Good morning. Good morning, everyone. Thank you so much for being here today. Welcome to Unipol Tower. This is a beautiful, beautiful building. Forgive me, I'm a bit excited, not so much because of this architecture that I know very little about, but I'm excited because we're very much standing in the headquarters of Unipol. Unipol is projected into the future and that is indeed what we're going to tackle today. We're going to be talking through the plan, of course, but before we dive into it, Chair Carlo Cimbri, many greetings from all of us. Thank you so much, Chair, for attending, which of course I was expecting. Thank you so much for your precious contribution and support you have always provided in drafting this plan.
The plan is deeply rooted in all of the efforts we made over the years, particularly during the preparation of the last plan, of the prior plan through 2024, and indeed, we have opened a number of avenues ever since. Now time has come for us to consolidate all of these avenues. The goal, of course, is to consolidate our leadership position within our reference market, that is insurance, throughout this country, throughout the country, throughout Italy. Of course, the objective is to become stronger, taking advantage of and leveraging all of the investments that we will be making over the next three years in human capital as well as in technology capital.
First and foremost, I'd love to spend a few words on technology, as many investments will be made into new technologies, innovative technologies, and again, is very much to seize, as fast as we can, all of the opportunities and capture the needs from our customers and clients.
Once again, we are ready to take advantage of the insurance market. Once again, the objective we have is to further improve versus our performances. We have excellent performances. Once again, this is going to be quite difficult to do. Anyway, we will improve the remuneration profile of our shareholders. This is major, challenging plan that we are about to start off. We get ready to go through this and it comes after, you know, three years, where we have created plenty of industrial value and even financial value. This comes, as you can see here, from the performances of our shares in the past three years. Our shares went up quickly, especially throughout 2024, so it was the number one share in FTSE MIB here in Milan.
As I said before, there's plenty of untapped, unexpressed value for these shares. Once again, this is a very first important point and this means we've been able to distrib parts of the value that we have created thanks to higher dividends that we have paid out, I mean much more than the plan, so 35% more than we had in the budget. All of this was made possible thanks to two special factors. Factor number one is the improvement of the technical industrial permittability of our business, which is of course insurance. The second pillar, as you can see here, is the strong improvement of the contribution of the investments, financial management, boosting the profitability of our group. Once again, you know, the context has been characterized by uncertainties and high volatility.
We started the plan with the Ukraine, Russia war, plus the high inflation rate. Then we have had major natural catastrophes, especially in 2023. Despite all of this, we've been able to hit the target in terms of high profit. As for the banking strategy, it also works very well. Major results have been obtained. This confirms that the model of, I mean the management model that we have here. The fact that taking advantage of bancassurance versus a more traditional model created important results not just in terms of premiums and profitability of our insurance business, but also in terms of performance of the banking shares. Great results in terms of our investments in terms of market to markets, but also in terms of dividends that we've been able to cash in and then pay out.
Once again, despite all of this, we still think there's plenty of untapped, unexpressed value in our shares. We think that this value can be obtained thanks to the acceleration of this kind of journey. We want to increase profits and dividends. We will be talking about this today. I will take care of the strategic context. The floor will go to Enrico San Pietro. Enrico will be talking about the industrial action part of our vistas. Now let me share with you just one quick word on the previous BP versus plan from 2022 to 2024. As I said before, let me walk you through this quite quickly because these are numbers that you know very well. As for the reported accounting profits, this is much higher than the plan in terms of insurance group.
Once again we have exceeded, I guess, in terms of insurance group. This is really important. I keep repeating this over and over because it's really, really fundamental. This is the economic measure, if you will, that describes the contribution to profitability depending or coming from the insurance business on the one side together, contribution of financial profitability coming from investments on bank and strategic stakes. If you put these two ingredients together, you have quite a specific idea of the so cash remittance, which is the possibility that an insurance company has to create cash so that you can really distribute this to shareholders. Once again, EUR 1.3 billion. This is what we have distributed. You can see here the comparison.
This is what Unipol Group has paid plus UnipolSai to third party investors plus solidity profile, which is now 212%, which is a very, very high part of the range. Very good results. They have had some repercussions on the evolution of the shares. Now on the left, this is our recent history, if you will, but we also have to take into account the current reality. There has been a kind of an important re-rating of the shares, but we are still, you know, undervalued, if you will, as compared to our peers, I mean, companies we have to compare ourselves with. I cannot, well, reveal the names of our peers, but let's say one is Italian, the other one is in Germany, another one in France and another one in Switzerland. It is up to you to guess.
Now there's a major gap that still has to be bridged and we would like to do this in the next three years or so, thanks to some specific actions. You know, the market context, as usual, is once again very, very uncertain. All the plans include some assumptions. You know, during the three years, unexpected events always, for example, you know, what we have to do is to face or take up challenges. This means we have to stick to our targets. I mean, we want to reach our targets. You know, the geopolitical context that you are familiar with. I am not going to repeat this and I am sure that this will, you know, generate a moderate, modest, if you will, growth context.
As far as the Italian economy is concerned, we think our economy will be able to grow just by 1% or a little bit less than 1%. We do not think that inflation may be a critical situation. For the time being. The tariff policies from the U.S. go hand in hand with the weakening of the U.S. dollar and the strengthening of the euro. The European Central Bank traditionally keeps monitoring inflation, so once again they will keep the disaggregate under control. Inflation in Italy will be under 2%, just like the rest of Europe, just like the evolution of rates. I mean, in the past three years, from 2022 to 2024, rates were very high, especially at the very beginning of the three-year long window.
They dropped thanks to an expensive monetary policy, or if you will, a less restrictive monetary policy from the European Central Bank. Today's rates are flat between 2.3%-2.4% on the five-year long swap curve and around 3% on the easterly five years. We are using the five years average because this is very similar to the average duration of our assets. We have 4% on 10 years. This is the context we are working in. There are no assumptions so concerned in the evolution of the stock exchanges, credit spreads, and the spreads concerning obvious because these assumptions are almost always wrong. Once again what we usually project is the as is, so today's situation. As for the insurance market, we think that this market is quite healthy and sound in terms of growth and development.
The premium level will go up in all our business lines. I'm not talking about the non life business, I will also be talking about the life business of course. Now the mv, so the motor business, and increase the premiums. This is basically due to a repricing context, I mean from the market operators as compared to the, you know, average cost which is once again going up. Once again profitability is due to go up as well in the nmv. So non motor vehicle business prices are going up because demand is also going up. I'm talking about nat cap component of course, I'm talking about catastrophes. We also think that the climate change in general will entail an increase of sensitivity and awareness of retail operators to buy coverages or hedge.
The same happens with welfare. Population is aging, NHS is going through some difficulties. More and more Italians will need insurance protection systems. Profitability is flat because it starts from quite good levels. I mean the combined ratio is well under 100%. As for the motor business, combined ratio is exceeding 100%. You have to take into account the starting point when you want to measure the profitability on the business in general. As for the life business, interest rates are flat. Once again, the evolution of unit linked investment policies. This level should be flat and the same will happen to profitability in terms of distribution of the life policies. Banks will play the lion's share in terms of market share in the non motor business. We have two key topics to share.
The first one concerns, you know that agents have the biggest non life biggest market share in Italy. Banks will be protagonists. They will give a contribution to the business growth. This is an aspect that characterizes the previous plan and I'm sure that this will also characterize our company in the next three years. The digital channel will keep having a significant and meaningful role in terms of the business in general. On the non motor business it won't have a significant role. While bancassurance will definitely be a key driver in terms of distributing our products. This is due to the fact that this channel is very active in the welfare business. This is a general scenario which is a sort of a benchmark for us. As you can see in this competitive scenario we have four macro trends.
