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Vittoria Assicurazioni SOCIETÀ PER AZIONI REGISTERED OFFICES: 20153 MILAN - VIA CALDERA, 21 SHARE CAPITAL:EURO 30,000,000 FULLY PAID-UP TAX CODE AND MILAN COMPANIES REGISTER NO. 01329510158 - REA NO. 54871 COMPANY AUTHORISED TO CARRY OUT INSURANCE ACTIVITIES PURSUANT TO ARTICLE 65 OF ROYAL DECREE NO. 966 OF 29 APRIL 1923

84th year of operations

2005 Annual Report

OrdinaryShareholder’s meetingof 28 April 2006

Please note that the original Report is in Italian. In case of doubt the Italian version prevails

THIS PAGE INTENTIONALLY LEFT BLANK

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(Notice of the shareholders’ meeting was placed in Gazzetta Ufficiale della Repubblica Italiana, part II, no. 62 of 15 March 2006)

The shareholders of Vittoria Assicurazioni S.p.A. are called for an ordinary meeting to be held, on first call, at the Palazzo Affari ai Giureconsulti, Piazza Mercanti 2, Milan, on Thursday 28 April 2006 at 10.30 am, and if necessary, on second call on Saturday, 29 April 2006, at the same place and time, in order to resolve on the following

AGENDA

1. Financial statements as at and for the year ended 31 December 2005; reports of the board of directors and board of statutory auditors; related resolutions; 2. Assignment of the engagement for the audit of the separate and consolidated financial statements and for the review of the half year report and for the other activities required by article 155 of Legislative decree no. 158 of 24 February 1998.

The documentation required by article 2429 of the Italian Civil Code and article 77 of Consob regulation no. 11971 of 14 May 1999 and subsequent modifications on the matters included in the agenda will be deposited at the registered office and Borsa Italiana S.p.A. within the timeframe provided for by relevant legislation, and made available to the pubic. The shareholders can obtain a copy of such documents.

The holders of ordinary shares who have requested and obtained from the intermediary depositaries the forwarding of a special notification to Vittoria Assicurazioni S.p.A. pursuant to article 34 of Consob regulation no. 11768 of 23 December 1998 can attend the meeting.The shareholders intending to intervene should request the intermediary to notify this to the issuer within two working days of the receipt of such request or within the period between the request and the day provided for by the by-laws for the prior deposit pursuant to point 2 of article 2370 of the Italian Civil Code, where this term is longer. Attendance at the meeting is governed by article 8 of Vittoria Assicurazioni S.p.A.’s by-laws.

The holders of ordinary shares which have not yet been dematerialised should give such shares to an intermediary beforehand in order for them to be included in the centralised management for dematerialisation systems, pursuant to article 51 of Consob regulation no. 11768 of 23 December 1998. They should then ask for the issue of the above certificates.

Board of directors Managing director Roberto Guarena

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4

Contentspage

Calling of the shareholders’ meeting 3 Company officers 6Powers 8

2005 FINANCIAL STATEMENTS Directors’ report 9Performance 14Life business 16 Claims, accrued sums, annuities and surrenders 16 Reinsurance 16Non-life business 17 Operating costs 17 Claims reserve 18 Claims settlement rate 19 Technical result (before allocation of revenues) 20 Reinsurance 22Commercial organisation 23 Overheads 24Investments 25Buildings 27Fixed-interest securities, investments and unit trusts 27 Bonds 29Personal data protection code 30 Company shares held by directors 30 Group advertising pursuant to article 2497-bis of the Italian Civil Code 31 Relationships with group companies and related parties 31 Performance of the first few months of 2005 and expected future developments 34 Allocation of net profit 35

Balance sheet 38Profit and loss account 50 Notes to the financial statements 59

Contents and format of the financial statements 59 Reclassified balance sheet 60 Reclassified profit and loss account 62 Part A: Accounting policies 63 Insurance technical captions 63 Investment captions 69 Other captions 73Part B: Notes to the balance sheet and profit and loss account 77 Balance sheet 77 Shareholders’ equity 95 Guarantees, commitments and other memorandum and contingency accounts 108 Profit and loss account 110 Tax schedules 122Part C: Other information 125 Annexes from 1 to 32 to the notes to the financial statements 135 Schedules attached to the financial statements 199 2005 financial statements of the Vittoria Formula Lavoro open pension fund 245

REPORT OF THE BOARD OF STATUTORY AUDITORS 275

REPORT OF THE INDEPENDENT AUDITORS 279

Summarised resolutions of the shareholders’ meeting 283

Company’s development from incorporation 284

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BOARD OF DIRECTORS

Luigi GUATRI Chairman

Carlo ACUTIS Deputy Chairman Giorgio COSTA Deputy Chairman

Roberto GUARENA Managing Director

Adriana ACUTIS BISCARETTI di RUFFIA Director Andrea ACUTIS Executive director Francesco BAGGI SISINI Independent director Tiberto BRANDOLINI d’ADDA Independent director Marco BRIGNONE Independent director Arnaud HELLOUIN de MENIBUS Independent director Pietro Carlo MARSANI Independent director Giorgio MARSIAJ Independent director Giacomo MOTTURA Director Edgar MÜLLER-GOTTHARD Independent director Luca PAVERI FONTANA Director Giuseppe SPADAFORA Independent director

Mario RAVASIO Secretary

BOARD OF STATUTORY AUDITORS

Angelo CASÒ Chairman

Giovanni MARITANO Standing auditor Livio STRAZZERA Standing auditor

Ferruccio ARALDI Substitute auditor Sergio VASCONI Substitute auditor

GENERAL MANAGEMENT

Mario RAVASIO Deputy General Manager

Enrico CORAZZA Central Manager Cesare CALDARELLI Central Manager Sergio GIOMINI Central Manager

INDEPENDENT AUDITORS

BDO Sala Scelsi Farina Società di Revisione per Azioni

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APPOINTMENT AND REMUNERATION COMMITTEE

Luca PAVERI FONTANA Non-executive chairman

Francesco BAGGI SISINI Non-executive, independent Arnaud HELLOUIN de MENIBUS Non-executive, independent Giacomo MOTTURA Non-executive

INTERNAL CONTROL COMMITTEE

Giacomo MOTTURA Non-executive chairman

Francesco BAGGI SISINI Non-executive, independent Giorgio COSTA Non-executive, independent

FINANCE COMMITTEE

Andrea ACUTIS Executive chairman

Carlo ACUTIS Executive Giorgio COSTA Non-executive, independent Roberto GUARENA Executive

REAL ESTATE COMMITTEE

Andrea ACUTIS Executive chairman

Carlo ACUTIS Executive Francesco BAGGI SISINI Non-executive, independent Giorgio COSTA Non-executive, independent Roberto GUARENA Executive Arnaud HELLOUIN de MENIBUS Non-executive, independent Giacomo MOTTURA Non-executive Luca PAVERI FONTANA Non-executive

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In accordance with Consob communication no. 97001574 of 20 February 1997 and given that the company by-laws establish that the chairman of the board of directors is the legal representative of the company for transactions with third parties and in court as are the deputy chairmen and managing director, to the extent established by the board of directors, the nature of the powers given by the board of directors (*), to be exercised separately, to

DEPUTY CHAIRMAN Carlo Acutis

and MANAGING DIRECTOR

is summarised below:

- Purchase, exchange and sell buildings up to a maximum of Euro ten million per transaction.

- Agree tender contracts, sign projects and contracts related to the company’s buildings.

- Purchase and sell, without a fixed ceiling, government securities or securities underwritten by the government, non-convertible bonds and similar equities and OEICs that mainly invest in bonds.

- Purchase and sell, give and take back shares, convertible bonds, investments in companies and bodies, units of OEICs and credit instruments up to a maximum of Euro ten million, reduced to Euro five million when the investments and divestments relate to investments in insurance companies or other companies with a business object directly related or instrumental to that business. The right to purchase and sell majority investments in other companies and bodies is reserved to the board of directors except for those transactions involving real estate companies within the ceiling of Euro ten million per transaction.

- Purchase and sell units of OEICs, excluding closed-end funds, that invest in equities up to a maximum of Euro fifteen million.

- Purchase and sell, without a fixed ceiling, debt securities and equities on behalf of the policyholders of the life businesses who bear the investment risk and those arising from pension fund management.

- Grant loans and financing up to Euro five million in all other cases, with the power to agree all guarantees, including mortgages.

The right to issue sureties and liens on behalf of third parties is reserved to the board of directors except for those for lease contracts related to the company’s normal operations.

* Powers assigned by the Board of Directors on 29 April 2004.

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Directors’ report

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10

Dear shareholders,

The eighty-fourth financial statements, prepared for your approval, show a net profit of Euro 20,330 thousand, up 14.3% on the Euro 17,779 thousand recorded in the previous year, equal to a ROE of 14.5% (2004: 14.2%).

The following were the main operations contributing to the net profit for the year.

Total premiums written rose 6.1% to Euro 551,202 thousand.

Assets managed relating to the life business increased by 6.1% to Euro 749,732 thousand. Direct life business premiums grew 5.0%. This result was achieved thanks to the productive collaboration of the agency network and good returns on the products sold. As well as low risk investments found on the market, the company’s financial strategy favours real estate investments acquired through the group companies operating in this sector, whose returns are extremely satisfactory for policyholders, as proved by the results of the separately-managed businesses set out below according to the relevance of assets managed:

- Vittoria Valore Crescente: gross return 5.03%; - Vittoria Rendimento mensile: gross return 4.52%; - Vittoria Liquinvest: gross return 5.86%.

Total premiums written in the direct non-life business rose 6.6% to Euro 432,416 thousand. The loss ratio and combined ratio of retained insurance decreased to 67.2% and 97.8%, respectively, from 72% and 102% in 2004.

Premiums of the motor business increased 5.3%. In particular, the motor property damage line of business rose 9.3%, which was achieved thanks to both ongoing commercial agreements and those signed during the year. Thanks to the acquisition of new policyholders, the motor third-party liability line increased by 4.4%. The rise in premiums is a consequence of the particular care dedicated to the affinity groups and the further strengthening of the commercial organisation through the opening of new points of sale. This was achieved without affecting the frequency of claims objective that the company achieved in previous years.

Direct other non-life premiums excluding aviation, marine, bonds and credit rose 10.1%, a result that was achieved thanks to the special attention the company paid to this area, which is considered strategic.

Premiums relating to aviation, marine, bonds and credit increased 9.5%. This growth, limited in comparison with the opportunities offered by the market, was affected by a stringent risk underwriting policy.

Overheads as a percentage of premiums fell from 9.7% to 9.3%, in accordance with the strategic objective to contain cost.

Investments totalled Euro 1,286,194 thousand. They are split between investments where the policyholders bear the risk (Euro 120,091 thousand) and where the company bears the risk (Euro 1,166,103 thousand). The increase over the previous year is 7.3%. Ordinary income on investments where the company bears the risk amounted to Euro 40,655 thousand, a 10.3% decrease.

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Shareholders’ equity of Vittoria Assicurazioni S.p.A. increased 12.2% to Euro 148,005 thousand.

Had investments in subsidiaries and associated companies (used as vehicles for transactions of a preponderant real estate nature) been measured using the equity method as in the consolidated financial statements, rather than at historical cost, the available portion of shareholders’ equity (thus excluding the portion allocated to the separately-managed life business) would have been Euro 24,999 thousand greater, as shown in the table on page 119.

As a result of the above, shareholders’ equity’s components increased from Euro 142,680 thousand to Euro 167,679 thousand which, compared to the required amount of solvency margin of Euro 82,709 thousand, leads to a ratio of 2.03.

Equity attributable to the shareholders of the parent, as shown in the consolidated financial statements, rose 21.1% to Euro 203,635 thousand.

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570,058

190,091

124,701

589,589

203,582

141,176

629,408

217,776

158,456

674,941

263,641

177,281

723,484

289,513

185,243

2001 2002 2003 2004 2005

TECHNICAL RESERVES AND AMOUNTS PAGABLE (net of the reinsuraces' share)

(in thousands of euros)

884,850

LIFE BUSINESSES

OTHER

THIRD PARTY MOTOR LIABILITY

1,115,863

934,3471,005,640

1,198,240

96,944

106,449

117,997

131,876

148,005

2001 2002 2003 2004 2005

SHAREHOLDERS' EQUITY (in thousands of euros)

13

Performance

A breakdown of premiums written in 2005 and 2004 split by line of business and their impact on the total portfolio is given in the following table.

BREAKDOWN OF GROSS PREMIUMS UNDERWRITTEN IN 2005 AND 2004DIRECT AND INDIRECT INSURANCE (in thousands of euros)

Change Percentage ofYear Year portfolio2005 2004 % 2005 2004

Domestic direct insurance

Life businessesI Whole and term life insurance 63,195 53,005 19.20 11.46 10.20III. Unit-linked policies 4,082 20,696 -80.30 0.74 3.99IV Health insurance 280 190 47.40 0.05 0.04V Capitalisation insurance 49,807 37,894 31.40 9.05 7.29VI Unit trust management 396 391 1.30 0.07 0.08

Total life businesses 117,760 112,176 4.98 21.36 21.60

Non-life businessesAccident insurance 24,277 22,636 7.20 4.40 4.36Health insurance 8,001 7,852 1.90 1.45 1.51Fire and natural events 24,010 22,611 6.20 4.36 4.35Miscellaneous damages 14,577 13,260 9.90 2.64 2.55Third-party marine liability 290 84 245.20 0.06 0.02Third-party general liability 24,000 23,102 3.90 4.35 4.45Pecuniary losses 9,339 6,373 46.50 1.69 1.23Legal protection 1,369 241 468.00 0.25 0.05Total non-marine businesses 105,863 96,159 10.09 19.21 18.51

Railway truck hulls 2 2 0.00 0.00 0.00Aviation hulls 3,252 2,266 43.50 0.59 0.44Marine hulls 300 258 16.30 0.05 0.05Cargo insurance 2,097 2,173 -3.50 0.38 0.42Third-party aviation liability 399 233 71.20 0.07 0.04Credit insurance 1 1 0.00 0.00 0.00Bond insurance 7,555 7,498 0.80 1.37 1.44Total special businesses 13,606 12,431 9.45 2.46 2.39

Third-party motor liability 256,783 246,007 4.40 46.59 47.38Motor vehicle hulls 53,254 48,807 9.10 9.66 9.40Support and assistance 2,910 2,246 29.60 0.53 0.43Total motor businesses 312,947 297,060 5.35 56.78 57.21

Total non-life businesses 432,416 405,650 6.60 78.45 78.11

Total direct insurance 550,176 517,826 6.25 99.81 99.72

Domestic indirect insurance

Life businesses 36 29 24.10 0.01 0.01Non-life businesses 990 1,413 -29.90 0.18 0.27Total indirect insurance 1,026 1,442 -28.85 0.19 0.28

Total 551,202 519,268 6.15 100.00 100.00

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The following charts show premium volumes and the portfolio mix in the last five years.

98,548

163,297

122,756

83,182

189,457

133,778

94,021

216,880

146,028

112,176

246,007

159,643

117,760

256,783

175,633

2001 2002 2003 2004 2005

GROSS PREMIUMS(in thousand of euros)

384,601 406,417

456,929

517,826 550,176

OTHER


LIFE BUSINESS

25.6%

42.5%

31.9%

20.5%

46.6%

32.9%

20.6%

47.5%

31.9%

21.6%

47.4%

31.0%

21.4%

46.6%

32.0%

2001 2002 2003 2004 2005

PORTFOLIO MIX

OTHER


LIFE BUSINESSES

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Life business

The products currently offered by the company cover all insurance lines of business, the savings sector (revaluable policies relating to the separately-managed business), protection (policies covering risks of death, disablement and non-self-sufficiency) and supplementary pension plans (individual pension schemes and open pension fund). The product mix includes unit-linked financial policies. None of the products offered provides for guaranteed benefits. Tariffs used comprise endowment, whole life and term life policies, both on an annual and single premium basis, fixed term policies and group tariffs for the whole life, term life and/or disablement policies.

Contractual terms are updated on an ongoing basis and are in line with the market. As required by ISVAP circular no. 551D, the company integrated them with the new prospectuses and posted them to its website at year end.

Premiums of direct insurance rose by 5.0%. Their breakdown by line of business is detailed in the table of premiums written. The increase is largely due to the growth in the single premiums of Class V - Capitalisation (up 31.4%) and Class I - Whole and term life insurance (up 19.2%). The returns on separately-managed funds during the year were as follows:

The rate of return allocated to policyholders complies with the specific contractual terms. As in previous years, acquisition commissions on long-term policies and incentives paid to agents for new products have been capitalised and amortised within the total limit of the related premium loading, in accordance with the expected term of the contract, over a maximum period of ten years.

Claims, accrued sums, annuities and surrenders

Summarised figures relating to direct insurance claims, accrued sums and annuities and surrenders and comparative prior year figures, with reference to Classes I, IV and V, are set out below.

Surrenders and claims relating to investments where policyholders bear the risk (Classes III and VI index-linked policies, unit-linked policies and open pension fund) totalled Euro 24,111 thousand with respect to Euro 17,980 thousand in the previous year.

(in migliaia di euro)

Average rate of return Total investments

Vittoria Valore Crescente 5.03% 323,967 Vittoria Rendimento Mensile 4.52% 254,872 Vittoria Liquinvest 5.86% 8,915

(in thousands of Euros)31/12/05 31/12/04

Claims 2,025 1,490Accrued sums and annuities 49,096 42,697Surrenders 16,266 15,033Total 67,387 59,220

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Reinsurance

Outwards reinsurance

With respect to Class I of the life business, the following treaties are in place: - Exceeding risk premium; - Pure commercial premiums ceded in 1996 and 1997. Ceded premiums amounted to

Euro 3,115 thousand in 2005.

Inwards reinsurance

With respect to life business, there is a traditional treaty no longer applied which only records changes in the related portfolio.

Non-life business

Operating costs

Premiums of direct insurance rose 6.6%. Operating costs relating to direct insurance, gross of commissions and profit participation received from reinsurers, grew 10.8%, as shown in the following table:

As a percentage of premiums written they increased one point to 25.7% from 24.7% in the previous year, as follows:

- commissions, collection other acquisition costs: as a result of the marked increased in premiums of lines other than the motor third party liability, following the strategy to prefer long-term contracts in order to improve customer loyalty, costs in this sector grew, in line with the rise in other non-life premiums excluding aviation, marine, bonds and credit, premiums relating to aviation, marine, bonds and credit and to motor property damage.

- overheads allocated to sales costs: the increase is due to the specific investments made in the marketing, sales and broker departments and for the opening of new agencies as part of the plan for the strengthening of points of sales. The increase is also due to investments in professional training to agencies and sub-agencies set up during the year, in line with the guidelines of ISVAP set out in circular no. 533/D of 4 June 2004.

- overheads allocated to other administrative costs: this rise is due to specific investments in company departments dedicated to the other non-life lines of business excluding aviation, marine, bonds and credit, where there are growth opportunities, and the set up of an anti-fraud, claims complaint management and data access department, required by the new guidelines of ISVAP and Court trends dealing with claims management.

(in thousands of Euros)31/12/05 31/12/04 variaz. %

Acquisition and collection commissions and other acquisition costs 78,596 71,882 9.3%

Overheads allocated to commercial costs 17,031 14,733 15.6%

Overheads allocated to other administrative costs 15,540 13,750 13.0%

Total 1111,167 100,365 10.8%

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Claims

Reported claims

The following table of reported claims derives from positions opened during the year.

The decreased number of reported claims in the health insurance business is due to the termination of two major agreements.

24.5% 23.7% 24.4% 24.8%24.7%

2001 2002 2003 2004 2005

OPERATING COSTS AS A PERCENTAGE OF GROSS PREMIUMS


number total cost number total cost number total cost

Accident insurance 5,181 14,136 5,299 11,894 -2.23 18.85Health insurance 3,866 4,140 9,375 4,652 -58.76 -11.01Aviation hulls 11 753 12 2,907 -8.33 -74.10Marine hulls 11 71 19 78 -42.11 -8.97Cargo insurance 456 1,726 402 1,330 13.43 29.77Fire and natural events 3,332 9,181 3,247 8,123 2.62 13.02Miscellaneous damages 8,901 12,736 6,609 8,341 34.68 52.69Third-party aviation liability 32 69 - - Third-party marine liability 51 167 50 138 2.00 21.01Third-party general liability 9,183 19,315 12,098 19,039 -24.09 1.45Legal protection 98 83 - - Bond insurance 151 5,669 333 13,638 -54.65 -58.43Pecuniary losses 98 148 243 229 -59.67 -35.37Total non-motor businesses 31,371 68,194 37,687 70,369 -16.76 -3.09Third-party motor liability 63,674 181,358 59,719 160,848 6.62 12.75Motor vehicle hulls 16,166 31,169 14,281 26,910 13.20 15.83Support and assistance 5,179 477 5,180 517 -0.02 -7.74Total motor businesses 85,019 213,004 79,180 188,275 7.37 13.13

Total non-life businesses 116,390 281,198 116,867 258,644 -0.41 8.72

Change %Year 2005 Year 2004

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Claims paid

Gross claims charges of all generations, which include liquidation operating costs, are detailed in annex 19 to the notes.

Claims paid related to the direct business and the reinsurers’ share may be analysed by line of business on an accruals basis as follows:

The additional charge to the guarantee fund for road casualties amounted to Euro 6,025 thousand in 2005 (2004: Euro 5,767 thousand).

Claims settlement rate

A breakdown of the claims settlement rate by number of reported claims, net of claims cancelled without pay out, split by current and previous generations of the main lines of business is set out below:

(in thousands of euros)Claims paid Claims Claims paid Change

31/12/04 recovered 31/12/03 grossCurrent

yearPrevious

years Totalfrom

reinsurers Current year Previous years Totalclaims

Accident insurance 3,243 6,464 9,707 953 2,719 5,542 8,261 17.50Health insurance 2,497 1,494 3,991 0 2,896 2,664 5,560 -28.22Aviation hulls 0 1,057 1,057 871 785 2,340 3,125 -66.18Marine hulls 9 36 45 0 30 8 38 18.42Cargo insurance 347 247 594 211 372 431 803 -26.03Fire and natural events 4,172 3,503 7,675 876 2,730 5,247 7,977 -3.79Miscellaneous damages 6,793 2,044 8,837 226 5,294 2,212 7,506 17.73Third-party aviation liability 0 2 2 2 - - - 0.00Third-party marine liability 51 256 307 1 - - - 0.00General third-party liability 3,281 11,535 14,816 396 4,047 8,419 12,466 18.85Bond insurance 1,797 7,071 8,868 4,509 5,174 6,697 11,871 -25.30Pecuniary losses 88 37 125 0 120 56 176 -28.98

Total non-motor businesses 22,278 33,746 56,024 8,045 24,167 33,616 57,783 -3.04Third-party motor liability 78,233 110,125 188,358 45,593 70,228 89,509 159,737 17.92Motor vehicle hulls 15,446 8,559 24,005 541 13,026 5,215 18,241 31.60Support and assistance 592 261 853 767 586 511 1,097 -22.24

Total motor businesses 94,271 118,945 213,216 46,901 83,840 95,235 179,075 19.07

Total non-life businesses 116,549 152,691 269,240 54,946 108,007 128,851 236,858 13.67

(percentages)

31/12/05 31/12/04 331/12/05 31/12/04

Accident insurance 55.26 54.05 64.71 62.24Health insurance 74.96 86.80 69.61 94.85Motor vehicle hulls 84.83 82.76 90.97 83.12Fire and natural events 67.03 69.96 42.12 43.21Miscellaneous damages - theft 79.34 81.94 74.29 78.17Third-party motor liability 67.68 67.08 70.20 67.73Third-party general liability 55.83 57.02 42.37 38.99

previous generationscurrent generation

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Technical result

The following table shows the total technical results and the result by line of business of direct and indirect insurance, net of outwards, gross of related operating costs and net of related revenues (see annexes 25 and 26 of the notes). Previous year’s comparative figures are also given.

The technical performance shows a decrease in the loss ratio and combined ratio of retained insurance to 67.2% and 97.8%, respectively, from 72% and 102% in the previous year. This leads to the following considerations on the different lines:

OTHER NON-LIFE LINES OF BUSINESS EXCLUDING AVIATION, MARINE, BONDS AND CREDIT Other non-life premiums excluding aviation, marine, bonds and credit grew 10.1% increasing their share of the company’s portfolio. The positive technical result shows a sharp improvement over the previous year.

Accident insurance: premiums increased by 7.2% which, considering that the growth was focused on highly profitable lines, confirms this line’s positive performance. Specifically, the persistent decrease in the frequency of claims was confirmed, although partially offset by the considerable increase in the average cost of claims caused by the increase in large claims. The technical result improved again over the previous year.

Health insurance: after they plummeted in 2004, premiums of this line of business rose slightly (1.9%) and are suffering a stagnation period. Thanks to the parent’s risk underwriting policies, the claims rate remained stable at the same level of the previous year and the technical result was positive. The parent is currently revising its products to better tailor them to market needs and assist their commercial development.

Fire and natural events: the 6.2% growth in premiums written was achieved thanks to the careful risk underwriting policy adopted, promoting especially the personal and SMEs sectors, however without neglecting larger companies whose policies are covered by a suitable reinsurance policy. The proactive contribution of the agency network to this activity has enabled the parent to maintain the technical result at the good level attained in the previous year.

(in thousands of euro)

Technical balance of

direct insurance net of

outwards

Technical balance of

indirect insurance net of

retroceded business

Change in equalisation

reserves

2005 technical

result

2004 technical

result

Other non-life lines of business excluding aviation, marine, bonds and credit

9,304 175 -94 9,385 6,961

Aviation, marine, bonds and credit lines of business

-2,272 154 -6 -2,124 -6,017

Motor business 3,355 3 -160 3,198 -1,075

Total non-life businesses 10,387 332 -260 10,459 -131

Non-life business portfolio - 2005 results

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Miscellaneous damage: this line of business includes theft, electronic equipment damage and hail damage. Premiums rose 9.9%.The claims rate worsened over the previous year mainly due to claims related to water damage and damage detection costs. The technical result was negative.

General third-party liability: the 3.9% increase in premiums is mainly due to the tariff adjustments made over the last few years, which are still being made in order to rebalance the operating results. The technical result is still negative although better than the previous year figure and is affected by an inconsistent trend of incurred but not reported claims.

Pecuniary losses: the development of this business is mainly due to the start up of activities in the “Cessione del Quinto” (transfer of one fifth of one’s salary) sector. Premiums written increased by 46.5% and the technical result was positive, with a slight improvement over the previous year.

Legal protection: activities in this business were launched on a large scale during the year, with covers mainly related to risks arising from the use of cars. Premiums jumped and the technical result was positive.

AVIATION, MARINE, BONDS AND CREDIT LINES OF BUSINESS Premiums rose 9.5% due to the full toll-out of activities in the general aviation business and the growth in the space risk line. The overall technical result is negative but clearly better than the previous year.

Credit and bond insurance: premiums written grew 0.8%, confirming a turnabout with respect to the past few years, which had seen a decrease due to the effects of the restructuring process implemented in 2001 and 2002. The claims rate, related almost entirely to the products of two agencies that were closed in 2001, was significantly better due to the new business. The technical result also improved although it continued to be negative.

Aviation property damage: premium rose 43.5% mainly due to a recovery recorded in the space risk line of business as well as the new policies written in the entire aviation business. The technical result was positive.

Cargo insurance: premiums written fell 3.5%. Thanks to the careful risk underwriting policy implemented and an accurate management of recharges, the technical result continued to be positive despite a worsening in the claims rate.

MOTOR BUSINESS Overall premiums written grew 5.3%, mainly due to the rise in ancillary covers in the motor third party liability line. The technical result was positive.

Third party motor, aviation, watercraft liability: premiums rose by 4.5%, mainly due to the rise in insured vehicles, which increased 6.3% on an annual basis. Tariffs remained substantially the same as in the previous year.

The parent policy for this line provides for adoption of highly customised tariffs aimed at reducing reported claims which were in line with the previous year. The average claims charge increased also due to the further and recent trend of court resolutions in favour of compensation relating to damage to the person’s health. As a result of this trend, doubts arise as to the future growth in this sector and, therefore, the company prudently increased technical captions in order to cope with any decline and put in place actions to restructure its portfolio of sectors at greater risk.

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These actions had a negative impact on the volume of premiums written, which fell by 3%. The negative technical result is in line with the previous year.

Motor vehicle, railway truck, aviation and marine property damage and support and assistance: these lines of business include all ancillary covers to vehicles included in this sector. The 10% rise in premiums follows the risk underwriting policy implemented in this sector which, in addition to the particular care taken in matching ancillary covers to motor third-party liability policies and the further strengthening of affinity groups, is aimed at developing new business areas linked to the sale of vehicles and related services. The positive technical result confirms the validity of the group’s underwriting policy.

Reinsurance

Outwards reinsurance

Company policies on outwards reinsurance are focused on the same underwriting selection criteria used to increase the portfolio in line with risks covered and are aimed at reaching the net retention balance. Transactions are carried out at an international level with highly rated reinsurers. The main existing treaties relate to:

Non-life business Type of treaty

01 - Accident insurance Pure premium for general aviation 05 - Aviation property damage Pure premium for space risks

Pure premium for general aviation 07 - Cargo insurance Voluntary-mandatory 08 - Fire and natural events Claims excess 10 - Motor third-party liability Pure premium Claims excess 11 - Third-party aviation liability Pure premium for general aviation 13 - General third-party liability Claims excess

Pure premium for general aviation 15 - Bond insurance Pure premium 17 - Legal protection Pure premium

Ceded premiums amounted to Euro 82,758 thousand in 2005.

Inwards reinsurance

Inwards insurance mainly arises from participation in syndicates and activities carried out in class 05 - Aviation property damage - space risks.

22

Commercial organisation

Development of the sales network continued steadily during the year, in line with previous years. Fourteen new agencies were opened and 21 were restructured. Two agencies were closed. The group also extended the network of professional sub-agencies opening another 11 points of sale together with the agencies. The company had 229 general agencies and 251 professional sub-agencies at year end.

The project aimed at setting up a new insurance promoter network to develop the sale of life products at agencies was continued during the year with 34 active promoters at year end. The group continued to put considerable effort in boosting non-life premiums excluding aviation, marine, bonds and credit during the year, in order to achieve a better portfolio mix while at the same time continuing to pay close attention to the risks underwritten and further improving technical results and profits. The new life business increased with respect to the previous year. The agency network was the key contributor to this result, operating in line with the parent’s objective that prefer a growth in the annual premium traditional policies while continuing actions aimed at reinvesting sums arising from matured policies.

The group paid even more attention to the affinity groups by continuing to carry out activities aimed at enhancing customer loyalty and growth. On the communications side, the Astralis Club initiative continued the top customer club which, in 2005, gave remarkable results, increasing purchases of life policies with annual premiums by the members. At the same time, a new project was launched targeting “Monoramo Auto” customers. The project is aimed at increasing their loyalty and subsequently developing other non-life premiums excluding aviation, marine, bonds and credit as well as life premiums. As part of the project for improving the quality of services to policyholders, both in terms of risk underwriting and claims settlement, the company developed its corporate website during the year in order to support continuous relations with end users.

Products

New products were developed during the year, as follows:

Life business: New products

- “Vittoria Formula Coupon”: single premium whole life product with annual distribution of return; - “Polizza Collettiva caso morte in abbinamento a contratti di finanziamento o mutui”; - “Vittoria Formula Deposito” and “Vittoria Formula Crescita Capitale” - “Vittoria Formula Salute”.

23

Other non-life lines of business excluding aviation, marine, bonds and credit: New products

- “Vittoria Formula Assistenza”: repayment of medical costs; this product is solely for affinity groups - “Vittoria Formula R.C. Professione”: General third-party for professionals - “METIS EASY”: Flat repayment of surgery costs - “Infortuni e rimborso spese sanitarie”: Specific product for affinity groups - “Formula Infortuni”: Product of banking channels - “Polizze Cumulative in abbinamento a contratti di finanziamento o mutui”; - “Polizza Leasing Immobiliare”; - “Vittoria Formula Salute”.

Overheads

Total insurance overheads, which include personnel expenses, other costs and depreciation charges, gross of allocation to specific functions, such as claims settlement, production organisation and asset management, increased by 2.5% from Euro 50,169 thousand to Euro 51,419 thousand. These costs include not only current operating expense, but also depreciation charges on investments in IT structures and processes aimed at controlling future overheads incurred by the headquarters and agencies while also improving assistance given to policyholders with respect to insurance policies and claims settlement. They are made up as follows:

Other costs mainly include office operating costs, IT costs, legal and corporate expenses, mandatory contributions and membership fees. Overheads decreased from 9.7% to 9.3% of total premiums.

(in thousands of euro)

Personnel expenses 27,169 24,841 9.4Other costs and Amortisation 24,250 25,328 -4.3

Total 51,419 50,169 2.5

31/12/2005 31/12/2004 Change %

24

Investments

Investments grew 7.3% to Euro 1,286,194 thousand. They may be analysed as follows.


Investments 31.12.2005 31.12.2004 Change %

Land and buildings 8,414 8,735 -3.7Investments in group and other companies

- Equity investments 135,324 191,757 -29.4- Loans 3,688 7,115 -48.2Other financial investments:

- Unit trust units 7,952 8,280 -4.0- Bonds and other fixed-interest securities 997,885 840,139 18.8- Loans 12,222 11,135 9.8Deposits with ceding companies 618 976 -36.7

Total investments where the company bears the risk 1,166,103 1,068,137 9.2

Investments benefiting life policyholders bearing the risk 120,091 130,477 -8.0

Total investments 1,286,194 1,198,614 7.3

Bank accounts and cash-in-hand 37,021 36,783 0.7

2001

945,276

2002

1,013,433

2003

1,082,566

2004

1,198,614

2005

1,286,194

1 2 3 4 5

INVESTMENTS(in thousands of euros)

25

The weighted average ordinary return on the bonds and other fixed-interest securities portfolio is 4.3%.

The following chart shows the trend of income on capital and financial investments of the last five years.


31.12.2005 31.12.2004 Change %

Income on investments (net of related costs)

Amount% of

breakdownAmount

% of breakdown

31.12.05/ 31.12.04

Income on equity investments 6,330 15.6 1,697 4.6Income on other investments:- land and buildings 47 0.1 44 0.1- bonds and other fixed-interest securities 35,282 86.8 37,323 101.3- income on unit trust units 413 1.0 70 0.2- interest on loans 575 1.4 742 2.0- interest on deposits with ceding companies -1,992 -4.9 -3,032 -8.2Total income 40,655 100.0 36,844 100.0 10.3Adjustments to investment values:- bonds and other fixed-interest securities -1,006 100.0 -35 100.0Total adjustments to investment values: -1,006 100.0 -35 100.0Profit on sale of investments:- unit trust units - 0.0 1,967 99.2- bonds and other fixed-interest securities 9 100.0 15 0.8Total profit on sale of investments 9 100.0 1,982 100.0

Total income on investments where the company bears the risk 39,658 38,791 2.2

Net income on investments benefiting life policyholders bearing the risk 9,342 8,720

Total 49,000 47,511 3.1

24,83331,441

39,617 38,791 39,658

2001 2002 2003 2004 2005

NET INCOME ON INVESTMENTS(in thousands of euros)

26

Buildings

The book value of the company real estate at year end totalled Euro 8,414 thousand. It comprised operating buildings (Euro 148 thousand), buildings given on a free loan basis to agencies (Euro 4,501 thousand) and buildings used by third parties (Euro 3,765 thousand). It decreased Euro 321 thousand over the previous year end since the company sold the units in Foggia- via Scrocco 60, Monza - via Cavallotti 11 and Piacenza - via S. Antonino. Renovation work on owned buildings totalled Euro 34 thousand. The net capital gain realised on these sales amounted to Euro 289 thousand.

Fixed-interest securities, investments and unit trusts

Investment policies A) Life and non-life business investments where the company bears the risk

- Objectives Investments are managed in line with the following objectives:

• ensuring the company’s sound financial position; • with respect to the life business, ensuring a stable return, greater than the technical return rate

of the contracts in portfolio; • with respect to the non-life business, ensuring a stable return, in line with the forecasts included

in the relevant product tariffs; • matching the term of the securities portfolio with that of liabilities;• preferring consistency of returns to obtaining high returns in particular periods.

With respect to the separately-managed life business, the investment securities portfolio considers treasury cash flows in line with the company’s plans, also taking into account the legal time limits of the portfolio due to natural and voluntary reasons. With respect to non-life business, the company’s policies for investment securities are more than fully covered by the forecast working capital liquidity in the business plans. The estimated liquidity was actually generated in recent years. Where necessary, such expected cash flows will also cover possible increases in the claims settlement rate.The company can use derivative financial instruments to hedge investments against exchange rate fluctuations. It can acquire and hold warrants received as part of capital transactions carried out by issuers of shares in its portfolio.

B) Life business investments where policyholders bear the risk

- Objectives Investment benefiting policyholders bearing the risk (index-linked and unit-linked policies) and those arising from pension fund management are managed in accordance with the objectives established by the related policies and regulations of the pension funds, pursuant to the total transparency obligation to policyholders and relevant legislation. The company can use derivative financial instruments to hedge investments against exchange rate fluctuations. If expressly provided for by the fund regulations, it can also acquire and sell warrants of internal funds linked to unit-linked policies. It can acquire structured products to hedge reserve relating to index-linked policies, pursuant to supervisory regulations.

27

- Current management The yield curve on the fixed-interest securities portfolio continued to flatten during the year and the company maintained its policy focused on the acquisition of Italian treasury bonds, mainly with variable rates. Variable rate securities acquired totalled Euro 195,869 thousand (of which Euro 4,500 thousand held for investment) while fixed rate securities acquired amounted to Euro 4,987 thousand, all held for investment. Bonds sold during the year totalled Euro 19,182 thousand (of which Euro 11,496 thousand held for investment). The company realised gains of Euro 4,093 thousand thereon. Sales of held for investment bonds included Argentine securities in portfolio for Euro 1,859 thousand, which brought in Euro 820 thousand in gains. Real estate investments made through the vehicles Immobiliare Bilancia, Immobiliare Bilancia Prima and Immobiliare Bilancia Seconda were partly concluded. Invested capital was partially repaid, as detailed below.

Changes in the equity portfolio held for investment, excluding subsidiary, associated and related companies, may be analysed as follows:

- Banca Passadore S.p.A. - Genoa: increase in the investment from 2.679% to 2.756% through the acquisition of 26,993 shares at a cost of Euro 159 thousand;

- BCC Banca Comprensorio del Cuoio - Pisa: subscription of Euro 50 thousand of the capital of this newly set up bank. This investment was made for the purposes of a commercial cooperation agreement for the sale of insurance products;

- BCM & Partners LLP - London: subscription of a 10% stake in this London-based company operating in the fund management sector, at a cost of Euro 207 thousand;

- B.P.C. S.p.A. - Genoa: the relevant portion of the share capital increase of BPC S.p.A. (Euro 496 thousand) was subscribed and paid-up and further shares totalling Euro 72 thousand were subscribed, increasing the investment to 19.92%;

- Cam Finanziaria S.p.A. - Milan: subscription of the relevant portion of the share capital increase (Euro 10,144 thousand) keeping the group’s investment therein unchanged;

- Liguria S.p.A. - Milan: paid up Euro 22 thousand, i.e., 20% of the 109,798 shares (out of a total of 576,800 shares) which are now 45% paid-up;

- Marina S.r.l. - Milan: subscription of a 19.98% stake in this holding company for Euro 829 thousand;

- Mediorischi S.p.A. - Milan: acquisition of 5.35% of this insurance brokerage company for Euro 11 thousand.

Investments in subsidiary, associated and related companies related to:

- Immobiliare Bilancia S.r.l.- Milan: repayment of part of the quota premium reserve arising from the decrease in quota capital (Euro 31,250 thousand);

- Immobiliare Bilancia Prima S.r.l.- Milan: repayment of the quota premium reserve arising from the decrease in quota capital (Euro 26,600 thousand);

- Immobiliare Bilancia Seconda S.r.l.- Milan: repayment of part of the quota premium reserve (Euro 14,500 thousand);

- Vittoria Immobiliare S.p.A.- Milan: subscription of the relevant portion of the share capital increase at a cost of Euro 960 thousand and payment of Euro 536 thousand as advance on share capital increase;

28

- White Finance S.A. - Luxembourg: subscription of a 32.17% stake in this financial holding company for Euro 5,431 thousand;

- Yarpa International Holding N.V. - Amsterdam: collection of Euro 3,000 thousand as partial repayment of the share premium reserve.

Pursuant to paragraphs 3 and 4 of article 2428 of the Italian Civil Code, we note that Vittoria Assicurazioni S.p.A. has not traded its own shares or shares of its parent company, either directly or through a trustee or nominee.

Investments benefiting life policyholders bearing the risk and arising from pension fund management

These investments decreased by 8% to Euro 120,091 thousand. They relate to unit-linked policies, linked to external funds (Euro 55,870 thousand), unit-linked policies, linked to internal funds (Euro 29,565 thousand), index-linked policies, linked to OEICs (Euro 32,734 thousand) and the Vittoria Formula Lavoro open pension fund (Euro 1,922 thousand).

Overall net return was a positive Euro 9,342 thousand.

“Vittoria Assicurazioni S.p.A. Fixed/Floater 2001/2016 subordinated bond convertible into ordinary shares” (ISIN Code IT0003184758)

The main characteristics of the convertible subordinated bond issue approved by the shareholders in their extraordinary meeting on 26 April 2001 and fully subscribed in 2001 are as follows:

- total nominal amount of Euro 18,000,000;

- composed of 3,750,000 bonds with a nominal value of Euro 4.80 each;

- nominal interest rate:

- fixed 5.5% up to 31 December 2010 - annual coupons

- variable six-monthly Euribor plus a spread of 2.5% six-monthly coupons from 1 January 2011;

- due date of coupon as from 12 November 2001;

- first coupon payable on 1 January 2002 (interest of the period);

- conversion option can be exercised from 20 May (included) to 30 October (included) in 2006, 2007, 2008, 2009 and 2010. In 2011, 2012, 2013, 2014 and 2015, the conversion option can be exercised from 20 May (included) to 10 June (included) of each year. The exercise of the conversion option is suspended in the period from the date of any issuer’s board of directors’ meeting resolving to call a shareholders’ meeting for the approval of financial statements “with dividend distribution” to the date subsequent to the coupon detachment date approved by the same meeting.

- maturity: 1 January 2016

- subordination clause: in the case of dissolution, liquidation, insolvency or compulsory liquidation of the company, the bonds will be repaid, in terms of residual principal and interest, only after that all other company creditors (unsecured, secured, unsubordinated or with a subordination level lower than those of the bonds) have been satisfied.

29

Furthermore, the company reserved the right to early repayment of all outstanding bonds at any time from 1 January 2011, with prior notice of at least one month to bondholders.

These bonds are subordinated liabilities of the issuer, taken into account for the purpose of the calculation of the solvency margin of the issuer, pursuant to article 33 of Legislative decree no. 174 of 17 March 1995 and article 33 of Legislative decree no. 175 of 17 March 1995 with respect to the life and non-life business, respectively.

Personal data protection code(pursuant to point 26, annex B of Legislative decree no. 196 of 30 June 2003)

The company updated its personal data protection code drew up on 30 June 2003 before 31 March 2006, without availing itself of the further term extensions provided for by the law.

