0

322 0

323 0

324 0

325 4,650,375

326 10,158,865

327 1,257,859

328 1,932,934

329 14,653,043 330 28,002,701

331 0

332 10,852,386

333 4,627,374 334 15,479,760 335 64,591,749


59


Current year


H. ACCRUED EXPENSES AND DEFERRED INCOME

1. Interest 156 225,859

2. Rent instalments 157 0

3. Other accrued expenses and deferred income 158 31,787 159 257,646

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 160 1,984,102,826

BALANCE SHEETGUARANTEES, COMMITMENTS AND OTHER MEMORANDUM AND CONTINGENCY ACCOUNTS

Current year

GUARANTEES, COMMITMENTS AND OTHER MEMORANDUM AND CONTINGENCY ACCOUNTS

I - Guarantees given

1. Sureties 161 0

2. Endorsements 162 0

3. Other personal guarantees 163 20,500,000

4. Collateral 164 0

II - Guarantees received

1. Sureties 165 6,363,373

2. Endorsements 166 0

3. Other personal guarantees 167 0

4. Collateral 168 1,250,000

III - Guarantees given by third parties in the interest of the company 169 0

IV - Commitments 170 17,309,736

V - Third party assets 171 3,893,291

VI - Assets pertaining to pension funds managed in favour and on behalf of third parties 172 8,821,216

VII - Securities held by third parties 173 1,324,483,330

VIII - Other memorandum and contingency accounts 174 0

60

Previous year


336 228,860

337 0

338 47,920 339 276,780

340 1,868,834,744

Previous year

341 0

342 0

343 20,500,000

344 0

345 6,218,000

346 0

347 0

348 250,000

349 0

350 18,604,814

351 3,888,660

352 5,574,331

353 1,250,477,089

354 0

61

PROFIT AND LOSS ACCOUNTCurrent year

I. NON-LIFE BUSINESS TECHNICAL ACCOUNT

1 PREMIUMS, NET OF OUTWARDS REINSURANCE

a) gross premiums accounted for 1 542,012,660

b) (-) outwards reinsurance premiums 2 30,443,169

c) Change in gross premium reserve 3 13,920,676

d) Change in reinsurer premium reserve 4 260,818 5 497,909,633

2 (+) INCOME ON INVESTMENTS TRANSFERRED FROM NON-TECHNICAL ACCOUNT (Caption III.6) 6 17,118,406

3 OTHER TECHNICAL INCOME, NET OF OUTWARDS REINSURANCE 7 4,435,154

4 CHARGES RELATING TO CLAIMS, NET OF RECOVERIES AND OUTWARDS REINSURANCE

a) Amounts paid

aa) Gross amount paid 8 371,727,863

bb) (-) reinsurers' share 9 23,200,334 10 348,527,528

b) Change in recoveries, net of reinsurers' share

aa) Gross amount recovered 11 13,230,837


c) Change in claims reserve

aa) Gross amount 14 39,112,116

bb) (-) reinsurers' share 15 10,885,968 16 28,226,148 17 365,425,461

5 CHANGE IN OTHER TECHNICAL RESERVES, NET OF OUTWARDS REINSURANCE 18

6 REVERSALS AND PROFIT PARTICIPATION, NET OF OUTWARDS REINSURANCE 19

7 OPERATING COSTS:

a) Acquisition commissions 20 82,952,112

b) Other acquisition costs 21 26,583,836

c) Change in commissions and other acquisition costs

to be amortised 22 -1,028,440

d) Premium collection commissions 23 7,150,223

e) Other administrative costs 24 16,739,918

f) (-) Profit participation and other commissions received by reinsurers 25 7,924,033 26 126,530,495

8 OTHER TECHNICAL CHARGES, NET OF OUTWARDS REINSURANCE 27 4,030,985

9 CHANGE IN EQUALISATION RESERVES 28 311,202

10 RESULT OF NON-LIFE BUSINESS TECHNICAL ACCOUNT (Caption III. 1) 29 23,165,049

62

Previous year

111 516,207,300

112 30,535,159

113 14,387,288

114 -424,096 115 470,860,757

116 30,261,868

117 3,680,800

118 359,973,100

119 35,372,819 120 324,600,281

121 6,183,539

122 -334,910 123 6,518,449

124 5,577,079

125 -15,987,322 126 21,564,401 127 339,646,233

128 481,281

129

130 80,067,778

131 29,355,845

132 -1,263,587

133 7,055,320

134 14,512,224

135 8,580,751 136 123,674,003

137 2,813,050

138 287,276

139 37,901,582

63


II. LIFE BUSINESS TECHNICAL ACCOUNT

1 PREMIUMS, NET OF OUTWARDS REINSURANCE:

a) Gross premiums accounted for 30 129,293,956

b) (-) outwards reinsurance premiums 31 2,213,257 32 127,080,700

2 INCOME ON INVESTMENTS:

a) Income on equity investments 33 3,935,127

(of which: from group companies 34 3,935,127 )

b) Income on other investments:

aa) land and buildings 35

bb) other investments 36 30,763,033 37 30,763,033

(of which: from group companies 38 58,148 )

c) Adjustments to investment values 39 660,549

d) Profit on sale of investments 40 123,056

(of which: from group companies 41 ) 42 35,481,765

3 INCOME AND NON-REALISED CAPITAL GAINS RELATING TO INVESTMENTS BENEFITTING POLICYHOLDERS

BEARING THE RISK AND INVESTMENTS STEMMING FROM PENSION FUND MANAGEMENT 43 16,850,054

4 OTHER TECHNICAL INCOME, NET OF OUTWARDS REINSURANCE 44 670,952

5 CHARGES RELATING TO CLAIMS, NET OF OUTWARDS REINSURANCE:

a) Amounts paid

aa) Gross amount paid 45 115,934,364

bb) (-) reinsurers' share 46 878,103 47 115,056,261

b) Change in reserve for amounts payable

aa) Gross amount 48 -197,346

bb) (-) reinsurers' share 49 122,800 50 -320,146 51 114,736,115

6 CHANGE IN MATHEMATICAL RESERVES AND OTHER TECHNICAL RESERVES,

NET OF OUTWARDS REINSURANCE

a) Mathematical reserves:



b) Complementary insurance premium reserve:

aa) Gross amount 55 -17,713

bb) (-) reinsurers' share 56 57 -17,713

c) Other technical reserves

aa) Gross amount 58 420,163

bb) (-) reinsurers' share 59 -850 60 421,014

d) Technical reserves where investment risk is borne

by policyholders and reserves arising from pension fund management


bb) (-) reinsurers' share 62 63 6,332,845 64 32,294,290

64

Previous year

140 114,510,532

141 2,262,711 142 112,247,821

143 2,411,624


145

146 34,048,506 147 34,048,506

(of which: from group companies 148 )

149 133,505

150 354,648


153 3,550,591

154 710,913

155 143,653,787

156 911,719 157 142,742,068

158 -8,561,173

159 -20,658 160 -8,540,515 161 134,201,553

162 -17,588,176

163 885,640 164 -18,473,816

165 -13,432

166 167 -13,432

168 812,343

169 -1,155 170 813,498

171 -25,865,712

172 173 -25,865,712 174 -43,539,462

65


7 REVERSALS AND PROFIT PARTICIPATION, NET OF OUTWARDS REINSURANCE 65 12,744

8 OPERATING COSTS:

a) Acquisition commissions 66 7,431,048

b) Other acquisition costs 67 5,209,865

c) Change in commissions and other acquisition costs

to be amortised 68 -261,245

d) Premium collection commissions 69 1,315,707

e) Other administrative costs 70 3,602,277

f) (-) Profit participation and other commissions received by reinsurers 71 416,669 72 17,403,473

9 CAPITAL AND FINANCIAL CHARGES:

a) Investment management charges and interest payable 73 2,407,192

b) Adjustments to investment values 74

c) Loss on sale of investments 75 42,468 76 2,449,660

10 CAPITAL AND FINANCIAL CHARGES AND NON-REALISED CAPITAL LOSSES RELATING TO INVESTMENTS BENEFITTING POLICYHOLDERS WHO BEAR THE RISK AND INVESTMENTS STEMMING FROMPENSION FUND MANAGEMENT 77 2,183,894

11 OTHER TECHNICAL CHARGES, NET OF OUTWARDS REINSURANCE 78 305,648

12 (-) INCOME ON INVESTMENTS TRANSFERRED TO NON-TECHNICAL ACCOUNT (caption III.4) 79 3,767,642

13 RESULT OF LIFE BUSINESS TECHNICAL ACCOUNT (Caption III. 2) 80 6,930,004

III. NON-TECHNICAL ACCOUNT

1 RESULT OF NON-LIFE BUSINESS TECHNICAL ACCOUNT (Caption I.10) 81 23,165,049

2 RESULT OF LIFE BUSINESS TECHNICAL ACCOUNT (Caption II.13) 82 6,930,004

3 INCOME ON INVESTMENTS IN NON-LIFE BUSINESS:

a) Income on equity investments 83 1,712,855


b) Income on other investments:

aa) land and buildings 85 202,443

bb) other investments 86 19,442,980 87 19,645,424

(of which: from group companies 88 )

c) Adjustments to investment values 89 2,317,093

d) Profit on sale of investments 90 104,616


66

Previous year

175 11,866

176 10,462,797

177 4,865,297

178 -740,545

179 1,431,022

180 3,021,319

181 421,573 182 20,099,407

183 2,296,565

184 8,011,641

185 223,088 186 10,531,294

187 23,945,111

188 201,663

189

190 8,006,176

191 37,901,582

192 8,006,176

193 25,111,285


195 199,790

196 23,019,092 197 23,218,882

(of which: from group companies 198 130,587 )

199 71,888

200 703,636


67


4 (+) INCOME ON INVESTMENTS TRANSFERRED FROM LIFE BUSINESS TECHNICAL ACCOUNT (caption II) 12) 93 3,767,642

5 CAPITAL AND FINANCIAL CHARGES OF NON-LIFE BUSINESS:

a) Investment management charges and interest payable 94 1,759,082

b) Adjustments to investment values 95 494,947

c) Loss on sale of investments 96 86,948 97 2,340,977

6 (+) INCOME ON INVESTMENTS TRANSFERRED TO NON-LIFE BUSINESS TECHNICAL ACCOUNT (caption I . 2) 98 17,118,406

7 OTHER INCOME 99 2,943,971

8 OTHER CHARGES 100 6,627,423

9 RESULT OF ORDINARY BUSINESS 101 34,499,847

10 EXTRAORDINARY INCOME 102 709,184

11 EXTRAORDINARY EXPENSE 103 149,338

12 RESULT OF EXTRAORDINARY ORDINARY BUSINESS 104 559,846

13 PROFIT (LOSS) BEFORE TAXATION 105 35,059,693

14 TAXATION ON PROFIT FOR THE YEAR 106 10,770,135

15 NET PROFIT (LOSS) FOR THE YEAR 107 24,289,558

68

Previous year

203

204 1,708,910

205 10,097,552

206 3,820 207 11,810,282

208 30,261,868

209 3,825,594

210 4,846,422

211 51,920,471

212 1,039,567

213 167,755

214 871,812

215 52,792,283

216 14,852,857

217 37,939,426

69

EXPLANATORY NOTES TO ACCOUNTS To Our Shareholders Together with the Balance Sheet and Income Statement for the financial year ending on 31 December 2009, we also submit for your approval these Explanatory Notes, which, pursuant to Article 2423 of the Italian Civil Code, are an integral part of the year-end financial statements.

Format and content of year-end financial statements The financial statements, prepared in euro, are presented in the specific format envisaged for insurance companies as per the requirements of Italian Legislative Decree no. 209 of 7 September 2005 ‘‘Private Insurance Company Code’’. For items not covered by the aforementioned Decree or by its implementation ordinances, the provisions of the Italian Civil Code and those of Italian Legislative Decree no. 173 of 26 May 1997. Specifically, in compliance with ISVAP Regulation no. 22 of 4 April 2008, the financial statements have been prepared as follows:

- The balance sheet and income statement are expressed in euro units. The arithmetical sum of rounding differences are recorded under captions F.IV.2) Sundry assets or G.IX.3) Sundry liabilities in the balance sheet and III.10) Extraordinary income or III.11) Extraordinary expense in the income statement;

- The Explanatory Notes to accounts, their appendices, and the restated balance sheet and income statement are presented in thousands of euro. Related rounding has been calculated to ensure consistency with the figures in euro units shown in the balance sheet and income statement.

As is required by regulations, the Explanatory Notes consist of three parts, i.e.

Part A – Accounting policies Part B – Information on the balance sheet and income statement Part C – Other information and cash flow statement. The Notes include 32 appendices that analyse the technical and financial components of insurance and financial operations.

In order to provide more complete information, it has been deemed appropriate, as already done in previous years, also to present the restated balance sheet and income statement. Restated balance sheet captions are shown net of reinsurance effects.

71

Reclassified balance sheet

ASSETS 31/12/2009 31/12/2008

InvestmentsLand and buildings 18,872 18,837 Investments in group and other companies- Equity investments 234,104 223,432 - Loans 3,064 3,161 Other financial investments:- Unit trust units 6,496 6,785 - Bonds and other fixed-interest securities 1,251,304 1,183,659 - Loans 11,308 12,487 - Other financial investments + Deposits with banks 1,038 10,000 Deposits with ceding companies 280 404 Investments benefiting life policyholders 75,800 69,467 Total investments 1,602,266 1,528,232

ReceivablesReceivables relating to direct insurance business from:- Policyholders 51,474 48,469 - Insurance brokers and agents 54,036 56,935 - Current account companies 10,846 12,331 - Amounts to be recovered from policyholders and third parties 36,031 28,895 Receivables relating to reinsurance business 5,303 6,230 Other receivables 28,656 19,897 Total receivables 186,346 172,757

Intangible assets 38,934 29,671 Tangible assets and inventory 3,009 3,212 Liquid funds 44,779 33,976 Other assets 16,159 14,077 Prepayments and accrued income 18,356 20,784

TOTAL ASSETS 1,909,849 1,802,709

(€/000)

72

Reclassified balance sheet

LIABILITIES AND SHAREHOLDERS' EQUITY 31/12/2009 31/12/2008

Shareholders' equity- Share capital 65,789 65,766 - Share premium reserve 31,129 31,098 - Revaluation reserves 10,939 10,887 - Legal reserve 8,430 6,533 - Other reserves 132,316 107,454 - Net profit (loss) for the year 24,290 37,939 Total shareholders' equity 272,893 259,677

Subordinated liabilities 4,107 4,161

Technical reserves, net of reinsurance- Premium reserve 220,349 206,708 - Claims reserve 505,234 472,681 - Mathematical reserves 701,973 655,326 - Reserve for amounts payable 22,931 22,180 - Other technical reserves 19,038 18,017 - Technical reserves where investment risk

is borne by policyholders and reserves relating to

pension fund management 75,800 69,467 Total technical reserves 1,545,325 1,444,379 PayablesDeposits from reinsurers 23,554 28,258 Payables arising from direct insurance business due to:- Insurance brokers and agents 3,651 5,017 - Current account companies 2,496 2,439 - Guarantee deposits and premiums paid by policyholders 199 224 - Guarantee funds in favour of policyholders 752 546 Payables arising from reinsurance business 7,451 8,233 Other sums payable 30,325 28,003 Total payables 68,428 72,720

Provisions for contingencies and other charges 1,263 1,365 Employees' leaving entitlement 4,392 4,650 Other liabilities 13,184 15,480 Accrued expenses and deferred income 257 277

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1,909,849 1,802,709

(€/000)

73

Reclassified Income Statement31/12/2009 31/12/2008

Technical accountLife businesses:Direct insurance (+) Gross premiums accounted for 129,293 114,510

(-) Charges relating to claims 115,572 135,027 (-) Change in mathematical and other

technical reserves 33,500 -42,662

(+) Other technical captions, net 351 495 (-) Operating costs 17,820 20,521

(+) Return on investments where the company bears the risk

net of the portion transferred to the non-technical account 29,264 26,417 (+) income on investments where

policyholders bear the risk - Class D 14,666 -20,395 Direct insurance result 6,682 8,141 Outwards reinsurance result 288 -66

Retained direct insurance result 6,970 8,075

Indirect and retroceded insurance result -40 -69 Result of life business technical account 6,930 8,006 Non-life businesses:Direct insurance (+) Gross premiums accounted for 541,519 515,706

(-) Change in premium reserve 13,981 14,457

(-) Charges relating to claims 397,494 359,017 (-) Change in other technical reserves - 482

(+) Other technical captions, net 404 867

(-) Operating costs 134,369 132,190 Direct insurance result -3,921 10,427

Outwards reinsurance result 10,105 -2,655

Retained direct insurance result 6,184 7,772 Indirect and retroceded insurance result 174 155 Total retained direct insurance result 6,358 7,927

(-) Change in equalisation reserves 311 287 (+) Income on investments transferred

from the non-technical account 17,118 30,262 Result of non-life business technical account 23,165 37,902 Result of technical account 30,095 45,908

(+) Income on non-life business investments net of the

portion transferred to the technical account 4,321 7,034 (+) Income on investments transferred

from the life business technical account 3,768 -

(+) Other income 2,944 3,826 (-) Other charges 6,628 4,848 Result of ordinary business 34,500 51,920

(+) Extraordinary income 709 1,040 (-) Extraordinary expense 149 168 Profit (loss) before taxation 35,060 52,792

(-) Taxation on profit for the year 10,770 14,853 Net profit (loss) 24,290 37,939

(€/000)

74

Part A: Accounting policies The accounting policies used to draw up year-end financial statements comply with the requirements of Articles 2426 and 2427 of the Italian Civil Code, of Italian Legislative Decree no. 209 of 7 September 2005 of Italian Legislative Decree no. 173 of 26 May 1997 (to which the ‘‘Private Insurance Company Code’’ refers), of the various regulations issued by the ISVAP (supervisory body for the Italian insurance industry) and of CONSOB (Italian securities & exchange commission) guidelines. The policies are described below. Unless otherwise specified, accounting policies relating to direct insurance also apply to outward reinsurance.

Technical insurance captions Classification of risks by business line For the purposes of allocation of gross premiums written and of related transactions, classification of risks by business line is defined by Article 2 of Italian Legislative Decree no. 209 of 7 September 2005.

NON-LIFE Premiums and related premium reserves are allocated to the various Non-Life Business lines analytically for single guarantee; operating costs and technical income are allocated to the various Non-Life Business lines through appropriated drivers. Costs relating to claims are directly allocated to the individual lines if they refer to transactions relating to an individual event, since allocations are made on the basis of the type of cover involved in a claim. Costs common to several claims are allocated to the various officially defined lines according to the weight of indemnities paid during the financial year. Costs borne for claims in the current and previous financial years are allocated in proportion to the indemnities paid in the various years concerned. Only for the Motor TPL (third-party liability) line is the impact of the number of claims occurring in the year taken into account.

LIFE Allocation of Life technical captions is done on a direct basis since the entire portfolio matches the regulatory classification. Gross premiums

LIFE/ Premiums, together with their ancillary costs, gross of outward reinsurance are re- NON-LIFE cognised as revenues upon maturity, regardless of when documents are recorded

and of the date when they are effectively collected. In the Non-Life business, cancellations of individual policies caused by technical events are directly deducted from premiums, as long as they are issued in the same year. In the case of Non-Life business, the caption comprises all cancellations except for those relating to first-year premiums written in previous financial years. For Non-Life business, allocation to the year is made via adjustment of the premium reserve. For the Life business it instead implicit in the calculation of the mathematical reserves, of the complementary insurance premium reserve, and of other technical reserves of the life business. Ceded and retroceded reinsurance premiums are accounted for in accordance with the contractual agreements made with reinsurers.

75

Operating costs NON-LIFE/ Operating costs include: LIFE – Acquisition commissions.

They include the commissions paid on the acquisition and renewal (also tacit) of contracts. They also include extra commissions and commission bonuses commensurate with achievement of productivity targets;

- Other acquisition costs. They include personnel expenses, logistics costs, costs for services and purchase of goods of the management departments involved in the assessment, issue and management of insurance contracts. They also include costs accorded to the agency network for the issuing of contracts and for extra bonuses and commission bonuses not linked to productivity targets, plus costs incurred for medical check-ups;

- Changes in commissions and other acquisition costs to be amortised. The item includes the year’s portion of amortisation for acquisition commissions and other acquisition expenses;

- Premium collection commissions. This item includes commissions paid for collection of premiums relating to long-term contracts;

- Other administrative costs. They include personnel expenses, logistics costs, costs for services and purchase of goods of the company departments other than those relating to the other acquisition costs indicated above and those allocated to claims settlement and investment management. They also include charges incurred for the termination of agency agreements not the part not subject to compensation;

- Commissions and profit participation received by reinsurers. - This includes commissions and profit-participation amounts for reinsurers as

established by contractual agreement for premiums ceded and retroceded. Premium reserve

NON-LIFE The Non-Life premium reserve is calculated on a pro-rata temporis basis, contract by contract, based on premiums written net of direct acquisition costs and of the unearned portion of premiums, i.e. pertaining to the period after December 31st in the financial year concerned.

For the contract of Credit Business draw up or renew before 31 December 2001, as prescribed by article no. 7, paragraph 4 of ISVAP Regulation n° 16/2008, have been used the forfeitary criterion as envisaged by article 3 of enclosed 1 of above mentioned Regulation. There is an exception to this rule for the calculation of the reserve for some business lines for which risk exposure does not decrease as time elapses or for which the correlation between policy premiums and potential claim costs does not follow the usual economic and technical criteria. The ISVAP Regulation no. 16 of 4 March 2008 defines the business lines and the criteria of calculation, which are recalled below: - Suretyship insurance: the additional reserve follows the criteria envisaged by

article no. 14 of above mentioned Regulation; - Credit insurance: the additional reserve follows the criteria envisaged by articles

no. 16 and 17 of above mentioned Regulation; - Miscellaneous asset damage - hail insurance: the additional reserve follows the

criteria envisaged by articles no. 19 and 20 of above mentioned Regulation; - Nuclear risks: the additional reserve follows the criteria envisaged by article no.

22 of above mentioned Regulation.

The premium reserve is supplemented by: - The reserve for unexpired risks: this reserve is set up to cover risks incumbent

upon the company after the balance sheet date. It is a technical provision, mandatorily required by article no. 11 of ISVAP Regulation no. 16 of 4 March

76

2008, made if, and to the extent that, the total amount of the presumed cost of expected claims --- relating to in-force policies --- is estimated to exceed the reserve for unearned premiums plus premiums outstanding, net of acquisition costs, for deferred-premium policies.

Reinsurers’ premium reserve: this is calculated applying the same criteria as those used for direct business and inward reinsurance. Other technical reserves

NON-LIFE This caption comprises the ageing reserve for health insurance as required by Article 37 of Italian Legislative Decree no. 209 of 7 September 2005. The reserve is calculated on a forfeitary basis by accruing 10% of gross premiums written on those products for which premium calculation does not consider the policyholder’s age and that include clauses limiting the company’s possibility of terminating the contract, as envisaged in ISVAP Regulation no. 16/2008. Equalisation reserves

NON-LIFE Equalisation reserves comprise all sums provisioned in compliance with Article 37 of Italian Legislative Decree no. 209 of 7 September 2005 in order to smooth fluctuations in claims rate in future years or to cover special risks. The item includes: - The offsetting reserve for credit insurance as per Article 42 of ISVAP Regulation

no. 16/2008; - The equalisation reserve for risks of natural disasters; the calculation is in

accordance with the Ministerial Decree of 19/11/1996. Equalisation reserving for FY2007, by business line, is shown in Appendix 25 to the Explanatory Notes. Costs relating to claims paid

NON-LIFE In the Non-Life business costs relating to claims paid include amounts paid in the year as indemnities and direct expenses, as well as claims adjustment expenses and the cost of the contribution to the guarantee fund for road-accident victims. Direct expenses are those incurred to avoid or minimise claim damage, including litigation costs as per Article 1917, paragraph 3, of the Italian Civil Code, rescue expenses in transport and aviation insurance, and extinguishing costs in fire insurance. Settlement costs include amounts paid to professionals appointed for the purpose, personnel expenses, logistics costs, and costs for services and goods of the company departments dedicated to claims settlement and handling.

LIFE Costs relating to claims in the Life business include sums recognised in the financial year against capital sums and annuities accruing, surrenders, and claims, including those relating to complementary insurance.

NON-LIFE/ The amount of reinsurers’ share of costs is calculated according to the provisions of LIFE provisions of contracts in place.

Recoverables NON-LIFE The caption includes, net of reinsurers’ contractual share, sums to be recovered

from policyholders and third parties for remedying of claims in policies with no-claims clauses, for deductibles, and for subrogations. The income statement recognises the difference between the amount at year-end and the amount existing on 31 December of the previous year, together with what has been recovered during the year.

77

Claims reserve

NON-LIFE The claims reserve reflects the prudent evaluation of estimated indemnities and adjustment costs for claims relating to direct business that have been incurred and not yet paid, either totally or in part, as at balance sheet date. This valuation is performed considering the specific features of each line, based on all components forming the requirement for coverage of the claim’s ultimate cost. ‘‘Ultimate cost’’ means the estimate of all foreseeable costs based on a prudent assessment of factual evidence (document examination) and forecasts (expected claims settlement time frame).

Assessment of each claim is performed according to the following phases: - Preparation of inventory estimates for each open position by non-life claims

settlement inspectors; - Analysis and checking of data and review of documentation concerning major

claims by corporate management.

Activities performed as part of claims assessment procedures are based on the following general criteria: - Accurate and complete basic year-end inventory of all claims partly or totally

not settled, highlighting claims that are the subject of disputes - Analysis of claims featuring several positions in order to ascertain that proper

evidence exists supporting each individual position; - Separate indication of the quantification of bodily injury and property damage; - Inclusion of estimated direct and settlement costs in the claims reserve.

Settlement costs include both amounts paid to professionals taking part in claims handling and internal company costs relating to the claims handling department;

- Assessment of claims relating to credit and suretyship insurance in compliance with the dictates of Section 4 of ISVAP Regulation no. 16 of 4/03/2008.

As regards current-generation claims, case documentation is examined at least quarterly to check the claim’s progress and see whether the previous assessment was correct. In addition, the ‘‘continuous reserve’’ operating procedure is applied, which means that, when each partial payment is made or whenever new information is gathered, the claim is reviewed. The field claims settlement network is supported by the area co-ordinators. The latter check, in terms of merit and method, that corporate house rules are properly applied.

The claims reserve includes the estimate for IBNR claims, i.e. claims pertaining to the year that have been incurred but not yet reported by year-end but pertaining to the year. Amounts are calculated considering the average cost of the current generation. The claims reserves thus calculated that relate to mass risks, insofar as they refer to positions settled in the medium-long term, are subjected to statistical and actuarial checks to assess their consistency with ultimate cost and, when necessary, are topped up. Mathematical reserves and other technical reserves

LIFE Technical reserves for the Life business are calculated on the basis of the pure premiums and actuarial assumptions deemed to be appropriate as at the date when contracts were signed, insofar as they are still valid. Calculation of technical reserves is based on the rate of return determined on the basis of the related investments for respective ‘‘revaluable’’ benefits and on the mortality rate used to calculate pure premiums. In accordance with current regulations, the premiums-carried-forward component of mathematical reserves is calculated on a pure-premium basis. The reserve for operating expenses is calculated taking operating loading as the basis and the other technical bases of the tariffs applied. For policies

78

featuring health- and/or profession-related premium surcharges, an additional reserve is calculated equal to a full annual premium surcharge.

The premium reserve for complementary accident insurance is calculated analytically, applying the premium-carry-forward criterion to related pure premiums.

In no case is the mathematical reserve lower than surrender value.

In compliance with the requirements established by Article 50 of ISVAP (Italian insurance regulator) Regulation no. 21 of 28 March 2008, an additional demographic risk reserve has been set up relating to annuity contracts and to capital contracts with a contractually guaranteed annuity conversion factor, in order to adjust the demographic bases used to calculate mathematical reserves to direct portfolio experience. Mathematical reserves are always supplemented, when necessary, in order to take into account the time lag between the period when a contractually recognised return accrued and the time when it is accorded to the insured (Article 37 of ISVAP Regulation no. 21 of 28 March 2008).

In compliance with the rules established by Articles 38-46 of ISVAP Regulation no. 21 of 28 March 2008, an ALM (Asset & Liability Management) procedure is implemented for joint analysis of asset and liability portfolios of internal separately managed accounts considered significant. The aim is to calculate forecast returns for each of them.

Reversals and profit participation

NON-LIFE/LIFE Profit participation includes all amounts pertaining to the year, paid and to be paid to Profit participation includes all amounts pertaining to the year, paid and to be paid to policyholders or other beneficiaries, including amounts used to increase technical reserves or reduce future premiums, as long as they constitute distribution of technical profits arising from non-life and life insurance activities, after deduction of amounts accrued in previous years’ that are no longer necessary.

Reversals consist of the amounts that are partial rebates of premiums made on the basis of each contract’s performance.

Other technical costs

LIFE/ Other technical costs include: NON-LIFE - For the Non-Life business, premiums cancelled, due to technical events, of

individual policies issued in previous financial years - For the Life business, cancellation of first-year premiums written in previous years;

- Uncollectable premiums of amounts receivable from both Non-Life and Life policyholders; - Costs relating to goods and services purchased to complement Non-Life insurance covers; - Costs stemming from management of the knock-for-knock system.

Other technical income

LIFE/ Other technical income includes: NON-LIFE – Commissions relating to cancelled premiums included in other technical costs of

the Non-Life and Life businesses; –Income relating to management of the knock-for-knock system and to the subsidy

accorded by the ANIA (Italian insurers’ association) to encourage scrapping of damaged vehicles in the Non-Life business.