We think they have to be further developed in the next three years or so. In general, this will happen in the future of our business. Once again our population is aging. Italy has a major issue in terms of population aging. Life expectancy here is one of the highest in the world. We live longer but maybe we live a little bit less well than, you know, other countries. There is plenty of demand for new healthcare services. Once again, the national health care system in Italy is finding it difficult, I mean, to keep offering the same top level services we were used to. This is an opportunity for us because the private welfare business is now having a growing role but it is kind of small in Italy versus the general healthcare expenditure.
This will have a bigger and bigger role in the future. We also have to consider climate change. Now again it goes without saying that this is a major opportunity. We can see the consequences unfortunately of climate change. This is what happens in the past three years and as I said before, especially in 2023. This leads to an of demand for protection services in terms of companies, organizations and private citizens. Once again we have to consider this as a market opportunity. As a consequence we have the opportunity to offer the right services, the right products in order to meet customer needs. We also have two major points I'd like to draw your attention on. Point number one is technology and AI. Especially the generative AI. You know that this point doesn't just concern technology.
I mean it's a new way, it's a new way of designing and conceiving our business. We have the duty to leverage AI because it definitely is an opportunity on all the different areas of the value chain of our business. Enrico, in a few minutes we'll be talking about this. Just like the, you know, customer behavior topic which is very important especially concerning the youngest generations. You know, millennials and Gen Z have an expenditure capacity which is kind of small and low but they will be our future customers. Now they need right now, you know, quick reaction, quick answers, some custom made services, tailor made products just to meet their needs. Once again we have the duty to, you know, meet all of their specific needs. Let me share with you bullet number three, which is our strategy framework.
Now this is the most complex slide. Sorry for this. Do not worry, next slide will be much easier. I just wanted to, you know, to put in just one single slide all of our distinctive assets that also describe our identity profile, which is what we are, the way we look like and how we can be different. There is a tangible aspect which is the operating model, which is the welfare model. This is the largest network having special agreements with healthcare services providers. Inside the Unisalute we have all of the capabilities and skills we have in terms of healthcare and welfare in general. I am sure this is a distinctive aspect. Just like the motor model that we started implementing decades ago. It is so sophisticated we know how to manage our tariffs.
We have to consider the way we pay damages and of course we use ITC or telematics. This means we have plenty of data sets available and this means we can do all what I said before. The management of tariffs and the claim payments. Once again, as for the insurance, now Unipol is the top of mind brand and this is a great value. Just like a reputation. We are leaders in a reputation. We've been leaders for many years. This is a fantastic, you know, differentiator versus many other companies. Now we have data or data sets issue. We have more than 4 million black boxes installed in the cars of our customers.
This means we produce so much data and this means we can do plenty of things also in terms of GAI, so generative artificial intelligence, something that some of our competitors cannot do in Italy or even in the rest of Europe. Now on the right hand side of this slide, what you can see is a couple of blocks. There is a block whose name is distribution, which means basically agencies or the agencies network. This is very important for us, it identifies us not just because this is its biggest network, but they are extremely specialized, top skilled and of course we have plenty of projects in the next three years or so to keep moving on.
Just like the banking network, once again we have BPER and Banca Popolare di Sondrio, Banca Popolare Media Romagna. We have created a completely different model versus the traditional, you know, bancassurance banking system. You know, in that case the logic is very commercial. For example, I may sign an agreement with a bank. The bank is paid fees and commissions, the insurance company gets the technical margin and at the end of the agreement usually we fight because of the value of the stakes. Well, our system is so different. We have an industrial logic. Of course we need shares and stakes. But what we believe in is the industrial value of these agreements. These are two integrated networks so they do not compete against each other. They do plenty of things together, they exchange customers, for example, you know, customers from the insurance business.
They may need banking services and vice versa. We are a major organization, 16 million customers, I mean the CB or customer base allows us to carry out commercial industrial actions. Really, really very. Thanks to this we can offer our customers insurance products, but also many other products. For example, services having to do with mobility, ecosystem, welfare, and property. This is what we mean by beyond insurance. In the previous plan, sorry, we made so many investments, I mean to take over plenty of assets. They were included into the three major ecosystems we are competing in. For the next three years we will keep investing on those assets because we want to make them stronger, we want to integrate them, and we want to create a new concept.
I mean products and services will be highly targeted in order to meet our customers' needs. This is our basic framework, if you will, and we have developed, you know, some verticals. Now as you can see here, this industrial plan is aiming at improving industrial profitability level, the so-called technical profitability level. Of course, I'm talking about both business lines, life and long life. We would like to improve our commercial effectiveness and we want to do this thanks to a specific integrated model. This will give us some more, you know, more energy and even more strength to all of our agents. There will be plenty of investments on our agents because the agency network has to become stronger. To do this we have to keep investing in technologies and people.
Now not only the people who are, you know, protesting just outside, you know, right here in the main court, but we have 40,000 agents and employees. Let me share with you four key bullets. Very quickly Enrico will give you more information about this stronger industrial profitability. What do we mean by this? First and foremost we would like to invest in those businesses such as like insurance for example, where you have high expectations in terms of profitability per unit of risk. We would like to go where we will have, let's say, less risks and more money. It may sound banal or trivial, but it is not. I mean in terms of underwriting, we need to take into account all of this complicated situation, kind of difficult to do, but this is something we started doing in the previous business plan.
This goes through other ingredients, for example, building products that are natively oriented towards those targets. I mean we want to improve the dynamic portfolio management. By this I mean that we have a sort of a rerouting of our business towards some in lower risks and high performance areas. Of course we have to refresh and renew, you know, insurance policies which are very close to maturity. We also have to pay attention to fast growing businesses, especially when it comes to health and welfare. I mean we are experiencing, you know, double digit growth rates. This should slow down a little bit. Anyway, average growth should be around 8% in the welfare business. We also have to pay attention to the profitability level that welfare brings about right now, but also in the near future.
We do expect the offering model to be faster and better integrated. This means that we'll be developing an innovative platform which is strongly based on data, which also allows our distribution network to be more effective from a commercial standpoint, from a sales standpoint. Enrico will further deep dive into this very topic. When it comes to the innovation, this project is a very remarkable one as it is one of the most important projects that the company has taken care of over the last few years, also hand in hand with the health aspect. The bottom line is that we want to develop an omnichannel and multi-modular approach which allows our customers to access both from a physical standpoint, so people can literally walk to branches, or they may access digitally.
The idea is also to better integrate beyond insurance world so that we may provide an integrated unique offering which is in the way also mirroring our strategy. All in all because we've always been strongly focused on insurance first and foremost, and the idea to broaden up to the beyond insurance products was, let's say, was about having a better interaction, a more expanded interaction with our customers, stronger and better than what a traditional insurance company would deliver. The next three years we will surely be investing in our distribution network. I would say agency network mainly and you see what I'm saying in the chat, in the slide here. I'm saying Omnichannel distribution agency network centric. What does that mean? It means that we are undergoing an Omnichannel distribution model which means that customers may access say Unipol through digital platforms as well.
But also those who will be coming through the digital, they can then be supported by our agents through a bespoke offering. Which basically means that we'll just make it possible for our customers to reach out to us in a more integrated manner. I don't personally believe that digital can be the one, the one way our customers will reach out. But likely digital is going to increase, perhaps in the next few years it will become the most important channel. What really says is that people are still be strongly supported by our people whilst they're seeking for the best insurance company. A digital platform alone cannot really take care of that because there's still a big need for support and consultancy and so on, and that can only be provided by our agent in person. We're also going to be focusing on bancassurance.
You'll soon be seeing what are the goals, where actually some have been already conveyed through the press release. We do have indeed ambitious objectives. Enrico will also tell you the way we want to get there. Last but not least, of course, tech and people skills. We constantly invest into people, into the evolution and upgrading of people skills, with specific references to innovative skills in terms of data management and so on. Of course we will make it possible for our digital platforms to evolve as well, so that we may reach out to the practice we have. Meanwhile we will also adopt and implement AI based algorithms in a faster way.
