- Italy is a developed country located in Southern Europe with a population of 61.4 million. Its main exports include engineering products, textiles, and machinery, while main imports are engineering products, chemicals, and transport equipment. - Germany, France, and the US are Italy's largest trading partners for both exports and imports. The official language is Italian and the capital and largest city is Rome. - The insurance market in Italy totals $45.5 billion, with motor insurance dominating the market. Foreign insurers have a strong presence in Italy, accounting for about a third of all non-life insurance companies.

1. Country Profile
ITALY
www.lloyds.com/ItalyMI
May 2014
chris.brown@lloyds.com

2. © Lloyd’s 2
MAIN EXPORT PARTNERS: Germany 13%, France 11%, US 7% (2013)
MAIN IMPORT PARTNERS: Germany 15%, France 8%, China 8% (2013)
MAIN EXPORTS: Engineering products, textiles and clothing,
production machinery
MAIN IMPORTS: Engineering products, chemicals, transport
equipment
FULL NAME / CAPITAL CITY: Italian Republic / Rome
LANGUAGE: Italian
Source: Disaster Statistics based on: Prevention Web (2014); Export Statistics based on CIA World Factbook; Doing Business Indicators based on World Bank & World Economic Forum
KEY FACTS
GDP (PPP): US$ 1,085bn (Global Rank #12)
POPULATION: 61.4m (Global Rank #24)
IMF CATEGORISATION: “Developed”
2012 Rank 2013 Rank Change in Rank
EASE OF DOING BUSINESS: 87 73 14
COMPETITIVENESS: 43 42 1
FREEDOM FROM CORRUPTION: 68 67 1
DISASTER YEAR ECONOMIC COST (US$ x 1000)
Earthquake 1980 20,000,000
Flood 1994 9,300,000
Flood 2000 8,000,000
Earthquake 1997 4,524,900
Extreme Temp. 2003 4,400,000

3. © Lloyd’s 3
Insurance: Yes on a Freedom of Service Basis (except motor third party liability, surety and life insurance on
an Establishment basis)
Reinsurance: Yes
Coverholders: Yes
LLOYD’S TRADING POSITION
Italy
www.lloyds.com/crystal
All data, sources & data limitations are available for download at www.lloyds.com/comparecountries * 2013 total non-life based on CAGR projection
Percentile Rank (1-100) 2012 Purchasing Power Parity (PPP) basis
in International $ bn
Purchasing Power Parity (PPP) basis
in International $
GOVERNANCE INDICATORS SIZE OF ECONOMY WEALTH PER CAPITA
Premiums in US$ m
TOTAL NON-LIFE DIRECT INSURANCE MARKET* NON-LIFE DIRECT INSURANCE MARKET
Premiums in US$ m; by OECD Class
LLOYD’S GROSS SIGNED PREMIUMS
Gross Signed Premiums in US$ m; by country of origin
KEY STATISTICS
ES FRIT
Spain FranceItaly
2012
82 88Government Effectiveness 66
Political Stability and Absence of
Violence/Terrorism
63 43 64
Control of Corruption 58 82 90
Regulatory Quality 75 78 83
Rule of Law 62
Voice and Accountability 74
83 90
80 90
1,729
1,805
2,109
0
500
1,000
1,500
2,000
2,500
3,000
2006 2013 2018f
IT ES FR
29,433
29,812
34,224
0
10,000
20,000
30,000
40,000
2006 2012 2018f
IT ES FR
50,701
45,519
47,886
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
2011 2012 2013
IT ES FR
617
590
650
0
100
200
300
400
500
600
700
800
2011 2012 2013
IT ES FR
25,956
7,183
6,312
3,847
662
1,559Motor
PA & Health
Property
Liability
MAT
Miscellaneous
Italy
2012
US$ 45.5bn