79

Investment income transferred from the non-technical account to the technical account

NON-LIFE Financial income and charges relating to investments concerning the Non-Life Business are shown in the non-technical account, as required by paragraph 1, Article 54, of Italian Legislative Decree no. 173 of 26 May 1997. Having said that, the official format for financial statements makes it obligatory to transfer, according to the methods established by the ISVAP, a part of investment income, net of financial charges, from the non-technical to the technical account. ISVAP Regulation no. 22 of 4 April 2008 in its article no. 22 established that the portion of investment income transferred must be proportional to the ratio where the numerator is the sub-total of retained mandatory technical reserves at the end of the current and previous year and the denominator is the total of the sub-total of retained mandatory technical reserves at the end of the current and previous year plus the sub-total of shareholders’ equity and subordinated liabilities as at the end of the current and previous year. Mandatory technical reserves consist of the premium reserves, claims reserves, profit participation and reversal reserves, the ageing reserve for health insurance, the offsetting reserve for credit insurance and the equalisation reserve for natural disasters. Investment income transferred from the technical account to the non-technical account

LIFE Financial income and charges relating to investments concerning the Life business are shown in the technical account, as required by paragraph 3, Article 54, of Italian Legislative Decree no. 173 of 26 May 19967. Having said that, the official format for financial statements makes it obligatory to transfer, according to the methods established by the ISVAP, a part of investment income --- defined as the amount of investment income net of financial charges and excluding unrealised capital gains and losses relating to investments benefiting policyholders bearing the risk and investments relating to pension fund management - from the technical to the non-technical account. ISVAP Regulation no. 22 of 4 April 2008 in its article no. 23 established that investment income transferred must be proportional to the ratio where the numerator is the sub-total of shareholders’ equity and subordinated liabilities at the end of the current and previous year and the denominator is the total of the sub-total of shareholders’ equity and subordinated liabilities at the end of the current and previous year plus the sub-total of retained mandatory technical reserves as at the end of the current and previous year. Mandatory technical reserves for these purposes consist of the mathematical reserves, complementary insurance premium reserves, reserves for payable amounts, profit participation and reversal reserves and other technical reserves, excluding technical reserves where the investment risk is borne by policyholders and reserves relating to pension fund management. If investment income allocated to the Life business technical account as per the criteria described above is lower than income contractually allocated to policyholders during the financial year, the portion of investment income to be transferred to the non-technical account has to be adjusted accordingly and, if necessary, cancelled. Inward reinsurance

NON-LIFE/ LIFE Inward life insurance is recorded on an accruals basis, except for risks retroceded

by C.I.R.T. (the Italian consortium for impaired life insurance), which , however is not material.

80

If there are no specific negative indications, the economic effects of non-life inward reinsurance are accounted for one year later than the year to which they refer, as the necessary information is not available at balance sheet date. Related financial and balance sheet movements are recorded in the balance sheet under Other assets --- Other liabilities in the reinsurance suspense accounts. Treaties concerning aircraft hulls represent an exception to the above accounting treatment as the space risk business is accounted for on a strict accruals basis. Indirect business claims reserves generally reflect those reported by the ceding insurer and Vittoria Assicurazioni supplements them when they are deemed inadequate with respect to the commitments underwritten. Retrocession

NON-LIFE/ Retroceded business mainly relates to Line 05 Aircraft hulls --- space risks. Items LIFE relating to retrocession are measured according to the same policies as those applied to inward reinsurance.

Investment captions C I – Land and buildings

In compliance with Article 15, paragraph 2, of Italian Legislative Decree no. 173 of 26 May 1997, land and buildings are considered to be assets for enduring, long-term use, except in the case of buildings available for sale.

Refurbishments, improvements, and plant upgrades --- which are all designed to extend building units’ life and increase their profitability --- are capitalised. Ordinary maintenance costs are established in a long-term plan and are expensed in the income statement annually. Market value Measurement is based on the market value of each plot of land and building. ‘‘Market value’’ means the price at which the plot of land or the building can be freely sold by means of an agreement between two parties (the seller and the buyer) in normal and evenly balanced conditions and, more specifically, if: - Both parties act after have gathered the necessary information on the

property’s officially designated urban use, marketability, and absence of any prejudicial annotations as regards title;

- The seller is free, or otherwise, to sell and there are no economic/financial circumstances forcing him to do so;

- The buyer is not being encouraged to purchase by non-market related factors. Furthermore, the following conditions are taken into account: - The asset has been on the market for a time reasonably long enough to permit

its fair sale; - The deed of sale has been signed after negotiations permitting the definition of

price and terms.

Besides considering differences relating to age, position with respect to the importance of the zone where it is located, the valuation of each building also considers typical factors (building type and quality, and state of preservation, etc.), possible profitability, any town-planning constraints and/or restrictions imposed by the Heritage Ministry, and anything else that which may have an impact on the asset’s valuation.

Valuation of leased buildings takes into account the type of contract, its expiry date and rental, also as regards possible revisions.

81

C II – Investments in Group companies and other investees

Pursuant to paragraph 2, Article 15 of Italian Legislative Decree no. 173 of 26 May 1997, investments in Group companies and other investee companies are considered to be long-term assets. Group companies Article 5 of Italian Legislative Decree no. 173 of 1997 and ISVAP ordinance no. 735 of 1/12/1997 define group companies as being: a) Parent companies; b) Subsidiaries; c) Affiliates, i.e. companies, other than those included in item b) that are controlled

by the same entity controlling the parent company or subject to common management as defined by paragraph 1, Article 60, of the above decree;

d) Associate companies. For the purposes of this classification, the concept of ‘‘control’’ is as defined in Article 2359, paragraphs 1 and 2, of the Italian Civil Code. Other investee companies This item comprises companies held for their strategic function or support of the insurance business. Investments in group and other companies are measured according to the following criteria: - Investments denominated in euro are measured at acquisition cost inclusive of

ancillary costs; - Investments denominated in foreign currency are measured at acquisition cost,

inclusive of ancillary costs, converted into euro at the exchange rate in force on transaction date.

Acquisition cost is written down to allow for any permanent impairment shown in investee companies’ financial statements. If the reasons for such write-down no longer exist, the original value is reinstated in subsequent financial statements.

If the impairment of the value of long-term foreign-currency investments in foreign is due to exchange-rate losses, it must be checked to see whether such impairment is permanent or otherwise If the exchange rate is expected to recover in the short- medium term, the investment is not written down.

Dividends distributed by investee companies held are recognised when the right to collect them is established.

Information and changes concerning investments are provided in Appendices 6 and 7 to these Explanatory Notes.

82

C III – Other financial investments Equity investments

This category includes short-term investments in shares and quotas. Measurement criteria are as follows:

- Listed securities are stated in year-end accounts at weighted average cost or, if lower, presumed realisable value based on market trends. This lower value is not maintained in subsequent year-end accounts if the reasons for the adjustment no longer exist;

- Unlisted securities are stated at purchase cost, net of any losses recorded in investee companies’ approved year-end accounts. Once again, this lower value is not maintained in subsequent year-end accounts if the reasons for the adjustment no longer exist.

Foreign currency investments are converted into euro as follows: - Purchases: at the exchange rate in force on the date of transaction or

subscription; - Sales: at the exchange rate in force on transaction date; - Fair value: at the year-end exchange rate.

Dividends distributed by these companies are recognised when the right to collect them is established.

Units in mutual investment funds

Investments in this category are stated in year-end accounts at weighted average cost or, if lower, at realisable value based on market trends. This lower value is not maintained in subsequent year-end accounts if the reasons for the adjustment no longer exist. Unlisted closed-end mutual securities investment funds and real estate investment funds are measured at acquisition cost.

The value of investments in foreign-currency mutual investment funds is converted into euro applying the following criteria: - Purchases: at the exchange rate in force on the date of transaction or

subscription; - Sales: at the exchange rate in force on transaction date - Fair value: at the year-end exchange rate.

Bonds and other fixed-income debt securities

In accordance with the ISVAP ordinance of 1707/1996 (use of financial derivatives by insurance companies) and the ISVAP ordinance of 18/06/1998 (classification of investments), the Board of Directors has issued guidelines for classification of the debt securities portfolio. Fixed-income securities are therefore classified as shown below.

Investment securities These securities are stated at acquisition cost, inclusive of all ancillary costs. Cost is adjusted in the eventuality of permanent impairment of value. The higher or lower cost with respect to their repayment price is amortised on a straight-line basis over the period from acquisition to maturity. These securities are held until they mature as the company has the financial resources to do this. Their classification depends on their importance and/or the expected normalisation of the rate of return of technical reserves in general and of segregated Life accounts in particular.

83

Trading securities Securities in this category, recognised at purchase cost inclusive of all ancillary costs, are stated in year-end accounts at weighted average cost or, if lower, at presumed realisable value based on market trends. This lower value is not maintained in subsequent year-end accounts if the reasons for the adjustment no longer exist. The cost of fixed-income securities is adjusted for the quota accruing in the year of margin, i.e. the difference between issue price and repayment value. ‘‘Market trends’’ means, for listed securities, the price recorded on the last trading day of the financial year. Foreign-currency securities are converted into euro applying the following criteria: - Purchases: at the exchange rate in force on the date of transaction or

subscription; - Sales: at the exchange rate in force on transaction date - Fair value: at the year-end exchange rate. Fair value of financial instruments In compliance with the requirements of Article 2427/2 of the Italian Civil Code, in Part B of the Explanatory Notes we provide information on the fair value of derivative financial instruments as well as --- for non-current financial assets recognised at a value higher than their fair value (excluding investments in subsidiaries, affiliates, and joint ventures) --- related carrying value and fair value, together with the reasons why carrying value has not been reduced. The fair value of assets in Classes C II and C III, traded in regulated markets, is the price recorded on the last trading day of the financial year. As envisaged in Article 2427/2 of the Italian Civil Code, for the definition of ‘‘financial instrument’’, ‘‘derivative instrument’’, ‘‘fair value’’, and ‘‘generally accepted measurement model and technique’’, reference is made to international accounting standards compatible with European Union rules concerning the subject. If a market valuation is not available for the investment, fair value is determined either on the basis of another similar financial instrument’s fair market value or via use of appropriate valuation techniques. The latter include use of recent transactions, discounted cash flow analysis, or models able to provide reliable estimates of presumed prices in current market transactions. If fair value cannot be reliably measured, cost is used, adjusted for any impairment loss. Investments benefiting policyholders bearing risk Financial investments benefiting policyholders who bear the risk of such investments are stated at fair value, i.e. at the price and exchange rate of the last trading day of the financial year. The concept of ‘‘policyholders bearing the investment risk’’ is the feature decisive for application of the fair-value accounting standard to measure assets, as it immediately reveals the relationship between the trend in technical reserves and that of assets covering such reserves.

In year-end financial statements, these investments are classified as follows:

D I - unit-linked and index-linked investments

D II - investments arising from pension fund management

Mortgages and loans

Mortgage loans granted are all expressed in euro and are shown on the basis of residual principal as they are secured by mortgages on buildings.

84

Loans are all expressed in euro and, if rated as collectable, are stated at the residual principal value. They are adjusted by means of appropriate bad-debt provision. Other captions

Tangible assets

Tangible assets are recognised at purchase cost inclusive of ancillary costs. They are shown net of related cumulative depreciation. Assets are depreciated on a straight-line basis over their estimated useful lives.

Intangible assets

Intangible assets are recognised at cost and directly amortised on a straight-line basis as follows: - Business and/or product trademarks = over a 10-year period; - Over a period that takes their residual possibility of use if they are assets

coming under the 2nd point of Article 2426 of the Italian Civil Code; - Costs incurred for the convertible subordinate bond issue approved by

shareholders at the Extraordinary Meeting on 26 April 2001 = over a 10-year period;

- Start-up and expansion costs pursuant to the 5th point of Article 2426 of the Italian Civil Code;

- Goodwill is recognised as an asset upon approval of the board of statutory auditors, if acquired against payment, within the limit of the amount paid and is amortised in 5 years. If the goodwill residual useful life is reasonably higher than five years, the amortisation period can be extended up to twenty years, giving appropriate disclosure.

This caption includes deferred acquisition costs, i.e. non-life and life commissions to be amortised.

NON-LIFE Acquisition costs for long-term contracts, with specific reference to purchase commissions, are deferred and amortised over three years from the year when they are incurred. Taking into account contracts’ term and regulations concerning the applicability of commission charges, the amortisation period can be considered to be economically consistent.

LIFE Acquisition costs for new contracts, for the part not outwardly reinsured, are capitalised, within the limits of their respective loading, and are amortised on a straight-line basis over the duration of the underlying contract, with the maximum limit of 10 years. The amortisation period is considered to be economically consistent. Residual commissions of policies cancelled during the amortisation period are expensed in the financial year when the policies are eliminated from the portfolio.

Receivables

Receivables are shown in year-end accounts at face value adjusted to presumed realisable value via bad-debt provision.

With reference to the requirements of Article 2427 of the Italian Civil Code and of Italian Legislative decree no. 173/97, if in the section analysing balance sheet items, receivables are not specifically indicated as having a residual duration of more than one year and five years, they are taken to have a duration of less than one year.

85

Accrued, prepaid and deferred items

Accrued income, prepaid expenses, accrued liabilities, and deferred income link costs and income to the financial year to which they refer, even although related cash movements may take place after or before 31 December.

These items include only costs and income relating to two or more financial years.

Payables

Payables are shown in year-end accounts at face value.

With reference to the requirements of Article 2427 of the Italian Civil Code and of Italian Legislative decree no. 173/97, if in the section analysing balance sheet items, payables are not specifically indicated as having a residual duration of more than one year and five years, they are taken to have a duration of less than one year.

Reserve for employee severance indemnities

The reserve for employee severance indemnities is calculated in compliance with current regulations and, as at balance sheet date, fully covers amounts ultimately payable to eligible staff.

Income taxes

Taxation of the year’s profit is calculated on the basis of each financial year’s estimated taxable income and recognised on an accrual-accounting basis in compliance with current legislation. In accordance with Italian accounting standard no. 25 (‘‘Accounting treatment of income taxes’’) issued by the Italian national council of chartered and registered accountants, and subsequently amended by the OIC (the Italian accounting organisation) in connection with Italian company law reform, deferred taxes are calculated on the basis of the tax rates in force when temporary difference reverse, making appropriate adjustments if tax rates have changed with respect to previous years, only if the legal regulation changing the tax rate has already been enacted as at balance sheet date.

Deferred tax assets are recognised when it is reasonably certain that there will be future taxable income greater than the temporary differences generating the deferred tax assets in the years when such differences will reverse.

Deferred tax liabilities are not recognised if there is little possibility of them materialising or if their amount is immaterial.

Deferred tax liabilities, if any, are provisioned in the ‘‘Tax provision’’ caption of the balance sheet, whilst deferred tax assets are recorded under ‘‘Other assets’’.

Conversion into euro Items expressed in foreign currency are converted at spot exchange rates. For balance sheet items still existing at year-end, the exchange rate on the last trading day of the financial year is applied.

86

and Income Statement BALANCE SHEET ASSETS

CLASS B - INTANGIBLE ASSETS

of which: B.1 - DEFERRED ACQUISITION COSTS

B.1.a - Deferred acquisition commissions - Life business

2008 2009

Intangible assets are stated net of amortisation of € 11,054 thousand and, in the Life business, net of theresidual amount to be amortised of cancelled policies reversed to the income statement. Amortisation iscalculated as stated in "Part A - Accounting policies" of these explanatory notes.

2009 Change

Change

29,671 + 9,26338,934

2008

Acquisition commissions are amortised as described in the "Accounting Policies" chapter. If all policieswere to have reached their full maturity, the different duration used for amortisation vs. actual policyduration would have led to an increase in shareholders' equity, before the related tax effect, inshareholders' equity of € 3,923 thousand (2008: € 4,600 thousand) for the Life business and of € 14,310thousand (2008: € 15,933 thousand) for the Non-Life business.

8,168

– Commissions on policies acquired by SACE and annual

2,768

7,154

2,753 + 152009

Deferred acquisition commissions changed as follows:

Change

Part B: Information on the Balance Sheet

2008

- 1,014

– Commissions on policies acquired in the year

- 738- 275– Commissions for policies cancelled in the year

+ 210

+ 818

– Annual amortisation

87

B.1.b - Deferred acquisition commissions - Non-Life business

B.3 - START-UP AND EXPANSION COSTS

B.4 - GOODWILL

-

2009 Change

– Annual amortisation– Commissions on policies acquired in the year

+ 4,199

2009 Change

Following the start of conversion of the loan in FY2009, a part of issue costs - € 1 thousand - has beeneliminated

27

Annual amortisation in FY2009 amounted to € 13 thousand.

Deferred acquisition commissions changed as follows:

On 1 July 2009 the contract for acquisition by Vittoria Assicurazioni of the life insurance branch of thecompany SACE BT SpA took effect. Further to this agreement, Vittoria Assicurazioni SpA recognised a goodwill equal to € 4,050 thousand, ofwhich € 1,392 allocated to commercial agreements inherited with the acquisition and € 2,658 allocated toVIF (Value In Force ).The first item is amortised in 5 years charging € 140 thousand to 2009 profit and loss; the VIF is amortised

5,415 - 1,0294,386

13 - 142008

These are the costs borne by the company to issue the convertible subordinated loan approved byshareholders at the Extraordinary Meeting on 26 April 2001.

2008 2009 Change- 3,163 + 3,163

2008

88

B.5 - OTHER DEFERRED COSTS

Software applicationsSoftware applications under completionRefurbishment of HQ and agency premisesOther deferred costsTotal

Below we list the investments concerned:

1,142717

2008

1,458,764

Total carrying values include the following revaluations: 509

11,206 Italian Law 28 January 2009 - no. 2

1,019

2008

7,128

145

Change

+ 7,128

Monetary - pursuant to Italian Laws 576/75 and 72/83

19,594

The item "Software applications" refers to long-term costs borne mainly for the NewAge System packagefor development of the company's operating system, the claims adjustment network and the agencynetwork and to implementation of Claims Datawarehouse.

The change reflects purchases of €11,250 thousand in the year and amortisation of € 4,122 thousand.

1,621

18,837 + 35Change

CLASS C - INVESTMENTS 2008 2009 Change

2009

+ 67,702

C.I Land and buildings

2009

28,604

The comparison with investments' fair value is shown by type in the Appendices to the Explanatory Notes.

1,526,466

1,871

(€ '000)

3,013

28,604

The increase due to the item “Software applications under development” was mainly due to the newapplication for management of the Life portfolio (€ 1,419 thousand).The item “Other long-term costs” mainly included:– Long-term costs of € 403 thousand relating to the SACE deal to be amortized in five years, with annualamortization for the period of € 41 thousand– Gross long-term costs of € 1,677 thousand, of which € 412 thousand already amortized, relating to thestart-up phase of new agencies set up during the year.

21,476

Deferred expenses, stated in year-end accounts at cost, are directly amortised. The following tableshows changes occurring during the year:

3,491 23,0852009

21,476Change2008

18,872

23

Tax-driven and voluntary 897 Mandatory - pursuant to Italian Law 413/91

8621644

In FY2009, in the light of the major maintenance work done and the numerous additional modulesdeveloped over time, the NewAge System’s residual useful life was estimated to be 10 years, ending in2018, with recognition of € 900 thousand of benefit from lower amortization costs.

89

C.I.1 - OPERATING BUILDINGS

C.I.2 - BUILDINGS USED BY THIRD PARTIES

C.II - Investments in Group companies and in other investees

of which:

C.II.1 EQUITY INVESTMENTS

C.II.1b Subsidiaries

-

237,168

157,116151,611

2008 2009

2009 Change18,054 + 35

Change

g

The change was due to restructuring in property assets.

18,089

The item is unchanged during FY 2009.

2008

2008

The caption comprises:

2009

2008

+ 10,576

Change+ 10,673

The total value of subsidiaries, affiliates, associates and other investee companies are shown below.Details and related changes involving these companies are shown in Appendices 6 and 7 of theExplanatory Notes.

223,431

226,592

The change was due to the following operations during FY2009:- acquired 100% equity interest from the subsidiaries Vittoria Immobiliare S.p.A. for € 170 thousand;- reimbursement for additional paid-in capital of Immobiliare Bilancia Seconda S.r.l. for € 7,250- subscription of € 10,000 thousand for the capital increase of Lauro 2000 Srl;- subscription of € 1,745 thousand for the capital increase of Vittoria Immobiliare Srl;- subscription of € 840 thousand for the capital increase of Vittoria Service S.r.l..

2009 Change783

2009

234,104

783

Change+ 5,505

2008

Securities allocated to the Life segregated accounts amounted to € 22,390 thousand.

90

C.II.1d Affiliates

C.II.1e Other investee companies

C.II.3 LOANS TO GROUP COMPANIES

of which:

C.II.3d Associate companies

Change2009

Change39,531

33,8212008

The change is due to the reimbursement of capital loan made by the subsidiary Vittoria ImmobiliareS.p.A.. These loans have a duration of more than one year and the current interest rate applied is 4.5% forVittoria Immobiliare and 0 75% for Interbilancia

38,000

The change was due to the following operations during FY2009:- merger of the Banca Comprensorio del Cuoio in the BCC di Signa with write-downs for € 4 thousandcounterbalance with a receivable;- Cam Finanziaria Spa: exercised the option right and subscribed new shares, paying € 3,011 thousand;the warrants, coming from subscription of the capital increase, are € 799 thousand;- Downall Italia S.r.l.: capitalised units transfer expenses for € 1 thousand and recorded an impairment for€ 495 thousand;- Gpa S.p.A. Group: capitalised shares transfer expenses for € 7 thousand;- Immobiliare Adamello Srl: € 50 thousand were paid to cover losses;- Mediobanca Spa: further to a bonus capital increase, received warrants for € 240 thousand;- Liguria Srl: in liquidation with consequent write-downs for € 1 thousand.

- 97

2008

Change

+ 1,531

Change661

2009

- 97

37,457

564

+ 3,636

2008 2009

2009

3,0643,161

2008

The change was due to the following operations during FY2009:- Gima Finance SA: € 967 thousand were paid as additional paid-in capital;- Laumor Holdings Sarl: € 328 thousand were paid as additional paid-in capital;- Yarpa S.p.A.: increased equity interest with an investment of € 478 thousand and subsequently paid € 1,862 thousand for capital increase.

91

C.II.3e Other companies

C.III Other financial investments

of which:

C.III.3 BONDS AND OTHER FIXED-INCOME SECURITIES

2008

- 290

2009

2,500

Change

+ 67,645

The detail of the breakdown of the bond portfolio as at 31/12/09 by type of issuer was as follows: Italiangovernment securities 74.0%. foreign government securities 15.7%, emerging countries' governmentsecurities 0.0%, Italian corporate bonds 1.0%, and foreign corporate bonds 9.3%.

6,785 6,495

The change is due to purchase of unit funds for € 5,000 thousand, sale of unit funds for € 5,172 thousand andto the partial reimbursement of closed-end real estate funds amounting to € 118 thousand.

Securities allocated to Life segregated accounts amounted to € 1,236 thousand.

2008 Change1,183,659 1,251,304

2008 2009

2008 2009

The item includes the loan granted to the GPA Group for € 500 thousand and the loan granted to theImmobiliare Adamello S.r.l. for € 2,000 thousand.These loans have a duration of more than one year and the current interest rate applied is 0.91% forImmobiliare Adamello and 1.45% for GPA Group.

Change2,500 -

+ 57,215

Change2009

C.III.2 UNITS IN MUTUAL INVESTMENT FUNDS

1,270,1461,212,931

92

of which:

C.III.3a Listed

C.III.3b Unlisted

– Adjustment for positive issue differentials

Securities allocated to segregated Life accounts amounted to € 108 thousand.

– Transfer, following policy surrenders, of securities from Class D to Class C at fair value

- 2,663

– Alignment of value with market conditions

Change

+ 2,670

- 2,692– Decrease following reimbursements and sales

- 814

The change was due to:

1,247,205

+ 236,340management and trading

+ 747

+ 18

4,09920092008

6,762

– Adjustment for negative trading margins

- 174,457

+ 3,064

– Adjustment of zero-coupon bonds

– Adjustment for negative issue differentials

+ 1,178– Adjustment for positive issue differentials

– Adjustment for positive trading margins

– Transfer, following policy surrenders, of securities from Class D to Class C at fair value

+ 2,978

20092008

1,176,897 + 70,308

– An increase depending on normal portfolio

– Decrease following reimbursements and sales

- 1,398

Securities allocated to Life segregated accounts amounted to € 571,583 thousand.

+ 11

Change

The change was due to:

93

ents - Other investee companiesinvestments in other investee companieshich carried at a value higher than fair value 1)issued by other investee companiesto other investee companiesancial investmentsinvestments

n mutual investment funds (*)hich carried at a value higher than fair value 2)and other fixed-income securities (*)hich carried at a value higher than fair value 3)to other investee companieshich carried at a value higher than fair value in pool investmentsepositsfinancial investments (*)

hich carried at a value higher than fair value 4)

e corresponds to what is indicated in Appendix 8 to the Explanatory Notes

C.III.4 LOANS

of which:

C.III.4a Secured loans

C.II.1237,168

to unit funds BCM Market Neutral Fund PLC and unit funds Maestrale

Change

10,346

The minimum interest rate applied to mortgages is 3.0%.As regards the requirement of Article 2427, point 6, of the Italian Civil Code, we declare that:

C.III.4

11,411

11,308

C.III.2

2008

12,487

1,251,304

C.III.7 1,039

anca and Camfin warrants classified in the investment portfolio as equity shares

-

- 1,179

564 2,500

55,212

-

to shareholding in Mediobanca and to exchange rate on BCM

2009

C.III.3

C.II.3.eC.II.3.b

C.III.6C.III.5

-

5,000

C.III.16,495

1,270,146

-

The following table summarises the information required by Article 2427/2 of the Italian Civil Code, taking into account the fact that, as at 31 December 2009, the company owned no investments in financial derivatives.

242,216 234,104 239,152

Account class

(€ '000)

NotesFair valueCarrying value

FY2009

Change3,341 3,046

The item consists solely of mortgage loans granted by the company. For changes during the year, seeAppendix 10 to the Explanatory Notes.

- 295

- The amount of mortgages with a residual duration of more than 5 years is € 2,636 thousand.

20092008

- The amount of mortgages with a residual duration of more than 1 year is € 2,879 thousand;

564

-

808

are securities held as long-term investments, whose carrying value is lower than or equal to reimbursement value.eld to maturity because the company had the financial capacity to do so

1,299,814

-

1,039

-

11,308

-

6,705

2,500

9,615

3,995

1,316,942

51,761

808

94

C.III.4b Loans against insurance policies

C.III.4c Other loans

C.III.6 DEPOSITS WITH BANKS

C.III.7 SUNDRY FINANCIAL INVESTMENTS

- The amount of loans with a residual duration of more than 5 years is € 853 thousand.

Change

10,000

The item consists of a three months-time deposit, established with a primary Bank, in order to obtain afavourable interest yield.This deposit was closed on 11th February 2009.

- 10,000-

2008

4,489

As regards the requirement of Article 2427, point 6, of the Italian Civil Code, we declare that:

- The amount of loans with a residual duration of more than 1 year is € 4,215 thousand;

- 1,0625,551

The item mainly consists of loans granted to company employees and agents. Changes aredetailed in Appendix 10 to these Explanatory Notes.

The minimum interest rate applied to loans is 1.0% and relates to loans granted to the agency network toupgrade its IT facilities.

20092008

1,039 + 1,039

Camfin and Mediobanca warrants coming from subscription of the capital increase for € 799 thousand(Camfin) and € 240 thousand (Mediobanca).

-

These are loans granted to company policyholders. For changes occurring during the year, referenceshould be made to Appendix 10 to these Explanatory Notes.

+ 179Change

3,7733,59420092008

Pursuant to point 6 of Article 2427 of the Italian Civil Code, we note that, given their specificnature, these loans can be considered to have a duration of more than five years. The current interest rate applied to the loans is equal to the rate of return of separately managed businesses retroceded topolicyholders, increased by 1 point.

2009

Change

Change2008 2009

95

C.IV Deposits with cedent companies

of which:

D.I Investments relating to unit- and index-linked policies

Below we detail the changes occurring by asset category:

2009

Investment breakdown by asset category is shown in Appendix 11 to the Explanatory Notes.

2008

63,893 + 3,086Change

2008 2009 Change

Index-linked portfolio– Decreases due to redemptions

- 124

+ 6,33369,4672009

CLASS D - INVESTMENTS BENEFITING LIFE POLICYHOLDERS BEARING THE RISK AND THOSE RELATING TO PENSION FUND MANAGEMENT

75,8002008

– Year-end accruals

Unit-linked portfolio

– Increase due to purchase and subscription of securities + 12,509

+ 7,467

- 20– Alignment with fair value - write-downs+ 3,462

– Profit/loss on internal fund management– Alignment with fair value - write-ups

– Opening accruals - 20+ 11

+ 1,007+ 93– Adjustment for positive issue differentials

- 4,399

– Capitalisation of zero-coupon bonds– Alignment with fair value - write-ups

+ 9

404 280

Change

The amount of these deposits relates to the technical reserves for indirect business.

66,979

– Decreases following sales of securities, redemptions, and - 17,033

96

D/2.I Non-Life business

of which:

D/2.I.1 PREMIUM RESERVE

D/2.I.2 CLAIMS RESERVE2008

9,507

37,754

+ 151

2009

9,658

Change44,274

74,254 + 8,128

+ 3,247

- 372- 88

– Decreases as a result of sales

D.II Investments relating to pension fund management

CLASS D/2 - REINSURERS' SHARE OF TECHNICAL RESERVES

5,574

+ 6,520

Investment breakdown by asset category is shown in Appendix 12 to the Explanatory Notes:

2009

+ 6,67147,261

2008

53,932

Change

2009 Change

As regards their breakdown by type of reinsurance business, reference should be made to thedescription in Balance Sheet Liabilities - Class C - Technical Reserves.

