Ladies and gentlemen, good morning, and thank you very much for being here with us for the presentation of our Business Plan 2026-2028. I'd like to thank our friends and the investors and the members of the financial community who are connected remotely. I'd like to start this presentation today by making a number of considerations and making an overview of what we've done over the past three years. That is, the achievement of our 2022-2025 Business Plan and what we have used as drivers to achieve the targets of the Business Plan. Some of them were achieved a year in advance and with a mid- to long-term view, which characterizes our company and the spirit of those who launched these initiatives a few years ago. Now, over and above the capital investors, which is sacred for us and always has to be remunerated.
Now, we have used three types of capital as drivers. First, the human capital, which is perhaps the most important one because it enables other decisions and other possibilities. The human capital has been selected over the years. It is a human capital of excellence, capability, and skills, and it is the main pillar of our company. As very often I say, the human capital you do not see in the financial statements of an insurance company because it is a cost item, but for us it is an absolutely valuable asset that we need to protect and make grow. Human capital is so important that it has been able to build distribution relations by increasing the relations with our brokers and has managed to develop a proprietary technological platform using data that supports our business and which is useful for our business.
The most important question that we can ask at the beginning of my introduction is the following: what were the contexts in which this human capital driver was used? Well, it comes from our view of the world, what we mean when it comes to the management team and the founders of this company. We tried to make sure that individuals could prosper and grow. We helped people to take decisions and develop an entrepreneurial spirit. And also, we adopted a positive error culture. Those who make mistakes in our company are not punished if they do this in good faith. And we tried to favor our decision-making process and individual freedoms. Within our company, responsibility is of an individual nature. It does not lie within the committees, and this makes us different from other companies. Decisions and responsibilities are of individual nature.
Here we need to focus on, and it is confirmed also by the survey analysis that we have now, where teamwork, innovation, and work environment are very important values that are shared by the people that work with us. 94% of the employees took part in this survey. The human capital explained the success of the previous Business Plan, and it is a precondition to make sure that the next Business Plan is successful. We have an average age of our employees with a difference of 14 years versus the average market, which is a lot. It means that our people are more prone to test innovation, and we need to work, however, on training, which is a cross theme within our plan.
We need to make sure that people grow intelligently, and we need to help people by also using artificial intelligence, which is going to be the common thread of this presentation, but not only of this, but also for the next three, four years. It is important to say what we have become ever since 2021 when we acquired Elba. We have a company devoted to SMEs and professionals in Italy and now in Spain, a company that has had a very strong discipline in avoiding some investments, and a company that has grown organically, has avoided dangerous non-organic growths, and a company that has made discipline in capital allocation a very important pillar. Capital allocation discipline will be related also to artificial intelligence to be used to support our business. Now, such a growth has then materialized in five different domains. First of all, new infrastructure and cultural legacy.
We are quite free people in what we do, and I believe that Fabio, our Chief Operating Officer, is the only person in the world of insurance that hasn't done any migration ever since he came to REVO. He worked on a white sheet of paper and worked with colleagues, and this gave us a possibility to go towards the targets we set for ourselves. The platform is a proprietary one, and the platform enables the business. It's not nice to have, but it is essential to do our work well, and it will be even more important going forward. It is going to be important because we want to provide an excellent service to intermediaries. Our main goal is not to disintermediate intermediaries, but make sure that intermediaries become a major player in our field.
We must make sure that intermediaries become closer to the customers and bring within REVO the work that they should not do. Distribution is fundamental. Brokers and agents have always pointed to the quality of our relations, and we need to continue to invest to remain efficient. We also have become a one-stop shop. That is, we are not a single-line company. We want to offer a number of insurance solutions to our intermediaries and customers. You should see that we are going to strengthen our team. We are going to add other business lines so as to be able to serve 360 degrees enterprises in Italy and Spain, which are the pillar of the economy in Italy and in Spain. Within this context, we have also built new insurance solutions like parametric products.
We have a dedicated team in Italy devoted to pricing, to construction, and distribution of these products, which are going to be the novelty and the future of the insurance business because of the simplicity and the lack of opacity, but we are no longer in a period of change, but we are in a change epoch, a paradigm change. Our conditions are becoming faster, and we have the feeling to always somehow lag behind, and this feeling we are lagging behind can be solved by using artificial intelligence. It will disrupt the way we work, but we need to govern this process, and the cultural changes I mentioned will allow us to govern and not to be governed by artificial intelligence, and this is the real cultural and philosophical challenge of this Business Plan.
We know how to deal with the risks of artificial intelligence because we believe that we have a corporate culture which is different from that of other companies that perhaps are a bit more legacy than us. They have a slower general process. So our flexibility, our speed, our agility is fundamental so as to be able to put in place virtuous processes and use artificial intelligence within our production processes. Now, we have the beginning of the dawn of the tech-human era. This perhaps is the most important statement of my presentation. What is this tech-human era? We need to build a collective intelligence that puts together man and machine, machine and man. And this collective intelligence will lead us to say that collective intelligence is superior to that of individual human beings and individual machines.
This collective intelligence is based on the fact that you need to identify very well the tasks to be assigned to human beings and those to be assigned to machines. Machines are much more capable than us in extracting data and putting together information. Human beings are to be entrusted with the activity of risk assessment, assessment of the context, and the management team perhaps needs to change from this point of view because in the future, the organizational structure will change by definition because artificial intelligence will give us a new way of working. Three are the elements of the new tech-human era which are to be underlined, in my opinion. First of all, the widespread availability of information. Information is no longer in the hands of individual people.