30

Shares of Vittoria Assicurazioni S.p.A. and its subsidiaries held by directors, statutory auditors and general managers at 31 December 2005 (pursuant to article 79 of Consob resolution no. 11971 of 14 May 1999 and subsequent modifications and integrations)

Disclosure pursuant to article 2497-bis of the Italian Civil Code

In accordance with the reform of the company law, the companies managed and coordinated by Vittoria Assicurazioni, as per their deeds of incorporation and documentation, are:

- Vittoria Immobiliare S.p.A. - Milan - Vittoria Properties S.r.l. - Milan - Immobiliare Bilancia S.r.l. - Milan - Immobiliare Bilancia Prima S.r.l. - Milan - Immobiliare Bilancia Seconda S.r.l. - Milan - Immobiliare Bilancia Terza S.r.l. - Milan - Gestimmobili S.r.l. - Milan - Interimmobili S.r.l. - Rome - V.R.G. Domus S.r.l. – Turin

In accordance with the reform of company law, the companies managed and coordinated by Interbilancia S.r.l., as per their deeds of incorporation and documentation, are:

- A.Spe.Vi. S.r.l. - Milan - Aspeca S.r.l. - Milan - Vittoria.net S.r.l. - Milan

Name Company held

Number of shares held of the end of

2004

Number of shares

purchased or subscribed

Number of shares sold

Number of shares held of the end of

2005

Guatri Luigi 25,000 25,000

Acutis Carlo Through Vittoria Capital N.V. 15,307,200 15,307,200

Acutis Carlo Through Yura Int. Holding B.V. 757,150 1,207,964 1,965,114

Acutis Biscaretti

di Ruffia Adriana 592,557 592,557 0

Acutis Andrea 592,593 592,557 36

Costa Giorgio 18,699 18,699

Baggi Sisini Francesco Through Arbus S.r.l. 100 100

Baggi Sisini Francesco Through Opalia B.V. 2,838,400 41,600 2,880,000

Brignone Marco 10,000 10,000

Paveri Fontana Luca 20,055 17,533 10,000 27,588

Strazzera Livio 50 50

Acutis Carlo Interimmobili S.r.l.

Through Yura S.A. 15,600 15,600 0

Vittoria Assicurazioni S.p.A.

Com panies controlled by Vittoria Assicurazioni S.p.A.

31

Relationships with group companies and related parties

In its meeting of 29 April 2004, the board of directors approved the company’s guidelines governing relationships with related parties. These are included in the annual report on corporate governance.

This section sets out all transactions carried out with group companies during the year. For further information, reference should be made to part C - Other information of the notes and to the consolidated financial statements.

Relationships with its parent companies

No transactions of a trading or supply nature were carried out with Vittoria Capital N.V. - Holland, which directly held 15,307,200 Vittoria Assicurazioni ordinary shares, equal to 51,024% of the share capital, at year end, unchanged with respect to 31 December 2004. Moreover, the direct parent company holds subordinated convertible bonds issued by Vittoria Assicurazioni amounting to Euro 9,240 thousand. The captions other charges of the non-technical account and accrued expenses include Euro 508 thousand relating to the interest payable on such bonds.

No transactions of a trading or supply nature have been carried out with the indirect ultimate parent company Yura International Holding B.V. - Holland, which holds a 66% stake in Vittoria Capital N.V.. Its direct investment at year end consisted of 1,965,114 shares, equal to 6.55% of the share capital. Moreover, the indirect ultimate parent company holds subordinated convertible bonds issued by Vittoria Assicurazioni for a nominal value of Euro 990 thousand. The captions other changes of the non-technical account and accrued expenses include Euro 54 thousand relating interest payable on such bonds.

Relationships with its subsidiaries

Vittoria Immobiliare S.p.A. Vittoria Immobiliare paid a dividend of Euro 1,578 thousand to Vittoria Assicurazioni. In order to continue strengthening its financial position, Vittoria Immobiliare increased its share capital against consideration from Euro 6,600,000 to Euro 7,700,000 and requested a subsequent capital injection for future share capital increases. Vittoria Assicurazioni paid its portion of Euro 1,496 thousand thus, keeping its investment therein unchanged.

Vittoria Immobiliare S.p.A. holds 50% of Rovimmobiliare S.r.l. (Rome), 35% di Gimatrading S.r.l. (Turin) and 49.5% di SIVIM S.r.l. (Milan). It also controls the following companies:

Gestimmobili S.r.l. Milan 80% stake Interimmobili S.r.l. Rome 80% stake V.R.G. Domus S.r.l. Turin 51% stake Parco Fidenae S.r.l. Rome 51% stake

Relationships with these indirectly-held companies related to real estate sales, for which commissions of Euro 38 thousand plus VAT were paid, management of the company’s real estate, logistics and real estate management of agencies and claims settlement departments and preparation of appraisals for the granting of mortgage loans (Euro 223 thousand plus VAT was paid for these services). For further details on operations of group companies reference should be made to the consolidated financial statements.

32

Vittoria Properties S.r.l. Vittoria Assicurazioni paid rent and reimbursed expenses relating to rent of buildings for Euro 112 thousand to Vittoria Properties S.p.A. during the year.

Immobiliare Bilancia S.r.l. - Milan This subsidiary, active in the real estate trading business, paid a dividend (Euro 3,713 thousand) and partially repaid the quota premium reserve (Euro 31,250 thousand) to Vittoria Assicurazioni. The payable to Vittoria Assicurazioni arising from the tax consolidation system amounted to Euro 44 thousand.

Immobiliare Bilancia Prima S.r.l. - Milan The payable to Vittoria Assicurazioni arising from the tax consolidation system amounted to Euro 3,562 thousand. During the year, the subsidiary repaid the quota premium reserve (Euro 26,600 thousand) to Vittoria Assicurazioni.

Immobiliare Bilancia Seconda S.r.l. - Milan The payable to Vittoria Assicurazioni arising from the tax consolidation system amounted to Euro 471 thousand. During the year, the subsidiary partially repaid the quota premium reserve (Euro 14,500 thousand) to Vittoria Assicurazioni.

Immobiliare Bilancia Terza S.r.l. - Milan The company is dormant. The receivable from Vittoria Assicurazioni arising from the tax consolidation system amounted to Euro 4 thousand.

Interbilancia S.r.l. - Milan Interbilancia is a holding company that has the following investments:

A.Spe.Vi S.r.l. Milan 100% stake Vittoria.Net S.r.l. Milan 100% stake Aspeca S.r.l. Milan 80% stake Le Api S.r.l. Milan 30% stake

Interbilancia group companies provided services to Vittoria Assicurazioni at a cost of Euro 1,334 thousand. They also received brokerage commissions and contributions totalling Euro 3,328 thousand.

Relationships with its associated companies

Yarpa International Holding NV - Holland This company repaid part of the share premiums to its shareholders. The amount paid to Vittoria Assicurazioni was Euro 3,000 thousand.

Laumor BV - Holland The company decreased the loans granted to this associate from Euro 7,115 thousand to Euro 3,687 thousand. Equivalent decreases were made by the other shareholders. Part of the loan (Euro 3,063 thousand) was given for the real estate trading performed by this company through its special purpose vehicles and bears interest at the three-month Euribor rate plus 30 basis points. The related interest was Euro 73 thousand. The remainder does not bear interest and was given for the acquisition, through the French investment fund F.C.P.R. Francois III, of a stake in the French group Materis, which is active in the building materials sector. It amounts to Euro 625 thousand after the repayment of Euro 3,500 thousand.

33

Touring Vacanze S.r.l. - Milan Vittoria Assicurazioni paid Euro 6 thousand plus VAT to this company for advertising services.

Relationships with its related companies

S.In.t. S.p.A. - Turin Services provided by S.In.t. S.r.l. to the company related to the “Formula Salute” policies and commercial agreements signed by Vittoria. The total cost of these services amounted to Euro 577 thousand plus V AT.

In compliance with Consob recommendation no. 98015375 dated 27 February 1998, we note that transactions with group companies or other related parties have been carried out during the normal course of business, using specific professional skills and on an arm’s length basis. There were no atypical or unusual transactions.

Performance of the first few months of 2006 and expected future development

Subsequent to the year end, a share premium of Euro 2,447 thousand was paid with respect to White Finance S.A. The company will continue to build up its sales network during 2006. It has opened three new agencies, restructured 9 and closed one special agency.

34

Allocation of net profit

Dear shareholders, Considering the information included in the documents forming the financial statements, we propose the net profit for the year be allocated as follows:

Net profit of the non-life business Euro 11,219,015 Net profit of life business Euro 9,111,001

Total (equal to Euro 0.6777 per share) Euro 20,330,016

Allocation to the life business legal reserve Euro 34,963

Net profit available Euro 20,295,053

Which we propose be used as follows:

– to each of the 30,000,000 shares comprising the entire share capital Euro 0.15 for a total of Euro 4,500,000

Residual amount of Euro 15,795,053

Which we propose be allocated as follows:

to the available reserve of the non-life business Euro 11,094,015 to the available reserve of the life business Euro 4,701,038

Should you approve our proposal, the dividend will be paid from 11 May 2006 at the depositories, with detachment of coupon 23 on 8 May 2006.

Finally, we would like to thank the shareholders and policyholders for their trust shown in us as well as all employees, agents and their consultants for their commitment and involvement.

Board of Directors

Milan 23 March 2006

35


36

Financial statementsas at and for the year ended

31 December 2005

37

BALANCE SHEETASSETS

Current year

A. SHARE CAPITAL PROCEEDS TO BE RECEIVED 1 0

of which: called-up 2 0

B. INTANGIBLE ASSETS

1. Acquisition commissions to be amortised

a) life businesses 3 5,408,483

b) non-life businesses 4 7,409,772 5 12,818,255

2. Other acquisition costs 6 0

3. Start-up and capital costs 7 286,345

4. Goodwill 8 0

5. Other deferred costs 9 15,327,556 10 28,432,156

C. INVESTMENTS

I - Land and buildings

1. Operating buildings 11 148,067

2. Buildings used by third parties 12 8,265,639

3. Other buildings 13 0

4. Other property rights 14 0

5. Assets under construction and payments on account 15 0 16 8,413,706

II - Investments in group and other companies:

1. Equity investments in:

a) parent companies 17 0

b) subsidiaries 18 60,932,236

c) related companies 19 258,406

d) associated companies 20 20,244,276

e) other companies 21 53,889,349 22 135,324,267

2. Bonds issued by:


b) subsidiaries 24 0

c) related companies 25 0

d) associated companies 26 0

e) other companies 27 0 28 0

3. Loans to:


b) subsidiaries 30 0


d) associated companies 32 3,687,764

e) other companies 33 0 34 3,687,764 35 139,012,031

to carry forward 28,432,156

38

Previous year

181 0

182 0

183 6,434,068

184 6,503,355 185 12,937,423

186 0

187 343,614

188 0

189 14,086,497 190 27,367,534

191 148,067

192 8,586,909

193 0

194 0

195 0 196 8,734,976

197 0

198 131,786,679

199 258,406

200 17,812,872

201 41,899,228 202 191,757,185

203 0

204 0

205 0

206 0

207 0 208 0

209 0

210 0

211 0

212 7,114,525

213 0 214 7,114,525 215 198,871,710

to carry forward 27,367,534

39

BALANCE SHEETASSETS

Current year

brought forward 28,432,156

C. INVESTMENTS (continues)

III - Other financial investments:

1. Equity investments

a) Listed shares 36 0

b) Unlisted shares 37 0

c) Quotas 38 0 39 0

2. Unit trust units 40 7,951,693

3. Bonds and other fixed-interest securities

a) listed 41 989,877,814

b) unlisted 42 8,007,370

c ) convertible bonds 43 0 44 997,885,184

4. Loans

a) secured loans 45 4,563,021

b) loans on policies 46 5,664,192

c) other loans 47 1,994,505 48 12,221,718

5. Shares in investment pools 49 0

6. Deposits with banks 50 0

7. Other financial investments 51 0 52 1,018,058,595

IV - Deposits with ceding companies 53 618,287 54 1,166,102,619

D. INVESTMENTS BENEFITING LIFE POLICYHOLDERS BEARINGTHE RISK AND STEMMING FROM PENSION FUND MANAGEMENT

I - Investments relating to index-linked policies 55 118,168,947

II - Investments relating to pension fund management 56 1,921,761 57 120,090,708

D bis. REINSURERS' SHARE OF TECHNICAL RESERVES

I - NON-LIFE BUSINESSES

1. Premium reserve 58 39,371,431

2. Claims reserve 59 78,110,872

3. Profit participation and reimbursement reserve 60 0

4. Other technical reserves 61 0 62 117,482,303

II - LIFE BUSINESSES

1. Mathematical reserves 63 25,858,841

2. Complementary insurance premium reserve 64 0

3. Reserve for payable amounts 65 20,658


5. Other technical reserves 67 38,509

6. Technical reserves where investment risk is borne by policyholders and reserves relating to

pension fund management 68 0 69 25,918,008 70 143,400,311

to carry forward 1,458,025,794

40

Previous year

brought forward 27,367,534

216 8

217 0

218 0 219 8

220 8,279,521

221 836,577,402

222 3,561,802

223 0 224 840,139,204

225 3,976,658

226 5,590,851

227 1,567,957 228 11,135,466

229 0

230 0

231 0 232 859,554,199

233 975,890 234 1,068,136,775

235 128,444,280

236 2,032,552 237 130,476,832

238 36,415,618

239 78,859,900

240 0

241 0 242 115,275,518

243 23,205,246

244 0

245 20,658

246 0

247 38,161

248 0 249 23,264,065 250 138,539,583


41

BALANCE SHEETASSETS

Current year

brought forward 1,458,025,794

E. RECEIVABLES

I - Receivables relating to direct insurance due from:

1. Policyholders

a) premiums for the year 71 33,792,898

b) premiums for previous years 72 1,543,546 73 35,336,444

2. Insurance brokers and agents 74 44,257,537

3. Current account companies 75 4,480,542

4. Amounts to be recovered from policyholders and third parties 76 24,243,002 77 108,317,525

II - Receivables relating to reinsurance due from:

1. Insurance and reinsurance companies 78 10,374,953

2. Reinsurance brokers and agents 79 0 80 10,374,953

III. - Other receivables 81 38,165,722 82 156,858,200

F. OTHER ASSETS

I - Tangible assets and inventory:

1. Office furniture and machines and internal transport systems 83 3,634,764

2. Registered chattel property 84 340,186

3. Plant and machinery 85 446,884

4. Inventory and other assets 86 0 87 4,421,834

II - Liquid funds

1. Bank and postal accounts 88 36,975,276

2. Cheques on hand and cash-in-hand 89 45,730 90 37,021,006

III - Own shares or quotas 91 0

IV - Other assets

1. Suspense reinsurance accounts 92 0

2. Sundry assets 93 6,474,882 94 6,474,882 95 47,917,722

G. PREPAYMENTS AND ACCRUED INCOME

1. Interest 96 13,240,811

2. Rent instalments 97 227,728

3. Other prepayments and accrued income 98 466,056 99 13,934,595

TOTAL ASSETS 100 1,676,736,311

42

Previous year


251 37,227,197

252 617,367 253 37,844,564

254 44,538,921

255 5,135,013

256 23,222,479 257 110,740,977

258 11,731,135

259 0 260 11,731,135

261 16,767,060 262 139,239,172

263 3,567,545

264 251,888

265 613,980

266 0 267 4,433,413

268 36,760,390

269 22,896 270 36,783,286

271 0

272 0

273 4,092,043 274 4,092,043 275 45,308,742

276 12,713,748

277 231,387

278 419,852 279 13,364,987

280 1,562,433,625

43

BALANCE SHEETLIABILITIES AND SHAREHOLDERS' EQUITY

Current year

A. SHAREHOLDERS' EQUITY

I - Subscribed share capital or equivalent fund 101 30,000,000

II - Share premium reserve 102 20,141,819

III - Revaluation reserves 103 6,370,382

IV - Legal reserve 104 5,965,036

V - Statutory reserves 105 0

VI - Reserves for purchase of own shares and shares of parent company 106 0

VII - Other reserves 107 65,198,280

VIII - Retained earnings or losses carried forward 108 0

IX - Net profit (loss) for the year 109 20,330,016 110 148,005,533

B. SUBORDINATED LIABILITIES 111 18,000,000

C. TECHNICAL RESERVES


1. Premium reserve 112 167,030,857

2. Claims reserve 113 420,943,765


4. Other technical reserves 115 2,319,424

5. Equalisation reserves 116 1,876,222 117 592,170,268


1. Mathematical reserves 118 598,749,773

2. Complementary insurance premium reserve 119 205,316

3. Reserve for payable amounts 120 26,744,771

4. Profit participation and reimbursement reserve 121 11,129

5. Other technical reserves 122 3,600,611 123 629,311,600 124 1,221,481,868

D. TECHNICAL RESERVES WHERE THE INVESTMENT RISK IS BORNEBY POLICYHOLDERS AND RESERVES ARISING FROM PENSION FUND MANAGEMENT

I - Reserves arising from index-linked policies125 118,168,947

II - Reserves arising from pension fund management 126 1,921,761 127 120,090,708


44

Previous year

281 30,000,000

282 20,141,819

283 6,370,382

284 5,076,102

285 0

286 0

287 52,508,529

288 0

289 17,778,685 290 131,875,517

291 18,000,000

292 159,230,040

293 393,514,804

294 0

295 1,835,924

296 1,616,298 297 556,197,066

298 546,105,941

299 212,220

300 18,213,696

301 12,803

302 3,183,654 303 567,728,314 304 1,123,925,380

305 128,444,282

306 2,032,552 307 130,476,834


45


Current year


E. PROVISIONS FOR CONTINGENCIES AND OTHER CHARGES

1 Pension and similar provisions 128 0

2 Provision for taxation 129 4,076,254

3 Other provisions 130 741,337 131 4,817,591

F. DEPOSITS FROM REINSURERS 132 106,301,030

G. PAYABLES AND OTHER LIABILITIES

I - Payables arising from direct insurance business due to:

1. Insurance brokers and agents 133 1,959,919

2. Current account companies 134 4,881,198

3. Guarantee deposits and premiums paid by policyholders 135 3,778

4. Guarantee funds in favour of policyholders 136 1,033,608 137 7,878,503

II - Payables arising from reinsurance business due to:

1. Insurance and reinsurance companies 138 7,154,437

2. Reinsurance brokers and agents 139 0 140 7,154,437

III. - Bond issues 141 0

IV - Due to banks and other financial institutions 142 0

V - Secured debts 143 0

VI - Sundry loans and other financial payables 144 0

VII - Employees' leaving entitlement 145 5,921,086

VIII - Other sums payable

1. Policyholders' tax due 146 8,747,991

2. Other sums payable to taxation authorities 147 7,259,377

3. Social security charges payable 148 1,570,140

4. Sundry payables 149 7,590,405 150 25,167,913

IX - Other liabilities

1. Suspense reinsurance accounts 151 0

2. Commissions on premiums under collection 152 7,939,089

3. Other liabilities 153 2,974,570 154 10,913,659 155 57,035,598


46

Previous year


308 0

309 3,259,572

310 741,337 311 4,000,909

312 103,210,445

313 1,875,600

314 4,663,029

315 60,860

316 1,373,604 317 7,973,093

318 7,784,724

319 0 320 7,784,724

321 0

322 0

323 0

324 0

325 5,423,919

326 8,967,404

327 1,576,322

328 1,441,638

329 6,680,742 330 18,666,106

331 0

332 7,855,438

333 2,238,700 334 10,094,138 335 49,941,980


47


Current year


H. ACCRUED EXPENSES AND DEFERRED INCOME

1. Interest 156 990,000

2. Rent instalments 157 0

3. Other accrued expenses and deferred income 158 13,983 159 1,003,983

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 160 1,676,736,311

BALANCE SHEETGUARANTEES, COMMITMENTS AND OTHER MEMORANDUM AND CONTINGENCY ACCOUNTS

Current year

GUARANTEES, COMMITMENTS AND OTHER MEMORANDUM AND CONTINGENCY ACCOUNTS

I - Guarantees given

1. Sureties 161 0

2. Endorsements 162 0

3. Other personal guarantees 163 20,500,000

4. Collateral 164 0

II - Guarantees received

1. Sureties 165 150,000

2. Endorsements 166 0

3. Other personal guarantees 167 0

4. Collateral 168 250,000

III - Guarantees given by third parties in the interest of the company 169 0

IV - Commitments 170 47,459,838

V - Third party assets 171 4,186,949

VI - Assets pertaining to pension funds managed in favour and on behalf of third parties 172 1,921,761

VII - Securities held by third parties 173 1,066,479,994

VIII - Other memorandum and contingency accounts 174 0

48

Previous year


336 990,000

337 0

338 12,560 339 1,002,560

340 1,562,433,625

Previous year

341 0

342 0

343 20,500,000

344 0

345 0

346 0

347 0

348 250,000

349 0

350 0

351 2,026,316

352 2,032,552

353 1,031,066,165

354 0

49

PROFIT AND LOSS ACCOUNTCurrent year

I. NON-LIFE BUSINESS TECHNICAL ACCOUNT

1 PREMIUMS, NET OF OUTWARDS REINSURANCE

a) gross premiums accounted for 1 433,405,723

b) (-) outwards reinsurance premiums 2 83,398,683

c) Change in gross premium reserve 3 7,549,794

d) Change in reinsurer premium reserve 4 74,821 5 342,532,067

2 (+) INCOME ON INVESTMENTS TRANSFERRED FROM NON-TECHNICAL ACCOUNT (Caption III.6) 6 10,169,773

3 OTHER TECHNICAL INCOME, NET OF OUTWARDS REINSURANCE 7 1,635,957

4 CHARGES RELATING TO CLAIMS, NET OF RECOVERIES AND OUTWARDS REINSURANCE

a) Amounts paid

aa) Gross amount paid 8 276,543,154

bb) (-) reinsurers' share 9 55,727,334 10 220,815,820

b) Change in recoveries, net of reinsurers' share

aa) Gross amount recovered 11 7,417,602

bb) (-) reinsurers' share 12 305,980 13 7,111,622

c) Change in claims reserve

aa) Gross amount 14 26,990,175

bb) (-) reinsurers' share 15 10,620,389 16 16,369,786 17 230,073,984

5 CHANGE IN OTHER TECHNICAL RESERVES, NET OF OUTWARDS REINSURANCE 18 483,500

6 REVERSALS AND PROFIT PARTICIPATION, NET OF OUTWARDS REINSURANCE 19

7 OPERATING COSTS:

a) Acquisition commissions 20 68,423,517

b) Other acquisition costs 21 22,038,645

c) Change in commissions and other acquisition costs

to be amortised 22 906,416

d) Premium collection commissions 23 6,178,697

e) Other administrative costs 24 15,539,912

f) (-) Profit participation and other commissions received by reinsurers 25 13,270,038 26 98,004,317

8 OTHER TECHNICAL CHARGES, NET OF OUTWARDS REINSURANCE 27 4,886,637

9 CHANGE IN EQUALISATION RESERVES 28 259,925

10 RESULT OF NON-LIFE BUSINESS TECHNICAL ACCOUNT (Caption III. 1) 29 20,629,434

50

Previous year

111 407,063,186

112 92,065,821

113 14,779,085

114 2,411,377 115 302,629,657

116 11,930,336

117 1,694,170

118 245,357,386

119 59,983,874 120 185,373,512

121 10,018,630

122 431,610 123 9,587,020

124 55,689,219

125 13,544,030 126 42,145,189 127 217,931,681

128 461,330

129

130 61,040,511

131 20,729,732

132 1,239,637

133 6,212,847

134 13,750,052

135 19,455,767 136 81,037,738

137 4,783,324

138 239,345

139 11,800,745

51


II. LIFE BUSINESS TECHNICAL ACCOUNT

1 PREMIUMS, NET OF OUTWARDS REINSURANCE:

a) Gross premiums accounted for 30 117,796,388

b) (-) outwards reinsurance premiums 31 3,115,377 32 114,681,011

2 INCOME ON INVESTMENTS:

a) Income on equity investments 33 4,702,708

(of which: from group companies 34 4,702,708 )

b) Income on other investments:

aa) land and buildings 35

bb) other investments 36 25,587,755 37 25,587,755

(of which: from group companies 38 )

c) Adjustments to investment values 39

d) Profit on sale of investments 40 13,877

(of which: from group companies 41 ) 42 30,304,340

3 INCOME AND NON-REALISED CAPITAL GAINS RELATING TO INVESTMENTS BENEFITTING POLICYHOLDERS

BEARING THE RISK AND INVESTMENTS STEMMING FROM PENSION FUND MANAGEMENT 43 12,778,514

4 OTHER TECHNICAL INCOME, NET OF OUTWARDS REINSURANCE 44 1,135,648

5 CHARGES RELATING TO CLAIMS, NET OF OUTWARDS REINSURANCE:

a) Amounts paid

aa) Gross amount paid 45 83,088,255

bb) (-) reinsurers' share 46 688,492 47 82,399,763

b) Change in reserve for amounts payable


bb) (-) reinsurers' share 49 50 8,531,075 51 90,930,838

6 CHANGE IN MATHEMATICAL RESERVES AND OTHER TECHNICAL RESERVES,

NET OF OUTWARDS REINSURANCE

a) Mathematical reserves:


bb) (-) reinsurers' share 53 2,653,595 54 49,999,900

b) Complementary insurance premium reserve:

aa) Gross amount 55 -6,903

bb) (-) reinsurers' share 56 57 -6,903

c) Other technical reserves

aa) Gross amount 58 416,958

bb) (-) reinsurers' share 59 349 60 416,609

d) Technical reserves where investment risk is borne

by policyholders and reserves arising from pension fund management

aa) Gross amount 61 -10,386,125

bb) (-) reinsurers' share 62 63 -10,386,125 64 40,023,481

52

Previous year

140 112,204,766

141 2,898,508 142 109,306,258

143 829,080

(of which: from group companies 144 829,080 )

145

146 24,038,314 147 24,038,314

(of which: from group companies 148 )

149 4,562

150 1,966,765


153 12,352,452

154 1,209,389

155 76,113,728

156 620,866 157 75,492,862

158 1,332,533

159 160 1,332,533 161 76,825,395

162 34,959,643

163 2,276,521 164 32,683,122

165 -5,970

166 167 -5,970

168 206,409

169 -48 170 206,457

171 11,208,627

172 173 11,208,627 174 44,092,236

53


7 REVERSALS AND PROFIT PARTICIPATION, NET OF OUTWARDS REINSURANCE 65 -1,149

8 OPERATING COSTS:

a) Acquisition commissions 66 2,887,591

b) Other acquisition costs 67 3,808,870

c) Change in commissions and other acquisition costs

to be amortised 68 -1,025,585

d) Premium collection commissions 69 1,979,195

e) Other administrative costs 70 4,065,891

f) (-) Profit participation and other commissions received by reinsurers 71 387,065 72 13,380,067

9 CAPITAL AND FINANCIAL CHARGES:

a) Investment management charges and interest payable 73 2,837,548

b) Adjustments to investment values 74 331,245

c) Loss on sale of investments 75 4,469 76 3,173,262

10 CAPITAL AND FINANCIAL CHARGES AND NON-REALISED CAPITAL LOSSES RELATING TO INVESTMENTS BENEFITTING POLICYHOLDERS WHO BEAR THE RISK AND INVESTMENTS STEMMING FROMPENSION FUND MANAGEMENT 77 3,436,309

11 OTHER TECHNICAL CHARGES, NET OF OUTWARDS REINSURANCE 78 24,641

12 (-) INCOME ON INVESTMENTS TRANSFERRED TO NON-TECHNICAL ACCOUNT (caption III.4) 79 2,246,042

13 RESULT OF LIFE BUSINESS TECHNICAL ACCOUNT (Caption III. 2) 80 5,686,022

III. NON-TECHNICAL ACCOUNT

1 RESULT OF NON-LIFE BUSINESS TECHNICAL ACCOUNT (Caption I.10) 81 20,629,434

2 RESULT OF LIFE BUSINESS TECHNICAL ACCOUNT (Caption II.13) 82 5,686,022

3 INCOME ON INVESTMENTS IN NON-LIFE BUSINESS:

a) Income on equity investments 83 1,772,951


b) Income on other investments:

aa) land and buildings 85 211,136

bb) other investments 86 13,941,281 87 14,152,417


c) Adjustments to investment values 89

d) Profit on sale of investments 90 2


54

Previous year

175 -8,952

176 2,391,593

177 2,158,533

178 -1,919,930

179 2,080,821

180 4,392,778

181 438,137 182 12,505,518

183 2,769,432

184 39,364

185 1,491 186 2,810,287

187 3,632,338

188 18,761

189 1,926,157

190 7,905,080

191 11,800,745

192 7,905,080

193 1,018,481


195 210,372

196 18,478,263 197 18,688,635


199 1

200 16,509


55


4 (+) INCOME ON INVESTMENTS TRANSFERRED FROM LIFE BUSINESS TECHNICAL ACCOUNT (caption II) 12) 93 2,246,042

5 CAPITAL AND FINANCIAL CHARGES OF NON-LIFE BUSINESS:

a) Investment management charges and interest payable 94 2,723,216

b) Adjustments to investment values 95 674,573

c) Loss on sale of investments 96 97 3,397,789

6 (+) INCOME ON INVESTMENTS TRANSFERRED TO NON-LIFE BUSINESS TECHNICAL ACCOUNT (caption I . 2) 98 10,169,773

7 OTHER INCOME 99 2,007,928

8 OTHER CHARGES 100 6,321,366

9 RESULT OF ORDINARY BUSINESS 101 26,605,868

10 EXTRAORDINARY INCOME 102 4,724,776

11 EXTRAORDINARY EXPENSE 103 78,850

12 RESULT OF EXTRAORDINARY ORDINARY BUSINESS 104 4,645,926

13 PROFIT (LOSS) BEFORE TAXATION 105 31,251,794

14 TAXATION ON PROFIT FOR THE YEAR 106 10,921,778

15 NET PROFIT (LOSS) FOR THE YEAR 107 20,330,016

56

Previous year

203 1,926,157

204 4,961,406

205

206 207 4,961,406

208 11,930,336

209 2,377,694

210 10,290,060

211 16,551,500

212 13,324,723

213 211,701

214 13,113,022

215 29,664,522

216 11,885,837

217 17,778,685

57


58

NOTES TO THE FINANCIAL STATEMENTS

Dear shareholders,

These notes, which pursuant to article 2423 of the Italian Civil Code form an integral part of the financial statements, are presented together with the balance sheet as at 31 December 2005 and the profit and loss account and for the year then ended, for your approval.

Contents and format of the financial statements

The financial statements, prepared in Euros, have been drawn up in accordance with the guidelines set out in Legislative decree no. 173 of 26 May 1997 implementing EEC Directive no. 91/674 governing the statutory and consolidated accounts of insurance companies. In compliance with ISVAP regulation no. 1008 G of 5 October 1998, the financial statements have been prepared as follows:

- the figures of the balance sheet and profit and loss account are expressed in Euros: total rounding differences are recorded under captions F.IV.2) Sundry assets or G.IX.3) Sundry liabilities in the balance sheet and III.10) Extraordinary income or III.11) Extraordinary expense in the profit and loss account;

- the notes to the financial statements, the related attachments and the reclassified balance sheet and profit and loss account are presented in thousands of Euros. Any rounding has been calculated to ensure consistency with the figures in Euros reported in the balance sheet and profit and loss account.

In compliance with the law, the notes are divided into the following three parts:

Part A - accounting policies Part B - Notes to the balance sheet and profit and loss account Part C - other information and Cash Flow Statement

These notes include 32 annexes which analyse the technical and financial components of the insurance and financial operations. In order to provide more complete information, as in the previous years, the reclassified balance sheet and reclassified profit and loss account are attached. The reclassified balance sheet captions are stated net of reinsurance effects. The financial statements have also been prepared in compliance with Legislative decree nos. 174/1995 and 175/1995. The 2005 Financial Statements of the Vittoria Formula Lavoro open pension funds are also attached.

59

Reclassified balance sheet

ASSETS 2005 2004

Investments

Land and buildings 8,414 8,735Investments in group and other companies

- Equity investments 135,324 191,757- Loans 3,688 7115Other financial investments:

- Unit trust units 7,952 8,280- Bonds and other fixed-interest securities 997,885 840,139- Loans 12,222 11,135Deposits with ceding companies 618 976Investments benefiting life policyholders 120,091 130,477Total investments 1,286,194 1,198,614

Receivables

Receivables relating to direct

insurance business from:

- Policyholders 35,336 37,845- Insurance brokers and agents 44,258 44,539- Current account companies 4,481 5,135- Amounts to be recovered from policyholders and third parties 24,243 23,222Receivables relating to reinsurance business 10,375 11,731Other receivables 38,166 16,767Total receivables 156,859 139,239

Intangible assets 28,432 27,368Tangible assets and inventory 4,422 4,433Liquid funds 37,021 36,783Other assets 5,719 3,702Prepayments and accrued income 13,935 13,365

TOTAL ASSETS 1,532,582 1,423,504


60

Reclassified balance sheet

LIABILITIES AND SHAREHOLDERS' EQUITY 2005 2004

Shareholders' equity

- Share capital 30,000 30,000- Share premium reserve 20,142 20,142- Revaluation reserves 6,370 6,370- Legal reserve 5,965 5,076- Other reserves 65,198 52,509- Net profit (loss) for the year 20,330 17,779Total shareholders' equity 148,005 131,876

Subordinated liabilities 18,000 18,000

Technical reserves, net of reinsurance

- Premium reserve 127,659 122,814- Claims reserve 342,833 314,655- Mathematical reserves 572,891 522,901- Reserve for amounts payable 26,724 18,193- Other technical reserves 7,974 6,823- Technical reserves where investment risk

is borne by policyholders and reserves relating to

pension fund management 120,091 130,477Total technical reserves 1,198,172 1,115,863Payables

Deposits from reinsurers 106,301 103,210Payables arising from direct

insurance business due to:

- Insurance brokers and agents 1,960 1,876- Current account companies 4,881 4,663- Guarantee deposits and premiums paid by policyholders 4 61- Guarantee funds in favour of policyholders 1,034 1,374Payables arising from reinsurance business 7,154 7,785Other sums payable 25,168 18,666Total payables 146,502 137,635

Provisions for contingencies and other charges 4,818 4,001Employees' leaving entitlement 5,921 5,424Other liabilities 10,160 9,702Accrued expenses and deferred income 1,004 1,003

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1,532,582 1,423,504


61

Reclassified consolidated profit and loss account

2005 2004Technical accountLife businesses:Direct insurance (+) Gross premiums accounted for 117,760 112,176 (-) Charges relating to claims 91,497 77,192 (-) Change in mathematical and other - technical reserves 42,720 46,479 (+) Other technical captions, net 1,111 1,184 (-) Operating costs 13,754 12,930 (+) Return on investments where the company bears the risk net of the portion transferred to the non-technical account 24,885 22,102 (+) income on investments where policyholders bear the risk - Class D 9,343 8,720 Direct insurance result 5,128 7,581Outwards reinsurance result 614 437Retained direct insurance result 5,742 8,018Indirect and retroceded insurance result -55 -113Result of life business technical account 5,687 7,905Non-life businesses:Direct insurance (+) Gross premiums accounted for 432,416 405,650 (-) Change in premium reserve 8,178 14,727 (-) Charges relating to claims 295,776 290,102 (-) Change in other technical reserves 484 461 (+) Other technical captions, net -3,251 -3,089 (-) Operating costs 111,166 100,365Direct insurance result 13,561 -3,094Outwards reinsurance result -3,172 3,058Retained direct insurance result 10,389 -36Indirect and retroceded insurance result 331 146Total retained direct insurance result 10,720 110 (-) Change in equalisation reserves 260 239 (+) Income on investments transferred from the non-technical account 10,170 11,930Result of non-life business technical account 20,630 11,801Result of technical account 26,317 19,706 (+) Income on non-life business investments net of the portion transferred to the technical account 2,356 2,832 (+) Income on investments transferred from the life business technical account 2,246 1,926 (+) Other income 2,008 2,378 (-) Other charges 6,321 10,290Result of ordinary business 26,606 16,552(+) Extraordinary income 4,725 13,325(-) Extraordinary expense 79 212Profit (loss) before taxation 31,252 29,665(-) Taxation on profit for the year 10,922 11,886Net profit (loss) 20,330 17,779


62

Part A: Accounting policies

The accounting policies applied to the financial statements comply with articles 2426 and 2427 of the Italian Civil Code, Legislative decree no. 173 of 26 May 1997, various regulations issued by ISVAP (Supervisory Institute of private and public-interest insurance companies) and CONSOB guidelines. They are described below. Unless otherwise specified, the accounting policies relating to direct insurance captions also apply to outwards reinsurance.

Insurance technical captions

Classification of risks by line of business

The classification of risks by line of business, for the purposes of the allocation of the gross premiums accounted for and other related transactions, is described in annex I to Legislative decree no. 174 of 17 March 1995 with respect to the life business and in point A of the schedule attached to Legislative decree no. 175 of 17 March 1995 with respect to the non-life business.

NON-LIFE Pursuant to ISVAP regulation no. 734 of 1 December 1997, the allocation of premiums, BUSINESS operating costs, related premium reserves and other technical income and charges to the

different non-life business is performed applying the elements used to calculate the tariffs.

Charges related to claims are directly allocated to the specific line if related to transactions pertaining to an individual event, since allocations are made on the basis of the cover involved. Charges relating to more than one claim are allocated on the basis of the impact of compensation paid during the year. The allocation between current and previous years is proportional to the compensation paid in the relevant year. With reference to the motor third-party liability line, such allocation also takes into account the impact of the number of claims dealt with during the year.

LIFE BUSINESS The allocation of technical captions to the life business is performed on a direct basis as the entire portfolio may be identified in the classification provided for by law.

Gross premiums

NON-LIFE Premiums and related charges, gross of ceded premiums, are recognised as BUSINESS revenues upon maturity, regardless of their recording and actual collection. LIFE BUSINESS With reference to the non-life business, write-offs of a technical nature of individual securities

are directly deducted from premiums as long as they are issued in the same year. With respect to the life business, the caption includes all write-offs, except for those relating to first yearly instalments issued in previous years. Allocation to the year is made through a charge to the premium reserve with respect to the non-life business, while it is implicit in the calculation of the mathematical reserves, the complementary insurance premium reserve and other technical reserves of the life business. Ceded and retroceded reinsurance premiums are accounted for in line with the agreements signed with reinsurers.

63

Operating costs

NON-LIFE Operating costs include: BUSINESS – acquisition commissions LIFE BUSINESS they include the commissions paid on the acquisition and renewal, including tacit, of

contracts. They also include commission bonuses and rappels proportionate to the attainment of performance objectives;

- other acquisition costs they include personnel expenses, logistics costs, costs for services and purchase of goods

of the management departments involved in the assessment, issue and management of insurance contracts. They also include policy issue costs incurred by the agency, commission bonuses and rappels not linked to performance objectives, and medical check-up costs;

- changes in commissions and other acquisition costs to be amortised the caption includes changes in commissions and other acquisition costs to be amortised

at year end with respect to those recorded in the previous year; - premium collection commissions the caption includes commissions paid on collection of premiums related to long-term

contracts;- other administrative costs they include personnel expenses, logistics costs, costs for services and purchase of goods

of the company departments other than those relating to acquisition costs indicated above and those allocated to claims settlement and investment management. It also includes those charges incurred in connection with the termination of agency agreements not subject to compensation;

- profit participation and other commissions received by reinsurers the caption includes profit participation and other contractual commissions paid to

reinsurers for premiums ceded and retroceded.

Premium reserve

NON-LIFE The premium reserve of non-life business is calculated on a pro-rata temporis basis for each BUSINESS contract considering premiums accounted for net of direct acquisition costs and gross of the

fraction of premium pertaining to the subsequent year. For certain lines of business where the risk does not decrease proportionally to the time elapsed or where the relationship between premiums and potential claims costs does not follow the usual criteria, the premium reserve is calculated on the basis of the following rules: – Bond insurance: the mixed criterion established by ISVAP regulation no. 1978 of 4

December 2001 which provides for the pro-rata temporis method with effect from the 2002 2003 Financial Statements together with the additional reserve calculated in accordance with the type of risk as per schedule no. 33 of ISVAP regulation no. 1059 G of 4 December 1998;

– Credit insurance: mixed - lump sum criteria (Ministerial decree of 22 June 1982) until 1991 and pro rata temporis criterion (Legislative decree no. 393 of 26 November 1991) since 1992;

– Miscellaneous damages - hail insurance: the lump sum criterion set out in Ministerial decree of 29 October 1981 and subsequent modification;

– Atomic accident insurance: the lump sum criterion established by the Ministerial Decree of 21 September 1981.

64

The premium reserve also includes: – the reserve for unexpired risks: this reserve is set up to cover risks incumbent upon the

company after the balance sheet date. It is required by Legislative decree no. 173/1997, in order to cover any expected claims charges relating to gross premiums already accounted for, which exceed the reserve for premium fractions increased by the premium to be collected, net of acquisition costs for policies with deferred premium.

– the reserve for damage from earthquakes, seaquakes and volcanic eruptions - Ministerial Decree of 15 June 1984.

Reinsurer premium reserve: this reserve is calculated using the same criteria applied to direct insurance and inwards reinsurance.

Other technical reserves

NON-LIFE This caption includes the ageing reserve for health insurance required by paragraph 5 of articleBUSINESS 25 of Legislative decree no. 175 of 17 March 1995.

As in previous years, the reserve is calculated on a lump sum basis by accruing 10% of gross premiums written on those products which do not consider the policyholder’s age when calculating the premium and include provisions by which the company’s faculty to terminate the contract is limited.

Equalisation reserves

NON-LIFE The equalisation reserves include those amounts allocated in accordance with relevantBUSINESS legislation, their purpose being to balance out any fluctuations in the claim rate in future years

or to cover specific risks. The caption includes: - the credit insurance offsetting reserve pursuant to article 24 of Legislative decree no. 175 of

17 March 1995 as modified by article 80 of Legislative decree no. 173 of 26 May 1997; - the reserve for natural disasters provided for by Law no. 35 of 16 February 1995 and the

Ministerial decree dated 19 November 1996. A breakdown of the accrual for the year to the equalisation reserve split by line of business is given in annex 25 to these notes.

Charges relating to claims paid

NON-LIFE Charges relating to claims of the non-life business include damage compensation paid, related BUSINESS direct expenses, settlement costs and the additional charge to the guarantee fund for road

casualties. Direct expenses are those incurred to avoid or minimise the claim damage, including litigation costs as per article 1917, paragraph 3, of the Italian Civil Code, loss containment costs in the transport and aviation insurance and extinguishing costs in fire insurance. Settlement costs include amounts paid to professionals involved, personnel expenses, logistics costs and costs for services and goods of the company departments allocated to claims settlement and management.

LIFE BUSINESS Charges relating to claims of the life business include sums, annuities, surrenders and claims paid during the year, including those relating to complementary insurance.

NON-LIFEBUSINESS The reinsurers’ share is calculated in accordance with relevant contracts.LIFE BUSINESS

Amounts to be recovered

NON-LIFE The caption includes amounts to be recovered from policyholders and third parties, net of BUSINESS the reinsurers’ share, for claims surrenders on policies with “no claims bonus” clause, excess

clause and subrogation.

65

The difference between the current and previous year-end amounts is taken to the profit and loss account together with the amount recovered during the year.