We are still a traditional company, we are deeply grounded into the territory, but of course we need to evolve our business model and no doubt that we will seize all of the opportunities that AI technologies are offering. We will gradually approach AI. We will be starting with the scale up, of course, by, let's say, working on use cases from time to time so that we may find the best solutions according to our needs. I will now lead the floor to Enrico and he will carry on and he will very much deep dive into the heart of the plan. Thank you.
Good morning. Good morning everyone. Thank you, Matteo. Thank you. Thank you. To my colleagues in person, those who are watching remotely, all of you, you made this possible.
You made of course the results of the prior plan possible and you've also deeply contributed to the strategic plan. Over the next three years I will try to further deep down and I will be focusing a bit more on the first top three topics, so to speak. Let's take a look at first that what is the strategy that really proved to be effective, to be working successful, which is the one that of course we still want to carry on with. Meanwhile we're going to improve it and we will try to be faster because big global changes which are current really make it mandatory for us to understand what's going on and react accordingly. The goal of course is even to exceed ourselves and to be even better than what we've done so far. Let's take a look at the very first one.
Industrial profitability. Matteo said something about this already. On this graph you may see all of our lines of business according to their average profitability as well as the average volatility over the last decade. On the top left hand side you may appreciate, for instance, the line of business of non life and little volatility and huge profitability. More here below we see the agricultural risks. Profitability is negative. Super high volatility. Now, what do we do based on this graph? Basically, we do want to define and implement more accurate strategies and be able to implement them according to what this graph is showing.
High profitability, low volatility, of course a strong growth strategy, vice versa for those lines with high volatility and low profitability will be strongly focusing on recovering margins and with a very accurate management of exposures and also de-risking. What do we expect in the end? It is a better mix in our portfolio which is more profitable and less volatile. How do we want to get there? What are the levers that we want to make use of?
Let's see what we did. This is what we do with product engineering. I will tell you what we mean by this and then speed, I mean the fact that, you know, managing the portfolio a little bit more quickly than we've done so far and if necessary with careful management of acquisitions and de-risking. Bullet number one, I'm talking about the motor business. Now in the motor business I have to say that our key tools and, if you will, leverages, we are able to get better results versus our competitors. We just have to continue, so to say, and we will continue with sophistication and improvements of underwriting and pricing tools. Of course this will happen in all the companies of the group. We will then continue with a key feature that we have, which is the combined offer.
Telematics plus insurance. We will also have to improve claim settlement processes, and the market is telling us that we are quicker in terms of settled claims. Once again, this is the right condition that we have in the plan. I mean, we can really improve. We have to industrialize our processes, which is what we have done for MAS claims. We can improve on the big or large amount claims, but also on the leisures. We will be talking about something new, which is the so-called Unica offer, which is about to be started. We do not have to forget the possibility to manage the so-called aggregated demand. I mean, the large fleets, for example, car makers, long-term rental companies. Once again, this is a long-term process. We have to transfer, I mean, the fact of owning individual cars to aggregators.
Of course we need to have specific skills to do this and to manage this in a profitable way. What are our targets? You can see them here. The growth of the average premium income, which is 4.2%, so EUR 4.9 billion, and the combined ratio COR improves because end of 2024 we had the 100%. We would like to reach 95% in 2027. Now 100% in 2024. As we said in our quarterly meetings, it depends on the Milan court tariff tables and we have worked a lot on pricing or tariffs. Again, I'm sure we will be able to further improve the COR. Let me talk about the non-motor vehicle damages in terms of property. We have had some turbulent results. It goes without saying that this is the business where we need to work at best.
We need to improve profitability. You can see here the results and the consequences of our efforts. You can see here the pricing and underwriting areas. We will have a more sophisticated model and this means that we have the possibility to change, you know, the system. We just will, you know, take opportunities. Of course we will be useful for our country. Once again companies necessarily have to be hedged for insured against natural catastrophes. Of course from the industrial point of view we will be able to take advantage of this opportunity. We will do this by being quicker and quicker, faster and faster. In the non motor vehicle business this is fundamental. We need to adjust conditions and pricing on the portfolio when the underlying risk makes this necessary.
Once again what we also have to do is to further improve claim settlement process. Our processes, well, work very well let's say in ordinary normal situations but especially after, you know, the devastating 2023 natural catastrophes where you have tens of thousands of claims in a few days. The process has to react promptly. We have to adjust to every single situation. Being faster in helping customers and also being more effective in settling claims. We will be talking about this in a few minutes anyway. We will continue this growth and the average growth will be 4.7% yearly increase. We will then stabilize combined ratio. It was very good. I mean it was 88.3% in 2024. We will keep it below 90% in 2024. Do not forget back in 2020 before natural catastrophe incidence was relatively positive.
This is one of the possible explanations. I mean, we've been very cautious, very prudent in calculating the next plan. Let me take you a little bit into the, you know, depth of the product engineering. Now, product engineering is a key element and once again we have to be better than our competitors in terms of pricing. Exactly. This is the key to be more competitive on the best risks and less competitive on the worst risks. This determines a better industrial result versus our competitors. How can you do this? You need to understand the risks better and better. We have to become more and more accurate in doing. You have a complete real world example concerning the CASA policy. Once again, of course we know risks very well, but of course we've further improved.
As it usually happens, improvements are a consequence of having data, using new fresh data. This is what we have done. We have used generative AI and we used it to analyze thousands and thousands of expertises. This is something we could have done by hand, but it would have been impossible. We have derived detailed information on the frequency of those cases. Once again we have plenty of details. For example, what's the price of a flooded apartment, for example a tree that falls generating damages, or for example a photovoltaic panel being damaged by hail. We use the Italian cadastre of data sets. We also have risk maps. All of this means we now have new variables into our pricing structure. For example, the presence or the absence of a basement or, you know, underground rooms.
Once again we've been able to use satellite pictures. Now of course we cannot ask customers, I mean, to take aerial pictures of their homes. Guarantees are very specific. We need to cover, you know, every single specific risk, for example PV or photovoltaic systems or even, you know, trees in the garden that we are insuring. Once again we're going deeper and deeper because we want to perfectly assess every single risk. This is what we are doing on the so-called new production, I mean new policies. What we need is to work on the portfolio. I have to say that the portfolio in the non-motor damages, we have a tacit renewal. If you need to change the price and the conditions, I have to cancel the policy to the customer.
This is something really, really critical in customer relationship management. Of course we have to adjust the conditions of our portfolio. Starting back in 2017 in the new policies we have a new provision, we can adjust the price. Of course the customer can accept or reject the new proposal and I have to say that we use this system for around of the portfolio. We want to be faster so we're doing something so innovative for the market. In the next three years or so we will move out of the tacit renewal. For example, our policies on the basic, you know, systems won't be depending on this type of renewal. We will have better, more transparent relationships with customers so that we can, you know, adjust pricing and conditions if we required. This is something that we have already done.
I mean the fact that managing exposure and working the 2023 events have been very, let's say, important for us. We understood that we have to work with our agents. This was absolutely a fantastic effort. We had to reduce concentrated risks, including too many risks, maybe in a small geographical area. This is what we managed to do with some pruning and repricing activities. In terms of Nat cat guarantees, we have increased the premiums. Look at this. You know, in general atmospheric events, plus 33% premium level, this is what we got in 2024 - 50% of annual probabilistic expected loss level. This is the reduction of risk concentration. This brought us to a new condition which is much more solid, sturdier. If an event happens, we won't be, you know, receiving this kind of shock.
Okay, the shock will be lighter, if you will. We will be able to keep seizing growth opportunities but at the same time we will be much stronger in terms of results, except expected.
