Investor Day 2022
REVO 2022-2025 Business PlanREVO 2025: The future belongs to those who can see it!
In March 2022, less than a year after the launch date of SPAC, REVO announced its strategic objectives for the period 2022-2025.
The main areas for development planned for the next few years are:
A top management led by a strong entrepreneurial spirit
An advanced, one-of-a-kind, scalable and flexible infrastructure technology based on our proprietary OVERX platform
A data analytics system that is fully at the service of the business
Further development of the profitable business historically developed by Elba Assicurazioni
The setting-up of highly technical teams of underwriters with great experience in the development of new specialty lines
The launch and consolidation of parametric solutions
REVO completed the merger with Elba Assicurazioni and the consequent listing of the new company, REVO Insurance, on the regulated Euronext STAR Milan Segment by the end of 2022, as announced when the business plan was presented.
Listing of REVO SPAC
Acquisition of Elba Assicurazioni
Reverse merger of Revo Spac into Elba Assicurazioni
Creation and listing of REVO Insurance
Launch of new insurance products
Launch of parametric products
Completion of the product range on OVERX and launch of bundled products
Further growth in the parametric business, blockchain and ecosystems
Obtaining a leading position in the SME world and becoming the leading provider of parametric solutions
The plan assumptions
Gradual decline in 2022 GDP compared to estimates at the end of 2021
Non-inclusion of the possible positive effects resulting from the activation of the PNRR
Maintaining the profitability of Elba and further growth of the bond business
Loss ratio by product for each LoB
Potential dividend distribution starting from 2023
IT investments greater than 15 million euros
Aiming to expand to 200 HCs by 2025
The REVO project envisages further development of the lines of business historically developed by Elba Assicurazioni, with the aim of rapid growth in the other P&C line of business, for which the Company obtained the authorisation from IVASS on 29 March 2022.
In 2023, thanks to the investments completed and the completion of the product range runed through OVERX, further growth is expected in premiums and a higher operating result than in 2021.
REVO’s main financial targets for 2025 are to achieve an operating ROE above 18% and maintain high capital solidity, with a Solvency II ratio between 180% and 200%. The aim is to start with a dividend distribution policy as early as 2024, on 2023 net profit.
The main plan figures to 2025 are:
• gross premiums written of around €300 million (of which around €80 million in the Suretyship class)
• a portfolio loss ratio of around 45%
• an operating profit approximately three times that of Elba Assicurazioni in 2021
Full focus on achieving the 2025 targets
INCREASE OF PREMIUMS AND DIVERSIFICATON
FURTHER GROWTH IN THE MOST PROFITABLE BOND LOB
OPTIMIZATION AND IMPROVEMENT OF CONDITIONS ALREADY IN PROGRESS
MAINTAINING A HIGH OVERALL TECHNICAL PROFITABILITY
SIGNIFICANT INCREASE IN THE OPERATING RESULT
1. Overall loss ratio calculated on earned premiums net of reinsurance
2. Adjusted operating result net of amortization of the Value of Business Acquired (VoBA), cost of the Long-Term Incentive plan and any other extraordinary items
The key targets of the 2025 project are:
*On adjusted operating result
The plan is characterised by significant growth in premiums and operating profit.