They are widespread, decentralized, and we need to have machines capable of collecting information, process them, clean them, and make them available for production processes, and here we've made a big stride forward. We are perhaps unique on the market here. Secondly, whereas in the past we used to say that structures followed strategies, perhaps today we can say that strategy follows technologies, which are the new professional roles, professional figures, the new organizational archetypes. How can we manage the company going forward with this controlled invasion of technology? This is a big cultural challenge that we need to take up all together, and then third, which is very dear to me, is the cooperative model of working together, which is superior to the competitive model. Nobody has all of the truths. Nobody has all of the information. Things have become more complex, and we need to work together.
This is something which is already present within REVO, considering the results that we have achieved and considering the way we built this Business Plan, which has been built bottom-up thanks to the work of many colleagues and thanks to the virtuous cooperation among them. Everything can be improved. Nothing is perfect, but cooperation and teamwork is going to become increasingly important to achieve our ambitious goals. Now, the first thing of the tech-human era is to understand the difference between people and machines and not to think about machines as a replacement of men, but as complementary to human beings. Here you see the breakdown of tasks between people and machines. We have worked so much so as to create for each key role that is those that increase in size as the business size growth.
We have a digital partner which does not replace the Chief Underwriting Officer, and so we have the possibility of using what we call a Digital Twin to support the decision. Now, using a Digital Twin to support decisions will make our activities simpler, more effective. We'll be able to manage a great number of businesses versus what we can do with a single structure and in a more intelligent manner. Placing the people at the heart of strategic decisions will remain also in the next three years. We want the decision-making process to be governed by men with the help of the machines and not vice versa. This is not negotiable and sets us apart versus other companies. Using technology, in our case, does not mean decreasing or lay off personnel.
On the contrary, we are going to grow people within our company because we have no legacy culture, as I said before. We built all of these with the idea of sustainability. We are a company that lives within a community, not in a vacuum. Perhaps for you, this might appear to be an Olivetti-like message. It is true. We want to give value to people that work with us and who are around us. We want to be at the service of intermediaries, and we want to become something distinctive because we already have become distinctive, and so the digital leadership that you see cuts across all the functions and all the pillars. It's not the goal. It's not the end, but it's a means to reach an end, which is sustainability. Sustainability, when it comes to the business work, becomes or is different things.
It is an integrated distribution model where brokers are brought on our platform, operating in a digital manner, more speedily with analysis and training that is going to be issued and granted digitally thanks to technology. It is very important that our friends, these intermediaries, do business with us. The operating model will change considerably, underwriting, claims, and back office. The underwriting, we are going to use tailor-made operations requiring a lot of information, all of the information possible, and we are going to grow the business rate, which is going to be done automatically. This will decrease risks. We'll make the company more performing to the stakeholders. And then when it comes to the claims colleagues, opening claims, opening reserves, analysis, everything will be made a bit more automatic, letting people develop relations with people both within and outside the company.
We would not be able to do this if we did not make investments, strong investments in technology. It would be fatal, and this integrated distribution model and this integrated operating model become product innovation. Our networks will have the possibility to configure the products, and we will increase the possibility of having underwriting algorithms used. Part of the process is made automatic but controlled by our people. Now, this world which is opening up in front of us thanks to artificial intelligence, but artificial intelligence is used in a controlled manner within the company with projects which mostly are successful. Sometimes they might fail, but this is not something frightening. We do not have a culture of punishing mistakes. We need to test things, and all of this work will lead to achieving the targets you see on the right.
Within 2028, premiums are above EUR 550 million, and they will see the direction of growth. We'll see the direction. The combined ratio will have to remain below 85%, and after doing simulations, we know that we will be able to do this. Loss ratio will remain stable. Costs will go down, and then we are going to grow the EPS quite significantly, thus providing satisfaction to the investors, stakeholders, and shareholders who continue to trust us. Before giving the floor to my colleagues, let me summarize. What we are proposing today is a cultural model where artificial intelligence does not remove work from human beings, but is an integration of the work of human beings so as to be able to achieve higher added value decisions and products. Now, Simone will explain what we want to do.
We are going to work on a number of sides of our business. Fabio will tell you how we are going to do it, the technology path that we are going to follow, and then Jacopo will tell you about the investments, the growth of premiums of the operating result, and the targets that we set for ourselves in greater details. At the end, you'll have to listen to me again for two or three minutes, and in the conclusion, I'll go through the data that you've heard so as to be able to understand what is this new model making business, which doesn't weaken the presence of human beings. On the contrary, it strengthens. This is our hope, and at this point, I'd like to thank you very much for kindly listening to me, and I'll leave the floor to Simone Lazzaro.
[Foreign language] Thank you very much, Alberto. Thank you. Good morning. My task today is navigating you through the core business at REVO, namely underwriting and distribution. I'll touch upon a number of key points. I'll talk about technical and service excellence, risk evaluation, all of it framed in the target market, so I'll be referring to the target market that REVO entered four years ago, but above all, I'll explain how we plan to strengthen our distribution and how to change and strengthen our underwriting according to our strategy, but let's start from the two key drivers at REVO, namely technical and service excellence. These are two key drivers that supplement each other. Service excellence leads to more freedom, more room for maneuver for our brokers who can then develop their business, but it also leads to better risk selection at REVO.
You see that our quotation ratio, that is the number of quotations that we have analyzed, has increased from 71% to 84%. The first response is excellence. It's down to less than one day for sureties as for the other business lines. We are getting close to this target, namely 24 hours, and the technical results are best in class in the European market. The loss ratio is roughly 40% for all business lines, and the combined ratio, as Alberto already pointed out, stands at 85%. These two factors, these two drivers, what did they have generated over the past few years? Simply growth. We have grown from EUR 77 million gross written premium in 2021 to EUR 324 million with a CAGR of 66.0%. Q1 2025 follows suit. In Q1 2025, we have reached EUR 102 million gross written premiums versus EUR 73 million same first quarter of 2024. How did we manage?