We have spoken about a number of topics already, but when it comes to settlement, there are a number of things that we can improve. We do know we're actually able to send our customers our real time alerts to let them know that most likely an event is going to happen. This way we help customers to either limit or even avoid damage. Of course, even when that happens, say we're still able to understand how bad, how severe is going to be like and what are the actions that we will have to undertake to be as effective as possible and of course as fast as possible.
Being able to settle a number of claims, attracting experts from all over the country and of course during the settlement phase all of the information is duly provided because we can do that through AI and we can settle claims better and we can be even more accurate in pricing and underwriting the following time. There is a lot here and this is really important, something that I really wanted to get across. Life and health, well, life and health of course over the years are increasingly important, they are becoming more important, they do grow. Of course there is still room for improvement when it comes, say, to industrial profitability.
We still want to improve here when it comes to improve profitability. Of course that has to happen through actions and activities such as becoming excellent in settlement, in claim settlement because we do manage millions of claims in a year. We also want to be able to leverage bancassurance which provides the better margin and improves our overall results better. Something that we've improved over the years is the offering in the health and we've added some service components that I will be deep dive further into. When it comes to life, of course we always thrive to improve our margins and this means that we need to diversify our offerings. Protection, prevention, investment and we are also leaders in the pension funds and that can help us as well.
The efforts here, they really mean to become stronger, more consolidated in the growth, but also in the value generation. You can see the target on the right hand side when it comes to the new business value of life. EUR 1 billion cumulative over the next three years versus EUR 750 million we've generated in the prior three year plan. In terms of health, the CAGR is growing 7.7%, EUR 1.1 billion in terms of income for 2027 and Group Health Insurance Service result growing by EUR 300 million cumulative up to EUR 450 million. We've been through the first portion in terms of how to improve our profitability. Let's now move to a faster integrated offering model. Here again I think there's something very interesting that I can talk through.
When I say offering model is insurance, but also beyond insurance and the two are becoming more integrated with one another. Of course if we focus on the key items, we can take a look at the initiatives for the next few months. First of all, we'll be launching Unica and I'm going to talk about this in a moment, the omnichannel and then only this. Again it follows the same logic. Omnichannel, retail offering and this is all going to be enriched with a number of services which of course are tied to health. For instance it will include virtual care, telemedicine, remote medicine support. We will also be growing our integration with the Santa Claus Agostino healthcare centers. In terms of the mobility, of course we have been leveraging telematics over the last few years.
Now the toll associated service has been increased and it will become even richer over the next three years. Unipol rental big investment and efforts are still needed to make this investment profit by improving the offering as well as the operating model. Let me start from Unica. Unica is the platform for the retail offering. This platform will become available for our agency starting from April 7, literally in a few days. This is going to be truly revolutionary. It is a single contract which will allow to insure all of family household risks. Motor, home and family, personal, when I say home and family, most including pets for instance. We have the opportunity of course to interact with the customers in a brand new way. It will be omnichannel, a native solution. Omnichannel.
It means that this is something that customers will be able to purchase, buy by themselves. They can do their maths by themselves and then potentially talk to the agencies to finalize or even broaden up the offering. We do believe that 2025 numbers will be already interesting ones, significant numbers in Unica. We do expect a lot from Unica in terms of development and results. Let me spend some words on Unisalute. The digital offering. This is already existing on the digital channels. It is a modular offering including all of the retail offers. Over the next few months we'll be completing this omnichannel model so that the agencies will be able to smoothly interact with customers through platforms. This platform will also be made available to our banking partners.
Of course there will not just be the insurance piece, but also we will be able to enrich with new services from our entire APO system. Talking through mobility, Unipol Move is something important that has started through electronic toll collection. Over 2 million devices. It's been developed by Unipoltech. We've greatly invested on Unipoltech. Two lines of business today, telematics of course our history as you know and also today the electronic toll. Over the next few months we'll even improve this offering. This is called the Unipol Smart Move. It is a single device inside bridge. You may actually rely on the electronic toll functionalities as well as the telematics. This is a further step that will allow us to improve cross selling.
Those customers who have purchased Unipol Move will be able to actually rely on the same device to benefit from telematics and the other one depending on what they purchase first. We do expect a further step onwards in the development. Of course, talking through development, this is something that will be made available to our agency network. Our agency network is essential to our strategy and to our omnichannel strategy. As Matteo said, customers will be able to do most of it by themselves. They will be assigned to an agency, to an agent who will further implement and improve the relationship and the kind of partnership, if you will. Over the last few years we've developed the omnichannel logic in a number of items, travels, pets, home and so on.
Several million of policies were actually being developed through Unica. This strategy will surely be making a leap forward. This is also a challenge of course for our agency network because new tools and opportunities require new skills. He also expects a brand new generation of agents who are able to seize those opportunities which are being, let's say, which are being created, which have been established within this very new context. Agents will also leverage another kind of improvement because we will be replacing our CRM obsolete system with Salesforce. Salesforce is now worldwide leader in CRM supporting sales. It will help us finalize even more effectively all of the opportunities that we will be generating through the digital channels. We do have many different ideas. We do a number of things.
Of course, our agents will have to deal with a broadened offering, a strategy not only in insurance, but also beyond insurance. Something else we have done and we further want to develop with our agents is the ability to use, to make use of precious time of agents on what can generate value, on those sales initiatives that will deliver the best revenues per worked hour both for the company as well as for the agency. At the same time, in this broadened range of offering, it is very much important to be specialized. We have developed some networks of specialists with thousands of consultants who can make themselves available. Again, we want to develop this so-called financial family specialist, which means those services for those customers who want to increase and improve the effectiveness on their life insurance.
A huge attention is paid also to bancassurance. Bancassurance has grown. Of course, the market share in the non-life is not significant. It is significant in the life line of business. When it comes to the non-life development, we do believe that both the strategic commitment from our partners as well as the expertise and the know-how that we may offer may deliver great satisfactions. Unisalute, but also many other services, are becoming more and more available also to our banking partners. This is relevant for what I'm showing here as well as the life. The evolution of capital life offering may allow us to really move forward with ambitious goals.
You see, the goal is that we want to grow by 24% per year moving to EUR 1 billion income in 2020, it does not just mean growth, it means growing in a high profitability line of business whilst reporting low volatility so that we can become even more robust and solid in terms of the life premium income. Again, you see, we mean to grow and potentially have a EUR 3.4 billion income in 2027. I have tried to show you what is underlying our targets. I will now leave the floor back to Matteo Laterza. He will tell us about the last of our four key drivers.
Thank you. Thank you, Enrico. Indeed we do come to our fourth key driver. I will be tackling technology.
Enrico spent a few words on technology as well, but I will go back to that and I will also talk through the years human capital. Human capital means skills, meritocracy and generation exchange. When I say skills, I mean people skills, where we want to enrich the skill set for our people from a technology viewpoint. Something that is also AI based in terms of data management. When I say meritocracy, democracy, it means that we want to develop multidimensional performance based systems which allow our colleagues to really benchmark themselves with the objectives and reach out and even exceed them so that they can grow professionally in their career. Of course, there is also a generation exchange topic. This is something that we have worked on for a while now.
The objective is to accelerate the generation exchange and of course we want to repeat that year after year. To speed up this process, even all of the above, for us to be able to take advantage of our technology investment in the most effective manner. Again, I'm talking through tech platforms. Everything that Enrico said can only be fulfilled if we have new systems, new technologies, so that we can really interpret the new needs from our customers and be able to respond swiftly and accurately. Of course the AI, AI solutions, on AI I will be spending some words in specific through a slide in a moment. The investments we'll be making is equal to EUR 500,000,000 over the next three years. Quite big investment.
In terms of new hires, we do expect to have 400 new hires with some very specific skills. These people will be added on top of those specialists who are already working with us. These specialists are not only those who work in Laterza, but also I'm talking about a number of specialists who very much own a unique skill set which we want to become as widespread as possible throughout the course company for the reason I said before, because we still want to leverage people on the territory and therefore our people must have, must own the skill set to be able to cope with the needs and expectation of our customers. When it comes to AI, AI is not just a technology.