Payable amounts

LIFE BUSINESS The caption includes the company’s commitments to policyholders for settlement of claims, surrenders and, with respect to expired policies, accrued sums and annuities. Accordingly, the mathematical reserves do not include these amounts. The reinsurers’ share is disclosed.

Claims reserve

NON-LIFE BUSINESS The claims reserve for direct business reflects claims incurred where some or all of such

amounts have not been settled at the balance sheet date. It is calculated considering the specific characteristics of each line and each component forming the ultimate cost. The “ultimate cost” is an estimate of all foreseeable costs based on a prudent assessment of objective evidence (document examination) and forecasts (expected claims settlement time frame and related inflation rates). The assessment of each claim is carried out as follows:

- the claims settlement inspectors prepare estimates for each open position; -company management analyses and checks data and reviews documentation supporting

significant claims.

Claims assessment procedures are based on the following general criteria: - accurate and complete year-end inventory of all claims partly or fully unsettled,

highlighting the disputed amount; - analysis of claims with different positions in order to verify evidence supporting each

position; - separate disclosure of the calculation of personal and property damage; - inclusion of the estimated direct and settlement costs in the claims reserve. Settlement

costs include amounts paid to professionals involved and internal costs relating to company departments in charge of claims settlement and management.

- assessment of claims relating to credit and bond insurance in accordance with the provisions of articles 4 and 5 of ISVAP regulation no. 1978 of 4 December 2001.

Current generation claims are examined at least quarterly to verify their progress and whether the previous assessment was correct. In addition, the “continuous reserve” operating procedure is used and, therefore, at each partial settlement or should new information be gathered, the claims are reassessed. The area coordinators support the area settlement network by verifying whether management guidelines have been correctly applied, with respect to both the merits and methods.

The claims reserve includes claims not yet reported at year end but pertaining to the year. Amounts are calculated considering the average cost of the current generation.

66

The resulting claims reserves are subject to statistical and actuarial checks and adjusted, where necessary, to the ultimate cost.

Mathematical reserves and other technical reserves

LIFE BUSINESS The life business technical reserves are calculated on the basis of the pure premiums and the actuarial assumptions held to be adequate on the date on which contracts were signed, as still valid. Technical reserves are calculated using the rate of return determined on the basis of the related investments for the relevant revaluable benefit and the mortality rate applied when calculating pure premiums. In accordance with relevant legislation, premiums carried forward in the mathematical reserves are calculated on a pure premium basis. The reserve for operating costs is calculated based on the loading for operating costs and other technical bases of the tariffs applied. An additional reserve is calculated for policies with supplementary health and/or professional-related premiums, the amount of which is equal to the annual supplementary premium. The premium reserve for additional accident insurance is calculated on an analytical basis by applying the premiums brought forward criterion to the related pure premiums. The mathematical reserve is never lower than the surrender value. In accordance with ISVAP regulation no. 1380 G of 21 December 1999 implementing the provisions of point 14 of article 25 of Legislative decree no. 174/95, the reserve for contracts relating to sums insured with contractually-guaranteed annuity and to deferred and beneficial life annuities has been adjusted to the demographic survival projection. The adjustment has been made using the probability of settling benefits in the form of annuities. The valuation of the portfolio at 31 December 2005 has led to a total reserve of Euro 2,341 thousand (Euro 2,213 thousand in 2004). Where held to be necessary, mathematical reserves are adjusted to consider the decrease in interest rates on assets covering the same reserves. Pursuant to ISVAP regulation no. 1801-G of 21 February 2001, an ALM (Asset & Liability Management) procedure has been implemented in order to jointly analyse the two asset and liability portfolios for the purpose of calculating the forecast returns of each separate account of the life business.

Reversals and profit participation

NON-LIFE Profit participation includes all amounts pertaining to the year paid and to be paid BUSINESS to policyholders or other beneficiaries, including amounts used to increase technical reserves LIFE BUSINESS or decrease future premiums, if these can be considered as allocation of technical profits

arising from both non-life and life insurance management activities, net of previous years’ accruals which are no longer necessary. Reversals include the partial reimbursement of premiums calculated on the basis of the performance of each contract.

Other technical charges

NON-LIFE Other technical charges include: BUSINESS – with respect to the non-life business, premiums cancelled, justified by write-offs of a

technical nature, relating to single premiums LIFE BUSINESS of previous years,

– with respect to the life business, the cancellation of first yearly premium instalments issued in previous years;

67

- with respect to both non-life and life businesses, write-downs due to policyholders’ bad debts;

- costs relating to goods and services purchased to complement non-life insurance covers; - costs arising from the management of the knock for knock agreement.

Other technical income

NON-LIFE Other technical income includes: BUSINESS – commissions relating to premiums written off included in other technical charges and LIFE BUSINESS relating to non-life and life businesses;

– income arising from the management of the knock for knock agreement and ANIA incentives for scrapping damaged vehicles in the non-life business.

Income on investments transferred from the non-technical to the technical account

NON-LIFE Financial income and charges relating to investments of the non-life business are included BUSINESS in the non-technical account pursuant to paragraph 1 of article 54 of Legislative decree no. 173

of 26 May 1997. That being said, regulations governing financial statements provide that income on investment, net of financial charges, be transferred from the non-technical to the technical account, in accordance with the method established by ISVAP. ISVAP regulation no. 1140 G dated 8 March 1999 established that income on investments to be transferred be proportional to the ratio where the numerator is the sub-total of retained mandatory technical reserves at the end of the current and previous year and the denominator is the total of the sub-total of retained mandatory technical reserves at the end of the current and previous year plus the sub-total of shareholders’ equity and subordinated liabilities at the end of the current and previous year. Mandatory technical reserves consist of the premium reserves, claims reserves, profit participation and reversal reserves, the ageing reserve of health insurance, the offsetting reserve of credit insurance and the equalisation reserve for natural disasters.

Income on investments transferred from the technical to the non-technical account

LIFE BUSINESS Financial income and charges relating to investments of the life business are included in the technical account pursuant to paragraph 3 of article 54 of Legislative decree no. 173 of 26 May 1997.That being said, regulations governing financial statements provide that income on investment net of financial charges, except for unrealised income and capital gains, as well as financial charges and unrealised capital losses relating to investments benefiting policyholders bearing the risk and investments relating to pension fund management, be transferred from the technical to the non-technical account, in accordance with the method established by ISVAP. ISVAP regulation no. 1140 G dated 8 March 1999 established that income on investments to be transferred be proportional to the ratio where the numerator is the sub-total of shareholders’ equity and subordinated liabilities at the end of the current and previous year and the denominator is the total of the sub-total of shareholders’ equity and subordinated liabilities at the end of the current and previous year plus the sub-total of retained mandatory technical reserves at the end of the current and previous year.

68

Mandatory technical reserves for these purposes consist of the mathematical reserves, complementary insurance premium reserves, reserves for payable amounts, profit participation and reversal reserves and other technical reserve, excluding technical reserve where the investment risk is borne by policyholders and reserves relating to pension fund management. If income on investments allocated to the life business technical account in accordance with the above-mentioned criterion is lower than income contractually allocated to policyholders during the year, income on investment to be transferred to the non-technical account is adjusted accordingly and, where required, zeroed.

Inwards reinsurance

NON-LIFE The effects of inward life reinsurance is recorded on an accruals basis, except for risks BUSINESS retroceded by C.I.R.T. (the Italian consortium of impaired life insurance) which, however, are

not material. LIFE BUSINESS If there are no specific negative signs, the effects of non-life inwards reinsurance are

accounted for the year after to which they relate, as the necessary information is not yet available. The related financial movements are recorded in the balance sheet under other assets – other liabilities in the suspense reinsurance accounts. Treaties relating to aviation property damage represent an exception to the above accounting treatment as the space risk business is accounted for on an accruals basis. Indirect business claims reserves generally reflect those reported by the reinsurer and the company supplements them when deemed inadequate.

Retrocession

NON-LIFE Retroceded business mainly relates to class 05 - Aviation property damage - space risks. BUSINESS Captions relating to retroceded business are stated in accordance with the criteria applied to LIFE BUSINESS inwards reinsurance.

Investment captions

C I - Land and buildings

In compliance with paragraph 2 of article 15 of Legislative decree no. 173 of 26 May 1997, land and buildings are considered assets of a long-term nature, except for buildings available for sale.

Improvement costs aimed at extending the building units’ life and increasing their profitability are capitalised. Ordinary maintenance costs are established in a long-term plan and are charged to the profit and loss account on an annual basis.

69

Market value The market value is calculated for each piece of land and building. Market value is the price at which the piece of land or the building can be freely sold by means

of an agreement between two parties (the seller and the buyer) on an arm’s length basis. In particular if:

- both parties have gathered information on the assigned urban use, marketability and registration of title;

- the seller freely sells the asset without being forced by financial difficulties; - the buyer is not being encouraged to purchase by non-market related factors. Furthermore, the following is considered: - the asset has been marketed for a reasonably long time period which allows its fair trading.

The agreement has been signed after having negotiated price and terms.

Each building is valued considering its age, location, structure type and quality, preservation status, possible profitability, any urban limitation and/or restrictions imposed by the Ministry for Cultural Assets and anything which may have an impact on the asset.

Valuation of leased buildings takes into account the contract type, its expiry date and rental, also considering possible adjustments.

Following the provisions of article 18 of Legislative decree no. 173 of 26 May 1997, ISVAP issued regulation no. 1915 G of 20 July 2001. In accordance with the above legislation, in 2001, the company engaged Praxi S.r.l. (Turin) to prepare an appraisal of each asset.

Total market value of buildings is largely above their net book value, as detailed in annex 4.

C II - Investments in group and other companies

Pursuant to paragraph 2 of article 15 of Legislative decree no. 173 of 26 May 1997, investments in group and other companies are considered long-term assets. Group companies

Pursuant to article 5 of Legislative decree no. 173 of 1997 and ISVAP regulation no. 735 of 1 December 1997, group companies are as follows: a) parent companies; b) subsidiaries; c) related companies, other than those included in item b) which are controlled by the same

entity controlling the parent company or subject to common management as defined by paragraph 1 of article 60 of the above decree;

d) associated companies.

For the purposes of this classification, the definition of control is set out in paragraphs 1 and 2 of article 2359 of the Italian Civil Code.

70

Other companies Other companies are those held for strategic or insurance-support purposes. Investments in group and other companies are stated on the basis of the following criteria: - investments in Euros are stated at acquisition cost including related charges; - investments in foreign currency are stated at acquisition cost, including related charges,

converted into Euros using the exchange rates ruling on the date of the transaction.

In the case of a permanent impairment in value, which can be seen in the companies’ approved financial statements, the investment acquisition value is written down accordingly. If the reasons for such write-down no longer exist, the original value is reinstated in subsequent financial statements.

If the impairment in the value of long-term investments in foreign currency is due to exchange rate losses, the permanent nature of such loss should be verified.

If the exchange rate is expected to be recovered in the short to medium-term, the investment is not written down.

Dividends distributed by companies held are recognised when paid.

Reference should be made to annexes 6 and 7 to these notes for information on changes in investments.

C III - Other financial investments

Equity investments This caption includes short-term equity investments which are stated as follows: - listed securities are stated at the weighted average cost or market value, if lower. The

original value is reinstated in subsequent years if the reasons for the adjustment no longer exist;

- non-listed securities are stated at acquisition cost, net of any losses recorded in the companies’ approved financial statements. The original value is reinstated in subsequent years if the reasons for the adjustment no longer exist.

Foreign currency investments are converted into Euros as follows: - acquisitions: at the exchange rate ruling on the date of transaction or subscription; - sales: at the exchange rate ruling on the date of transaction; - market value: at the year-end exchange rate.

Dividends distributed by these companies are recognised when paid. As a token entry, the financial statements include the unlisted investments in Agricola Italo - Somala - Villaggio Duca degli Abruzzi (Somalia) - and E.I.F.A. S.A.- Schaan - amounting to Euro 0.02.

Unit trust units These are stated at weighted average cost or market value, if lower. The original value is reinstated in subsequent years if the reasons for the adjustment no longer exist.

71

Securities and real estate closed-ended unit trusts are stated at acquisition cost.

Foreign currency unit trusts are converted into Euros as follows: - acquisitions: at the exchange rate ruling on the date of transaction or subscription; - sales: at the exchange rate ruling on the date of transaction; - market value: at the year-end exchange rate.

Bonds and other fixed-interest securities In accordance with the ISVAP regulation dated 19 July 1996 (use of derivative financial instruments by insurance companies) and the ISVAP regulation dated 18 June 1998 (classification of investments), the board of directors has issued the guidelines for the classification of securities in portfolio. Fixed-interest securities are classified as follows:

Investment securitiesThey are stated at acquisition cost, including related charges, adjusted in the case of permanent impairment in value. The greater or lower value with respect to their repayment value is amortised on a straight line basis over the period from acquisition to maturity. These securities are held until they mature as the company has the financial resources to do this. Their classification depends on their importance and/or the expected standardisation of the rate of return of the overall technical reserves and separately-managed life business.

Trading securitiesThese are stated at weighted average cost, including related charges, or market value, if lower. The original value is reinstated in subsequent years if the reasons for the adjustment no longer exist. Market cost is as follows: - for Italian listed securities, the average price in December; - for foreign listed securities, the price of the last trading day of the year, rather than the average price which is not representative in this case. Foreign currency securities are converted into Euros as follows: - acquisitions: at the exchange rate ruling on the date of transaction or subscription; - sales: at the exchange rate ruling on the date of transaction; - market value: at the year-end exchange rate.

72

Investments benefiting policyholders bearing the risk They are stated at current value, that is the price and exchange rate of the last trading day of the year. Due to the concept of “policyholders bearing the investment risk”, the accounting treatment applied to the related assets is the current value as it highlights the interrelationship between technical reserves and hedging assets trends.

These investments are classified as follows:

DI - unit-linked and index-linked investments DII - investments arising from pension fund management

Loans

Mortgage loans granted are all expressed in Euros and are stated at the residual principal value since they are secured by mortgages. Loans are all expressed in Euros and are stated at the residual principal value if collectible. They are adjusted through the provision for bad debts.

Other captions

Tangible assets

Tangible assets are stated at cost, net of depreciation calculated on a straight-line basis using rates held to represent their estimated useful lives. Depreciation rates are halved for assets purchased during the year.

Intangible assets

Intangible assets are stated at cost and directly amortised on a straight-line basis as follows: - business and/or product trademarks over ten years; - over a period held to represent their estimated income generating potential for assets

defined by point 2 of article 2426 of the Italian Civil Code; - the costs incurred in conjunction with the convertible subordinate bond issue approved by

the shareholders in the extraordinary meeting of 26 April 2001 over ten years. – over five years for start-up and capital costs pursuant to point 5 of article 2426 of the Italian

Civil Code.

This caption includes non-life and life commissions to be amortised.

NON-LIFE BUSINESS Acquisition costs on long-term contracts are capitalised and amortised over three years from

the year in which they are incurred. The amortisation period is adequate taking into account the term of the contracts and relevant legislation governing the applicability of commission charges.

LIFE BUSINESS The portion of acquisition costs relating to new contracts not subject to outwards reinsurance is capitalised to the extent of the related loading and amortised on a straight-line basis over the term of the underlying contracts within the ten-year limit established by ISVAP circular no. 183 dated 3 September 1992. The amortisation period is deemed adequate. The residual commissions on policies cancelled during the amortisation period are taken to the income statement of the year in which such policies are no longer included in the portfolio.

73

Receivables

Receivables are shown net of the provision for bad debts at their estimated realisable value. With reference to the provisions of article 2427 of the Italian Civil Code and Legislative decree no. 173/97, receivables are all deemed to be due within one year if not otherwise specified in the notes to the balance sheet captions.

Prepayments and accruals

Prepayments and accrued income, accrued expenses and deferred income are used to record costs and revenues on an accruals basis.

These captions include only costs and revenues pertaining to two or more years.

Payables

Payables are stated at their nominal value. With reference to the provisions of article 2427 of the Italian Civil Code and Legislative decree no. 173/97, payables are all deemed to be due within one year if not otherwise specified in the notes to the balance sheet captions.

Employees’ leaving entitlement

This provision includes the actual payable due to all company employees at year end, calculated in accordance with ruling legislation.

Taxation on profit for the year

Taxation on profit for the year is calculated on the basis of the estimated taxable income and stated on an accruals basis in accordance with ruling legislation. In accordance with accounting principle 25 “The accounting treatment of income taxes” issued by the Italian Accounting Profession, deferred taxes are calculated on the basis of the tax rates ruling when the temporary differences will reverse, adjusting previous years’ accruals according to variations in tax rates only if the law enacting the tax rate variation has already been approved at the balance sheet date. Deferred tax assets are recognised when it is reasonably certain that there will be future taxable income greater than the temporary differences generating the deferred tax assets in the years in which such differences will reverse. Deferred tax liabilities are not recorded if it is not probable that the related payable will arise or when immaterial. Any deferred tax liabilities are provided for in the caption “Provision for taxation”, while deferred tax assets are recorded under “Other assets”.

Conversion into Euros

Captions expressed in foreign currencies are converted into Euros at spot rates. Balance sheet captions still existing at year end are converted at year-end exchange rates.

74

Tax position

The company availed itself of the provisions (paragraph 44, article 2) of Law no. 350 of 24 December 2003 (2004 Finance Act), published in the Official Journal of 27 December 2003, and settled all years up to 2002 for direct and indirect tax purposes, except for the situation outlined below for 1992. The company was served an assessment report for that year arising from a documental inspection. The tax authorities contested the deductibility of the accruals to the life business mathematical reserves. The appeal filed by the company was discussed before the Milan Local Tax Court which admitted it. The Milan tax authorities appealed against this decision before the Milan Regional Tax Court, which reversed the decision taken by the Milan Local Tax Court. As a result of such decision, the company received a tax assessment notice of Euro 648,385, which has been recognised as an expense in the profit and loss account for 2004 on a prudent basis. The decision of the Supreme Court is still pending. Considering previous law cases, the company is confident of winning the case. Vittoria Assicurazioni S.p.A. opted to use the consolidated tax system pursuant to articles 117 and following of Presidential decree no. 917 of 22 December 1986, acting as the consolidating company. The effective period is from 2005 to 2007. The fiscally-consolidated companies under this system are Immobiliare Bilancia S.r.l., Immobiliare Bilancia Prima S.r.l., Immobiliare Bilancia Seconda S.r.l. and Immobiliare Bilancia Terza S.r.l.

75


76

and profit and loss account

BALANCE SHEET

ASSETS

CLASS B - INTANGIBLE ASSETS

of which:

B.1 - ACQUISITION COMMISSIONS TO BE AMORTISED

B.1a - Acquisition commissions to be amortised - Life business

the year

B.1b - Acquisition commissions to be amortised - Non-life business

- commissions on policies written during the year

Commissions to be amortised may be analysed as follows:

- 1,026

+ 1,035

6,434

- 349

2004 2005 Change

6,503 + 9077,410

- 1,712

Part B: Notes to the balance sheet

2004

– commissions on policies written during the year

Commissions to be amortised may be analysed as follows:

+ 7,660

12,818

- amortisation charges

5,408

12,937

2004 2005

Intangible assets are stated net of amortisation of Euro 11,352 thousand and, in the lifebusiness, net of the residual amount to be amortised of cancelled policies reversed to the profitand loss account; Amortisation is calculated in accordance with that stated in "Part A -Accounting policies" of these notes.

2005 Change

Change

27,367 + 1,06528,432

Should all the policies arrive at their natural maturity, the different life used for amortisation withrespect to the actual policy duration would have led to an increase, gross of the related taxeffect, in shareholders' equity of Euro 5,478 thousand (2004: Euro 3,595 thousand) and Euro14,203 thousand (2004: Euro 14,250 thousand) in the life and non-life business, respectively.

2004

- 119

2005 Change

– amortisation charges - 6,753

- commissions on policies cancelled during

77

B.3 - START-UP AND CAPITAL COSTS

B.5 - OTHER DEFERRED COSTS

Total

Reference investments may be detailed as follows:

286 - 582004

NewAge system - Other deferred costs relate to costs of a long-term nature mainlyincurred for the acquisition and development of the IT application packages relating to thedevelopment of the company's IT management system and the settlement and agencynetworks. In 2005, the NewAge application package became the integrated managementtool used in all relationships between agencies, the sales network, the settlement networkand the company. Therefore, all individual IT applications developed to date have beengrouped in a single tool which also currently covers the technical management of themotor and bond lines of business. Accordingly, costs incurred to date have been addedtogether and considered the overall cost for the package. The resulting amountadequately reflects the value of the current configuration of the project.During the year, the project was extended to cover the other non-life lines of business,escluding aviation, marine, bonds and credit. The estimated useful life of the NewAge package is ten years.

CLASS C - INVESTMENTS

14,086

2005

15,328 1,242

-60693143Other deferred charges

1,166,102

633

2004 2005 Change

The amortisation charge for the year amounts to Euro 58 thousand.

-1,164

(in thousands of Euros)

14,64512,086-

IT software applications

2004

1,164

The change is mainly due to acquisitions (Euro 4,061 thousand) and amortisation (Euro 2,829thousand).

50 -93

Change

15,328

Deferred costs are stated at cost and directly amortised. Variations may be analysed asfollows:

2,559

Change

+ 1,24214,086

+ 97,964

The comparison with market values by investment type is shown in the annexes to these notes.

Registered office and agency restructuring

1,068,138

2005

IT software applications under

2004

2005 Change

The caption relates to costs incurred in conjunction with the convertible subordinate bond issueapproved by the shareholders in their extraordinary meeting of 26 April 2001.

344

78

C.I.1 - OPERATING BUILDINGS

C.I.2 - BUILDINGS USED BY THIRD PARTIES

C II - Investments in group and other companies

of which:

C.II.1 - EQUITY INVESTMENTS

C.II.1b - Subsidiaries

C.II.1c Related companies

The reduction is the result of decreases of Euro 72,350 thousand for the repayment of the quotapremium and increases of Euro 1,495 thousand for the quota capital increase. Securities allocated to the special managed life business amounted to Euro 33,115 thousand.

2005

Piacenza, via S. Antonino 28

Foggia, via Scrocco 60Monza, via Cavallotti 11

Change2004

- 56,4342005

191,757 135,323

agencies

8,266

- restructuring work in certain buildings housing

g8,587 - 321

1,139

The decrease is a consequence of the following:

2004

148148

The caption includes:

mandatory - Law no. 413/91

– sale of units in:

2004

Change

- 70,8552004

60,932131,787

The total values of subsidiaries, related associated and other companies are as follows.Reference should be made to annexes 6 and 7 of these notes for information on changes ininvestments in these companies.

198,872Change

1,175

8,735

The following revaluations have been made:

- 321Change

monetary - Law nos. 576/75 and 72/83fiscally-driven and voluntary

8,4142004 2005

C.I Land and buildings

568

258

139,011

- 207

+ 34

- 101

- 47

- 59,861

2005

2004 2005

2005 Change

2005 Change

-

-2004

258Change

79

C.II.1d Associated companies

C.II.1e - Other

C.III.3 LOANS TO GROUP COMPANIES

of which:

C.II.3d Associated companies

C III Other financial investments

of which:

C.III.1 - EQUITY INVESTMENTS

of which:

C.III.1a - Listed shares

--

- 3,4277,115

The decrease is due to the partial repayment of the loan granted to Laumor B.V. (Euro 3,500thousand). Furthermore, the company capitalised interest accrued during the year. Referenceshould be made to the section "Relationships with group companies and related parties" of thedirectors' report for greater details.

The increase is due to the repayment of the share premium (Euro 3,000 thousand) by YarpaInternational Holding and acquisitions of investments (Euro 5,431 thousand) by White FinanceS.A.

2004 Change2005

3,688

Change

Change

+ 158,504

-

-

2004 2005

2004

17,813 + 2,4312004 2005 Change

2005 Change

2004 2005

The rise is mainly due to the subscription of the relevant portion of the share capital increase ofCAM FINANZIARIA S.p.A. (Euro 10,144 thousand). Other changes are detailed in the section"Fixed-interest securities, investments and unit trusts" of the directors' report.

2004

53,88941,899

20,244

- 3,427

2004

Change

+ 11,990

2005

3,688

Change

7,115

2005

1,018,059859,555

--

80

C.III.1b - Unlisted shares

– partial repayment of the PIRELLI OFFICE FUND CLOE closed-end fund

C.III.3 BONDS AND OTHER FIXED-INTEREST SECURITIES

of which:

C.III.3a Listed

836,577 989,878

management and trading transactions

+ 2,151- transfer, due to policy surrenders,

997,885

– increase arising from ordinary portfolio

2005 Change

Bonds in portfolio at 31 December 2005 may be broken down by issuer as follows: Italiantreasury bonds 67.5%, foreign treasury bonds 15.7%, treasury bonds of emerging countries2.3%, domestic corporate bonds 2.6% and foreign corporate bonds 15.2%.

+ 157,746

2004

The increase is due to:

+ 153,301

- 44,600+ 196,356

- adjustments to market values - 1,914

+ 1,914

- 1,002

of bonds from class D to class C at market value + 826– positive issue discount adjustments

– positive trading discount adjustments– negative trading discount adjustments

– negative issue discount adjustments - 682+ 252

840,139

2004

Securities allocated to the special managed life business amounted to Euro 542,433 thousand.

C.III.2 UNIT TRUST UNITS

The caption, amounting to Euro 0.02, relates to the unlisted shares of Soc. Agricola ItaloSomala and E.I.F.A. S.A. and is stated as a token entry.

-2005

8,280


Change

--

2004 2005

- 328

- 328

7,952

The decrease follows the company's decision to reduce its investments in equity and monetaryOEICs.

Change

- adjustments to zero-coupon bond values– decrease due to repayments and sales

2004 Change2005

81

C.III.3b Unlisted

C.III.4 LOANS

of which:

C.III.4a Secured loans

C.III.4b Loans on life insurance policies

thousand;- loans due after one year amount to Euro 4,542

+ 4,500

+ 4,4452005

+ 8


8,007

– decrease due to repayments and sales- adjustments to zero-coupon bond values- transfer, due to policy surrenders

The caption is only composed of the mortgage loans granted by the company. Changes aredetailed in annex 10 to these notes.

+ 586

Mortgage loans carry a minimum interest rate of 3%.

3,977 4,563

- loans due after five years amount to Euro 3,432

- 4– adjustments to market conditions

- 166

- increase arising from ordinary portfolio management andtrading transactions

Change

+ 107of bonds from class D to class C at market conditions

2004

3,562

2005 Change

12,222

Pursuant to point 6 of article 2427 of the Italian Civil Code and Legislative decree no. 173 of 26May 1997, we note the following:

5,591Change

thousand.

Change

+ 1,08611,1362004

2004 2005


20052004

5,664 + 73

The caption includes loans granted to company policyholders. Changes are detailed in annex10 to these notes.

82

C.III.4c Other loans

C.IV Deposits with ceding companies

of which:

- loans due after one year amount to Euro 1,582

2005 Change

- 358

120,091

This caption relates to the indirect insurance technical reserves.

976 618

2004 2005 Change

CLASS D - INVESTMENTS BENEFITING LIFE POLICYHOLDERS BEARING THE RISK AND INVESTMENTS AIRISNG FROM PENSION FUND MANAGEMENT

thousand;

1,568

Pursuant to point 6 of article 2427 of the Italian Civil Code, we note that, given their nature,these loans can be considered to be due after more than five years. The loans carry an interestrates equal to the rate of return of separately managed businesses retroceded to policyholdersand increased by 1 point.

2004


- 10,386130,477

The minimum interest rate of 1% is applied on loans granted to the agency network to upgradetheir IT systems.

The caption mainly includes loans granted to company employees and agents. Changes aredetailed in annex 10 to these notes.

1,995 + 427

thousand.- loans due after five years amount to Euro 667

2004 2005 Change

83

+ 3,383

switches - 14,454

+ 2

- increase due to securities acquisition and

– adjustments to current value: write-downs - 394

+ 1,106

+ 4,195

– closing accruals

- capitalisation of zero-coupon securities

subscriptions- decrease due to sales, redemptions and

Unit-linked portfolio

- 127

– adjustments to current value: revaluations

Index-linked portfolio

+ 4,371

D.II Investments arising from pension fund management

+ 44

– opening accruals - 90

- 9,035- decrease due to redemptions

+ 183

- other assets- 569

2005

– adjustments to current value: revaluations- 167

+ 1,333- change in liquid funds

- profit/loss on internal fund management

- 497

+ 116– change in other assets

– adjustments to current value: write-downs

+ 214

118,169 - 10,2752005

Variations by business may be analysed as follows:

A breakdown of investments by business is given in annex 11 to these notes.

D I Investments relating to unit-linked and index-linked policiesChange2004

128,444

1,922Change

subscriptions

2004

- increase due to securities acquisition and Variations by type may be analysed as follows:

A breakdown of investments by business is given in annex 12 to these notes.

2,033 - 111

- decrease due to sales

– profit/loss on sector management

- change in liquid funds

84

D bis. I Non-life business

of which:

D BIS.I.1 PREMIUM RESERVE

D BIS.I.2 CLAIMS RESERVE

D bis. II Life business

of which:

D BIS.II.1 MATHEMATICAL RESERVES

D BIS.II.3 RESERVE FOR PAYABLE AMOUNTS

D BIS.II.5 OTHER TECHNICAL RESERVES

39

2004

23,264

39,3712004

25,85923,2052004

CLASS D bis - REINSURERS' SHARE OF TECHNICAL RESERVES

Change

25,919

+ 2,955

2005

-2004

2005

36,416

78,860 78,1112004 2005

117,482

2004

21

- 749

Change

+ 4,861

+ 2,654

21

+ 2,655

Change

+ 12004 Change2005

2005

Change

2005

2005

Change

The caption relates to reserves for operating costs of classes I - Whole and term life insuranceand IV - Health insurance.

Change2005

They may be broken down by line of business as follows:

+ 2,2062004

115,276

138,540

Reference should be made to the comments set out in Class C - Technical reserves of thebalance sheet liabilities for their breakdown by reinsurance business.

143,401Change

38

85

of which:

of which:

139,238

- 3,4342005

E.I Receivables relating to direct insurance

44,25844,539

E.I.2 - RECEIVABLES RELATING TO DIRECT INSURANCE DUE FROM INSURANCEBROKERS AND AGENTS

2004

617

33,793

The caption refers to premiums being collected, mainly relating to policies issued by proxy byother insurance companies, net of the related provision of Euro 1,126 thousand.

2004

- 2,507

37,227

108,319

E.I.1a Current year's direct insurance premiums due from policyholders

+ 927

2005

2004

37,844

- 2,421110,740

2005E.I.1 DIRECT INSURANCE PREMIUMS DUE FROM POLICYHOLDERS

Change

2005 Change

Receivables from agents include Euro 9.450 thousand for recharges to the portfolio of theleaving indemnities paid to agents. Euro 1,960 thousand of the residual amount receivable ofEuro 34,808 thousand was still to be paid on 28 February 2006.

CLASS E RECEIVABLES Change2005

35,337

Receivables from agents include those from Aspevi S.r.l. (Euro 928 thousand) and Aspeca S.r.l. (Euro 33 thousand).

2004

- 281

The caption relates to receivables due from insurance brokers and agents, net of the relatedprovision of Euro 3,665 thousand.

1,544

Change

In accordance with Legislative decree no. 173 of 26 May 1997, the caption is stated net of therelated provisions totalling Euro 7,750 thousand at year end.

+ 17,622156,8602004

Change

2004 2005 ChangeE.I.1b - Previous years' direct insurance premiums due from policyholders

86

of which:

This caption mainly includes current account receivables showing the co-insurance technicalresult.

5,135 - 6544,481

E.I.3 RECEIVABLES RELATING TO DIRECT INSURANCE DUE FROM INSURANCECOMPANIES - CURRENT ACCOUNTS

24,243

- 1,35611,731

This caption includes current account receivables showing the reinsurance technical result, netof the related provision of Euro 1,603 thousand.

11,731 10,375 - 1,356

E.II.1 RECEIVABLES RELATING TO REINSURANCE BUSINESS DUE FROM INSURANCE ANDREINSURANCE COMPANIES

The caption includes amounts to be recovered from policyholders and third parties for excessclauses and subrogations.

2004 Change2005

2005

E.I.4 AMOUNTS RELATING TO DIRECT INSURANCE TO BE RECOVERED FROMPOLICYHOLDERS AND THIRD PARTIES

2005 Change

Change

23,222 + 1,0212004

20052004 Change

10,375

2004

thousand.

E.II Receivables relating to reinsurance business

- receivables due after five years amount to Euro 3,356

- receivables due after one year amount to Euro 8,070thousand;


87

of which:

F.I Tangible assets and inventory:

Change

16,767

- receivables due from tax authorities

36,757 thousand

16,284

+ 21,399

Other receivables are shown net of the related provision of Euro 1,357 thousand.

- receivables due after five years amount to Euro 79thousand.

Pursuant to point 6 of article 2427 of the Italian Civil Code and Legislative decree no. 173 of 26May 1997, we note the following: - receivables due after one year amount to Euro

tax receivables and related interest are considered to be due after one year. The caption also includes the receivables arising from the adoption of the Italian tax consolidation system

397

- receivables from insurance agreements

2005 Change

38,1662004

E.III. Other receivables

The more significant items forming other receivables are as follows:

79

20,340

- receivables for sundry guarantee deposits

51

11- rental receivable and related expenses

they relate to guarantee deposits paid against renewable utility contracts. Considering the duration of the related contracts, they are due after more than five years

- receivables from employees

– receivables from real estate operators for advances paid in connection with a real estate area in Milan.

- guarantee deposits on leased buildings

CLASS F - OTHER ASSETS2004 2005

45,309

733

+ 2,60947,918

4,434 - 122004 2005

4,422Change

88

of which:

Total

Changes in liquid funds are analysed in the cash flow statement.

of which:

-2252,000

3,635 67

+ 238

+ 88

2004

37,021

1,569Change

F.I.2 REGISTERED CHATTEL PROPERTY

252

213

3,568

447 - 167614

2004 2005 Change F.II Liquid funds

2004 2005 Change

Change2004 2005

57

F.I.3 PLANT AND MACHINERY

340

This caption may be broken down as follows:

2005

3,568

Furniture

+ 673,635

F.I.1 OFFICE FURNITURE AND MACHINES AND INTERNAL TRANSPORT SYSTEMS


Fittings

2004

Assets are stated at cost, net of depreciation.

The decrease is due to acquisitions (Euro 1,658 thousand), dismissals, net of the relatedaccumulated depreciation (Euro 18 thousand) and the depreciation charge for the year (Euro1,652 thousand).

2005

221,356

Change

Electronic office machines 1,775

15876Ordinary office machines

136133

36,783

Liquid funds at year end mainly comprised payments made by agencies in December.

89

of which:

+ 23

F.IV.2 SUNDRY ASSETS

and life business

46

F.II.2 CHEQUES ON HAND AND CASH-IN-HANDChange

36,760Change

+ 215

6,475

129

2004 2005

previous year taxable items. Reference should be made to the table set out in the section "Notes to the consolidated balance sheet and profit and loss account"

– deferred tax assets relating to

4,092

F.IV Other assets

2004

+ 2,383Change

The caption includes cash and cheques in the company's safe at year end.

2004 2005

23

F.II.1 BANK AND POSTAL ACCOUNTS

36,975

- giro account between non-life

2004 2005

2- deferred inwards reinsurance premiums - invoices to be issued and credit notes to be received

5,399– commissions retroceded from managers of

755

Change

+ 2,3836,475

The caption is made up as follows:

4,0922005

unit trusts

190

90

of which:

LIABILITIES AND SHAREHOLDERS' EQUITY

of which:

G.3 OTHER PREPAYMENTS AND ACCRUED INCOME

231 228

+ 57013,365 13,935

148,005

466

+ 16,129

Reserves and related changes are detailed in the schedule of shareholders' equity.

131,8762004

A.I Subscribed share capital or equivalent fund

2005

The share capital at 31 December 2005 comprised 30,000,000 ordinary shares of a nominalvalue of Euro 1 each, authorised, issued and fully paid-up.

30,000Change

G.1 INTEREST20052004

2004

13,241

G.2 RENT INSTALMENTS

12,714 + 527Change

Change

It mainly relates to interest on fixed-interest securities amounting to Euro 13,150 thousand.

2005

2004 2005 ChangeCLASS G - PREPAYMENTS AND ACCRUED INCOME

Change

+ 46

They mainly relate to prepaid rental to third parties.

- 3

4202004 2005

The caption relates to prepaid invoices.

-30,0002005

ChangeCLASS A - SHAREHOLDERS' EQUITY

2004

91



Balance at 31 December 2

Dividend distribution

Allocation of 2001 net profit

2002 net profit


Allocation of 2002 net profit

2003 net profit



2004 net profit

Balance at 31 December 2Dividend distribution

2005 net profit

Balance at 31 December 2(1) It includes the reserves as per Laws no. 72/83, no. 295/78 and no. 413/91


=

= Allocation of 2003 net profit

=

=

30,000

30,000

=

=

=

537

30,000 20,142

757

= =

3,636

=

=

6,907

26,589

- 3,300=

=

12,806

= =

33,49620,142

- 3,600

96,94410,744

=

12,806

106,450

- 3,600

- 7,444

12,806

year

- 3,300

6,370

=

for the

Total Technical Net profit

=

capital

3,09930,000

= =

Legal Share

reserve premium

Available

reserve

reservereserves

=

20,142

=

6,370

=

Share

- 3,900=

= =

683 =

Variations in shareholders' equity may be analysed as follows as required by article 2427 of theItalian Civil Code:

-

2005

+ 2,5512005 Change

6,370

2004 2005 Change

+ 889

6,370

A.IV Legal reserve2004

Change

-

=

- 9,206

A.VII Other reserves

5,076 6,370

2004 2005

131,876

2005

65,198

20,14220,142Change

A.II Share premium reserve

+ 12,689

4,319

A.III. Revaluation reserves2004

=

17,779 20,3302004

A.IX Net profit for the year

17,77952,509

5,076 5,965

= 8,523

15,14715,147=

52,509

=

20,142 6,370

= =

=

=

=

The caption relates to the available reserve which increased during the year following theallocation of 2004 net profit as per resolution of shareholders of 29 April 2005.

15,14742,019 117,99720,142 6,370

- 3,900= =

= 10,490= - 11,247

=

= 17,77917,779

=

=

Change

= - 4,200 - 4,200

= =

30,000 5,965

=

Allocation of 2004 net profit 889

=

=

12,689 - 13,579 =

=

20,330 20,330

148,00520,330

= = =

65,198

92


Nature/Description

(*)Share capital

Equity-related reservesShare premium reserve (1)

Revaluation reservesRevaluation reserve as per Law no. 72/1 (2)Revaluation reserve as per Law no. 295Revaluation reserve as per Law no. 413

Income-related reservesLegal reserveOther available reserves (3)Retained earnings

Total shareholders' equity

Non-distributable amount of share premium reserve 35Non-distributable amount (4)Residual distributable amount

(*) A: share capital increase B: to cover losses C: dividends


19/5/78 576/75 14/5/79 576/75 15/4/81 576/75 28/6/88 576/75 28/6/88 72/83 28/6/88 72/83

A, B, C

Possibility of use

30,000

amount

20,142 A, B, C20,142

760

112,040

Extraordinary shareholde recording

(1) Pursuant to article 2431 of the Italian Civil Code, this reserve is fully distributable only when the legal reserve has reached theminimum amount required by article 2430 of the Italian Civil Code.

111,245

(4) It relates to the share premium reserve and the non-distributable portion allocated to cover deferred costs not yet amortised.

(3) The changes arose in 2001 following a bonus issue. (2) These reserves can be reduced only in compliance with the provisions of points 2 and 3 of article 2445 of the Italian Civil Code.

Date of resolution of

A, B, C2,330

A, B, C910

3,130

20,330 28,088

BA, B, CA, B, C

-65,198

20,330

148,005

5,965 65,198

2,330 910

3,130

losses

in the previous four years

Summary of utilisations

reasonsother

Amount at to cover

The nature and possibility of use of reserves are set out below, as required by the above-mentioned article of the Italian Civil Code:

31/12/2004Available

18,000

The caption relates to the convertible subordinated bond issue approved by the extraordinaryshareholders' meeting on 26 April 2001.

The bond, named "Vittoria Assicurazioni S.p.A. Fixed/Floater 2001/2016", a subordinated bondconvertible into ordinary shares, was fully subscribed and 60% and 40% allocated to the non-life and life business respectively, in accordance with the resolution of the shareholders.

As required by Circular no. 8 issued by the Treasury Minister on 16 March 1984, the reservesused for capital increases are detailed below:

Year of As per

CLASSE B - SUBORDINATED LIABILITIES

18,000 -

1988

3,099 1990

2005 Change2004

198813

258

Visentini Law1978

1982516 1980258

1,020

Amount

93

of which:

Direct insurance risks Inwards reinsurance risks Gross reserves Reinsurers' share Retrocessionaires' share Net reserves


Pro-rata temporis reserveCatastrophe premium reserveReserve for unexpired risksPremium reserve for earthquakes, seaquakes and volcanic eruptions (Ministerial decree of 15 June 1984) 1,646

9,350

+ 4,846691

150,787142,4742004 2005

4,846

158,060

4,594

1,390

9,350

166,377

122,814

159,2301,170

39,100

CLASS C - TECHNICAL RESERVES

- 516166,377 + 8,317

654

C.I Non-life business

1,221,4822004 2005

+ 97,556Change

1,123,926

158,060

167,031

Change2004

+ 7,801

The premium reserve is made up as follows (thousands of Euros):

159,230

2005

556,197

C.I.1 - PREMIUM RESERVE

Changes of the year split by business and type are detailed in annexes 13 and 25 to the notes.

2004

592,170 + 35,973

2004 2005

+ 7,801167,031+ 3,375

The direct insurance premium reserve, calculated in accordance with the pro-rata temporiscriterion and the specific criteria set out in "Part A - Accounting policies" for each line, is madeup as follows:

271 - 420127,660

35,725

Change

Total direct insurance premium reserve

2005 Change

94



Motor property damageAviation property damageCargo insuranceFire and natural eventsMiscellaneous damageCredit insurance

314,655

8502005

+ 260

The reserve has been recognised taking into account the average value of the results of suchcalculations. The analysis showed that the estimates were correct and therefore that thereserve was adequate in relation to generations still open. The claims reserves calculated asabove are subject to verification by the actuary engaged for motor third party liability pursuantto the Ministerial decree of 28 January 2004 and the provisions of the supervisory authorities.

They relate to direct insurance and are composed of the ageing reserve for health insurance.

1,836 + 483Change

391,336

- 487

2004

2,319

In the measurement and verification of the claims reserves at ultimate cost, the company usedthe Fisher-Lange actuarial method, which considers the latest financial statement historicalfigures to define its parameters: average cost, no pay-out balance/reopened claims andsettlement rate. The company held that the Fisher Lange method gave estimates that better fitits business than those obtained using the Chain Ladder and Bornhuetter-Ferguson alternativemethods. Reserves have not been discounted to present value but adjusted using suitableassumptions about the claims cost growth rates. The sensitivity analysis has been obtained byadjusting the basic situation using different assumptions about claims cost trends,interpolations of observed data and different weighting criteria for the various years.

