Consolidated results as at 31 December 2022

Premium growth of 69.5% vs 2021, with Group Solvency II ratio of 269.3%.

-Gross premiums written € 131.4 million

- Adjusted operating profit € 13.9 million

- Net profit € 5.3 million

- Adjusted net result of €10.8 million

- Group Solvency II ratio 269.3%

- All strategic projects planned for 2022 successfully completed

Verona, 9 March 2023 - The Board of Directors of REVO Insurance S.p.A., parent company of the REVO Insurance Group, approved today the consolidated results for the year ended 31 December 2022.

KEY INDICATORS

- Gross premiums written of €131.4 million, up +69.5% compared with FY 2021 (equivalent to €77.5 million);

- Further profitable growth in the Suretyship class and simultaneously greater exposure in terms of the business mix vis-a-vis the new lines (44.3% of total premiums compared with 23.0% in 2021);

- Excellent technical profitability, with a total loss ratio1 of 24.7% compared with 14.3% in 2021, consistent with the medium-term expectations of the Plan;

- Implementation of the investment plan totalling €7.1 million, with a focus on developing the database necessary for the underwriting business and the launch of the proprietary OverX platform;

- Positive contribution from the investment portfolio following a precise management strategy, in an environment of rising rates, focused on maintaining particularly low durations and high geographical diversification;

- Consolidated net profit of €5.3 million, despite investments and costs - including one-off costs - incurred for the launch of the initiative. Consolidated adjusted net profit was €10.8 million, with a flatter j-curve than projected in the plan;

- Capital strength confirmed at levels of excellence, with a Group Solvency II ratio2 of 269.3% capable of ensuring the future development of the Group in accordance with medium-term targets.

Alberto Minali, Chief Executive Officer of REVO, said: “The excellent 2022 results confirm the ability of our team to implement the business plan communicated to the market and highlight the model of technical excellence that REVO represents for the Italian insurance industry, making it a candidate for the role of benchmark player in Specialty risks and parametric risks, alongside SMEs and professionals.

STRATEGIC PERFORMANCE

During the year, all the strategic objectives announced to the market were achieved, and specifically:

- Authorisation to operate in the new regulatory classes (necessary for the development of the Speciality segment) and under the FPS scheme in most European countries was obtained from IVASS;

- Launch of the first parametric insurance cover in the Agro and Business Interruption field, including through the use of blockchain technology, confirming a growing and increasingly tangible interest on the part of the market in next-generation insurance;

- Implementation of the proprietary OverX platform, a pillar of the REVO project and enabler of process innovation and speed of service to intermediaries. OverX offers the opportunity to structure insurance solutions tailored to the specific coverage needs of customers, allowing underwriters and brokers to rely on a simple, scalable and flexible interface, rich in information and data that can be used in underwriting

- Significant expansion of the distribution network, which at the end of the year comprised 53 brokers (16 at 31 December 2021) and 116 multi-firm agents (100 at 31 December 2021). In this environment, we launched REVO Underwriting, the Group's MGA, which is also instrumental in the assignment of new brokerage mandates involving specialised brokers and third agency networks;

- Recruitment of key figures in all corporate functions (+53 people), particularly favouring the technical-underwriting, pricing and data analysis areas, with the aim of further expanding the Group's range of expertise;

- Formalisation of a welfare programme and an MbO plan for all employees and allocation of a major LTIP stock incentive plan for key personnel, to promote full alignment of the interests of all stakeholders;

- On 21 November 2022, the conclusion of REVO’s translisting process on the Euronext STAR Milan regulated market. Just one year after the completion of the business combination, the simultaneous reverse merger between REVO SPAC and Elba resulted in REVO Insurance.

It should be noted that during the first weeks of the year REVO’s Board of Directors approved the 2023-2026 rolling plan, which confirmed medium-term targets.

REVO is also awaiting authorisation from IVASS to operate in the legal protection sector, a business line in which the key personnel who will oversee its development have already been recruited.

ECONOMIC PERFORMANCE

During the year, gross premiums of €131.4 million were recorded, a significant increase compared with the same period in 2021 (+69.5%). The following factors contributed to this result:

- Launch of the new business lines - Specialty and Parametric - following authorisation to operate in the new classes by IVASS on 29 March 2022;

- Conclusion of new brokerage mandates with brokers and agents, expanding the distribution network and strengthening commercial relations;

- Entry into production of the OverX platform, a business enabler thanks to the flexibility of structuring products and simplicity of connection to the computer systems of third party operators;

- Offering consisting of tailor-made solutions calibrated according to the actual insurance needs of the market;

- Long-term commercial relationships developed by the underwriters who joined the REVO team.