4. © Lloyd’s 4
Change of government in February 2014 does not affect political stability in the six-month outlook. Incoming prime minister Matteo Renzi will inherit a
weak coalition government in a handover of power that avoids an early election. A cabinet reshuffle will result in a smaller executive, albeit with larger
Democratic Party (Partito Democratico: PD) representation. The incoming administration will have the same junior coalition partners in the New Centre Right
(Nuovo Centrodestra: NCD) and Civic Choice (Scelta Civica: SC), as well as the same 10-seat majority in the Senate (upper house). An early test of
government legitimacy will come at the European Parliament elections in May.
Pro-employment labour market reforms likely in H2 2014. Proposals for a new Jobs Act creating a single employment contract system, with initially
reduced protection for younger workers, were tabled in January. The changes would lower some labour costs for businesses and introduce less restrictive
hiring and dismissal rules. In exchange, the proposals call for improved unemployment benefits to protect laid-off workers (including temporary workers). The
intended time frame for the new labour laws, including enactment of a labour code, is eight months. Most of the proposals are likely to be passed, although
the unions would block deep labour-market liberalisation.
December 2013's Constitutional Court ruling that aspects of Italy's electoral law are unconstitutional means it is highly unlikely there will be a new
election until the electoral system is revised. If parliament were dissolved without a new system having been adopted, the default position would be a
return to the previous mixed proportional representation system, rather than a continuation of current electoral law. This would produce short-lived
governments, hung parliaments, and political instability. The government does not have the political strength to broker a quick deal to rewrite the electoral law.
With the support of the PD and opposition Forza Italia (FI), the government could pass new electoral legislation in April. An election is still likely in late 2014 or
early 2015.
Incoming administration plans four-month emergency programme to revive the business environment. Renzi is embarking on a drive to deregulate
the labour market, simplify tax administration, change the structure of regional governments, and carry out institutional changes to overhaul Italy's inefficient
Senate. The new cabinet has promised progress within 100 days of entering office. However, the proposals are likely to face delays and will not lead to a
sudden improvement in productivity or employment conditions
GROSS DOMESTIC PRODUCT (GDP)
(nominal GDP levels in billion US$; Real GDP change)
For daily updates visit: > www.ihsglobalinsight.com
BUSINESS ENVIRONMENT INFORMATION
(provided by IHS Global Insight, April 2014)
TOP-10 SECTORS (BY VALUE ADDED)
(value added in billion US$ & 2014 Change in real %)
BUSINESS ENVIRONMENT
TOP SECTORS
2013
Value
Added
2014
Percentage
Change
1. Retail trade - total 39.2 2.1
2. Wholesale trade 30.3 4.0
3. Banking & related financial 27.2 4.8
4. Public Admin. & Defense 21.0 3.0
5. Insurance & pensions 13.8 4.5
6. Land transport 11.8 3.8
7. Business services 10.6 4.9
8. Real estate 10.5 2.3
9. Health and social services 10.2 3.5
10. Construction 10.1 2.6
Top-10 Total 184.7
1.7%
0.6%
-2.4%
-1.8%
0.4%
1.0%
1.2%
0.9% 0.9%
-3%
-3%
-2%
-2%
-1%
-1%
0%
1%
1%
2%
2%
0
500
1,000
1,500
2,000
2,500
2010 2011 2012 2013 2014 2015 2016 2017 2018