- 262+ 28,178

+ 27,429420,944

C.I.5 - EQUALISATION RESERVES

C.I.4 - OTHER TECHNICAL RESERVES

The claims reserve is made up as follows (in thousands of Euros):

419,0782004

342,833

Change

Line of business

1,876

2004

2004 Change

1,616

They only related to direct insurance. Their breakdown by business is as follows:

2005

C.I.2 - CLAIMS RESERVE 2005

1,366

393,5152,179

Change

77,232

- 313+ 27,742

76,745+ 27,429

11101463 535

123

2005

69

2004

1,866420,944

1,628

2005

1381381,010

393,515

63

95

(in thousands of Euros) Risk category Sums and Technical

annuities reserves

Temporary 1968 - 19771978 - 19891990 - 19971998 - 2001from 2001 3%

Adjustable 1969 - 1979

Indexed 1980 - 1988

Other

Revaluable 1988 - 1989

1990 - 1996

1997 - 1999

from 2000

LTC 2001 - 2004from 2004

Dread disease from 2003

Pension fund from 1999

Index-linked from 1997

Unit-linked from 1998

Total ordinary

AIL revaluable 1986 - 1998

1999 - 2004Total lines of bus

* Due to the effect of the contractually guaranteed revaluation, technical rates have increased to:

567,729

financial

Total changes to reserves split by business and type are detailed in annexes 14 and 27 tothese notes.

10,591

Year of issue Technical basis

4%

SIM 91

3% *

4%4%

598,750Change

267

SIM 81 3% - 4%

SIM 91 at 70%

3% * SIM 51

SIM 51

SIM 51

85,490

The life business technical reserves are made up as follows:

2,691,916

4% *

713,406

2004

revaluable policies: Vittoria Valore Crescente 3.86% Vittoria Rendimento Mensile 3.77%indexed policies: 5.40% adjustable policies: 4.80% AIL revaluable policies: 4.25%

211

SIM 81

2.5% -1

SIM 81-91

SIM 71

SIM 91

2% *

SIM 61

C.II - Life business

629,312 + 61,583

demographic

SIM 51

The main actuarial assumption relating to direct insurance technical reserves at 31 December2005 are as follows

SIM 91

-1

SIM 81

(1) SIM 91 has been reduced on a percentage basis to take into account the reinsurance market generally accepted mortality and LTC

546,106

3% *

85,435

-1

C.II.1 MATHEMATICAL RESERVES

3% *

SIM 91

---- ----

+ 52,6442005

0%

0%

722,094

581,774

2004 2005

21 23

2

1,423,840

66

62,984 2.5%

Change

2,704,206 3% *

4% *

32,731

1,922

8,688

1,084,533

2.5%

32,984

1,922

409

12,290

57

60

96




+ 8,527

+ 8,531

25,859

Change

+ 49,990

Change

14

+ 2,654

2005

- 7

522,901- -

- 42593 551

-

Change

C.II.4 - PROFIT PARTICIPATION AND REVERSAL RESERVE

13

2004

18,193 + 8,531

- 2

The profit participation and reversal reserve is made up as follows (in thousands of Euros):

572,891

545,513

13

-

598,199 + 52,686

23,205+ 52,644

2004

18,204

C.II.2 COMPLEMENTARY INSURANCE PREMIUM RESERVE

546,106

20052004

+ 4

21 -

26,724

26,745 + 8,531

- -

18,214

598,750

Change

18,214

21

-

10

11

- 2

26,7312004

The reserve for payable amounts is made up as follows (in thousands of Euros):

2004 2005

26,745

The mathematical reserves are made up as follows (in thousands of Euros):

C.II.3 RESERVE FOR PAYABLE AMOUNTS

2004 2005

This reserve only relates to direct insurance.

212 205Change

-

13

-

-12

-

1

-

- 210

-11

20051

2005 Change

- 211

97



of which:

Index-linkedUnit-linked

774

3,599

-

3,601

529 30

2

20053,182

Class V

The other technical reserves are made up as follows (in thousands of Euros):

2

39-

+ 1

Change

+ 417

2004

CLASS D - TECHNICAL RESERVES WHERE INVESTMENT RISK IS BORNE BY POLICYHOLDERS AND RESERVES ARISING FROM PENSION FUND MANAGEMENT

2005

38

3,562-

Class IV

Class I 2,285 350

They may be broken down by type as follows:

3,184

+ 4163,146

Change

- 111

+ 32,734

-+ 417

2,552

C.II.5 OTHER TECHNICAL RESERVES2004 2005

Class VI

20

2004

Change

3,184

Class III 245

This reserve relates to operating costs and may be broken down by business as follows:

3,601

2005

+ 417

120,091

D.I Reserves arising from unit-linked and index-linked policiesChange

130,477

2004

- 10,386

128,444 - 10,275118,169

2,0332005 Change

+ 85,435

1,9222004

D.II Reserves arising from pension fund management

2004 2005

98

of which:


Sofigea as per article 7 of Legislative decree

of which:

They are made up as follows:

Change

The caption includes balances not yet settled and leaving incentives to be paid upontermination of the agency contract.

Change

Payables arising from direct insurance business2005

7,879

1,960

CLASS G - PAYABLES AND OTHER LIABILITIES

57,035 + 7,092

2005 Change

2004

7,974

2004

+ 84

G.I.1 - PAYABLES ARISING FROM DIRECT INSURANCE DUE TO INSURANCE BROKERSAND AGENTS

- 95

1,876

49,9432003 2004

106,301

+ 816

Change

3,260

2004

CLASS E - PROVISIONS FOR CONTINGENCIES AND OTHER CHARGES

+ 816

E.3 OTHER PROVISIONS

tax deferrals on realised gains on the sales of investment securities

4,001

– decrease following the utilisation of deferred tax liabilities of the previous year, mainly on realised gains on the sale of investment securities -577

4,076

-2005


1,497

2004 2005 Change

2004 Change2005

This caption relates to the direct insurance technical reserves.

CLASS F - DEPOSITS FROM REINSURERS

+ 3,0912005

103,210

E.2 PROVISION FOR TAXATION

– accrual for deferred tax liabilities, mainly relating to the

4,817

– utilisation for the payment of tax instalments

2005 Change

-104

2004

741

7412004

741 -

This caption relates to the following provision:

741Change

99

Change

G.I.2 - PAYABLES ARISING FROM DIRECT INSURANCE DUE TO CURRENT ACCOUNT WITHCOMPANIES

2005

- 57

2004 2005 Change

G.I.3 - PAYABLES ARISING FROM DIRECT INSURANCE DUE TO GUARANTEE DEPOSITSAND PREMIUMS PAID BY POLICYHOLDERS

This caption includes guarantee deposits on insurance guarantees paid by policyholders.

4

G.I.4 - PAYABLES ARISING FROM DIRECT INSURANCE DUE TO GUARANTEE FUNDS INFAVOUR OF POLICYHOLDERS

2004 2005

Pursuant to paragraph 6 of article 2427 of the Civil Code and Legislative decree no. 173 of 26May 1997, we note that the above payables are all due after more than five years.

61

This caption includes current account payables showing the co-insurance technical result.

+ 2184,663 4,881

5,424 5,921

The increase may be analysed as follows:– decrease due to entitlements paid to

+ 497

- 818leaving personnel and advances paid– increase due to the accrual for the year

Pursuant to point 6 of article 2427 of the Civil Code and Legislative decree no. 173 of 26 May1997, we note that the above payable is due after more than five years.

+ 1,315

Change2004

2005 Change

G.II - Payables arising from reinsurance business due to insurance and reinsurancecompanies

This caption mainly includes the payable due to Consap for the contribution to the guaranteefund for road casualties.

1,3742004

1,034 - 340

2003 2004 Change G.VII - Employees' leaving entitlement

7,154

This caption includes current account payables showing the reinsurance technical result.

- 6317,785

100

of which:

G.VIII.1 - OTHER SUMS PAYABLE - POLICYHOLDERS' TAX DUE

G.VIII.2 - OTHER SUMS PAYABLE TO TAXATION AUTHORITIES

G.VIII.3 - OTHER SOCIAL SECURITY CHARGES PAYABLE

G.VIII.4 - OTHER SUMS PAYABLE

+ 128

– tax payables, Euro 4,073 thousand of which relating to group companies following the adoption of the Italian consolidation tax system 5,857

1,486

6,681

settlement made in January 2006 and accrued holidays

- payables due to employees forThis caption mainly includes:

7,590Change

2004 2005 Change

- withholdings on redemptions and annuities of life policies 247

– withholdings on interest on unit-linked securities 167

- amounts payable to consultants

2,821

This caption mainly includes social security contributions to be paid to INPS on Decemberwages and salaries.

1,208

Euro 89 thousand of which relates to the associated company S.In.T. S.p.A.

- withholdings on wages and salaries- withholdings on fees to consultants

628330

1,570

- accounts payable to creditors

2004 2005

1,442

The more significant captions are as follows:

+ 5,6831,576 7,259

The caption includes taxes due on premiums collected.

+ 909

G.VIII - Other sums payable2004

25,16718,6662005 Change

+ 6,501

2005 Change

2004 2005 Change

- 2192004

8,7488,967

101

of which:

of which:

The caption includes interest accrued on the convertible subordinated bond issue to be paid tosubscribers on 1 January 2006.

-

G.IX Other liabilities

10,094

990

10,914

H.1 INTEREST

- technical account to be settled with agencies

Euro 153 thousand of which referring to the related company S.In.T. S.p.A. and Euro 120 thousand to the subsidiary Interbilancia S.r.l.

GUARANTEES, COMMITMENTS AND OTHER MEMORANDUM AND CONTINGENCY ACCO

- invoices and notes to be received

2005

7,939

2005

7,855

2005

+ 1

2004 2005 Change

Change

990

H.3 OTHER ACCRUED EXPENSES AND DEFERRED INCOME2004

Change

13 14

This caption is made up as follows:

1,055,875 1,140,9492004 2005

+ 85,074

The caption mainly includes deferred commissions from brokerage activities.

1,003

- giro accounts between

1,004

CLASS H - ACCRUED EXPENSES AND DEFERRED INCOME 2004 2005 Change

755 non-life and life business

+ 1

2004

796

The more significant captions are as follows:

2,239

1,398

2,975 + 7362004

G.IX.3 SUNDRY LIABILITIES

This caption includes commission to be paid on premiums under collection at year end andagents' incentives.

+ 84

Change

I Guarantees given

-20,50020,5002004 2005 Change

Change

+ 820

2004 2005 Change G.IX.2 COMMISSIONS ON PREMIUMS UNDER COLLECTION

102

of which:

of which:

It relates to commitments to real estate operators for the acquisition of a real estate area inMilan

2004 2005 Change

- 47,460 + 47,460

IV Commitments

250

-

The caption relates to savings accounts in favour of eligible claimants.

VII Securities held by third parties

+ 35,414

250

2005 Change I .3 OTHER PERSONAL GUARANTEES

2004

II.4 COLLATERAL

20,500

2005

+ 150400

20,500

Change

It relates to a letter of patronage in favour of Banca Intesa S.p.A. to secure the credit linegranted to the subsidiary Vittoria Immobiliare S.p.A.

2004 II Guarantees received

1,066,480

2,026

V Third party assets

Change

2004

1,031,066

4,187

The caption relates to assets pertaining to pension funds held by the depositary bank.

2,033 - 1112004 2005 Change

2004

1,922

The caption relates to securities deposited on separate management with banks and otherissuers.

2005

2005

The caption relates to securities pledged in favour of the company.

VI Assets pertaining to pension funds managed in favour and on behalf of third parties

250 -

2005 Change

+ 2,161

2004 Change

- 150 + 150

II1 SURETIES2004 2005 Change

103

PROFIT AND LOSS ACCOUNT

I.10 - RESULT OF NON-LIFE BUSINESS TECHNICAL ACCOUNT 2004 2005 Change 11,801 20,630 8,829

Technical cost and revenues are classified as follows:

I.1 - Premiums, net of ceded premiums A breakdown of premiums by line of business is given in the directors' report. Annex 25 to these notes classifies premiums by class and business.a) Gross premiums accounted for b) (-) Ceded premiums c) Change in gross premium reserve d) Change in reinsurer premium reserve

I.2 - (+) Income on investments transferred from non-technical account The caption includes income on investments transferred from the non-technical account as provided for by article 55 of Legislative decree no. 173/97. The amount to be transferred has been calculated in accordance with ISVAP regulation no. 1140 G of 8 March 1999.

I.3 - Other technical income, net of outwards reinsurance This caption includes: - write-off of commissions for previous years'

premiums cancelled - other technical captions mainly related to

recoveries of settlement costs related to claims subject to knock for knock agreements and ANIA incentives for scrapping damaged vehicles.

- withdrawal from the provision for bad debts

2004 302,630

407,064 92,066

-14,779 2,411

11,930

1,694

468

776 450

2005 342,532

433,406 83,399 -7,550

75

10,170

1,636

428

799 409

104

I.4 - Charges relating to claims, net of recoveries and outwards reinsurance a) Amounts paid aa) Gross amount bb) (-) Reinsurers' share They relate to compensation, direct expenses and settlement cost for partial or final payments on claims reported during the year or accrued at the end of the previous year. b) changes in recoveries, net of reinsurers' share aa) Gross amount bb) (-) Reinsurers' share This represents the balance between amounts to be recovered from policyholders and third parties for exemption clauses, subrogation and claim surrenders at the end of the previous year, the amounts recovered during the year and amounts yet to be recovered at year end. c) Change in claims reserve aa) Gross amount bb) (-) Reinsurers' share The caption includes estimated compensation, direct and settlement costs to be paid in future years for claims reported during the current and previous years and not yet settled at year end.

I.5 - Change in other technical reserves, net of outwards reinsurance This caption includes the change in the ageing reserve.

2004

217,932

245,357 59,983

-10,019 -432

55,689 13,544

461

2005

230,074

276,543 55,727

-7,418 -306

26,990 10,620

483

105

I.7 - Operating costs They relate to purchase and collection commissions proportional to premiums written, incentives accrued by brokers and agents and mutual costs incurred for the sales network. The caption also includes overheads and depreciation of tangible assets not allocated to claims settlement and investments. This caption and that relating to the life business (II.8) include costs repaid to the related company S.In.T. S.p.A. (Euro 457 thousand), the related company Touring Vacanze S.r.l. (Euro 7 thousand), the subsidiary Vittoria Immobiliare S.p.A. (Euro 223 thousand), the subsidiary Vittoria Properties S.r.l. (Euro 112 thousand) and the Interbilancia (Euro 120 thousand). a) Acquisition commissions b) Other acquisition costs c) Change in commissions and other

acquisition costs to be amortised d) Premium collection commissions e) Other administrative costs f) (-) Commissions received by reinsurers

I.8 - Other technical charges, net of outwards reinsurance This caption relates to premium-related items, including:- technical write-offs, bad debts and accruals

to the related provision - other technical charges mainly related to

services supporting insurance covers and costs for premiums under litigation. The cost repaid to the company for use of technical services of the related company S.In.T S.p.A. amounts to Euro 235 thousand

I.9 - Change in equalisation reserves

2004

81,038

61,041 20,730

-1,240 6,213

13,750 19,456

4,783

3,933

850

239

2005

98,004

68,423 22,038

-906 6,179

15,540 13,270

4,887

3,830

1,057

260

106

II.13 - RESULT OF LIFE BUSINESS TECHNICAL ACCOUNT2004 2005 Change

7,905 5,687 -2,218

Technical cost and revenues are classified as follows:

II.1 - Premiums, net of ceded premiums A breakdown of premiums by line of business is given in the directors' report. Annex 27 to these notes classifies premiums by class and business.a) Gross premiums accounted for b) (-) Ceded premiums

II.2 - Income on investments It relates to: a) Income on equity investments

The caption includes the dividend collected from the subsidiaries Vittoria Immobiliare S.p.A. (Euro 990 thousand) and Immobiliare Bilancia S.r.l. (Euro 3,713 thousand);

b) Income on other investments: bb) other investments the caption includes: - interest on fixed-interest securities, issue and trading discounts - interest on policy loans - income on unit trust units - interest on reinsurance deposits

c) Adjustments to investment values d) Profit on sale of investments

It relates to: - capital gains on repayment and sale of fixed-interest securities - capital gains on repayment and sale of unit trusts

2004 109.306

112.205 2.899

26.839

829

24.038

23.638 291 76 33 5

1,967 -

1,967

2005 114.681

117.796 3.115

30.304

4.703

25.588

24.930 212 419 27

- 14 14

-

107

II.3 - Income and unrealised capital gains relating to investments benefiting policyholders bearing the risk and investments arising from pension fund management A breakdown of this caption is given in annex 22 to these notes.

II.4 - Other technical income, net of outwards reinsurance The caption includes commissions relating to first yearly instalments of premiums cancelled and commissions retroceded by the financial managers in relation to investments of unit premiums and pension funds.

II.5 - Charges relating to claims, net of outwards reinsurance They relate to claims, matured policies, surrenders and life annuities. a) Amounts paid aa) Gross amount bb) (-) Reinsurers' share b) Change in reserve for payable amounts aa) Gross amount bb) (-) Reinsurers' share

II.6 - Change in mathematical reserves and other technical reserves, net of outwards reinsurance The caption relates to changes in technical reserves which have been commented on in detail in the section on "accounting policies". a) Mathematical reserves aa) Gross amount bb) (-) reinsurers' share b) Complementary insurance premium reserve aa) Gross amount c) Other technical reserves aa) Gross amount bb) (-) Reinsurers' share d) Technical reserves where investment risk is

borne by policyholders and reserves arising from pension fund management

aa) Gross amount

2004

12,352

1,209

76,825

76,114 621

1,332 -

44,092

34,960 2,277

-6

206 -

11,209

2005

12,779

1,136

90,931

83,088 688

8,531 -

40,023

52,653 2,654

-7

417 -

-10,386

108

II.7 - Reversals and profit participation, net of outwards reinsurance This caption includes the amounts paid during the year for profit participation and the change in the related reserve. Of which: - Direct insurance - Indirect insurance

II.8 - Operating costs They relate to purchase and collection commissions proportional to premiums written, incentives accrued by brokers and agents and mutual costs incurred for the sales network. The caption also includes overheads and depreciation of tangible assets not allocated to investments. a) Acquisition commissions b) Other acquisition costs c) Change in commissions and other acquisition

costs to be amortised d) Premium collection commissions e) Other administrative costs f) (-) Profit participation and other commissions

received by reinsurers

II.9 - Capital and financial charges They relate to charges for, adjustments to and loss on sale of investments included under class C of the balance sheet assets. a) Investment management charges and

interest payable of which: - costs relating to the equity investment

portfolio - charges on fixed-interest securities for

issue and trading discounts, taxes and operating and personnel costs

- charges relating to unit trusts - interest on deposits from reinsurers

2004

- 9

6 - 15

12,506

2,392 2,158

1,920 2,081 4,393

438

2,810

2,769

55

1,687 2

1,025

2005

- 1

- - 1

13,380

2,887 3,809

1,026 1,979 4,066

387

3,173

2,838

44

1,690 2

1,102

109

b) Adjustments to investment values They relate to write-downs of the equity investment. The caption is analysed in annex 23 to these notes.

c) Loss on sale of investments The caption is mainly composed of losses on the sale of trading securities.

II.10 - Capital and financial charges and unrealised capital losses relating to investments benefiting policyholders bearing the risk and investments arising from pension fund management A breakdown of this caption is given in annex 24 to these notes.

II.11 - Other technical charges, net of outwards reinsurance The caption relates to technical write-offs and bad debts.

II.12 - Income on investments transferred to non-technical account The caption includes income on investments transferred to the non-technical account as provided for by article 55 of Legislative decree no. 173/97. The amount to be transferred has been calculated in accordance with ISVAP regulation no. 1140 G of 8 March 1999.

2004 39

1

3,632

19

1,926

2005 331

4

3,436

25

2,246

110

NON-TECHNICAL ACCOUNT RESULT2004 2005 Change

9,959 4,935 -5,024

Non-technical cost and revenues are classified as follows:

III.3 - Income on non-life business investments The caption is made up as follows: a) Income on equity investments They relate to dividends paid. They include

the dividend of Euro 587 thousand paid by the subsidiary company Vittoria Immobiliare.

b) Income on other investments: aa) land and buildings including rental, expense recoveries and

other revenues bb) other investments The caption includes: - interest on fixed-interest securities, issue

and trading discounts - interest on loans, Euro 73 thousand on the

loan granted to Laumor B.V.. - financial income on unit trust units - interest on reinsurance deposits c) Adjustments to investment values They relate to write-backs of write-downs of

fixed-interest securities and equities made in previous years. The caption is detailed in annex 21 to these notes.

d) Profit on sale of investments

2004 19,724

1,019

210

18,478

18,016

451 -

11

- 17

2005 15,925

1,773

211

13,941

13,568

364 - 9

- -

111

III.4 - (+) Income on investments transferred from non-life business technical account Reference should be made to the notes to the life business technical account

III.5 - Capital and financial charges of non-life businessThey relate to charges for, adjustments to and loss on sale of investments included under class C of the balance sheet assets as follows: a) Investment management charges and interest payable of which: - condominium expenses, taxes and costs

for building management - operating and personnel costs relating to

the equity investment portfolio - charges on fixed-interest securities for

issue and trading discounts, taxes and operating and personnel costs

- unit trust charges - interest on deposits from reinsurers c) Loss on sale of investments They relate to adjustments to fixed-interest securities

2004

1,926

4,961

4,961

166

95

2,645 5

2,050 -

2005

2,246

3,398

2,723

164

102

1,527 4

926 675

112

III.6 - (-) Income on investments transferred to non-life business technical account Reference should be made to the notes to the non-life business technical account

III.7 - Other income This caption includes income other than that on investments, such as that relating to the captions E - Receivables and F - Other assets. This caption is made up as follows: - interest on current accounts from insurance

and reinsurance companies - interest on bank current accounts - other interest mainly on tax receivables and

agents' recharges - interest on giro accounts between

businesses- other financial income - use of the provision for contingencies and

other charges from the provision for bad debts

- exchange rate gains on technical and financial captions

III.8 - Other charges This caption includes charges other than those on investments, such as those relating to the captions E - Receivables and F - Other assets. This caption is made up as follows: - interest on current accounts to insurance

and reinsurance companies - interest on bank current accounts - interest on giro accounts between

businesses- other financial charges - bad debts - accruals to the provision for bad debts - amortisation charge of intangible assets - accrual to the provision for taxation - interest on subordinated loan - exchange rate losses on technical and

financial captions - current taxes

2004

11,930

2,378

36 786

325

4 182

1,045

-

10,290

100 26

4 164 329

1,470 5,986

650 990

346 225

2005

10,170

2,008

26 926

336

10 189

47

474

6,321

120 32

10 187 163

1,800 2,887

- 990

- 132

113

III.10 – Extraordinary income The caption is composed of income on the sale of long-term investments and other assets included in caption F - Other assets, This caption is made up as follows: - capital gains on the sale of buildings - capital gains on the sale of fixed-interest

securities- capital gains on the sale of tangible assets - prior year items - reimbursement for damage to registered

offices- income on other financial investments

III.11 - Extraordinary expense The caption is composed of expense incurred on the sale of long-term investments and other losses on the sale of assets included in caption F - Other assets, This caption is made up as follows:

- losses and expense on the sale of buildings,- losses on the sale of investments - losses on the sale of tangible assets - prior year items

2004 13,325

76

12,563 3

153

17 513

212

29 75 19 89

2005 4.725

328

4,093 12

292

--

79

39 - 7

33

114

III.15 - NET PROFIT FOR THE YEAR 2004 2005 Change 17,779 20,330 2,551

I.10 Result of non-life business technical account

II.13 - Result of life business technical account

Non-technical account result

III.13 - PROFIT BEFORE TAXATION

III.14 - Taxation on profit for the year Taxation includes IRES and IRAP taxes accrued on the profit for the year

2004 11,801

7,905

9,959

29,665

11,886

2005 20,630

5,687

4,935

31,252

10,922

115

116


IRES IRAP actual theoretical

IRES - tax rate: 33%

Profit before taxation 31,252 10,313

+ Temporary differences deductible in future years 7,138

- Temporary differences taxable in future years 4,272

- Use of temporary differences 391

Permanent differences:

+ Non-deductible interest and taxes 91

+ Non-deductible accruals, costs and expenses 283

- Tax-exempt income 23

- Dividends 6,338

- Other deductible items 178

Taxable base 27,562 9,095

Total IRES 9,095 10,313

IRAP - tax rate: 5.25%

Difference between production revenues and cost 24,444

Costs not deductible for IRAP purposes 25,901

Theoretical taxable base 50,345 2,643

+ Temporary differences deductible in future years 5,269

- Temporary differences taxable in future years 1,654

- Use of temporary differences 492

Taxable base 53,468 2,807

Total IRAP 2,807 2,643

Deferred tax assets

Deferred tax assets of the previous year 9,954 4,088

Adjustments to deferred tax assets of the previous year - -

Deferred tax assets of the current year 14,952 8,865

Change in deferred tax assets -1,900

Deferred tax liabilities

Provision for deferred tax liabilities of the previous year 6,998

Adjustments to the provision for deferred tax liabilities of the previo -

Provision for deferred tax liabilities of the current year 9,521 1,654

Change in provision for deferred tax liabilities - 919

Total tax relating to 2005 10,921 12,956

Reconciliation between the tax charge recognised in the financial statements and theoretical tax charge

The individual captions relating to IRES/IRAP temporary differences are detailed in the schedule of deferredtaxes attached to these notes.

Taxable base Tax

117


Description of temporary difference IRES+IRAP

Taxable base Tax rate Taxable base Tax rate Tax

2004 deferred tax assets

Entertainment costs 93 93 36

Provisions for bad debts 4,931 1,569 1,710

Directors' fees 56 - 18

Foreign bonds 2,062 - 680

Change in non-life claims reserve (as per decr. 209/2002) 2,597 2,426 984

Write-downs of investments (as per decr. 209/2002) 215 - 71

9,954 33% 44,088 5.25% 33,499

2005 use of/adjustments to deferred tax assets


Provisions for bad debts 233 179 86


Foreign bonds 1,406 - 464

Change in non-life claims reserve (as per decr. 209/2002) 298 274 113


2,139 33% 4492 5.25% 7732

2005 increase in deferred tax assets

Exchange rate fluctuations 1,483 1,483 567

Depreciation of tangible assets 89 89 34


Provisions for bad debts 2,182 382 740


Change in non-life claims reserve (as per decr. 209/2002) 3,274 3,274 1,252

7,137 33% 55,268 5.25% 22,631

2005 deferred tax assets




Provisions for bad debts 6,880 1,773 2,363


Foreign bonds 656 - 216

Change in non-life claims reserve (as per decr. 209/2002) 5,572 5,426 2,124


14,951 33% 88,865 5.25% 55,399

2004 deferred tax liabilities

Deferral of capital gains on financial fixed assets (4/5) 6,998 - 2,309

6,998 33% 00 5.25% 22,309

2005 use of/adjustments to deferred tax liabilities

Deferral of capital gains on financial fixed assets (1/5) 1,749 - 577

1,749 33% 00 5.25% 5577

2005 increase in deferred tax liabilities

Deferral of capital gains on financial fixed assets (4/5) 2,618 - 864



4,273 33% 11,655 5.25% 11,497

2005 deferred tax liabilities

Deferral of capital gains on financial fixed assets (4/5) 7,867 - 2,596



9,522 33% 11,655 5.25% 3,229

SCHEDULE OF DEFERRED TAXES PURSUANT TO ARTICLE 2427 OF THE CIVIL CODE

IRES IRAP

118


119

Part C: Other information

Solvency margin

The forms required by ISVAP with regulation dated 10 March 1999 show the following figures (in thousands of euros).

Non-life business Life business Total

Solvency margin amount 54,377 28,332 82,709 Solvency margin components 92,030 50,650 142,680 Ratio 1.7 1.8 1.7

Had investments in subsidiaries and associated companies (used as vehicles for transactions of a preponderant real estate nature) been measured using the equity method as in the consolidated financial statements, rather than at historical cost, the available portion of shareholders' equity (thus excluding the portion allocated to the separately-managed life business) would have been Euro 24,999 thousand greater, as shown in the following table:


Subsidiaries

Book value in financial

statements


(share of the company)

of which: net profit for the

year

Difference between book value and equity

method value

Vittoria Immobiliare S.p.A. 8,029 8,973 4,019 944Immobiliare Bilancia S.r.l. 4,750 5,864 854 1,114Immobiliare Bilancia Prima S.r.l. 2,400 9,120 6,837 6,720Immobiliare Bilancia Seconda S.r.l. 8,500 9,410 918 910

Associated companies

Yarpa International Holding N.V. 9,282 24,112 5,129 14,830

Laumor B.V. 6 487 272 481

32,967 57,966 18,029 24,999

As a result of the above, shareholders' equity's components increased from Euro 142,680 thousand to Euro 167,679 thousand which, compared to the required amount of solvency margin of Euro 82,709 thousand, leads to a ratio of 2.03.


Non-life and life business solvency margin amount 82,709

Non-life and life business solvency margin components 142,680Greater shareholders' equity of subsidiaries and associated companies 24,999

Solvency margin components 167,679 Ratio 2.03

120

Assets allocated to cover the technical reserves

The technical reserves requiring cover at year end amounted to:

- non-life business 589,650 - life business 628,736 - technical reserves where the investment risk is borne by the policyholders 120,091

and the covered assets are described in the annexes to the financial statements.

Capitalised financial charges

Pursuant to point 8 of paragraph 1 of article 2427 of the Civil Code, we note that no financial charges have been capitalised.

Employees

Remuneration costs, related social security contributions, accrual to the employees' leaving entitlement and other personnel-related expenses are shown in annex 32 to these notes.

Employees numbered 401 at year end compared to 391 at the end of the previous year. The average number of employees split by position is as follows:

Managers 20 17Officers 96 87Administrative staff 273 265

Total 389 369

31/12/05 31/12/04

121

Breakdown of direct insurance premiums by business sector and geographical area

A breakdown of premiums by Ministerial line of business is set out in annexes 19 and 20, all relating to the domestic portfolio. A breakdown of premiums by geographical area (including agency locations) is set out below:


Non-life business Life businessRegion Agencies Premiums % Premiums %

NORTHEmilia Romagna 21 34,002 7,709 Friuli Venezia Giulia 3 5,764 1,675 Liguria 9 16,960 1,971 Lombardy 59 123,390 47,973 Piedmont 25 28,680 4,420 Trentino Alto Adige 4 6,601 873 Valle d'Aosta 1 1,860 1,898 Veneto 22 34,293 11,072

Total 144 251,550 58.2 77,591 65.9

CENTREAbruzzo 7 16,359 2,710 Lazio 20 63,590 21,286 Marche 7 7,515 2,460 Toscana 19 34,748 4,999 Umbria 10 17,779 3,314

Total 63 139,991 32.4 34,769 29.5

SOUTH AND ISLANDSBasilicata 2 3,668 508 Calabria 2 2,575 239 Campania 6 7,035 1,600 Puglia 4 10,747 1,334 Sardinia 1 4,489 164 Sicily 7 12,361 1,555

Total 22 40,875 9.5 5,400 4.6

Grand total 229 432,416 100.0 117,760 100.0

122

Real estate

Real estate is detailed below (in thousands of Euros).

AT 31 DECEMBER 2005

Fiscally-drivenAmount before Monetary and voluntary Carrying

revaluations revaluations revaluations amount

BUILDINGS HELD FOR INVESTMENTOperating buildings

Perugia - Via Pellas 44 70 6 0 76

Pescara - Via Sulmona 2 34 38 0 72

Total operating buildings 104 44 0 148

Buildings used by third parties

Acqui - Piazza Matteotti 25 53 10 77 140Alessandria - P.Za Carducci 1 120 112 0 232Asti - C.So Alfieri 130 27 57 0 84Biella - Piazza V. Veneto 16 17 43 34 94Brescia - Via Saffi 1 121 67 0 188Busto Arsizio - Via C. Tosi 8 79 31 0 110Como - V.Le Rosselli 13 83 22 77 182Cremona - P.Za Roma 7 28 24 23 75Cremona - P.Za Roma 7 76 0 0 76Cuneo - Piazza Europa 26 61 75 0 136Ferrara - Via Don Minzoni 17 97 10 93 200Foligno - Via C. Battisti 1 118 63 0 181Gallarate - P.Za Risorgimento 10 23 7 44 74Livorno - Via Grande 225 128 5 0 133Lodi - C.So V. Emanuele Ii° 12 13 10 41 64Milan - Via Ariosto 21 2,458 0 0 2,458Milan - Via B. D'Alviano 2 21 46 62 129Milan - Via V. Colonna 2 129 0 0 129Milan - Via V. Colonna 2 177 0 0 177Milan - Via Correggio 3 145 0 0 145Modena - Via Ganaceto 39 33 13 46 92Napoli - Via S. Carlo 26 63 45 155 263Parma - Via Longhi 1 87 42 62 191Perugia - Via Pellas 44 147 12 0 159Pisa - Piazza Toniolo 10 84 41 52 177Pistoia - Via S. Fedi 67 72 39 0 111Pontedera - C.So Matteotti 108 61 41 0 102

123

AT 31 DECEMBER 2005

Fiscally-drivenAmount before Monetary and voluntary Carrying

revaluations revaluations revaluations amount

Buildings used by third parties

Rovigo - C.So Del Popolo 4 63 24 0 87Sondrio - Via C. Alessi 16 54 15 0 69Terni - Via Beccaria 22 17 28 0 45Turin - Via P. Micca 21 207 205 155 567Trieste - Via Torrebianca 18 12 36 21 69Udine - Via Carducci 4 39 72 0 111Varese - Via Mazzini 1 158 71 41 270Venezia Mestre - Via Verdi 4 47 65 26 138Verona - C.So Porta Nuova 53 226 257 129 612Vicenza - C.So Palladio 155 84 76 36 196

Total buildings used by third parties 5,428 1,664 1,174 8,266

TOTAL BUILDINGS HELD FOR INVESTMENT 5,532 1,708 1,174 8,414

TOTAL BUILDINGS 5,532 1,708 1,174 8,414

124

Cash flow statement

The technical captions are shown net of reinsurance effects in the cash flow statement.

2005 2004

SOURCE OF FUNDS

Net profit for the year 20,330 17,779 Positive or negative adjustments relating to

non-monetary captions

Net increase (+) decrease (-) in:

claims reserve 36,709 51,987 premium reserve 5,588 14,035 non-life business technical reserves 40,012 44,201 Increase (-) Decrease (+) in receivables from policyholders 2,509 -2,634 Net increase (-) decrease (+) in

agent, reinsurer and coinsurer balances 5,411 -1,952 Net increase (-) decrease (+) in

intangible assets -1,065 873 Increase in specific provisions 814 2,196 Employees' leaving entitlement:

accruals -818 1,199 utilisation 1,315 -987 Increase (-) decrease (+) in other receivables,

sundry assets and accrued income -25,749 -4,780 Increase (+) decrease (-) in other sums payable,

other liabilities and accrued expenses 7,318 1,988 Adjustments to securities 1,006 33 Adjustments to class D securities -7,434 -4,513

Funds generated by ordinary activities 85,946 119,425

Disposal of buildings 355 434 Sale of fixed-interest securities 44,766 174,612 Sale of equity investments 75,350 1,180 Sale of unit trusts 328 32,493 Sale of class D 24,753 28,079 Repayment of loans and borrowings 11,750 5,952 Other financial disinvestments 0 478

Funds generated by disinvesting activities 157,302 243,228

Total funds generated 243,248 362,653


125

2005 2004

APPLICATION OF FUNDS

Buildings 34 49 Fixed-interest securities 203,518 234,177 Equity investments 18,916 74,522 Unit trusts - 7,500 Other financial investments - - Class D investments 6,933 34,776 Loans to third parties 9,409 3,959 Previous year's dividend distributed 4,200 3,900

Total application of funds 243,010 358,883

Increase/decrease in

liquid funds 238 3,770

TOTAL 243,248 362,653

Liquid funds

at the beginning of the year 36,783 33,013

Liquid funds

at the end of the year 37,021 36,783


126

Fees paid to the Directors and the Statutory Auditors

Fees paid to the Directors and Statutory Auditors are set out below, pursuant to article 78 of CONSOB resolution no.11971 dated 14 may 1999:


NAME AND SURNAMEPosition held

Period during which the position

Expiry dateof term of

officeFees Non-monetary

Bonuses and other

Other

was held for the office benefits incentives fees (1)Board of directors terms of office up to approval of the financial statements at 31 December 2006

Luigi Guatri Chairman 01.01 - 31.12.2005 (*) 40 Carlo Acutis Executive deputy chairman 01.01 - 31.12.2005 (*) 37 11 Giorgio Costa Independent deputy chairman 01.01 - 31.12.2005 (*) 47 4 (1)Roberto Guarena Managing director 01.01 - 31.12.2005 (*) 331 5 260 4 (1) Adriana Acutis Biscaretti di Ruffia Director 01.01 - 31.12.2005 (*) 15 59 (1)Andrea Acutis Executive director 01.01 - 31.12.2005 (*) 15 4 153 (2)Francesco Baggi Sisini Independent director 01.01 - 31.12.2005 (*) 25 Tiberto Brandolini Dadda Independent director 01.01 - 31.12.2005 (*) 15 Marco Brignone Independent director 01.01 - 31.12.2005 (*) 15 Arnaud Hellouin de Ménibus Independent director 01.01 - 31.12.2005 (*) 21 4 (1)Pietro Carlo Marsani Independent director 01.01 - 31.12.2005 (*) 15 Giorgio Marsiaj Independent director 01.01 - 31.12.2005 (*) 15 Giacomo Mottura Director 01.01 - 31.12.2005 (*) 75 4 (1)Edgar Müller-Gotthard Independent director 01.01 - 31.12.2005 (*) 15 Luca Paveri Fontana Director 01.01 - 31.12.2005 (*) 99 4 (1)Giuseppe Spadafora Independent director 29.04 - 31.12.2005 (*) 10

Board of statutory auditors terms of office up to approval of the financial statements at 31 December 2006

Angelo Caso' Chairman 01.01 - 31.12.2005 (*) 26 Giovanni Maritano Standing auditor 01.01 - 31.12.2005 (*) 18 14 (1)Livio Strazzera Standing auditor 01.01 - 31.12.2005 (*) 18

(1) Other fees for positions held in subsidiaries

FeesDescription of position

(2) Other fees/salary for positions held in subsidiaries

(*) The members of the board of directors and board of statutory auditors terms of office expires on the day of the shareholders' meeting approving the 2006 financial statements

127

Investments in subsidiaries

Vittoria Immobiliare S.p.A. Registered office in Milan - Largo Toscanini 1; share capital Euro 7,700,000. Holding percentage: 87.24%. This company is active in the real estate trading sector and holds investments in companies operating in the real estate management, brokerage and trading sectors. The draft financial statements approved by the board of directors on 23 March 2006 show shareholders' equity of Euro 25,715 thousand, Euro 14,466 thousand being the net profit for the year. The consolidated financial statements, prepared for parent company consolidation purposes, show consolidated shareholders' equity of Euro 27,619 thousand, Euro 12,372 thousand being the net profit for the year.

Immobiliare Bilancia S.r.l. Registered office in Milan - Largo Toscanini 1; quota capital Euro 2,000,000. Holding percentage: 97.66%. A real estate trading company. The draft financial statements approved by the board of directors on 23 February 2006 show quotaholders' equity of Euro 39,505 thousand, Euro 5,742 thousand being the net profit for the year.

Immobiliare Bilancia Prima S.r.l. Registered office in Milan - Largo Toscanini 1; quota capital Euro 2,000,000. Holding percentage: 100.00%. A real estate trading company. The draft financial statements approved by the board of directors on 13 March 2006 show quotaholders' equity of Euro 9,120 thousand, Euro 6,833 thousand being the net profit for the year.

Immobiliare Bilancia Seconda S.r.l. Registered office in Milan - Largo Toscanini 1; quota capital Euro 1,000,000. Holding percentage: 100.00%. The draft financial statements approved by the board of directors on 13 March 2006 show quotaholders' equity of Euro 9,410 thousand, Euro 916 thousand being the net profit for the year.

Immobiliare Bilancia Terza S.r.l. Registered office in Milan - Largo Toscanini 1; quota capital Euro 100,000. Holding percentage: 100.00%. This company was incorporated in 2003 and is still inactive. It represents a special purpose vehicle for the future development of real estate trading initiatives, possibly with other partners of the sector. The draft financial statements examined by the directors on 13 March 2006 show quotaholders' equity of Euro 87 thousand, Euro 4 thousand the net loss for the year

Vittoria Properties S.r.l. Registered office in Milan - Via Caldera 21; quota capital Euro 4,000,000. Holding percentage: 99.00% directly and 1.00% through Vittoria Immobiliare S.p.A. Incorporated to manage and lease its real estate portfolio. The draft financial statements approved by the board of directors on 13 March 2006 show quotaholders' equity of Euro 4,005 thousand, Euro 2 thousand being the net profit for the year.

128

Interbilancia S.r.l. Registered office in Milan - Via Caldera 21; quota capital Euro 80,000. Holding percentage: 80.00% directly and 20.00% through Vittoria Immobiliare S.p.A. Holding company of investments in companies operating in the service sector. The draft financial statements show quotaholders' equity of Euro 108 thousand, Euro 10 thousand being the net profit for the year.

Investments in associated companies

Yarpa International Holding N.V. Registered offices in Amsterdam (Holland); share capital Euro 675,000. Holding percentage: 25.00%. Holding company of investments in real estate companies The draft consolidated financial statements show shareholders' equity of Euro 96,448 thousand, Euro 20,514 thousand being the net profit for the year.

Laumor B.V. Registered offices in Amsterdam (Holland); share capital Euro 20,000. Holding percentage 25.00%. Holding company of investments in real estate companies The 2005 draft financial statements show shareholders' equity of Euro 1,949 thousand, Euro 1,088 thousand being the net profit for the year.

White Finance S.A. Registered offices in Luxembourg (Luxembourg); share capital Euro 1,000,000 Holding percentage: 32.17%. Holding of investments. The 2005 draft financial statements show shareholders' equity of Euro 15,955 thousand, Euro 928 thousand being the net loss for the year.

Touring Vacanze S.r.l. Registered office in Milan - Corso Italia 10; quota capital Euro 12,900,000. Holding percentage: 24.00%. Real estate management company.

Investments in related companies

S.In.t. S.p.A. Registered office in Turin - Piazza Bodoni 3; share capital Euro 500,000. Holding percentage: 14.79%. Service company.