Thanks to our brokers, thanks to those who work with us and for us, because our brokers do not confine themselves to distributing our products. They know our strategy. They know how to execute it, and therefore they can grow together with REVO. Now, as promised, let's have a look at the target market for REVO in Italy. The target market is worth EUR 10 billion. It's the so-called specialty market, the green bar. Easy to make the math. REVO accounts for EUR 300 million, so we account for roughly 3% of the market. The market is growing 6% and has grown 6% over the past four years. There's room for growth, for further growth. We are leaders in the surety in Italy with 13% with financial lines. We have reached 5% in a couple of years, 3% in the agro industry, 2% in engineering industry.
This means there's a lot of room for maneuver, a lot of room to grow. How are we going to grow? We'll be growing the most profitable business lines characterized by the lowest volatility. These are liabilities, legal coverage, credit. So we'll be investing on the business lines that, in our opinion, are the most profitable and suits most our strategy. As Alberto already pointed out, our goal is that reaching our EUR 550 million target to be even exceeded by 2028, following five targets, namely diversifying our target portfolio. As I already pointed out, we have identified some specialty focus lines that you see listed on the right, bonds, for instance. We want to remain the undisputed leaders in the bonds industry and the surety market, and we want to grow profitably in the Spanish market as well. Then engineering, financial lines, legal protection.
These are all key elements and key drivers of our growth going forward. And then we want to expand our presence in Spain that will account for 10% roughly of our total revenues by 2028. We'll be supplementing our offering with modular solutions for Italian SMEs, starting with commercial credit. And this is a novelty. We'll be providing commercial credit solutions to Italian SMEs. As Alberto pointed out, considering the market we are operating on, the companies do need credit, and we'll be providing it to them. And then we want to leverage on our rating. We have an excellent S&P A- rating that we'll be leveraging to extend our target market again in finance and other such market niches. So thanks to our rating, we'll be able to grow profitably. And last but not least, we confirm our plan to grow in the field of parametric products.
But I mean, insurance, all in all, boils down to distribution, distributing, selling. So we want to review our distribution model. We are not simply thinking of extending the number of brokers. We want to connect all the dots, namely brokers, agents, technology, and platform. If we connect all the dots in distribution, we'll be able to grow and we'll be able to have our brokers grow with us. And we started from a very good starting point already. We already have 118 agents, 80% of which are specialized in our core business, namely sureties. We have 81 brokers in Italy and 34 in Spain. We have a 283 relationship with the REVO Underwriting. What is REVO Underwriting? It is our underwriting agency wholly owned by REVO. So as you can see, REVO has no distribution legacy. Our agents distribute 80%.
I mean, 80% of them only distribute sureties, which enables us to expand our distribution network and extend our solutions to other distribution channels and all the partners that follow our strategy and want to be connected with our platform, and this can be done thanks to the ease of integration of our platform. Fabio will be talking about it in a minute. It is a very simple-to-use platform that makes it possible to reduce the time to market almost to zero. Then we have other opportunities that we haven't explored so far, namely banks, digital channels, and industry partnerships. We believe that our technical and technological competencies and ability make us an attractive player that can definitely leverage on such distribution channels. As I said, we don't want to grow thanks to the distribution network, but with the distribution network.
Hence, we'll be changing our approach to our two traditional channels, brokers and agents. As far as brokers are concerned, on top of the already very high service level, we'll be adding Facility in a Box. What are Facility in a Box? These are tools that will provide the brokers with to enable them to reach their clients more effectively. These are digital tools, and Fabio will illustrate how they work. But these are simply solutions that are increasingly popular on the European market, are entering Italy, and REVO wants to be a front runner also as far as facilities are concerned. As for agents, on top of the A-to-A mandates, we'll be adding the direct mandates with REVO Underwriting. This is an easy way to work together, generating scale economies for REVO as well.
Thanks to these direct mandates, we would like to reach 750 intermediary REVO Underwriting relations that will generate in excess of EUR 45 million by 2028. Then as for ESG, there is a novelty. We are rewriting the code of governance of our brokers and intermediaries. We'll be working on it in 2026 and we'll be publishing it for all our partners. But in changing our distribution network, we'll be launching two new projects that have been called Pull and Push. What is the Pull project? It's the automatic onboarding. Think of a broker or an agent who would like to work with a company. So from that point to the time he or she manages to be on board the platform and issue the first policies, it normally takes a number of weeks, and all the process is paper-based.
We have cut the timescale from 10 days to one day. This is something that we have already implemented. So this is a paradigm shift, which, however, is not confined only to the onboarding phase of our brokers and agents, but also fosters the growth of our brokers and agents. And this is the so-called Push project that is a real-time lead and associated product generation system that will be used by our brokers, those who actually share our strategy. Think of a professional, for instance, who is registered at a register or who applies for a call for bid that requires a bank guarantee or a surety. So now, thanks to access to data, we can retrieve this information, transform such information into leads, and give such leads to the brokers who work with us.
This is a project we have been working on, and we'll go live in the first half of 2027, but we are already working hard on this strategic project, so to summarize, what are the distinctive factors of REVO distribution in the new business plan? First of all, digital onboarding that I've just explained, but above all, a simpler offer. We plan to offer plug-and-play products, so our products are changing, are becoming increasingly modular and flexible with automated pricing and also parametric warranties included. So we are now approaching our product offering, so a product at REVO is not a constraint. It's a solution that must be simple for our customers and flexible for our brokers and intermediaries, so on the left, you see the current product range at REVO, so we have STP solutions where the broker is autonomous up to the issuance of the policy.
Then we have facilities already available for our brokers, but also for those agents who are willing to offer this kind of product to their clients. And then we have parametric and tailor-made solutions. What about tomorrow? Well, tomorrow, this straight-through product will be enriched with another product that is called REVO for Business. And I'll go back to it in a minute. Then we'll be adding the Facility in a Box, and Fabio, who is the master commander of technology, will illustrate what Facility in a Box is. And then two parametric products will be added, the embedded parametric, that is to say, embedded parametric warranties. And then tailor-made, well, we'll be changing this altogether. We are moving towards Algorithmic Underwriting, automated, fully automated solutions enriched with data. And this will be done in a sustainable manner.