2008

8,821

Below, we detail the changes that occurred by type:

2009

– Changes in other assets

- 106

Their breakdown by insurance segment is as follows:

– Increase due to purchase and subscription of securities

+ 960

+ 2,853

– Changes in cash resources

– Alignment with fair value

2009 Change2008

Change

66,1262008

97

D/2.II Life business

of which:

D/2.II.1 MATHEMATICAL RESERVES

D/2.II.3 RESERVE FOR PAYABLE AMOUNTS

D/2.II.5 OTHER TECHNICAL RESERVES

of which:

+ 13,589186,346

This item is shown net of related adjustment provisions, which, as at 31 December 2009, totalled € 8,857 thousand.

146,630

172,757

E.I Receivables relating to direct insurance transactions2009 Change2008

+ 5,757

+ 3,005

152,387

2009

Change

23

373

2008

CLASS E - RECEIVABLES

E.I.1 DIRECT INSURANCE RECEIVABLES, FOR PREMIUMS DUE FROM POLICYHOLDERSChange2008

Change

19,926

20,3222009

Change

+ 1,457

+ 1,084

2009

2009

Change

23

2009

These items refer to operating expense reserves for Class 1 - Whole and term .life insurance - and ClassIV - Health insurance.

2008

-2008

18,8422008

18,865

Change2009

-2008

+ 373

48,469 51,474

98

of which:

Change

2008 2009 ChangeE.I.1b - Direct insurance receivables, for previous years' premiums due from policyholders

45,089 + 1782008

2008 Change

2009

As required by Article 2427, point 6, of the Italian Civil Code and in compliance with Italian LegislativeDecree no. 173 of 26 May 1997, it is declared that:

- The amount of receivables with a residual duration of more than 1 year is € 9,550 thousand;

2008

56,935Change

54,036 - 2,899

These are amounts receivable from insurance agents and brokers, net of related provision of € 5,829 thousand. Amounts receivable from agents include receivables of € 984 thousand due from Aspevi Srl.

E.I.3 RECEIVABLES RELATING TO DIRECT INSURANCE, DUE FROM INSURANCE COMPANIES -CURRENT ACCOUNTS

This item primarily consists of receivables stemming from current accounts reflecting the results oftechnical management of co-insurance transactions.

12,331 - 1,48510,8462009

- The amount of receivables with a residual duration of more than 5 years is € 3,949 thousand.

Receivables from agents include € 11,332 thousand for charge-backs against leaving indemnities paid toagents. € 5,268 thousand of the residual amount receivable of € 45,603 thousand was still to be paid on28 February 2010

44,9112009

3,558

E.I.1a Direct insurance receivables, for current year's premiums due from policyholders

E.I.2 RECEIVABLES RELATING TO DIRECT INSURANCE, DUE FROM INSURANCE AGENTS ANDBROKERS

These are premiums in the process of collection, mainly relating to policies issued on delegated basis byother insurance companies, net of related provision of € 1,100 thousand.

6,385 + 2,827

99

of which:

28,6562008

– Advance payouts for claims

The most important items, gross of provision, forming "Other receivables" are:

– Guarantee deposits for rented buildings805

– Amounts receivable from employees

E.III Other receivables2009

This item comprises receivables stemming from current accounts reflecting the results of technicalmanagement of reinsurance treaties net of related provision of € 1,903 thousand.

Change

The "Other receivables" item is net of bad-debt provision of € 857 thousand.

- The amount of receivables with a residual duration of more than 5 years is € 79 thousand.- The amount of receivables with a residual duration of more than 1 year is € 24,255 thousand;

E.I.4 RECEIVABLES RELATING TO DIRECT INSURANCE, DUE FROM POLICYHOLDERS AND THIRDPARTIES FOR RECOVERABLES

- 927

28,895 + 7,13636,031

Change20092008

2009

6,230 5,303 - 9272009

E.II.1 RECEIVABLES RELATING TO REINSURANCE BUSINESS, DUE FROM INSURANCE ANDREINSURANCE COMPANIES

6,230

Tax credits and related interest are considered collectable after more than 1 year. They also include receivables stemming from the company's participation in tax consolidation.

19,897 + 8,759

E.II Receivables relating to reinsurance business

Change2008

Change2008

5,303

The caption shows amounts receivable from policyholders and third parties for deductibles and claimsubrogation.

24,176

171

404

52

– Amounts receivable from Financial Administration

– Amounts receivable for insurance agreements

100

of which:

of which:

FurnitureFittingsOrdinary office machineryElectronic office machineryTotal

3,014 - 143

2009 Change

1,686

908

Below we detail the items forming this sub-category:

2008

51,264

3,0093,211

+ 12,68363,947

- 202

The change refers to purchases made in the year totalling € 982 thousand, disposals net of relativecumulative depreciation for € 31 thousand and annual depreciation of € 1,154 thousand.

Assets are stated at cost less cumulative depreciation.

2008

2008

Change is due to the purchase of vehicle during FY2009.

126

F.I.3 PLANT & EQUIPMENT

- 712008

197

-9562,871

12- + 12Change

82

F.I.2 REGISTERED CHATTELS

-143

2008

175115

1,0383,014

Change

1891,6922009

614

2,871Change

2009

F.I.1 OFFICE FURNITURE & MACHINERY, AND INTERNAL TRANSPORT SYSTEMS2009

F.I Tangible assets and inventoryChange

2008

2009 ChangeCLASS F - OTHER ASSETS

793

2009

101

The analytical changes are shown in the cash flow statement.of which:

of which:

160

44,779

Change

2008 2009

2008

Change

33,976

F.IV Other assets2008

+ 2,08214,077

+ 10,803

This consisted of cash and cheques in the company's treasury as at 31/12/09.

10 - 96

– Invoices to be issued and credit notes to be receivedThe item includes invoices to be issued for € 288 thousand, already described in the Director's Report, paragraph "transaction with subsidiaries"

14,077

2009

F.II.2 CHEQUES AND CASH IN HAND

Year-end liquidity came primarily from the agency network's remittances in December and from the cashincluded in Life segregated accounts.

44,769

2008

F.II.1 BANK DEPOSITS AND POST OFFICE CURRENT ACCOUNTS2009

33,870 + 10,899

Change

Change

– Retroceded commissions from unit funds managers

16,159

– Deferred tax assets relating to previous years' taxable items. For details, reference should be made to the schedule shown later on in the chapter "Information on the balance sheet and income statement"

15,474

521

The main items forming this caption were:

2008 2009

F.IV.2 SUNDRY ASSETS

16,159

106

2009

Change+ 2,082

F.II Cash & cash equivalents

102

of which:

Change

197

- 2,43020,785 18,355

2009

2008

The item refers to prepaid expenses calculated on miscellaneous invoices.

1,606 - 1711,777

2008

16,567

- 15

- 2,244

These are prepaid expense items relating to premises owned by third parties.

182

2008 Change

This refers mainly to interest totalling € 16,528 thousand on fixed-income securities.

2009

Change

18,811

G.1 INTEREST

20092008 Change

2009

CLASS G - ACCRUED INCOME & PREPAID EXPENSES

G.2 RENT INSTALMENTS

G.3 OTHER ACCRUED INCOME & PREPAID EXPENSES

103

LIABILITIES AND SHAREHOLDERS' EQUITY

of which:

+ 13,216

In FY2009 the Company revaluated real estate assets, recognising a specific reserve underShareholders' Equity for € 10,887 thousand, net of the prescribed income taxes of € 318 thousand,pursuant to article 15, clause 20 of the Legislative Decree no. 185 of 29 November 2008. During FY2009the reserve was increased by a further € 52 thousand following a change in criteria for application ofsubstitute-tax rates. This change led to reduction of the amount of the tax itself compared with theprovision made as at 31 December 2008

Change

2008

259,677 272,8932008

A.I Subscribed share capital or equivalent fund

As at 31 December 2009 share capital, fully paid in, consisted of 65,788,948 ordinary shares of a parvalue of € 1.00 each, authorised, issued and fully released.

The item refers to the available reserves, which increased in the year following allocation of 2008earnings as approved at the Annual General Meeting of shareholders on 24 April 2009.

A.VII Other reserves

+ 24,862107,454 132,31620092008

+ 1,897

2008 2009

A.II Share premium reserve

2009

CLASS A - SHAREHOLDERS' EQUITY

2009 Change65,766 + 23

Change

65,789

Reserves and changes that occurred are detailed in the table concerning shareholders' equity.

6,533 8,430

31,098

10,887

A.III Revaluation reserves2008

31,129

2009 Change

+ 31

10,939

2009

Change

2008

+ 52

Change A.IV Legal reserve

104

Changes in shareholders' equity

(€ '000)

/12/2004tion

/12/2005tion

/12/2006

tion

/12/2007

tion =

32,883 = - 6,370 - 26,513

erty reserve = = = 10,887

/12/2008

tion = = = = = - 11,180

23 = 31 = = =

= 1,897 = = 24,862 - 26,759

erty reserve = = = 52 = =

= = = = = 24,290

/12/2009

e item comprise reserve pursuant to Italian Laws 2/2009

10,9398,430

52

24,290 272,893132,31665,789 31,129

- 11,180

54

ngs reserve 2008 =

36,495 215,36232,666 6,090 30,273 6,370 103,468

24,290

=

= = = = = 36,495 36,495

- 4,872 - 4,872

= - 13,579

- 4,200131,876

- 4,200

ngs reserve 2006 =

30,000

=

148,0056,370

10,629

- 13,649

A.IX Net profit for the year2008

37,9392009

20,1425,076

ShareLegal

reserve reserve

Available

reserve

52,509

2,168=

- 15,830

- 4,500

173,110

27,437 27,437

=

=

24,290

Detailed changes in shareholders' equity as at 31 December 2009 are shown in the following table, asrequired by Article 2427 of the Italian Civil Code.

for year

Change

20,330

=

=

6,370 17,779

20,330

Net profit Total

35 =

6,370

= =

=

= 30,499 - 30,942

=

107,454

22,475 - 22,565

= - 5,553

= =

= 15,795

= =

=

21,858

= =

80,993 27,437

= =

ngs reserve 2005

90 = =

2,214 =

=

6,000

=

30,452

8,415

889

=

5,965

=

= 1,716452

=

=

4 earnings

=

= =

=

30,000- 4,500=

=

(1)

RevaluationShare

capital premium

=

=

= =

=

= 20,142

=

65,198

= 20,330

12,689

=

217 = 825 1,042

=

= =

- 5,553

= =

ngs reserve 2007 = 443 = =

=

=

65,766 6,533 31,098 10,887

= = =

37,939 259,677

= 10,887

= 37,939 37,939

105

(€ '000)

on

(*)

eserves (1)

rvesve - Law 72/1983 ve - Law 295/1978ve - Law 413/1991ve - Law 02/2009

s

eservesyear

s' equity

portion of share premium reserve 4,728 (1)portion (2)able portion

tal increases B: To cover losses C: For distribution to shareholders

(€ '000)

8 576/75 9 576/75 1 576/75 8 576/75 8 72/83 8 72/83 8 -

reasonsfor other

3 financial years

Summary of utilisationin the previous

Amount as at

10,939 10,939

2,330910

3,130- A, B, C

26,513

2431 of the Italian Civil Code, the entire amount of this reserve can be distributed only if the legal reserve has reached the limit established bye Italian Civil Code.

272,893

24,290 132,316

24,290 A, B, C

s the share premium reserve and the non-distributable quota earmarked for coverage of deferred costs that have not yet been amortised.

- -

B8,430

2008

13

6,370 1990

1988

3,099

amount

1978in accounts

1980

Year of recognitionVisentini Law

As per

A, B, C-

losses

A, B, CA, B, C

258

132,316

Amount

1,020

13193,933

516 1982

resolution

31,129 A, B, C 31,129

- -

Available31/12/2009

65,789

-

to cover

ordinary

Possibility

utilisation

258

The following table highlights the nature and possibility of use of equity reserves as required by theaforementioned article of the Italian Civil Code

198,674

1988

of

f equity reserves used for capital increases, as required by circular no. 8 issued by the Italian Finance6/03/1984:

106

of which:

For directly insured risksFor inwardly insured risksGross reservesReinsurers' shareRetrocessionaries' shareNet reserves

9,44166

2008

216,216- 66

206,709

2009229,815

220,34943

+ 13,791 230,007

- 23

Change

2008

Change

258+ 13,857

192215,958

CLASS B - SUBORDINATED LIABILITIES

+ 174

4,161

C.I Non-Life business

FY2006 marked the start of the possibility to convert the subordinated loan into the company's shares. Asat 31 December 2009 conversion amounted to € 54 thousand. The Board of Directors of VittoriaAssicurazioni S.p.A. on 12 November 2009 resolved the early repayment of the “Vittoria Assicurazioni –Fixed/Floater 2001-2016” convertible bond. Given this, as allowed by Article 9.2 of the loan’s Regulation,on 1 January 2011 the Company will repay all bonds outstanding on that date.

CLASS C - TECHNICAL RESERVES2008

- 54

+ 102,741

4,107

1,543,7782009

230,007

The breakdown of the premium reserve is shown below (in € '000):

9,615

+ 13,640

2008 2009

+ 13,791Change

216,216

C.I.1 - PREMIUM RESERVE

Changes occurring in FY2007 are shown by business line and type in Appendices 13 and 25 to theExplanatory Notes.

733,145 786,320

1,441,037

Change+ 53,175

2008 2009

2009 Change

The bond loan, called "Vittoria Assicurazioni SpA Fixed/Floater 2001/2016", subordinated and convertibleinto ordinary shares, was fully subscribed with 60% and 40% respectively allocated to the Non-Life andLife businesses, as resolved by shareholders.

107

(€ '000)

Pro-rata temporis reserveUnexpired risks reserveAdditions to pro-rata temporis reserve


2008 2009

Breakdown of the claims reserve ( € '000):

215,958Total direct insurance premium reserve

549,508

8,016

20092008

14221,785208,464

The breakdown of the direct insurance premium reserve, calculated in accordance with the pro-ratatemporis criterion and the specific criteria set out in "Part A - Accounting policies" for each line, is asfollows:

+ 39,073

509,496

Change

- 114

-

2009

229,815

2008

The unexpired risk reserve is related to Aircraft Hulls. The Company did not accounted for any unexpiredrisk reserve for the Other Asset Damage line of business, as all the impact generated by the Hail line ofbusiness are already included in profit and loss, without any impact on future years. We point out that forthis line of business the company accounted for an Additional Reserve, pursuant to articles 16 and 17 ofISVAP regulation no. 16/2008.

+ 6,648

7,494

C.I.2 - CLAIMS RESERVE

- 128522

510,435 549,508

39437,232 43,880

548,683825939

+ 39,187

510,435

+ 39,073

Change

+ 32,553472,681 505,234

108

2008

3,031

C.I.4 - OTHER TECHNICAL RESERVES

+ 3112009

-

The actuarial method identified – agreed with the appointed Motor TPL actuary – is of the chain-laddertype. This method estimates the amount of future payments, until run-off of generations, constructing –using the historical series available – the triangles of cumulative amounts paid (organised by event) andcalculating on the latter the observable development factors. These factors are then applied tocumulative data up to the current balance-sheet year to calculate estimated future payments.For pre-KFK claims an adequate number of claims durations is available. Based on these (separately forproperty-only and hybrid claims), an observable development vector was calculated for the first 9 years.The tail factors were obtained by applying appropriate regression functions. For KFK claims the historicalseries of observable data is limited to just 3 years (and thus to just 2 development factors). In order tocomplete the run-of triangle we used the development-factor vector (property-only or hybrid) obtained forpre-KFK claims, but factoring in appropriate considerations and adjustments based, in particular, onobservation on the different speeds of claim settlement by amount.

Other risks:For the valuation of risks for other businesses, the inventory was used. In addition, observable data wereanalysed and valued according to historical portfolio series.

2009 Change

IBNR claims:Calculation of the reserve for IBNR (incurred but not reported) claims requires estimation for eachbusiness of both the number and average lost of late claims. The estimate was made using as its sourcethe balance-sheet input forms for the years 1998-2009.F M TPL h i i d l f h fThe analysis showed the soundness of the projections and thus the adequacy of the reserve posted untilrun-off of the claim generations still open. Motor TPL reserves have been audited by the appointed MotorTPL actuary as required by Italian Legislative Decree no. 209 of 7 September 2005.

C.I.5 - EQUALISATION RESERVES

3,774 3,774

These reserves refer to direct business and consist of the Health insurance ageing reserve.

Change2,720

2008

Non-Life Business:In order to achieve an estimate of ultimate cost [for the purposes of reserving] closer to operating reality -which features a variety of cases featuring significant differences in the parameters used to measure theentity of claims - the parent company Vittoria Assicurazioni S.p.A. has decided to perform separateanalysis of claims occurring before introduction of the knock-for-knock system (KFK for short) (i.e. eventsbefore 2007) and after its introduction. In doing so, it has in turn split them by type of management andby claims featuring only property damage and those involving hybrid damage (i.e. those with at least onecase of bodily injury).To do this, preliminary methodological work was done to identify an actuarial method permitting accurateestimation of ultimate-cost reserves at the level of detail indicated above.

109

(€ '000)

Land vehicle hullsAircraft hullsCargo (goods in transit)Fire and natural elementsOther property damageCredit

(€ '000)

Risk category Capital sums, Technical Year of issueannuities reserves

1968 - 19771978 - 19891990 - 19971998 - 20012001 - 2007 3%since 2007 3%

1969 - 1979

1980 - 1988

1988 - 1989

1990 - 1996

1997 - 1999

since 2000

2001 - 2004since 2004

since 2003

since 1999

since 1997

since 1998

1986 - 1998

1999 - 2004

* Due to the effect of the contractually guaranteed revaluation, technical rates have increased to:

indexed policies: 4.88% adjustable policies: 3.75% AIL revaluable policies: 3.54%revaluable policies: Vittoria Valore Crescente 3.24% Vittoria Rendimento Mensile 3.03%

(1)

(2) SIM 91 reduced to 60%; mortality rates and LTC (long-term care) rates taken from reinsurers' studies

(3) SIM 91 reduced to 60%; rates taken from reinsurers' studies

119

5Indexed

103Other types

4

3% - 4%

Temporary 8,793,578 123,6704%

313,704

14,844

Index-linked

AIL revaluable

Revaluable

Dread Disease

Total business lines

SIM 91 (mortality table, by individual age, for Italian males, based on the Italian 1991 census) reduced to 62%; SIF 91 (similar mortality table for Italianfemales) reduced to 53%; mortality rates and LTC (long-term care) rates taken from reinsurers' studies.

799,162

9,877,676

4% *

809,674

2009

8,821

10,512

SIM 81

138

2008

Total ordinary

SIM 910% Unit-linked

14,189

9,862,832

52,733 52,835

13,708

Technical basis

+ 49,566

138

The reserves refer solely to direct business and feature the following breakdown by business line:

Line

3% * 4% *

SIM 81-91

(1)

772 852

----

SIM 910%

SIM 71

2.5%

SIM 81

2% *

3% *

1,522

(3)2.5%

(2)

Changes in total technical reserves are detailed by line and type in Appendices 14 and 27 to theseExplanatory Notes.

707,892

24

SIM 81

SIM 91 al 70%

Adjustable

SIM 51

SIM 51

SIM 61

Below we detail the key actuarial assumptions concerning technical reserves for direct business as at 31/12/2009.

SIM 91

SIM 51

SIM91 50% e 70%

3% *

27

2008

1 -

2009

C.II - Life business

9085

234202

2.5%

Change757,458

SIM 91

4%

3% *

4%

598,120

DemographicFinancial

1,345 L.T.C. 104,047

886,110

1,717

Pension fund 8,821 ----

3% * SIM 51

110


-

273

-701,974

C.II.2 COMPLEMENTARY INSURANCE PREMIUM RESERVE

-

Change

+ 46,647

C.II.1 MATHEMATICAL RESERVES

+ 47,732

Breakdown of mathematical reserves (in € '000)

674,1682008

19,926 + 1,085721,900

2008 2009

674,168

655,327

Change2009

395673,773

721,900

Below we show the breakdown of technical reserves for the Life business.

+ 47,854

2009

C.II.3 RESERVE FOR PAYABLE AMOUNTS

The complementary insurance premium reserve refers solely to direct business.

167 156 - 112008

18,841

Change20092008

23,304 + 1,12422,180

The reserve for capital contracts relating to sums insured with a contractually guaranteed annuityconversion factor has been adjusted applying a criterion of a propensity for settlement of benefits in theform of annuities; the assessment of the portfolio as at 31 December 2009 led to a total reserve of € 2,333thousand (€ 2,418 thousand in FY 2008).The ALM (Asset-Liability Management) procedure has requested an integration of technical reserve forthe segregated fund "Vittoria Valore Crescente" for € 530 thousand, as expected by article 47 of ISVAPRegulation no. 21; for the segregated fund "Vittoria Liquinvest", not significant for size, has been disposedan additional reserve for € 82 thousand in agreement with article 47 of ISVAP Regulation no. 21.

- 122+ 47,732

721,627Change

111



(€ '000)


23

11,353

Class VI

Breakdown of other technical reserves (in € '000):

11,352 12,068

Class I

61

-

-

22,931

+ 1,123

2008

-

C.II.4 PROFIT PARTICIPATION AND REVERSAL RESERVE

24

-

7 - 2

+ 5

+ 5-

517

-

The reserve refers to operating expenses and is split as follows by class:

- -0

Change

24

-

29

2009 Change

22,180-

+ 751

C.II.5 OTHER TECHNICAL RESERVES

10,534 2008

+ 7162008

12,069

200911,322

29

+ 7

+ 111+ 1,12422,180

2008

+ 716

Change+ 716

-

-

1023,293

24

2008

29

2009

Breakdown of the profit participation and reversal reserve (in € '000):

11,330

Change

Change2009

Breakdown of reserve for payable amounts (in € '000):

23,304373-

22,170

24

2009

2009

632 74 41 86

672 -

12,06911,3531 1

Class III

-

+ 373

+ 5

2008

Class IVClass V

+ 71623

12,046-

112

of which:

Index-linked:Unit-linked:

of which:

69,467

+ 3,086

Change2008

75,800

D.I Reserves for unit- and index-linked policiesChange2008

2009

66,979

1,263

– Use of provision for payment of instalment-based tax demand

2009

63,893

5,574

The change was due to:– Provisioning of deferred tax liabilities relating to revaluation of exchange rates for reinsurance balances + 49– Reversal of deferred tax liabilities relating to revaluation of exchange rates for reinsurance balances in previous financial years

2009

- 102

D.II Reserves relating to pension fund management

+ 6,333

The breakdown by product type is as follows:

1,365

CLASS E - RESERVES FOR CONTINGENCIES AND OTHER CHARGES2008

2009

522

E.2 TAX PROVISION

– Use of deferred tax liabilities relating to capital gains made in previous financial years for use of portion pertaining to the financial year in question

Change

2008

+ 14,143

+ 3,247

2009

8,821Change

+ 52,836

2008 Change624

- 204

+ 101

- 102

- 48

CLASS D - TECHNICAL RESERVES WHEN INVESTMENT RISK IS BORNE BY POLICYHOLDERS AND RESERVES RELATING TO PENSION FUND MANAGEMENT

113

(€ '000)

of which:

Consisting of:

Change

- 4,704

CLASS G - PAYABLES AND OTHER LIABILITIES

2008

G.I.1 - PAYABLES ARISING FROM DIRECT INSURANCE, DUE TO INSURANCE AGENTS ANDBROKERS

5,017

2009

2008

28,258

2009

3,651

23,554

2008

G.I - Payables arising from direct insurance business2008

- 1,366

62,450

2008 2009 Change E.3 OTHER PROVISIONS

-

2008

741

2009

741

- 2,142

- 1,128

2,496

Change

7,098Change2009

These amounts refer to balances not yet settled and to indemnities payable for cessation of agencymandates.

2008 2009 Change+ 57

G.I.2 - PAYABLES ARISING FROM DIRECT INSURANCE BUSINESS, DUE FOR CURRENT ACCOUNTSWITH OTHER INSURERS

2,439

This caption consists of amounts payable arising from current accounts comprising the technical resultsof co-insurance transactions.

CLASS F - DEPOSITS RECEIVED FROM REINSURERS

-

The caption relates to the following provision:

741 741

Sofigea - pursuant to Article 7, Italian Legislative Decree 576/78 (a financial company founded by ANIA associates to fund insurers taking over certain types of policies ceded by companies being compulsorily wound up - the company itself started voluntary liquidation in 1990)

Change

64,592

8,226

These deposits relate to the technical reserves of reinsured direct business.

Change2009

114

– Increase due to provisioning for the year- 1,617

+ 1,724

As required by Article 2427, 6th paragraph, of the Italian Civil Code and in compliance with ItalianLegislative Decree no. 173 of 26 May 1997, we declare that the payables in question must be taken tohave a residual duration of more than 5 years.

752

Change

- 365

Change

G.I.3 - PAYABLES ARISING FROM DIRECT INSURANCE, DUE TO POLICYHOLDERS FORPERFORMANCE DEPOSITS AND PREMIUMS

2008 2009

and to advance payouts granted

– Transfers to Pension Fund and Social Security fund

4,650 4,392 - 2582009 Change2008

2008

This item comprises payables arising from the current accounts comprising the technical results ofreinsurance dealings.

7,451 - 7828,233

The payables in question must be taken to have a residual duration of more than 5 years.

- 25199224

G.VII - Reserve for employee severance indemnities

+ 206

2009

G.I.4 - PAYABLES ARISING FROM DIRECT INSURANCE, DUE TO GUARANTEE FUNDS FORPOLICYHOLDERS

20092008

546Change

G.II - Payables, arising from reinsurance business, due to insurers and reinsurers

This item mainly consists of the amount payable to CONSAP for the contribution to the fund for road-accident victims.

– Decrease due to indemnities paid out for severanceThe overall change was due to the following movements:

The item refers to the performance deposits paid by policyholders for insurance coverage.

115

of which:

G.VIII.1 - OTHERS PAYABLES : POLICYHOLDERS' TAXES

G.VIII.2 - OTHER PAYABLES: MISCELLANEOUS TAXES

G.VIII.3 - OTHER PAYABLES: SOCIAL SECURITY & PENSION AGENCIES

G.VIII.4 - OTHER SUNDRY PAYABLES

2008 2009 Change

+ 1,74410,159

2008

30,325

+ 192

+ 83

2009 Change

The most significant items were as follows:

1,933Change

1,258

The item shows amounts payable to the Financial Administration for insurance taxes on premiumscollected.

+ 868+ 477

–Withholdings on wages & salaries

Change+ 2,322

+ 303

– Fees payable to professionals– Trade payables

2009

+ 2,638

2008

+ 6,057

The item mainly consists of:

+ 1,986

14,653

G.VIII - Other payables

1,561

28,0032009

2008 2009

2,016

2008

11,903

+ 2,268

– Withholdings on fees for self-employed staff and advisors

– Amounts payable to subsidiaries for tax consolidation andVAT Group

– Amounts payable to employees for payments settled in January 2010 and also for accruals for holidays not taken

This item consists mainly of amounts payable to INPS (the state pension & welfare agency) on salariespaid in December.

14,845Change

116

of which:

of which:

– Technical accounts to be settled with agencies + 358

The items were as follows:

2008

G.IX.3 SUNDRY LIABILITIES

This is provision for agent commissions payable on premiums that were in the process of collection atyear-end.

11,29410,853

ChangeCLASS H - ACCRUED LIABILITIES & DEFERRED INCOME

2008 2009

- 16

277

2008 2009

- 3

- 19

H.1 INTEREST

258

Change226

Change

229

H.3 OTHER ACCRUED LIABILITIES & DEFERRED INCOME2008 2009

48 32

This item consists mainly of deferred commissions on business with brokerage companies.

This is interest accruing on the convertible subordinated loan and payable to bondholders on 1 January2010.

Change

2009

- 2,296

G.IX.2 COMMISSIONS FOR PREMIUMS UNDER COLLECTION2008 2009

Change- 2,737

+ 441

20092008

G.IX Other liabilities

– Invoices and notes to be received from suppliers

4,627

Change

13,18415,480

+ 1,532

1,890

117

of which:

of which:

6,468

II1 SURETIES2008 2009 Change

+ 1456,218 6,363

This item relates to commitments for private equity operations.

GUARANTEES, COMMITMENTS, AND OTHER MEMORANDUM ACCOUNTSChange

I Guarantees given

-20,50020,5002008 2009 Change

2008

- 1,295

IV Commitments

2009

This items refers to pledging of securities in the company's favour.

250 + 1,000

2008 Change

17,3102009

2009

20,500

2009

2008

The breakdown of these items is shown below.

+ 1,145

II.4 COLLATERAL

1,250

2009

-Change

20,500

1,305,513 1,382,621 + 77,108

7,613

I .3 OTHER PERSONAL GUARANTEES2008

Change

This item refers to a letter of patronage in favour of Banca Intesa SpA for concession of credit facilities tothe subsidiary Vittoria Immobiliare SpA.

2008

II Guarantees received

Change18,605

This item consists mainly of the surety set up in relation to the knock-for-knock (i.e. direct indemnity)system.

118

These are owned securities lodged in accounts under administration with banks and other issuers.

1,324,484

3,889

V Third-party assets

Change

2008

2008 2009 Change

2008

1,250,477

5,574 + 3,2478,821

VI Assets pertaining to pension funds managed for and on behalf of third parties

2009 Change+ 43,893

This item consists of savings accounts set up in favour of eligible claimants, as well as registeredsecurities guaranteeing performance bond policies.

VII Securities lodged with third parties

+ 74,007

The item refers to pension fund assets held by the custodian bank.

2009

119

INCOME STATEMENT

I.10 - RESULT OF NON-LIFE TECHNICAL ACCOUNT

2008 2009 Change37,902 23,165 -14,737

2008 2009

I.1 - Premiums, net of outward reinsurance 470,861 497,910The breakdown of premiums by business has beenindicated in the Management Report, whilstclassification by line and type is shown in Appendix 25to the Explanatory Notes.

a) Gross premiums written 516,207 542,013b) (-) Ceded premiums 30,535 30,443c) (-) Change in gross premium reserve 14,387 13,921

d) Change in reinsurers' share of premium reserve

-424 261

I.2 - (+) Portion of investment income transferred tonon-technical account

30,262 17,118

The item includes income on investments transferredfrom the non-technical account as required by Article55 of Italian Legislative Decree no. 173/97. Theamount to be transferred has been calculated as laiddown by ISVAP Regulation no. 22 of 4 April 2008.