Board of Directors

Milan, 23 March 2006

129

Annexes to the notes to the financial statements

Page

130 Annex 1 Balance sheet- Non-life business 142 Annex 2 Balance sheet – Life business 155 Annex 3 Allocation of the net profit (loss) for the year between non-life and life businesses 156 Annex 4 Assets - Changes in intangible assets (caption B) and land and buildings (caption C.I) 157 Annex 5 Assets - Changes in investments in group and other companies: equity investments

(caption C.II.1), bonds (caption C.II.2) and loans (caption C.II.3) 158 Annex 6 Assets - Information on companies in which Vittoria holds an investment 160 Annex 7 Assets - Changes in investments in group and other companies: equity investments 164 Annex 8 Assets - Allocation based on the use of other financial investments: equity investments,

unit trust units, bonds and other fixed-interest securities, shares in investment pools and other financial investments (captions C.III.1, 2, 3, 5, 7)

165 Annex 9 Assets - Changes in other financial investments - investment portfolio: equity investments, unit trust units, bonds and other fixed-interest securities, shares in investment pools and other financial investments (captions C.III.1, 2, 3, 5, 7)

166 Annex 10 Assets - Changes in loans and deposits with banks (captions C.III.4, 6) 167 Annex 11 Assets - List of assets relating to unit-linked and index-linked policies (caption D.I) 168 Annex 12 Assets - List of assets arising from pension fund management (caption D.II) 169 Annex 13 Liabilities - Changes in premium reserve (caption C.I.1) and claims reserve (caption

C.I.2) of non-life business 170 Annex 14 Liabilities - Changes in the mathematical reserves (caption C.II.1) and profit participation

and reimbursement reserve (caption C.II.4) 171 Annex 15 Liabilities - Changes in provisions for contingencies and other charges (caption E) and

employees’ leaving entitlement (caption G.VII) 172 Annex 16 List of assets and liabilities relating to group and other companies 174 Annex 17 List of classes I, II, III. and IV of “guarantees, commitments and other memorandum and

contingency accounts” 175 Annex 18 Commitments for derivative transactions 176 Annex 19 Summarised non-life business technical account 177 Annex 20 Summarised life business premiums and reinsurance balance 178 Annex 21 Income on investments (captions II.2 and III.3) 179 Annex 22 Income and unrealised capital gains relating to investments benefiting policyholders

bearing the risk and investments stemming from pension fund management (caption II.3) 180 Annex 23 Capital and financial charges (captions II.9 and III.5) 181 Annex 24 Capital and financial charges and unrealised capital losses relating to investments

benefiting policyholders bearing the risk and investments stemming from pension fund management (caption II.10)

182 Annex 25 Non-life business- Summarised technical account by line of business - Domestic portfolio 184 Annex 26 Summarised non-life business technical account 185 Annex 27 Life business - Summarised technical account by line of business - Domestic portfolio 186 Annex 28 Summarised life business technical account – Domestic portfolio 187 Annex 29 Summarised life and non-life business technical accounts - foreign portfolio 188 Annex 30 Intercompany relationships 190 Annex 31 Summarised direct insurance premiums accounted for 191 Annex 32 Personnel expenses and directors’ and statutory auditors’ fees

Notes - Annex 1

Company VITTORIA ASSICURAZIONI

BALANCE SHEET - NON-LIFE BUSINESS

ASSETS

Current assets

A. SHARE CAPITAL PROCEEDS TO BE RECEIVED 1

of which: called-up 2


1. Acquisition commissions to be amortised 4 7,410

2. Other acquisition costs 6

3. Start-up and capital costs 7 172

4. Goodwill 8

5. Other deferred costs 9 15,103 10 22,685

C. INVESTMENTS

I - Land and buildings 1. Operating buildings 11 148

2. Buildings used by third parties 12 8,266

3. Other buildings 13

4. Other property rights 14

5. Assets under construction and payments on account 15 16 8,414

II - Investments in group and other companies: 1. Equity investments in: a) parent companies 17

b) subsidiaries 18 19,107


d) associated companies 20 20,244

e) other companies 21 53,889 22 93,498

2. Bonds issued by: a) parent companies 23

b) subsidiaries 24

c) related companies 25

d) associated companies 26

e) other companies 27 28

3. Loans to: a) parent companies 29

b) subsidiaries 30


d) associated companies 32 3,688

e) other companies 33 34 3,688 35 97,186

to carry forward 22,685

130

Year 2005

Page 1

Previous year

181

182

184 6,503

186

187 206

188

189 13,994 190 20,703

191 148

192 8,587

193

194

195 196 8,735

197

198 59,650

199 258

200 17,813

201 41,899 202 119,620

203

204

205

206

207 208

209

210

211

212 7,115

213 214 7,115 215 126,735


131


ASSETS

Current year

brought forward 22,685


III - Other financial investments: 1. Equity investments a) Listed shares 36

b) Unlisted shares 37

c) Quotas 38 39

2. Unit trust units 40 5,780

3. Bonds and other fixed-interest securities a) listed 41 416,609

b) unlisted 42 1,297

c) convertible bonds 43 44 417,906

4. Loans a) secured loans 45 4,563

b) loans on policies 46

c) other loans 47 1,995 48 6,558

5. Shares in investment pools 49

6. Deposits with banks 50

7. Other financial investments 51 52 430,244

IV - Deposits with ceding companies 53 56 54 535,900



1. Premium reserve 58 39,371

2. Claims reserve 59 78,111

3. Profit participation and reimbursement reserve 60

4. Other technical reserves 61 62 117,482


132

Previous year


216

217

218 219

220 5,780

221 343,033

222 1,462

223 224 344,495

225 3,977

226

227 1,568 228 5,545

229

230

231 232 355,820

233 370 234 491,660

238 36,416

239 78,860

240

241 242 115,276


133


ASSETS

Current year


E. RECEIVABLES

I - Receivables relating to direct insurance due from: 1. Policyholders a) premiums for the year 71 28,855

b) premiums for previous years 72 1,544 73 30,399

2. Insurance brokers and agents 74 35,339

3. Current account companies 75 4,363

4. Amounts to be recovered from policyholders and third parties 76 24,243 77 94,344

II - Receivables relating to reinsurance due from: 1. Insurance and reinsurance companies 78 10,351

2. Reinsurance brokers and agents 79 80 10,351

III - Other receivables 81 24,401 82 129,096

F. OTHER ASSETS

I - Tangible assets and inventory: 1. Office furniture and machines and internal transport systems 83 3,635

2. Registered chattel property 84 340

3. Plant and machinery 85 447

4. Inventory and other assets 86 87 4,422

II - Liquid funds 1. Bank and postal accounts 88 18,212

2. Cheques on hand and cash-in-hand 89 46 90 18,258

III - Own shares or quotas 91

IV - Other assets 1. Suspense reinsurance accounts 92

2. Sundry assets 93 5,588 94 5,588 95 28,268

of which: giro account with life business 901

G. PREPAYMENTS AND ACCRUED INCOME 1. Interest 96 4,673

2. Rent instalments 97 228

3. Other prepayments and accrued income 98 466 99 5,367

TOTAL ASSETS 100 838,798

134

Previous year


251 32,264

252 617 253 32,881

254 37,337

255 4,886

256 23,222 257 98,326

258 11,654

259 260 11,654

261 10,480 262 120,460

263 3,568

264 252

265 614

266 267 4,434

268 25,434

269 23 270 25,457

271

272

273 3,076 274 3,076 275 32,967

903

276 4,535

277 231

278 420 279 5,186

280 786,252

135



Current year


I - Subscribed share capital or equivalent fund 101 17,500

II - Share premium reserve 102 11,104

III - Revaluation reserves 103 6,135

IV - Legal reserve 104 3,500

V - Statutory reserves 105

VI - Reserves for purchase of own shares and shares of parent company 106

VII - Other reserves 107 50,266

VIII - Retained earnings or losses carried forward 108

IX - Net profit/(loss) for the year 109 11,219 110 99,724

B. SUBORDINATED LIABILITIES 111 10,800



1. Premium reserve 112 167,031

2. Claims reserve 113 420,944


4. Other technical reserves 115 2,319

5. Equalisation reserves 116 1,876 117 592,170


136

Previous year

281 17,500

282 11,104

283 6,135

284 3,427

285

286

287 40,970

288

289 11,819 290 90,955

291 10,800

292 159,230

293 393,515

294

295 1,836

296 1,616 297 556,197


137



Current year



1. Pension and similar provisions 128

2. Provision for taxation 129 2,487

3. Other provisions 130 741 131 3,228

F. DEPOSITS FROM REINSURERS 132 80,405


I - Payables arising from direct insurance business due to: 1. Insurance brokers and agents 133 1,431

2. Current account companies 134 4,864

3. Guarantee deposits and premiums paid by policyholders 135 2

4. Guarantee funds in favour of policyholders 136 1,034 137 7,331

II - Payables arising from reinsurance business due to: 1. Insurance and reinsurance companies 138 6,634

2. Reinsurance brokers and agents 139 140 6,634

III - Bond issues 141

IV - Due to banks and other financial institutions 142

V - Secured debts 143

VI - Sundry loans and other financial payables 144

VII - Employees' leaving entitlement 145 4,656

VIII - Other sums payable 1. Policyholders' tax due 146 8,490

2. Other sums payable to taxation authorities 147 6,724

3. Social security charges payable 148 1,376

4. Sundry payables 149 6,947 150 23,537

IX - Other liabilities 1. Suspense reinsurance accounts 151

2. Commissions on premiums under collection 152 6,902

3. Other liabilities 153 2,801 154 9,703 155 51,861

of which: giro account with life business 902 755


138

Previous year


308

309 2,432

310 741 311 3,173

312 79,967

313 1,756

314 4,642

315 41

316 1,374 317 7,813

318 7,024

319 320 7,024

321

322

323

324

325 4,249

326 8,709

327 863

328 1,240

329 5,775 330 16,587

331

332 6,903

333 1,977 334 8,880 335 44,553

904 390


139



Current year



1. Interest 156 594

2. Rent instalments 157

3. Other accrued expenses and deferred income 158 14 159 608

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 160 838,796



Current year



1. Sureties 161

2. Endorsements 162

3. Other personal guarantees 163

4. Collateral 164


1. Sureties 165 150

2. Endorsements 166


4. Collateral 168 250

III - Guarantees given by third parties in the interest of the Company 169

IV - Commitments 170 27,527

V - Third party assets 171 4,187

VII - Securities held by third parties 173 484,328

VIII - Other memorandum and contingency accounts 174

140

Previous year


336 594

337

338 13 339 607

340 786,252

Previous year

341

342

343

344

345

346

347

348 250

349

350

351 2,026

353 433,144

354

141

Notes - Annex 2


BALANCE SHEET - LIFE BUSINESS

ASSETS

Current year

A. SHARE CAPITAL PROCEEDS TO BE RECEIVED 1

of which: called-up 2


1. Acquisition commissions to be amortised 3 5,408

2. Other acquisition costs 6

3. Start-up and capital costs 7 115

4. Goodwill 8

5. Other deferred costs 9 225 10 5,748

C. INVESTMENTS

I - Land and buildings 1. Operating buildings 11

2. Buildings used by third parties 12

3. Other buildings 13

4. Other property rights 14

5. Assets under construction and payments on account 15 16

II - Investments in group and other companies: 1. Equity investments in: a) parent companies 17

b) subsidiaries 18 41,825



e) other companies 21 22 41,825

2. Bonds issued by: a) parent companies 23

b) subsidiaries 24



e) other companies 27 28

3. Loans to: a) parent companies 29

b) subsidiaries 30



e) other companies 33 34 35 41,825


142

Year 2005

Page 1

Previous year

181

182

183 6,434

186

187 137

188

189 93 190 6,664

191

192

193

194

195 196

197

198 72,137

199

200

201 202 72,137

203

204

205

206

207 208

209

210

211

212

213 214 215 72,137


143


ASSETS

Current year



III - Other financial investments 1. Equity investments a) Listed shares 36

b) Unlisted shares 37

c) Quotas 38 39

2. Unit trust units 40 2,173

3. Bonds and other fixed-interest securities: a) listed 41 573,269

b) unlisted 42 6,711

c ) convertible bonds 43 44 579,980

4. Loans a) secured loans 45

b) loans on policies 46 5,664

c) other loans 47 48 5,664

5. Shares in investment pools 49

6. Deposits with banks 50

7. Other financial investments 51 52 587,817

IV - Deposits with ceding companies 53 562 54 630,204

D. INVESTMENTS BENEFITING LIFE POLICYHOLDERS BEARINGTHE RISK AND STEMMING FROM PENSION FUND MANAGEMENT

I - Investments relating to index-linked policies 55 118,169

II - Investments relating to pension fund management 56 1,922 57 120,091



1. Mathematical reserves 63 25,859

2. Complementary insurance premium reserve 64

3. Reserve for amounts payable 65 21


5. Other technical reserves 67 39

6. Technical reserves where investment risk is borne by policyholders and reserves relating to pension fund management 68 69 25,919


144

Valori dell'esercizio precedente


216

217

218 219

220 2,501

221 493,544

222 2,100

223 224 495,644

225

226 5,591

227 228 5,591

229

230

231 232 503,736

233 606 234 576,479

235 128,444

236 2,033 237 130,477

243 23,205

244

245 21

246

247 38

248 249 23,264


145


ASSETS

Current year


E. RECEIVABLES

I - Receivables relating to direct insurance due from: 1. 1. Policyholders a) premiums for the year 71 4,938

b) premiums for previous years 72 73 4,938

2. Insurance brokers and agents 74 8,918

3. Current account companies 75 118

4. Amounts to be recovered from policyholders and third parties 76 77 13,974

II - Receivables relating to reinsurance due from: - 1. Insurance and reinsurance companies 78 24

- 2. Reinsurance brokers and agents 79 80 24

III - Other receivables 81 13,764 82 27,762

F. OTHER ASSETSI - Tangible assets and inventory:

1. Office furniture and machines and internal transport systems 83

2. Registered chattel property 84

3. Plant and machinery 85

4. Inventory and other assets 86 87

II - Liquid funds 1. Bank and postal accounts 88 18,763

2. Cheques on hand and cash-in-hand 89 90 18,763

III - Own shares or quotas 91

IV - OTHER ASSETS 1. Suspense reinsurance accounts 92

2. Sundry assets 93 886 94 886 95 19,649

of which: giro account with non-life business 901 755

G. PREPAYMENTS AND ACCRUED INCOME 1. Interest 96 8,568


3. Other prepayments and accrued income 98 99 8,568

TOTAL ASSETS 100 837,941

146

Previous year


251 4,963

252 253 4,963

254 7,202

255 249

256 257 12,414

258 77

259 260 77

261 6,287 262 18,778

263

264

265

266 267

268 11,326

269 270 11,326

271

272

273 1,014 274 1,014 275 12,340

903 390

276 8,179

277

278 279 8,179

280 776,181

147



Current year


I - Subscribed share capital or equivalent fund 101 12,500

II - Share premium reserve 102 9,038

III - Revaluation reserves 103 235

IV - Legal reserve 104 2,465

V - Statutory reserves 105

VI - Reserves for purchase of own shares and shares of parent company 106

VII - Other reserves 107 14,932

VIII - Retained earnings or losses carried forward 108

IX - Net profit (loss) for the year 109 9,111 110 48,281

B. SUBORDINATED LIABILITIES 111 7,200



1. Mathematical reserves 118 598,750

2. Complementary insurance premium reserve 119 205

3. Reserve for amounts payable 120 26,745


5. Other technical reserves 122 3,601 123 629,312

D. TECHNICAL RESERVES WHERE THE INVESTMENT RISK IS BORNE BY POLICYHOLDERS AND RESERVES ARISING FROM PENSION FUND MANAGEMENT

I - Reserves arising from index- linked policies125 118,169

II - Reserves arising from pension fund management 126 1,922 127 120,091


148

Previous year

281 12,500

282 9,038

283 235

284 1,649

285

286

287 11,538

288

289 5,960 290 40,920

291 7,200

298 546,106

299 212

300 18,214

301 13

302 3,184 303 567,729

305 128,444

306 2,033 307 130,477


149



Current year



1. Pension and similar provisions 128

2. Provision for taxation 129 1,589

3. Other provisions 130 131 1,589

F. DEPOSITS FROM REINSURERS 132 25,896


I - Payables arising from direct insurance business due to: 1. Insurance brokers and agents 133 529

2. Current account companies 134 18

3. Guarantee deposits and premiums paid by policyholders 135 2

4. Guarantee funds in favour of policyholders 136 137 549

II - Payables arising from reinsurance business due to: 1. Insurance and reinsurance companies 138 521

2. Reinsurance brokers and agents 139 140 521

III - Bond issues 141

IV - Due to banks and other financial institutions 142

V - Secured debts 143

VI - Sundry loans and other financial payables 144

VII - Employees' leaving entitlement 145 1,265

VIII - Other sums payable 1. Policyholders' tax due 146 258

2. Other sums payable to taxation authorities 147 535

3. Social security charges payable 148 194

4. Sundry payables 149 644 150 1,631

IX - Other liabilities 1. Suspense reinsurance accounts 151

2. Commissions on premiums under collection 152 1,037

3. Other liabilities 153 173 154 1,210 155 5,176

of which: giro account with non-life business 902


150

Previous year


308

309 828

310 311 828

312 23,243

313 120

314 22

315 20

316 317 162

318 760

319 320 760

321

322

323

324

325 1,175

326 258

327 714

328 202

329 906 330 2,080

331

332 952

333 259 334 1,211 335 5,388

904


151



Current year



1. Interest 156 396


3. Other accrued expenses and deferred income 158 159 396

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 160 837,941



Current year



1. Sureties 161

2. Endorsements 162

3. Other personal guarantees 163 20,500

4. Collateral 164


1. Sureties 165

2. Endorsements 166


4. Collateral 168

III - Guarantees given by third parties in the interest of the company 169

IV - Commitments 170 19,933

V - Third party assets 171

VI - Assets pertaining to pension funds managed in favour and on behalf of third parties 172 1,922

VII - Securities held by third parties 173 582,152

VIII - Other memorandum and contingency accounts 174

152

Previous year


336 396

337

338 339 396

340 776,181

Previous year

341

342

343 20,500

344

345

346

347

348

349

350

351

352 2,033

353 597,923

354

153


154

Notes - Annex 3

Company VITTORIA ASSICURAZIONI Year 2005

Allocation of the net profit (loss) for the year between non-life and life businesses

Non-life businesses Life businesses Total

Result of technical account ............................................................... 1 20,629 21 5,686 41 26,315

Income on investments ........................................................................ + 2 15,925 42 15,925

Capital and financial charges …………………………………………- 3 3,398 43 3,398

Income on investments transferred from the life business technical account ............................................. + 24 2,246 44 2,246

Income on investments transferred to the non-life business technical account ........................................... - 5 10,170 45 10,170

Operating result ............................................................................... 6 22,986 26 7,932 46 30,918

Other income ....................................................................................... + 7 1,801 27 207 47 2,008

Other expense ..................................................................................... - 8 5,742 28 579 48 6,321

Extraordinary income .......................................................................... + 9 524 29 4,201 49 4,725

Extraordinary expense ......................................................................... - 10 79 30 50 79

Profit (loss) before taxation .............................................................. 11 19,490 31 11,761 51 31,252

Taxation on profit for the year ............................................................ - 12 8,271 32 2,650 52 10,922

Net profit (loss) for the year ............................................................. 13 11,219 33 9,111 53 20,330

155

Notes - Annex 4

Year 2005


Assets - Changes in intangible assets (caption B) and land and buildings (caption C.I)

Intangible assets Land and buildingsB C.I

Gross opening book value .............................................................. + 1 27,368 31 8,735

Increase of the year ........................................................................ + 2 12,786 32 34

for: acquisitions or increases ......................................................... 3 12,786 33 34

write-backs ............................................................................. 4 34

revaluations ............................................................................. 5 35

other variations ....................................................................... 6 36

Decrease of the year ....................................................................... - 7 374 37 355

for: sales or decreases ..................................................................... 8 349 38 355

permanent write-downs ........................................................... 9 39

other variations ........................................................................ 10 25 40

Gross closing book value (a) ........................................................ 11 39,780 41 8,414

Amortisation and depreciation:

Opening book value ....................................................................... + 12 42

Increase of the year ........................................................................ + 13 11,353 43

for: amortisation/depreciation charge of the year ......................... 14 11,353 44

other variations ........................................................................ 15 45

Decrease of the year........................................................................ - 16 5 46

for: disposals .................................................................................. 17 47

other variations ........................................................................ 18 5 48

Closing book value (b) (*) ............................................................ 19 11,348 49

Book value (a - b) .......................................................................... 20 28,432 50 8,414

Current value .................................................................................. 51 13,532

Total revaluations ........................................................................... 22 52

Total write-downs ......................................................................... 23 53

(*) of which resulting from fiscally-driven entries ............................................................... 24 54

156

Notes - Annex 5


Assets - Changes in investments in group and other companies: equity investments (caption C.II.1), bonds (caption C.II.2) and loans (caption C.II.3)

Equity investments Bonds LoansC.II.1 C.II.2 C.II.3

Opening book value ........................................................... + 1 191,757 21 41 7,115

Increase of the year ............................................................ + 2 18,917 22 42

for: acquisitions, subscriptions or lending ........................ 3 18,917 23 43

write-backs .................................................................. 4 24 44

revaluations ................................................................. 5

other variations ........................................................... 6 26 46

Decrease of the year: .......................................................... - 7 75,350 27 47 3,500

for: sales or repayments...................................................... 8 28 48 3,500

write-downs ................................................................. 9 29 49

other variations ............................................................ 10 75,350 30 50

Book value ....................................................................... 11 135,324 31 51 3,615

Current value ...................................................................... 12 142,955 32 52

Total revaluations ............................................................... 13

Total write-downs............................................................... 14 34 54

Caption C.II.2 includes:

Listed bonds ........................................................................................................................... 61

Unlisted bonds ....................................................................................................................... 62

Book value ............................................................................................................................. 63

of which: convertible bonds ................................................................................................... 64

157


Assets - Information on subsidiaries (*)

Number Type Listed or Business Name and registered offices Currency unlisted activity

(1) (2) (3)

1 B NQ 2 VITTORIA IMMOBILIARE S.p.A. - Largo Toscanini 1 - 20122 MILANO 242

2 C NQ 9 S.IN.T. S.p.A. - Piazza Bodoni 3 - 10123 TORINO 242

3 E NQ 2 B.P.C. S.p.A. - Via Roma 3 - 16121 GENOVA 242

4 E NQ 2 GRUPPO G.P.A. S.p.A. - Via Melchiorre Gioia 124 - 20125 MILANO 242

5 E Q 2 CAM FINANZIARIA S.p.A. - Via Sempione 230 - 20016 Pero MILANO 242

6 E NQ 3 BANCA PASSADORE & C. S.p.A. - Via E. Vernazza 27 - 16121 GENOVA 242

7 E NQ 3 B CR COOP VALDOSTANA S.c.r.l. - Frazione Taxel 26 - 11020 Gressan AOSTA 242

8 E NQ 3 BCC ROVIGO S.c.r.l. - Via Casalini n.10 - 45100 ROVIGO 242

9 E NQ 3 BANCA POPOLARE ETICA S.c.r.l. - Forzatè 2 - 35137 PADOVA 242

10 E NQ 9 DOWNALL ITALIA S.r.l. - Via Melchiorre Gioia 124 - 20125 MILANO 242

11 E NQ 9 SOFIGEA S.r.l. in liq. - Via della Frezza 70 - 00186 ROMA 242

12 E NQ 9 U.C.I. S.cons.r.l. - C.so Sempione 39 - 20145 MILANO 242

13 E NQ 9 RITA S.r.l. - P.zza San Babila 1 - 20122 MILANO 242

14 E NQ 9 CESTAR S.cons.r.l. - Via Pisacane 48 - 20016 Pero MILANO 242

15 E NQ 2 MEDINVEST INTERNATIONAL S.C.A.- 1, Avenue de la Gare -L1611 Lussemburgo 242

16 D NQ 2 YARPA INTERNATIONAL HOLDING N.V. - Herengracht 483, 1017 BT - Amsterdam 242

17 B NQ 2 INTERBILANCIA S.r.l. - Via Caldera, 21 - 20153 MILANO 242

18 B NQ 4 IMMOBILIARE BILANCIA S.r.l. - Largo Toscanini n.1 - 20122 MILANO 242

19 D NQ 2 LAUMOR BV - Herengracht 483, 1017 BT - Amsterdam 242

20 D NQ 9 TOURING VACANZE Srl - Corso Italia n.10 - 20122 MILANO 242

21 B NQ 4 VITTORIA PROPERTIES S.r.l. - Via Caldera n.21 - 20153 MILANO 242

22 B NQ 4 IMMOBILIARE BILANCIA PRIMA S.r.l. - Largo Toscanini n.1 - 20122 MILANO 242

23 B NQ 4 IMMOBILIARE BILANCIA SECONDA S.r.l. - Largo Toscanini n.1 - 20122 MILANO 242

24 B NQ 4 IMMOBILIARE BILANCIA TERZA S.r.l. - Largo Toscanini n.1 - 20122 MILANO 242

25 E NQ 3 BCC APUANA S.c.r.l. - Viale E.Chiesa n.4 - 54100 MASSA 242

26 E NQ 2 LIGURIA S.p.A. - Via Cantù n.1 - 20123 MILANO 242

27 E Q 2 MEDIOBANCA S.p.A. - P.tta E.Cuccia n.1 - 20121 MILANO 242

28 E NQ 9 MEDIORISCHI S.p.A - Via Melchiorre Gioia 124 - 20125 MILANO 242

29 E NQ 2 BCM & Partners LLP - 102 Jermyn Street - SW1Y 6EE Londra 2

30 E NQ 2 MARINA S.r.l. - Via Cesare Mangili 6 - 20121 MILANO 242

31 D NQ 2 WHITE FINANCE S.A. - 5, Boulevard de la Foire - L1528 Lussemburgo 242

32 E NQ 3 BCC COMPRENSORIO DEL CUOIO - Via Prov.Francesca Nord 78 - 56022 Castelfranco di So 242

(*) List of group companies and other companies held either directly or through trustee or nominee.

(1) Type (3) Business activity (4) Amounts in original currency a = Parent companies 1 = Insurance company b = Subsidiaries 2 = Financial company (5) Indicate total holding percentage c = Related companies 3 = Bank d = Associated companies 4 = Real estate company e = Other companies 5 = Trust

6 = Trust management company(2) Indicate Q for listed securities 7 = Consortium and NQ for unlisted securities 8 = Manufacturing company

9 = Other

158

Notes - Annex 6

Year 2005

Share capital Shareholders' equity (**) Net profit or loss Percentage held (5)

Amount Number of for the last year (**) Direct Indirect Total(4) shares (4) (4) % % %

7,700,000 15,400 27,619,071 12,371,525 87,24 87.24

1,000,000 1,000,000 14,79 14.79

9,635,000 20,500,000 19.91 19.91

8,528,000 16,400,000 5 5

179,897,270 345,956,289 4.58 4.58

35,000,000 35,000,000 2.76 2.76

1,893,287 366,916 1.04 1.04

621,595 24,256 0,42 0.42

18,443,226 357,150 0.28 0.28

100,000 100,000 5,08 5.08

47,664,600 47,664,600 1,46 1.46

510,000 1,000,000 0,69 0.69

5,720,000 11,000,000 0,93 0.93

2,040,000 2,040,000 0,71 0.71

76,636,000 7,663,600 3,91 3.91

675,000 1,500 96,448,491 20,513,939 25 25

80,000 80,000 138,725 27,196 80 17.45 97.45

2,000,000 2,000,000 39,505,350 5,750,756 97,66 97.66

20,000 40 1,949,425 1,087,976 25 25

12,900,000 12,900,000 14,871,884 225,412 24 24

4,000,000 4,000,000 4,005,356 5,365 99 0.87 99.87

2,000,000 2,000,000 9,119,821 6,836,698 100 100

1,000,000 1,000,000 9,410,495 917,579 100 100

100,000 100,000 87,008 -2,129 100 100

3,660,706 14,134 1.37 1.07 2.44

5,600,000 5,600,000 10,3 10.3

398,296,707 796,593,415 0,15 0.15

102,000 102,000 5.35 5.35

1,396,225 1,396,225 10 10

100,000 100,000 19.98 19.98

1,000,000 800,000 15,955,054 -927,560 32.17 32.17

5,206,000 10,412 0.96 0.94 1.9

(**) To be compiled only for subsidiary and associated companies

159


Assets - Changes in investments in group and other companies: equity investments

Number Type Name Increase of the year

Acquisitions Other(1) (2) (3) Quantity Amount increases

1 B V VITTORIA IMMOBILIARE S.p.A. 1,204 938

1 B D VITTORIA IMMOBILIARE S.p.A. 715 557

2 C D SINT. S.p.A. 73,950

3 E D B.P.C. S.p.A. 1,206,643 567

4 E D GRUPPO G.P.A. S.p.A.

5 E D CAM FINANZIARIA S.p.A. 6,339,918 10,144

6 E D BANCA PASSADORE & C. S.p.A. 26,993 159

7 E D BCC VALDOSTANA Soc.Coop.

8 E D BCC PAD.ORIENT.-ROVIGO Soc.Coop.

9 E D BANCA POPOLARE ETICA Soc.Coop.

10 E D DOWNALL ITALIA S.r.l.

11 E D SOFIGEA S.r.l. in liq.

12 E D U.C.I. S.cons.r.l.

13 E D RITA S.r.l.

14 E D CESTAR S.cons.r.l.

15 E D MEDINVEST INTERNATIONAL S.C.A.

16 D D YARPA INTERNATIONAL HOLDING N.V.

17 B D INTERBILANCIA S.r.l.

18 B V IMMOBILIARE BILANCIA S.r.l.

19 D D LAUMOR BV

20 D D TOURING VACANZE S.r.l.

21 B V VITTORIA PROPERTIES S.r.l.

22 B D IMMOBILIARE BILANCIA PRIMA S.r.l.

23 B D IMMOBILIARE BILANCIA SECONDA S.r.l.

24 B D IMMOBILIARE BILANCIA TERZA S.r.l.

Totali C.II.1a Parent companiesb Subsidiariesc Related companiesd Associated companiese Other companies

Totale D.I

Totale D.II

Total D.II

(1) It should match that indicated in Annex 6 (3) Indicate: D investment allocated to the non-life business (caption C.II.1)

(2) Type V investments allocated to the life business (caption C.II.1) a = Parent companies V1 investments allocated to the life business (caption D.I) b = Subsidiaries V2 investments allocated to the life business (caption D.2) c = Related companies Even if it is only a portion, the investment should be d = Associated companies identified with the same number e = Other companies

160

Notes - Annex 7

Year 2005

Decrease of the year Book value (4) Acquisition CurrentSales Other Quantity Amount cost value

Quantity Amount decreases

8,432 6,615 6,615 6,615

5,003 8,029 8,029 8,029

147,900 258 258 258

4,082,476 1,990 1,990 1,990

820,000 3,101 3,101 3,101

15,849,797 28,276 28,276 29,132

964,493 3,540 3,540 3,540

3,800 41 41 41

100 3 3 3

1,000 52 52 52

5,080 3 3 3

695,819 705 705 705

6,879 4 4 4

102,309 53 53 53

13,830 14,395 15 15 15

300,000 3,001 3,001 3,001

3,000 375 9,282 9,282 9,282

64,000 78 78 78

60,546,875 31,250 1,953,125 31,250 31,250 31,250

10 6 6 6

3,096,000 5,525 5,525 5,525

3,960,000 3,960 3,960 3,960

27,000,000 26,600 2,000,000 2,400 2,400 2,400

14,500 1,000,000 8,500 8,500 8,500

100,000 100 100 100

(4) Insert (*) if stated with the equity method (only for types b and d)

161


Assets - Changes in investments in group and other companies: equity investments

Number Type Name Increase of the year

Acquisitions Other(1) (2) (3) Quantity Amount increases

25 E D BCC APUANA Soc.Coop.

26 E D LIGURIA S.p.A. 22

27 E D MEDIOBANCA S.p.A.28 E D MEDIORISCHI S.p.A. 5,455 11

29 E D BCM & Partners LLP 139,623 207

30 E D MARINA S.r.l. 19,983 830

31 D D WHITE FINANCE S.A. 257,373 5,431

32 E D BCC COMPR. DEL CUOIO Soc.Coop. 100 50

Total C.II.1 170 18,746

a Parent companiesb Subsidiaries 1,495

c Related companiesd Associated companies 5,431

e Other companies 170 11,820

Total D.I

Total D.II

(1) It should match that indicated in Annex (3) Indicate: D investment allocated to the non-life business (caption C.II.1

(2) Type V investments allocated to the life business (caption C.II.1 a = Parent companies V1 investments allocated to the life business (caption D.I b = Subsidiaries V2 investments allocated to the life business (caption D.2 c = Related companies Even if it is only a portion, the investment should be d = Associated companies identified with the same numbe e = Other companies

162

Notes - Annex 7

Year 2005

Decrease of the year Book value (4) Acquisition CurrentSales Other Quantity Amount cost value

Quantity Amount decreases

193 50 50 50

576,800 516 516 516

1,167,000 11,443 11,443 18,222

5,455 11 11 11

139,623 207 207 204

19,983 830 830 830

257,373 5,431 5,431 5,431

100 50 50 50

75,350 135,325 135,325 142,957

72,350 60,932 60,932 60,932

258 258 258

3,000 20,244 20,244 20,244

53,891 53,891 61,523

(4) Insert (*) if stated with the equity method (only for types b and d

163

Not

es -

Ann

ex 8

Com

pany

VIT

TOR

IA A

SSIC

UR

AZI

ON

IY

ear

2005

Ass

ets -

Allo

catio

n ba

sed

on th

e us

e of

oth

er fi

nanc

ial i

nves

tmen

ts: e

quity

inve

stm

ents

, uni

t tru

st u

nits

, bon

ds a

nd o

ther

fixe

d-in

tere

st se

curit

ies,

sha

res i

n in

vest

men

t poo

ls a

nd o

ther

fina

ncia

l inv

estm

ents

(cap

tions

C.II

I.1, 2

, 3, 5

, 7)

I - N

on-li

fe b

usin

ess

Inv

estm

ent p

ortfo

lio

Trad

ing

portf

olio

Tota

lB

ook

valu

eC

urre

nt v

alue

Boo

k va

lue

Cur

rent

val

ueB

ook

valu

eC

urre

nt v

alue

1. E

quity

inve

stm

ents

: ....

......

......

......

......

......

.

1

21

41

61

81

101

a

) lis

ted

shar

es ..

......

......

......

......

......

......

......

2 2

2 4

2 6

2 8

2 1

02

b

) unl

iste

d sh

ares

....

......

......

......

......

......

....

3

23

43

63

83

103

c

) quo

tas .

......

......

......

......

......

......

......

......

....

4

24

44

64

84

104

2. U

nit t

rust

uni

ts ..

......

......

......

......

......

......

.....

5

779

25

480

45

5,00

0 6

55,

147

85

5,77

9 1

055,

627

3. B

onds

and

oth

er fi

xed-

inte

rest

secu

ritie

s ...

613

8,63

2 2

614

7,21

4 4

627

9,27

4 6

627

9,27

4 8

641

7,90

6 1

0642

6,48

8

a

1) li

sted

gov

ernm

ent s

ecur

ities

.....

......

.....

7

94,2

21 2

799

,489

47

279,

274

67

279,

274

87

373,

495

107

378,

763

a

2) o

ther

list

ed se

curit

ies .

......

......

......

......

..

843

,114

28

46,4

28 4

8 6

8 8

843

,114

108

46,4

28

b

1) u

nlis

ted

gove

rnm

ent s

ecur

ities

....

......

.

9 2

9 4

9 6

9 8

9 1

09

b

2) o

ther

unl

iste

d se

curit

ies .

......

......

......

....

10

1,29

7 3

01,

297

50

70

90

1,29

7 1

101,

297

c) c

onve

rtibl

e bo

nds .

......

......

......

......

......

..

11

31

51

71

91

111

5. S

hare

s in

inve

stm

ent p

ools

.....

......

......

......

.

12

32

52

72

92

112

7. O

ther

fina

ncia

l inv

estm

ents

....

......

......

......

1

3 3

3 5

3 7

3 9

3 1

13

II -

Life

bus

ines

s

Inve

stm

ent p

ortfo

lio

Trad

ing

portf

olio

Tota

lB

ook

valu

eC

urre

nt v

alue

Boo

k va

lue

Cur

rent

val

ueB

ook

valu

eC

urre

nt v

alue

1. E

quity

inve

stm

ents

: ....

......

......

......

......

......

.

121

141

161

181

201

221

a

) lis

ted

shar

es ..

......

......

......

......

......

......

......

1

22 1

42 1

62 1

82 2

02 2

22

b

) unl

iste

d sh

ares

....

......

......

......

......

......

....

123

143

163

183

203

223

c

) quo

tas .

......

......

......

......

......

......

......

......

....

124

144

164

184

204

224

2. U

nit t

rust

uni

ts .

......

......

......

......

......

......

.....

125

2,17

2 1

453,

117

165

185

205

2,17

2 2

253,

117

3. B

onds

and

oth

er fi

xed-

inte

rest

secu

ritie

s ...

1

2639

1,89

1 1

4643

3,39

6 1

6618

8,08

7 1

8618

8,10

2 2

0657

9,97

8 2

2662

1,49

8

a

1) li

sted

gov

ernm

ent s

ecur

ities

.....

......

.....

127

259,

471

147

287,

909

167

186,

484

187

186,

495

207

445,

955

227

474,

404

a

2) o

ther

list

ed se

curit

ies

......

......

......

......

..

1

2812

5,95

2 1

4813

9,01

9 1

681,

361

188

1,36

5 2

0812

7,31

3 2

2814

0,38

4

b

1) u

nlis

ted

gove

rnm

ent s

ecur

ities

.....

......

.

1

29 1

49 1

69 1

89 2

09 2

29

b

2) o

ther

unl

iste

d se

curit

ies .

......

......

......

....

1

306,

468

150

6,46

8 1

7024

2 1

9024

2 2

106,

710

230

6,71

0

c) c

onve

rtibl

e bo

nds .

......

......

......

......

......

..

1

31 1

51 1

71 1

91 2

11 2

31

5. S

hare

s in

inve

stm

ent p

ools

.....

......

......

......

.

1

32 1

52 1

72 1

92 2

12 2

32

7. O

ther

fina

ncia

l inv

estm

ents

.....

......

......

......

133

153

173

193

213

233

164

Not

es -

Ann

ex 9

Com

pany

VIT

TOR

IA A

SSIC

UR

AZI

ON

IY

ear

2005

Ass

ets -

Cha

nges

in o

ther

fina

ncia

l inv

estm

ents

- in

vest

men

t por

tfolio

: equ

ity in

vest

men

ts, u

nit t

rust

uni

ts, b

onds

and

oth

er

fix

ed-in

tere

st se

curit

ies,

shar

es in

inve

stm

ent p

ools

and

oth

er fi

nanc

ial i

nves

tmen

ts (c

aptio

ns C

.III.1

, 2, 3

, 5, 7

)

Equi

ty in

vest

men

tsU

nit t

rust

uni

tsB

onds

and

oth

er

Shar

es in

inve

stm

ent

Oth

er fi

nanc

ial

fixed

-inte

rest

secu

ritie

spo

ols

inve

stm

ents

C.II

I.1C

.III.2

C.II

I.3C

.III.5

C.II

I.7

Ope

ning

boo

k va

lue

......

......

......

......

......

......

......

......

......

......

....

+

1 2

13,

279

41

555,

660

81

101

Incr

ease

of t

he y

ear:

......

......

......

......

......

......

......

......

......

......

....

+

2 2

2 4

213

,775

82

102

for:

acqu

isiti

ons

......

......

......

......

......

......

......

......

......

......

......

....

3 2

3 4

39,

487

83

103

writ

e-ba

cks

......

......

......

......

......

......

......

......

....

4 2

4 4

4 8

4 1

04

tran

sfer

s fro

m th

e tra

ding

por

tfolio

......

......

......

......

......

.....

5

25

45

85

105

oth

er v

aria

tions

.....

......

......

......

......

......

......

......

......

......

......

6

26

46

4,28

8 8

6 1

06

Dec

reas

e of

the

year

: ....

......

......

......

......

......

......

......

....

-

7 2

732

8 4

738

,912

87

107

for:

sale

s ...

......

......

......

......

......

......

......

......

......

......

......

......

......

8

28

48

36,8

82 8

8 1

08

writ

e-do

wns

.....

......

......

......

......

......

......

......

......

......

......

.....

9

29

49

89

109

tran

sfer

s to

the

tradi

ng p

ortfo

lio ..

......

......

......

......

......

......

.

1

0 3

0 5

0 9

0 1

10

oth

er v

aria

tions

.....

......

......

......

......

......

......

......

......

......

......

11

31

328

51

2,03

0 9

1 1

11

Boo

k va

lue

.....

......

......

......

......

......

......

......

......

......

......

......

......

12

32

2,95

1 5

253

0,52

3 9

2 1

12

Cur

rent

val

ue ..

......

......

......

......

......

......

......

......

......

......

......

......

.

1

3 3

33,

597

53

580,

610

93

113

165

Notes - Annex 10

Year 2005


Assets - Changes in loans and deposits with banks (captions C.III.4, 6)

Loans Deposits with banks

C.III.4 C.III.6

Opening book value ....................................................................................... + 1 11,135 21

Increase of the year ........................................................................................ + 2 3,918 22

for: lending ..................................................................................................... 3 3,918

write-backs .............................................................................................. 4

other variations ........................................................................................ 5

Decrease of the year: ...........................................................….…........… - 6 2,831 26

for: repayments ............................................................................................. 7 2,831

write-downs.............................................................................................. 8

other variations ........................................................................................ 9

Book value .................................................................................................... 10 12,222 30

166

Not

es -

Ann

ex 1

1

Com

pany

VIT

TO

RIA

ASS

ICU

RA

ZIO

NI

Y

ear

2005

Ass

ets -

Lis

t of a

sset

s rel

atin

g in

dex-

linke

d po

licie

s (ca

ptio

n D

.I)

Uni

t tru

st c

ode:

Uni

t tru

st d

escr

iptio

n:

Cur

rent

val

ueA

cqui

sitio

n co

st

Yea

rPr

evio

us y

ear

Yea

rPr

evio

us y

ear

I.La

nd a

nd b

uild

ings

.....

......

......

......

......

......

......

......

......

......

.....

1

21

41

61

II.

Inve

stm

ents

in g

roup

and

oth

er c

ompa

nies

:

1. E

quity

inve

stm

ents

.....

......

......

......

......

......

......

......

......

......

. 2

22

42

62

2. B

onds

.....

......

......

......

......

......

......

......

......

......

......

......

......

....

3 2

3 4

3 6

3

3. L

oans

.....

......

......

......

......

......

......

......

......

......

......

......

......

....

4 2

4 4

4 6

4

III.

Uni

t tru

st u

nits

.....

......

......

......

......

......

......

......

......

......

......

......

5

75,4

42 2

574

,404

45

70,7

35 6

574

,077

IV.

Oth

er fi

nanc

ial i

nves

tmen

ts:

1.

Equ

ity in

vest

men

ts ..

......

......

......

......

......

......

......

......

......

....

65,

544

26

9,65

3 4

64,

547

66

8,82

3

2. B

onds

and

oth

er fi

xed-

inte

rest

secu

ritie

s ....

......

......

......

....

735

,282

27

43,2

50 4

735

,425

67

43,9

20

3. B

ank

depo

sits

.....

......

......

......

......

......

......

......

......

......

......

....

8 2

8 4

8 6

8

4. O

ther

fina

ncia

l inv

estm

ents

.....

......

......

......

......

......

......

......

9

29

49

69

V.

Oth

er a

sset

s ....

......

......

......

......

......

......

......

......

......

......

......

.....

10

1,40

4 3

071

50

1,40

4 7

071

VI.

Liqu

id fu

nds .

......

......

......

......

......

......

......

......

......

......

......

......

.. 1

149

7 3

11,

066

51

497

71

1,06

6

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

... 1

2 3

2 5

2 7

2

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

... 1

3 3

3 5

3 7

3

Tot

al ..