We would like that at least 75% of our clients who buy a property policy, so a policy for their business, contain a guarantee covering natural catastrophes. So of course, this is also a law requirement, but this is definitely a sustainability target we set ourselves. And here we come to REVO for Businesses that will be launched by the end of the year for SMEs with revenues up to EUR 2 million. And then we'll be extending this to SMEs with a turnover of up to EUR 10 million. And then we'll be extending the product to Spain. So our goal is that of increasing our penetration in the world of SMEs, both in Italy and Spain. As already pointed out, this product meets an additional insurance requirement of Italian SMEs that now are obliged to have a cover for natural catastrophes.
And here we come to parametric warranties that are a lever for growth in our strategy. We have reviewed our parametric strategy following two main directions. First of all, vertical partnerships in the field of mobility, energy, and travel. Some of these strategic partnerships have already been set up. Spiagge.it, for instance, has enabled us to more than double the number of parametric policies we've sold in two years. In two years, we have reached more than 50,000 clients, which means that 50,000 clients in Italy have REVO parametric solution. Other strategic partnerships are being defined and will be ready shortly. However, parametric will become a key element of our specialty products. Parametric warranties for NATCAT, for cyber attacks, and so on and so forth will be part and parcel of our specialty products. And this is thanks to technology.
In our opinion, in our view, parametric is something simple, transparent, intuitive, easy to use, and therefore it perfectly fits with our strategy, REVO strategy that is data-driven, so I've accompanied you along this very short journey, 15-minute journey. In the final part of this journey, I'll try and illustrate the most radical change that we are planning, so the underwriting at REVO is changing altogether thanks to technology. While our competitors still rely on manual underwriting with a simplified pricing mechanism and their evaluations rely on the skills and knowledge and the expertise of human beings, REVO is changing altogether, moving towards the so-called algorithmic underwriting. What is it all about, well, the traditional underwriting is a sequential process and a manual process, whereas the algorithmic underwriting is fully digital and is a data-driven process.
So in other words, when we receive a quotation, we have access to structured and unstructured data, and we use such data to evaluate risk. Our underwriting ability and our risk appetite are transformed into an algorithm following our underwriting policy. So all the rules are in the algorithm. The algorithm put forward terms and conditions of product and pricing, which releases or frees up the time of the underwriter. And the underwriter will have more time to follow strategic clients, the most important accounts, and monitor the profitability of the portfolio. But the time that is freed up by technology will enable the underwriter to work on added value activities, that is to say, dialogue and speak with brokers and be more effective and efficient in working with them.
Thanks to the technology, thanks to the predictive ability of technology, REVO is going to adopt this algorithmic underwriting process. Now just a few facts and figures. We plan to achieve above 90% quotation ratio by 2028 with response time below 24 hours. The average production of the underwriter will increase by 25% thanks to the support of technology, and the straight-through processing will increase from 47% to 70% of the portfolio by 2028. Underwriting, distribution, products, and technology are the four drivers of the growth within our business plan, and these are the levers we'll be acting upon because together they account for the REVO strategy. How will this be done? This will be done thanks to technology. Now, Fabio, the floor to you.
[Foreign language] Ladies and gentlemen, good morning.
Also on my behalf, thank you, Simone. Alberto kicked the action. Simone told you what we want to do. I will try to explain to you how I will be taking some 20 minutes. I will tell you where we start from, and then I'll speak about the operating model, and I will be speaking of the AI partner, which is a paradigm change. I will show this by showing you the improvement of performance. You will appreciate it, really. Then we'll touch upon the other changes that we want to adopt thanks to the use of technology within our business model. Where do we start from? Now, I think we've done very good work.
We developed over the past three years a proprietary platform with our own intellectual property, and we devoted a lot of attention to make sure that the competencies were to be found inside the company. The platform is called OverX, and we have decided that whatever was related to what to do, how to do technology architecture was to be in-house. And then we selected a number of flexible strategic partners, and with them we have developed the code which has evolved in partial internalization. We have the total control now of this proprietary technology. It was developed by following a number of guidelines, scalable, and then we've used microservices. It's a software paradigm that allows for flexibility. I'll use this term again because we have module product, module contract, product contract, product product. There are other terms that we are going to use.
The way with which services speak together is due to integration. A lot of focus on data. Alberto said before, data are no longer belong to those who produce the data. The data are of everyone, and we need to be able to use data. Ever since the beginning, we have used artificial intelligence and machine learning. Ever since 2022, we have used the generative artificial intelligence for the automatic reading of documents. All of this allows us to have a scalable platform also at the European level, as we are showing in Spain with limited investments. It can be used also in other countries with freedom of service. Now, let's add the turbo that is the artificial intelligence.
REVO, thanks to all of this, is capable to deal with all of the aspects of the insurance business, underwriting, back office, and claims and the offering. Now, the distribution model was explained by Simone. Let me show you the operating model. Now, the frontier, the use of artificial intelligence allows you to rethink how an insurance company can work today. We have put together this concept and created a digital twin of the organization, which we call VERO. Now, this digital twin, you'll find the AI partners. These are virtual assistants. These are roles that are the counterparty of the physical partner. So you have an AI partner for the underwriter, for the claims handlers, and you have an AI partner for back office work or for operations control and finance. Now, what are these AI partners? What is their role?