It will be very superficial to call this a new way of doing business literally, and for us and for everybody to really fulfill in full extensively, you really need to invest in a number of topics so that you may really make use of this technology the best way possible. We do, we may rely on important resources such as the people I spoke about a moment ago, so all of our young specialists taking care of data management as well as IT devices. We do have data, lots of data. This is not enough to actually apply AI-based algorithms because it is important for this data to be organized and structured the right way so that we can use it.
There is an awful lot of work behind the organization and use of data which we capture from black boxes and from our customers underwriting because we actually want to be able to make use of that all along the value. I have to say that we have started with a gradual process. We do develop use cases from time to time with the objective on the one side to make sure that the investments we made are transforming into returns, are turning into returns. Also, we want to be able to potentially change our operating models so that this project can really become deeply grounded and rooted in our company. This is something we're doing throughout. We started from claims with some little verticals and then we worked on sales.
We developed Chatbot in Unisalute and Unipol Sai and then decoding automation, which is something that our IT people are now working on to speed up the coding. Of course, all of this will further accelerate over the next three years so that we may become more efficient from an operational standpoint and more effective from a sales viewpoint. Okay, let's now move to the financial components. Of course, this is AI. It goes on AI as well. Let's say that the most important component here is very much human capital. Being able to assess the opportunities that financial markets can deliver can present. We do experience a lot of uncertainty nowadays from a geopolitical viewpoint. Also, along with that, there are many opportunities out there. There have been, there has been something happening in the euro zone.
German rate has increased because of the EUR 1,000 billion plan that Germany has recently launched. This is for us an opportunity because it generates value to all of the copies, which was not accessible up until a while ago. It is slightly below 3% nowadays. Considering what is happening now, we may literally diversify our portfolio throughout Europe and that allows us to improve our yield but also to minimize capital absorption which comes from financial. A more diversified portfolio will lead to less volatility in your assets. Meanwhile, it allows us to develop the AOPA curve that allows us to be aligned between assets and liabilities and reduce the volatility of our solvency ratio accordingly. Let's say that when it comes to the financial aspects, there are these two aspects.
Risk yield profile and of course the objective to further reduce the capital absorption. We will still carry on in investing in alternative assets, which is a kind of a residual component in our portfolio. We are talking about EUR 4 billion, approximately EUR 60-EUR 60 billion of overall investment. Yet it brings a very remarkable profitability, which is something that of course we want to tackle and further improve. We will reduce debt and this will come out as a result, a runoff result of our senior bond portfolio from Unipol because we do not really need to go for senior. Those EUR 2.5 billion, actually one came to maturity a week ago. That EUR 1.5 billion will be totally rainbow. Twenty twenty-seven and thirty. The objectives are those here that are sitting on the slides.
It is not that we do expect positive or negative outcome from stock exchanges and therefore we do not expect capital gains or capital losses over the years, but simply we just want to invest on coupons. When I say coupons, it is both coupons and dividends. Average production is 3.8%. It was 4.2% back in 2024, which was heavily impacted by rates that were higher. It goes without saying that the objective of finance is to seize market opportunities and should market outperform, it goes without saying that we will not just stop there in terms of reaching out to the goal that is displayed on the slide.
In terms of life, you can see an increase of the back book of the portfolio. The comprehensive yield, and this is due to the fact that new investments are carried out within 3.5%-4% on the last life business. You know what happened in the past. I mean, rates have been negative for 15 years. Yields will go up. A big, big chunk of this yield, let's say, improvements, will translate into a better profitability of the life business. You know, it is a little bit less important in terms of size versus the non-life, but of course it gives, if you will, stabilize to the volatility of the profits in the next years or so. Before I share with you results, I mean, some numbers. Let me share with you briefly a couple of keywords on sustainability.
Yesterday only post board directors approved the business plan, but also the sustainability plan for the next three years. We decided to have two separate plans, even if, let's say they are very. They say, similar to each other in terms of executing actions. Now the plan is based on the four main drivers, driver number one concerning climate change. The support and help that our group wants to offer in order to reduce the consequences of climate change. You know about the hydrogeological risks of Italy. Of course, there's a long discussion on the mandatory Nat cat policies. This debate is very important in our country, together with all the actions that Enrico has just summarized in his presentation on the settlement model of Nat cats.
Of course, we would like to speed the assessment of the damage and prioritize the payments or the settlement, if you will, on the companies being very vulnerable. Building products and services which are natively oriented to favoring the resiliency from companies and organizations to climate change. Once again, risk management and many other topics that may be useful to prevent damages. We will allocate more than EUR 600 million as see up to natural catastrophes. This is a big number. This would be made available to our customers who would like to get insured with us, especially after the obligation that will be in force, I guess, if I'm not mistaken, starting March 31st. In a few days this will become mandatory. There's also a second area concerning health or welfare, the protection of Italian citizens against aging.
You know, this is what Enrico told you about, the very modular Salute Perte offer, which is what he talked about earlier. We also have the need to strike a balance between prevention on the one side and protection on the other side. Now, this is built into Unisalute's product concept. We need to make an effort in order to favor developments in the banking channel together with the agency channel. Once again, we will sell more welfare policies. The target is to have more than 16 million services, which is what we would like to do in the next three years. In terms of Sant'Agostino medical centers, I mean the centers we own, the service level will be more than 75. The second point, I am talking about the environmental transition. This is the big world of telematics and the use of the green box.
I'm really talking about green box, no longer a black box. The reason is we would like to favor, let's say, less pollution. We will decrease pollution from our customers. We can do this thanks to a better use of their cars. Based on the mileage we will calculate the renewal pricing. We will encourage people to use their car for less time. In terms of rental services, we can also have contracts and agreements with pre-owned cars. We want to use new material, new cars, so no new pollution. We will also have the transition to net zero. This is one of our latest programs. This is to encourage positive green behaviors to favor climate transition. Last but not least, we have people. When I say people, I mean skills and technologies.
Now the key target we have here is to comply with scope one and scope two. Minus 63% within 2030, - 50%, this is scope three. Indirect investments within 2030 and we would like to reach 40% of high social environmental content products. We closed 2024, we reached the target, so we exceeded 31%. There is still a long way to go. As for the last point, you know, business driver concerns, if you will, investments in technologies, artificial intelligence training and education for our partners and employees on new technologies. There will be plenty of investments. I mean you can see here 170,000 training hours. This is important. What is even more important is the quality of training that we will deliver to all of our employees. This is it. Driver number five. There is nothing new here.
I mean I'm sure you are familiar with those numbers because this is what you can read in our communique. So in the press release. You can see here the, well, average growth premiums which is 4.9%. You can see here how much we grow in motor, not motor, and health. You can see here the combined ratio reduction by -1.6%. This is a very important number. Let me tell you more about this. You know numbers are important, of course they are significant. We have to pay attention to the quality of our results. We will reach all of those targets which are really, really ambitious. We can do this thanks to our strong improvement of the industrial component. We will cut down on combined ratio.
Of course, even the life business will bring about a growing contribution to the group profitability and a smaller contribution from the so-called financial management versus, I mean, the results we had in the last three years. The quality profile of profits is now better than the profits generated by financial management. Financial management is highly volatile. It may not happen again. You can see here the 2025-2027 consolidated net profit EUR 3.8 billion, and you can see here EUR 3.4 billion. This is the group net profit. These are our two key targets. We can also include some yearly average of earnings per share. 13% EPS CAGR 2027, this is the shares, and 10% as for DPS, so the dividend per share, very ambitious targets. I know.