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

. 14

118,

169

34

128,

444

54

112,

608

74

127,

957

167

Not

es -

Ann

ex 1

2

Com

pany

VIT

TO

RIA

ASS

ICU

RA

ZIO

NI

Y

ear

2005

Ass

ets -

Lis

t of a

sset

s aris

ing

from

pen

sion

fund

man

agem

ent (

capt

ion

D.II

)

Cod

e: P

ensi

on fu

nd d

escr

i ptio

n

Cur

rent

val

ueA

cqui

sitio

n co

stY

ear

Prev

ious

yea

rY

ear

Prev

ious

yea

r

I. In

vest

men

ts in

gro

up a

nd o

ther

com

pani

es:

1. E

quity

inve

stm

ents

.....

......

......

......

......

......

......

......

......

......

. 1

21

41

61

2. B

onds

.....

......

......

......

......

......

......

......

......

......

......

......

......

....

2 2

2 4

2 6

2

II.

Oth

er fi

nanc

ial i

nves

tmen

ts:

1.

Equ

ity in

vest

men

ts ..

......

......

......

......

......

......

......

......

......

....

3 2

3 4

3 6

3

2. B

onds

and

oth

er fi

xed-

inte

rest

secu

ritie

s ....

......

......

......

....

462

4 2

478

5 4

461

7 6

476

5

3. U

nit t

rust

uni

ts ..

......

......

......

......

......

......

......

......

......

......

.....

51,

184

25

1,12

3 4

587

2 6

599

4

4. B

ank

depo

sits

.....

......

......

......

......

......

......

......

......

......

......

....

6 2

6 4

6 6

6

5. O

ther

fina

ncia

l inv

estm

ents

.....

......

......

......

......

......

......

......

7

27

47

67

III.

Oth

er a

sset

s ....

......

......

......

......

......

......

......

......

......

......

......

......

8

-58

28

-174

48

-58

68

-174

IV.

Liqu

id fu

nds .

......

......

......

......

......

......

......

......

......

......

......

......

.. 9

172

29

299

49

172

69

299

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

...

10 3

0 5

0 7

0

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

...

11 3

1 5

1 7

1

Tot

al ..

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

. 12

1,92

2 3

22,

033

52

1,60

3 7

21,

884

168

Notes - Annex 13


Liabilities - Changes in premium reserve (caption C.I.1) and claims reserve (caption C.I.2) of non-life business

Type Year Previous year Change

Premium reserve: Unearned premium reserve .......................................... 1 157,681 11 149,880 21 7,801

Reserve for current risks: ............................................. 2 9,350 12 9,350 22

Book value....................................................................... 3 167,031 13 159,230 23 7,801

Claims reserve:

Reserve for claims settlement and direct expenses ..... 4 371,608 14 341,073 24 30,535

Reserve for settlement costs ....................................... 5 21,875 15 25,881 25 -4,006

IBNR reserve ............................................................... 6 27,461 16 26,561 26 900

Book value ...................................................................... 7 420,944 17 393,515 27 27,429

169

Notes - Annex 14


Liabilities - Changes in the mathematical reserves (caption C.II.1) and profit participation and reimbursement reserve(caption C.II.4)

Type Year Previous year Change

Pure premium reserve ............................................................ 1 578,317 11 524,908 21 53,409

Premiums carried forward ..................................................... 2 18,086 12 18,781 22 -695

Mortality risk reserve ............................................................. 3 6 13 5 23 1

Integration reserves ............................................................... 4 2,341 14 2,412 24 -71

Book value ............................................................................ 5 598,750 15 546,106 25 52,644

Profit participation and reimbursement reserve...................... 6 11 16 13 26 -2

170

Not

es -

Ann

ex 1

5

Com

pany

VIT

TOR

IA A

SSIC

UR

AZI

ON

I

Yea

r20

05

Liab

ilitie

s - C

hang

es in

pro

visi

ons f

or c

ontin

genc

ies a

nd o

ther

cha

rges

(cap

tion

E) a

nd e

mpl

oyee

s' le

avin

g en

title

men

t (ca

ptio

n G

.VII

)

Empl

oyee

s' le

avin

g Em

ploy

ees'

leav

ing

entit

lem

ent a

nd

Prov

isio

n fo

r tax

atio

nO

ther

acc

rual

sen

title

men

tsi

mila

r pro

visi

ons

Ope

ning

boo

k va

lue

......

......

......

......

......

......

......

......

......

....

+

1 1

13,

260

21

741

31

5,42

4

Acc

rual

s of t

he y

ear..

......

......

......

......

......

......

......

......

......

....

+

2 1

21,

495

22

32

1,31

5

Oth

er in

crea

ses .

......

......

......

......

......

......

......

......

......

......

.....

+

3 1

3 2

3 3

3

Util

isat

ion

of th

e ye

ar ..

......

......

......

......

......

......

......

......

......

-

4 1

467

9 2

4 3

481

8

Oth

er d

ecre

ases

.....

......

......

......

......

......

......

......

......

......

......

-

5 1

5 2

5 3

5

Boo

k va

lue

......

......

......

......

......

......

......

......

......

......

......

......

6

16

4,07

6 2

674

1 3

65,

921

171

Not

es -

Ann

ex 1

6

Com

pany

VIT

TOR

IA A

SSIC

UR

AZI

ON

IY

ear

2005

List

of a

sset

s and

liab

ilitie

s rel

atin

g to

gro

up a

nd o

ther

com

pani

es

I: A

sset

s

Pare

nt c

ompa

nies

Subs

idia

ries

Rel

ated

com

pani

esA

ssoc

iate

d co

mpa

nies

Oth

er c

ompa

nies

Tota

l

Equi

ty in

vest

men

ts ..

......

......

......

......

......

......

......

.

1

260

,932

3

258

4

20,2

44

553

,889

6

135,

323

Bon

ds ..

......

......

......

......

......

......

......

......

......

......

....

7

8

9

1

0

11

1

2

Loan

s ....

......

......

......

......

......

......

......

......

......

......

..

13

1

4

15

1

63,

688

1

7

18

3,68

8

Shar

es in

inve

stm

ent p

ools

......

......

......

......

......

....

1

9

20

2

1

22

2

3

24

Ban

k de

posi

ts ..

......

......

......

......

......

......

......

......

...

25

2

6

27

2

8

29

3

0

Oth

er fi

nanc

ial i

nves

tmen

ts ..

......

......

......

......

......

3

1

32

3

3

34

3

5

36

Dep

osits

with

ced

ing

com

pani

es ..

......

......

......

....

3

7

38

3

9

40

4

1

42

Inve

stm

ents

rela

ting

to

in

dex-

linke

d po

licie

s.....

......

......

......

......

......

......

.. 4

3 4

4 4

5 4

6 4

7 4

8

Inve

stm

ents

rela

ting

to

pe

nsio

n fu

nd m

anag

emen

t ...

......

......

......

......

......

49

50

51

52

53

54

Rec

eiva

bles

rela

ting

to

dire

ct in

sura

nce

busi

ness

......

......

......

......

......

......

. 5

5 5

6 5

7 5

8 5

9 6

0

Rec

eiva

bles

rela

ting

to

re

insu

ranc

e bu

sine

ss ..

. ....

......

......

......

......

......

.....

61

62

63

64

65

66

Oth

er re

ceiv

able

s ....

......

......

......

......

......

......

......

.. 6

7 6

84,

077

69

70

71

72

4,07

7

Ban

k an

d po

stal

acc

ount

s.....

......

......

......

......

......

. 7

3 7

4 7

5 7

6 7

715

,608

78

15,6

08

Sund

ry a

sset

s ....

......

......

......

......

......

......

......

......

.. 7

9 8

0 8

1 8

2 8

3 8

4

Tot

al ..

......

......

......

......

......

......

......

......

......

......

.....

85

86

65,0

09 8

725

8 8

823

,932

89

69,4

97 9

015

8,69

6

of w

hich

: sub

ordi

nate

d as

sets

.....

......

......

......

......

91

92

93

94

95

96

172

List

of a

sset

s and

liab

ilitie

s rel

atin

g to

gro

up a

nd o

ther

com

pani

es

II: L

iabi

litie

s

Pare

nt c

ompa

nies

Subs

idia

ries

Rel

ated

com

pani

esA

ssoc

iate

d co

mpa

nies

Oth

er c

ompa

nies

Tota

l

Subo

rdin

ated

liab

ilitie

s ....

......

......

......

......

......

.....

97

9,24

0 9

8 9

910

010

110

29,

240

Dep

osits

from

rein

sure

rs ..

......

......

......

......

......

....

103

104

105

106

107

108

Paya

bles

aris

ing

from

dire

ct in

sura

nce

busi

ness

.....

......

......

......

......

......

.10

911

011

111

211

311

4

Paya

bles

aris

ing

from

re

insu

ranc

e bu

sine

ss ..

......

......

......

......

......

......

.....

115

116

117

118

119

120

Due

to b

anks

and

oth

er fi

nanc

ial i

nstit

utio

ns ..

...12

112

212

312

412

512

6

Secu

red

debt

s ....

......

......

......

......

......

......

......

......

.12

712

812

913

013

113

2

Sund

ry lo

ans a

nd o

ther

fina

ncia

l pay

able

s ....

.....

133

134

135

136

137

138

Sund

ry p

ayab

les .

......

......

......

......

......

......

......

......

139

140

414

189

142

143

714

410

0

Oth

er li

abili

ties .

......

......

......

......

......

......

......

......

..14

514

612

014

715

314

814

97

150

280

Tot

al ..

......

......

......

......

......

......

......

......

......

......

.....

151

9,24

015

212

415

324

215

415

514

156

9,62

0

173

Notes - Annex 17


List of classes I, II, III and IV of "guarantees, commitments and other memorandum and contingency accounts"

Year Previous year

I. Guarantees given:a) sureties and endorsements given in the interest of

parent companies, subsidiaries and related companies ................ 1 31

b) sureties and endorsements given in the interest of associated companies and other group companies ......................................... 2 32

c) sureties and endorsements given in the interest of third parties ... 3 33

d) other personal guarantees given in the interest of parent companies, subsidiaries and related companies ................. 4 20,500 34 20,500

e) other personal guarantees given in the interest of associated and other group companies .......................................... 5 35

f) other personal guarantees given in the interest of third parties .... 6 36

g) collateral against obligations of parent companies,subsidiaries and related companies ............................................... 7 37

h) collateral against obligations of associated companies and other group companies .......................................................... 8 38

i) collateral against third party obligations ....................................... 9 39

l) guarantees given against company's obligations .......................... 10 40

m) assets pledged as guarantee deposit againstinwards reinsurance ...................................................................... 11 41

Total ................................................................................................................ 12 20,500 42 20,500

II. Guarantees received:

a) from associated and other group companies ............................... 13 150 43

b) from third parties .......................................................................... 14 250 44 250

Total ................................................................................................................ 15 400 45 250

III. Guarantees given by third parties in the interest of the company:

a) from associated and other group companies.................................. 16 46

b) from third parties ........................................................................... 17 47

Total ................................................................................................................ 18 48

IV. Commitments:

a) purchase commitments with resale obligation .............................. 19 49

b) sale commitments with repurchase obligation .............................. 20 50

c) other commitments . ...................................................................... 21 47,460 51

Total ................................................................................................................ 22 47,460 52

174

Notes - Annex 18


Commitments for derivative transactions

Current year Previous yearDerivative Purchase Sale Purchase Sale

Futures: on shares 1 21 41 61

on bonds 2 22 42 62

on currencies 3 23 43 63

on exchange rates 4 24 44 64

other 5 25 45 65

Options: on shares 6 26 46 66

on bonds 7 27 47 67

on currencies 8 28 48 68


other 10 30 50 70

Swaps: on currencies 11 31 51 71


other 13 33 53 73

Other transactions 14 34 54 74 478

Total ............................................................... 15 35 55 75 478

Notes: - Include only derivative transactions existing at the balance sheet date which imply a commitment for the company Where the derivative does not exactly match one of the above captions or relates to more than one caption, it should be included in the one more related. No offsetting is allowed if not related to purchase/sale transactions relating to the same derivative category (same contents, maturity, underlying asset, etc.).

- Derivatives which involve or may involve capital forward exchanges should be stated at their regulated price; all other derivatives should be stated at their nominal value

- Derivatives involving two currency swaps should be stated only once, referring to the currency to be purchased. Derivatives involving both interest rate and currency swaps should only be included in currency swaps. Derivatives relating to interest rate swaps are classified as "purchases" or "sales" depending on whether or not they imply the fixed rate purchase or sale.

175

Not

es -

Ann

ex 1

9

Com

pany

VIT

TOR

IA A

SSIC

UR

AZI

ON

I

Yea

r20

05

Sum

mar

ised

non

-life

bus

ines

s tec

hnic

al a

ccou

nt

Gro

ss p

rem

ium

sG

ross

pre

miu

ms

Gro

ss c

laim

sM

anag

emen

tR

eins

uran

ceac

coun

ted

for

earn

edch

arge

fees

bala

nce

Dir

ect i

nsur

ance

:

Acc

iden

t and

hea

lth in

sura

nce

(cla

sses

1 a

nd 2

) ....

......

......

......

......

132

,278

231

,811

312

,452

411

,369

5-1

,380

Thi

rd-p

arty

mot

or li

abili

ty (c

lass

10)

625

6,78

3 7

256,

016

821

3,44

6 9

50,9

43 1

076

8

Hul

l ins

uran

ce fo

r mot

or v

ehic

les (

clas

s 3) .

......

......

......

......

......

.....

11

53,2

54 1

250

,239

13

21,8

08 1

416

,464

15

-320

Mar

ine,

avi

atio

n an

d tra

nspo

rt in

sura

nce

(cla

sses

4, 5

, 6, 7

, 11

and

12)

......

......

......

......

......

......

......

......

......

..16

6,34

017

6,50

518

2,00

319

1,32

020

-2,7

27

Fire

and

mis

cella

neou

s dam

ages

(cla

sses

8 a

nd 9

) ....

......

......

......

..21

38,5

8722

36,6

5823

17,6

5124

15,2

8125

-763

Thi

rd-p

arty

gen

eral

liab

ility

(cla

ss 1

3) ..

......

......

......

......

......

......

.....2

624

,000

2723

,679

2816

,545

298,

653

30-1

,481

Cre

dit a

nd b

ond

insu

ranc

e (c

lass

es 1

4 an

d 15

) ...

......

......

......

......

..31

7,55

632

7,82

533

10,8

6734

2,85

835

3,22

1

Pec

unia

ry lo

sses

(cla

ss 1

6) .

......

......

......

......

......

......

......

......

......

.....3

69,

339

377,

832

3814

439

3,04

440

-60

Leg

al p

rote

ctio

n (c

lass

17)

.....

......

......

......

......

......

......

......

......

......

..41

1,36

942

994

4324

4438

345

-419

Sup

port

and

assi

stan

ce (c

lass

) 18)

.....

......

......

......

......

......

......

......

...46

2,91

047

2,68

048

834

4985

150

-16

Tot

al d

irec

t ins

uran

ce ..

......

......

......

......

......

......

......

......

......

......

....5

143

2,41

652

424,

239

5329

5,77

454

111,

166

55-3

,177

Indi

rect

insu

ranc

e ..

......

......

......

......

......

......

......

......

......

......

......

...56

989

571,

617

5833

959

107

60-8

39

Tot

al d

omes

tic p

ortfo

lio ..

......

......

......

......

......

......

......

......

......

......

.6143

3,40

562

425,

856

6329

6,11

364

111,

273

65-4

,016

For

eign

por

tfolio

....

......

......

......

......

......

......

......

......

......

......

......

....66

6768

6970

Tot

al...

......

......

......

......

......

......

......

......

......

......

......

......

......

......

......

...71

433,

405

7242

5,85

673

296,

113

7411

1,27

375

-4,0

16

176

Notes - Annex 20

Company VITTORIA ASSICURAZIONI Year 2005Summarised life business premiums and reinsurance balance

Direct insurance Indirect insurance Total

Gross premiums: 1 117,760 11 36 21 117,796

a) 1. individual policies ........................................... 2 112,071 12 36 22 112,107

2. group policies .................................................. 3 5,689 13 23 5,689

b) 1. periodic premiums .......................................... 4 49,499 14 36 24 49,535

2. single premiums .............................................. 5 68,261 15 25 68,261

c) 1. non-profit participation contracts..................... 6 6,550 16 36 26 6,586

2. profit participation contracts............................ 7 106,731 17 27 106,731

3. contracts where the investment risk is borne by policyholders andpension fund .................................................... 8 4,479 18 28 4,479

Reinsurance balance .............................................................. 9 613 19 32 29 645

177

Notes - Annex 21


Income on investments (captions II.2 and III.3)


Income on equity investmentsDividends and other income on equity investments in group companies ................................................................... 1 1,773 41 4,703 81 6,476

Dividends and other income on equity investments 2 42 82

in other companies.................................................………….

Total ..............................................................................................................3 1,773 43 4,703 83 6,476

Income on investments in land and buildings ...........................................4 211 44 84 211

Income on other investments: Income on bonds issued by group companies................................................................... 5 45 85

Interest on loans to group companies .................................................................. 6 73 46 86 73

Income on unit trust units ..........................................................7 47 419 87 419

Income on bonds and other fixed-interest securities .................8 13,567 48 24,930 88 38,497

Interest on loans ....................................................................... 9 292 49 212 89 504

Income on shares of investment pools ...................................... 10 50 90

Interest on bank deposits............................................................ 11 51 91

Income on other financial investments ..................................... 12 52 92

Interest on deposits with ceding companies...............................13 9 53 27 93 36

Total ..............................................................................................................14 13,941 54 25,588 94 39,529

Adjustments to investment values: Land and buildings ....................................................................15 55 95

Equity investments in group companies.................................... 16 56 96

Bonds issued by group companies .................................................................. 17 57 97

Other equity investments ...........................................................18 58 98

Other bonds ............................................................................... 19 59 99

Other financial investments........................................................20 60 100

Total ..............................................................................................................21 61 101

Profits on sale of investments:Profit on sale of land and buildings ...........................................22 62 102

Profit on sale of equity investments in group companies .................................................................. 23 63 103

Profit on sale of bonds issued by groupcompanies ..................................................................................24 64 104

Profit on sale of other equity investments .................................25 65 105

Profit on sale of other bonds ..................................................... 26 66 14 106 14

Profit on sale of other financial investments..............................27 67 107

Total ..............................................................................................................28 68 14 108 14

TOTAL ........................................................................................................................ 29 15,925 69 30,305 109 46,230

178

Notes - Annex 22


Income and non-realised capital gains relating to investments benefiting policyholdersbearing the risk and investments stemming from pension fund management(caption II.3)

I. Investments relating to index-linked policies

Amount

Income on:Land and buildings ........................................................................................... 1

Investments in group companies ...................................................................... 2

Unit trust units ........................................................................................ 3 1,234

Other financial investments .............................................................................. 4 2,251

- of which: bonds............................................. 5 2,086

Other assets ...................................................................................................... 6 21

Total ..................................................................................................................................... 7 3,506

Profit on sale of investmentsProfit on sale of land and buildings .................................................................. 8

Profit on sale of investments in group companies ........................................... 9

Profit on sale of unit trust units ........................................................................ 10 1,444

Profit on sale of other financial investmentsi ................................................... 11 1,742

- of which: bonds ........................................... 12 659

Other income..................................................................................................... 13

Total ..................................................................................................................................... 14 3,186

Non-realised capital gains ................................................................................................. 15 5,804

TOTAL.......................................................................................................................................…......... 16 12,496

II. Investments relating to pension fund management

Amount

Income on:Investments in group companies....................................................................... 21

Other financial investments .............................................................................. 22 34

- of which: bonds............................................. 23 34

Other assets ...................................................................................................... 24 19

Total ..................................................................................................................................... 25 53

Profit on sale of investmentsProfit on sale of investments in group companies ........................................... 26

Profit on sale of other financial investments..................................................... 27 24

- of which: bonds ............................................ 28 2

Other income..................................................................................................... 29

Total ..................................................................................................................................... 30 24

Non-realised capital gains .................................................................................................. 31 206

TOTAL ......................................................................................................................................….....… 32 283

179

Notes - Annex 23


Capital and financial charges (captions II.9 and III.5)


Investment management and other charges

Charges relating to equity investments .................................. 1 102 31 44 61 146

Charges relating to investments in land and buildings............ 2 164 32 62 164

Bond charges .......................................................................... 3 1,527 33 1,690 63 3,217

Charges relating to unit trust units.......................................... 4 4 34 2 64 6

Charges relating to shares in investment pools ...................... 5 35 65

Other financial investment charges ........................................ 6 36 66

Interest on deposits from reinsurers ....................................... 7 926 37 1,102 67 2,028

Total .............................................................................................................. 8 2,723 38 2,838 68 5,561

Adjustments to investment values: Land and buildings ................................................................. 9 39 69

Equity investments in group companies ................................. 10 40 70

Bonds issued by group companies ......................................... 11 41 71

Other equity investments......................................................... 12 42 72

Other bonds ............................................................................ 13 675 43 331 73 1,006

Other financial investments .................................................... 14 44 74

Total .............................................................................................................. 15 675 45 331 75 1,006

Loss on sale of investmentsLoss on sale of land and buildings .......................................................................... 16 46 76

Loss on sale of equity investments ......................................... 17 47 77

Loss on sale of bonds ........................................................... 18 48 4 78 4

Loss on sale of other financial investments ........................... 19 49 79

Total .............................................................................................................. 20 50 4 80 4

TOTAL ................................................................................................................. 21 3,398 51 3,173 81 6,571

180

Notes - Annex 24


Capital and financial charges and non-realised capital losses relating to investments benefiting policyholders who bear the risk and investments stemming from pension fund management (caption II.10)

I. Investments relating to index-linked policies

Amount

Management charges arising from:Land and buildings ........................................................................................ 1

Investments in group companies ................................................................... 2

Unit trust units ........................................................................................ 3

Other financial investments ........................................................................... 4 1,941

Other assets .................................................................................................... 5 487

Total ................................................................................................................................... 6 2,428

Loss on sale of investmentsLoss on sale of land and buildings ................................................................. 7

Loss on sale of investments in group companies .......................................... 8

Loss on sale of unit trust units ....................................................................... 9 23

Loss on sale of other financial investments ................................................... 10 358

Other charges.................................................................................................. 11

Total ................................................................................................................................... 12 381

Non-realised capital losses ............................................................................................... 13 559

TOTAL ................................................................................................................................................. 14 3,368

II. Investments relating to pension fund management

Amounts

Management charges arising from:Investments in group companies .................................................................. 21

Other financial investments ........................................................................... 22 59

Other assets..................................................................................................... 23

Total ................................................................................................................................... 24 59

Loss on sale of investmentsLoss on sale of investments in group companies .......................................... 25

Loss on sale of other financial investments ................................................. 26

Other charges ................................................................................................. 27

Total ................................................................................................................................... 28

Non-realised capital losses ............................................................................................... 29 9

TOTAL ................................................................................................................................................. 30 68

181

Company VITTORIA ASSICURAZIONINon-life business- Summarised technical

Class 01 Class 02Accident insurance Health insurance

(name) (name)

Direct insurance gross of outwards reinsuranceGross premiums accounted for ....................................................... + 1 24,277 1 8,001

Change in premium reserve (+ o -) .................................................. - 2 467 2

Charges relating to claims ............................................................... - 3 8,056 3 4,396

Change in other technical reserves (+ or -) (1) ............................... - 4 4 483

Other technical captions, net (+ or -) ............................................... + 5 -236 5 -11

Management fees.............................................................................. - 6 8,675 6 2,694

Direct insurance technical result (+ or -) .......................................... A 7 6,843 7 417

Outwards reinsurance result (+ or -) ................................................ B 8 -1,228 8 -152

Indirect insurance net result (+ o -) .................................................. C 9 3 9 -2

Change in equalisation reserve (+ o -) ....................................... D 10 10

Income on investments transferred from non-technical account E 11 360 11 185

Result of technical account (+ or -) ...... (A + B + C - D + E) 12 5,978 12 448

Class 07 Class 08Cargo insurance Fire and natural events

(name) (name)

Direct insurance gross of outwards reinsuranceGross premiums accounted for ....................................................... + 1 2,097 1 24,010

Change in premium reserve (+ or -) ............................................... - 2 67 2 1,328

Charges relating to claims................................................................ - 3 909 3 7,688

Change in other technical reserves (+ or -) (1)................................. - 4 4

Other technical captions, net (+ o -) ................................................ + 5 -3 5 -335

Management fees ............................................................................ - 6 742 6 9,518

Direct insurance technical result (+ or -) .......................................... A 7 376 7 5,141

Outwards reinsurance result (+ or -) ............................................... B 8 -41 8 -380

Indirect reinsurance net result (+ o -) ............................................... C 9 9 50

Change in equalisation reserve (+ o -) ....................................... D 10 6 10 72

Income on investments transferred from non-technical account E 11 39 11 493

Result of technical account (+ or -) (A + B + C - D + E) 12 368 12 5,232

Class 13 Class 14Third-party general liability Credit insurance

(name) (name)

Direct insurance gross of outwards reinsuranceGross premiums accounted for + 1 24,000 1 1

Change in premium reserve (+ or -) ............................................... - 2 321 2 -1

Charges relating to claims................................................................ - 3 16,545 3

Change in other technical reserves (+ or -) (1) ............................... - 4 4

Other technical captions, net (+ or -) ............................................... + 5 -587 5

Management fees ............................................................................. - 6 8,653 6

Direct insurance technical result (+ or -) .......................................... A 7 -2,106 7 2

Outwards reinsurance result (+ or -) ............................................... B 8 -1,481 8

Indirect reinsurance net result (+ o -) ............................................... C 9 117 9

Change in equalisation reserve (+ o -) ....................................... D 10 10

Income on investments transferred from non-technical account E 11 1,405 11

Result of technical account (+ or -) (A + B + C - D + E) 12 -2,065 12 2

(1) This caption includes changes in "Other technical reserves" as well as changes in "Profit participation and reimbursement reserve"

182

Notes - Annex 25 Year 2005

account by line of business - Domestic portfolio

Class 03 Class 04 Class 05 Class 06Motor vehicle hulls Railway truck hulls Aviation hulls Marine hulls

(name) (name) (name) (name)

1 53,254 1 2 1 3,252 1 300

2 3,015 2 2 -323 2 -7

3 21,808 3 3 664 3 78

4 4 4 4

5 -406 5 5 5

6 16,464 6 6 358 6 88

7 11,561 7 2 7 2,553 7 141

8 -320 8 8 -2,316 8 -71

9 9 9 150 9 2

10 160 10 10 10

11 654 11 11 13 11 5

12 11,735 12 2 12 400 12 77

Class 09 Class 10 Class 11 Class 12Miscellaneous damages Third-party motor liability Third-party aviation liability Third-party marine liability


1 14,577 1 256,783 1 399 1 290

2 601 2 767 2 2 2 96

3 9,963 3 213,446 3 54 3 298

4 4 4 4

5 -190 5 -1,256 5 -1 5

6 5,763 6 50,943 6 74 6 58

7 -1,940 7 -9,629 7 268 7 -162

8 -383 8 768 8 -297 8 -2

9 2 9 3 9 1 9

10 22 10 10 10

11 231 11 6,201 11 11 8

12 -2,112 12 -2,657 12 -28 12 -156

Class 15 Class 16 Class 17 Class 18Bond insurance Pecuniary losses Legal protection Support and assistance


1 7,555 1 9,339 1 1,369 1 2,910

2 -268 2 1,507 2 375 2 230

3 10,867 3 144 3 24 3 834

4 4 4 4

5 -208 5 -15 5 5 -4

6 2,858 6 3,044 6 383 6 851

7 -6,110 7 4,629 7 587 7 991

8 3,221 8 -60 8 -419 8 -16

9 1 9 5 9 9

10 10 10 10

11 479 11 84 11 3 11 10

12 -2,409 12 4,658 12 171 12 985

183

Not

es -

Ann

ex 2

6

Com

pany

VIT

TOR

IA A

SSIC

UR

AZI

ON

IY

ear

2005

Sum

mar

ised

non

-life

bus

ines

s tec

hnic

al a

ccou

ntD

omes

tic p

ortfo

lio

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ct in

sura

nce

risk

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rect

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e ris

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ned

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ct ri

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insu

ranc

e ris

ksIn

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tal

12

34

5 =

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Prem

ium

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ount

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r ....

......

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nge

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s wel

l as c

hang

es in

"Pr

ofit

parti

cipa

tion

and

reim

burs

emen

t res

erve

"

184

N

otes

- A

nnex

27

Com

pany

VIT

TOR

IA A

SSIC

UR

AZI

ON

IY

ear

2005

Life

bus

ines

s - S

umm

aris

ed te

chni

cal a

ccou

nt b

y lin

e of

bus

ines

s - D

omes

tic p

ortfo

lio

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ss01

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ss02

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ss03

(nam

e)(n

ame)

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e)D

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t ins

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ce g

ross

of o

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ards

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ross

pre

miu

ms a

ccou

nted

for .

......

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4,08

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es re

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st M

anag

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The

cap

tion

"oth

er te

chni

cal r

eser

ves"

incl

udes

"ot

her t

echn

ical

rese

rves

" an

d "t

echn

ical

rese

rves

whe

re in

vest

men

t ris

k is

bor

ne b

y po

licyh

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rs a

nd re

serv

es re

latin

g to

pen

sion

fund

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agem

ent"

.

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ebra

ic su

m o

f the

item

s rel

atin

g to

the

dom

estic

line

of b

usin

ess a

nd p

ortfo

lio in

clud

ed in

cap

tions

II.2

, II.3

, II.9

, II.1

0 an

d II

.12

of th

e pr

ofit

and

loss

acc

ount

Who

le a

nd te

rm li

fe in

sura

nce

Insu

ranc

e li

nked

to u

nit t

rust

s M

arria

ge a

nd b

irth

insu

ranc

e

185

Not

es -

Ann

ex 2

8

Com

pany

VIT

TOR

IA A

SSIC

UR

AZI

ON

IY

ear

2005

Sum

mar

ised

life

bus

ines

s tec

hnic

al a

ccou

ntD

omes

tic p

ortfo

lio

Dire

ct in

sura

nce

risks

Indi

rect

insu

ranc

e ris

ksR

etai

ned

risks

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ct ri

sks

Tran

sfer

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risks

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rein

sura

nce

risks

Out

war

ds re

insu

ranc

e ris

ksTo

tal

12

34

5 =

1 - 2

+ 3

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Prem

ium

s acc

ount

ed fo

r ....

......

......

......

......

......

......

......

......

......

......

......

......

.....

+ 1

117,

760

11

3,11

6 2

136

31

41

114,

680

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rges

rela

ting

to c

laim

s.....

......

......

......

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......

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......

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291

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12

688

22

123

32

42

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in m

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and

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r tec

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) ...

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32,

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43

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et (+

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44

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1

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15

387

25

13 3

5 4

513

,380

Inco

me

on in

vest

men

ts n

et o

f the

por

tion

trans

ferr

ed to

the

no

n-te

chni

cal a

ccou

nt (*

*)...

......

......

......

......

......

......

......

......

......

......

......

......

...+

634

,203

26

24 4

634

,227

Res

ult o

f tec

hnic

al a

ccou

nt (+

or

-) ...

......

......

......

......

......

......

......

......

......

....

7

5,10

3 1

7-6

13 2

7-3

2 3

7 4

75,

684

(*

) T

he c

aptio

n "o

ther

tech

nica

l res

erve

s" in

clud

es "

othe

r tec

hnic

al re

serv

es"

and

"tec

hnic

al re

serv

es w

here

inve

stm

ent r

isk

is b

orne

by

polic

yhol

ders

and

rese

rves

rela

ting

to p

ensi

on fu

nd m

anag

emen

t".

(**)

Alg

ebra

ic su

m o

f the

item

s rel

atin

g to

the

dom

estic

por

tfolio

incl

uded

in c

aptio

ns I

I.2, I

I.3, I

I.9, I

I.10

and

II.1

2 of

the

prof

it an

d lo

ss a

ccou

nt

186

Notes - Annex 29


Summarised life and non-life business technical accounts - foreign portfolio

Section I:Non-life businesses

Total lines of business

Direct insurance gross of outwards reinsuranceGross premiums accounted for ........................................................................................... + 1

Change in premium reserve (+ or -)..................................................................................... - 2

Charges relating to claims ................................................................................................... - 3

Change in other technical reserves (+ or -) (1)..................................................................... - 4

Other technical captions, net (+ or -).................................................................................... + 5

Management fees ................................................................................................................ - 6

Direct insurance technical result (+ or -) ........................................................................ A 7

Outwards reinsurance result (+ or -) ........................................................................... B 8

Indirect insurance net result (+ or -)........................................................................... C 9

Change in equalisation reserves (+ or -) ......................................................... D 10

Income on investments transferred from non-technical account ................................ E 11

Result of technical account (+ or -) ................................................. (A + B + C - D + E) 12

Section II:Life business

Total lines of business

Direct insurance gross of outwards reinsurance Gross premiums accounted for ............................................................................................ + 1

Charges relating to claims ................................................................................................... - 2

Change in mathematical and other technical reserves (+ or -) (2) ....................................... - 3

Other technical captions, net (+ or -) ................................................................................... + 4

Management fees ................................................................................................................ - 5

Income on investments net of the portion transferred to the non-technical account (3) ..... + 6

Direct insurance result gross of outwards reinsurance (+ or -) ................................... A 7

Outwards reinsurance result (+ or -) ............................................................................... B 8

Indirect insurance net result (+ or -) ............................................................................... C 9

Result of technical account (+ or -) ............................................................... (A + B + C) 10

(1) This caption includes changes in "Other technical reserves" as well as changes in "Profit participation and reimbursement reserve"

(2) The caption "other technical reserves" includes "other technical reserves" and "technical reserves where investment risk is borne by policyholders and reserves arising from pension fund management".

(3) Algebraic sum of the items relating to the foreign portfolio included in captions II.3, II.2, II.3, II.9 and II.10 of the profit and loss account

187

Not

es -

Ann

ex 3

0

Com

pany

VIT

TOR

IA A

SSIC

UR

AZI

ON

IY

ear

2005

Inte

rcom

pany

rela

tions

hips

I: In

com

e

Pare

nt c

ompa

nies

Subs

idia

ries

Rel

ated

com

pani

esA

ssoc

iate

d co

mpa

nies

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er c

ompa

nies

Tota

l

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me

on in

vest

men

ts

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me

on la

nd a

nd b

uild

ings

.....

......

......

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......

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1

2

3

4

5

6

Div

iden

ds a

nd o

ther

equ

ity in

vest

men

ts...

......

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....

7

85,

291

9

1

0

11

1,18

5

12

6,47

6

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ds ..

......

......

......

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6

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s……

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.....

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27

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3

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9

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me

and

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pol

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rs

be

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sk a

nd in

vest

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ing

from

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nsio

n fu

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anag

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......

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44

45

46

47

48

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......

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56

57

58

59

60

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er in

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......

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62

63

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1

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it on

sale

of i

nves

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) ...

......

......

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3 7

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65,

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87

88

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91,

566

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6,93

0

188

Inte

rcom

pany

rela

tions

hips

II: E

xpen

se

Pare

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ompa

nies

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Ass

ocia

ted

com

pani

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er c

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stm

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t cha

rges

and

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Cha

rges

rela

ting

to in

vest

ors .

......

......

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91

92

93

94

95

96

Inte

rest

on

subo

rdin

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liab

ilitie

s ....

......

......

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508

98

99

100

101

102

508

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on

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sits

from

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sure

rs...

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104

105

106

107

108

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rect

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1511

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912

0

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rest

on

sum

s due

to b

anks

and

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l ins

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122

123

124

125

126

Inte

rest

on

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red

debt

s.....

......

......

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128

129

130

131

132

Inte

rest

on

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r sum

s pay

able

.....

......

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313

413

513

613

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8

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es o

n re

ceiv

able

s.....

......

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.139

140

141

142

143

144

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d th

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514

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714

814

915

0

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......

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115

215

315

415

515

6

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al ..

......

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......

......

......

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...15

750

815

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116

250

8

Cha

rges

and

non

-rea

lised

cap

ital l

osse

s on

inve

stm

ents

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ng p

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ders

be

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g th

e ri

sk a

nd in

vest

men

ts st

emm

ing

from

pe

nsio

n fu

nd m

anag

emen

t ....

......

......

......

......

......

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164

165

166

167

168

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s on

sale

of i

nves

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ts (*

) ....

......

......

......

......

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169

170

171

172

173

174

Ext

raor

dina

ry e

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se .

......

......

......

......

......

......

......

...17

517

617

717

817

918

0

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TA

L...

......

......

......

......

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150

818

218

318

418

518

650

8

(*) W

ith re

fere

nce

to th

e co

unte

rpar

ty

189

Not

es -

Ann

ex 3

1

Com

pany

V

ITTO

RIA

ASS

ICU

RA

ZIO

NI

Yea

rs20

05

Sum

mar

ised

dire

ct in

sura

nce

prem

ium

s acc

ount

ed fo

r

Non

-life

bus

ines

sLi

fe b

usin

ess

Tota

l

Esta

blis

hmen

t Es

tabl

ishm

ent

Esta

blis

hmen

t

Gro

ss p

rem

ium

s acc

ount

ed fo

r:

in It

aly

......

......

......

......

......

......

......

......

......

......

......

....

143

2,41

6

5 1

111

7,76

0 1

5 2

155

0,17

6 2

5

in o

ther

EU

cou

ntrie

s ....

......

......

......

......

......

......

......

. 2

6

12

16

22

26

in n

on-E

U c

ount

ries..

......

......

......

......

......

......

......

......

3

7

13

17

23

27

Tot

al ..

......

......

......

......

......

......

......

......

......

......

......

.....

443

2,41

6

8 1

411

7,76

0 1

8 2

455

0,17

6 2

8

Free

dom

to p

rovi

de se

rvic

esFr

eedo

m to

pro

vide

serv

ices

Free

dom

to p

rovi

de se

rvic

es

190

Notes - Annex 32

Company VITTORIA ASSICURAZIONI Year 2005Personnel expenses and directors' and statutory auditors' fees I: Personnel expenses


Employees' expenses:

Domestic portfolio: - Wages and salaries ............................................................................. 1 17,092 31 2,411 61 19,503

- Social security contributions .............................................................. 2 4,122 32 581 62 4,703

- Accruals to the employees' leaving entitlement and similar provisions ........................................................................ 3 1,153 33 162 63 1,315

- Other personnel expenses.................................................................... 4 1,443 34 205 64 1,648

Total ..................................................................................................... 5 23,810 35 3,359 65 27,169

Foreign portfolio: - Wages and salaries ............................................................................. 6 36 66

- Social security contributions............................................................... 7 37 67

- Other personnel expenses ................................................................... 8 38 68

Total ..................................................................................................... 9 39 69

Total........................................................................................................... 10 23,810 40 3,359 70 27,169

Consultants' fees: Domestic portfolio ................................................................................ 11 17,896 41 539 71 18,435

Foreign portfolio ……………………………………………………… 12 42 72

Total........................................................................................................... 13 17,896 43 539 73 18,435

Total personnel expenses......................................................................... 14 41,706 44 3,898 74 45,604

II: Allocation captions


Investment management charges........................................................... 15 201 45 224 75 425

Charges relating to claims ..................................................................... 16 22,737 46 76 22,737

Other acquisition costs ......................................................................... 17 7,889 47 1,134 77 9,023

Other administrative costs .................................................................... 18 10,574 48 2,540 78 13,114

Administrative and third party charges ................................................. 19 49 79

Other technical captions 20 305 50 80 305

Total .......................................................................................................... 21 41,706 51 3,898 81 45,604

III: Average number of employees for the year

Number

Managers ............................................................................................... 91 21

White collars ........................................................................................ 92 380

Blue collars ........................................................................................... 93

Other ..................................................................................................... 94

Total........................................................................................................... 95 401

IV: Directors and statutory auditors

Number Fees

Directors .................................................................................................... 96 16 98 1,050

Statutory auditors ………………………………………………………… 97 3 99 61

191

Annexes to the financial statements

Page

193 Solvency margin calculation schedule (paragraph 2 of article 61 of Legislative decree no. 174 of 17 March 1995)

199 Annexes from 1 to 4 to solvency margin calculation schedule

203 Solvency margin calculation schedule - (paragraph 2 of article 72 of Legislative decree no. 175 of 17 March 1995)

207 Annexes from 1, 2, 2 bis (class 11-12-13) and 3 to solvency margin calculation schedule

213 Solvency margin schedule of companies operating in both the life and non-life businesses

215 Form 1 Schedule of assets allocated to cover technical reserves (pursuant to paragraph 6 of article 31 of Legislative decree no. 174 of 17 March 1995) and related annex A.

221 Form 2 Schedule of assets allocated to cover technical reserves relating to class “D.I” of the balance sheet for contracts provided for by paragraphs 1 and 2 of article 30 of legislative decree no. 174 of 17 March 1995

225 Form 1 Schedule of assets allocated to cover technical reserves (pursuant to paragraph 6 of article 31 of Legislative decree no. 175 of 17 March 1995) and related annex A.