At 31 December 2022, the business mix showed greater diversification in favour of other business lines, fully confirming our objective of becoming a company with a significant presence in all specialty segments by 2025, with a fully comprehensive service offering to SMEs and professionals.

In spite of increasing exposure to other business lines, the Suretyship business increased significantly during the year (+22.7% compared with 31 December 2021).

From a technical point of view, the results are fully in line with the plan's expectations, with a loss ratio of 24.7% for the year, which is excellent for the Italian non-life insurance market. The increase compared with the 2021 ratio (14.3%) is linked on the one hand to the different business mix of the insurance portfolio, and, on the other, to the presence of some claims underwritten in years prior to 2022, and to the adoption of a more prudent approach in terms of reserving compared with in the past.

Under the recruitment plan launched in December 2021, higher staff costs of € 9.0 million were incurred than in the previous year.

During the period, IT investments of €7.1 million were incurred, most of which related to the building of the architecture and the OverX platform, as well as €1.5 million for the adoption of the new SAP accounting system.

The final statement of acquisition commissions and reinsurance fees revealed trends consistent with the development of the business recorded during the year.

The COR ratio4 for the period, as a result of these main trends, was 85.5% compared with 49.7% for the 2021 financial year. This change was in line with plan expectations.

There was a particularly positive contribution from the investment portfolio (financial result of €1.7 million compared with €0.9 million in 2021), attributable both to the gradual use of residual resources from the Elba acquisition and flows from new funding, and to the adoption of a strategy oriented towards the gradual investment of assets in tandem with the increase in market rates recorded during the year.

The amount for the year has a significant impact on the amortisation of the VoBA that arose at the time of the acquisition of Elba, in the amount of €3.9 million, the annual cost of which will gradually decrease over the next few years.

ADJUSTED RESULTS

Adjusted operating profit for the period was €13.9 million:

Adjusted net profit for the period was €10.8 million:

For illustrative and non-comparative purposes only, it should be recalled that the IFRS net profit of Elba Assicurazioni as at 31 December 2021 was €14.5 million.

The adjusted COR ratio5 for the period was 78.8% (47.8% as at 31 December 2021).

STATEMENT OF FINANCIAL POSITION

The following table summarises the statement of financial position:

In the area of investments, there was greater portfolio diversification, both in terms of asset classes and the geographical area of reference. In particular, the weight of the Italian government component at the end of the year was 51.8%, a further reduction compared with 31 December 2021 (65.3%).

Shareholders’ equity at the end of the year was €216.6 million, down slightly on 31 December 2022 (€218.5 million), mainly due to the value adjustments made to fair value investments with an impact on overall profitability (the change in which passed through equity amounted to €6.7 million) and the presence of treasury shares.

At 31 December 2022, the Company held 140,953 treasury shares in the total amount of €1.247 million, equivalent to approximately 0.6% of the share capital.

At the end of the year, REVO presented a Group Solvency II capital ratio of 269.3% (to be compared with the Elba Group ratio at 31 December 2021 of 271.4%), thus demonstrating its strong focus on balance and safeguarding its capital strength, even against a backdrop of strong corporate expansion and growth.

IFRS 17

In light of the adoption of the new IFRS 17 accounting standard as from 2023, the Group has estimated the impacts of its application on the opening (1 January 2022) and closing (1 January 2023) consolidated balance sheets, as well as on the profit for the period relating to 2022. The expected overall impacts are therefore moderate.

FINANCIAL REPORTING OFFICER

Pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, the Financial Reporting Officer, Jacopo Tanaglia, declares that the accounting information contained in this press release matches those found in company documents, books and accounting records.

The Company reports that the individual company and the consolidated financial statements as at 31 December 2022 will be made available to the public at its registered office and on the website www.revoinsurance.com in accordance with the terms and conditions laid down by current rules and regulations.

The results for the year ended 31 December 2022 will be presented to the financial community at 18:30 hours in a conference call. The numbers to be called are: +39 02 802 09 11 from Italy, +44 1 212818004 from the United Kingdom and +1 718 7058796 from the United States.

The results presentation is available at www.revoinsurance.com in the Investor Relations section.

The reclassified financial statements as at 31 December 2021 of the consolidated statement of financial position and income statement of REVO Insurance S.p.A. are appended below, with a disclaimer that the individual company and consolidated financial statements and related documentation and the Solvency II data have not yet been certified by the independent auditors, pursuant to IVASS Regulation No. 42 of 2 August 2018.