It is of increasing the performance and the work capability of the physical counterpart with two very important consequences. First, productivity, but then you focus the attention on where the difference can be made. Hence, an increase of effectiveness, and these two aspects are very important. Let us see how an AI partner works. I think you're all curious. Now, here you have two representations, the functional part and a number of technical concepts. Let's imagine a physical counterparty which makes a request to the AI partner. The first element is the orchestrator that has to open the request in simple tasks using programming, a large language model, and a workflow. But what we're interested in is to understand what these tasks are.
They can be data search data, and this is a data platform of REVO, which is fundamental, which provides access to data to everyone, updated and of good quality. Or you might have activity-related tasks. In this case, the system accesses to a task repository. This can be programmed machine learning models or LLM models which have been configured to carry out a task. And then from an architectural point of view, a number of guidelines. Scalability. Now, scalability or vertical scalability is guaranteed by the orchestrator. I can have increasingly complex requests, and I can satisfy them provided the orchestrator can break them down in simple fundamental tasks. And then API. What does that give me?
If tomorrow certain tasks which I have developed in-house or if the tasks are not developed but are available on the market as plug-and-play tasks, I can put them onto the platform with a benefit of speed. And then AI partners are all on a horizontal infrastructure that they share. There are requests that go beyond the single unit. And so AI partners need to speak between them. So this is how it works. What does it do? I told you already, but I'd like to say it again. The AI partner carries out a number of activities, but we are developing others. I'm going to show you VERO Illuminate, which is the AI partner of the underwriter, and then Liquidate, the AI partner for claim settlers, and Operate, the AI partner for back office. They do a number of transversal activities.
They are capable to do data search and information on the web, extracting information from attachments, requests, and communications with intermediaries, read email, write emails, general purpose activities. But then we have specialistic or specialist tasks. For instance, Illuminate is specialized in supporting the underwriter work and therefore assessing the information collected, and the goal is to risk or make a risk scoring calculation. Thereafter, on the basis of the score, it tries to identify the risks which are not in line with the appetite of the company. The first rule is that of saying no immediately. But then if you can go on the integration with the platform to have a generation under human control of a proposal or the issuing of a policy. What does Liquidate do? The AI partner of the claims handler.
Of course, here the main tasks are related to claims coverage assessment and then the capability to allot or assign claims to experts. Then the capability to assess the expert report and then suggest the claims handler additional steps. VERO Operate is the AI partner for back-office operators. First of all, it assists in the preparation of the information sections for bond practice, which is typical of the insurance world. And then it also makes certain tasks automatic. For instance, the entry of policies or the management of risks related to bonds or certain accounting activities. This is what is being done by the AI partner. But then is it clear? The most elegant way to show if it is clear is to show you. Now, let me show you how the underwriter works with VERO Illuminate.
You will see the normal interface of the underwriter and how Illuminate starts getting into action. As I said, we start this dashboard with indicators, and below you see a number of emails. Below you have the contents and the mails related to the quotation of a risk. You have the name of the customer, the conditions requested, the deadlines, the coverage, and so on. This is the content of the mail. There's no need to read the mail. If you activate Illuminate, Illuminate starts working and extracts from the mail or from the attachments all of the information relating to this: the policyholder, the intermediary, the economic data, the deadlines, or the starting date. When the data have been extracted, then the risk assessment is made with automatic questions.
Tasks have been made automatic to provide answers automatically to the type of risks which have been identified, and Illuminate provides the underwriter a summary of the responses, and here you can see there is data missing: the revenues of 2024. Illuminate will then send a mail to the intermediary to get that data which is necessary for the risk scoring. At that point, you have everything available, and you can do the risk scoring. If the result is yes, we can offer a strong product. Illuminate will go into the OverX page and will start filling out the data for the issuing of the policy, the data of the policyholder, and then the configuration of the product suitable to that risk, the guarantee and the technical variabilities, and then the determination of a premium if it is a structured product.
Here, the underwriter looks at the proposal, assesses the proposal, and if he or she needs to change it, he or she can change it or consent directly to the underwriter. This is a different way of working versus what was done in the past. It is revolutionary. Let's now see Liquidate , which is the AI partner for claims settler. Now, the colleague has a dashboard where you already have the tasks. Emails have already been pre-processed. Now, below a task, the claims settler can always see the mail under the attachments, but does not need to read it. When Liquidate starts working, it starts processing all of the data and realizes there is data missing at the place and therefore communicates to the intermediary that the place of the claim is missing. Otherwise, the system cannot continue. At that point, this is done. What has to be assessed?
There is a cover for that claim, and the claims settler can always see the origin of data. This is very important because it can allow because it avoids making mistakes. Then the task is assigned. Liquidate identifies the best expert and sends it to the person. Now, this is a different way of working, and when the claims assessment, overall claims assessment, arrives, the person will see that everything is okay. There is correspondence between the claim and what the expert has identified. If everything is okay, then it can go on. Let's see the same example for VERO Operate, the AI partner for a back office operator. Here we have a surety. [Foreign language]. T he issuing of a credit line. Sorry. Now, in this case, the back office operator starts, then launches Operate.
It extracts all of the data of the customer, and then it also works with the database, extracts financial data, makes an economic data analysis, and writes a summary. And the issuing operator always has visibility of what the AI partner is doing. And the conclusion is that there is a proposal of the amount of the lending and the conditions. For instance, a yearly deadline. Here, the paradigm is changing again. At the center, we have the human being, the person, but the person is augmented, so to speak, thanks to the capabilities of artificial intelligence. This is what we now have in production today. I'm not showing you things that we do not have. Let me now see what we're going to put into production tomorrow, the type of interaction that we kind of envisage between the partner AI and the human being in 2026.
Now, this is Liquidate who speaks with the operator, with the claims settler, and provides the claims settler a report of activities that are to be carried out after a given period or a day. Now, good morning, John. During your absence, we have received 22 information, 20 mails, and 2 vocal messages. 6 of these were communications of new claims. I have already opened the claims in the system, and I have already assigned an expert. 10 were reports of claims already existing. I have examined all of the reports, approved them, and prepared the settlement notes which are ready to be signed. I have then updated the intermediaries. 2 were advancement on existing claims. I have updated the state of the claims. I couldn't validate the last 4 notifications, and I'd like to discuss this with you. So, a totally different way of working.