I.3 - Other technical income, net of outwardreinsurance

3,680 4,434

This item comprises: - Reversal of commissions for previous years' cancelled premiums

27 133

- Other technical items mainly relating to recoveries of settlement costs related to claims subject to knock-for-knock agreements and ANIA incentives for scrapping damaged vehicles.

3,508 3,446

- Use of bad-debt provision 145 854

Technical costs and revenues are classified as follows:

120

2008 2009

I.4 - Charges relating to claims, net of recoveries andoutward reinsurance

339,645 365,426

a) Amounts paidaa) Gross amount 359,973 371,728bb) (-) Reinsurers' share 35,373 23,200They relate to indemnities, direct expenses andsettlement costs for partial or definitive payments ofclaims reported during the year or reserved at the endof the previous year.b) Change in recoveries net of reinsurers' shareaa) Gross amount -6,184 -13,231bb) (-) Reinsurers' share 335 -1,903This is the balance between amounts to be recoveredfrom policyholders and third parties for deductibles,subrogation and remedying of claims at the previousyear-end, the amounts recovered during the year andamounts yet to be recovered at year-end.

c) Change in claims reserveaa) Gross amount 5,577 39,112bb) (-) Reinsurers' share -15,987 10,886The item includes estimated indemnities, direct andsettlement costs to be paid in future years for claimsreported during the current and previous years andnot yet settled as at 31 December.

I.5 - Change in other technical reserves, net ofoutward reinsurance. It comprises the change in theageing reserve.

481 0

121

2008 2009I.7 - Operating costs 123,674 126,530They relate to purchase and collection commissionsproportional to premiums written, incentives accruedby brokers and agents and common costs incurred forthe sales network. The caption also includesoverheads and depreciation of tangible assets notallocated to claims settlement and investments. Thiscaption and that relating to the Life business (II.8)include costs repaid to the associate companiesS.In.T.SpA (€ 262 thousand) and Movincom (€ 20thousand) and to the subsidiaries Gestimmobili Srl (€249 thousand).

a) Acquisition commissions 80,068 82,952b) Other acquisition costs 29,356 26,584c) Change in commissions and other acquisition costs to be amortised

1,264 1,028

d) Premium collection commissions 7,055 7,150e) Other administrative expenses 14,512 16,740f) (-) Commissions received by reinsurers 8,581 7,924

I.8 - Other technical charges, net or outwardreinsurance

2,814 4,032

The caption includes items relating to: - Technical cancellations of premiums, cancellations of uncollectable premiums, and bad-debt provisioning

383 2,002

- Other technical charges mainly relating to servicessupporting insurance covers and costs for premiumsunder litigation. The fee paid tor use of technicalservices to the associate company S.In.T S.p.Aamounted to € 540 thousand.

2,164 2,024

- Other technical charges mainly relating to CARD management fees

267 5

I.9 - Change in equalisation reserves 287 311

122

II.13 - RESULT OF LIFE TECHNICAL ACCOUNT

2008 2009 Change8,006 6,930 -1,076

2008 2009

II.1 - Premiums, net of outward reinsurance 112,248 127,081

The breakdown of premiums by business has beenindicated in the Management Report, whilstclassification by line and type is shown in Appendix 27to the Explanatory Notes.

a) Gross premiums written 114,511 129,294b) (-) Ceded premiums 2,263 2,213

II.2 - Investment income 36,948 35,482 This consists of:a) Income from equity investmentsThe caption includes the dividend collected from andrecognised by the subsidiaries Vittoria ImmobiliareSpA (€ 1,113 thousand) and Immobiliare Bilancia Srl(€ 2,772 thousand) and associate Touring Vacanze Srl(€ 50 thousand).

2,411 3,935

b) Income from other investmentsbb) Other investments 34,048 30,763 This item includes: - Income on fixed-income securities for interest and issue/trading differentials

33,710 30,101

-Interest on loans against policies 100 69 - Income from units in mutual investment funds 220 575 -Interest on reinsurance deposits 18 18 c ) Write-backs on investments 134 661 d) Profits made on sale of investments 355 123 The latter refer to: - Capital gains on repayment and sale of fixed-income securities

355 123

Technical costs and revenues are classified as follows:

123

2008 2009II.3 - Income and unrealised capital gains relating toinvestments benefiting policyholders bearing the riskand investments relating to pension fundmanagement. A breakdown of unrealised gainsrelating to investments benefiting policyholdersbearing the risk is shown in Appendix 22 to theseExplanatory Notes.

3,551 16,850

II.4 - Other technical income, net of outwardreinsurance

711 671

The caption includes commissions relating to first-yearpremiums cancelled and commissions retroceded bymoney managers in relation to investments of unit-linked premiums and pension funds.

II.5 - Charges relating to claims, net of outwardreinsurance

134,202 114,736

They refer to claims, policies that have matured,surrenders, and annuities.a) Sums paid aa) Gross amount 143,654 115,934 bb) (-) Reinsurers' share 912 878b) Change in reserve for payable amounts aa) Gross amount -8,561 -197 bb) (-) Reinsurers' share -21 123

II.6 - Change in mathematical reserves and othertechnical reserves, net of outward reinsurance

-43,539 32,294

This refers to the change in technical reserves, thecontent of which is illustrated in greater detail in the"Accounting Policies" chapter.

a) Mathematical reserves aa) Gross amount -17,588 26,643 bb) (-) Reinsurers' share 886 1,085b) Complementary insurance premium reserve aa) Gross amount -13 -18c) Other technical reserves aa) Gross amount 814 420 bb) (-) Reinsurers' share -1 -1d) Technical reserves when investment risk is borne by policyholders or relating to pension fund management

aa) Gross amount -25,866 6,333

124

2008 2009

II.7 - Reversals and profit participation, net of outwardreinsurance

12 13

This item comprises amounts paid in the year for profitparticipation, as well as the change in the relatedreserve.

Of which:- Direct business 12 13- Indirect business - -

II.8 - Operating costsThey relate to purchase and collection commissionsproportional to premiums written, incentives accruedby brokers and agents and common costs incurred forthe sales network. The caption also includesoverheads and depreciation of tangible assets notallocated to investment-related costs.

20,099 17,403

a) Acquisition commissions 10,463 7,431b) Other acquisition costs 4,865 5,210c) Change in commissions and other acquisition costs to be amortised

741 261

d) Premium collection commissions 1,431 1,316e) Other administrative expenses 3,021 3,602f) (-) Commissions and profit participation receivedby reinsurers

422 417

II.9 - Capital and financial charges 10,532 2,449They relate to charges for, write-downs and loss onsale of investments included in Class C of balancesheet assets.

a) Investment management costs and interestexpense

2,297 2,407

of which: - Costs relating to equity portfolio 40 32 - Costs for fixed-income securities for issue/ trading differentials, taxes, and operating and personnel expenses

1,362 1,453

- Costs relating to mutual investment funds 4 3 - Interest on deposits from reinsurers 891 919

125

2008 2009

b) Investment write-downs 8012 0They refer to write-downs of the equity portfolio.Reference should be made to Appendix 23 toExplanatory Notes for details of this item.

c) Losses on sale of investments 223 42These mainly relate to losses on repayment or sale offixed-income securities held for trading.

II.10 - Capital and financial charges and unrealisedcapital losses relating to investments benefitingpolicyholders bearing the risk and to investmentsconnected with pension fund management

23,945 2,184

Details of charges and unrealised capital lossesrelating to the above types of investments areprovided in Appendix 24 to these Explanatory Notes.

II.11 - Other technical charges, net of outwardreinsuranceThe item refers to technical cancellations and lossesdue to uncollectable insurance premiums..

202 306

II.12 The caption includes investment incometransferred to the non-technical account as requiredby Article 55 of Italian Legislative Decree no. 173/97.The amount transferred has been calculated inaccordance with ISVAP Regulation no. 22 of 4 April2008.

- 3,768

126

RESULT OF NON-TECHNICAL ACCOUNT

2008 2009 Change6,884 4,965 -1,919

2008 2009III.3 - Income from Non-Life investments 49,106 23,780The caption consists of the following items::a) Income from equity investments 25,111 1,713This relates to collection of dividends. The amountcomprises dividends recognised by the subsidiariesVittoria Immobiliare SpA (€ 661 thousand) andImmobiliare Bilancia Seconda S.r.l. (€ 852 thousand),by the associate Yarpa SpA (€ 62 thousand) and byBanca Passadore SpA (€ 138 thousand).

b) Income from other investmentsaa) Land and buildings 200 202The item includes actual rents, expense recoveries,and other revenues.

bb) Other investments 23,019 19,443The item includes: - Income on fixed-income securities for interest, and issue/trading differentials

22,507 19,443

- interest on mortgages and loans 414 0

The loans are been reclassified in Life Business

- proventi finanziari da quote di fondi comuni di investimento

- Interest on reinsurance deposits 98 0c) Write-backs on investments 72 2,317

III.4 - (+) Investment income transferred to the Lifetechnical account

- 3,768

Reference should be made to the details given in thesection concerning the Life technical account.

Non-technical costs and revenues are classified as follows.

127

2008 2009III.5 - Capital and financial charges of Non-Lifebusiness

11,811 2,341

They relate to charges for, write-downs and loss onsale of investments included in Class C of balancesheet assets. Their breakdown is detailed below:

a) Investment management costs and interest 1,709 1,759 of which: - Condominium expenses, taxes, and building management costs

143 125

- Operating and personnel expenses relating to the equity portfolio

99 83

- Costs for fixed-income securities relating to issue/trading differentials, taxes, and operating and personnel expenses

1,223 1,454

- Costs relating to mutual investment funds - 3 - Interest on deposits from reinsurers 244 94 b) Investment write-downs 10,098 495 They refer to write-downs of fixed-income securities.

c) Loss on sale of investments 4 87

III.6 - (-) Investment income transferred to the Non-Lifetechnical account.

30,262 17,118

Reference should be made to the details given in thesection concering the Non-Life technical account.

III.7 - Other income 3,826 2,944This caption includes income other than that oninvestments, such as that relating to the generalbalance-sheet classes E - Receivables and F - Otherassets.Their breakdown is shown below: -Current-account interest from reinsurers and insurers

26 39

- Interest on bank current accounts 2,299 431 - Other interest accruing mainly on tax receivables and recoveries from agents

180 189

- Interest on Life/Non-Life liaison account 20 0

- Other financial income 384 490 - Use of provision for contingencies & charges and of bad-debt provision

233 1,343

- infra-group charges 497 452 - Foreign-exchange gains on technical and financial items

187 0

128

2008 2009III.8 - Other charges 4,846 6,628 This caption includes charges for assets other thaninvestments, relating to the general balance-sheetclasses E - Receivables and F - Other assets.

Their breakdown is detailed below: -Current-account interest to reinsurers and insurers 62 100

- Interest on bank current accounts 83 42 - Bank expenses and charges 232 400 - Interest on Life/Non-Life liaison account 20 -

- Other financial charges 17 53 - Bad-debt provisioning - 343 - annual amortisation of debt provision 318 - - annual amortisation of SACE Goodwill - 887 - Annual amortisation of intangible assets 3,674 4,135 - accantonamento al fondo imposte - 101 - Interest on subordinated loan 229 226 - Foreign-exchange losses on technical and financial items

- 71

- Taxes for the year 211 270

III.10 – Extraordinary income 1,039 709 This item consists of income from the sale of long-terminvestments and other profits made on the sale ofassets classified in the general balance-sheet Class F -Other assets.Their breakdown is as shown below: - Capital gains on sale of property assets 433 - - Capital gains on sale of fixed-income securities 309 82 - Capital gains on sale of other tangible assets 1 4 - Incidental income 296 621 - Capital gains on sale of equities - 2

III.11 - Extraordinary charges 168 149 This item consists of charges relating to the sale oflong-term investments and other losses arising fromthe sale of assets classified in the general balance-sheet Class F - Other assets.Their breakdown is as shown below: - Capital losses and expenses on sale of property assets

58 -

- Capital losses on sale of equity interests 5 - - Capital losses on sale of bond - 95 - Capital losses on sale other tangible assets 1 28 - Incidental costs and charges 104 26

129

III.15 NET PROFIT FOR THE YEAR

2008 2009 Change37,939 24,290 -13,649

2008 2009

I.10 - Result of Non-Life technical account 37,902 23,165

II.13 - Result of Life technical account 8,006 6,930

Result of non-technical account 6,884 4,965

III.13 - PROFIT BEFORE TAX 52,792 35,060

III.14 - Taxation 14,853 10,770 This consists of corporate income tax (Italian acronym= IRES) and regional business tax (Italian acronym =IRAP) payable on the year's profit.

130

IRES IRAP actual theoretical actual theoretical

IRES

Profit before taxation 35,060 9,641 27.50%

+ Temporary differences deductible in future years 17,838

- Temporary differences taxable in future years 180

+ Use of temporary differences -3,814

Permanent differences:

+ Non-deductible interest and taxes 152

+ Non-deductible accruals, costs and expenses 459

+ Investment Portfolio 495

- Tax-exempt income 8

- Dividends 5,406

- Other deductible items 778

Taxable base 43,818

Current IRES 12,050

IRAP

Profit before taxation 35,060 1,690 4.82%

- Profit & Loss items not taxable/deductible for IRAP purpose 4,957

Life insurance business profit & loss + Non-life insurace business profit & loss 30,103

+ Permanent taxable differences 38,639

- Permanent deductible differences 15,645

Theoretical taxable base 53,097

- Use of temporary differences 3,396

Taxable base 49,701

Current IRAP 2,396

Total current Tax relating to 2009 14,446

Deferred tax assets

Taxable base for deferred tax assets of the previous year 40,703 16,630

(Increase - Decrease) in deferred tax assets during the current year 13,143 -2,800

Taxable base for deferred tax assets of the current year 53,846 13,830

Deferred IRES assets on (Increase - Decrease) 3,605

Deferred IRAP assets on (Increase - Decrease) -132

Total deferred tax assets relating to 2008 3,473

Deferred tax liabilities

Taxable base for provision for deferred tax liabilities of the previous year 1,176 0

(Increase - Decrease) in the provision for deferred tax liabilities during the current year -736 0

Adjustments to the provision for deferred tax liabilities of the previous year 0 0

Taxble base for provision for deferred tax liabilities of the current year 440 0

Deferred IRES liabilities on (Increase - Decrease) -202

Deferred IRAP liabilities on (Increase - Decrease) 0

-202

Total IRES relating to 2009 8,243 23.51%

Total IRAP relating to 2009 2,527 7.21%

Total tax relating to 2009 10,770 11,331 30.72% 32.32%

(in thousands of Euros)

Reconciliation between the tax charge recognised in the financial statements and theoretical tax charge

The individual captions relating to IRES/IRAP temporary differences are detailed in the schedule of deferred taxes attached to these notes.

The above schedule compares taxes related to local financial statements, apart from variances due to tax rules application in determining IRES and IRAP amounts with taxes related to tax rules compliance.

Taxable base Tax

Total deferred tax liabilities relating to 2009

Tax rate

131


Description of temporary difference IRES+IRAP

Taxable base tax rate Taxable base tax rate Tax

2008 deferred tax assets

Exchange rate fluctuations 171 47

Depreciation of tangible assets 488 405 153

Entertainment costs 54 54 18

Provisions for bad debts 10,115 2,782

Directors' fees 178 49

Foreign bonds 13 4

Change in non-life claims reserve (as per decr. 209/2002) 29,684 16,171 8,943

40,703 27.50% 16,630 4.82% 11,995

2009 use to deferred tax assets




Provisions for bad debts 1,451 399


Foreign bonds -

Change in non-life claims reserve (as per decr. 209/2002) 1,767 3,234 642

3,729 27.50% 3,462 4.82% 1,192

2009 increase in deferred tax assets


Depreciation of tangible assets 245 67

Entertainment costs

Provisions for bad debts 791 218


Goodwill 662 662 214

Foreign bonds

Change in non-life claims reserve (as per decr. 209/2002) 14,814 4,074

16,872 27.50% 662 4.82% 4,672

2009 deferred tax assets




Provisions for bad debts 9,455 2,600


Goodwill 662 662 214

Foreign bonds 13 4

Change in non-life claims reserve (as per decr. 209/2002) 42,731 12,937 12,376

53,846 27.50% 13,830 4.82% 15,474

SCHEDULE OF DEFERRED TAXES PURSUANT TO ARTICLE 2427 OF THE CIVIL CODE

IRES IRAP

132


Description of temporary difference IRES+IRAP

Taxable base tax rate Taxable base tax rate Tax

2008 deferred tax liabilities

Division by instalments of realised gains on Investment Portfolio 654 - 180

Division by instalments of realised gains on Real Estate 347 95

Exchange rate fluctuations 174 - 48

1,175 27.50% - 4.82% 323

2009 use to deferred tax liabilities

Division by instalments of realised gains on Investment Portfolio 654 - 180



915 27.50% - 4.82% 252

2009 increase in deferred tax liabilities

Division by instalments of realised gains on Investment Portfolio - - -

Division by instalments of realised gains on Real Estate - -


180 27.50% - 4.82% 50

2009 deferred tax liabilities

Division by instalments of realised gains on Investment Portfolio - - -



440 27.50% - 4.82% 121

SCHEDULE OF DEFERRED TAXES PURSUANT TO ARTICLE 2427 OF THE CIVIL CODE

IRES IRAP

133

Part C: Other information Solvency margin As regards the solvency margin, completion of regulatory schedules, issued by the ISVAP with its Regulation no. 19 of 14 March 2008, reveals the following amounts (in €‘000): Non - life business Life business Total

Required Solvency Margin 83,588 36,625 120,213

Solvency Margin Assets 148,734 86,687 235,421

Surplus/Deficit 65,146 50,062 115,208

Ratio 1.8 2.4 2.0 If consolidated companies had been equity-accounted using the method typical of consolidated accounts, instead of at historical cost, net capital relating to available equity (i.e. excluding the portion assigned to Life segregated accounts) would have been € 70,451 thousand higher, as highlighted in the following table:

(€'000)

Companies Book value in

financial statements

Shareholders' Equity (Company

share)

of which: net profit for the year

Difference between book

value and equity method value

Immobiliare Bilancia S.r.l. 16,062 21,322 160 5,260

Immobiliare Bilancia Prima S.r.l. 5,400 12,263 -19 6,863 Immobiliare Bilancia Seconda S.r.l. 1,250 1,303 59 53 Yam Invest N.V. 6,594 65,942 70 59,348

Gima Finance S.A. 7,868 7,292 3,565 -576Laumor Holdings S.a.r.l. 9,503 7,935 -2,947 -1,568

White Finance S.A. 5,235 6,306 -3,533 1,071

51,912 122,363 -2,645 70,451 As a result of the above considerations, the items forming shareholders’ equity increased from € 235,421 thousand to € 305,872 thousand. This, compared with the required amount of solvency margin of € 120,282 thousand, leads to a ratio of 2.54.

(importi in migliaia di euro)

Ammontare del margine di solvibilità Danni e Vita 120,282

Elementi costitutivi margine di solvibilità Danni e Vita 235,421 Maggior Patrimonio Netto società oggetto di consolidamento 70,451

Elementi costitutivi del margine di solvibilità 305,872 Rapporto 2.54

134

Assets allocated to coverage of technical reserves

31/12/08 31/12/09

731.9 785.3 53.4

Securities issued or secured by Governments 553.1Bonds or other similar securities 1.9Units of undertaking for collective investment 0.1Shares traded in a regulated market 11.2Shares not traded in a regulated market 20.5Real Estate 95.2Other investments 6.7Receivables 88.0Bank accounts 4.7Othe assets 3.9

785.3

100.0%

31/12/08 31/12/09

Mathematical and Other Technical Reserves 685.3 735.1 49.8Reserve for payable amounts 22.2 22.0 -0.2

707.5 757.1 49.6

Securities issued or secured by Governments 637.3Bonds or other similar securities 41.1Units of undertaking for collective investment 0.0Shares traded in a regulated market 6.5Shares not traded in a regulated market 2.9Real Estate 31.7Other investments 9.8Receivables 11.5Bank accounts 13.8Othe assets 2.5

757.1

100.0%

31/12/07 31/12/09

69.5 75.8 6.3

Total Assets Allocated 69.5 75.8 6.3

Change

Technical Reserves when investment risk is borne by policyholders

Total Assets Allocated (B)

% of coverage (B/A)

(€ million)

Life Business(€ million)

Change

Technical Reserves (A)

Change

Technical Reserves (A)

Total Assets Allocated (B)

% of coverage (B/A)

Non-Life Business(€ million)

135

Finance expense allocated to balance sheet assets Pursuant to the first paragraph, point 8, of Article 2427 of the Italian Civil Code, we declare that no finance expense was capitalised in the year in amounts posted in balance sheet assets. Employees The cost of salaries, related social security charges, severance indemnity provisioning, and of miscellaneous personnel-related expenses are shown in Appendix 32. Employees on the payroll as at 31 December 2009 numbered 429 heads (420 heads to 31 December 2008). The average number of employees on the payroll during the year, by category and calculated according to in-force presence, was as follows:

Managers 20 19 Officers 122 116 Administrative staff 284 282

Total 426 417

31/12/09 31/12/08

136

Breakdown of direct insurance premiums by business category and geographical area The breakdown of the company’s premiums – all referring to the Italian portfolio - by official Ministerial business line is shown in Appendices 19 and 20. The following table shows the geographical breakdown of premiums, calculated on the basic of agency locations.

(€/000)

Non-Life Business Life Business

Regions Agencies Premiums % Premiums %

NORTHEmilia Romagna 24 40,388 7,739 Friuli Venezia Giulia 4 6,520 1,917 Liguria 11 18,990 2,298 Lombardy 68 151,026 43,619 Piedmont 32 36,476 3,893 Trentino Alto Adige 5 8,094 700 Valle d'Aosta 1 2,360 288 Veneto 25 36,181 5,955

Total 170 300,035 55.4 66,409 51.4CENTREAbruzzo 9 21,931 6,340 Lazio 27 73,461 39,049 Marche 13 12,288 3,882 Tuscany 24 40,582 4,553 Umbria 12 23,811 3,481

Total 85 172,073 31.8 57,305 44.3SOUTH AND ISLANDSBasilicata 2 4,989 690 Calabria 2 4,007 106 Campania 7 14,469 1,843 Puglia 4 14,983 1,419 Sardinia 4 8,012 128 Sicily 9 22,951 1,393

Total 28 69,411 12.8 5,579 4.3

Overall total 283 541,519 129,293

137

Real estate assets Real estate assets are listed in the following table (in € ‘000):

(€/000)

AT 31 DECEMBER 2009

Value before Monetary Fiscally-driven Law 02/2009 T o t a l

and voluntary

revaluations revaluations revaluations Revaluations 2008

BUILDINGS HELD FOR INVESTMENT

Operating buildings

Milano - Via V. Colonna 2 306 0 0 477 783

Total operating buildings 306 0 0 477 783

Buildings used by third partiesAcqui - Piazza Matteotti 25 53 10 77 63 203

Alessandria - P.za Carducci 1 79 79 0 102 260

Asti - C.So Alfieri 130 50 57 0 264 371

Biella - Piazza V. Veneto 16 17 43 34 274 368

Brescia - Via Saffi 1 121 67 0 395 583

Busto Arsizio - Via C. Tosi 8 80 31 0 197 308

Como - V.Le Rosselli 13 83 22 77 549 731

Cremona - P.Za Roma 7 104 24 23 271 422

Cuneo - Piazza Europa 26 61 75 0 420 556

Ferrara - Via Don Minzoni 17 97 10 93 287 487

Gallarate - P.Za Risorgimento 10 35 7 44 98 184

Livorno - Via Grande 225 128 5 0 187 320

Lodi - C.So V. Emanuele Ii° 12 13 10 41 209 273

Milano - Via Ariosto 21 2,468 0 0 609 3,077

Milano - Via B. D'Alviano 2 21 46 62 532 661

Milano - Via Correggio 3 145 0 0 95 240

Modena - Via Ganaceto 39 33 13 46 553 645

Napoli - Via S. Carlo 26 63 45 155 1,197 1,460

Parma - Via Longhi 1 87 42 62 439 630

Perugia - Via Pellas 44 217 18 0 315 550

Pescara - Via Sulmona 2 35 37 0 192 264

Pisa - Piazza Toniolo 10 87 41 52 343 523

Pistoia - Via S. Fedi 67 75 39 0 176 290

Pontedera - C.So Matteotti 108 61 41 0 205 307

Rovigo - C.So Del Popolo 4 63 24 0 121 208

Sondrio - Via C. Alessi 16 54 15 0 97 166

Terni - Via Beccaria 22 17 28 0 195 240

Trieste - Via Torrebianca 18 15 36 21 136 208

Udine - Via Carducci 4 39 72 0 247 358

Varese - Via Mazzini 1 158 71 41 289 559

Venezia Mestre - Via Verdi 4 47 65 26 330 468

Verona - C.So Porta Nuova 53 245 257 129 1,062 1,693

Vicenza - C.So Palladio 155 84 76 36 280 476

Total buildings used by third parties 4,935 1,406 1,019 10,729 18,089

TOTAL BUILDINGS HELD FOR INVESTMENT 5,241 1,406 1,019 11,206 18,872

TOTAL BUILDINGS 5,241 1,406 1,019 11,206 18,872

138

Statement of source and application of funds

31/12/2009 31/12/2008

SOURCE OF FUNDS Net profit for the year 24,290 37,939 Positive or negative adjustments relating to

unsettled positions:

Net increase (+) decrease (-) in:

claims reserve 33,304 20,007 premium reserve 13,951 24,340 non-life business technical reserves 53,690 -43,545 Increase (-) Decrease (+) in receivables from policyholders -3,005 4,648 Net increase (-) decrease (+) in

agent, reinsurer and coinsurer balances -1,361 -31,833 Net increase (-) decrease (+) in

intangible assets -9,263 -1,829 Increase in specific provisions -102 -783 Employees' leaving entitlement:

accruals 1,724 1,618 utilisation -1,982 -2,346 Increase (-) decrease (+) in other receivables,

sundry assets and accrued income -15,346 -10,840 Increase (+) decrease (-) in other sums payable,

other liabilities and accrued expenses 186 1,834 Adjustments to securities -2,483 6,698 Property revaluation reserve - 10,887 Adjustments to class D securities -4,449 7,572

Funds generated by ordinary activities 89,154 24,367 Disposal of fixed assets - 567 Subordinated loan 55 - Sale of bonds and other fixed-interest securities 177,119 206,777 Sale of equity investments 8,293 8,139 Sale of unit trusts 5,290 5,070 Sale of class D 21,905 40,219 Repayment of loans and borrowings 4,932 3,528 Other financial disinvestments 10,000 - Funds generated by disinvesting activities 227,594 264,300 Total funds generated 316,748 288,667

(€/000)

139

31/12/2009 31/12/2008

APPLICATION OF FUNDS Buildings 35 - Fixed-interest securities 241,787 219,461 Investments 19,459 37,042 Unit trusts 5,000 - Other financial investments 1,039 10,000 Class D investments 23,789 21,926 Loans to third parties 3,656 7,010 Previous year's dividend distributed 11,180 5,553

Total application of funds 305,945 300,992 Increase/decrease in liquid funds 10,803 -12,325 TOTAL 316,748 288,667 Liquid funds at the beginning of the year 33,976 46,301

Liquid funds

at the end of the year 44,779 33,976

(€/000)

140

Remuneration of directors, statutory auditors, and strategically accountable managers Pursuant to Article 78 of CONSOB regulation 11971 of 14 May 1999, below we declare the remuneration paid to directors, statutory auditors, and strategically accountable managers:


SURNAME AND NAMEPosition held

Period during which the position was held

Fees for the office

Non - monetary benefits

Bonuses and other incentives

Other fees

Board of directors terms of office up to approval of the financial statements at 31 December 2009)

Guatri Luigi Honorary Chairman 01.01 - 31.12.2009 40 - - - Costa Giorgio Chairman 01.01 - 31.12.2009 88 - - 5 (1) Acutis Carlo Executive deputy chairman 01.01 - 31.12.2009 50 - - - Acutis Andrea Executive deputy chairman 01.01 - 31.12.2009 50 17 - 195 (2) Guarena Roberto Managing director 01.01 - 31.12.2009 420 - 400 5 Acutis Biscaretti di Ruffia Adriana Director 01.01 - 31.12.2009 68 - - 60 (1) Baggi Sisini Francesco Independent director 01.01 - 31.12.2009 35 - - - Brandolini d'Adda Tiberto Independent director 01.01 - 31.12.2009 20 - - - Brignone Marco Independent director 01.01 - 31.12.2009 20 - - - Hellouin de Ménibus Arnaud Director 01.01 - 31.12.2009 24 - - 5 (1) Marsani Pietro Carlo Independent director 01.01 - 31.12.2009 27 - - - Marsiaj Giorgio Independent director 01.01 - 31.12.2009 20 - - - Müller-Gotthard Edgar Independent director 01.01 - 31.12.2009 20 - - - Passerin d'Entreves Lodovico Independent director 01.01 - 31.12.2009 24 - - - Paveri Fontana Luca Director 01.01 - 31.12.2009 142 - - 5 (1) Ricci Robert Independent director 01.01 - 31.12.2009 20 - - 5 (1) Spadafora Giuseppe Independent director 01.01 - 31.12.2009 27 - - -

Board of statutory auditors terms of office up to approval of the financial statements at 31 December 2009 - - - -

- - - - Caso' Angelo Chairman 01.01 - 31.12.2009 43 - - - Maritano Giovanni Statutory auditor 01.01 - 31.12.2009 29 - - 34 (1) Araldi Ferruccio Statutory auditor 01.01 - 31.12.2008 29 - - 41 (1)

Managers with strategic responsabilities - - - - Caldarelli Cesare Joint General Manager 01.01 - 31.12.2009Ravasio Mario Joint General Manager 01.01 - 31.12.2009Corazza Enrico Central Manager 01.01 - 31.12.2009Massocco Antonio Central Manager 01.01 - 31.12.2009Parazzini Piero Angelo Central Manager 01.01 - 31.12.2009

(2) Other fees for positions held in subsidiaries(1) Other fees / salary for positions held in subsidiaries

98

Description of position Fees

- 1,372

141

Disclosure of auditing fees As required by Article 149/12 of CONSOB Regulation 11971 of 14 May 1999, below we report the fees relating to FY2008 for services rendered to the Company by the auditing company BDO SpA – and by entities forming part of its network.

