At a meeting today chaired by Giuseppe Vita, the RAS Board of Directors examined preliminary figures for financial year 2005. Consolidated gross premiums for the year amounted to 16,392 million euros, an improvement of 1.7 percent over 16,124 million in 2004.

Property & Casualty premiums reached 7,463 million euros, rising 2.4 percent from 7,290 million in 2004. Life premiums, which include investment contracts, were 8,929 million euros, against 8,834 of the previous year (+1.1 percent). Life New Business in Italy made progress in 2005, with agents and financial advisors writing premiums for a total of 1,103 million euros, up by 30.7 percent on 844 million euros in 2004.

The year saw a surge in performance by RasBank, mainly in the last part of the year, with net inflows gaining 27.1 percent to 1,195 million euros, compared with 940 million euros for the year to December 31, 2004.

"We closed 2005 on line with our targets," said RAS CEO Paolo Vagnone. "All our lines of business achieved growth, supported by the strong performance of the agents and financial advisors networks. With these positive inflows we expect to report a significant improvement in profitability compared with 2004."

P&C premiums written in Italy amounted to 4,039 million euros in 2005, an improvement of 2.3 percent from 3,948 million in 2004. Further progress was made in the Non-Motor lines, where premiums totalled 1,551 million euros (+5.4 percent on 1,472 million in 2004). Careful risk selection in the underwriting process was a key feature of performance in the Motor line, which was steady at 2,470 million euros (+0.9 percent, 2,448 million in 2004).

Genialloyd, the Group's direct sales company, posted another excellent set of figures in 2005, closing the year with a strong increase in net profit, which was 17.3 million euros compared with 12 million in 2004. Premiums for the year rose 7.3 percent, to 218 million euros (203 million in 2004).

All the non-domestic subsidiaries made progress: gross premiums written in the year amounted to 3,425 million euros, with a gain of 2.5 percent over 3,342 million in 2004.

Premiums written in Italy in the fourth quarter were 1,324 million euros, compared with 1,313 million euros in the year-earlier period (+0.8 percent). The Motor business totaled premiums of 707 million euros, down by 0.9 percent from the last three months of 2004. Growth of the Non-Motor lines, which wrote premiums of 612 million euros (+4.1 percent from 588 million euros in the 2004 fourth quarter). All the non-domestic subsidiaries consolidated premiums in the fourth quarter totaled 528 million euros down to 0.9 percent compared to 533 million in the 2004 fourth quarter.

Premiums in Italy for the year amounted to 7,209 million euros (+3.2 percent), from 6,984 million euros in 2004. Life New Business in Italy amounted overall to 5,367 million euros, up from 5,213 million euros in 2004 (+2.9 percent).

The agents and financial advisors networks reported strong growth in Life New Business, with premiums at the end of 2005 standing at 1,103 million euros, an improvement of 30.7 percent over 844 million euros in 2004. New business in the bancassurance channel dropped 2.4 percent to 4,263 million euros (4,368 million euros in 2004). Premiums were steady at CreditRas, which closed 2005 at 4,112 million euros, from 4,102 million in 2004 (+0.2 percent).

The overall premium mix reflected important progress in recurring premiums, which climbed from 286 million euros in 2004 to 342 million in 2005 (+19.4 percent).

Life premium income from non-domestic subsidiaries (Austria, Spain, Switzerland, Portugal) totalled 1,720 million euros (-7.0 percent from 1,850 million euros in 2004).

In the fourth quarter 2005, premium income totaled 1,903 million euros compared to 2,246 million in the same period 2004, down 15.3 percent. Non domestic subsidiaries in the fourth quarter totaled 385 million euros dropped 7.1 percent compared to the same period 2004. Agents and financial advisors made excellent progress in Life New Business, closing the fourth quarter with premiums of 350 million euros, up from 239 million in the year-earlier period (+46.5 percent).

Assets administered at December 31, 2005 amounted to 22,995 million euros, up by 11.0 percent from 20,715 million euros at the end of 2004. More specifically, assets under management gained 12.7 percent to 15,193 million euros (13,480 million at December 31, 2004).

Total net inflows amounted to 1,195 million euros, with an improvement of 27.1 percent from 940 million euros in 2004. Asset management inflows increased sharply in 2005 to 523 million euros, a rise of 175.3 percent from 190 million euros in 2004. Life New Business by RasBank financial advisors made significant progress to reach 434 million euros, compared with 362 million euros in 2004 (+19.5 percent).

At December 31, 2005 RasBank had 2,696 financial advisors, compared with 2,928 at the end of 2004 with a reduction concentrated on the financial advisors with a marginal asset under administration .

The fourth quarter of 2005 saw strong growth of net inflows which reached 455 million euros (230 million in the year-earlier last quarter).

Translation from the Italian original which remains the definitive version.

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