Fondiaria-SAI - Board of Directors 1Q04 Results

The Board of Directors of FONDIARIA-SAI met today under the chairmanship of Jonella Ligresti and approved the First Quarter Consolidated results as at 31 March 2004, which show an ordinary result of more than 214.2 million Euro (87 million Euro for the corresponding 2003 figures).

Gross written premiums reached 1,759.1 million Euro in non-life business (+2.1%), thus confirming the leadership achieved in the Italian insurance sector, and 840.3 million Euro in life (+57%), thanks both to the contribution from the Agency network and to the positive trend in bancassurance business.
With regard to the technical situation, non-life profits reached 94.8 million Euro (57.5 million Euro in 1Q03), while the life result exceeded 28 million Euro (12.9 million euro in 1Q03).

Net technical reserves totalled 24,354 million Euro and showed an increase of 2.8% compared to FY2003 figures. The total amount of the claims paid in the direct business, gross of reinsurance and including life business, was 1,521 million Euro.

Investments reached 25,867 million Euro (+6.1% with respect to FY2003 figures). Net investment income reached 260 million Euro (172.5 million Euro as at 31 Dec. 2003) and included 100 million Euro of realized gains on non-strategic assets.

As far as the Parent Company is concerned, direct written premiums reached 970 million Euro (+1%) in non-life business and 284 million Euro in life (+40%).
With regard to reported claims, Motor TPL showed a decrease in comparison to the 1Q03 figures (-4.9%).

Operating costs reached approximately 363 million Euro, and represent 14.7% of written premiums (15.2% as at 31 Dec. 2003).

The positive trend shown in the results of the Fondiaria-SAI Group companies is in line with both underwriting and profitability targets.

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