(€/000)

Type of services rendered Auditing company

Entities forming part of its network

Independent audit services 393 - Verifications for issue of attestations 48 - Other services 27 -

Investments in subsidiaries

Vittoria Immobiliare SpA Registered offices in Milan - Galleria San Babila 4/B Share capital: € 22,000,000. % equity interest: 87.24%. This company is active in the real estate trading sector and is also a holding company for investments in companies operating in the real estate management, brokerage and promotion sectors. The draft financial statements reviewed by the Board of Directors on 9 March 2010 show shareholders' equity of € 21,452 thousand, including € -1,908 thousand of net loss for the year. The consolidated financial statements, prepared for the purposes of parent company consolidation, show consolidated shareholders' equity of € 23,230 thousand, including the year’s net loss of € -984 thousand.

Immobiliare Bilancia Srl [“Srl” = private limited liability company] Registered offices in Milan - Galleria San Babila 4/B Share capital: € 3,150,000. % equity interest: 100.0%. A company active in real estate trading. The draft financial statements reviewed by the Board of Directors on 1 March 2010 show quotaholders equity of € 21,322 thousand, including the year’s net loss of € 108 thousand.

Immobiliare Bilancia Prima Srl Registered offices in Milan - Galleria San Babila 4/B Share capital: € 3,000,000. % equity interest: 100.00%. A company active in real estate trading. The draft financial statements reviewed by the Board of Directors on 1 March 2010 show quotaholders equity of € 12,278 thousand, including the year’s net loss of € 16 thousand.

Immobiliare Bilancia Seconda Srl Registered offices in Milan - Galleria San Babila 4/B Share capital: € 1,000,000. % equity interest: 100.00%. The draft financial statements reviewed by the Board of Directors on 1 March 2010 show shareholders equity of € 1,303 thousand, including the year’s net profit of € 59 thousand.

142

Immobiliare Bilancia Terza Srl Registered offices in Milan - Galleria San Babila 4/B Share capital: € 100,000. % equity interest: 100.00%. The company – at present not yet operational – was founded in 2003 in order to have a legal vehicle able to develop real estate trading operations, possibly jointly with other partners in the sector. The draft financial statements reviewed by the Board of Directors on 1 March 2010 show quotaholders’ equity of € 64 thousand, including the year’s loss of € -7 thousand.

Lauro 2000 Srl Registered offices in Milan - Galleria San Babila 4/B Share capital: € 20,000,000 % equity interest: 100.00% direct The draft financial statements reviewed by the Board of Directors on 1 March 2010 show shareholders equity of € 77,987 thousand, including the year’s loss of € -567 thousand. Vittoria Properties Srl Registered offices in Milan – Via Caldera 21 Share capital: € 4,000,000 % equity interest: 99.00% directly owned and 1.00% via Vittoria Immobiliare SpA A company active in the management and letting of its property assets. The draft financial statements reviewed by the Board of Directors on 1 March 2010 show quotaholders’ equity of € 4,280 thousand, including the year’s net loss of € 37 thousand. Interbilancia Srl Registered offices in Milan – Via Caldera 21 Share capital: € 80,000 % equity interest: 80.00% directly owned and 20.00% via Vittoria Immobiliare SpA A holding company for investments in companies active in the service sector. Draft financial statements show quotaholders’ equity of € 214 thousand including the year’s net profit of € 97 thousand. Vittoria Service Srl Registered offices in Milan – Via Caldera 21 Share capital: € 100,000 % equity interest: 70.00% directly owned and 30.00% via Vittoria Immobiliare SpA A company active in advisory services in the real estate and insurance fields. Investments in associate companies

White Finance SA Registered offices in Luxembourg (Grand Duchy of Luxembourg) Share capital: € 1,000,000 % equity interest: 32.17% An investment holding company Draft consolidated financial statements as at 31 December 2009 show shareholders’ equity of € 19,603 thousand, including the year’s net loss of € 3,533 thousand. Laumor Holdings Sarl Registered offices in Luxembourg (Grand Duchy of Luxembourg) Share capital: € 12,500 % equity interest: 29.00% A financial company. Draft consolidated financial statements as at 31 December 2009 show shareholders’ equity of € 27,361 thousand, including the year’s net loss of € 2,947 thousand.

143

Gima Finance SA Registered offices in Luxembourg (Grand Duchy of Luxembourg) Share capital: € 31,000 % equity interest: 32.13% A financial company. Draft consolidated financial statements as at 31 December 2009 show shareholders’ equity of € 22,694 thousand, including the year’s net gain of € 3,565 thousand. S.In.t. SpA Registered offices in Turin – Via Bertola 34 Share capital: € 1,000,000 % equity interest: 48.19% Draft financial statements as at 31 December 2009 show shareholders’ equity of € 2,179 thousand, including the year’s net profit of € 15 thousand. Yarpa SpA Registered offices in Genoa – Via Roma 3 Share capital: € 38,201,424 % equity interest: 25.90% The associate is a company offering corporate financial services – from pool loans up to consulting services for the purchase or sale of companies. Its subsidiary Yarpa Investimenti SGR manages the Italian closed-end investment funds “Maestrale” and “RP3 Fund” and the closed-end real estate funds “Rosso Mattone” and “Ambiente”. Touring Vacanze Srl Registered offices in Milan – Corso Italia 10 Share capital: € 12,900,000 % equity interest: 24.00% A real estate management company. Tax situation

Group companies, availing themselves of the provisions (paragraph 44, Article 2) of Italian Law no. 350 of 24 December 2003 (2004 National Budget Law), published in the Official Italian Gazette of 27 December 2003, settled both direct and direct taxes for all financial years up to and including 2002 During 2009 Vittoria Assicurazioni S.p.A. was subjected to a tax audit by the Inland Revenue for the tax years 2004, 2005 and 2006, after which objections were raised concerning corporate tax, regional business tax and VAT. In December 2009 a tax reassessment totalling € 140 thousand of higher taxes for 2004 was notified. Tax reassessments have not yet been notified for 2005 and 2006, for which the parent company estimates that higher charges of some € 345 thousand will be assessed. In accounts as at 31 December 2009 Vittoria Assicurazioni has made tax provision of € 101 thousand for the costs arising from higher corporate and regional business tax, fines and interest for the 3-year period 2004-2006. As regards higher VAT, related fines and interest, Vittoria Assicurazioni has already filed an appeal with the Inland Revenue for 2004 and intends to act in the same way for 2005 and 2006, supported by a favourable ruling in first instance concerning an identical case related to 2003. Vittoria Assicurazioni S.p.A. has confirmed for the 3-year period 2008-2010 the option for domestic tax consolidation (Article 117 et seq. of Italian Presidential Decree no. 917 of 22 December 1986) with the subsidiaries Immobiliare Bilancia S.r.l., Immobiliare Bilancia Prima

144

S.r.l., Immobiliare Bilancia Seconda S.r.l. and Immobiliare Bilancia Terza S.r.l.. As from FY2008 and once again for the 3-year period 2008-2010, the subsidiaries Lauro 2000 S.r.l. and Acacia 2000 S.r.l. were included in the scope of tax consolidation. During 2009 the domestic tax consolidation option was renewed for the companies Vittoria Immobiliare S.p.A., Gestimmobili S.r.l. and Interimmobili S.r.l. and was exercised also for the subsidiaries Forum Mondadori Residenze S.r.l. e Interbilancia S.r.l..

In FY2008 Vittoria Assicurazioni S.p.A. revalued its property assets pursuant to Italian Law no. 2 of 28 January 2009, obtaining recognition of the higher value for the purposes of corporate and regional business tax, effective as from the 2013 tax period (in the event of disposal, recognition is postponed to 2012) via payment of a substitute tax of 3% on the higher value of depreciable property assets and of 1.5% on that of non-depreciable property assets. The carrying value was aligned with market value, as calculated by an expert appraisal of the assets concerned performed by an independent expert. Set against this higher value recognised in balance-sheet assets, the Company has created a specific equity reserve for an amount equal to revaluation minus substitute taxes.

For additional details on the recognised gains and the criteria for their accounting, reference is made to the section in these Explanatory Notes dedicated to the comments on specific financial statement accounts.

The Company exercised the option to pay VAT at the group level for 2009 for the subsidiaries Lauro 2000 Srl, Forum Mondadori Residenze Srl, Immobiliare Bilancia Terza Srl, Gestimmobili Srl, Interimmobili Srl, Vittoria Properties Srl.

The option will be used for FY2010 excluding Lauro 2000 Srl..

The Board of Directors Milan, 9 March 2010

145

Annexes to the notes to the financial statements

page 148 Annex 1 Balance sheet - Non-life business

160 Annex 2 Balance sheet - Life business

173 Annex 3 Allocation of the net profit (loss) for the year between non-life and life businesses

174 Annex 4 Assets - Changes in intangible assets (caption B) and land and buildings (caption C.I) 175 Annex 5 Assets - Changes in investments in group and other companies: equity investments (caption C.II.1),

bonds (caption C.II.2) and loans (caption C.II.3)

176 Annex 6 Assets - Information on companies in which Vittoria holds an investment

178 Annex 7 Assets - Changes in investments in group and other companies: equity investments

182 Annex 8 Assets - Allocation based on the use of other financial investments: equity investments, unit trust units, bonds and other fixed-interest securities, shares in investment pools and other financial investments (captions C.III.1,2,3,5,7)

183 Annex 9 Assets - Changes in other financial investments: investment portfolio: equity investments, unit trust units, bonds and other fixed-interest securities, shares in investment pools and other financial investments (captions C.III.1,2,3,5,7)

184 Annex 10 Assets - Changes in loans and deposits with banks (captions C.III.4,6)

185 Annex 11 Assets - List of assets relating to unit-linked and index-linked policies (caption D.I)

186 Annex 12 Assets - List of assets arising from pension fund management (caption D.II)

187 Annex 13 Liabilities - Changes in premium reserve (caption C.I.1) and claims reserve (caption C.I.2) of non-life business

188 Annex 14 Liabilities - Changes in mathematical reserves (caption C.II.1) and profit participation and reimbursement reserve (caption C.II.4)

189 Annex 15 Liabilities - Changes in provisions for contingencies and other charges (caption E) and employees' leaving entitlement (caption G.VII)

190 Annex 16 List of assets and liabilities relating to group and other companies

192 Annex 17 List of classes I, II, III and IV of "guarantees, commitments and other memorandum and contingency accounts"

193 Annex 18 Commitments for derivative transactions

194 Annex 19 Summarised non-life business technical account

195 Annex 20 Summarised life business premiums and reinsurance balance

196 Annex 21 Income on investments (captions II.2 and III.3)

197 Annex 22 Income and unrealised capital gains relating to investments benefiting policyholders bearing the risk and investments stemming from pension fund management (caption II.3)

198 Annex 23 Capital and financial charges (captions II.9 and III.5)

199 Annex 24 Capital and financial charges and unrealised losses relating to investments benefiting policyholders bearing the risk and investments stemming from pension fund management (caption II.10)

200 Annex 25 Non-life business - Summarised technical account by line of business - Domestic portfolio

202 Annex 26 Non-life business - Summarised technical account

203 Annex 27 Life business - Summarised technical account by line of business - Domestic portfolio

204 Annex 28 Life business - Summarised technical account

205 Annex 29 Life and non-life business - Summarised technical account - Foreign portfolio

206 Annex 30 Inter-company relationships

208 Annex 31 Summarised direct insurance premiums accounted for

209 Annex 32 Personnel expenses and directors' and statutory auditors' fees

147

Notes - Annex 1

Company VITTORIA ASSICURAZIONI

BALANCE SHEET - NON-LIFE BUSINESS

ASSETS

Current assets

A. SHARE CAPITAL PROCEEDS TO BE RECEIVED 1

of which: called-up 2


1. Acquisition commissions to be amortised 4 4,386

2. Other acquisition costs 6

3. Start-up and capital costs 7 8

4. Goodwill 8

5. Other deferred costs 9 26,291 10 30,685

C. INVESTMENTS

I - Land and buildings 1. Operating buildings 11 783

2. Buildings used by third parties 12 18,089

3. Other buildings 13

4. Other property rights 14

5. Assets under construction and payments on account 15 16 18,872

II - Investments in group and other companies: 1. Equity investments in: a) parent companies 17


c) related companies 19

d) associated companies 20 31,693

e) other companies 21 32,983 22 162,127

2. Bonds issued by: a) parent companies 23

b) subsidiaries 24


d) associated companies 26

e) other companies 27 28

3. Loans to: a) parent companies 29

b) subsidiaries 30



e) other companies 33 34 35 162,127

to carry forward 30,685

4° Sindaco

148

Year 2009

Page 1

Previous year

181

182

184

186

187

188

189 190

191

192

193

194

195 196

197

198

199

200

201 202

203

204

205

206

207 208

209

210

211

212

213 214 215

to carry forward

149


ASSETS

Current year

brought forward 30,685


III - Other financial investments: 1. Equity investments a) Listed shares 36

b) Unlisted shares 37

c) Quotas 38 39

2. Unit trust units 40 259

3. Bonds and other fixed-interest securities a) listed 41 554,457

b) unlisted 42 565

c) convertible bonds 43 44 555,022

4. Loans a) secured loans 45

b) loans on policies 46

c) other loans 47 48

5. Shares in investment pools 49

6. Deposits with banks 50

7. Other financial investments 51 240 52 555,521

IV - Deposits with ceding companies 53 2 54 736,522



1. Premium reserve 58 9,658

2. Claims reserve 59 44,274

3. Profit participation and reimbursement reserve 60

4. Other technical reserves 61 62 53,932


150

Previous year

brought forward

216

217

218 219

220

221

222

223 224

225

226

227 228

229

230

231 232

233 234

238

239

240

241 242

to carry forward

151


ASSETS

Current year


E. RECEIVABLES

I - Receivables relating to direct insurance due from: 1. Policyholders a) premiums for the year 71 36,689

b) premiums for previous years 72 5,723 73 42,412

2. Insurance brokers and agents 74 43,224

3. Current account companies 75 10,750

4. Amounts to be recovered from policyholders and third parties 76 36,031 77 132,417

II - Receivables relating to reinsurance due from: 1. Insurance and reinsurance companies 78 5,127

2. Reinsurance brokers and agents 79 80 5,127

III - Other receivables 81 19,570 82 157,114

F. OTHER ASSETS

I - Tangible assets and inventory: 1. Office furniture and machines and internal transport systems 83 2,871

2. Registered chattel property 84 12

3. Plant and machinery 85 126

4. Inventory and other assets 86 87 3,009

II - Liquid funds 1. Bank and postal accounts 88 22,383

2. Cheques on hand and cash-in-hand 89 10 90 22,393

III - Own shares or quotas 91

IV - Other assets 1. Suspense reinsurance accounts 92

2. Sundry assets 93 15,680 94 15,680 95 41,082

of which: giro account with life business 901

G. PREPAYMENTS AND ACCRUED INCOME 1. Interest 96 6,704

2. Rent instalments 97 182

3. Other prepayments and accrued income 98 1,475 99 8,361

TOTAL ASSETS 100 1,027,696

152

Previous year

brought forward

251

252 253

254

255

256 257

258

259 260

261 262

263

264

265

266 267

268

269 270

271

272

273 274 275

903

276

277

278 279

280

153



Current year


I - Subscribed share capital or equivalent fund 101 38,473

II - Share premium reserve 102 17,696

III - Revaluation reserves 103 10,939

IV - Legal reserve 104 5,495

V - Statutory reserves 105

VI - Reserves for purchase of own shares and shares of parent company 106

VII - Other reserves 107 91,859

VIII - Retained earnings or losses carried forward 108

IX - Net profit/(loss) for the year 109 -11,032 110 153,430

B. SUBORDINATED LIABILITIES 111 2,464



1. Premium reserve 112 230,007

2. Claims reserve 113 549,508


4. Other technical reserves 115 3,774

5. Equalisation reserves 116 3,031 117 786,320


154

Previous year

281

282

283

284

285

286

287

288

289 290

291

292

293

294

295

296 297

to carry forward

155



Current year



1. Pension and similar provisions 128

2. Provision for taxation 129 522

3. Other provisions 130 741 131 1,263

F. DEPOSITS FROM REINSURERS 132 3,605


I - Payables arising from direct insurance business due to: 1. Insurance brokers and agents 133 3,414

2. Current account companies 134 2,495

3. Guarantee deposits and premiums paid by policyholders 135

4. Guarantee funds in favour of policyholders 136 752 137 6,661

II - Payables arising from reinsurance business due to: 1. Insurance and reinsurance companies 138 6,885

2. Reinsurance brokers and agents 139 140 6,885

III - Bond issues 141

IV - Due to banks and other financial institutions 142

V - Secured debts 143

VI - Sundry loans and other financial payables 144

VII - Employees' leaving entitlement 145 3,547

VIII - Other sums payable 1. Policyholders' tax due 146 11,765

2. Other sums payable to taxation authorities 147 1,227

3. Social security charges payable 148 1,751

4. Sundry payables 149 12,316 150 27,059

IX - Other liabilities 1. Suspense reinsurance accounts 151

2. Commissions on premiums under collection 152 7,394

3. Other liabilities 153 1,445 154 8,839 155 52,991

of which: giro account with life business 902


156

Previous year

brought forward

308

309

310 311

312

313

314

315

316 317

318

319 320

321

322

323

324

325

326

327

328

329 330

331

332

333 334 335

904

to carry forward

157



Current year



1. Interest 156 136

2. Rent instalments 157

3. Other accrued expenses and deferred income 158 1 159 137

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 160 1,000,210



Current year



1. Sureties 161

2. Endorsements 162

3. Other personal guarantees 163 7,634

4. Collateral 164


1. Sureties 165 6,363

2. Endorsements 166

3. Other personal guarantees 167

4. Collateral 168 1,250

III - Guarantees given by third parties in the interest of the Company 169

IV - Commitments 170 17,310

V - Third party assets 171 3,893

VII - Securities held by third parties 173 614,619

VIII - Other memorandum and contingency accounts 174

158

Previous year

brought forward

336

337

338 339

340

Previous year

341

342

343

344

345

346

347

348

349

350

351

353

354

159

Notes - Annex 2


BALANCE SHEET - LIFE BUSINESS

ASSETS

Current year

A. SHARE CAPITAL PROCEEDS TO BE RECEIVED 1

of which: called-up 2


1. Acquisition commissions to be amortised 3 2,768

2. Other acquisition costs 6

3. Start-up and capital costs 7 5

4. Goodwill 8 3,163

5. Other deferred costs 9 2,313 10 8,249

C. INVESTMENTS

I - Land and buildings 1. Operating buildings 11

2. Buildings used by third parties 12

3. Other buildings 13

4. Other property rights 14

5. Assets under construction and payments on account 15 16

II - Investments in group and other companies: 1. Equity investments in: a) parent companies 17



d) associated companies 20 5,765

e) other companies 21 6,548 22 71,978

2. Bonds issued by: a) parent companies 23

b) subsidiaries 24



e) other companies 27 28

3. Loans to: a) parent companies 29

b) subsidiaries 30 564



e) other companies 33 2,500 34 3,064 35 75,042


4° Sindaco

160

Year 2009

Page 1

Previous year

181

182

183

186

187

188

189 190

191

192

193

194

195 196

197

198

199

200

201 202

203

204

205

206

207 208

209

210

211

212

213 214 215

to carry forward

161


ASSETS

Current year



III - Other financial investments 1. Equity investments a) Listed shares 36

b) Unlisted shares 37

c) Quotas 38 39

2. Unit trust units 40 6,237

3. Bonds and other fixed-interest securities: a) listed 41 692,748

b) unlisted 42 3,534

c ) convertible bonds 43 44 696,282

4. Loans a) secured loans 45 3,046

b) loans on policies 46 3,773

c) other loans 47 4,488 48 11,307

5. Shares in investment pools 49

6. Deposits with banks 50

7. Other financial investments 51 799 52 714,625

IV - Deposits with ceding companies 53 279 54 789,946

D. INVESTMENTS BENEFITING LIFE POLICYHOLDERS BEARINGTHE RISK AND STEMMING FROM PENSION FUND MANAGEMENT

I - Investments relating to index-linked policies 55 66,979

II - Investments relating to pension fund management 56 8,821 57 75,800



1. Mathematical reserves 63 19,926

2. Complementary insurance premium reserve 64

3. Reserve for amounts payable 65 373


5. Other technical reserves 67 23

6. Technical reserves where investment risk is borne by policyholders and reserves relating to pension fund management 68 69 20,322


162

Valori dell'esercizio precedente

brought forward

216

217

218 219

220

221

222

223 224

225

226

227 228

229

230

231 232

233 234

235

236 237

243

244

245

246

247

248 249

to carry forward

163


ASSETS

Current year


E. RECEIVABLES

I - Receivables relating to direct insurance due from: 1. 1. Policyholders a) premiums for the year 71 8,399

b) premiums for previous years 72 663 73 9,062

2. Insurance brokers and agents 74 10,811

3. Current account companies 75 96

4. Amounts to be recovered from policyholders and third parties 76 77 19,969

II - Receivables relating to reinsurance due from: - 1. Insurance and reinsurance companies 78 177

- 2. Reinsurance brokers and agents 79 80 177

III - Other receivables 81 9,085 82 29,231

F. OTHER ASSETSI - Tangible assets and inventory:

1. Office furniture and machines and internal transport systems 83

2. Registered chattel property 84

3. Plant and machinery 85

4. Inventory and other assets 86 87

II - Liquid funds 1. Bank and postal accounts 88 22,386

2. Cheques on hand and cash-in-hand 89 90 22,386

III - Own shares or quotas 91

IV - OTHER ASSETS 1. Suspense reinsurance accounts 92

2. Sundry assets 93 479 94 479 95 22,865

of which: giro account with non-life business 901

G. PREPAYMENTS AND ACCRUED INCOME 1. Interest 96 9,863


3. Other prepayments and accrued income 98 131 99 9,994

TOTAL ASSETS 100 956,407

164

Previous year

brought forward

251

252 253

254

255

256 257

258

259 260

261 262

263

264

265

266 267

268

269 270

271

272

273 274 275

903

276

277

278 279

280

165



Current year


I - Subscribed share capital or equivalent fund 101 27,316

II - Share premium reserve 102 13,433

III - Revaluation reserves 103

IV - Legal reserve 104 2,935

V - Statutory reserves 105

VI - Reserves for purchase of own shares and shares of parent company 106

VII - Other reserves 107 40,457

VIII - Retained earnings or losses carried forward 108

IX - Net profit (loss) for the year 109 -2,862 110 81,279

B. SUBORDINATED LIABILITIES 111 1,643



1. Mathematical reserves 118 721,900

2. Complementary insurance premium reserve 119 156

3. Reserve for amounts payable 120 23,304


5. Other technical reserves 122 12,069 123 757,458

D. TECHNICAL RESERVES WHERE THE INVESTMENT RISK IS BORNE BY POLICYHOLDERS AND RESERVES ARISING FROM PENSION FUND MANAGEMENT

I - Reserves arising from index- linked policies125 66,979

II - Reserves arising from pension fund management 126 8,821 127 75,800


166

Previous year

281

282

283

284

285

286

287

288

289 290

291

298

299

300

301

302 303

305

306 307

to carry forward

167



Current year



1. Pension and similar provisions 128

2. Provision for taxation 129

3. Other provisions 130 131

F. DEPOSITS FROM REINSURERS 132 19,949


I - Payables arising from direct insurance business due to: 1. Insurance brokers and agents 133 238

2. Current account companies 134 1

3. Guarantee deposits and premiums paid by policyholders 135 199

4. Guarantee funds in favour of policyholders 136 137 438

II - Payables arising from reinsurance business due to: 1. Insurance and reinsurance companies 138 566

2. Reinsurance brokers and agents 139 140 566

III - Bond issues 141

IV - Due to banks and other financial institutions 142

V - Secured debts 143

VI - Sundry loans and other financial payables 144

VII - Employees' leaving entitlement 145 845

VIII - Other sums payable 1. Policyholders' tax due 146 138

2. Other sums payable to taxation authorities 147 334

3. Social security charges payable 148 265

4. Sundry payables 149 2,529 150 3,266

IX - Other liabilities 1. Suspense reinsurance accounts 151

2. Commissions on premiums under collection 152 3,901

3. Other liabilities 153 444 154 4,345 155 9,460

of which: giro account with non-life business 902


168

Previous year

brought forward

308

309

310 311

312

313

314

315

316 317

318

319 320

321

322

323

324

325

326

327

328

329 330

331

332

333 334 335

904

to carry forward

169



Current year



1. Interest 156 90


3. Other accrued expenses and deferred income 158 30 159 120

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 160 945,709



Current year



1. Sureties 161

2. Endorsements 162

3. Other personal guarantees 163 12,866

4. Collateral 164


1. Sureties 165

2. Endorsements 166

3. Other personal guarantees 167

4. Collateral 168

III - Guarantees given by third parties in the interest of the company 169

IV - Commitments 170

V - Third party assets 171

VI - Assets pertaining to pension funds managed in favour and on behalf of third parties 172 8,821

VII - Securities held by third parties 173 709,865

VIII - Other memorandum and contingency accounts 174

170

Previous year

brought forward

336

337

338 339

340

Previous year

341

342

343

344

345

346

347

348

349

350

351

352

353

354

171

Notes - Annex 3

Company VITTORIA ASSICURAZIONI Year 2009

Allocation of the net profit (loss) for the year between non-life and life businesses

Non-life businesses Life businesses Total

Result of technical account ............................................................... 1 23,165 21 6,930 41 30,095

Income on investments ........................................................................ + 2 23,780 42 23,780

Capital and financial charges …………………………………………- 3 2,341 43 2,341

Income on investments transferred from the life business technical account ............................................. + 24 3,768 44 3,768

Income on investments transferred to the non-life business technical account ........................................... - 5 17,118 45 17,118

Operating result ............................................................................... 6 27,486 26 10,698 46 38,184

Other income ....................................................................................... + 7 2,679 27 265 47 2,944

Other expense ..................................................................................... - 8 5,248 28 1,380 48 6,628

Extraordinary income .......................................................................... + 9 402 29 307 49 709

Extraordinary expense ......................................................................... - 10 53 30 96 50 149

Profit (loss) before taxation .............................................................. 11 25,266 31 9,794 51 35,060

Taxation on profit for the year ............................................................ - 12 8,812 32 1,958 52 10,770

Net profit (loss) for the year ............................................................. 13 16,454 33 7,836 53 24,290

173

Notes - Annex 4

Year 2009


Assets - Changes in intangible assets (caption B) and land and buildings (caption C.I)

Intangible assets Land and buildingsB C.I

Gross opening book value .............................................................. + 1 29,671 31 18,837

Increase of the year ........................................................................ + 2 32

for: acquisitions or increases ......................................................... 3 33

write-backs ............................................................................. 4 34

revaluations ............................................................................. 5 35

other variations ....................................................................... 6 36

Decrease of the year ....................................................................... - 7 37

for: sales or decreases ..................................................................... 8 38

permanent write-downs ........................................................... 9 39

other variations ........................................................................ 10 40

Gross closing book value (a) ........................................................ 11 29,671 41 18,837

Amortisation and depreciation:

Opening book value ....................................................................... + 12 42

Increase of the year ........................................................................ + 13 43

for: amortisation/depreciation charge of the year ......................... 14 44


Decrease of the year........................................................................ - 16 46

for: disposals .................................................................................. 17 47


Closing book value (b) (*) ............................................................ 19 49

Book value (a - b) .......................................................................... 20 29,671 50 18,837

Current value .................................................................................. 51 18,837

Total revaluations ........................................................................... 22 52

Total write-downs ......................................................................... 23 53

(*) of which resulting from fiscally-driven entries ............................................................... 24 54

174

Notes - Annex 5

Company VITTORIA ASSICURAZIONI S.p.A. Year 2009

Assets - Changes in investments in group and other companies: equity investments (caption C.II.1), bonds (caption C.II.2) and loans (caption C.II.3)

Equity investments Bonds LoansC.II.1 C.II.2 C.II.3

Opening book value ........................................................... + 1 223,432 21 41 3,161

Increase of the year ............................................................ + 2 20,863 22 42

for: acquisitions, subscriptions or lending ........................ 3 17,267 23 43

write-backs .................................................................. 4 24 44

revaluations ................................................................. 5

other variations ........................................................... 6 3,596 26 46

Decrease of the year: .......................................................... - 7 10,191 27 47 97

for: sales or repayments...................................................... 8 28 48 97

write-downs ................................................................. 9 495 29 49

other variations ............................................................ 10 9,696 30 50

Book value ....................................................................... 11 234,104 31 51 3,064

Current value ...................................................................... 12 306,009 32 52 3,064

Total revaluations ............................................................... 13

Total write-downs............................................................... 14 495 34 54

Caption C.II.2 includes:

Listed bonds ........................................................................................................................... 61

Unlisted bonds ....................................................................................................................... 62

Book value ............................................................................................................................. 63

of which: convertible bonds ................................................................................................... 64

175

Company Vittoria Assicurazioni

Assets - Information on subsidiaries (*)

Number Type Listed or Business Name and registered offices Currency unlisted activity

(1) (2) (3)

1 b NQ 2 242

2 d NQ 9 242

3 d NQ 2 242

4 e NQ 2 242

5 e Q 2 242

6 e NQ 3 242

7 e NQ 3 242

8 e NQ 3 242

9 e NQ 9 242

10 e NQ 9 242

11 e NQ 9 242

12 e NQ 2 242

13 b NQ 2 242

14 b NQ 4 242

15 d NQ 9 242

16 b NQ 4 242

17 b NQ 4 242

18 b NQ 4 242

19 b NQ 4 242

20 e NQ 3 242

21 e NQ 2 242

22 e Q 2 242

23 e NQ 9 242

24 e NQ 2 2

25 d NQ 2 242

26 e NQ 3 242

27 b NQ 9 242

28 b NQ 4 242

29 d NQ 2 242

30 d NQ 2 242

31 e NQ 4 242

32 d NQ 7 242

33 e NQ 2 24234 b NQ 4 242

35 e NQ 3 242

(*) List of group companies and other companies held either directly or through trustee or nominee.