192


Year 2005

I. - Whole and term life insurance .................................................................. X

II. - Marriage and birth insurance ..................................................

III. - Unit-linked policies relating to classes I and II above ....................... X

IV. - Health insurance as per article 1, number 1, letter d), of EEC directive no. 79/267 of 5 March 1979 .................................................................................. X

V. - Capitalisation transactions as per article 40 of Legislative decree no. 174 of 17 March 1995 ... X

VI. - Investment pool management of funds set up to provide benefits onon death or survival or in the event of discontinuance or curtailment of activity. X

Complementary insurance (personal injury risks) ......................................................... X

Classes with respect to which the solvency margin has been calculated

Annex 3 to ISVAP regulation no. 2322 of 6 December 2004

SOLVENCY MARGIN CALCULATION SCHEDULE(article 61, paragraph 2, of Legislative decree no. 174 of 17 March. 174)


193

-1 Share capital proceeds to be received .......................... (equal to caption 1) .................................................. 0-2 Acquisition commissions to be amortised ................................................. (equal to caption 3) .................................................. 5,408-3 Other intangible assets ................................................................................... (equal to captions 6, 7 and 9) .................................... 339-4 Equity investments in parent companies .............................................................. (equal to caption 17) ................................................ 0-5 Own shares or quotas ........................................................................................... (equal to caption 91) ................................................ 0-6 Subscribed share capital or equivalent fund ........................................................ (equal to caption 101) .............................................. 12,500-7 Share premium reserve .......................................................................... (equal to caption 102) .............................................. 9,038-8 Revaluation reserves ........................................................................................... (included in caption 103) ................................ 235-9 Legal reserve ........................................................................................................ (equal to caption 104) .............................................. 2,465-10 Statutory reserves ................................................................................................. (equal to caption 105) ............................................... 0-11 Reserves for purchase of own shares and shares of parent company .................. (equal to caption 106) ............................................... 0-12 Other reserves : (1) ...........................................................................................................................................................………. 14,932-13 Losses carried forward ......................................................................................... (equal to caption 10(*) ) .................................. 0-14 Net loss for the year ............................................................................................. (equal to caption 10(*) ) .................................. 0-15 Retained earnings ................................................................................................. (equal to caption 108) ............................................... 0-16 Net profit for the year .......................................................................................... (equal to caption 109) ............................................... 9,111-17 Cumulative preference shares: (2)………………………………………………………………………………………….. 0-18 Subordinated liabilities: (3) .................................................................................. (included in caption 111) .......................................... 7,200-19 Net profit for year N: (4)................................................................................................................................................ 0-20 Net profit for year N - 1: (4)............................................................................................................................When used 0-21 Net profit for year N - 2: (4).............................................................................................................. for solvency margin 0-22 Net profit for year N - 3: (4)................................................................................................ purposes, pursuant to 0-23 Net profit for year N - 4: (4)............................................................................................................................paragraph 5, letter a), 0-24 Estimated annual net profit: (5)………………………………………………………………………… article 33 of Leg. d. no. 174/9 0-25 Average residual term of contracts at the end of year N .....................................................……… 0-26 Mathematical reserve calculated on a pure premium basis .............................................................................................................. 355,586-27 Mathematical reserve calculated on a pure premium basis relating to transferred risks ........................................................................ 0-28 Mathematical reserve calculated on a pure premium basis increased by the amortisation charge

on the acquisition cost included in tariff premiums ................................................................................................................................. 341,211-29 Mathematical reserve as per point (28) relating to outwards reinsurance ............................................................................................... 0-30 Sum of the differences between the "Life" accrued sums and mathematical reserves of all the contracts

for which payment of premium still continues ........................................................................................................................................ 1,368,696-31 Unrealised capital gains arising from the measurement of all investments, except for those

of an extraordinary nature …………………………………………………………………………………………………………… 0-32 Unrealised capital losses arising from the measurement of all investments ………………………………………………. 0-33 Expected liabilities to policyholders (6)…………………………………………………………………………. 0

GENERAL NOTE: all captions relating to outwards reinsurance transactions do not include amounts to be borne by CONSAP for legal transfers

(1) Include other reserves as per caption 107 excluding, for the first three years, the organisation reserve as per article 10, paragraph 5, of Legislative decree no. 174/95, showing its details below:

14,932

(2) Include cumulative preference shares, as per article 33, paragraph 4, letters a) and b) of Legislative decree no. 174/95, detailing:

cumulative preference shares as per article 33, paragraph 4, letter a) of Legislative decree no. 174/95

cumulative preference shares as per article 33, paragraph 4, letter b) of Legislative decree no. 174/95

(3) Include subordinated liabilities as per article 33, paragraph 4, letters a) and b) of Legislative decree no. 174/95, detailing:

term loans 7,200 open-end loans

undated securities and other financial instruments

(4) Include net profits realised in the last five years from operations in classes I, II,III and IV as per point A) and those set out in point B) of the table set out in annex I of Legislative decree no. 174/95

(5) Include the amount set out in the special report prepared by the actuary, considering the possibility of using this caption up to the

date on which the transitory period expires

(6) Include the amount set out in the special report prepared by the actuary……………………………………………………………………………………………………………

* indicate the loss absolute value

AVAILABLE RESERVE

I - CALCULATION BASIS FOR THE SOLVENCY MARGIN FOR THE YEAR N DERIVED FROM THE FINANCIAL STATEMENTS

Balance sheet captions- life business

194

I/II - Whole and term life, marriage and birth insurance-34 Mathematical reserves relating to direct insurance .........................................................................................................……. 483,527-35 Mathematical reserves relating to inwards reinsurance ....................................................................................……… 561-36 Mathematical reserves relating to outwards reinsurance ......................................................................................………… 25,554-37 Inwarded non-negative sums at risk ........................................................................................………. 1,602,012-38 Retained non-negative sums at risk after outwards reinsurance and retrocession .............................……….. 1,424,151-39 Inwarded non-negative sums at risk relating to term life policies

with a maximum term of three years ...................................................................................................................……………… 135,606-40 Inwarded non-negative sums at risk relating to term life policies

with a term of between three and five years .....................................................................……………… 74,726

Complementary insurance - Personal injury risks.-41 Gross premiums accounted for ................................................................................................................................................................. 694-42 Claims paid in year N: gross amount ...................................................................................................................................................... 214-43 Claims paid in year N: reinsurers' share ................................................................................................................................................... 0-44 Change in claims reserve in year N: gross amount (equal to caption 16 of annex 1) .............................................................................. 0-45 Change in claims reserve in year N: reinsurers' share .............................................................................................................................. 0-46 Claims paid in year N - 1: gross amount .................................................................................................................................................. 42-47 Claims paid in year N - 1: reinsurers' share ......................................................................................…. 0-48 Change in claims reserve in year N - 1: gross amount (equal to caption 17 of annex 1) ......................................................................... 85-49 Change in claims reserve in year N - 1: reinsurers' share ............................................................… 0-50 Claims paid in year N - 2: gross amount .................................................................................................................................................. 205-51 Claims paid in year N - 2: reinsurers' share ......................................................................................…. 0-52 Change in claims reserve in year N - 2: gross amount (equal to caption 18 of annex. 1) ........................................................................ 0-53 Change in claims reserve in year N - 2: reinsurers' share ............................................................… 0

IV - Health insurance -54 Mathematical reserves relating to direct insurance .................................................................................................................................. 403-55 Mathematical reserves relating to inwards reinsurance ........................................................................................................................... 0-56 Mathematical reserves relating to outwards reinsurance ......................................................................................................................... 312-57 Gross premiums accounted for ...................................................................................................................................................…… 280-58 Claims paid in year N: gross amount ......................................................................................................................…. 0-59 Claims paid in year N: reinsurers' share ...........................................................................................…. 0-60 Change in claims reserve in year N: gross amount (equal to caption 16 of annex 2) ......................................…. 0-61 Change in claims reserve in year N: reinsurers' share ................................................................….. 0-62 Claims paid in year N - 1: gross amount ................................................................………………………………….. 0-63 Claims paid in year N - 1: reinsurers' share ......................................................................................….. 0-64 Change in claims reserve in year N - 1: gross amount (equal to caption 17 of annex 2)...................................… 0-65 Change in claims reserve in year N - 1: reinsurers' share ............................................................… 0-66 Claims paid in year N - 2: gross amount ............................................................................................................…….. 0-67 Claims paid in year N - 2: reinsurers' share ......................................................................................…. 0-68 Change in claims reserve in year N - 2: gross amount (equal to caption 18 of annex. 2).............................……. 0-69 Change in claims reserve in year N - 2: reinsurers' share ............................................................… 0

V - Capitalisation transactions. -70 Mathematical reserves relating to direct insurance ......................................................................................................……… 114,286-71 Mathematical reserves relating to inwards reinsurance .....................................................................................……. 0-72 Mathematical reserves relating to outwards reinsurance ...........................................................................................……. 0

III/VI - Unit-linked policies and relating to pension fund managementWhere the company bears the investment risk:

-73 Reserves relating to direct insurance ....................................................................................................................………….. 4,549-74 Reserves relating to inwards reinsurance ................................................................................................................................................. 0-75 Reserves relating to outwards reinsurance .......................................................................................................................................... 0

Where policyholders bear the investment risk and the contract sets out the amount of administrative costs for a period exceeding five years:

-76 Reserves relating to direct insurance ....................................................................................................................................................... 115,549-77 Relating to pension fund management in the name and on behalf of third parties .................................................................................. 0

Where policyholders bear the investment risk and the contract sets out the amount of administrative costs for a period not exceeding five years:

-78 Net administrative costs of the last year (relating to unit-linked policies)..(8) 0-79 Net administrative costs of the last year (relating to pension fund management)…(9) 0

With mortality risk underwriting:-80 Inwarded non-negative sums at risk .......................................................................................................................................................... 1,018-81 Retained non-negative sums at risk after outwards reinsurance and retrocession ................................................................................... 1,018

(8) Include the amount set out in line c) of schedule 2 of annex 3 to the solvency margin calculation schedule as per article 61, paragraph 2, of Legislative decree no. 174/95, relating to class III(9) Include the amount set out in line c) of schedule 2 of annex 3 to the solvency margin calculation schedule as per article 61, paragraph 2, o Legislative decree no. 174/95, relating to class VI

ontinues: I - CALCULATION BASIS FOR THE SOLVENCY MARGIN FOR THE YEAR N DERIVED FROM THE FINANCIAL STATEMENTS

195

A) components

Paid up share capital or equivalent fund ......................................................................................... 12,500Reserves not allocated to specific commitments or to adjustments to asset captions:

legal reserve ............................................................................................................................................... 2,465-84 free reserves ............................................................................................................................................................ 24,205

Retained earnings:-85 retained earnings (*) .................................................................................................................. 0-86 net profit for the year (*) .................................................................................................................. 4,736-87 Total cumulative preference shares and subordinated liabilities within the limits of article 33, paragraph 4,

of Legislative decree no. 174/95 7,083of which:

-88 term subordinated loan or cumulative preference shares with fixed duration (amount not exceeding 25% of the lower of the amount set out in line (169) and that in line 168)……………….

-89 open-end loans…………………………………-90 undated securities and other financial instruments, including

cumulative preference shares other than those set out in article 33,paragraph 4, letter a) of Legislative decree no. 174/95………………………………

(90bis) Components of subsidiaries/investees........................................................................................................................... 0-91 Total from (82) to (90bis) ......................................... 50,989-92 Acquisition commissions to be amortised, as per article 33, paragraph 3, of Legislative decree no. 174/95 ………… 0

Other intangible assets .................................................................................................................................................. 339Own shares or investments in parent companies .......................................................................................................... 0Net loss for the year and losses carried forward ........................................................................................................... 0

-96 Total from (92) to (95) .............................................. 339-97 50,650

B) components

-98 50% of future net profits ........................................................................................................................................ 0-99 Difference between the mathematical reserve calculated

on a pure premium basis as per the financial statements decreased by the amount relating to transferred risks .....................................................................and the relevant mathematical reserve calculated on a pure premium basis increased by the amortisation charge onthe acquisition cost included in tariff premiums ...................................................................(within the limits set out in article 33, paragraph 5, letter b), of Legislative decree no. 174/95) 0

-100 Unrealised capital gains, net of capital losses and expected liabilities to policyholders, arising from the measurement of all investments………………………………………………………………………….. 0

-101 Half of the unpaid portion of the subscribed share capital or equivalent fund

has been paid-up .............................................................................................................................……… 0-102 0-103 Available solvency margin

(of which B) components ............%) 50,650

(*) Include only those amount that, pursuant to shareholders' resolution, remain, by rights, part of the company's assets

(84) = (7) + (8) + (10) + (11) + (12)(87) = (88) + (89) + (90) as long as (87) <= 0.5 * [lower of (168) and (169)](90bis) = total columns h - i - a - b of annex 4(92) = (2) - [ (26) - (27) - (28) + (29) ] as long as positive(98)= 0.5 * [(24)* (25)] - [(31)-(32)-(33)] ; as long as (98) < = 0.25 * [(lower of (168) and (169)] and (24) < = [(19)+(20)+(21)+(22)+(23)]/5; moreover (25) <= 6(99) = [ (26) - (27) - (28) + (29) ] - (2) as long as positive and [ (26) - (27) - (28) + (29)] < [3.5 / 100] x (30) (100)= [(31)-(32)-(33)] as long as [(31)-(32)-(33)] < = 0,10 * [lower of (168) and (169)](101) = 0.5 * (1) se (82) >= (6)/2 as long as (101) <= 0.5 * [lower of (168) and (169)]; (101) =0 if (82) < (6)/2

as long as at least 50% of the entire subscribed share capital or fund

Total B) components = (98)+(99)+(100)+(101)..................

Total A) and B) components) = (97) + (102) .....................

(95) = (13) + (14)

Total A) components = (91) - (96) ......................................

0

0

(93) = (3) (94) = (4) + (5)

II - AVAILABLE SOLVENCY MARGIN COMPONENTS

(82) = (6) - (1)

(83) = (9)

7,083

196

A) Whole and term life, marriage and birth insurance. -104 4/100 mathematical reserves relating to direct insurance and inwards reinsurance ...................................-105 retention rate relating to the above reserves (minimum 0.85) ....................................-106 (104) x (105) ............................................................ 18,338

Contracts whose sums at risk are not negative (excluding the termlife policies detailed in the following points)

-107 0.3/100 of sums at risk ................................................................................................................................... 4,175Contracts whose sums at risk are not negative (term life policies with a maximum term of three years):

-108 0.1/100 of sums at risk ....................................................................................… 136Contracts whose sums at risk are not negative (term life policies with with a term of between three and five years):

-109 0.15/100 of sums at risk ........................................................................................................... 112

-110 Total (107) + (108) + (109) .................................... 4,423-111 retention rate of sums at risk (minimum 0.50) .....................................-112 (110) x (111) ............................................................ 3,932-113 22,270

B) Complementary insurance - personal injury risks (point B of the table set out in Annex I of Legislative decree no. 174/95).

b1) Calculation in relation to the annual amount of premiums and contributionsGross premiums accounted for ...........................................................................................to be allocated:

-115 portion lower or equal to 50,000,000 EURO = x 0.18 = ........-116 portion exceeding 50,000,000 EURO = x 0.16 = ........

-117 Total (115) + (116) ...........................................-118 Retention level in relation to claims to be dealt with by the

company following outwards reinsurance (minimum 0.50) ..............................-119 125

b2) Calculation in relation to the in relation to the average claims charge of the last three years -120 Claims paid in the period: gross amount .............................................................................................-121 Change in claims reserve in the period: gross amount ......................................................................-122 Claims charge ..................................................................................................................................-123 Annual average: 1/3 of (122) .............................................................................................................

to be allocated:-124 portion lower or equal to 35,000,000 EURO = x 0.26 = ........-125 portion exceeding 35,000,000 EURO = x 0.23 = ........

-126 Total (124) + (125) ...........................................

-127 47

-128-129 Required margin B) year N - 1 .........…-130 Required margin B) ………………………….. .........………. 128

C) Health insurance. -131 4/100 mathematical reserves relating to direct insurance and inwards reinsurance ...................................-132 retention rate relating to the above reserves (minimum 0.85) .....................-133 (131) x (132) ............................................................ 14

c1) Calculation in relation to the annual amount of premiums and contributionsGross premiums accounted for .............................................................................................to be allocated:

-135 portion lower or equal to 50,000,000 x (0.18)/3 = ............-136 portion exceeding 50,000,000 x (0.16)/3 = ............

-137 Total (135) + (136) ...........................................-138 Retention level in relation to claims to be dealt with by the

company following outwards reinsurance (minimum 0.50) ..............................-139 9

c2) Calculation in relation to the in relation to the average claims charge of the last three years -140 Claims paid in the period: gross amount .............................................................................................-141 Change in claims reserve in the period: gross amount ......................................................................-142 Claims charge ..................................................................................................................................-143 Annual average: 1/3 of (142) .............................................................................................................

to be allocated:-144 portion lower or equal to 35,000,000 x (0.26)/3 = ............-145 portion exceeding 35,000,000 x (0.23)/3 = ............

-146 Total (144) + (145) ...........................................

-147 0-148

-149

-150 Required margin C) year N - 1 .........…..-151 Required margin C) ……………………… 23

15

Required margin c2, (146) x (138) ...............................

Greater amount between (139) and (147) .........……………… 9Required margin C): (133) + (148) .................. 23

EURO = 0 0

0

0

EURO = 0 0

Required margin c1, (137) x (138) ...............................

000

17

0.500

EURO = 280 17EURO = 0 0

0.850

(134) = (57) 280

Required solvency margin b) ………………………….. .........……….): greater of (11 125128

16

0 0

47Required margin b2, (126) x (118) ...............................

546182

182 47

Required margin b1, (117) x (118) ...............................

46185

0 0

125

1.000

Required margin A): (106) + (112)………………..

(114) = (41) 694

694 125

19,3640.947

0.889

III- AVAILABLE SOLVENCY MARGIN REQUIRED

197

D) Capitalisation transactions. -152 4/100 mathematical reserves relating to direct insurance and inwards reinsurance ....…

-153 retention rate relating to the above reserves (minimum 0.85) ........................-154 4,571

E) Unit-linked policies and relating to pension fund management.Where the company bears an investment risk

-155 4/100 reserves relating to direct insurance and inwards reinsurance ..........................................................-156 retention rate relating to the above reserves (minimum 0.85) ....................................-157 (155) x (156) ............................. 182

Where policyholders bear the investment risk and the contract sets outthe amount of administrative costs for more than five years

-158 1/100 gross reserves of direct insurance ........................................................................................................................................ 1,155Where policyholders bear the investment risk and the contract sets outthe amount of administrative costs for less than five years

-159 25/100 of the net administrative costs of the last year………………………………….. 0With mortality a mortality risk underwriting

-160 0.3/100 of non-negative sums at risk ..........................................................................................................-161 retention rate of sums at risk (minimum 0.50) -162 (160) x (161) .................... 3-163 1,340

-164 Overall required solvency margin (113) + (130) + (151) + (154) + (163) ...............................

(164bis) Capital requirements of subsidiaries/investees................................................................................... (164ter) Available solvency margin required...................................................................................................

-165 Guarantee fund: 1/3 of (164ter)-166 Minimum guarantee fund as per paragraph 2 of article 36 of Legislative decree no. 174/95

-167 Guarantee fund [greater amount between (165) and (166)] ....................

-168 Solvency margin required[greater amount between (164ter) and (167)] ....................................................................................... 28,332

(169) = (103) Available solvency margin ................................................................... 50,650 (170) = (169) - (168) Surplus (deficit) ................................................................................................................... 22,318

(104) = [4 / 100] x [ (34)+ (35)] (105) = [ (34) + (35) - (36) ] / [ (34) + (35) ] (107) = [0.3 / 100] x [ (37) - (39) - (40) ] (108) = [0.1 / 100] x (39) (109) = [0.15 / 100] x (40) (111) = (38) / (37) (118)= 1-[(43)+(47)+(51)+(45)+(49)+(53)]/[(42)+(46)+(50)+(44)+(48)+(52)] (*) (120) = (42) + (46) + (50) (121) = [(44)+(48)+(52)] (122) = (120) + (121) (130) = if (128) < (129) then (130) = (129)*[Mathematical reserve N (caption (2) - Annex 1)] / [Mathematical reserve N - 1 (caption (2) - Annex 1)] this ratio cannot be > 1; if 128>= 129 then 130 = 128

(131) = [4 / 100] x [ (54)+ (55)] (132) = [ (54) + (55) - (56) ] / [ (54) + (55) ] (138)= [(58+62+66)-(59+63+67)+(60+64+68)-(61+65+69)]/[(58+62+66)+(60+64+68)] (140) = (58)+(62)+(66) (141) = [(60)+(64)+(68)] (142) = (140) + (141) (151) = if (149) < (150) then (151) = (150)*[Mathematical reserve N (caption (2) - Annex 2)] / [Mathematical reserve N - 1 (caption (2) - Annex 2)] this ratio cannot be > 1; if 149>= 150 then 151 = 149 (152) = [4 / 100] x [ (70) + (71) ] (153) = [ (70) + (71) - (72) ] / [ (70) + (71) ] (155) = [4 / 100] x [ (73) + (74) ] (156) = [ (73) + (74) - (75) ] / [ (73) + (74) ] (158) = [1 / 100] x [ (76) + (77) ] (159) = (25/100) * [(78) + (79)] (160) = [0.3 / 100] x (80) (161) = (81) / (80) (164bis) = total column g of annex 4 (164ter) = (164) + (164bis)

28,3329,4443,0009,444

Solvency margin and guarantee fund

28,3320

31.000

Required margin E): (157) + (158) + (159) + (162) ......................................

Required margin D): (152) x (153) ............................……

1821.000

continues: III- AVAILABLE SOLVENCY MARGIN REQUIRED

4,5711.000

198

Annex 1 to the solvency margin calculation schedule as per article 61, paragraph 2, of Legislative decree no. 174 of 17 March 1995

Company VITTORIA ASSICURAZIONIYear 2005

YearsN N-1 N-2

-1 change in claims reserve: gross amount (included in caption 48 of the profit and loss account) ......................… 0 85 0

-2 Claims reserve net of outwards reinsurance 0 85 0

Portfolio transfers by claims reserve of the current and previous years *:- costs

-3 - direct insurance risks .......................................… 0 0 0-4 - outwards reinsurance of direct insurance risks ...................… 0 0 0-5 - inwards reinsurance risks ...........................................… 0 0 0-6 - outwards reinsurance of inwards reinsurance risks ..................… 0 0 0

- revenues-7 - direct insurance risks .......................................… 0 0 0-8 - outwards reinsurance of direct insurance risks .................… 0 0 0-9 - inwards reinsurance risks ...........................................… 0 0 0

-10 - outwards reinsurance of inwards reinsurance risks ..................… 0 0 0

Exchange rate adjustments to opening claims reserve - direct insurance risks:-11 -costs ...............................................................................................… 0 0 0-12 -revenues ............................................................................................. 0 0 0

- inwards reinsurance risks:-13 -costs ...............................................................................................… 0 0 0-14 -revenues ............................................................................................. 0 0 0-15 Total exchange rate adjustments (12 + 14 - 11 - 13) ….. 0 0 0

Change in claims reserve: gross amount to be used for solvency margin calculation purposes:

Matching ofthe captions of thesolvency margin

calculation schedule

-16 year N ..............…..….............................. (1+7+9+15) 0 caption 44 section I

-17 year N-1 ..............…...........................(1-3-5+7+9+15) 85 caption 48 section I-18 year N-2 ...........................................................(1-3-5) 0 caption 52 section I

* Costs and revenues arising from portfolio transfers relating to the current and previous years should not be netted,and, therefore, inwards reinsurance should not compensate outwards reinsurance.

Annex to the solvency margin calculation schedule - complementary insurance (personal injury risks)


Amount

199

Annex 2 to the solvency margin calculation schedule as per

Company VITTORIA ASSICURAZIONIYear 2005

YearsN N-1 N-2

-1 change in claims reserve: gross amount (included in caption 48 of the profit and loss account) .................… 0 0 0

(2) Claims reserve net of outwards reinsurance 0 0 0

Portfolio transfers by claims reserve of the current and previous years *:- costs

-3 - direct insurance risks .....................................… 0 0 0-4 - outwards reinsurance of direct insurance risks ...............… 0 0 0-5 - inwards reinsurance risks ....................................….. 0 0 0-6 - outwards reinsurance of inwards reinsurance risks ................… 0 0 0

- revenues-7 - direct insurance risks .....................................… 0 0 0-8 - outwards reinsurance of direct insurance risks ...............… 0 0 0-9 - inwards reinsurance risks ....................................….. 0 0 0

-10 - outwards reinsurance of inwards reinsurance risks ................… 0 0 0

Exchange rate adjustments to opening claims reserve - direct insurance risks:-11 -costs ...........................................................................................… 0 0 0-12 -revenues ......................................................................................... 0 0 0

- inwards reinsurance risks:-13 -costs ...........................................................................................… 0 0 0-14 -revenues ......................................................................................... 0 0 0-15 Total exchange rate adjustments (12 + 14 - 11 - 13) ….. 0 0 0

Change in claims reserve: gross amount to be used for solvency margin calculation purposes:

Matching ofthe captions of thesolvency margin

calculation schedule

-16 year N ..............…..….............................. (1+7+9+15) 0 caption 60 section I

-17 year N-1 ..............…...........................(1-3-5+7+9+15) 0 caption 64 section I-18 year N-2 ...........................................................(1-3-5) 0 caption 68 section I

* Costs and revenues arising from portfolio transfers relating to the current and previous years should not be netted,and, therefore, inwards reinsurance should not compensate outwards reinsurance.


Amount

article 61, paragraph 2, of Legislative decree no. 174 of 17 March 1995

Annex to the solvency margin calculation schedule - health insurance as per article 1, number 1, letter d, of EEC directive no. 79/267 of 5 March 1979 - guidelines for the calculation of the required solvency margin

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Year 2005

Motor, aviation, watercraft third-party liability, general third-party liability; credit insurance; bond insurance ............... XAccident insurance; health insurance; motor vehicle, marine, railway truck property damage; cargo insurance; fire and natural events; pecuniary losses; support and assistance............................ X

Miscellaneous damage; legal protection ........................................................................................................................ X

Lines of business

SOLVENCY MARGIN CALCULATION SCHEDULE(article 72, paragraph 2, of Legislative decree no. 175 of 17 March. 175)



203

-1 Share capital proceeds to be received .....................................................................(equal to caption 1) .................................................... -2 Acquisition commissions to be amortised and other acquisition costs................... (equal to captions 4 and 6 ) ....................................... -3 Other intangible assets ............................................................................................(equal to captions 7, 8 and 9) .................................... -4 Investments in parent companies ........................................................................... (equal to caption 17) .................................................. -5 Own shares or quotas ............................................................................................. (equal to caption 91) .................................................. -6 Subscribed share capital or equivalent fund .......................................................... (equal to caption 101) ................................................ -7 Share premium reserve ............................................................................... (equal to caption 102) ................................................ -8 Revaluation reserves ..................... ......................................................................... (equal to caption 103) ................................................ -9 Legal reserve .......................................................................................................... (equal to caption 104) ................................................ -10 Statutory reserves ................................................................................................... (equal to caption 105) ................................................ -11 Reserves for purchase of own shares and shares of parent company...................... (equal to caption 106) ................................................ -12 Other reserves (1) ..................................................................................................................................................…………… -13 Losses carried forward ........................................................................................... (equal to caption 108 (*) ) ............................ -14 Net loss for the year ................................................................................................(equal to caption 109 (*) ) ............................ -15 Retained earnings ................................................................................................... (equal to caption 108 ) ............................................... -16 Net profit for the year.............................................................................................. (equal to caption 109 ) ............................................... -17 Cumulative preference shares -2 ……………………………………………………………………………………………..-18 Subordinated liabilities (3) .............................................................. (included in caption 111) ........................................... -19 Unrealised capital gains arising from the measurement of all investments, except for those

of an extraordinary nature ……………………………………………………………………………………… …………………-20 Unrealised capital losses arising from the measurement of all investments …….………….……………………………….

Profit and loss account captions for the year N

-21 Gross premiums accounted for ............................................................................... (equal to caption 1) ........................................ -22 Gross premiums accounted for of classes 11, 12 and 13......................................... (see annex 2)……………….………….-23 Claims paid: gross amount ..................................................................................... (equal to caption 8) ........................................ -24 Claims paid of classes 11, 12 and 13: gross amount .............................................. (see annex 2)……………….………….-25 Claims paid: reinsurers' share ........................................................................... (equal to caption 9) ........................................ -26 Claims paid of classes 11, 12 and 13: reinsurers' share ......................................... (see annex 2)………...……..………….-27 Change in recoveries: gross amount ....................................................................... (equal to caption 11) ...................................... -28 Change in recoveries of classes 11, 12 and 13: gross amount ............................... (see annex 2)…………….…………….-29 Change in recoveries: reinsurers' share ............................................... (equal to caption 12) ...................................... -30 Change in recoveries of classes 11, 12 and 13: reinsurers' share ........................... (see annex 2)……………….………….-31 Change in claims reserve: gross amount ................................................................ (as per annex 1) ............................................. -32 Change in claims reserve of classes 11, 12 and 13: gross amount ......................... (see annex 2)…………………….…….-33 Change in claims reserve: reinsurers' share .................................................... (equal to caption 15) ...................................... -34 Change in claims reserve of classes 11, 12 and 13: reinsurers' share ......… (see annex 2)………………………….

(1) Include other reserves as per caption 107 excluding, for the first three years, the organisation reserve as per article 12 of Legislative decree no. 175/95, showing its details below:

(2) Include cumulative preference shares, as per article 33, paragraph 4, letters a) and b) of Legislative decree no. 175/95, detailing:

cumulative preference shares as per article 33, paragraph 4, letter a) of Legislative decree no. 175/95

cumulative preference shares as per article 33, paragraph 4, letter b) of Legislative decree no. 175/95

(3) Include subordinated liabilities as per article 33, paragraph 4, letters a) and b) of Legislative decree no. 175/95, detailing:

- term loans ....................................................................................................................................................................……….

- open-end loans .............................................................................................................................................................

- undated securities and other financial instruments .................................................................................................................................................

10,800

(*) Indicate the loss absolute value

-680

Available reserve 50,266

-327,4291,796

10,620

3987,418

513306

24,861276,54315,64055,727

10,800

00

433,406

00

11,2190

00

50,2660

17,50011,1046,1353,500

7,41015,275

00

I - CALCULATION BASIS FOR THE SOLVENCY MARGIN FOR THE YEAR N DERIVED FROM THE FINANCIAL STATEMENTS

Balance sheet captions- non-life business

0

204

Profit and loss account captions for the years prior to N

-35 Claims paid in year N - 1: gross amount ............................................................. (equal to caption 8) ....................…………-36 Claims paid of classes 11, 12 and 13 in year N - 1: gross amount ........…………… (as per annex 2)…………………………-37 Claims paid in year N - 1: reinsurers' share ……………………. (equal to caption 9) ………………………-38 Change in recoveries in year N - 1: gross amount ................................................ (equal to caption 11) ................................ -39 Change in recoveries of classes 11, 12 and 13 in year N - 1: gross amount ........................... (as per annex 2)…………………………-40 Change in recoveries in year N - 1: reinsurers' share…………… (equal to caption 12)........................………-41 Change in claims reserve in year N - 1: gross amount ................................. (as per annex 1)..................................….-42 Change in claims reserve of classes 11, 12 and 13 in year N - 1: gross amount.......................(as per annex 2)…………………………-43 Change in claims reserve in year N - 1: reinsurers' share…… (equal to caption 15).………………………-44 Claims paid in year N - 2: gross amount .................................................................. (equal to caption 8) .................................. -45 Claims paid of classes 11, 12 and 13 in year N - 2: gross amount .......................................... (as per annex 2)…………………………-46 Claims paid in year N - 2: reinsurers' share……………………………. (equal to caption 9) ………………………-47 Change in recoveries in year N - 2: gross amount ............................................. (equal to caption 11) ................................ -48 Change in recoveries of classes 11, 12 and 13 in year N - 2: gross amount ........................... (as per annex 2)…………………………-49 Change in recoveries in year N - 2: reinsurers' share…………… (equal to caption 12) ........................………-50 Change in claims reserve in year N - 2: gross amount ..................................... (as per annex 1) ..................................….-51 Change in claims reserve of classes 11, 12 and 13 in year N - 2: gross amount.......................(as per annex 2) ..................................….-52 Change in claims reserve in year N - 2: reinsurers' share…… (equal to caption 15) ………………………

To be compiled only by companies which exclusively or mainly deal with "particular risks" (**):

-53 Claims paid in year N - 3: gross amount ................................................................ (equal to caption 8) .................................. -54 Change in claims reserve in year N - 3: gross amount ............................................. (as per annex 1) ....................................... -55 Claims paid in year N - 4: gross amount ...................................................................... (equal to caption 8) .................................. -56 Change in claims reserve in year N - 4: gross amount ................................. (as per annex 1) ....................................... -57 Claims paid in year N - 5: gross amount .............................................................. (equal to caption 8) .................................. -58 Change in claims reserve in year N - 5: gross amount ............................................ (as per annex 1) ........................................ -59 Claims paid in year N - 6: gross amount ............................................................... (equal to caption 8) .................................. -60 Change in claims reserve in year N - 6: gross amount ............................................................ (as per annex 1) ........................................

(**) "Particular risks" are credit, storm, hail and frost risks

A) components

(61) = (6) - (1) Paid up share capital or equivalent fund................................................................................................ Reserves not allocated to specific commitments or to adjustments to asset captions:

(62) = (9) legal reserve ..................................................................................................................................................... -63 free reserves .....................................................................................................................................................

Retained earnings: -64 retained earnings ...................................................................................................... -65 net profit for the year ..................................................................................................... -66 Total cumulative preference shares and subordinated liabilities within the limits of article 33, paragraph 4,

of Legislative decree no. 175/95

-67-68

-69 (69bis) Components of subsidiaries/investees..................................................................................................................…

-70 Total from (61) to (69bis) ................................................

-71 Acquisition commissions to be amortised and other acquisition costs ........................................................... (72) = (3) Other intangible assets ......................................................................................................................…………….. (73) = (4) + (5) Own shares or investments in parent companies................................................................................…………… (74) = (13) + (14) Net loss for the year and losses carried forward .......................................................................................................

-75 Total from (71) to (74) .................................................

-76 Total A) components = (70) - (75)…………………..

B) components-77 Unrealised capital gains, net of capital losses arising from the measurement of all

investments…………………………………………………………………………………………..-78 Half of the unpaid portion of the subscribed share capital or equivalent fund

as long as at least 50% of the entire subscribed share capital or fundhas been paid-up .............................................................................................................................……………

-79-80 Available solvency margin

(of which B) components ……..%)

(63)= (7) + (8) + (10) + (11) + (12)(66) = (67) + (68) + (69) as long as (66) <= 0.5 * [lower of (105) and (104)](69bis) = Total columns h - i - a - b of annex 3(71) = 0.4 * (2)(77)= [(19) - (20)[ as long as [(19) - (20)] < = 0,20 * [lower of (105) and (104)](78)= 0.5 * (1) if (61) >= (6)/2 as long as (78) <= 0.5 * [lower of (105) and (104)]; (78) =0 if (61) < (6)/2(***) Include only those amount that, pursuant to shareholders' resolution, remain, by rights, part of the company's net assets

Total A) and B) components = (76) + (79)........………………. 92,030

0

0Total B) components = (77)+(78)........……………………… 0

00

18,239

92,030

-130

110,269

2,96415,275

undated securities and other financial instruments, including cumulativepreference shares other than those set out in article 33, paragraph 4,letter a) of Legislative decree no. 175/95……………………………… 0

set out in line (105) and that in line (104))………………. 13,545open-end loans ……….. 0

10,800

of which:term subordinated loan or cumulative preference shares with fixed duration (amount not exceeding 25% of the lower of the amount

(***) 0(***) 11,094

II - AVAILABLE SOLVENCY MARGIN COMPONENTS

17,500

3,50067,505

0000

0000

2,49119,6834,312

12,514

14,94259,20810,456

550

55,4913,854

13,544232,085

59,98410,019

485432

continues: I - CALCULATION BASIS FOR THE SOLVENCY MARGIN FOR THE YEAR N DERIVED FROM THE FINANCIAL STATEMENTS

245,35713,204

205

-81 Gross premiums accounted for in the last year ………………………………

to be allocated: -82 portion lower or equal to Euro 50,000,000 = x 0.18 = -83 portion exceeding 50,000,000 EURO 50,0 x 0.16 =

-84 Total a), (82) + (83)............................................................................. -85 Retention level (g) in relation to residual incurred claims

(minimum 0.500)

-86 Solvency margin required a) x g), (84) x (85) ...........................

(B) Calculation in relation to the average claims charge of the last 3 or 7 years only for companies which exclusively or mainly deal with "particular risks"-87 Claims paid in the period: gross amount ..................................................... -88 Change in claims reserve in the period: gross amount ...................…… -89 Change in recoveries during the period: gross amount ........................... -90 Claims charge .................................................................................................................. -91 Annual average: 1/3 or 1/7 of (90) *

to be allocated: -92 portion lower or equal to Euro 35,000,000 = x 0.26 = -93 portion exceeding Euro 35,000,000 = x 0.23 =

-94 Total b), (92) + (93) .........................................................................

-95 Solvency margin required b) x g), (94) x (85) ...........................

(96) = (86) Amount of solvency margin required in relation to the annual amount of premiums or contributions ……………………………………………………………………..

(97) = (95) Amount of solvency margin required in relation to the average claims charge ............ -98 Greater amount between (96) and (97) ....................................................

(98bis) Capital requirements of subsidiaries/investees................................................................................... (98ter) Available solvency margin required...................................................................................................

-99 Guarantee fund: 1/3 of (98ter) .....................................................................................................

-100 Minimum guarantee fund as per paragraphs 2 and 3 of article 39 of Legislative decree no. 175 -101 Guarantee fund [greater amount between (99) and (100)]..................

-102 Solvency margin required in year N [greater amount between (98ter) and (101)] ...........................................

-103 Solvency margin required in year N - 1.

-104 Solvency margin required ………………………

(105) = (80) Available solvency margin .............................

(106) = (105) - (104) Surplus (deficit) .............................................................................

(81) = (21) + [(0.5) * (22)] (85) = 1-\{[(25)+(37)+(46)]-[(29)+(40)+(49)]+[(33)+(43)+(52)]\}/\{[(23)+(35)+(44)]-[(27)+(38)+(47)]+[(31)+(41)+(50)]\} (**) (87) = (23) + (35) + (44) +(0.5) * [(24) + (36) + (45)] ; companies which deal with "particular risks" should also include: (53) + (55) + (57) + (59) (88) = (31) + (41) + (50) + (0.5) * [(32) + (42) + (51)]; companies which deal with "particular risks" should also include: (54) + (56) + (58) + (60) (89) = (27) + (38) + (47) + (0.5) * [(28) + (39) + (48)] (90) = (87) + (88) - (89) (98bis) = Total column g of annex 3 (98ter) = (98) + (98bis)(104)= (103) * [(113) - (59) of annex 1 to the notes to the financial statements] / [(293) - (239) of annex 1 to the notes to the financial statements], this ratio cannot exceed 1; if (102) < (103). If (102) > = (103): (104) =(102).

(*) For companies which have been operating for less than 3 (7) years, the average should be calculated on the basis of the actual years of operations.

92,030

37,653

18,059

54,178

49,17654,377

19954,17818,059

3,000

Solvency margin and guarantee fund

54,17849,87154,178

249,932 57,484

66,58449,871

28,667854,795284,932

35,000 9,100

0.74954,178

775,878107,584

395,837 63,334

72,334

with the company after outwards reinsurance

(A) Calculation in relation to annual premiums or contributions445,837

50,000 9,000

III- AVAILABLE SOLVENCY MARGIN REQUIRED

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212

Company: VITTORIA ASSICURAZIONI Year 2005

SOLVENCY MARGIN SCHEDULEOF COMPANIES OPERATING IN BOTH

THE LIFE AND NON-LIFE BUSINESS(article 61, paragraph 2, of Legislative decree no. 174 of 17 March 1995; article 72, paragraph 2, of Legislative decree no. 175 of 17 March 1995)


Reference captions of solvency margin forms Non-life LifeLife and non-life business business business

Solvency margin required: life business (168 ); non-life business (104) 1 28,332 11 54,377 21 82,709

Available solvency margin components 2 50,650 12 92,030 22 142,680 3 0 13 0 23 0

Total available solvency margin components 4 50,650 14 92,030 24 142,680

Surplus/deficit of available solvency margin components with respect to the amount of solvency margin to allocate 5 22,318 15 37,653 25 59,971

Utilisation pursuant to article 21, paragraph 3, of Legislative decree no. 174 of 17 March 1995, of explicit solvencymargin components still available as per articles 33, paragraph 2, letter a),

6 0 16 0 26 0

7 22,318 17 37,653 27 59,971

N.B. (e) always < (d) (e) always < (b)

(e)

f = (d + e)

total B) components): life business (102); non-life business (c)

(b + c)

d = [ (b+c) - a]

of Legislative decree no. 174/95 and 33, paragraph 2, of Legislative decree no. 175/95


Total

(a)

total A) components): life business (97); non-life business (7 (b)

213


214

215

FORM 1

Company Vittoria Assicurazioni

CALCULATION SCHEDULE OF ASSETS ALLOCATED TO COVER TECHNICAL RESERVES

(pursuant to article 31, paragraph 6, of Legislative decree no. 174 of 17 March 1995)

Year 2005

216

(in Euros)

TECHNICAL RESERVES At the end of2005

At the end of the previous year

Technical reserves (a) 1 628,735,726 2 567,112,087 - Legal outwards reinsurance (B) 3 0 4 0 The technical reserves requiring cover (a) - (B) 9 628,735,726 10 567,112,087

Balance at the end of 2005

Balance at the end of the previous year

ASSETS Maximum

amountAmount % Amount %

A INVESTMENTS rities A.1 Debt and other similar securities

A.1.1a Securities issued or underwritten by Governments belonging to zone A, pursuant to EC directive no. 2000/12, i.e., issued by public local or state agencies of member countries or by international organizations of which one or more than one of such member countries are part, which are traded in regulated markets;

491,019,550 78.10 410,068,369 72.31

13 14 15 16

A.1.1b Securities issued or underwritten by Governments belonging to zone A, pursuant to EC directive no. 2000/12, i.e., issued by public local or state agencies of member countries or by international organizations of which one or more than one of such member countries are part, which are not traded in regulated markets;

1,955,822 0.31 1,955,822 0.34

17 18 19 20

A.1.2a Bonds and other similar securities traded in regulated markets;

80,888,096 12.87 79,247,810 13.97

21 22 23 24

A.1.2b Bonds and other similar securities traded in regulated markets, issued by companies or banks which have their registered office in one of the countries included in zone A, whose financial statements have been audited for at least three years by a qualified audit company;

4,512,641 0.72 13,434 0.00

25 26 27 28

A.1.3 Other bonds or similar securities, other than those indicated above, as long as their residual maturity is less than one year;

0 0.00 0 0.00

29 30 31 32

A.1.4 Units of undertakings for collective investment in transferable securities (UCITS);

0 0.00 0 0.00

33 34 35 36

A.1.5 Repurchase agreements, with an obligation to repurchase and deposit securities with a bank; 20%

0 0.00 0 0.00

37 38 39 40

A.1.6 Bank acceptances made or issued by banks with registered office in one of the countries included in zone A;

0 0.00 0 0.00

41 42 43 44

A.1.7 Commercial papers as per Law no. 43 of 13 January 1994;

0 0.00 0 0.00

45 46 47 48

Sub total A.1.6 + A.1.7 10% 0 0.00 0 0.0049 50 51 52

A.1.8 Accrued interest income on securities eligible to cover technical reserve;

8,566,872 1.36 8,176,683 1.44

53 54 55 56

Total A.1 586,942,981 93.35 499,462,118 88.0757 58 59 60

to carry forward 586,942,981 93.35 499,462,118 88.07

217

Brought forward 586,942,981 93.35 499,462,118 88.07A.2 Interest-bearing loans secured by mortgages or

bank or insurance guarantees or other suitable guarantees given by local bodies; 20%

0 0.00 0 0.00

61 62 63 64 A.3 Equity instruments and other similar securities A.3.1.a Shares traded in regulated markets; 0 0.00 0 0.00

65 66 67 68 A.3.1b Equity investments in Bank of Italy or cooperative

societies and share not traded in regulated markets, issued by companies with registered office in one of the countries included in zone A, whose financial statements have been audited for at least three years by a qualified audit company;

0 0.00 0 0.00

69 70 71 72 A.3.2 Warrants traded in regulated markets; 3% 0 0.00 0 0.00

73 74 75 76 A.3.3 Units of undertakings for collective investment in

transferable securities (UCITS); 0 0.00 0 0.00

77 78 79 80 A.3.4 Close-end unit trust units, based in a member

country and traded in regulated markets; 5% 0 0.00 0 0.00

81 82 83 84 Total A.3 35% 0 0.00 0 0.00

85 86 87 88 A.4 Real estate sector A.4.1 Land, buildings and usufruct rights, to the extent of

the unpledged portion; 0 0.00 0 0.00

89 90 91 92 A.4.2 Leased buildings; 10% 0 0.00 0 0.00

93 94 95 96 A.4.3 Investments of more than 50% in the share

capital of real estate companies whose business object is solely the construction or management of non-luxury residential buildings or buildings for industrial or commercial use or to carry out farming activities, for their book value to the extent of the economic value of the buildings calculated in proportion to the holding percentage net of the total liabilities recorded in the financial statements of the real estate company;

18,500,000 2.94 48,529,555 8.56

97 98 99 100 A.4.4 Close-end real estate unit trust units, whose real

estate assets are at least 90% made up of buildings sold by the government or public social security institutions, regional authorities, local bodies or their consortia or company wholly owned, either directly or indirectly, by them;

0 0.00 0 0.00

101 102 103 104 A.4.5 Other close-end real estate unit trust units based in

a member country; 5% 2,172,172 0.35 2,500,000 0.44

105 106 107 108 Total A.4 40% 20,672,172 3.29 51,029,555 9.00

109 110 111 112 TOTAL A 607,615,153 96.64 550,491,673 97.07

113 114 115 116 B RECEIVABLES B.1 Receivables due from reinsurers, net of related

liabilities, including their share of technical reserves, duly documented, up to 90% of their amount;

0 0.00 0 0.00

117 118 119 120 B.2 Deposits with and receivables from ceding

companies, net of related liabilities, duly documented, up to 90% of their amount;

0 0.00 0 0.00

121 122 123 124 to carry forward 607,615,153 96.64 550,491,673 97.07

218

brought forward 607,615,153 96.64 550,491,673 97.07Receivables due from policyholders, net of related

liabilities, relating to direct insurance, to the extent that they are actually due within less than three months;

3,103,111 0.49 3,747,949 0.66

125 126 127 128 B.3.2 Receivables due from brokers and agents, net of

related liabilities, relating to direct insurance and reinsurance, to the extent that they are actually due within less than three months;

8,234,827 1.31 7,081,804 1.25

129 130 131 132 B.4 Advances on policies; 0 0.00 0 0.00

133 134 135 136 B.5 tax receivables either definitively assessed or

that are time-barred for tax assessment purposes;

5% 0 0.00 0 0.00

137 138 139 140 B.6 Receivables due from guarantee funds, net of

related liabilities; 5% 0 0.00 0 0.00

141 142 143 144 TOTAL B 11,337,938 1.80 10,829,753 1.91

145 146 147 148 C OTHER ASSETS C.1 Tangible assets, used in operations, other than

land and buildings, up to 30% of their book value adjusted by the related accumulated depreciation;

0 0.00 0 0.00

149 150 151 152 C.2 Tangible assets, not used in operations, other than

land and buildings, duly documented, up to 10% of their book value;

0 0.00 0 0.00

153 154 155 156 Sub total C.1 + C.2 5% 0 0.00 0 0.00

157 158 159 160 C.3 Acquisition commissions to be amortised up to

90% of their amount; 4,867,635 0.77 5,790,661 1.02

161 162 163 164 C.4 Accrued lease income up to 30% of their amount; 0 0.00 0 0.00

165 166 167 168 C.5 Reversionary interest 5% 0 0.00 0 0.00

169 170 171 172 Total C 4,867,635 0.77 5,790,661 1.02

173 174 175 176 Total (B + C) - C.3 25% 11,337,938 1.80 10,829,753 1.91

177 178 179 180 D Bank deposits, deposits with other financial

institutions or any other institutions authorised by the relevant supervisory authorities to accept deposits, net of the related liabilities

15%

4,915,000 0.78 0 0.00

181 182 183 184 E Other asset categories authorised by ISVAP

pursuant to paragraph 5 of article 25 of Legislative decree no. 174/95

0 0.00 0 0.00

185 186 187 188 GRAND TOTAL

ASSETS ALLOCATED TO COVER TECHNICAL RESERVES

628,735,726 100.00 567,112,087 100.00

189 190 191 192 Sub-total A.1.1b + A.1.2b + A.1.3 + A.3.1b 10% 6,468,463 1.03 1,969,256 0.35

193 194 195 196

219

Annex A to Form 1

List of commitments and assets allocated to cover technical reserves

(in Euros )

Currency Exchange rate (1)

Technical reserves

Allocated asset

European Union

EURO 1.000 628,735,726 628,735,726Danish krone 0 0Swedish krone 0 0Pound sterling 0 0Cyprus pound 0 0Czech koruna 0 0Estonian kroon 0 0Forint 0 0Lithuanian litas 0 0Latvian lats 0 0Maltese lira 0 0Polish Zloty 0 0Slovenian tolar 0 0Slovak Koruna 0 0

Other countries

Norwegian Kroner 0 0Swiss franc 0 0Icelandic Krona 0 0US dollar 0 0Canadian dollar 0 0Australian dollar 0 0New Zealand dollar 0 0Japanese Yen 0 0Saudi Arabian riyal 0 0Turkish lira 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL (2) 628,735,726 628,735,726

(1) Technical reserves assets allocated thereto are translated into the reporting currency at the year end exchange rate.