5. © Lloyd’s 5
2012 MAJOR DIRECT INSURERS
(Gross Written Premiums in EUR m)
2012 DIRECT GROSS PREMIUMS
(Gross Written Premiums)
Source: Regulator > www.ania.it Source: Regulator > www.ania.it
The size of the non-life Insurance market in 2012 was US$ 45.5bn: Despite being one of the largest insurance markets in Europe, the Italian market is underdeveloped
with the dominance of motor business, few large financial groups and agents. However, insurance premiums are growing faster than GDP, especially in smaller business
classes. Limits remain low, risk retention is a continuing feature and many lines of business suffer from low penetration.
International foreign insurers: Foreign company involvement in the market is strong and foreign ownership accounts for around a third of all non-life companies.
Modest Broker market: Brokers play a relatively modest role in the Italian non-life sector as the major distribution channel can be found in the agent network.
Foreign-owned reinsurance market: Following numerous acquisitions in recent years, the local reinsurance market is effectively foreign-owned, with no pure Italian
reinsurers. In 2010, the Reinsurance market grew by 11%.
Outlook: Regulatory and legislative developments are expected to pose challenges to the operations and structures of the life and non-life market in Italy. Insurers are likely to
raise motor insurance rates, which have been insufficient in returning and underwriting profit.
BUSINESS CULTURE GUIDE
> http://www.kwintessential.co.uk
(View Resources > Culture Guide)
QUICK LINKS / USEFUL SOURCES
Insurance Market Profiles
> www.iii.org/international/profiles
The Italian Insurance association
> www.ania.it
The Insurance Supervisory Institute
> www.ivass.it
Lloyd’s Agency Network
> www.lloyds.com/agency
Lloyd’s Claims Team
> www.lloyds.com/claims
INSURANCE ENVIRONMENT
7724
6970
4333
3988
2034
1627
1603
1333
810
684
GENERALI
FONDIARIA-SAI
ASSICURATIVO UNIPOL
ALLIANZ SE
REALE MUTUA
CATTOLICA ASSICURAZIONI
AXA
GROUP AMA
VITTORIA ASSICURAZIONI
SARA
25,956
7,183
6,312
3,847
662
1,559Motor
PA & Health
Property
Liability
MAT
Miscellaneous
Italy
2012
US$ 45.5bn

6. © Lloyd’s 6
Lloyd’s
Country
Representative
SOURCE: Market Intelligence based on *Gross Signed premiums; Xchanging (2014); unaudited figures based on country of origin and processing by calendar year; see Appendix for details
Mrs Nicoletta Andreotti*
Corso Garibaldi, 86
20121 Milan
Italy
TELEPHONE: +39 0 26378881
EMAIL: informazioni@lloyds.com
*New country manager to be employed late 2014
Gross Signed Premiums; Direct versus Reinsurance; in million US$
2009-2013 LLOYD’S TOTAL PREMIUMS 2013 LLOYD’S HIGH LEVEL CLASSES
Gross Signed Premiums; high level classes; in million US$
LLOYD’S BUSINESS
383 357 369 361
443
231
238 247
229
207
0
100
200
300
400
500
600
700
2009 2010 2011 2012 2013
Direct Reinsurance
53.7
22.9
2.5
248.6
17.4
172.6
47.3
57.7
26.9
0.0
0 50 100 150 200 250 300
Accident & Health
Aviation
Casualty Treaty
Casualty
Energy
Marine
Property (D&F)
Property Treaty
Overseas Motor
UK Motor
2013 GROSS SIGNED PREMIUMS*
Total US$ 650m
Reinsurance US$ 207m
Direct US$ 443m
*COUNTRY OF ORIGIN PREMIUMS
 Policyholders are based or
headquartered in this territory;
 Premiums may be written outside
this territory;
X Not necessarily where risks are located
X May differ to what is reported to
local regulator (dependent on local requirements).
A Type 3 office is defined as a Lloyd's office headed by a
Country Manager who in addition to meeting regulatory
requirements in that territory also proactively supports the
business development objectives of the managing agents
in that territory.
Type 3
Office

7. © Lloyd’s 7
2014 INDUSTRY EVENTS 2014 LLOYD’S EVENTS
 Lloyd’s ILLCA Meet the Market Event, October
 Managing Agent Reception (Milan), July
 Class of Business Event- Reinsurance,
September
 Lloyd’s/ANRA event on emerging risks,
November
MARKET INTELLIGENCE
Available Market Intelligence products for this territory include:
Country Profile
Market Presentation
Country Roundup
Class Review – Lite (work in progress)
LLOYD’S OBJECTIVES
 Increase the perception of economic value of Lloyd’s by major brokers and clients by application of our Market Matrix - matching market appetite and strategy with brokers
and client‘s needs. Increase underwriters perception of local brokers and clients needs; help moving underwriters ‘out of their box’ and closer to the Italian market realities.
 Establish new Country Manager.
 Review present portfolio and explore commercial and industrial business development opportunities: Closely work with top brokers with high unexploited potential to
understand positions, offer assistance to overcome obstacles and take advantage of the Lloyd’s offer; promote an increasingly efficient management of OMCs registration
and maintenance ; plan steps to exploit relationship further/improve efficiency; share positive experience with other Lloyd’s offices for possible replication.
 Strengthen and restore relationships with local insurers to improve Lloyd’s position in the market and promote collaboration on specialist insurance business as well as
reinsurance.
LLOYD’S KEY INITIATIVES 2014
EVENTS & MARKET INTELLIGENCE
www.lloyds.com/ItalyMI