For the first time ever we also unveiled the capital generation profile which is what you can see in this slide. Now our company has the possibility to create organic capital generated by, I mean, the industrial business that we manage, which is a very important point. Once again, EUR 2.7 billion between 2021 and 2024. This is what we've done. We will reach EUR 3.6 billion in the next three years. This is of course with the target we have for 2027. Enrico talked about business development. We will need EUR 400 million capital absorption. We are left with EUR 3.2 billion net organic capital on which we can pay dividends, EUR 2.2 billion. Once again we have organic excess capital capital generation by EUR 1 billion.
Once again this is our perspective and in the future we will experience an improvement of the wealth profile of the group and considering unchanged financial parameters. Please don't forget we are now in a situation where the spread in Italy is 110. Equity markets in Europe are very close to their maximum levels. The situation is very good from the financial point of view, it hasn't always been lighter. That EUR 1 billion is a sort of an additional potential buffer so that we can take up future challenges. We also have the possibility to consider new opportunities in the future because we can count on a sturdy, robust capital structure. This is what we need to really understand, this kind of, you know, a capital situation. Now, to wrap up my presentation, let me share with you some closing remarks.
Now, in the last plan, but also in all the previous plans, I mean, you know, we have had a very strong track record. Also in the previous plan we've been able to hit very important targets. You can see by the way the performance of our shares, which is an excellent one. Once again we think there's plenty of unexpected, pressed, untapped value and we would like to bridge the gap thanks to all the actions Enrico talked about, first and foremost, all the business we will have. We would like to improve the technical profitability level on the life and non life business lines. Risk based approach. We will, let's say, manage the business in a faster way. There will be huge investments on operating models and the key target for us is to become an omnichannel company.
When you go omnichannel, it means that we have to, you know, prioritize our distribution network. We'll also keep investing on our bancassurance business line. The main target there will be to further develop our productivity level in the bancassurance channel. As for the, I mean, operational model, if you will, there will be new technologies, plus the help of artificial intelligence, of course. They will turn into a very important driver to help us hit Unipol's targets. Now, all of this means that we will generate an acceleration in terms of profits and dividends growth, which is what we want. Hopefully we will be able to bridge the gap that's still characterizing us versus our peers. Okay, you can see here the third bullet, which I have already commented, including the fourth bullet. Okay, presentation is over.
We can now start our Q&A session. Thank you,
[Foreign language]. Good morning, ladies and gentlemen. We are now ready to start the Q&A. We will get questions from financial analysts and institutional investors. Just one second, please. Once again, there will be questions from this room together with questions from those not being here in the room. Q&A. This is the email address you need to send this question. Please introduce yourself, first name, family name, and the company you represent. Matteo and Enrico, please join me here on stage.
Good morning, my name is Casey from ABS Consulting. You have done something exceptional. You have been very determined, very resolute. We are absolutely thrilled. You have shared with us an incredible plan which is really, really very interesting, and we are very confident.
We are sure you will keep doing what you have been doing so far with plenty of determination. Of course, we cannot forget one point. We are now sailing in deep waters and we are in Italy. Now, Italy has some criticalities which are very deep, very strong. It is really a difficult domain to sleep at night, for example. I have a short list of criticalities because I see a very stormy ocean. Demographics. I mean, we lose 300,000 Italians a year. Considering this context, we fear that may be an even stronger demographic problem. We have low salaries for many people. This is very close to survival level. We have huge public debt, our GDP growth is mild, our industrial structure has a low technology penetration rate, and the list may continue.
If we had to identify Unipol, I may say you are just like a salmon. I mean, you are, you know, swimming upstream. You know what salmons do. We are now navigating or sailing in this very difficult ocean. Let me wrap up by telling you something so simple. We have an incredible determination. We are so resolute. We have incredible, incredible skills. You have been able to deliver exceptional results. Can we go international? Can we step out of the country? Can we look for another river and another sea which is a little bit easier than the one we are sailing in right now. Thank you,
thank you so much for your points. I know our country's problems very well. We play our role. We are an insurance company, aren't we?
We just, you know, will offer our own contribution to try and solve some of the criticalities that you have listed. Among those, demographics is a key issue, which is the first point you touched upon, and the need, you know, to have the right, you know, healthcare services. We need to find sort of perfect combinations between public and private systems so that the entire system can benefit from some savings. I'm not just talking about the private interests of our own company. I'm not talking about remuneration concerning what we do. I mean what we believe in is a beautiful combination between public and private efforts. Of course, I'm talking about healthcare services and whether fair service system. This system has to be very well structured, very well organized.
Once again this kind of combo will turn into huge advantages for the entire so-called country system because the public system now is no longer able to be as universal as it was in the past. Another key area is represented by the hydrogeological risk level in our country. We are definitely underinsured from this point of view. I mean we are familiar with this and the situation has been going on for decades now. You know that if you are able to increase the level, the penetration of insurance systems, this means that the country is so ready to react to the consequences of a natural catastrophe. For example, GDP going down after the events together with the possibility of, during our recovery after the event. We have been shown that a high insurance company has, I mean, a bigger reaction capability or strength.
Once again, we need to bridge the underinsurance gap in our country. This is one of the key interests of our country. We have to make sure we can do this once again. We have to help the country do this now in terms of Nat cat policies. I know this topic is a huge step forward for the country, but we still have a long way to go to bridge the gap that we have as compared to many other countries. You mentioned many other topics. For example, our contribution may be done in terms of reducing public debt, of course. We will not be able to, you know, to cover all the other topics you mentioned. You also mentioned the words internationalization. We are an Italian company, we just have some stakes in Serbia. We've always, I mean, concentrated, you know, our core business in Italy.
I have to say that in our plan, as you see, you must have seen, we will keep doing this. We keep saying that we need to keep an eye on opportunities, you know, coming from foreign countries. Maybe you remember we had a specific organization, maybe you remember, you know, we had a holding company there, we had an operating company. This was our structure. Just because we wanted to be very flexible so that one day we may have had taken advantage of other possibilities. We cannot do much in Italy. I mean, we are market leaders. Of course, again, it goes without saying that, you know, we are maybe interested in, at least exploring what is happening out of the country.
We have to have the opportunity to do this and, you know, this is something that has never happened before, but, you know, never say never.
Good morning, Mediobanca. Three questions, one on dividends. Matteo, we've always been very clear in saying that 100% of cash flow is cut to the dividend policy. My question is, if for whatever reason there was a ban on the dividends to banks, may we confirm that insurance cash flow may offset the EUR 2 billion of dividend? So there's capacity to cover dividends even in the event there is no cash flow coming from the two banks. Second question on capital generation. EUR 3.6 billion out of five SCR corresponds to approximately 20 points. That is even lower than the four peers you announced in your presentation. My question is where is the gap versus peers which are close to 30 points in capital generation? I believe that the life is still very much exposed to branch one.
Are you happy with the dispositioning or do you expect a more profound penetration of life? Last question on national catastrophe. Enrico explained that the targets will also include normalization of the Nat cat events. Can you tell us how much you budgeted both for motor and non motor in the targets you have communicated? Thank you.
On dividends. If you have EUR 100 of cash flow, of course you cannot pay more than EUR 100 in dividends. Your question is, what if the bank stopped paying dividends? Are you still able to pay out dividends? First of all, we're talking about a very unique and extreme edgy case scenario, but never, I would say that when I make my estimate, I do commit to our shareholders and I do commit to our shareholders in terms of what we can manage independently.
Insurance, life, no life and beyond insurance. Now you're mentioning a very edgy case scenario in relation to which we're absolutely able to commit and fulfill our commitment. Of course banks are important, they do participate, they play a role in building the results of the insurance group. We do not depend exclusively upon the decision on dividends from banks for us to then commit or not commit for our shareholders. You're obviously mentioning a very edgy case scenario which I do hope are not going to happen. If there's a ban on the bank, I would probably expect the same ban happening on insurance because usually what they do on banks, usually they do it again one month later on insurance. That is my feedback in terms of your first question.
