Market Positioning as of FY-21 figures
Poste Italiane is a platform company, which through its unrivalled physical and digital presence, offers integrated services and customer-oriented solutions within the areas of mail and logistics, as well as financial, insurance and digital payments services.
With its 160-year history, approximately 13 thousand post offices, 121 thousand employees, total financial assets of 586 billion euros, and 35 million customers, with 20 million daily digital interactions the Group is a strategic pillar for the country in terms of size, reputation, reach, and customer loyalty, making a major contribution to Italy's economic, social, and productive landscape.
It is the market leader in mail, parcel and logistics business with 95% market share in mail business (r. #1).
In the insurance sector, Poste Italiane is the market leader with 14% market share in life insurance (r. #3) and 11% market share in the overall insurance market (r. #4).
In the cards and payments sector, with 29M cards issued and 25M active cards (26% market share) and 9M digital wallets and a market share of about 25% in e-commerce transactions (r. #1), Poste Italiane is the market leader in Italy.
Corporate Divisions
Poste Italiane is the leading postal service provider in Italy, appointed by the Ministero dello Sviluppo Economico to provide the Universal Postal Service - a public utility service aimed at guaranteeing to all citizens throughout the country access to postal services.
Through a proprietary multichannel logistics distribution platform, through its joint delivery model Poste Italiane complemented the traditional mail delivery business with parcels delivery in order to exploit the rapid increase in e-commerce, immediately positioning itself as the leader in this market.
MARKET CONTEXT & POSTE ITALIANE POSITIONING
The postal services market is going through a phase of radical change, primarily linked to the digital and logistics transformation, which has influenced the volume of letters and parcels. The secular decline in traditional mail, replaced with digital forms of communication is accompanied by a significant increase in parcels volume.
E-Commerce confirmed as the key driver of growth in the parcels segment, mainly for low-value items. Specifically, there is ample room for further growth in Italy (14 parcels per capita/year in Italy versus an average of 21 in Europe in 2021).
In 2021, Poste Italiane confirmed its predominant role in the Italian mail business with an overall market share of 95%.
| CAGR 2012-2021 |
CAGR 2019-2021 |
Δ 2012-2021 |
Δ 2019-2021 |
|
|---|---|---|---|---|
| 21% | 20% | Austrian Post | 439% | 45% |
| 22% | 44% | Bpost | 492% | 108% |
| 14% | 40% | CTT Correios | 222% | 95% |
| 7% | 13% | Deutsche Post | 76% | 28% |
| 11% | 23% | La Poste | 151% | 51% |
| 14% | 16% | Post NL | 220% | 36% |
| 19% | 30% | Poste Italiane | 370% | 68% |
| 10% | 22% | Postnord | 132% | 49% |
| 6% | 10% | Royal Mail | 65% | 21% |
| Avarage CAGR 2012-2021 |
Avarage CAGR 2019-2021 |
Avarage Δ 2012-2021 |
Avarage Δ 2019-2021 |
|
| 14% | 24% | 241% | 56% |
Below you can find comparisons with European postal operators on mail volumes operating data
| CAGR 2012-2021 |
CAGR 2019-2021 |
Δ 2012-2021 |
Δ 2019-2021 |
|
|---|---|---|---|---|
| (5%) | (7%) | Austrian Post | (34%) | (14%) |
| (7%) | (10%) | Bpost | (46%) | (19%) |
| (7%) | (11%) | CTT Correios | (50%) | (22%) |
| (4%) | (5%) | Deutsche Post | (32%) | (10%) |
| (7%) | (10%) | La Poste | (50%) | (20%) |
| (6%) | (8%) | Post NL | (40%) | (18%) |
| (7%) | (3%) | Poste Italiane | (47%) | (6%) |
| (8%) | (9%) | Postnord | (53%) | (17%) |
| (6%) | (9%) | Royal Mail | (43%) | (18%) |
| Avarage CAGR 2012-2021 |
Avarage CAGR 2019-2021 |
Avarage Δ 2012-2021 |
Avarage Δ 2019-2021 |
|
| (6%) | (6%) | (44%) | (12%) |
BancoPosta is one of Italy’s biggest financial service providers, constantly expanding its range of services.