8. © Lloyd’s 8
APPENDIX
MACRO-ECONOMIC & BUSINESS ENVIRONMENT DATA
Source: IMF (www.imf.org/external/data.htm), World Bank (http://data.worldbank.org/), IHS Global Insight.
Notes: GDP data on size and wealth of the economy is reported in Purchasing Power Parity (PPP) terms; this is the most accurate indicator of the true standard of living in
each country and therefore potential demand. To calculate this, GDP is converted from local currency to an international $ currency using PPP exchange rates rather than the
market exchange rate. The PPP local currency-to-international $ exchange rates are determined such that a standard basket of goods has the same price in international $
terms in each country. This adjusts for the differing costs of goods across countries, when converted at market exchange rates.
INSURANCE MARKET DATA
Source: Reported data derived by Lloyd’s Market Intelligence team; original source is regulatory bodies, associations, third party information providers.
Notes: Data is reported in US$. For more information, see www.lloyds.com/comparecountries.
Exchange Rates Note: Where required, data has been converted to US$ using annual average exchange rates as per www.oanda.com.
LLOYD’S PREMIUM DATA
Source: Reported data derived by Lloyd’s; original source is Xchanging (data therefore contains only premiums processed by Xchanging).
Notes: Data is reported is US$, on a calendar year basis and is signed gross premiums. This differs from the data published in the Lloyd’s Annual Report, which is also on a
calendar year basis, but is written gross premiums and sourced directly from Syndicates. Differences are therefore (1) timing inconsistencies between signed and written gross
premiums; (2) inconsistent use of exchange rates by Syndicates and Xchanging; & (3) incompleteness of Xchanging data set for certain classes of business (a substantial
amount of premium is not processed by Xchanging and missing from the REG 258 data set; this comprises, for example, UK Motor).
Exchange Rates Note: Data has been converted to US$ using monthly exchange rates provided by Xchanging.
Definitions:
Gross Signed Premiums: Original and additional inward premiums, plus any amount in respect of administration fees or policy expenses remitted with a premium but
before the deduction of outward reinsurance premiums.
Calendar Year: Relates to the calendar year in which the premium, additional or return, is processed by Xchanging. This is irrespective of the actual underwriting year of
account, which is determined by the inception date of each risk.
Country of Origin: Denotes the domicile of the insured party (i.e. the coverholder or policyholder). This is the country from which demand for the insurance / reinsurance
emanates, & is irrespective of the country to which the risk is classified for regulatory reporting purposes.
Example: A policy holder in the UK insuring a holiday home in France would be classified as a UK risk by “Country Of Origin”, but “French” for regulatory reporting
purposes. Similarly a risk incepting on 1st December 2007 would be classified at 2007 “Underwriting Year of Account” but may not be processed by Xchanging until 2008
and so be allocated to the 2008 “processing year”.
ACCESSING THE DATA: to access the raw data in this document, and equivalent data for other countries, see www.lloyds.com/comparecountries.
 DISCLAIMER: This document is intended for general information purposes only. Whilst all care has been taken to ensure the accuracy of the information, Lloyd's does not
accept any responsibility for any errors or omissions. Lloyd's does not accept any responsibility or liability for any loss to any person acting or refraining from action as a
result of, but not limited to, any statement, fact, figure, expression of opinion or belief contained in this document.