As you see, this is not science fiction. It is already existing. We are working on the distribution model. We already have functions, and we are working a lot on the push part, the possibility to retrieve data that are useful to meet an insurance need. We are upgrading and updating the potentialities of Illuminate, of Operate, of Liquidate. We are working on greater automation of Operate, and for all, we are implementing the Superchat communication type that changes the communication way of working. You no longer need to use the mouse and the PC. We need to have a cooperation between human beings and machines, which brings to something different. All of this leads to performance which could not be reached with a traditional model. We start today with very good numbers.
We want to increase the productivity of underwriting by around 60% with tailor-made time to issue of 70 minutes. Now, we want to increase the number of policies managed by per single operator by 42%. And then we want to increase the number of automatically managed tasks within the claims world by 6 times. Now, in order for change of this kind to be fully grasped, you need to have the right culture, a culture which is open, a culture which is ready to learn when mistakes are made. And we have this culture within REVO. And then we need to be also a company which is growing. When you grow by 60%, by 42%, or by 6 times, you need to have a lot of business. Otherwise, growth can be a problem. Growth, on the contrary, for us, is an opportunity.
Operators on the insurance market have these capabilities that can really change the way of working. And we see this not only in the insurance world. We see it in all of our business. We see it for the distribution model. We see it for the product offering. What about the product offering? We distribute between agents and brokers. We go back to what we say at the beginning. You remember the Product Engine, the Product Engine , and also the Contract Engine. The Product Engine and the Contract Engine can still be used by putting new products, new contracts in use without writing a single new line of code.
We want to make this capability, we want to make it available to brokers so that they can use it for their customers and use it in line with their sales network and with their own brands, with a number of guarantees that have already been pre-configured and without losing the capability of processing data on the contrary. All of these can be made available to the creativity of agencies. As to brokers, we have the algorithmic underwriting. Brokers can sell structured products or tailor-made products. I'll be very short here. Now, when it comes to structured products, what is used is facility. You speak with a broker, and the broker will tell you what products the broker wants and what conditions. Okay, I'll give you a facility that will allow you to sell products. All facilities were paper-based. We are a technological company.
We have facilities which are given to brokers, and brokers can access a front-end or through mail, thus having an automatic generation of products. We want to use a Product Engine and Contract Engine so as to automate this facility offering to the benefit of the brokers, and now we have more than 20 structured facilities. When you're speaking on the contrary of tailor-made products, well, there we are getting into the real world of the art of underwriting, which has to become science. You need to engineer a process so as to be able to assess the risk. You can do it alone or with another insurance company, so co-insurance, and this will be Co-X.
There is a module which will engineer the way with which we then develop a tailor-made product, collect data, work out a risk score, exclude the score which are not part of REVO's appetite, and suggest to the underwriter what has to be done with that. In this case, you can resort to a smart following of the products, not a passive following. So this is it as far as I'm concerned. Thanks to my colleagues, thanks to the team, thanks to the environment that we have in REVO. We actually have done wonderful things, and I have to say I'm very passionate about what we do, but then we also need your capital, although we, as Jacopo will tell you, generate a lot of capital. At this moment, I'd like to leave the floor to Jacopo, the Chief Financial Officer.
[Foreign language] Thank you very much. Thank you, Fabio.
Great presentation that has enabled us to plunge into the REVO world. Over the next 15 minutes, I'll be making reference to all the growth drivers that Simone and Fabio already mentioned. But before that, I would like to briefly summarize the story, the equity story of REVO since the IPO, and I'll be focusing on a key principle for our company, namely the sustainability, or let's say the self-financing of our plan. Our plan has a number of levers that will enable REVO to move forward and reach a new dimension, let's say, in 2028. But let's start with the equity story of REVO. That is a recent story characterized by incredible growth. Over the past three years, we have more than doubled the value of our main financial KPIs. We have reached in excess of EUR 300 million gross written premium in 2024.
We have exceeded EUR 22 million of adjusted net profit. The financial community has learned to know us, has noticed us, and at the same time, the liquidity of our stock has increased with a very positive impact on the stock value that has performed very successfully, exceeding 85% since the IPO start. We have reached all the targets that we set ourselves in March 2022. If you remember, we had illustrated our first business plan when we launched the project, and we had set ourselves ambitious targets. We have been able to achieve all of them. The operational ROE has reached 18% and is well above what we had planned in our original business plan. Then we have delivered on our promise, namely remaining above the 200% of solvency ratio. And we have kept our promise in terms of dividend distribution, starting from the revenues of 2023.
That is, DPS has almost tripled in 2024. And we were just a startup when we made these promises. And being able to pay such a high dividend to our shareholders right at the beginning is, in my opinion, commendable. Now we are mid-June, so we are in the midst of the year between the bridge year between the old and the new business plan, the 2026-2028 business plan. And therefore, I believe it is the right time to provide you with some guidance. Our ambition is that of reaching a EUR 380 million gross written premium, so with additional growth on the 2024 performance. We plan to achieve an adjusted operating profit of EUR 45 million and an adjusted net profit of EUR 30 million. Please consider that these figures already factor in all the projects and all the developments that Fabio and Simone have reported upon.
Of course, to achieve these targets, we have already made investments. We have already hired key people to drive the development. And these figures already factor in all these elements. And in the new business plan, the 2026-2028 business plan, you'll see the attention paid to technical excellence that is key to us. In our case, it is essential to preserve our technical excellence. REVO Iberia will generate a new business. As I already said, we have already made IT CapEx. We have already optimized our asset allocation, including new financial assets. And we will constantly pay the utmost attention to our dividend policy and to our solvency ratio that will remain well above 200%. This is the most important slide I'm going to show you because it shows how the project will self-finance itself over the next few years.