We do very much rely on the insurance space gap versus competitors in terms of capital organic capital generation. Our life model is strongly oriented onto the traditional components where the peers you see in those other countries, they do have a much greater component in life where of course with a different repeatability. The bottom line is not so much you build the product, but it is more about how you distribute. If your distribution network is made out of agents, you cannot base your sales strategy on distribution of uni links standalone because you can expect an agent to sell something that the agent does not have the skill to do. It is like asking a financial advisory to sell policies. You know, they try to make it but no success or poor success.
Whereas on the bank insurance, this is definitely something that we may work on and that we're working on as I speak. On deeper results are very reassuring in terms of placing branches, three policies. Our gap versus peers very much depends upon the perception that the market has of these very peers versus our ability. From my perspective at least, our ability, which is definitely undervalued by the market, in terms of how we can generate value and capital. I will need Enrico to actually answer your question. Third question.
I would start by saying that the impact of a Nat cat is based on our risk management internal model. This is quite important.
It is not a common sense report, but it is something that is completely consistent in terms of what we do when we calculate SGR as well as what we, let's say what we then come up with policies and so on. This very much comes from what we have spoken through in our presentation. Of course the assumptions are still very cautious as it is our tradition, especially considering the closing of 2020, the order of magnitude is perhaps another EUR 100 million on top of what we had in the prior plan.
Good morning, my name is Davide Perini from Intesa
Sanpaolo, I would love to focus on the improvement of combined ratio show for motor line of business as I understand there's five points of improvement and I would love to understand what are the assumptions in terms of pricing, volume and also on the claim settlement. What kind of improvement do you actually expect to deliver based also on all the actions that you have shared and how the new unit table will actually impact on these expectations on this acceptance and then potentially a follow up with respect to the answer you just shared on the Nat cat. It has become mandatory to include the natcat and I would assume that you're taking that into account when allocating an additional EUR 100 million. All right, is my assumption accurate?
Okay, your first question. Combined ratio for motor line of digits.
First of all let me say that IFRS number from consolidated combined ratio 2024 includes a runoff component which was particularly, particularly lower, much lower with respect to the one from prior years and lower as well than the one that we expect in a kind of a normal situation, so to speak. That said. In 2024 of course we have very much abided by the tables provided by the court of Milan and that has led to an increase in terms of average cost claim and clearly that includes and absorbs the effect of what I've just mentioned and it also allows us to work for us to adjust prices so that combined ratio can become positive.
Looking back you probably remember the big impact of inflation in 2022 and 2023. We've been among the first very much taken action on pricing and the average premium in 2023 has increased by 10% which is quite a significant number. Of course the tables from the quarter Milan were being delivered and we still reported an increase by 4% in 2024. What we expect over the next three years is totally consistent with the inflation type expectations that Matteo spoke about. We'll be just catching up with inflation on the average costs as well as the dynamicity of the average premium considering a constant volume within the portfolio. Nat cat, of course we made all of our assessments and of course the plan also includes the in fact claims that might actually come from a Nat cat development for enterprises which is not starting from zero.
Medium sized and large sized enterprises, of course they do have an insurance policy for flooding and earthquake. Even more so, that is included in our numbers.
Okay, there is now a question from remote Alessia Magni from Barclays.
Now the question is on solvency. In the past we've always had a specific target range for solvency as the staff included the plan. Do we maintain the old range? If not, why haven't you defined the range? Question number two on the dividends, what are the upsides you expect on the total dividend after the merger between BPER and B P di Sondrio? The third question is on combined ratio. What about the budget for the Nat cat you considered in the plan? Enrico has already answered on capital generation. There was an update of the question. Let me check. On top of dividends that we will pay, what are you going to use this capital for? In the case of is the group interested in the life or non-life business? Is this going to be in Italy or abroad? If abroad, where?
Okay then, thank you so much. Now question number one, solvency. We do not have any target for a very simple reason. There was a disclosure on capital generation. It goes without saying that we start, I mean from the foundation we have today, which is 212%. Of course we would like to build and create new capital over the years. Of course this is based on a key condition. Financial parameters would stay unchanged. I mean, we do not expect, you know, big changes in terms of the financial arena. I mean, you know, increasing or decreasing solvency. This being said, and this is what we have already stated in the past, in the past that we had the comfort range between 150% and 180%. Today we are exceeding 200% and, anyway, we keep thinking that maybe over 200% gives us comfort.
This is our point of view. Again, this being said, we do not have triggers. I mean, we do not have levels below which we make specific automatic decisions. We will never do this. Of course, we have a steady monitoring of our solvency level and this is what we update every time there is high volatility on the market. The reason why we have not delivered any range is that there has been a leap forward in terms of disclosure on capital generation. I am sure this is much more useful for you so that you can really, really understand how much capital we are capable of generating. As for banks, no, no specific assessments and no synergies. We do have some standalone ideas for BPER Banca, but also Banca Popolare di Sondrio. No such assumptions, no boosting of dividends following any potential operation that is still due to start.
Once again, no new plan assessments. No, I think I've answered the question number three. Let me take question number four. EUR 1 billion capital allocation may be used to consider solvency. We can, you know, set off this solvency by generating organic capital. Or we may also take into account other opportunities. This is, you know, what you refer to in your question. We do not have any specific orientation. I mean, we cannot say Italy, no Italy or life or non life. I mean we have to consider every single opportunity. We analyze every single opportunity and then it could be a yes or it could be a no. Now of course, if we have enough capital, you know, available, of course we can do this. We can also use it in many other ways.
I mean, maybe at the end of the plan, if we have plenty of capital at the end of the plan, you may also consider to distribute. I mean this is something that we will decide throughout the three years.
Back to the in room questions. Andreas Posti and Andrea Visi. Good morning. Vigas Posti from Banca Akros. I have two questions of capital excess just to complement the previous question. What about the asset management. So this is kind of trendy today. Do you think you may want to invest in asset management? Question number two. It's on the car industry digital channel.
You talk about, if I have understood correctly, you talked about developing the car business to be developed also in terms of digital systems. Any, any ideas? You say this is trendy. Let me repeat the sentence from one of our colleagues.
We are just like Samus. I mean we like, you know, swimming upstream. Asset management, I know it's an interesting business. You may do this provided that you have the right distribution network. You have to have the right distribution network, the right agencies or financial consultants. Sorry, which we don't have today. You know, a banking distribution network that's ready to distribute financial products. We have a network made of agents. If you, I mean, investing in asset management, it doesn't have any industrial meaning. Maybe the only exception is that asset managers have to have their own distribution network that we may leverage. This is an opportunity that actually we haven't considered because I mean, we haven't, you know, found any such opportunity. Opportunity on the market. This is something completely different versus our typical business which is insurance.
As of today we keep focusing on this business. What we need is a distribution network. We have to look for, for example, I mean, you know, purchasing, you know, businesses for which we do not have any distribution effort. As for the, well, multi business and digital offer, the digital offer in Italy started 30 years ago, but market shares are not very big. Anyway, it is a very competitive situation that we have. This gives us growth opportunities, especially because rates of tariffs are going up. Linear is our direct company. They have really understood the Unipol philosophy, which is the one we have implemented this morning.
I mean, we have a major, you know, focus on underwriting, right pricing, and we've been great because once again, we've been able to grow in terms of size plus to generate profitability, because in this market this is really difficult. In the next plan, this activity just continues. We will keep growing and of course we will also keep improving our industrial results. Now, on top of this purely digital business, I mean, big, big news that we have shown you this morning is the Omnichannel system. As of today, just like many other traditional companies, on the website you can, you know, get an offer and you have to go to the agency, have an offer, and then sign the policy. This is already, if you will, generating quite a large volume of business.