(1) Type (3) Business activity (4) Amounts in original currency a = Parent companies 1 = Insurance company b = Subsidiaries 2 = Financial company (5) Indicate total holding percentage c = Related companies 3 = Bank d = Associated companies 4 = Real estate company e = Other companies 5 = Trust

6 = Trust management company(2) Indicate Q for listed securities 7 = Consortium and NQ for unlisted securities 8 = Manufacturing company

9 = Other

YAM INVEST N.V. - Herengracht 471 - 1017 BS AmsterdamFORUM MONDADORI RESIDENZE S.r.l. - Galleria San Babila 4/B - 20122 Milano

BCC DI SIGNA - Piazza Michelacci 1-2 - 50058 Signa FI

LAUMOR HOLDINGS Sarl - 9, rue du Laboratoire - L-1911 Lussemburgo

GIMA FINANCE SA - 9, rue du Laboratoire - L-1911 Lussemburgo

IMMOBILIARE ADAMELLO S.r.l. - Corso Italia 10 - 20122 Milano

CONSORZIO MOVINCOM S.c.r.l. - Via Bertola 34 - 10122 Torino

WHITE FINANCE S.A. - 9, rue du Laboratoire - L-1911 Lussemburgo

BCC COMPR. DEL CUOIO Soc.Coop. - Via Prov.Francesca Nord 78 - 56022 Castelfranco

VITTORIA SERVICE S.r.l. - Via Caldera n.21 - 20153 Milano

LAURO 2000 S.r.l. - Galleria San Babila 4/B - 20122 Milano

LIGURIA S.r.l. in Liquidazione - Via Cesare Mangili 6 - 20121 Milano

MEDIOBANCA S.p.A. - P.tta E.Cuccia 1 - 20121 Milano

MEDIORISCHI S.p.A. - Via Melchiorre Gioia 124 - 20125 Milano

BCM & Partners LLP - 102 Jermyn Street - SW1Y 6EE Londra

IMMOBILIARE BILANCIA PRIMA S.r.l. - Galleria San Babila 4/B - 20122 Milano

IMMOBILIARE BILANCIA SECONDA S.r.l. - Galleria San Babila 4/B - 20122 Milano

IMMOBILIARE BILANCIA TERZA S.r.l. - Galleria San Babila 4/B - 20122 Milano

BCC APUANA Soc.Coop. - Viale Eugenio Chiesa n.4 - 54100 Massa

INTERBILANCIA S.r.l. - Via Caldera n.21 - 20153 Milano

IMMOBILIARE BILANCIA S.r.l. - Galleria San Babila 4/B - 20122 Milano

TOURING VACANZE S.r.l. - Corso Italia n.10 - 20122 Milano

VITTORIA PROPERTIES S.r.l. - Via Caldera 21 - 20153 Milano

DOWNALL ITALIA S.r.l. - Piazza Sicilia 6 - 20146 Milano

SOFIGEA S.r.l. in liq. - Via della Frezza 70 - 00186 Roma

U.C.I. S.cons.r.l. - Corso Sempione 39 - 20145 Milano

MEDINVEST INTERNATIONAL S.C.A. - 38, Avenue de la Faiencerie - L-1510 Lussemburgo

CAM FINANZIARIA S.p.A. - Via G.Negri 8 - 20123 Milano

BANCA PASSADORE & C. S.p.A. - Via E.Vernazza 27 - 16121 Genova

BCC VALDOSTANA Soc.Coop. - Fraz.Taxel 26 - 11020 Gressan AO

BCC PAD.ORIENT.-ROVIGO Soc.Coop. - Via Casalini n.10 - 45100 Rovigo

VITTORIA IMMOBILIARE S.p.A. - Galleria San Babila 4/B - 20122 Milano

SINT S.p.A. - Piazza Bodoni 3 - 10123 Torino

YARPA S.p.A. - Via Roma 3 - 16121 Genova

GRUPPO G.P.A. S.p.A. - Via Melchiorre Gioia 124 - 20125 Milano

176

Notes - Annex 6

Year 2009

Share capital Shareholders' equity (**) Net profit or loss Percentage held (5)

Amount Number of for the last year (**) Direct Indirect Total(4) shares (4) (4) % % %

22,000,000 44,000 23,229,761 -983,591 87.24

1,000,000 1,000,000 2,130,010 -11,492 48.19

9,635,000 20,500,000 18,035,994 -301,000 25.36

8,528,000 16,400,000 9.74

349,146,746 671,436,050 4.31

50,000,000 50,000,000 2.76

2,257,304 437,462 0.87

796,557 30,849 0.32

100,000 100,000 10.00

47,664,600 47,664,600 1.46

513,060 1,006,000 0.68

76,636,000 7,663,600 3.91

80,000 80,000 709717,65 188969,44 80.00 20

3,150,000 3,150,000 21,321,691 159,899 100.00

12,900,000 12,900,000 14,883,038 218,506 24.00

4,000,000 4,000,000 4280334,2 -36859,85 99.00 1

3,000,000 3,000,000 12,262,885 -19,351 100.00

1,000,000 1,000,000 1303101,58 58,800 100.00

100,000 100,000 63875,43 -7111,75 100.00

5,781,657 22,323 0.86

430,529,224 861,058,448 0.14

102,000 102,000 10.00

1,396,225 1,396,225 10.00

1,000,000 800,000 19,602,992 -3,532,511 32.17

100,000 100,000 1,236,051 -172,405 70.00 30

20,000,000 20,000,000 77,674,528 -618,685 100.00

12,500 500 27,360,605 -2,946,903 29.00

31,000 31,000 22,694,139 3,564,758 32.13

1,000,000 1,000,000 10.00

103,100 103,100 103,312 1,447 0.97 38.8

63,083,168 63,083,168 351,689,073 70,052 18.75100,000 100,000 112713,53 -32421,75 100.00

11,606,606 224,760 0.40

(**) To be compiled only for subsidiary and associated companies

177

Società VITTORIA ASSICURAZIONI

Assets - Changes in investments in group and other companies: equity investments

Number Type Name Increase of the year

Acquisitions Other(1) (2) (3) Quantity Amount increases

1 B V VITTORIA IMMOBILIARE S.p.A. 2,190 1,095,000

1 B D VITTORIA IMMOBILIARE S.p.A. 1,300 650,000

2 D D SINT S.p.A.3 D D YARPA S.p.A. 911,290 478,427 1,862,363

4 E D GRUPPO G.P.A. S.p.A. 6,346

5 E V CAM FINANZIARIA S.p.A. 13,093,299 4,368,390

6 E D BANCA PASSADORE & C. S.p.A.

7 E D BCC VALDOSTANA Soc.Coop.

8 E D BCC PAD.ORIENT.-ROVIGO Soc.Coop.

9 E D DOWNALL ITALIA S.r.l. 775

10 E D SOFIGEA S.r.l. in liq.

11 E D U.C.I. S.cons.r.l.

12 E D MEDINVEST INTERNATIONAL S.C.A.

14 B D INTERBILANCIA S.r.l.

15 B V IMMOBILIARE BILANCIA S.r.l.

17 D V TOURING VACANZE S.r.l.

20 B V VITTORIA PROPERTIES S.r.l.

21 B D IMMOBILIARE BILANCIA PRIMA S.r.l.

22 B D IMMOBILIARE BILANCIA SECONDA S.r.l.

23 B D IMMOBILIARE BILANCIA TERZA S.r.l.

24 E D BCC APUANA Soc.Coop.

25 E D LIGURIA S.r.l. in Liquidazione

26 E D MEDIOBANCA S.p.A. 58,350

27 E D MEDIORISCHI S.p.A. 366

28 E D BCM & Partners LLP

(1) It should match that indicated in Annex 6 (3) Indicate: D investment allocated to the non-life business (caption C.II.1)

(2) Type V investments allocated to the life business (caption C.II.1) a = Parent companies V1 investments allocated to the life business (caption D.I) b = Subsidiaries V2 investments allocated to the life business (caption D.2) c = Related companies Even if it is only a portion, the investment should be d = Associated companies identified with the same number e = Other companies

178

Notes - Annex 7

Year 2009

Decrease of the year Book value (4) Acquisition CurrentSales Other Quantity Amount cost value

Quantity Amount decreases

24,091 13,944,539 13,944,539 11,096,048

14,295 12,378,000 12,378,000 6,583,700

481,900 4,658,912 4,658,912 6,121,0945,198,766 4,426,740 4,426,740 4,670,781

1,596,959 7,134,178 7,134,178 7,134,178

2,155,623 28,943,096 6,547,686 6,547,686 8,871,059

1,377,848 3,540,385 3,540,385 7,330,151

3,800 41,007 41,007 41,007

100 2,634 2,634 2,634

494,947 9,999 1,000 1,000 1,000

695,819 704,628 704,628 704,628

6,879 3,553 3,553 3,553

300,000 3,000,747 3,000,747 3,000,747

64,000 77,640 77,640 567774,12

3,150,000 16,061,815 16,061,815 21,321,691

3,096,000 5,764,568 5,764,569 5,764,569

3,960,000 3,960,000 3,960,000 4,237,531

3,000,000 5,400,000 5,400,000 12,262,885

7,250,000 1,000,000 1,250,000 1,250,000 1303101,58

100,000 100,000 100,000 63875,43

193 49,987 49,987 49,987

1,030 1,030

239,644 1,225,350 11,203,347 11,203,347 10,188,785

10,199 243,612 243,612 243,612

139,623 207,406 207,406 157,313

(4) Insert (*) if stated with the equity method (only for types b and d)

179

Società VITTORIA ASSICURAZIONI

Assets - Changes in investments in group and other companies: equity investments

Number Type Name Increase of the year

Acquisitions Other(1) (2) (3) Quantity Amount increases

30 D D WHITE FINANCE S.A.

31 E D BCC COMPR. DEL CUOIO Soc.Coop.

32 B D VITTORIA SERVICE S.r.l. 840,00034 B V LAURO 2000 S.r.l. 625,000 2,500,000

34 B D LAURO 2000 S.r.l. 1,875,000 7,500,000

35 D D LAUMOR HOLDINGS Sarl 328,243

36 D D GIMA FINANCE SA 966,835

37 E D IMMOBILIARE ADAMELLO S.r.l. 50,000

38 D D CONSORZIO MOVINCOM S.c.r.l.

39 E D YAM INVEST N.V.

40 B D FORUM MONDADORI RESIDENZE S.r.l. 100,000 170,000

41 E D BCC DI SIGNA 900 46,476

Total C.II.1 648,427 20,214,794

a Parent companiesb Subsidiariesc Related companies 170,000 12,585,000

d Associated companiese Other companies 478,427 3,157,441

Total D.I 4,472,353

Total D.II

(1) It should match that indicated in Annex 6 (3) Indicate: D investment allocated to the non-life business (caption C.II.1)

(2) Type V investments allocated to the life business (caption C.II.1) a = Parent companies V1 investments allocated to the life business (caption D.I) b = Subsidiaries V2 investments allocated to the life business (caption D.2) c = Related companies Even if it is only a portion, the investment should be d = Associated companies identified with the same number e = Other companies

180

Notes - Annex 7

Year 2009

Decrease of the year Book value (4) Acquisition CurrentSales Other Quantity Amount cost value

Quantity Amount decreases

257,373 5,234,618 5,234,618 6,306,282

100 50,000

70,000 980,000 980,000 865,2365,000,000 25,698,496 25,698,496 26,394,341

15,000,000 77,095,489 77,095,489 79,183,023

145 9,503,205 9,503,205 7,934,575

9,961 7,868,060 7,868,060 7,292,081

100,000 210,000 210,000 210,000

1,000 1,000 1,000 1,011

11,828,094 6,594,133 6,594,133 65,941,701

100,000 170,000 170,000 112713,53

900 46,477 46,476 46,476

2,155,623 8,035,621 234,103,862 234,103,862 303,961,679

7,250,000 157,115,979 157,115,979 161,944,455

37,457,103 37,457,104 38,090,393

2,155,623 785,621 39,530,780 39,530,779 103,926,831

(4) Insert (*) if stated with the equity method (only for types b and d)

181

Not

es -

Ann

ex 8

Com

pany

VIT

TOR

IA A

SSIC

UR

AZI

ON

IY

ear

2009

Ass

ets -

Allo

catio

n ba

sed

on th

e us

e of

oth

er fi

nanc

ial i

nves

tmen

ts: e

quity

inve

stm

ents

, uni

t tru

st u

nits

, bon

ds a

nd o

ther

fixe

d-in

tere

st se

curit

ies,

sha

res i

n in

vest

men

t poo

ls a

nd o

ther

fina

ncia

l inv

estm

ents

(cap

tions

C.II

I.1, 2

, 3, 5

, 7)

I - N

on-li

fe b

usin

ess

Inv

estm

ent p

ortfo

lio

Trad

ing

portf

olio

Tota

lB

ook

valu

eC

urre

nt v

alue

Boo

k va

lue

Cur

rent

val

ueB

ook

valu

eC

urre

nt v

alue

1. E

quity

inve

stm

ents

: ....

......

......

......

......

......

.

1

21

41

61

81

101

a

) lis

ted

shar

es ..

......

......

......

......

......

......

......

2 2

2 4

2 6

2 8

2 1

02

b

) unl

iste

d sh

ares

....

......

......

......

......

......

....

3

23

43

63

83

103

c

) quo

tas .

......

......

......

......

......

......

......

......

....

4

24

44

64

84

104

2. U

nit t

rust

uni

ts ..

......

......

......

......

......

......

.....

5

193

25

259

45

66 6

567

85

259

105

326

3. B

onds

and

oth

er fi

xed-

inte

rest

secu

ritie

s ...

633

3,07

5 2

635

1,21

9 4

622

1,94

7 6

622

2,31

9 8

655

5,02

2 1

0657

3,53

8

a

1) li

sted

gov

ernm

ent s

ecur

ities

.....

......

.....

7

320,

814

27

337,

726

47

221,

947

67

222,

319

87

542,

761

107

560,

045

a

2) o

ther

list

ed se

curit

ies .

......

......

......

......

..

811

,696

28

12,9

28 4

8 6

8 8

811

,696

108

12,9

28

b

1) u

nlis

ted

gove

rnm

ent s

ecur

ities

....

......

.

9 2

9 4

9 6

9 8

9 1

09

b

2) o

ther

unl

iste

d se

curit

ies .

......

......

......

....

10

565

30

565

50

70

90

565

110

565

c) c

onve

rtibl

e bo

nds .

......

......

......

......

......

..

11

31

51

71

91

111

5. S

hare

s in

inve

stm

ent p

ools

.....

......

......

......

.

12

32

52

72

92

112

7. O

ther

fina

ncia

l inv

estm

ents

....

......

......

......

1

3 3

3 5

324

0 7

312

6 9

324

0 1

1312

6

II -

Life

bus

ines

s

Inve

stm

ent p

ortfo

lio

Trad

ing

portf

olio

Tota

lB

ook

valu

eC

urre

nt v

alue

Boo

k va

lue

Cur

rent

val

ueB

ook

valu

eC

urre

nt v

alue

1. E

quity

inve

stm

ents

: ....

......

......

......

......

......

.

121

141

161

181

201

221

a

) lis

ted

shar

es ..

......

......

......

......

......

......

......

1

22 1

42 1

62 1

82 2

02 2

22

b

) unl

iste

d sh

ares

....

......

......

......

......

......

....

123

143

163

183

203

223

c

) quo

tas .

......

......

......

......

......

......

......

......

....

124

144

164

184

204

224

2. U

nit t

rust

uni

ts .

......

......

......

......

......

......

.....

125

6,23

6 1

456,

378

165

185

205

6,23

6 2

256,

378

3. B

onds

and

oth

er fi

xed-

inte

rest

secu

ritie

s ...

1

2658

4,88

6 1

4661

2,89

6 1

6611

1,39

7 1

8611

3,38

0 2

0669

6,28

3 2

2672

6,27

6

a

1) li

sted

gov

ernm

ent s

ecur

ities

.....

......

.....

127

529,

284

147

557,

076

167

63,9

22 1

8764

,781

207

593,

206

227

621,

857

a

2) o

ther

list

ed se

curit

ies

......

......

......

......

..

1

2853

,637

148

53,8

55 1

6845

,906

188

46,8

44 2

0899

,543

228

100,

699

b

1) u

nlis

ted

gove

rnm

ent s

ecur

ities

.....

......

.

1

29 1

49 1

69 1

89 2

09 2

29

b

2) o

ther

unl

iste

d se

curit

ies .

......

......

......

....

1

301,

965

150

1,96

5 1

701,

569

190

1,75

5 2

103,

534

230

3,72

0

c) c

onve

rtibl

e bo

nds .

......

......

......

......

......

..

1

31 1

51 1

71 1

91 2

11 2

31

5. S

hare

s in

inve

stm

ent p

ools

.....

......

......

......

.

1

32 1

52 1

72 1

92 2

12 2

32

7. O

ther

fina

ncia

l inv

estm

ents

.....

......

......

......

133

153

173

799

193

682

213

799

233

682

182

Not

es -

Ann

ex 9

Com

pany

VIT

TOR

IA A

SSIC

UR

AZI

ON

IY

ear

2009

Ass

ets -

Cha

nges

in o

ther

fina

ncia

l inv

estm

ents

- in

vest

men

t por

tfolio

: equ

ity in

vest

men

ts, u

nit t

rust

uni

ts, b

onds

and

oth

er

fix

ed-in

tere

st se

curit

ies,

shar

es in

inve

stm

ent p

ools

and

oth

er fi

nanc

ial i

nves

tmen

ts (c

aptio

ns C

.III.1

, 2, 3

, 5, 7

)

Equi

ty in

vest

men

tsU

nit t

rust

uni

tsB

onds

and

oth

er

Shar

es in

inve

stm

ent

Oth

er fi

nanc

ial

fixed

-inte

rest

secu

ritie

spo

ols

inve

stm

ents

C.II

I.1C

.III.2

C.II

I.3C

.III.5

C.II

I.7

Ope

ning

boo

k va

lue

......

......

......

......

......

......

......

......

......

......

....

+

1 2

16,

547

41

806,

154

81

101

Incr

ease

of t

he y

ear:

......

......

......

......

......

......

......

......

......

......

...+

2

22

42

221,

494

82

102

2,39

5

for:

acqu

isiti

ons

......

......

......

......

......

......

......

......

......

......

......

...

3 2

3 4

321

5,04

9 8

3 1

03

writ

e-ba

cks

......

......

......

......

......

......

......

......

...

4 2

4 4

4 8

4 1

04

tran

sfer

s fro

m th

e tra

ding

por

tfolio

......

......

......

......

......

....

5

25

45

85

105

oth

er v

aria

tions

.....

......

......

......

......

......

......

......

......

......

.....

6

26

46

6,44

5 8

6 1

062,

395

Dec

reas

e of

the

year

: ....

......

......

......

......

......

......

......

....

-

7 2

711

8 4

710

9,68

8 8

7 1

071,

357

for:

sale

s ...

......

......

......

......

......

......

......

......

......

......

......

......

.....

8

28

48

45,1

15 8

8 1

08

writ

e-do

wns

.....

......

......

......

......

......

......

......

......

......

......

....

9

29

49

89

109

tran

sfer

s to

the

tradi

ng p

ortfo

lio ..

......

......

......

......

......

......

10

30

50

62,8

41 9

0 1

10

oth

er v

aria

tions

.....

......

......

......

......

......

......

......

......

......

.....

11

31

118

51

1,73

2 9

1 1

111,

357

Boo

k va

lue

.....

......

......

......

......

......

......

......

......

......

......

......

.....

12

32

6,42

9 5

291

7,96

0 9

2 1

121,

038

Cur

rent

val

ue ..

......

......

......

......

......

......

......

......

......

......

......

......

13

33

6,63

7 5

396

4,11

5 9

3 1

13

183

Notes - Annex 10

Year 2009


Assets - Changes in loans and deposits with banks (captions C.III.4, 6)

Loans Deposits with banks

C.III.4 C.III.6

Opening book value ....................................................................................... + 1 12,487 21 10,000

Increase of the year ........................................................................................ + 2 3,656 22

for: lending ..................................................................................................... 3 3,656

write-backs .............................................................................................. 4

other variations ........................................................................................ 5

Decrease of the year: ...........................................................….…........… - 6 4,835 26 10,000

for: repayments ............................................................................................. 7 4,835

write-downs.............................................................................................. 8

other variations ........................................................................................ 9

Book value .................................................................................................... 10 11,308 30

184

Not

es -

Ann

ex 1

1

Com

pany

Vitt

oria

Ass

icur

azio

ni S

.p.A

.

Yea

r20

09

Ass

ets -

Lis

t of a

sset

s rel

atin

g in

dex-

linke

d po

licie

s (ca

ptio

n D

.I)

Uni

t tru

st c

ode:

Uni

t tru

st d

escr

iptio

n:

Cur

rent

val

ueA

cqui

sitio

n co

st

Yea

rPr

evio

us y

ear

Yea

rPr

evio

us y

ear

I.La

nd a

nd b

uild

ings

.....

......

......

......

......

......

......

......

......

......

.....

1

21

41

61

II.

Inve

stm

ents

in g

roup

and

oth

er c

ompa

nies

:

1. E

quity

inve

stm

ents

.....

......

......

......

......

......

......

......

......

......

. 2

22

42

62

2. B

onds

.....

......

......

......

......

......

......

......

......

......

......

......

......

....

3 2

3 4

3 6

3

3. L

oans

.....

......

......

......

......

......

......

......

......

......

......

......

......

....

4 2

4 4

4 6

4

III.

Uni

t tru

st u

nits

.....

......

......

......

......

......

......

......

......

......

......

......

5

33,3

74 2

531

,504

45

31,9

85 6

539

,020

IV.

Oth

er fi

nanc

ial i

nves

tmen

ts:

1.

Equ

ity in

vest

men

ts ..

......

......

......

......

......

......

......

......

......

....

66,

492

26

5,15

5 4

67,

853

66

8,61

3

2. B

onds

and

oth

er fi

xed-

inte

rest

secu

ritie

s ....

......

......

......

....

725

,984

27

24,1

11 4

728

,705

67

29,2

34

3. B

ank

depo

sits

.....

......

......

......

......

......

......

......

......

......

......

....

8 2

8 4

8 6

8

4. O

ther

fina

ncia

l inv

estm

ents

.....

......

......

......

......

......

......

......

9

29

49

69

V.

Oth

er a

sset

s ....

......

......

......

......

......

......

......

......

......

......

......

.....

10

293

30

69 5

029

3 7

069

VI.

Liqu

id fu

nds .

......

......

......

......

......

......

......

......

......

......

......

......

.. 1

183

6 3

13,

054

51

836

71

3,05

6

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

... 1

2 3

2 5

2 7

2

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

... 1

3 3

3 5

3 7

3

Tot

al ..

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

. 14

66,9

79 3

463

,893

54

69,6

72 7

479

,992

185

Not

es -

Ann

ex 1

2

Com

pany

Vitt

oria

Ass

icur

azio

ni S

.p.A

.

Yea

r20

09

Ass

ets -

Lis

t of a

sset

s aris

ing

from

pen

sion

fund

man

agem

ent (

capt

ion

D.II

)

Cod

e: P

ensi

on fu

nd d

escr

i ptio

n

Cur

rent

val

ueA

cqui

sitio

n co

stY

ear

Prev

ious

yea

rY

ear

Prev

ious

yea

r

I. In

vest

men

ts in

gro

up a

nd o

ther

com

pani

es:

1. E

quity

inve

stm

ents

.....

......

......

......

......

......

......

......

......

......

. 1

21

41

61

2. B

onds

.....

......

......

......

......

......

......

......

......

......

......

......

......

....

2 2

2 4

2 6

2

II.

Oth

er fi

nanc

ial i

nves

tmen

ts:

1.

Equ

ity in

vest

men

ts ..

......

......

......

......

......

......

......

......

......

....

3 2

3 4

3 6

3

2. B

onds

and

oth

er fi

xed-

inte

rest

secu

ritie

s ....

......

......

......

....

44,

284

24

2,42

2 4

44,

133

64

2,39

5

3. U

nit t

rust

uni

ts ..

......

......

......

......

......

......

......

......

......

......

.....

53,

629

25

1,77

8 4

53,

618

65

2,68

6

4. B

ank

depo

sits

.....

......

......

......

......

......

......

......

......

......

......

....

6 2

6 4

6 6

6

5. O

ther

fina

ncia

l inv

estm

ents

.....

......

......

......

......

......

......

......

7

27

47

67

III.

Oth

er a

sset

s ....

......

......

......

......

......

......

......

......

......

......

......

......

8

78 2

817

8 4

879

68

178

IV.

Liqu

id fu

nds .

......

......

......

......

......

......

......

......

......

......

......

......

.. 9

830

29

1,19

6 4

983

0 6

91,

196

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

...

10 3

0 5

0 7

0

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

...

11 3

1 5

1 7

1

Tot

al ..

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

. 12

8,82

1 3

25,

574

52

8,66

0 7

26,

455

186

Notes - Annex 13

Company VITTORIA ASSICURAZIONI S.p.A. Year 2009

Liabilities - Changes in premium reserve (caption C.I.1) and claims reserve (caption C.I.2) of non-life business

Type Year Previous year Change

Premium reserve:

Unearned premium reserve .......................................... 1 229,993 11 216,216 21 13,777

Reserve for current risks: ............................................. 2 14 12 22 14

Book value....................................................................... 3 230,007 13 216,216 23 13,791

Claims reserve:

Reserve for claims settlement and direct expenses ..... 4 480,678 14 448,420 24 32,258

Reserve for settlement costs ....................................... 5 36,185 15 33,890 25 2,295

IBNR reserve ............................................................... 6 32,645 16 28,125 26 4,520

Book value ...................................................................... 7 549,508 17 510,435 27 39,073

187

Notes - Annex 14


Liabilities - Changes in the mathematical reserves (caption C.II.1) and profit participation and reimbursement reserve(caption C.II.4)

Type Year Previous year Change

Pure premium reserve ............................................................ 1 704,440 11 656,886 21 47,554

Premiums carried forward ..................................................... 2 14,510 12 14,750 22 -240

Mortality risk reserve ............................................................. 3 5 13 9 23 -4

Integration reserves ............................................................... 4 2,945 14 2,523 24 422

Book value ............................................................................ 5 721,900 15 674,168 25 47,732

Profit participation and reimbursement reserve...................... 6 29 16 24 26 5

188

Not

es -

Ann

ex 1

5

Com

pany

VIT

TOR

IA A

SSIC

UR

AZI

ON

I

Yea

r20

09

Liab

ilitie

s - C

hang

es in

pro

visi

ons f

or c

ontin

genc

ies a

nd o

ther

cha

rges

(cap

tion

E) a

nd e

mpl

oyee

s' le

avin

g en

title

men

t (ca

ptio

n G

.VII

)

Empl

oyee

s' le

avin

g Em

ploy

ees'

leav

ing

entit

lem

ent a

nd

Prov

isio

n fo

r tax

atio

nO

ther

acc

rual

sen

title

men

tsi

mila

r pro

visi

ons

Ope

ning

boo

k va

lue

......

......

......

......

......

......

......

......

......

....

+

1 1

162

4 2

174

1 3

14,

650

Acc

rual

s of t

he y

ear..

......

......

......

......

......

......

......

......

......

....

+

2 1

215

0 2

2 3

21,

601

Oth

er in

crea

ses .

......

......

......

......

......

......

......

......

......

......

.....

+

3 1

3 2

3 3

3

Util

isat

ion

of th

e ye

ar ..

......

......

......

......

......

......

......

......

......

-

4 1

420

4 2

4 3

445

2

Oth

er d

ecre

ases

.....

......

......

......

......

......

......

......

......

......

......

-

5 1

548

25

35

1,40

7

Boo

k va

lue

......

......

......

......

......

......

......

......

......

......

......

......

6

16

522

26

741

36

4,39

2

189

Not

es -

Ann

ex 1

6

Com

pany

VIT

TOR

IA A

SSIC

UR

AZI

ON

I S.p

.A.

Yea

r20

09

List

of a

sset

s and

liab

ilitie

s rel

atin

g to

gro

up a

nd o

ther

com

pani

es

I: A

sset

s

Pare

nt c

ompa

nies

Subs

idia

ries

Rel

ated

com

pani

esA

ssoc

iate

d co

mpa

nies

Oth

er c

ompa

nies

Tota

l

Equi

ty in

vest

men

ts ..

......

......

......

......

......

......

......

.

1

215

7,11

6

3

437

,457

5

39,5

31

623

4,10

4

Bon

ds ..

......

......

......

......

......

......

......

......

......

......

....

7

8

9

1

0

11

1

2

Loan

s ....

......

......

......

......

......

......

......

......

......

......

..

13

1

456

4

15

1

6

17

2,50

0

18

3,06

4

Shar

es in

inve

stm

ent p

ools

......

......

......

......

......

....

1

9

20

2

1

22

2

3

24

Ban

k de

posi

ts ..

......

......

......

......

......

......

......

......

...