Simone and Fabio mentioned what the factors are that generate our value chain evolution. This new value chain will generate value thanks to gross written premium growth, thanks to excellent loss ratio and reduction in operating costs, all of which translates into growing profits. And growing profits means capital generation. This capital will be used to self-finance our plan, first of all, to support our growth. We are a regulated company, so when the business grows, more capital is required. And this capital that we will be able to generate will, first of all, be used to support our growth. Then the capital will also be used to serve a strategic asset allocation. We'll see growing CapEx within the plan.
Such investments will generate financial proceeds, and these proceeds will be used to finance the value chain evolution, which definitely will not be confined to what we have just described by 2028, but will proceed after that date. And within this framework, we'll be attaching the utmost attention to the dividend policy, adopting a balanced dividend policy. Now, let's have a look at each and every one of these components of our virtuous value chain. First of all, gross written premium growth that is expected to grow from EUR 380 million expected by the end of 2025 to above EUR 550 in 2028. As you can see, the evolution of this growth will be accounted for by the business lines that we already operate in that will contribute to roughly EUR 100 million, of which EUR 70 from the specialty lines that Simone just illustrated.
The second contributor is accounted for by the developments that we have described, both in terms of new products and in terms of new solutions for our distribution network and our insurance partners. And in this regard, the parametric products will provide a substantial contribution. And I would like to draw your attention to our acquisition ratio because these gross written premiums increase will be achieved with an acquisition ratio that will remain stable within the business plan. In other words, we are not going to provide special incentives to our brokers or distribution network to make our gross written premium growth. Our partners, our brokers, our agents will work with us because we are a reliable partner. Spain is expected to contribute EUR 50 million worth of gross written premiums by 2028.
Another key point is the CapEx required to generate this top-line growth, less than €200 million. Sorry, €2 million euros, which testifies to the scalability of our platform because generating an additional €50 million gross written premiums with only €2 million worth of investment on the IT platform is definitely extraordinary. €50 million over a period of four years. Please consider that REVO Iberia started in 2024, started operating in 2024. This is a very ambitious target that will be achieved thanks to the distribution agreements that we'll be signing with the top Spanish brokers. We'll be focusing on well-identified business lines like sureties. We are market leaders in Italy as far as sureties are concerned. We would like to replicate our leading position in Spain as well.
Financial lines, property, and liabilities are all business lines that we already operate in Italy. Thanks to our team based in Madrid, we'll be able to sell these products also in Spain. Technical excellence is another key driver. Simone pointed out that this has been one of the pillars of our growth over the years. The specialty focus is one of the distinctive features of our 2026-2028 business plan too. Only a few insurance companies are able to generate a loss ratio between 38% and 42%. I would say that probably we are the only ones in the industry, considering the wide range of products and the diversified offering that we provide our brokers and our agents with. Why are we able to generate so much value?
Because we'll be focusing on specialty lines that will be acting as the drivers of our growth. This specialty focus reduces the overall volatility of our portfolio and therefore contributes with a loss ratio lower than 30% to value generation. I've also referred to operational efficiency. You may have noticed that we've been able to reduce our cost ratio following our half-year and quarterly reports. The cost ratio will further improve thanks to the cost-saving activities that we are putting in place. We plan a reduction of roughly 4 percentage points compared to 2025 by 2028. A major evolution in this regard that generates additional value. We'll be monitoring the ESG factors in terms of suppliers' tracking and containment of operating risk, exactly as companies are doing.
And areas that will most benefit from the new value chain structure are the reduction of administrative costs and reduction of personnel costs. So the personnel is not growing proportionally with the growth of gross written premiums. People are key, as Alberto already pointed out during his introduction. We started with roughly 250 people at the beginning of the journey. We expect to reach 300 by 2025. And we plan to hire only 65 new headcounts, a very limited number if you consider the type of growth that we plan. And this can be done because we are going to adopt the new operational model that Fabio described. But these 65 additional headcounts have very clear distinctive features. We know exactly what type of skills we need.
There will be people focusing on IT and data and will contribute to the development of our distribution model through REVO Underwriting, as Simone described. And this will translate into productivity growth by headcount. By the end of 2025, REVO will compare favorably with the other market competitors. At the same time, we expect a 25% growth of gross written premium per headcount with a production value of EUR 1.5 million. And let's now see what the impact will be on our adjusted operating profit. Such growth will contribute to our operating leverage by EUR 15 million, with a dimensional increase of EUR 25 million, leading our adjusted operating profit in excess of EUR 85 million versus the EUR 45 million expected by the end of 2025.
All the elements that Fabio described will contribute to the increase of our operating leverage that currently is based on EUR 550 million, but has a huge potential over time because the IT platform described by Fabio will be able to generate value well in excess of the target that we set ourselves in our business plan. Talking about technology, investments are paramount. We haven't remained idle in 2025. We already started investing roughly 10 million investment that we plan by the end of 2025, which the largest share will be invested on the IT platform, as described by Fabio. By 2028, we plan to invest EUR 25 million. Most of this EUR 25 million will support the evolution of our value chain that I've just described a few slides ago. The value chain will be financed by the income generated by our strategic asset allocation.
Our strategic asset allocation will be focusing on the quality of the assets. We have always focused on the quality of our assets to reduce the volatility of our portfolio, especially during adverse market conditions. We'll be sticking to this approach. We'll be further reducing the Italian govies components. We are exposed to the Italian govies already. We would like to reduce the Italian govies down to 25%, and the return is expected to be in excess of 3% over the planned period. We will, of course, confirm our commitment to ESG investments in our portfolio. The diversification of our assets has been mostly appreciated by Standard & Poor's. That has appreciated our capital soundness, the diversification of our insurance portfolio, as well as the diversification of our financial assets, so the goal is remaining focused on the rating and enhancing it.