The big, big leap forward is the fact that the process would be a continuous one with no discontinuation. For example, maybe you have a customer, he or she is very happy of that offer and the customer can purchase it right away. If you want to move, you know, from the digital channel to the agency channel, this kind of, you know, service will be strengthened by the new CRM and the new technologies. Again, I'm sure some of the growth we talked about this morning will come exactly from this business.
Andrea Lisi, please go ahead.
Good morning, Andrea Lisi from Equita. Question number one. I'd like to know more about the consolidated profits in 2024. Consolidated profits with EUR 1.12 billion, highly impacted by the depreciations, revaluations and positive elements like big capital gains and realizations, together with the group's financial results.
Considering the average level of profits, once again, EUR 1.27 billion. What about the evolution of these profits? What about the curve? Will there be a big jump in 2025 versus 2024 then going flat or a progressive growth? Same question on DPS, you already told us something about this. Anyway, what are the main prudential drivers that you have implemented when defining the plan? The third question is, what about the Beyond the Assurance program? There was some loss there. What will happen to this program at the end of the plan?
Question number one, you have to imagine three big steps. In terms of a linear progression with three steps from 2024 to 2027 in terms of profits, but also in terms of dividends. In a nutshell, this is the.
You know, my answer in terms of being prudent or cautious. Yes, but in terms of underwriting, I mean as Enrico said before, we need to pay attention to natural catastrophes and they are bigger than 2024 because 2024 was quite a good kind year. As Enrico said before, from the natural catastrophes point of view. There's another assumption, as I said during my presentation, is on investments. We foresee production of coupon flows. This kind of component is a residual minor, so it is not major in terms of building profits in 2024. As you said, the capital gains have been quite high, so exceeding EUR 200 million. Now of course you cannot think that this one-off extraordinary financial result we had in 2024 following very positive financial markets may happen again in the next three years.
As I said before, finance, if you will, in the past 15 years has shown that it has always hit the target and in some cases exceeding the targets. It all depends on the financial context around you. If the context around you is difficult, for example coins, maybe you remember what happened. I mean all the markets dropped fixed credit shares, equities. It was difficult, I mean to be positive in 2022. We managed to do this in 2022, of course, much less than 2024. Other, let's say prudential actions. You use this word, but I'd like to use the word assumptions. I do not see anything else. Third question on the beyond insurance program. Let me talk about the most important items. Unipol rental 4C's profits from 2025, so a linear growth all the way to 2025.
As for Sant Agostino clinics, the situation is the same. They are flat, I mean sort of break even. Just a minor profits in 2025, there will be growth all the way to 2027. Unipoltech, they work in telematics. This is basically, you know, the black box plus the Unipol Move. In the plan, as you have seen, they will merge. The HAM Telematics in this case, beautiful profits. Unipol Move is not active because, of course, we are now investing in the commercial development. Starting from 2026, next year, Unipoltech as a whole will produce profits if I'm not mistaken. Unipol Move, standard oil will go break even in 2027. We do not expect to have drags from this program. Now, of course, in terms of size, you cannot compare this with the insurance business.
Of course we won't see what happened in 2024 either.
Advertising thank you. I do have a few questions as well. Back to dividends. Have you spoken in the board of directors about a potential interim dividend or using excess capital, the EUR 1 billion. If that is the amount, then would that be possible to consider a buyback plan which is something that the group has never really done in the past and which is something that you could. Competitors are increasingly introducing banks mainly. Second question is around the dynamic of staffing costs and considering this plan, I understand you have new hires in your forecast and what is the amount that you expect to allocate consideration considering your targets. My third question is on UNA Hotels. We read on the newspapers, but we also heard from the call, from the conference call that there is an hypothesis of transfer.
I'd love to know what is the price that is potentially going to be a pay whether or not this is going to be fulfilled and would that perhaps then deliver an excess capital that hasn't been catered for in the plan yet. Thank you.
Question one, our bylaws actually do consider an interim dividend. We have never really discussed in the board but yes, it is a option. It is a possibility that we might consider buyback. We have studied the buyback several times and to be honest, the idea of using capital to purchase stock as opposed to using capital for entrepreneurial activities, developing core benefits business namely or maybe considering acquisitions of assets, that is an hypothesis that yes, we've considered and studied but never took into serious account.
We're happy to pay through cash flow and we believe that that is the best way to actually pay our shareholders. In terms of staffing cost, the average projection is 1.5% fully aligned with inflation. As I said during the presentation, we've made several investments to bridge the gap to, let's say, for people to retire, maybe bridging that gap, which is something that we're happy to invest into over the next three years. We have of course allocated amounts to cope with this scenario. The payback of this four and a half year initiative might actually be seen later on. The benefits might actually be understood later on. The moment we do stop accruing costs for that specific fund, who now tell you talking about prices? No, there is no price that has been shown.
I mean the press is not informed about price. In our plan we haven't considered, we've been very cautious, we haven't included hotels because we're right in the same where we are considering all of the options either to keep it, to provide a, to generate more value or to do different things. In our plan there is, you will not see, you will not see any residual income in that owner pays to host the hotels. There is a financial, there is a financial amount that does not consider either capital gains or losses because we've been very cautious on that. Should we not consider to sell the hotels, which is possible because to date we are in that phase, no commitment and we haven't really committed to anybody in doing anything.
We would just simply include the hotel, the business of the hotels in the plan or should we consider to transfer and sell? You will see the accounting consequences in our plan, but not economic consequences because that have been taken away from the plan already. I have not said it, but there might be follow up questions and nobody is asking questions from a remote connection.
Alberto, a couple of follow up questions. Can you give us a general understanding in terms of the three year release ratio that you expect in the life and the second is around Unica the new product. Do you have any specific targets in terms of volume? I would love to understand whether it is more a product for agency to benefit agency or maybe bancassurance.
What profitability expectations you have when you sell, when you sell this, when you sell coverage, it's through this product. First of all, the most important thing on CSM release is that within the plan we do expect to be much greater in terms of new business versus what is being released now. The order of magnitude in terms of the release versus the CSM stock?
It can be a bit lower than 10% roughly. Volume targets for Unica. First, let me say that Unica, yes indeed is for our agency network as well as for our digital channels in an integrated fashion, not for bancassurance. Once we complete roll out all the relevant adjustments and so on, Unica product will replace the full range of Unipol retail. New multi policies in 2023, six will all come out of this new product.
Just to give you a general overview in terms of the benefits that we expect, which is actually quite an interesting component on retail and motor, that is tied to this omnichannel opportunity. You know, those customers who make their quote on the Internet, for many different reasons, they forget, they will not go to the agency. That lead does not turn into a policy. We want to leverage the conversion rate, of course. As all of our agents will seize all the opportunities, the aim is also to benefit from cross selling, broadening up the existing coverage that they sign up for.
Thank you. I am also taking advantage of the follow up. I am asking for confirmation. You said that you're considering accruals for the incentive plan for retirement.
The EUR 3.8 billion cumulative include that effect, ROI will be higher, right?
Correct. Correct. There's another question. Thank you.
Holding. Holding does not exist anymore. The parent, the parent company. Cash flow is 3%. Out of EUR 60 billion after we pay the bond. The cash flow is at 3%. We are also having 50 million shares that can be transformed in a blink of an eye. Therefore there's no issue in terms of liquidity. Because we're paying out EUR 600 million of dividends in May. Of course we do have quite a consistent cash flow and that is quite normal for an insurance company. Though the question was not spoken through microphone, unfortunately. End of plan. We have shown 0.8% liquidity. EUR 60 billion. We're talking about EUR 500 million-EUR 600 million.
Again, we do not actually use that logic. We do not actually use that matrix. We work on stock that can be converted right away, which to us is cash, is liquidity.
Any more questions? No more questions. Okay. Matteo, would you like to say a few words for closing?
Thank you so much for attending and wish you all.