By law, it does not engage in direct lending activity. Is main activities include the management of the banking book, consisting of public and private customer deposits and relative lending activities; promotion and management of the postal savings instruments issued by Cassa Depositi e Prestiti; promotion and distribution of financial products issued by third parties or other group divisions, such as units of open-ended mutual funds established by BancoPosta Fondi SGR, asset administration products, Poste Vita and Poste Assicura insurance policies, third-party financing products and credit cards.
MARKET CONTEXT & POSTE ITALIANE POSITIONING
In the Italian context, there was a sharp decrease in bank branches in 2021 (-1,834 units, -7.8% vs FY-20). As a result, Poste Italiane's market share, thanks to its territorial presence, rose to 37% (+2 p.p. vs FY-20). This is true across all types of municipalities, particularly in small municipalities with less than 10,000 inhabitants.
Looking at asset management, market growth is mainly supported by the performance of equity funds, which posted +32% vs FY-20. Other fund types also posted positive results, with the exception of hedge funds (-21% vs FY-20). Within the open-end fund segment, Poste Italiane's market share exceeded 1% in 2021.
In the assets under administration segment, Poste Italiane has a market share of 35% in 2021.
Poste Italiane operates in the insurance business through PosteVita, a leading life insurance company in Italy. PosteVita additionally offers investment and savings products, promoted through the Group’s distribution platform.
Through Poste Assicura, a subsidiary of Poste Vita, Poste Italiane offers several products in the casualty insurance space.
Recently Poste Italiane launched initiatives aimed at meeting the new needs expressed by customers in the areas of protection, welfare and healthcare by offering increasingly modular health and prevention products.
MARKET CONTEXT & POSTE ITALIANE POSITIONING
Poste Vita leads the Italian life insurance market by size and prestige. It is the number three insurance group in the overall market (life and casualty insurance) in Italy.
In Italy, total life premiums grew 8% to €123bn in 2021 with Class III (+37% YoY leading the growth in the sector.
In this context, life premiums for Poste Italiane grew +5% YoY, posting a market share of 14%.
Total direct Italian premiums in the Italian P&C insurance market grew 3% to €39bn in 2021. Within this segments, Poste Italiane ranks in the top 15 insurance companies in Italy with total premiums posting a growth of 33% in 2021.
Poste Italiane played a pioneering role in the electronic money market in Italy. Postepay was launched in 2003 and by the end of 2017 had 17.7 million users, becoming the prepaid card of choice for Italians today. Postepay Evolution, the personal prepaid and reloadable card with an IBAN now stands at 8.4 million cards now in use. Long at the forefront of the digital payments sector, the Postepay App unlocks access to numerous features, including real-time fund transfers and a new payment method for online purchases. In particular, thanks to Postepay Connect, the offer that combines the card Postepay Evolution and the PosteMobile SIM, all customers can therefore manage payment and telephone services quickly and intuitively thanks to the App.
Poste Italiane operates also in fixed line & mobile phone service businesses through PosteMobile division and it has recently entered in the energy market.
MARKET CONTEXT & POSTE ITALIANE POSITIONING
Poste Italiane goal is to consolidate leadership in the payment system market by steering the shift from traditional payment methods (such as postal payment slips) to next-generation digital options, in particular the development of PostePay.
The Italian digital payments market is historically less evolved than that of other European countries (in Italy the number of digital transactions per capita is well below the European average). With the pandemic crisis, new payment habits have been consolidated and this trend seems to be reversing. Total transacted value in 2021 exceeded pre-pandemic levels (+24% vs 2019). Debit cards are the most used (57% total transactions), while prepaid cards are the favorite in e-commerce payments.
In this context, Poste Italiane recorded +25% YoY growth in 2021 thanks to prepaid cards (+28% YoY) and from debit cards (+22% YoY).
Overall, at the end of 2021, Poste Italiane's market share in the Italian payments market is 19.6% (65% in the prepaid card market).