25

2

6

27

2

8

29

3

0

Oth

er fi

nanc

ial i

nves

tmen

ts ..

......

......

......

......

......

3

1

32

3

3

34

3

5

36

Dep

osits

with

ced

ing

com

pani

es ..

......

......

......

....

3

7

38

3

9

40

4

1

42

Inve

stm

ents

rela

ting

to

in

dex-

linke

d po

licie

s.....

......

......

......

......

......

......

.. 4

3 4

4 4

5 4

6 4

767

8 4

867

8

Inve

stm

ents

rela

ting

to

pe

nsio

n fu

nd m

anag

emen

t ...

......

......

......

......

......

49

50

51

52

53

829

54

829

Rec

eiva

bles

rela

ting

to

dire

ct in

sura

nce

busi

ness

......

......

......

......

......

......

. 5

5 5

6 5

7 5

8 5

9 6

0

Rec

eiva

bles

rela

ting

to

re

insu

ranc

e bu

sine

ss ..

. ....

......

......

......

......

......

.....

61

62

63

64

65

66

Oth

er re

ceiv

able

s ....

......

......

......

......

......

......

......

.. 6

7 6

827

6 6

9 7

0 7

1 7

227

6

Ban

k an

d po

stal

acc

ount

s.....

......

......

......

......

......

. 7

3 7

4 7

5 7

6 7

712

,644

78

12,6

44

Sund

ry a

sset

s ....

......

......

......

......

......

......

......

......

.. 7

9 8

028

8 8

1 8

2 8

3 8

428

8

Tot

al ..

......

......

......

......

......

......

......

......

......

......

.....

85

86

158,

244

87

88

37,4

57 8

956

,182

90

251,

883

of w

hich

: sub

ordi

nate

d as

sets

.....

......

......

......

......

91

92

93

94

95

96

190

List

of a

sset

s and

liab

ilitie

s rel

atin

g to

gro

up a

nd o

ther

com

pani

es

II: L

iabi

litie

s

Pare

nt c

ompa

nies

Subs

idia

ries

Rel

ated

com

pani

esA

ssoc

iate

d co

mpa

nies

Oth

er c

ompa

nies

Tota

l

Subo

rdin

ated

liab

ilitie

s ....

......

......

......

......

......

.....

97

98

99

100

101

102

Dep

osits

from

rein

sure

rs ..

......

......

......

......

......

....

103

104

105

106

107

108

Paya

bles

aris

ing

from

dire

ct in

sura

nce

busi

ness

.....

......

......

......

......

......

.10

911

011

111

211

311

4

Paya

bles

aris

ing

from

re

insu

ranc

e bu

sine

ss ..

......

......

......

......

......

......

.....

115

116

117

118

119

120

Due

to b

anks

and

oth

er fi

nanc

ial i

nstit

utio

ns ..

...12

112

212

312

412

512

6

Secu

red

debt

s ....

......

......

......

......

......

......

......

......

.12

712

812

913

013

113

2

Sund

ry lo

ans a

nd o

ther

fina

ncia

l pay

able

s ....

.....

133

134

135

136

137

138

Sund

ry p

ayab

les .

......

......

......

......

......

......

......

......

139

140

2,26

814

114

214

314

42,

268

Oth

er li

abili

ties .

......

......

......

......

......

......

......

......

..14

514

614

714

814

915

0

Tot

al ..

......

......

......

......

......

......

......

......

......

......

.....

151

152

2,26

815

315

415

515

62,

268

191

Notes - Annex 17


List of classes I, II, III and IV of "guarantees, commitments and other memorandum and contingency accounts"

Year Previous year

I. Guarantees given:a) sureties and endorsements given in the interest of

parent companies, subsidiaries and related companies .......................... 1 31

b) sureties and endorsements given in the interest of associated companies and other group companies ................................................... 2 32

c) sureties and endorsements given in the interest of third parties ............. 3 33

d) other personal guarantees given in the interest of parent companies, subsidiaries and related companies ........................... 4 34

e) other personal guarantees given in the interest of associated and other group companies .................................................... 5 35

f) other personal guarantees given in the interest of third parties .............. 6 20,500 36 20,500

g) collateral against obligations of parent companies,subsidiaries and related companies ......................................................... 7 37

h) collateral against obligations of associated companies and other group companies .................................................................... 8 38

i) collateral against third party obligations ................................................. 9 39

l) guarantees given against company's obligations .................................... 10 40

m) assets pledged as guarantee deposit againstinwards reinsurance ................................................................................ 11 41

Total .......................................................................................................................... 12 20,500 42 20,500

II. Guarantees received:

a) from associated and other group companies ......................................... 13 43

b) from third parties ................................................................................... 14 7,613 44 6,468

Total .......................................................................................................................... 15 7,613 45 6,468

III. Guarantees given by third parties in the interest of the company:

a) from associated and other group companies............................................ 16 46

b) from third parties .................................................................................... 17 47

Total .......................................................................................................................... 18 48

IV. Commitments:

a) purchase commitments with resale obligation ........................................ 19 49

b) sale commitments with repurchase obligation ........................................ 20 50

c) other commitments . ............................................................................... 21 17,310 51 18,605

Total .......................................................................................................................... 22 17,310 52 18,605

192

Not

es -

Ann

ex 1

8

Com

pany

VIT

TOR

IA A

SSIC

UR

AZI

ON

IY

ear

2009

Com

mitm

ents

for d

eriv

ativ

e tra

nsac

tions

Cur

rent

yea

rPr

evio

us y

ear

Purc

hase

Sale

Purc

hase

Sale

(1)

(2)

(1)

(2)

(1)

(2)

(1)

(2)

Futu

res:

on sh

ares

1

10

1 2

1

121

41

14

1 6

1

161

on b

onds

2

10

2 2

2

122

42

14

2 6

2

162

on c

urre

ncie

s

3

103

23

12

3

43

143

63

16

3

on e

xcha

nge

rate

s

4

104

24

12

4

44

144

64

16

4

othe

r

5

105

25

12

5

45

145

65

16

5

Opt

ions

:on

shar

es

6

106

26

12

6

46

146

66

16

6

on b

onds

7

10

7 2

7

127

47

14

7 6

7

167

on c

urre

ncie

s

8

108

28

12

8

48

148

68

16

8

on e

xcha

nge

rate

s

9

109

29

12

9

49

149

69

16

9

othe

r 1

0

110

30

13

0 5

0

150

70

17

0

Swap

s:on

cur

renc

ies

11

11

1 3

1

131

51

15

1 7

1

171

on e

xcha

nge

rate

s 1

2

112

32

13

2 5

2

152

72

17

2

othe

r 1

3

113

33

13

3 5

3

153

73

17

3

Oth

er tr

ansa

ctio

ns 1

4

114

34

13

4 5

4

154

74

17

4

Tot

al ..

......

......

......

......

......

......

......

......

. 1

5 0

11

5 0

35

0

135

0 5

5 0

15

5 0

75

0

175

0

(1) D

eriv

ativ

es w

hich

invo

lve

or m

ay in

volv

e ca

pita

l for

war

d ex

chan

ges s

houl

d be

stat

ed a

t the

ir re

gula

ted

pric

e; a

ll ot

her d

eriv

ativ

es sh

ould

be

stat

ed a

t the

ir no

min

al v

alue

(2) I

ndic

ate

fair

valu

e of

der

ivat

ives

;

Der

ivat

ive

Not

es: -

Incl

ude

only

der

ivat

ive

trans

actio

ns e

xist

ing

at th

e ba

lanc

e sh

eet d

ate

whi

ch im

ply

a co

mm

itmen

t for

the

com

pany

; whe

re th

e de

rivat

ive

does

not

exa

ctly

mat

ch o

ne o

f the

abo

ve c

aptio

ns o

r rel

ates

to m

ore

than

one

cap

tion,

it sh

ould

be

incl

uded

in th

e on

e m

ore

rela

ted;

no

off

setti

ng is

allo

wed

if n

ot re

late

d to

pur

chas

e/sa

le tr

ansa

ctio

ns re

latin

g to

the

sam

e de

rivat

ive

cate

gory

(sam

e co

nten

ts, m

atur

ity, u

nder

lyin

g as

set,

etc.

).

- D

eriv

ativ

es in

volv

ing

two

curr

ency

swap

s sho

uld

be st

ated

onl

y on

ce, r

efer

ring

to th

e cu

rren

cy to

be

purc

hase

d. D

eriv

ativ

es in

volv

ing

both

inte

rest

rate

and

cur

renc

y sw

aps s

houl

d on

ly b

e in

clud

ed in

cur

renc

y sw

aps.

D

eriv

ativ

es re

latin

g to

inte

rest

rate

swap

s are

cla

ssifi

ed a

s "pu

rcha

ses"

or "

sale

s" d

epen

ding

on

whe

ther

or n

ot th

ey im

ply

the

fixed

rate

pur

chas

e or

sale

.

193

Not

es -

Ann

ex 1

9

Com

pany

VIT

TOR

IA A

SSIC

UR

AZI

ON

I S.p

.A.

Y

ear

2009

Sum

mar

ised

non

-life

bus

ines

s tec

hnic

al a

ccou

nt

Gro

ss p

rem

ium

sG

ross

pre

miu

ms

Gro

ss c

laim

sM

anag

emen

tR

eins

uran

ceac

coun

ted

for

earn

edch

arge

fees

bala

nce

Dir

ect i

nsur

ance

:

Acc

iden

t and

hea

lth in

sura

nce

(cla

sses

1 a

nd 2

) ....

......

......

......

......

141

,246

239

,408

319

,882

414

,831

5-8

39

Thi

rd-p

arty

mot

or li

abili

ty (c

lass

10)

630

8,96

8 7

299,

433

824

3,26

3 9

56,7

00 1

0-7

45

Hul

l ins

uran

ce fo

r mot

or v

ehic

les (

clas

s 3) .

......

......

......

......

......

.....

11

64,9

49 1

262

,740

13

38,5

85 1

423

,244

15

548

Mar

ine,

avi

atio

n an

d tra

nspo

rt in

sura

nce

(cla

sses

4, 5

, 6, 7

, 11

and

12)

......

......

......

......

......

......

......

......

......

..16

4,32

317

3,80

018

18,3

1919

1,10

820

15,6

18

Fire

and

mis

cella

neou

s dam

ages

(cla

sses

8 a

nd 9

) ....

......

......

......

..21

57,0

4622

55,3

7323

41,3

4424

17,1

2325

-2,7

13

Thi

rd-p

arty

gen

eral

liab

ility

(cla

ss 1

3) ..

......

......

......

......

......

......

.....2

630

,311

2729

,014

2816

,303

299,

917

30-5

62

Cre

dit a

nd b

ond

insu

ranc

e (c

lass

es 1

4 an

d 15

) ...

......

......

......

......

..31

10,5

0332

9,29

533

3,66

634

3,73

135

-938

Pec

unia

ry lo

sses

(cla

ss 1

6) .

......

......

......

......

......

......

......

......

......

.....3

616

,053

3720

,688

3813

,676

395,

361

4095

Leg

al p

rote

ctio

n (c

lass

17)

.....

......

......

......

......

......

......

......

......

......

..41

2,58

442

2,54

343

7244

761

45-8

81

Sup

port

and

assi

stan

ce (c

lass

) 18)

.....

......

......

......

......

......

......

......

...46

5,53

747

5,24

348

2,38

849

1,59

050

523

Tot

al d

irec

t ins

uran

ce ..

......

......

......

......

......

......

......

......

......

......

....5

154

1,52

052

527,

537

5339

7,49

854

134,

366

5510

,106

Indi

rect

insu

ranc

e ..

......

......

......

......

......

......

......

......

......

......

......

...56

494

5755

458

116

5986

60-1

79

Tot

al d

omes

tic p

ortf

olio

.....

......

......

......

......

......

......

......

......

......

....61

542,

014

6252

8,09

163

397,

614

6413

4,45

265

9,92

7

For

eign

por

tfol

io .

......

......

......

......

......

......

......

......

......

......

......

......

.6667

6869

70

Tot

al...

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

...71

542,

014

7252

8,09

173

397,

614

7413

4,45

275

9,92

7

194

Notes - Annex 20

Company VITTORIA ASSICURAZIONI Year 2009Summarised life business premiums and reinsurance balance

Direct insurance Indirect insurance Total

Gross premiums: 1 129,293 11 1 21 129,294

a) 1. individual policies ........................................... 2 95,313 12 1 22 95,314

2. group policies .................................................. 3 33,980 13 23 33,980

b) 1. periodic premiums .......................................... 4 40,645 14 1 24 40,646

2. single premiums .............................................. 5 88,648 15 25 88,648

c) 1. non-profit participation contracts..................... 6 36,897 16 1 26 36,898

2. profit participation contracts............................ 7 89,538 17 27 89,538

3. contracts where the investment risk is borne by policyholders andpension fund .................................................... 8 2,858 18 28 2,858

Reinsurance balance .............................................................. 9 288 19 28 29 316

195

Notes - Annex 21


Income on investments (captions II.2 and III.3)

Non-life business Life business Total

Income on equity investmentsDividends and other income on equity investments in group companies ................................................................... 1 1,713 41 3,935 81 5,648

Dividends and other income on equity investments 2 42 82

in other companies.................................................…………

Total ..............................................................................................................3 1,713 43 3,935 83 5,648

Income on investments in land and buildings ...........................................4 202 44 84 202

Income on other investments: Income on bonds issued by group companies................................................................... 5 45 85

Interest on loans to group companies .................................................................. 6 46 86

Income on unit trust units ..........................................................7 47 69 87 69

Income on bonds and other fixed-interest securities .................8 19,443 48 30,101 88 49,544

Interest on loans ....................................................................... 9 49 575 89 575

Income on shares of investment pools ...................................... 10 50 90

Interest on bank deposits............................................................ 11 51 91

Income on other financial investments ..................................... 12 52 92

Interest on deposits with ceding companies...............................13 53 18 93 18

Total ..............................................................................................................14 19,443 54 30,763 94 50,206

Adjustments to investment values: Land and buildings ....................................................................15 55 95

Equity investments in group companies.................................... 16 56 96

Bonds issued by group companies .................................................................. 17 57 97

Other equity investments ...........................................................18 58 98

Other bonds ............................................................................... 19 2,317 59 661 99 2,978

Other financial investments........................................................20 60 100

Total ..............................................................................................................21 2,317 61 661 101 2,978

Profits on sale of investments:

Profit on sale of land and buildings ...........................................22 62 102

Profit on sale of equity investments in group companies .................................................................. 23 63 103

Profit on sale of bonds issued by groupcompanies ..................................................................................24 64 104

Profit on sale of other equity investments .................................25 65 105

Profit on sale of other bonds ..................................................... 26 21 66 123 106 144

Profit on sale of other financial investments..............................27 84 67 107 84

Total ..............................................................................................................28 105 68 123 108 228

TOTAL ........................................................................................................................ 29 23,780 69 35,482 109 59,262

196

Notes - Annex 22


Income and non-realised capital gains relating to investments benefiting policyholdersbearing the risk and investments stemming from pension fund management(caption II.3)

I. Investments relating to index-linked policies

Amount

Income on:Land and buildings ........................................................................................... 1

Investments in group companies ...................................................................... 2

Unit trust units ........................................................................................ 3 21

Other financial investments .............................................................................. 4 951

- of which: bonds............................................. 5 706

Other assets ...................................................................................................... 6 58

Total ..................................................................................................................................... 7 1,030

Profit on sale of investmentsProfit on sale of land and buildings .................................................................. 8

Profit on sale of investments in group companies ........................................... 9

Profit on sale of unit trust units ........................................................................ 10 1,974

Profit on sale of other financial investmentsi ................................................... 11 2,193

- of which: bonds ........................................... 12 1,231

Other income..................................................................................................... 13

Total ..................................................................................................................................... 14 4,167

Non-realised capital gains ................................................................................................. 15 10,500

TOTAL.......................................................................................................................................…......... 16 15,697

II. Investments relating to pension fund management

Amount

Income on:Investments in group companies....................................................................... 21

Other financial investments .............................................................................. 22 186

- of which: bonds............................................. 23 134

Other assets ...................................................................................................... 24

Total ..................................................................................................................................... 25 186

Profit on sale of investmentsProfit on sale of investments in group companies ........................................... 26

Profit on sale of other financial investments..................................................... 27 6

- of which: bonds ............................................ 28

Other income..................................................................................................... 29

Total ..................................................................................................................................... 30 6

Non-realised capital gains .................................................................................................. 31 961

TOTAL ......................................................................................................................................….....… 32 1,153

197

Notes - Annex 23


Capital and financial charges (captions II.9 and III.5)


Investment management and other charges

Charges relating to equity investments ..................................... 1 83 31 32 61 115

Charges relating to investments in land and buildings............... 2 125 32 62 125

Bond charges ............................................................................. 3 1,454 33 1,453 63 2,907

Charges relating to unit trust units............................................. 4 3 34 3 64 6

Charges relating to shares in investment pools ......................... 5 35 65

Other financial investment charges ........................................... 6 36 66

Interest on deposits from reinsurers .......................................... 7 94 37 919 67 1,013

Total .................................................................................................................. 8 1,759 38 2,407 68 4,166

Adjustments to investment values: Land and buildings .................................................................... 9 39 69

Equity investments in group companies .................................... 10 495 40 70 495

Bonds issued by group companies ............................................ 11 41 71

Other equity investments............................................................ 12 42 72

Other bonds ............................................................................... 13 43 73

Other financial investments ....................................................... 14 44 74

Total .................................................................................................................. 15 495 45 75 495

Loss on sale of investmentsLoss on sale of land and buildings ............................................................................. 16 46 76

Loss on sale of equity investments ............................................ 17 47 77

Loss on sale of bonds .............................................................. 18 87 48 42 78 129

Loss on sale of other financial investments ............................. 19 49 79

Total .................................................................................................................. 20 87 50 42 80 129

TOTAL ................................................................................................................. 21 2,341 51 2,449 81 4,790

198

Notes - Annex 24


Capital and financial charges and non-realised capital losses relating to investments benefiting policyholders who bear the risk and investments stemming from pension fund management (caption II.10)

I. Investments relating to index-linked policies

Amount

Management charges arising from:

Land and buildings ........................................................................................ 1

Investments in group companies ................................................................... 2

Unit trust units ........................................................................................ 3

Other financial investments ........................................................................... 4 14

Other assets .................................................................................................... 5 345

Total ................................................................................................................................... 6 359

Loss on sale of investments

Loss on sale of land and buildings ................................................................. 7

Loss on sale of investments in group companies .......................................... 8

Loss on sale of unit trust units ....................................................................... 9 253

Loss on sale of other financial investments ................................................... 10 273

Other charges.................................................................................................. 11

Total ................................................................................................................................... 12 526

Non-realised capital losses ............................................................................................... 13 1,106

TOTAL ................................................................................................................................................. 14 1,991

II. Investments relating to pension fund management

Amounts

Management charges arising from:

Investments in group companies .................................................................. 21

Other financial investments ........................................................................... 22 100

Other assets..................................................................................................... 23 91

Total ................................................................................................................................... 24 191

Loss on sale of investments

Loss on sale of investments in group companies .......................................... 25

Loss on sale of other financial investments ................................................. 26

Other charges ................................................................................................. 27

Total ................................................................................................................................... 28

Non-realised capital losses ............................................................................................... 29 2

TOTAL ................................................................................................................................................. 30 193

199

Company VITTORIA ASSICURAZIONI S.p.A.Non-life business- Summarised technical

Class 01 Class 02Accident insurance Health insurance

(name) (name)

Direct insurance gross of outwards reinsuranceGross premiums accounted for .......................................................... + 1 31,925 1 9,321

Change in premium reserve (+ o -) ..................................................... - 2 1,524 2 314

Charges relating to claims ................................................................... - 3 12,677 3 7,205

Change in other technical reserves (+ or -) (1) .................................. - 4 4

Other technical captions, net (+ or -) .................................................. + 5 -166 5 -35

Management fees................................................................................. - 6 11,928 6 2,903

Direct insurance technical result (+ or -) ............................................. A 7 5,630 7 -1,136

Outwards reinsurance result (+ or -) ................................................... B 8 -747 8 -92

Indirect insurance net result (+ o -) ...................................................... C 9 9

Change in equalisation reserve (+ o -) .......................................... D 10 10

Income on investments transferred from non-technical account .. E 11 576 11 275

Result of technical account (+ or -) ...... (A + B + C - D + E) 12 5,459 12 -953

Class 07 Class 08Cargo insurance Fire and natural events

(name) (name)

Direct insurance gross of outwards reinsuranceGross premiums accounted for .......................................................... + 1 2,027 1 26,773

Change in premium reserve (+ or -) .................................................. - 2 386 2 934

Charges relating to claims.................................................................... - 3 559 3 16,317

Change in other technical reserves (+ or -) (1).................................... - 4 4

Other technical captions, net (+ o -) ................................................... + 5 -1 5 -221

Management fees ............................................................................... - 6 618 6 8,867

Direct insurance technical result (+ or -) ............................................. A 7 463 7 434

Outwards reinsurance result (+ or -) .................................................. B 8 -128 8 -2,365

Indirect reinsurance net result (+ o -) .................................................. C 9 9 45

Change in equalisation reserve (+ o -) .......................................... D 10 6 10 80

Income on investments transferred from non-technical account .. E 11 45 11 850

Result of technical account (+ or -) (A + B + C - D + E) 12 374 12 -1,116

Class 13 Class 14Third-party general liability Credit insurance

(name) (name)

Direct insurance gross of outwards reinsuranceGross premiums accounted for + 1 30,311 1 1,980

Change in premium reserve (+ or -) .................................................. - 2 1,297 2 1,330

Charges relating to claims.................................................................... - 3 16,303 3 10

Change in other technical reserves (+ or -) (1) .................................. - 4 4

Other technical captions, net (+ or -) .................................................. + 5 -214 5

Management fees ................................................................................ - 6 9,917 6 885

Direct insurance technical result (+ or -) ............................................. A 7 2,580 7 -245

Outwards reinsurance result (+ or -) .................................................. B 8 -562 8

Indirect reinsurance net result (+ o -) .................................................. C 9 89 9

Change in equalisation reserve (+ o -) .......................................... D 10 10 -1

Income on investments transferred from non-technical account .. E 11 1,808 11 31

Result of technical account (+ or -) (A + B + C - D + E) 12 3,915 12 -213

(1) This caption includes changes in "Other technical reserves" as well as changes in "Profit participation and reimbursement reserve"

200

Notes - Annex 25 Year 2009

account by line of business - Domestic portfolio

Class 03 Class 04 Class 05 Class 06Motor vehicle hulls Railway truck hulls Aviation hulls Marine hulls

(name) (name) (name) (name)

1 64,949 1 2 1 1,059 1 725

2 2,209 2 -1 2 250 2 -116

3 38,585 3 3 1,082 3 16,480

4 4 4 4

5 -8 5 5 5

6 23,244 6 6 131 6 253

7 903 7 3 7 -404 7 -15,892

8 548 8 8 324 8 15,638

9 9 9 39 9

10 195 10 10 10

11 973 11 11 9 11 17

12 2,229 12 3 12 -32 12 -237

Class 09 Class 10 Class 11 Class 12Miscellaneous damages Third-party motor liability Third-party aviation liability Third-party marine liability


1 30,273 1 308,968 1 60 1 450

2 739 2 9,535 2 -4 2 8

3 25,026 3 243,263 3 -153 3 351

4 4 4 4

5 -119 5 1,462 5 5 1

6 8,256 6 56,700 6 21 6 85

7 -3,867 7 932 7 196 7 7

8 -348 8 -745 8 -209 8 -7

9 9 9 9

10 31 10 10 10

11 342 11 10,737 11 1 11 13

12 -3,904 12 10,924 12 -12 12 13

Class 15 Class 16 Class 17 Class 18Bond insurance Pecuniary losses Legal protection Support and assistance


1 8,523 1 16,052 1 2,584 1 5,537

2 -122 2 -4,635 2 41 2 294

3 3,656 3 13,676 3 72 3 2,388

4 4 4 4

5 -296 5 4 5 -2 5 1

6 2,846 6 5,361 6 761 6 1,590

7 1,847 7 1,654 7 1,708 7 1,266

8 -938 8 95 8 -881 8 523

9 9 9 9

10 10 10 10

11 555 11 849 11 7 11 31

12 1,464 12 2,598 12 834 12 1,820

201

Not

es -

Ann

ex 2

6

Com

pany

VIT

TOR

IA A

SSIC

UR

AZI

ON

IY

ear

2009

Sum

mar

ised

non

-life

bus

ines

s tec

hnic

al a

ccou

ntD

omes

tic p

ortfo

lio

Dire

ct in

sura

nce

risk

Indi

rect

insu

ranc

e ris

kR

etai

ned

risks

Dire

ct ri

skTr

ansf

erre

d ris

ksIn

war

ds re

insu

ranc

e ris

ksIn

war

ds re

insu

ranc

e ris

ksTo

tal

12

34

5 =

1 - 2

+ 3

- 4

Prem

ium

s acc

ount

ed fo

r ....

......

......

......

......

......

......

......

......

......

......

......

......

...+

1

541,

519

11

30,2

30 2

149

4 3

121

3 4

151

1,57

0

Cha

nge

in p

rem

ium

rese

rve

(+ o

r -)

......

......

......

......

......

......

......

......

......

......

-

213

,983

12

282

22

-60

32

-20

42

13,6

61

Cha

rges

rela

ting

to c

laim

s ....

......

......

......

......

......

......

......

......

......

......

......

......

-

339

7,49

6 1

332

,134

23

116

33

50 4

336

5,42

8

Cha

nge

in o

ther

tech

nica

l res

erve

s (+

or -)

(1) .

......

......

......

......

......

......

......

.-

4

14

24

34

44

Oth

er te

chni

cal c

aptio

ns, n

et (+

or -

) ....

......

......

......

......

......

......

......

......

......

.+

5

405

15

25

35

45

405

Man

agem

ent f

ees .

......

......

......

......

......

......

......

......

......

......

......

......

......

......

....

-

613

4,36

6 1

67,

920

26

86 3

64

46

126,

528

Tec

hnic

al r

esul

t (+

or -)

.....

......

......

......

......

......

......

......

......

......

......

......

......

......

..

7

-3,9

21 1

7-1

0,10

6 2

735

2 3

717

9 4

76,

358

Cha

nge

in e

qual

isat

ion

rese

rves

(+ o

r -) .

......

......

......

......

......

......

......

......

.....

- 4

831

1

Inco

me

on in

vest

men

ts tr

ansf

erre

d fr

om n

on-te

chni

cal a

ccou

nt ..

......

......

...+

9

17,1

05 2

913

49

17,1

18

Res

ult o

f tec

hnic

al a

ccou

nt (+

o -)

.....

......

......

......

......

......

......

......

......

......

......

...

10

13,1

84 2

0-1

0,10

6 3

036

5 4

017

9 5

023

,165

(1) T

his c

aptio

n in

clud

es c

hang

es in

"O

ther

tech

nica

l res

erve

s" a

s wel

l as c

hang

es in

"Pr

ofit

parti

cipa

tion

and

reim

burs

emen

t res

erve

"

202

N

otes

- A

nnex

27

Com

pany

VIT

TOR

IA A

SSIC

UR

AZI

ON

IY

ear

2009

Life

bus

ines

s - S

umm

aris

ed te

chni

cal a

ccou

nt b

y lin

e of

bus

ines

s - D

omes

tic p

ortfo

lio

Cla

ss01

Cla

ss02

Cla

ss03

(nam

e)(n

ame)

(nam

e)D

irec

t ins

uran

ce g

ross

of o

utw

ards

rei

nsur

ance

G

ross

pre

miu

ms a

ccou

nted

for .

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

..+

193

,995

1 1

1,03

2

C

harg

es re

latin

g to

cla

ims .

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

....

- 2

78,1

52 2

211

,613

C

hang

e in

mat

hem

atic

al a

nd o

ther

tech

nica

l res

erve

s (+

or -)

(*)

......

......

......

......

......

......

...-

317

,173

3 3

3,09

1

O

ther

tech

nica

l cap

tions

, net

(+ o

r -)

......

......

......

......

......

......

......

......

......

......

......

......

......

.....

+ 4

-181

4 4

466

M

anag

emen

t fee

s.....

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

.....

- 5

15,0

32 5

518

9

In

com

e on

inve

stm

ents

net

of t

he p

ortio

n tra

nsfe

rred

to th

e no

n-te

chni

cal a

ccou

nt (*

*) ..

...+

623

,306

6 6

13,8

65

D

irec

t ins

uran

ce r

esul

t gro

ss o

f out

war

ds r

eins

uran

ce (+

or

-) .

......

......

......

......

......

......

...A

76,

763

7 7

470

O

utw

ards

rei

nsur

ance

res

ult (

+ or

-)B

836

0 8

8

Indi

rect

insu

ranc

e ne

t res

ult (

+ or

-)...

......

......

......

......

......

......

......

......

......

......

......

......

......

....C

9-2

8 9

9

Res

ult o

f tec

hnic

al a

ccou

nt (+

or

-) ..

......

......

......

......

. (A

+ B

+ C

)

10

7,09

5 1

0 1

047

0

Cla

ss04

Cla

ss05

Cla

ss06

Hea

lth in

sura

nce

Cap

italis

atio

n tra

nsac

tions

Uni

t tru

st M

anag

emen

t(n

ame)

(nam

e)(n

ame)

Dir

ect i

nsur

ance

gro

ss o

f out

war

ds r

eins

uran

ce

Gro

ss p

rem

ium

s acc

ount

ed fo

r +

134

6 1

32,0

93 1

1,82

7

C

harg

es re

latin

g to

cla

ims .

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

....

- 2

225

,718

291

C

hang

e in

mat

hem

atic

al a

nd o

ther

tech

nica

l res

erve

s (+

or -)

(*)

- 3

313

310

,266

32,

664

O

ther

tech

nica

l cap

tions

, net

(+ o

r -)

+ 4

4-5

477

M

anag

emen

t fee

s ....

