THE FIAT GROUP IN

The companies controlled by Toro Targa Assicurazioni
include Phenix, a Brazilian company that posted a 48%
increase in premiums compared with 2000, and Fiat
Ubezpieczenia. In its first full year of operation, this Polish
insurer was able to penetrate 23% of Fiat Auto Poland’s
distribution network.
❚ Das continued to operate successfully in the highly lucrative
judicial insurance business.
❚ In France, the Continent Group operations in the casualty
segment and Guardian Vie operations grew at a rate of
6%, in contrast to the rest of the industry.
Important developments that occurred in 2001 include the
revamping of the automobile insurance product line with the
introduction of new Autosystem policies, the launch of two
new index-linked products and a new line of capitalization
policies with guaranteed principal (Toro Plusvalore) that can
be configured in ways that make them suitable for sale
through all of the Sector’s distribution networks.
RESULTS FOR THE YEAR
Consolidated premiums totaled 5,751 million euros in 2001,
or 27.8% more than in 2000. If the new Lloyd and Augusta
companies are excluded, the increase amounts to 15.3%.
Casualty insurance contributed 2,616 million euros (+28.4%)
and life insurance 3,135 million euros (+26.9%).
Net premiums earned amounted to 5,461 million euros, for
a gain of 25.2% over 2000.
Premiums by business unit
55%
29%
16%
Life insurance
Automobile insurance
Other casualty insurance
Toro has played a key role in the recent evolution of the competitive
scenario. It has forged partnerships and carried out acquisitions
that provided more strength and a better dimensional balance to
its operations. Toro will continue to pursue internal expansion by
focusing the efforts of its operations on strategic opportunities in
bankassurance and new technologies, and external expansion
by pursuing a targeted and selective growth on foreign markets.
The performance of the insurance operations benefited from
a marked improvement in the claims-to-premiums ratio. This
improvement was made possible by programs implemented
in recent years to weed out and rebalance the underwriting
portfolio and by a decline in the rate of claims in the Italian
market that started at the beginning of 2001.
The efficiency measures that are being implemented, which
include the establishment of a call center for the entire Sector
and the development of Sector-wide information systems and
product platforms, produced a further reduction in the ratio of
overhead to premiums, which decreased to 5.3% in 2001.
The positive results achieved by the insurance operations
were offset in part by the negative impact of unsettled
conditions in the financial markets, which produced a loss
of about 143 million euros when the Sector marked to market
its portfolio of equity securities.
Income before taxes came to 220 million euros in 2001 (163
million euros in 2000). Earnings after taxes rose to 152 million
euros, or a 79% increase over the previous year.
At December 31, 2001, investments in financial assets and
real estate totaled 17,000 million euros, or about 3,800 million
euros more than in the previous year. Fixed income securities
accounted for 68% of the investment portfolio and equity
securities for another 27%.
Investments exceeded insurance reserves by 1,300 million
euros at the end of 2001 (1,200 million euros in 2000).
Distribution Network
Rest Rest of
Italy of Europe the world Total
Agents 1,150 330 1,480
Dealers 815 98 344 1,257
Bank counters 1,771 1,771
Report on Operations – Toro Assicurazioni
67