(2) Total technical reserves matches the amount shown in caption 9 of the annual schedule of assets allocated to cover technical reserves. Total assets matche the amount shown in caption 189 of such schedule.


220

FORM 2


CALCULATION SCHEDULE OF ASSETS ALLOCATED TO COVER THE TECHNICAL RESERVES RELATING TO CLASS “D.I” OF THE BALANCE SHEET

FOR CONTRACTS SET OUT IN ARTICLE 30, paragraphs 1 and 2, OF LEGISLATIVE DECREE NO. 174 OF 17 MARCH 1995

Year 2005

221

SECTION I - Contracts linked to the value of UCITS units (in Euros)

At the end of 2005 At the end of the previous year Allocated financial

instruments Allocated financial

instruments No. Name

Reference UCITS Technical reserves no. of units

held amount Technical reserves no. of units

held amount

4 BCC ST.CHRIST.GR.FONDI 78,511 4,827 78,511 529,982 37,002 529,9825 BCC ST.CHRIST.GR.SICAV 815,272 69,150 815,272 1,742,066 171,758 1,742,0666 B.SAN GIORGIO FONDI SICAV 564,155 52,975 564,155 1,036,232 109,755 1,036,2327 BCC BASSO VERONESE FONDI 18,855 1,454 18,855 56,077 5,136 56,0778 BCC BASSO VERONESE SICAV 62,999 1,165 62,999 82,101 2,208 82,1019 VIT.FORMULA RISP.GESTITO 2,200,559 113,451 2,200,559 2,604,492 156,280 2,604,492

14 BCC PADANA ORIENTALE 281,385 12,609 281,385 389,800 16,113 389,80015 BANCA PASSADORE 368,331 44,346 368,331 487,693 59,170 487,69316 BANCA DELLA CIOCIARIA 459,061 26,934 459,061 435,132 28,875 435,13217 BCC RIVOLTA D'ADDA 555,010 20,610 555,010 481,967 21,418 481,96722 BCC CESENA SAN GIORGIO 23,828 1,993 23,828 58,973 2,832 58,97323 BANCA METZLER 621,262 7,417 621,262 461,040 7,793 461,04024 UNIT ON LINE 29,505 798 29,505 25,500 1,323 25,50026 CREDICOOP LOMBARDO 945,875 25,233 945,875 876,334 28,376 876,33428 RIVOLTA D'ADDA 2 44,871 1,602 44,871 40,855 1,627 40,85529 BANCA DEL FUCINO 208,030 11,345 208,030 217,235 13,679 217,23530 SAN GIORGIO VC 2 232,026 8,977 232,026 277,166 14,313 277,16631 CIOCIARIA 2 114,236 5,601 114,236 102,273 5,686 102,27332 UNIT ON LINE 2 7,229 127 7,229 11,050 981 11,05033 AG. VITT. RISP. 2 855,966 40,342 855,966 987,331 56,969 987,33134 BASSO VERONESE 2 3,693 20 3,693 29,703 1,048 29,70335 VALDOSTANA 2 139,049 4,813 139,049 183,664 9,512 183,66436 B.CA ROMAGNA CENTRO 2 34,391 2,187 34,391 33,012 2,234 33,01237 B.CA PAD. ORIENTALE 2 23,758 499 23,758 28,052 752 28,05238 TRIOPLUS 8,170,284 78,433 8,170,284 9,113,961 86,103 9,113,96139 OPTIMIZ 8,049,451 84,991 8,049,451 8,546,558 90,805 8,546,55842 PRISMA 4,865,000 32,163 4,865,000 5,795,461 44,220 5,795,46143 VITTORIA FORMULA MIX 9,406,434 92,662 9,406,434 7,910,936 76,038 7,910,93644 AG. VITT. RISP. 5 (TAR (638U) 7,960,417 5,562 7,960,417 7,211,532 5,249 7,211,53248 AG. VITT. RISP. 4 TAR (637U) 8,730,730 7,199 8,730,730 8,091,121 7,111 8,091,121

TOTAL 55,870,1731.

759,4842.

55,870,1733.

57,847,2994.

1,064,3685.

57,847,2996.

222

SECTION II - Contracts linked to the value of internal fund unitsAt the end of 2005 At the end of the previous year

No. Name of internal fund Technical reserves Allocated financial instruments (1)

Technical reserves Allocated financial instruments

10 B.POP.PUGLIESE SICUREZZA 2,634,508 2,634,508 3,849,543 3,849,54311 B.POP.PUGLIESE SVILUPPO 4,760,835 4,760,835 6,193,561 6,193,56112 B.POP.PUGLIESE ESPANSIONE 4,010,477 4,010,477 4,288,141 4,288,14113 FONDO VITTORIA EUREKA 13,250,048 13,250,048 10,220,409 10,220,40921 FONDO LINEA 3,259,653 3,259,653 3,909,755 3,909,75540 VITTORIA OBBLIGAZIONARIO EURO 872,744 872,744 556,646 556,64641 VITTORIA AZIONARIO EUROPA 776,786 776,786 478,052 478,052

TOTAL 29,565,0517.

29,565,0518.

29,496,1079.

29,496,10710.

223

SECTION III - Contract linked to stock market or other reference indicesAt the end of 2005 At the end of the previous year

No. Stock market or other reference index



1 SMI - DAX 0 0 7,833,050 7,833,0502 NIKKEI 225 4,274,935 4,274,935 4,269,542 4,269,5423 MIB30 - SMI - S&P500 10,870,546 10,870,546 10,720,861 10,720,861

27 BASKET TECH. 3,405,163 3,405,163 3,623,725 3,623,72546 BASKET EQUITY 7,098,245 7,098,245 7,455,663 7,455,66347 BASKET EQ OXYG. (TAR 205X) 3,309,283 3,309,283 3,445,399 3,445,39949 MULTI CHANCE EUR/USD (TAR 206X) 3,775,551 3,775,551 3,752,636 3,752,636

TOTAL 32,733,72311.

32,733,72312.

41,100,87613.

41,100,87614.

GRAND TOTAL (2) 118,168,94715.

118,168,94716.

128,444,28217.

128,444,28218.

(1) Total amount of assets included (2) The grand total is the sum of the total shown in the three sections

224

FORM 1


CALCULATION SCHEDULE OF ASSETS ALLOCATED TO COVER TECHNICAL RESERVES

(pursuant to article 31, paragraph 6, of legislative decree no. 175 of 17 March 1995)

Year 2005

225

( in Euros )

TECHNICAL RESERVES At the end of2005

At the end of the previous year

Technical reserves to be covered 5 589,650,251 6 552,847,944

Balance at the end of 2005

Balance at the end of the previous year

ASSETS

Maximum Amount % Amount %

A INVESTMENTS A.1 Debt and other similar securities

A.1.1a Securities issued or underwritten by Governments belonging to zone A, pursuant to EEC directive no. 89/647, i.e., issued by public local or state agencies of member countries or by international organizations of which one or more than one of such member countries are part, which are traded in regulated markets;

402,991,191 68.34 329,467,560 59.59

9 10 11 12

A.1.1b Securities issued or underwritten by Governments belonging to zone A, pursuant to EEC directive no. 89/647, i.e., issued by public local or state agencies of member countries or by international organizations of which one or more than one of such member countries are part, which are not traded in regulated markets;

1,012,771 0.17 1,162,027 0.21

13 14 15 16

A.1.2a Bonds and other similar securities traded in regulated markets;

11,037,511 1.87 10,979,479 1.99

17 18 19 20

A.1.2b Bonds and other similar securities traded in regulated markets, issued by companies or banks which have their registered office in one of the countries included in zone A, whose financial statements have been audited for at least three years by a qualified audit company;

283,908 0.05 299,787 0.05

21 22 23 24

A.1.3 Other bonds or similar securities, other than those indicated above, as long as their residual maturity is less than one year ;

0 0.00 0 0.00

25 26 27 28

A.1.4 Units of undertakings for collective investment in transferable securities (UCITS);

5,000,058 0.85 5,000,058 0.90

29 30 31 32

A.1.5 Repurchase agreements, with an obligation to repurchase and deposit securities with a bank;

0 0.00 0 0.0020%

33 34 35 36

A.1.6 Bank acceptances made or issued by banks with registered office in one of the countries included in zone A;

0 0.00 0 0.00

37 38 39 40

A.1.7 Commercial papers as per Law no. 43 of 13 January 1994;

0 0.00 0 0.00

41 42 43 44

Sub total A.1.6 + A.1.7 0 0.00 0 0.0010%45 46 47 48

A.1.8 Accrued interest income on securities eligible to cover technical reserve;

4,561,078 0.77 4,452,830 0.81

49 50 51 52

TOTAL A.1 424,886,517 72.06 351,361,741 63.5585%53 54 55 56

to carry forward 424,886,517 72.06 351,361,741 63.55

226

brought forward 424,886,517 72.06 351,361,741 63.55A.2 Interest-bearing loans secured by mortgages or

bank or insurance guarantees or other suitable guarantees given by local bodies;

0 0.00 0 0.00

20% 57 58 59 60

A.3 Equity instruments and other similar securities A.3.1.a Shares traded in regulated markets; 39,719,077 6.74 29,575,208 5.35

61 62 63 64 A.3.1b Equity investments in Bank of Italy or cooperative

societies and share not traded in regulated markets, issued by companies with registered office in one of the countries included in zone A, whose financial statements have been audited for at least three years by a qualified audit company;

19,122,918 3.24 21,399,859 3.87

65 66 67 68 A.3.2 Warrants traded in regulated markets; 0 0.00 0 0.003%

69 70 71 72 A.3.3 Units of undertakings for collective investment in

transferable securities (UCITS); 0 0.00 0 0.00

73 74 75 76 A.3.4 Close-end unit trust units, based in a member

country and traded in regulated markets; 0 0.00 0 0.00

5% 77 78 79 80

58,841,995 9.98 50,975,067 9.22TOTAL A.3 25%81 82 83 84

A.4 Real estate sector A.4.1 Land, buildings and usufruct rights, to the extent of

the unpledged portion; 8,285,016 1.41 8,734,975 1.58

85 86 87 88 A.4.2 Leased buildings; 0 0.00 0 0.0010%

89 90 91 92 A.4.3 Investments of more than 50% in the share

capital of real estate companies whose business object is solely the construction or management of non-luxury residential buildings or buildings for industrial or commercial use or to carry out farming activities, for their book value to the extent of the economic value of the buildings calculated in proportion to the holding percentage net of the total liabilities recorded in the financial statements of the real estate company;

4,499,900 0.76 52,000,000 9.41

93 94 95 96 A.4.4 Close-end real estate unit trust units based in a

member country; 0 0.00 0 0.00

5%97 98 99 100

12,784,916 2.17 60,734,975 10.99TOTAL A.4 40%101 102 103 104

496,513,428 84.20 463,071,783 83.76TOTAL A

105106

107108

B RECEIVABLES B.1 Receivables due from reinsurers, net of related

liabilities, including their share of technical reserves, duly documented, up to 90% of their amount;

34,889,060 5.92 33,377,255 6.04

109 110 111 112 to carry forward 531,402,488 90.12 496,449,038 89.80

227

brought forward 531,402,488 90.12 496,449,038 89.80B.2 Deposits with and receivables from ceding

companies, net of related liabilities, duly documented, up to 90% of their amount;

0 0.00 0 0.00

113 114 115 116 Receivables due from policyholders, net of related

liabilities, relating to direct insurance, to the extent that they are actually due within less than three months;

19,283,948 3.27 25,332,503 4.58

117 118 119 120 B.3.2 Receivables due from brokers and agents, net of

related liabilities, relating to direct insurance and reinsurance, to the extent that they are actually due within less than three months;

24,465,527 4.15 24,213,384 4.38

121 122 123 124 B.4 Receivables arising from loss containment and

subrogation activities; 0 0.00 0 0.003%

125 126 127 128 B.5 Tax receivables either definitively assessed or

that are time-barred for tax assessment purposes;

0 0.00 0 0.00

5%129 130 131 132

B.6 Receivables due from guarantee funds, net of related liabilities;

0 0.00 0 0.005%

133 134 135 136 78,638,535 13.34 82,923,142 15.00

TOTAL B 137 138 139 140

C OTHER ASSETS C.1 Tangible assets, used in operations, other than

land and buildings, up to 30% of their book value adjusted by the related accumulated depreciation;

0 0.00 0 0.00

141 142 143 144 C.2 Tangible assets, not used in operations, other than

land and buildings, duly documented, up to 10% of their book value;

0 0.00 0 0.00

145 146 147 148 Sub total C.1 + C.2 0 0.00 0 0.005%

149 150 151 152 C.3 Acquisition costs to be amortised, in line with

technical reserve calculation methods, up to 90% of their amount;

6,668,795 1.13 5,853,020 1.06

153 154 155 156 C.4 Accrued lease income up to 30% of their amount; 0 0.00 0 0.00

157 158 159 160 6,668,795 1.13 5,853,020 1.06

Total C 161 162 163 164

50,418,270 8.55 55,398,907 10.02TOTAL B + C - B1 25%165 166 167 168

D Bank deposits, deposits with other financial institutions or any other institutions authorised by the relevant supervisory authorities to accept deposits, net of the related liabilities;

7,829,493 1.33 1,000,000 0.18

15%169 170 171 172

E Other asset categories authorised by ISVAP pursuant to paragraph 5 of article 25 of Legislative decree no. 175/95;

0 0.00 0 0.00

173 174 175 176 589,650,251 100.00 552,847,945 100.00

GRAND TOTAL ASSETS ALLOCATED TO COVER TECHNICAL

RESERVES177

178

179

180

Sub-total A.1.1b + A.1.2b + A.1.3 + A.3.1b 20,419,597 3.46 22,861,673 4.1410%181 182 183 184

228

Annex A

List of commitments and assets allocated to cover technical reserves

(in Euros )

Currency Exchange rate (1)

Technical reserves

Allocated asset

European Union

EURO 1.000 588,471,554 588,650,251Danish krone 0 0Swedish krone 9.389 6,627 0Pound sterling 0 0Cyprus pound 0 0Czech koruna 0 0Estonian kroon 0 0Forint 0 0Lithuanian litas 0 0Latvian lats 0 0Maltese lira 0 0Polish Zloty 0 0Slovenian tolar 0 0Slovak Koruna 0 0

Other countries

Norwegian Kroner 0 0Swiss franc 0 0Icelandic Krona 0 0US dollar 1.180 1,053,248 1,000,000Canadian dollar 1.373 16,349 0Australian dollar 0 0New Zealand dollar 0 0Japanese Yen 138.900 102,473 0Saudi Arabian riyal 0 0Turkish lira 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL (2) 589,650,251 589,650,251

(1) Technical reserves assets allocated thereto are translated into the reporting currency at the year end exchange rate,

(2) Total technical reserves matches the amount shown in caption 5 of the annual schedule of assets allocated to cover technical reserves. Total assets match the amount shown in caption 177 of such schedule.

229

Proposal for the appointment of the independent auditors for the audit of the separate and consolidated financial statements as at and for the years ending from 31 December 2006 to 2011 and for the review of the separate and consolidated half year reports at 30 June of the same years and the other activities required by article 155 of Legislative decree no. 158 of 24 February 1998

Dear shareholders,

The audit engagement conferred to BDO SALA SCELSI FARINA S.p.A. expires with the approval of the financial statements as at and for the year ended 31 December 2005. It is, therefore, necessary, pursuant to:

- articles 155 and 159 of Legislative decree no. 58 of 24 February 1998 - article 102 of Legislative decree no. 209 of 7 September 2005

to appoint the independent auditors for the audit of the separate and consolidated financial statements as at and for the years ending from 31 December 2006 to 2011 and for the review of the half year reports at 30 June of the same years and the other activities required by article 155 of Legislative decree no. 58 of 24 February 1998.

We propose to reappoint BDO Sala Scelsi Farina S.p.A., without requesting alternative offers. The board of statutory auditors is favourable to this proposal.

The engagement letter details the accounting principles and auditing standards to which the audit company will refer in performing its engagement.

Annual proposed fees total Euro 205,500. Such fees have been calculated on the basis of the estimated hours, totalling 2,135, quantified on a proportional basis according to the professional level of the auditors involved, in accordance with the guidelines set out in Consob communication no. 96003556 of 18 April 1996. The fees may be analysed as follows: – audit of the separate financial statements: 920 hours - Euro 78,500 – audit of the consolidated financial statements: 290 hours - Euro 28,000 – review of the separate and consolidated half year reports: 350 hours - Euro 29,000 – regular checks: 240 hours - Euro 20,500 – examination of the financial statements of the separately-managed businesses and of

the open pension fund: 585 hours - Euro 49,500.

Such fees do not include out-of-pocket expenses and office costs, which will be charged on a lump sum basis at 7% of total fees. Moreover, they do not include the fees to the independent actuary, the supervisory body contribution to Consob and VAT., the fees will be adjusted each year in accordance with changes to the cost of living index published by ISTAT after 1 January 2007. Should exceptional or unforeseeable events occur, the fees can be adjusted on an actual basis in accordance with the criteria set out in the above-mentioned Consob communication.

Board of Directors

Milan, 23 February 2006

230

Vittoria Assicurazioni

Open pension fund Vittoria Formula Lavoro (registration no. 22 of 4 November 1998)

2005 Financial Statements


232

Contents page DIRECTORS' REPORT V FINANCIAL STATEMENTS OF THE "PREVIDENZA GARANTITA" SECTOR Balance sheet - Accumulation period VII Profit and loss account - Accumulation period VII Notes to the financial statements IX FINANCIAL STATEMENTS OF THE "PREVIDENZA EQUILIBRATA" SECTOR Balance sheet - Accumulation period XV Profit and loss account - Accumulation period XV Notes to the financial statements XVII FINANCIAL STATEMENTS OF THE "PREVIDENZA CAPITALIZZATA" SECTOR Balance sheet - Accumulation period XXI Profit and loss account - Accumulation period XXI Notes to the financial statements XXIII REPORTS OF THE AUDITORS XXVII

233


234

At 31 December 2005, the net assets of Vittoria Formula Lavoro pension fund, that is the fund assets allocated to pension benefits, totalled Euro 1,921,761, Euro 268,770 of which relates to the "Previdenza Garantita" sector, Euro 21,733 to the "Previdenza Equilibrata" sector and Euro 1,381,259 to the "Previdenza Capitalizzata" sector.

The fund assets were invested in government securities for the bond portion of the portfolio or units of OEICs with investment purposes consistent with those of the investment line for the equity portion, except for December, when the assets were maintained liquid.

The table below shows a breakdown of returns on investment for the last three years, net and gross of management fees and administrative and tax charges, compared with benchmark returns.

2001 2002 2003 2004 2005

Previdenza Garantita

- net return 3.81% 7.30% 2.19% 3.83% 2.22%

- gross return 5.89% 9.84% 4.03% 5.98% 4.30%

- benchmark 5.90% 9.85% 3.98% 7.74% 5.28%

Previdenza Equilibrata

- net return -5.68% -8.11% 3.17% 9.30% 7.81%

- gross return -5.10% -7.75% 4.94% 11.77% 10.16%

- benchmark -3.79% -7.73% 9.25% 8.47% 11.69%

Previdenza Capitalizzata

- net return -13.75% -21.00% 3.57% 15.15% 14.51%

- gross return -14.00% -22.20% 5.74% 18.55% 17.91%

- benchmark -13.21% -23.59% 14.20% 9.13% 18.29%

Trading charges had an impact of 0.01% on the "Previdenza Equilibrata" while their impact on "Previdenza Garantita" and "Previdenza Capitalizzata" was immaterial.

Financial activities relating to the bond portion saw investments fully made in Italian treasury notes while on the equity side investments mainly related to OEICs managed by Schroder Investment Management.

There are no contributions due and not yet paid at year end.

DIRECTORS' REPORT

235

Administrative charges are borne by Vittoria Assicurazioni S.p.A.. Members are only charged entrance and individual management fees as provided for by the Fund regulations.

No transactions in conflict of interest pursuant to articles 7 and 8 of decree no. 703 issued by the Treasury Ministry on 21 November 1996 were carried out during 2005.

Expected future developments for 2006 mainly relate to the accumulation period.

Fund manager Board of directors

A. Acutis

Milan, 22 March 2005

236

"PREVIDENZA GARANTITA" SECTOR

BALANCE SHEET – ACCUMULATION PERIOD(in euros)

10 Investments 293,451 565,316a) Bank accounts 53,258 186,038c) Securities issued by governments or international

organisations 236,995 375,165l) Prepayments and accrued income 3,198 4,113

TOTAL ASSETS 293,451 565,316

10 Liabilities relating to pension activities 23,099 162,722a) Payables relating to pension activities 23,099 162,722

30 Liabilities relating to financing activities 399 722d) Other liabilities relating to financing activities 399 722

40 Sums payable to taxation authorities 1,183 2,251

TOTAL LIABILITIES 24,681 165,695

100 Net assets allocated to benefits 268,770 399,621

MEMORANDUM AND CONTINGENCY ACCOUNTS 0 8,141

2005 2004

PROFIT AND LOSS ACCOUNT – ACCUMULATION PERIOD(in euros)

10 Balance of pension activities -140,426 -61,963a) Contributions 114,064 100,760c) Transfers and surrenders -254,490 -162,723

20 Result of financing activities 16,109 28,413a) Dividends and interest 15,412 22,471b) Profits and losses on financial transactions 697 5,942

30 Operating costs 5,351 7,952a) Management company 5,351 7,952

40 Change in net assets allocated to benefits before substitute tax (10)+(20)+(30) -129,668 -41,502

50 Substitute tax -1,183 -2,251

Change in net assets allocated tobenefits (40)+(50) -130,851 -43,753

2005 2004

237


238

NOTES TO THE FINANCIAL STATEMENTS - PREVIDENZA GARANTITA General information Structure of the fund The Vittoria Formula Lavoro open pension fund was set up in compliance with article 9 of Legislative decree no. 124 of 21 April 1993 with the purpose of providing members with pension benefits additional to the mandatory pension scheme. The fund is based on defined benefits, the amount of which is calculated using the capitalisation principle.

The fund is divided into three sectors with the following investment policies. The "Previdenza Garantita" sector mainly invests in bonds issued by European government bodies. A minimum annual return rate of 2% is guaranteed, applicable to all managed assets, net of charges to be borne by members and the pension fund. The guarantee is valid for pension benefits and in the case of death or permanent disablement leading to the early pension benefit disbursement. The "Previdenza Equilibrata" sector mainly invests in bonds issued by European government bodies and, up to 50%, in European equities. The "Previdenza Capitalizzata" sector mainly invests in European equities.

The fund financial assets are managed by Vittoria Assicurazioni S.p.A., which can engage legally qualified entities to perform particular management activities.

The fund can invest in the OEICs included in EEC directive no. 85/611, as long as the investment plans and limits comply with the fund's investment policies.

The annuity payments are guaranteed by Vittoria Assicurazioni S.p.A.. Upon maturity of the right to pension benefits, the individual position, possibly integrated by the related performance guarantee, net of any portion to be paid in capital, is used as a single premium to set up an immediate lifetime annuity. As an alternative, the member can request a reversible lifetime annuity or a certain annuity for five or ten years and, subsequently, lifetime.

The fund is deposited with Banca Passadore & C.. Subject to its responsibilities, the bank can subdeposit the fund assets, in whole or in part, with Monte Titoli S.p.A., the central securities management department of the Bank of Italy or with entities for the centralised management of Italian and foreign securities and international bank counterparties.

Accounting policies for assets and liabilities The financial statements are prepared in order to give a better view of the substance rather than the type of the captions. In order to gain a better understanding of investments, sale and purchase transactions of financial instruments are recorded with reference to their trading date rather than their settlement date. Accordingly, captions relating to investments in financial instruments include transactions in financial instruments which have been traded but not yet settled, with a corresponding entry under the captions "Other financial assets" and "Other financial liabilities".

Income and charges are recorded on an accruals basis, regardless of the collection or payment date.

A waiver to the accruals principle is applied to contributions paid by members which are recorded as income only when collected. Accordingly, both the net assets allocated to benefits and individual positions are increased only after collection of contributions. Contributions due and not yet paid are recorded in the memorandum and contingency accounts.

239

Investments in listed financial instruments are stated at the market price of the day in which the valuation is made. For securities listed on more than one market, the most significant markets in terms of volume and trading are taken into account. Market prices are the closing prices indicated by Bloomberg.

Investments in OEICs are stated on the basis of the value allocated by the relevant managers to each unit.

Investments in unlisted financial instruments are stated on the basis of the relevant market trend, also considering all available elements in order to obtain a prudent estimate of their realisation value at the reference date.

Assets and liabilities expressed in foreign currencies are stated using the spot exchange rate ruling at year end. Forward transactions are stated using the forward rate ruling at year end for maturities similar to that of the relevant transaction.

Allocation of mutual costs

Mutual costs are fully allocated to the relevant sector whenever this can be easily identified. When this identification is not possible, they are allocated among the various sectors in accordance with their operations.

Costs and revenues recognition Costs and revenues are calculated monthly, in conjunction with each unit valuation, on an accruals basis, regardless of the collection or payment date.

Fund members The pension fund is open to all employees, consultants, free-lance professionals and members working with cooperatives. Members numbered 165 at year end, as follows:

Active Active consultants employees Total Previdenza Garantita 17 8 25 Previdenza Equilibrata 22 8 30 Previdenza Capitalizzata 45 65 110 Total 84 81 165

240

Variations in units issued - "Previdenza Garantita" The following table sets out the number and value of existing units at beginning and year end and units issued or cancelled during the year:

Number Value

Existing units at 1 January 2005 33,925.184 399,621 Units issued 9,595.600 114,881 Units cancelled * 21,199.404 255,306 Existing units at 31 December 2005 22,321.380 268,770 * including those part of units relating to the Euro 2 monthly charges for each member

Notes to the balance sheet - "Previdenza Garantita" Assets

10 – Investments

- Managers

The fund manager is Vittoria Assicurazioni S.p.A..

- Securities in portfolio

Securities in portfolio are as follows:

Name Investment assets Percentage of total

Btp 01.05.2008 5% 102,488 38.13% Btp 01.02.2013 4,75% 88,768 33.03% Btp 01.02.2015 4,25% 45,739 17.02%

- Transactions traded but not yet settled

None.

- Derivative contracts

None.

- Breakdown of investments by geographical area and currency

All investments are expressed in Euros.

- Average financial duration of investments

At 31 December 2005, the modified duration of investments in bonds was equal to 4.54 years.

- Investments with conflict of interest

None.

- Repurchase agreements

None.

- Value of acquisitions and sales

241

During the year, the fund acquired and sold government securities for Euro 60,221 and Euro 199,418, respectively.

- Trading commissions

Commissions arising from trading in securities totalled Euro 32 equal to 0.01% of traded volumes.

- Prepayments and accrued income

They relate to accrued coupons on the bond in portfolio and accrued interest income on bank current accounts.

Liabilities

10 - Liabilities relating to pension activities

- Payables relating to pension activities

These are existing pension-related payables.

30 - Liabilities relating to financing activities

- Other liabilities related to financing activities

They relate to accrued commissions not yet settled.

40 - Sums payable to taxation authorities

They relate to the substitute tax due for the year.

Notes to the profit and loss account - "Previdenza Garantita"

10 - Balance of pension activities

Contributions

Transfers Contributions from Contributions from Contributions from T O T A L* other sectors employers employees employees'

leaving entitlement 22.930 11.021 62.939 17.991 114.881 * the amount is stated net of operating costs incurred for each transaction in the profit and loss

account

Transfers and surrenders

Transfers Transfers to other Surrenders T O T A L to other sectors pension schemes - 5.069 249.421 254.490

20 - Result of financing activities

Dividends and interest Profits and losses on financial transactions Listed loan securities 14.230 697 Bank accounts 1.182 Total 15.412 697

242

30 - Operating costs

- Management company

Operating costs entirely relate to the management fees due to Vittoria Assicurazioni S.p.A..

243


244

"PREVIDENZA EQUILIBRATA" SECTOR

BALANCE SHEET – ACCUMULATION PERIOD

(in euros)

10 Investments 284,178 336,786a) Bank accounts 36,090 25,057c) Securities issued by governments or international

organisations 145,760 181,594h) OEIC units 100,511 128,302l) Prepayments and accrued income 1,459 1,409n) Other financial assets 358 424

30 Tax credits 0 3,262

TOTAL ASSETS 284,178 340,048

10 Liabilities relating to pension activities 9,280 10,268a) Payables relating to pension activities 9,280 10,268

30 Liabilities relating to financing activities 334 347d) Other liabilities relating to financing activities 334 347



100 Net assets allocated to benefits 271,733 325,948


20042005


10 Balance of pension activities -77,124 -214a) Contributions 54,858 61,845b) Advances 0 -20,930c) Transfers and surrenders -131,982 -41,129

20 Result of financing activities 29,712 35,948a) Dividends and interest 10,091 11,825b) Profits and losses on financial transactions 19,621 24,123

30 Operating costs 3,972 4,269a) Management company 3,972 4,269

40 Change in net assets allocated tobenefits before substitute tax (10)+(20)+(30) -51,384 31,465

50 Substitute tax -2,831 -3,485

Change in net assets allocated tobenefits (40)+(50) -54,215 27,980

2005 2004

245


246

NOTES TO THE FINANCIAL STATEMENTS "PREVIDENZA EQUILIBRATA"

General information For information of a general nature, reference should be made to the notes to the "Previdenza Equilibrata" sector.

Variations in units issued - "Previdenza Equilibrata" The following table sets out the number and value of existing units at year end and units issued or cancelled during the year.

Number Value

Existing units at 1 January 2005 34,151.358 325,948 Units issued 5,537.259 55,724 Units cancelled * 13,279.381 132,848 Existing units at 31 December 2005 26,409.236 271,733 * including those part of units relating to the Euro 2 monthly charges for each member

Notes to the balance sheet - " Previdenza Garantita" Assets

10 - Investments

- Managers





SISF European Equity Yield Cl.A 56,884 20.93% SISF Euro Active Value Cl.A 43,627 16.06% Btp 01.05.2008 5% 122,359 45.03% Btp 01.02.2015 4,25% 23,401 8.61%


None.


None.






247

None.


None.


During the year, the fund acquired and sold government securities for Euro 23,123 and Euro 56,701, respectively, and sold OEICs for Euro 50,000.


Commissions arising from trading in securities totalled Euro 23 equal to 0.01% of traded volumes.


They relate to accrued coupons on the bonds in portfolio.

- Other financial assets

These are commissions on OEICs to be repaid to the fund.

Liabilities







40 - Tax payables

They relate to the substitute tax payable for the year.

248

Notes to the profit and loss account - “Previdenza Equilibrata"


Contributions

Contributions from Contributions from Contributions from T O T A L* employers employees employees' leaving entitlement 7,171 35,816 12,737 55,724

* the amount is stated net of operating costs incurred for each transaction in the profit and loss account


Transfers Transfers to other Surrenders T O T A L to other sectors pension schemes - -12,273 -119,709 -131,982


Dividends and interest Profits and losses on financial transactions Listed loan securities 8,095 -2,439 Bank accounts 342 - OEIC units - 22,060 OEIC commissions to be repaid 1,654 - Total 10,091 19,621




249


250

"PREVIDENZA CAPITALIZZATA" SECTOR

BALANCE SHEET – ACCUMULATION PERIOD(in euros)

10 Investments 1,413,874 1,315,896

a) Bank accounts 82,978 87,818c) Securities issued by governments or international

organisations 240,709 227,635

h) OEIC units 1,083,782 995,352

l) Prepayments and accrued income 2,524 1,867

n) Other financial assets 3,881 3,224

30 Tax credits 0 21,611

TOTAL ASSETS 1,413,874 1,337,507

10 Liabilities relating to pension activities 8,263 9,491

a) Payables relating to pension activities 8,263 9,491

30 Liabilities relating to financing activities 1,956 1,767

d) Other liabilities relating to financing activities 1,956 1,767



100 Net assets allocated to benefits 1,381,259 1,306,983


2005 2004


10 Balance of pension activities -106,926 191,917

a) Contributions 248,603 238,627

c) Transfers and surrenders -355,529 -46,710

20 Result of financing activities 226,435 194,489

a) Dividends and interest 27,464 31,164

b) Profits and losses on financial transactions 198,971 163,325

30 Operating costs 22,837 19,345

a) Management company 22,837 19,345

40 Change in net assets allocated to

benefits before substitute tax (10)+(20)+(30) 96,672 367,061

50 Substitute tax -22,396 -19,266

Change in net assets allocated tobenefits (40)+(50) 74,276 347,795

2005 2004

251


252

NOTES TO THE FINANCIAL STATEMENTS "PREVIDENZA CAPITALIZZATA"

General information

For information of a general nature, reference should be made to the notes to the "Previdenza Capitalizzata" sector.

Variations in units issued - "Previdenza Capitalizzata"

The following table sets out the number and value of existing units at year end and units issued or cancelled during the year.

Number Value

Existing units at 1 January 2005 163,632.446 1,306,983 Units issued 29,509.314 251,645 Units cancelled * 42,126.008 358,571 Existing units at 31 December 2005 151,015.752 1,381,259 * including those part of units relating to the Euro 2 monthly charges for each member

Notes to the balance sheet - " Previdenza Capitalizzata" Assets

10 - Investments

- Managers





SISF European Equity Yield Cl.A 512,471 37.10% SISF Euro Active Value Cl.A 571,311 41.36% Btp 01.05.2008 5,00% 185,107 13.40% Btp 01.02.2013 4,75% 9,863 0.71% Btp 01.02.2015 4,25% 45,739 3.31%


None.


None.




253



None.


None.


During the year, the fund acquired government securities and OEICs for Euro 55,000 and Euro 45,051, respectively and sold government securities and OEICs for Euro 169,000 and Euro 28,925, respectively.


Commissions arising from trading in securities totalled Euro 44.


They relate to accrued coupons on the bond in portfolio and accrued interest income on bank current accounts.

- Other financial assets

These are commissions on OEICs to be repaid to the fund.

Liabilities







40 - Tax payables

They relate to the substitute tax payable for the year.

254

Notes to the profit and loss account - "Previdenza Capitalizzata"


Contributions

Contributions from Contributions from Contributions from T O T A L* employers employees employees leaving entitlement 53,192 128,326 70,127 251,645

* the amount is stated net of operating costs incurred for each transaction in the profit and loss account


Transfers Transfers to other Surrenders T O T A L to other sectors pension schemes -22,930 -644 -331,955 -355,529


Dividends and interest Profits and losses on financial transactions Listed loan securities 11,418 -3,278 Bank accounts 841 - OEIC units - 202,249 OEIC commissions to be repaid 15,205 - Total 27,464 198,971




255


256


260

Report of the Board of Statutory Auditors

261

VITTORIA ASSICURAZIONI S.p.A.

Report of the board of statutory auditors pursuant to article 153 of Legislative decree no. 58/98 to the shareholders in their meetings called on 28 and 29 April 2006 Dear shareholders, During the year, we performed our duties as required by law, the Consob and ISVAP communications and in accordance with the ethical guidelines of the board of statutory auditors recommended by the Italian accounting profession. In particular, in accordance with the provisions governing the duties of the board of statutory auditors set out in Legislative decree no. 58/98:

• we attended the board of directors' meetings and obtained at least quarterly updates on the activities and the most significant financial transactions carried out by the company and its subsidiaries. We also verified that the resolutions of the board were in compliance with the law and the company's business object and that they were not in conflict of interest or in conflict with the resolutions of the shareholders' meetings;

• to the extent of our responsibilities, we verified that the directors applied correct governance criteria in performing their duties, in line with our duties and through direct observations, information gathered from administrative staff and discussions with the audit company in order to exchange significant data and information;

• we monitored the adequacy of the internal control and administrative and accounting systems and the reliability of the latter with respect to the correct representation of operating activities by gathering data from the relevant persons in charge and through regular meeting with the external auditors, during which they informed us of the findings of their quarterly checks that the company's records had been kept properly;

• during our regular reviews, we found the assets to be correctly allocated to cover technical reserves in accordance with ISVAP circular no. 176/92;

• we performed all the checks required by ISVAP with regard to insurance books and registers, classification and valuation of the securities portfolio, anti-money laundering regulations and use of derivative financial instruments.

With respect to the separate and consolidated financial statements, the audit company issued unqualified audit reports, without emphasis paragraphs, on 7 April 2006.

262

Furthermore, in compliance with CONSOB recommendations, we note the following:

• we believe that the information obtained from the board of directors, in particular that relating to the subsidiaries and to intercompany and related party transactions, is adequate;

• no atypical or unusual transactions were carried out with group companies, related or third parties, as confirmed by the directors in their report;

• ordinary transactions with group companies and related parties were carried out on an arm's length basis and met the company's interests. They were performed in compliance with the specific procedure approved by the Board of directors; they are described in the directors' report, with details of their amount and impact on the net profit for the year;

• there are no significant post-balance sheet events; • during the year, the audit company BDO Sala Scelsi Farina S.p.A.,

was requested to perform the following additional engagements on:

- a study on the monitoring of claims

accrued to reserves Euro 45,000 excl. VAT- audit of the IFRS reconciliation

schedules at 31 December 2004 and 30 June 2005 Euro 65,000 excl. VAT

- assistance in preparing the 2005 IFRS annual consolidated financial statements and consolidated half year report

Euro 50,000 excl. VAT

- signing of the 2005 Unified Tax Return

Euro 3,000 excl. VAT

We believe that the above services do not jeopardise the independence of the audit company.

• the internal control system is effective and adequate, as confirmed during the regular meetings of the internal control committee at which the statutory auditors were always present, as well as through regular meetings with the internal control manager;

• during 2005, the board of directors and the board of statutory auditors met five times each;

• the instructions given by the parent company to its subsidiaries in compliance with paragraph 2 of article 114 of Legislative decree no. 58/98 are adequate;

• the company has been applying the Code of Conduct issued (in 2002) by the Corporate Governance Committee for listed companies for several years and implemented it as documented in the related report to the shareholders.

Finally, we did not receive any complaints or claims pursuant to article 2408 of the Italian Civil Code during our above-described supervisory activities, nor

263

have issues emerged which would need to be reported to the relevant supervisory authorities or disclosed in this report. We invite you to approve the financial statements at 31 December 2005 which show a net profit for the year of Euro 20,330,016. We agree with the proposal of the board of directors to allocate Euro 34,963 to the legal reserve, Euro 15,795,053 to the available reserve and to distribute a dividend of Euro 4,500,000. Milan, 10 April 2006

BOARD OF STATUTORY AUDITORS

Angelo Casò

Giovanni Maritano

Livio Strazzera

264

Report of the Independent Auditors

265

SUMMARISED RESOLUTIONS OF THE SHAREHOLDERS’ MEETING

On 28 April 2006, the shareholders of Vittoria Assicurazioni S.p.A. regulary met for the ordinary meeting. The shareholders: - after reading the report of the board of statutory auditors, approved the directors’ report, the 2005 financial statements and the distribution of a dividend of Euro 0.15 to each of the 30,000,000 outstanding shares; - deliberated the audit engagement to BDO Sala Scelsi Farina S.p.A. for the audit of the separate and consolidated financial statements as at and for the years 2006, 2007, 2008, 2009, 2010 and 2011 and for the review of the half year reports at 30 June of the same years and the other activities required by article 155 of Legislative decree no. 58 of 24 February 1998.

269

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270

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