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

- 5

74 5

2,48

9 5

35

In

com

e on

inve

stm

ents

net

of t

he p

ortio

n tra

nsfe

rred

to th

e no

n-te

chni

cal a

ccou

nt (*

*) ..

...+

6-2

65,

790

696

0

D

irec

t ins

uran

ce r

esul

t gro

ss o

f out

war

ds r

eins

uran

ce (+

or

-) .

......

......

......

......

......

......

...A

7-4

3 7

-595

774

O

utw

ard

rein

sura

nce

resu

lt....

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

.....

B

8

-72

8 8

Indi

rect

insu

ranc

e ne

t res

ult (

+ or

-) ..

......

......

......

......

......

......

......

......

......

......

......

......

......

....C

9 9

9

Res

ult o

f tec

hnic

al a

ccou

nt (+

or

-) ..

......

......

......

......

......

. (A

+ B

+ C

)

10

-115

10

-595

10

74

(*)

The

cap

tion

"oth

er te

chni

cal r

eser

ves"

incl

udes

"ot

her t

echn

ical

rese

rves

" an

d "t

echn

ical

rese

rves

whe

re in

vest

men

t ris

k is

bor

ne b

y po

licyh

olde

rs a

nd re

serv

es re

latin

g to

pen

sion

fund

man

agem

ent"

.

(**)

Alg

ebra

ic su

m o

f the

item

s rel

atin

g to

the

dom

estic

line

of b

usin

ess a

nd p

ortfo

lio in

clud

ed in

cap

tions

II.2

, II.3

, II.9

, II.1

0 an

d II

.12

of th

e pr

ofit

and

loss

acc

ount

Who

le a

nd te

rm li

fe in

sura

nce

Insu

ranc

e li

nked

to u

nit t

rust

s M

arria

ge a

nd b

irth

insu

ranc

e

203

Not

es -

Ann

ex 2

8

Com

pany

VIT

TOR

IA A

SSIC

UR

AZI

ON

IY

ear

2009

Sum

mar

ised

life

bus

ines

s tec

hnic

al a

ccou

ntD

omes

tic p

ortfo

lio

Dire

ct in

sura

nce

risks

Indi

rect

insu

ranc

e ris

ksR

etai

ned

risks

Dire

ct ri

sks

Tran

sfer

red

risks

Inw

ards

rein

sura

nce

risks

Out

war

ds re

insu

ranc

e ris

ksTo

tal

12

34

5 =

1 - 2

+ 3

- 4

Prem

ium

s acc

ount

ed fo

r ....

......

......

......

......

......

......

......

......

......

......

......

......

.....

+ 1

129,

293

11

2,21

3 2

11

31

41

127,

081

Cha

rges

rela

ting

to c

laim

s.....

......

......

......

......

......

......

......

......

......

......

......

......

..-

211

5,57

4 1

21,

001

22

165

32

42

114,

738

Cha

nge

in m

athe

mat

ical

and

othe

r tec

hnic

al re

serv

es (

+ or

-) (*

) ...

......

......

......

......

......

......

......

......

......

.....

- 3

33,5

07 1

31,

084

23

-124

33

43

32,2

99

Oth

er te

chni

cal c

aptio

ns, n

et (+

or -

) ...

......

......

......

......

......

......

......

......

......

....+

435

7 1

4 2

4 3

4 4

435

7

Man

agem

ent f

ees..

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

.-

517

,819

15

417

25

35

45

17,4

02

Inco

me

on in

vest

men

ts n

et o

f the

por

tion

trans

ferr

ed to

the

no

n-te

chni

cal a

ccou

nt (*

*)...

......

......

......

......

......

......

......

......

......

......

......

......

...+

643

,919

26

12 4

643

,931

Res

ult o

f tec

hnic

al a

ccou

nt (+

or

-) ..

......

......

......

......

......

......

......

......

......

.....

7

6,66

9 1

7-2

89 2

7-2

8 3

7 4

76,

930

(*

) T

he c

aptio

n "o

ther

tech

nica

l res

erve

s" in

clud

es "

othe

r tec

hnic

al re

serv

es"

and

"tec

hnic

al re

serv

es w

here

inve

stm

ent r

isk

is b

orne

by

polic

yhol

ders

and

rese

rves

rela

ting

to p

ensi

on fu

nd m

anag

emen

t".

(**)

Alg

ebra

ic su

m o

f the

item

s rel

atin

g to

the

dom

estic

por

tfolio

incl

uded

in c

aptio

ns I

I.2, I

I.3, I

I.9, I

I.10

and

II.1

2 of

the

prof

it an

d lo

ss a

ccou

nt

204

Notes - Annex 29


Summarised life and non-life business technical accounts - foreign portfolio

Section I:Non-life businesses

Total lines of business

Direct insurance gross of outwards reinsuranceGross premiums accounted for ........................................................................................... + 1

Change in premium reserve (+ or -)..................................................................................... - 2

Charges relating to claims ................................................................................................... - 3

Change in other technical reserves (+ or -) (1)..................................................................... - 4

Other technical captions, net (+ or -).................................................................................... + 5

Management fees ................................................................................................................ - 6

Direct insurance technical result (+ or -) ........................................................................ A 7

Outwards reinsurance result (+ or -) ........................................................................... B 8

Indirect insurance net result (+ or -)........................................................................... C 9

Change in equalisation reserves (+ or -) ......................................................... D 10

Income on investments transferred from non-technical account ................................ E 11

Result of technical account (+ or -) ................................................. (A + B + C - D + E) 12

Section II:Life business

Total lines of business

Direct insurance gross of outwards reinsurance Gross premiums accounted for ............................................................................................ + 1

Charges relating to claims ................................................................................................... - 2

Change in mathematical and other technical reserves (+ or -) (2) ....................................... - 3

Other technical captions, net (+ or -) ................................................................................... + 4

Management fees ................................................................................................................ - 5

Income on investments net of the portion transferred to the non-technical account (3) ..... + 6

Direct insurance result gross of outwards reinsurance (+ or -) ................................... A 7

Outwards reinsurance result (+ or -) ............................................................................... B 8

Indirect insurance net result (+ or -) ............................................................................... C 9

Result of technical account (+ or -) ............................................................... (A + B + C) 10

(1) This caption includes changes in "Other technical reserves" as well as changes in "Profit participation and reimbursement reserve"

(2) The caption "other technical reserves" includes "other technical reserves" and "technical reserves where investment risk is borne by policyholders and reserves arising from pension fund management".

(3) Algebraic sum of the items relating to the foreign portfolio included in captions II.3, II.2, II.3, II.9 and II.10 of the profit and loss account

205

Not

es -

Ann

ex 3

0

Com

pany

VIT

TOR

IA A

SSIC

UR

AZI

ON

IY

ear

2009

Inte

rcom

pany

rela

tions

hips

I: In

com

e

Pare

nt c

ompa

nies

Subs

idia

ries

Rel

ated

com

pani

esA

ssoc

iate

d co

mpa

nies

Oth

er c

ompa

nies

Tota

l

Inco

me

on in

vest

men

ts

Inco

me

on la

nd a

nd b

uild

ings

.....

......

......

......

......

.....

1

2

3

4

5

6

Div

iden

ds a

nd o

ther

equ

ity in

vest

men

ts...

......

......

....

7

85,

398

9

1

011

2

11

138

1

25,

648

Bon

ds ..

......

......

......

......

......

......

......

......

......

......

......

...

13

1

4

15

1

6

17

1

8

Loan

s……

……

……

……

……

……

……

……

……

. 1

9

20

5

21

2

2

23

38

24

43

Inco

me

on o

ther

fina

ncia

l inv

estm

ents

.....

......

......

...

25

2

615

2

7

28

2

9

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208

Notes - Annex 32

Company VITTORIA ASSICURAZIONI Year 2009Personnel expenses and directors' and statutory auditors' fees I: Personnel expenses


Employees' expenses:

Domestic portfolio:

- Wages and salaries ................................................................................. 1 20,816 31 3,650 61 24,466

- Social security contributions .................................................................. 2 5,550 32 973 62 6,523

- Accruals to the employees' leaving entitlement and similar provisions ........................................................................... 3 1,376 33 241 63 1,617

- Other personnel expenses....................................................................... 4 1,933 34 339 64 2,272

Total ......................................................................................................... 5 29,675 35 5,203 65 34,878

Foreign portfolio:

- Wages and salaries ................................................................................. 6 36 66

- Social security contributions................................................................... 7 37 67

- Other personnel expenses ...................................................................... 8 38 68

Total ......................................................................................................... 9 39 69

Total.............................................................................................................. 10 29,675 40 5,203 70 34,878

Consultants' fees:

Domestic portfolio ................................................................................... 11 25,751 41 22 71 25,773

Foreign portfolio ………………………………………………………… 12 42 72

Total.............................................................................................................. 13 25,751 43 22 73 25,773

Total personnel expenses............................................................................ 14 55,426 44 5,225 74 60,651

II: Allocation captions


Investment management charges.............................................................. 15 348 45 352 75 700

Charges relating to claims ........................................................................ 16 33,843 46 76 33,843

Other acquisition costs ............................................................................ 17 11,107 47 2,889 77 13,996

Other administrative costs ........................................................................ 18 9,943 48 1,984 78 11,927

Administrative and third party charges .................................................... 19 49 79

Other technical captions 20 185 50 80 185

Total ............................................................................................................. 21 55,426 51 5,225 81 60,651

III: Average number of employees for the year

Number

Managers .................................................................................................. 91 20

White collars ........................................................................................... 92 406

Blue collars .............................................................................................. 93

Other ......................................................................................................... 94

Total.............................................................................................................. 95 426

IV: Directors and statutory auditors

Number Fees

Directors ....................................................................................................... 96 17 98 1,495

Statutory auditors …………………………………………………………… 97 3 99 103

209

Participating interest Registered Offices %Ownershipthrough:

Acacia 2000 S.r.l. Milan 65.00%Vittoria Immobiliare S.p.A. 65.00%

Aspevi S.r.l. Milan 100.00%Interbilancia 100.00%

Cadorna Real Estate S.r.l. Milan 70.00%Vittoria Immobiliare S.p.A. 70.00%

Consorzio Movincom S.c.r.l. Turin 39.78%Vittoria Assicurazioni S.p.A. 0.98%Vittoria.Net S.r.l. 38.80%

Forum Mondadori Residenze S.r.l. Milan 100.00%Vittoria Assicurazioni S.p.A. 100.00%

Gestimmobili S.r.l. Milan 80.00%Vittoria Immobiliare S.p.A. 80.00%

Gima Finance SA Luxembourg 32.13%Vittoria Assicurazioni S.p.A. 32.13%

Fiori di S.Bovio S.r.l. Milan 40.00%Immobiliare Bilancia S.r.l. 40.00%

Immobiliare Bilancia S.r.l. Milan 100.00%Vittoria Assicurazioni S.p.A. 100.00%

Immobiliare Bilancia Prima S.r.l. Milan 100.00%Vittoria Assicurazioni S.p.A. 100.00%

Immobiliare Bilancia Seconda S.r.l. Milan 100.00%Vittoria Assicurazioni S.p.A. 100.00%

Immobiliare Bilancia Terza S.r.l. Milan 100.00%Vittoria Assicurazioni S.p.A. 100.00%

Interbilancia S.r.l. Milan 100.00%Vittoria Assicurazioni S.p.A. 80.00%Vittoria Immobiliare S.p.A. 20.00%

Interimmobili S.r.l. Rome 80.00%Vittoria Immobiliare S.p.A. 80.00%

Laumor Holdings Sarl Luxembourg 29.00%Vittoria Assicurazioni S.p.A. 29.00%

Lauro 2000 S.r.l. Milan 100.00%Vittoria Assicurazioni S.p.A. 100.00%

Le Api S.r.l. Milan 30.00%Interbilancia S.r.l. 30.00%

Mosaico S.p.A. Turin 25.00%Vittoria Immobiliare S.p.A. 25.00%

Companies in which an unquoted Shareholding higher than 10% is held

210

Participating interest Registered Offices %Ownershipthrough:

Pama & Partners S.r.l. Genoa 25.00%Vittoria Immobiliare S.p.A. 25.00%

Rovimmobiliare S.r.l. Rome 50.00%Vittoria Immobiliare S.p.A. 50.00%

S.in.T. S.p.A. Turin 48.19%Vittoria Assicurazioni S.p.A. 48.19%

Sivim S.r.l. Milan 49.50%Vittoria Immobiliare S.p.A. 49.50%

Spefin Finanziaria S.p.A. Rome 21.00%Vittoria Service S.r.l. 21.00%

Touring Vacanze S.r.l. Milan 24.00%Vittoria Assicurazioni S.p.A. 24.00%

Vaimm Sviluppo S.r.l. Milan 100.00%Vittoria Immobiliare S.p.A. 100.00%

Valsalaria S.r.l. Rome 51.00%Vittoria Immobiliare S.p.A. 51.00%

Vittoria Immobiliare S.p.A. Milan 87.24%Vittoria Assicurazioni S.p.A. 87.24%

Vittoria Properties S.r.l. Milan 100.00%Vittoria Assicurazioni S.p.A. 99.00%Vittoria Immobiliare S.p.A. 1.00%

Vittoria Service S.r.l. Milan 100.00%Vittoria Assicurazioni S.p.A. 70.00%Vittoria Immobiliare S.p.A. 30.00%

Vittoria.Net S.r.l. Milan 100.00%Interbilancia S.r.l. 100.00%

VP Sviluppo 2015 S.r.l. Milan 40.00%Vittoria Immobiliare S.p.A. 40.00%

VZ Real Estate S.r.l. Turin 49.00%Vittoria Immobiliare S.p.A. 49.00%

VRG Domus S.r.l. Turin 51.00%Vittoria Immobiliare S.p.A. 51.00%

White Finance SA Luxembourg 32.17%Vittoria Assicurazioni S.p.A. 32.17%

Yam Invest NV Amsterdam 18.75%Vittoria Assicurazioni S.p.A. 18.75%

Yarpa S.p.A. Genoa 25.90%Vittoria Assicurazioni S.p.A. 25.90%

211

Management attestation

213

Attestation of consolidated annual financial statements pursuant to Article 81/3 of CONSOB Regulation no. 11971 of 14 May 1999 as subsequently amended and supplemented The undersigned Roberto Guarena and Mario Ravasio, in their respective capacities of Managing Director and Corporate Financial Reporting Manager of Vittoria Assicurazioni SpA, herewith attest, also having taken into account the requirements of Article 154/2, paragraphs 3 and 4, of Italian Legislative Decree no. 58 of 24 February 1998 [the Italian Finance Act]:

• The adequacy of such statements in relation to the enterprise’s characteristics, and

• Effective application

of administrative and accounting procedures for formation of financial statements during the period 1 January 2009-31 December 2009.

It is also attested that annual financial statements as at 31 December 2009:

a) Having been prepared in compliance with (a) the Italian Civil Code, (b) the requirements indicated in Italian Legislative Decree no. 173 of 26 May 1997, (c) the Italian Legislative Decree no. 209 of 7 September 2005, and (d) applicable ISVAP (Italian insurance regulator) ordinances, regulations, and circulars, are – to the best of their knowledge – such as to provide fair and true representation of the assets and liabilities, profit or loss, and financial position of the issuer.

b) Match corporate books and accounting records

Milan, 9 March 2010 Roberto Guarena Mario Ravasio Managing Director Corporate Financial Reporting Manager

215

Board of statutory auditors’ report

217

VITTORIA ASSICURAZIONI S.p.A.

Board of Statutory Auditors’ Report to the Shareholders’ Meeting,

pursuant to Article 153 of Italian Legislative Decree 58/1998 To Shareholders

During the course of FY2009 we performed the supervisory activity envisaged by law, by the CONSOB (Italian securities & exchange commission) memoranda, by the ISVAP (Italian insurance regulator), and by established professional practices. More specifically, in compliance with the tasks attributed to the Board of Statutory Auditors by Italian Legislative Decree 58/1998, we herewith officially report that we:

• Attended meetings of the Board of Directors and received at least quarterly information about the activity performed and the most important transactions in business, financial, and capital terms undertaken by the company and its subsidiaries, assuring ourselves that the decisions taken complied with law and the corporate purpose and were not in a situation of conflict of interest or contrary to shareholders’ resolutions;

• Ascertained, within our sphere of competence, observance of standards of proper management by directors in performance of their tasks, by means of direct observation and gathering of information from those responsible for administrative compliance and from meetings with the independent auditor to exchange relevant data and information;

• Overseen during the financial year the adequacy of the internal control and administrative & accounting systems, as well as the latter’s reliability for proper representation of operating events, by obtaining information from the heads of the various functions – including the Corporate Financial Reporting Manager - and via periodical meetings with the independent auditor, who during the year informed us of the outcome of its quarterly checks of proper keeping of accounts;

• Noted, during periodical checks, the regularity of what had been properly allocated to cover technical reserves, as required by ISVAP circular 176/1992;

• Performed the controls required by the ISVAP concerning insurance books and registers, classification and measurement of the securities portfolio, anti-money laundering regulations, and use of financial derivatives.

As far as the Company’s separate and consolidated year-end financial statements are concerned, the Company prepared them using (as required by law) Italian GAAPs (separate financial statements) and IASs/IFRSs endorsed by the European Commission (consolidated financial statements). As regards these financial statements on today’s date the independent auditor issued its audit reports, without any reservations. Similarly, it expressed an opinion of conformity as regards the information contained in the Directors’ Report.

218

In addition, in accordance with CONSOB recommendations, the Board of Statutory Auditors herewith specifies that:

• Information provided by the Board of Directors, also specifically regarding subsidiaries and infragroup and related-party transactions, is believed to be adequate;

• No atypical or unusual transactions were executed either with infragroup companies or with related parties, and not even with third parties, as attested by directors in the Directors’ Report;

• Ordinary transactions with infragroup companies and related parties took place at market conditions, correspond to the company’s interest, and were executed in compliance with the specific procedure approved by the Board of Directors. They are described in the Directors’ Report with specification of their entity and their economic effects on the year’s result;

• Profit for the year reported in separate and consolidated financial accounts reflects the impact of the acquisition, effective 1 July 2009, of the company branch SACE BT S.p.A.;

• No particularly important events were reported after year-end;

• The internal control system is adequate, as emerged in the Internal Control Committee’s periodical meetings, at which the Board of Statutory Auditors was always represented, as well as in meetings with the chief internal auditor;

• During FY2009 there were 5 meetings of the Board of Directors and 8 meetings of the Board of Statutory Auditors. The Board of Statutory Auditors attended 4 meetings of the Internal Control Committee;

• The instructions given by the Company to subsidiaries pursuant to Article 114, paragraph 2, of Italian Legislative Decree 58/1998 are believed to be adequate;

• The company some time ago accepted the Italian Corporate Governance Code issued by the Italian committee for the corporate governance of listed companies and has transposed it in the terms indicated in its related report to the Shareholders’ Meeting, which also reports on the aforementioned Code.

During FY2009, the company appointed for legal auditing, BDO SpA received an assignment outside its specific legal audit mandate, at a cost of € 27,300 plus VAT, for assistance in the documentation of procedures following the introduction of SAP in the Vittoria Group’s real estate companies. No assignments were awarded to parties connected with the legal auditor. The above does not have any effects on the legal auditor’s independence of judgement. No official complaints pursuant to Article 2408 of the Italian Civil Code or any other type of exposé were received during FY2009. During the course of our supervisory activity, as described above, no facts emerged such as to require reporting to the relevant supervisory authorities or mention in this Report.

219

As regards allocation of the year’s earnings, we agree with the proposal of the Board of Directors, which, after having allocated the amount of € 1,214,478 to the legal reserve, allocates € 11,890,959 to the available reserve, while allocating the amount of 11,184,121 to the dividend to be distributed.

Milan, 01 April 2010

THE BOARD OF STATUTORY AUDITORS

Angelo Casò

Ferruccio Araldi Giovanni Maritano

220

Company's name Office held Expiry date

OSVALDO S.r.l. Chairman BoD Open-ended

TRE LAGHI S.p.A. Board member 31/12/10

BENETTON GROUP Chairman BoA 31/12/10 Issuing company

INDESIT COMPANY S.p.A. Chairman BoA 31/12/10 Issuing company

MEDIOBANCA S.p.A. Executive Committee's member 30/06/11 Issuing company

VITTORIA ASSICURAZIONI S.p.A. Chairman BoA 31/12/09 Issuing company

ALCHERA S.p.A. Chairman BoA 31/12/10

BRACCO S.p.A. Chairman BoA 31/12/10

BRACCO IMAGING S.p.A. Chairman BoA 31/12/10

FIDITALIA S.p.A. Chairman BoA 31/12/10

EDIZIONE S.r.l. Chairman BoA 31/12/10

RICERCA S.p.A. Chairman BoA 31/12/10

VESTAR CAPITAL PARTNERS ITALIA S.r.l. Chairman BoA 31/12/09

BARCLAYS PRIVATE EQUITY S.p.A. Effective Auditor 31/12/09

Number of offices held in issuing companies 4

Total number of offices held 10

10 March 2010

DOTT. ANGELO CASO'

List of the offices held at companies in attachment of the Report of Statutory Auditors pursuant to article 153 of the Legislative Decree 58/98

221


Vittoria Assicurazioni S.p.A. Effective Auditor 31/12/2009 Issuing company

Amati S.p.A. Chairman BoA 31/12/2010

Autolinee Giachino S.r.l. Chairman BoA 31/12/2010

Cave Sangone S.r.l. Chairman BoA 31/12/2010

Fornace in Laterizi Carena S.p.A. Chairman BoA 31/12/2010

Forum Mondadori Residenze S.r.l. Chairman BoA 31/12/2011

Gestimmobili S.r.l. Chairman BoA 31/12/2008

GEV S.p.A. Chairman BoA 31/12/2010

Guido Vincon & Figli S.p.A. Chairman BoA 31/12/2010

Immobiliare Bilancia Prima S.r.l. Chairman BoA 31/12/2011

Immobiliare Bilancia S.r.l. Chairman BoA 31/12/2010

Immobiliare Bilancia Seconda S.r.l. Chairman BoA 31/12/2009

Interimmobili S.r.l. Chairman BoA 31/12/2011

Kelemata S.p.A. Chairman BoA 31/12/2011

Kelemata S.r.l. Chairman BoA 31/12/2009

La Prealpina Divisione Commercio S.p.A. Chairman BoA 31/12/2010

La Prealpina Ron & Figli S.p.A. Chairman BoA 31/12/2009

Lauro 2000 S.r.l. Chairman BoA 31/12/2011

Lazzero Tecnologie S.r.l. Chairman BoA 31/12/2010

Massifond S.p.A. Chairman BoA 31/12/2009

Movicom Servizi S.p.A. Chairman BoA 31/12/2011

Mustad S.p.A. Chairman BoA 31/12/2010

Qsave Technology S.p.A. Chairman BoA 30/06/2011

S.IN.T. S.p.A. Chairman BoA 31/12/2011

DOTT. FERRUCCIO ARALDI


222

Vaimm Sviluppo S.r.l. Chairman BoA 31/12/2009

Vittoria Capital N.V. Chairman BoA 31/12/2009

Vittoria Immobiliare S.p.A. Chairman BoA 31/12/2010

Vittoria Properties S.r.l. Chairman BoA 31/12/2011

Yafa Holding B.V. Chairman BoA 31/12/2009

Yafa S.p.A. Chairman BoA 31/12/2009

CNA Servizi S.r.l. Effective Auditor 31/12/2009

De Tomaso S.p.A. Effective Auditor 31/12/2010

VP Sviluppo 2015 S.r.l. Effective Auditor 31/12/2011

VRG Domus S.r.l. Effective Auditor 31/12/2009

Zoppoli & Pulcher - Costruzioni Generali S.p.A. Effective Auditor 31/12/2010



10 March 2010

223


VITTORIA ASSICURAZIONI S.p.A. Effective Auditor 31/12/09 Issuing company

ACACIA 2000 S.r.l. Chairman BoA 31/12/10

CARCOUSTICS ITALIA S.p.A. Chairman BoA 31/12/11

CRISFER S.r.l. Chairman BoA 31/12/09

ABC FARMACEUTICI S.p.A. Chairman BoA 31/12/11

CADORNA REAL ESTATE S.r.l. Effective Auditor 31/12/09

FORUM MONDADORI RESIDENZE S.r.l. Effective Auditor 31/12/11

GESTIMMOBILI S.r.l. Effective Auditor 31/12/11

GUIDO VINCON & FIGLI S.p.A. Effective Auditor 31/12/10

IMMOBILIARE BILANCIA PRIMA S.r.l. Effective Auditor 31/12/11

IMMOBILIARE BILANCIA S.r.l. Effective Auditor 31/12/10

IMMOBILIARE BILANCIA SECONDA S.r.l. Effective Auditor 31/12/09

INTERIMMOBILI S.r.l. Effective Auditor 31/12/11

ISTITUTO BIOLOGICO CHEMIOTERAPICO S.r.l. Effective Auditor 31/12/11

KELEMATA S.r.l. Effective Auditor 31/12/09

LA PREALPINA DIVISIONE COMMERCIO S.p.A. Effective Auditor 31/12/10

LA PREALPINA RON & FIGLI S.p.A. Effective Auditor 31/12/09

LAURO 2000 S.r.l. Effective Auditor 31/12/11

MASSINFOND S.p.A. Effective Auditor 31/12/09

VAIMM SVILUPPO S.r.l. Effective Auditor 31/12/09

VITTORIA CAPITAL N.V. Effective Auditor 31/12/09

VITTORIA IMMOBILIARE S.p.A. Effective Auditor 31/12/10

VITTORIA PROPERTIES S.r.l. Effective Auditor 31/12/11

YAFA HOLDING B.V. Effective Auditor 31/12/09

YAFA S.p.A. Effective Auditor 31/12/09



10 marzo 2010

DOTT. GIOVANNI MARITANO


224

Report of Independent Auditors

225

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1922

6

4

2

1

1

0

-

0

-

3

19

306

3

3

2

4

0

-

0

0

3

19

4014

6

8

7

15

1

-

0

1

6

1950

424

16

5

25

9

176

30

1

14

61

3

8

62

19

601,

581

353

1,22

7

1,

685

2,06

1

10

4

-

63

22

2

258

19

704,

525

844

3,68

1

6,

800

5,81

4

31

9

-

25

42

5

258

19

7510

,092

1,69

3

8,39

9

12

,943

11

,186

63

2

1,04

6

1

1,09

9

25

8

1980

24,6

93

5,

436

19

,257

30

,174

22

,649

2,

140

271

71

8

2,97

9

1,

033

1985

57,1

75

10

,124

47,0

51

74,1

08

76,5

15

8,15

0

4,

912

3,11

9

6,

023

1,29

1

19

9011

2,68

9

11,0

74

10

1,61

6

168,

239

19

8,39

5

18,4

40

781

4,

704

43,6

91

15,4

94

1991

134,

123

16

,245

117,

877

20

5,81

4

233,

988

23

,271

4,

266

3,18

8

45

,490

15

,494

19

9215

4,44

7

19,1

40

13

5,30

7

244,

818

26

0,91

0

27,6

83

3,93

1

4,

168

45,7

31

15,4

94

1993

165,

536

25

,865

139,

671

28

2,54

4

305,

133

32

,111

3,

911

4,15

5

47

,126

15

,494

19

9417

8,88

9

23,9

68

15

4,92

1

329,

168

35

2,35

0

29,1

55

3,91

1

4,

147

48,6

38

15,4

94

1995

197,

690

17

,744

179,

946

39

2,94

6

393,

862

35

,550

3,

911

4,22

0

50

,146

15

,494

19

9622

1,58

4

20,1

85

20

1,39

9

467,

309

46

0,18

9

39,1

09

3,91

1

4,

264

51,5

95

15,4

94

1997

249,

580

20

,195

229,

385

55

3,20

1

550,

231

36

,523

3,

911

4,66

5

51

,965

15

,494

19

9828

9,03

3

54,8

49

23

4,18

4

614,

684

65

3,25

2

44,4

66

3,91

1

6,

322

54,0

12

15,4

94

1999

339,

363

67

,464

271,

899

70

0,65

3

762,

696

41

,342

3,

911

8,40

0

57

,562

15

,494

20

0039

1,48

5

79,6

38

31

1,84

7

818,

799

89

8,52

1

34,2

09

3,91

1

6,

835

63,0

38

15,4

94

2001

386,

400

77

,879

308,

521

88

4,84

9

978,

279

19

,300

3,

911

10,7

44

52,2

89

30,0

00

2002

407,

054

83

,605

323,

449

93

4,34

7

1,02

7,55

4

21

,975

3,

911

12,8

06

59,7

33

30,0

00

2003

457,

564

95

,129

362,

435

1,

005,

640

1,11

4,41

8

46

,385

3,

911

15,1

47

68,9

39

30,0

00

2004

519,

268

94

,965

424,

303

1,

115,

862

1,23

4,42

1

47

,511

3,

911

17,7

79

80,1

86

30,0

00

2005

551,

202

86

,514

464,

688

1,

198,

173

1,32

2,59

7

49

,000

3,

911

20,3

30

93,7

65

30,0

00

2006

587,

489

75

,717

511,

772

1,

305,

203

1,45

1,13

7

67

,146

3,

911

27,4

37

111,

310

30

,452

20

0763

6,52

6

50,2

81

58

6,24

5

1,44

3,57

9

1,

557,

261

66,3

41

3,91

1

36

,495

14

2,29

0

32,6

66

2008

630,

718

32

,798

597,

920

1,

444,

379

1,56

1,80

5

43

,317

-

37

,939

15

5,97

2

65,7

66

2009

671,

307

32

,656

638,

651

1,

545,

324

1,64

6,76

5

69

,137

-

24

,290

18

7,81

4

65,7

89

Com

pany

's d

evel

opm

ent f

rom

inco

rpor

atio

n

231

88th year of business 2009 Annual Report & Accounts Relations/PDF... · PARENT COMPANY OF VITTORIA...

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