Simone pointed out that with this rating, we can start new business lines. And it is definitely a very nice business card to enter new geographies, particularly foreign markets. So this good rating is assisting us in Spain, where we are a newcomer. So having such a high rating is definitely a very good business card when you, again, enter a new geography. But at the same time, we'll be committed to ESG investments. We have already been assigned a E E strong rating in terms of Standard Ethics rating that we want to preserve within our business plan timeframe. I've also mentioned the dividend distribution. Our dividend policy is going to be balanced, if I may use this word. REVO will always keep into consideration the short-term remuneration of shareholders and retain the capital within the company needed to support future growth.
So we therefore believe that a 30% payout ratio is more than suitable and sustainable. The Solvency II ratio is expected to remain in the neighborhood of 200%-230%. And considering our target range, 180%-200%, this Solvency II ratio that we plan provides us with a 30%-40% buffer that provides us with strategic flexibility that is key to us. Strategic flexibility translates into the ability to grasp opportunities that may arise on the insurance market in terms of business lines that we want to focus on. It also means that we can ensure the best reinsurance conditions with the plan of optimizing our business and, at the same time, reduce the volatility of our portfolio and then make more profitable investments within our strategic asset allocation should the conditions on the financial markets allow this.
At the same time, we'll be growing our Co-X portfolio that can provide us some additional upside. We are certainly ready to use this capital buffer for future M&A opportunities should such opportunities materialize. All of this leads me to illustrate the 2026-2028 plan targets. In 2022, we started with EUR 10 million, EUR 22 million in 2024. The goal is that of exceeding EUR 50 million by 2028 in terms of revenues. How will this be achieved? By increasing our gross written premium, growing in excess of 15%, which is double the average CAGR that we considered in Spain and in Italy as a market average. A substantial growth. This gross written premium growth will translate into progressive increase of EPS with a compounded annual growth rate exceeding 20%.
I would say that no insurer in Italy is able to grow at such a rate. Such rates are closer to those of U.S. players that make REVO as a unique player of the Italian market in terms of value proposition and value creation as well. Our adjusted operating ROE by 2028 is expected to exceed 22%. All these KPIs will translate into a Solvency II ratio that will remain above the target range that we set ourselves. This range is calculated using the standard formula with the exception of the USP related to sureties. So an absolutely reliable and comfortable Solvency II ratio range. I hope I've been exhaustive enough when it comes to the financial targets of our new business plan. I leave the CEO with the final conclusions.
Well, we are at the end or at the beginning, if you like, at the beginning of a very nice path forward. I'd like to thank my colleagues for being so clear. And I'd like to go through a number of fundamental points. So the first message I'd like you to take home is the following. This is a practical, solid business plan, which is based on the hard work of colleagues, a bottom-up plan with no indications from the CEO. It is the result of the core of the heart of the company. For this point of view, it has low execution risk. And now the company is ready to follow up the first business plan with the second one. It's a very practical, no acquisitions, no major disruptions versus what we are going to do within our distribution and operating model.
The idea here is that we have a lot of experience. We have a favorable corporate culture, and we want to achieve in 2028 the targets that we've just outlined. We need an intelligent cooperation between man and machine. Now, if you look at financial targets, though noble, but if you confine yourself to reading figures, then it would be a very limited interpretation. Our main assets are our people, our colleagues. We have a technology gradient where machines will continue to inject technological solutions and value will grow more than volumes. This is a commitment that we take with the financial markets. We are convinced that we can do this because what we've put in production over the past five months, we know it tells us that we provide a good service to intermediaries. We have decided to stay away from price competition.
On the contrary, we want to do competition based on services. We could have easily cut down on prices, but then it would have been foolish because then you have claims and sometimes premiums do not cover the claims-related costs. And for this reason, we have decided to invest in service to intermediaries through technology. And here, I believe we are very good, perhaps better than others. And we always need to keep focusing on the capital soundness and on the technical underwriting capabilities. These are the two elements that generate value. No compromise here. We need to be capable to perform the work of an insurance company. We are a tech insurance company. We remain insurance, which is the best work of the world. And by using technology, this job becomes some fun as well. Those who invest in REVO will be exposed to insurance risks.
We have a low volatility of our portfolio and of our capital to interest rates and equity. We invested well to become good insurers now. And finance can help us support our development growth model. And we are only exposed to insurance risks. Those of you who are going to buy REVO's shares will buy an exposure to technical and insurance risks. So this is an asset which, within an investment portfolio, has the capability to decorrelate the portfolio. Well, at this point, I'd like to thank you because I have seen you very attentive. Many people were connected remotely. I believe we've given a clear overview of what we want to do and how we want to do it. So only time will tell. And we'll meet you again going forward. And we will tell you what we have achieved.
I'm sure that we will proceed along this direction because we are a very united. 2026. Now, this is Liquidate who speaks with the operator, with the claim settler, and provides the claim settler a report of activities that are to be carried out after a given period or a day. Now, good morning, John. During your absence, we have received 22 information, 20 mails, and two vocal messages. Six of these were communications of new claims. I have already opened the claims in the system, and I have already assigned an expert. 10 were reports of claims already existing. I have examined all of the reports, approved them, and prepared the settlement notes, which are ready to be signed. I have then updated the intermediaries. Two were advancement on existing claims. I have updated the state of the claims. I couldn't validate the last four notifications.
And I'd like to discuss this with you. So a totally different way of working, as you see. This is not science fiction. It is already existing. We are working on the distribution model. We already have functions. And we are working a lot on the push part, the possibility to retrieve data that. Management team with high-quality personnel. And we are convinced that we can do really well. Thank you very much.