Generali Group 2012 Results

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Generali Group 2012 Results

  1. 1. Generali Group2012 Results Milan, March xxx, 2010 March 14, 2013
  2. 2. Agenda 2 I. Business overview Page 3 Mario Greco - Group CEO II. Group Financials Page 9 Alberto Minali - Group CFO III. Backup Page 34Assicurazioni Generali Group – FY 2012 results
  3. 3. Agenda 3 I. Business overview Mario Greco - Group CEO Following the closing of the sale of related stake, Migdal qualified as a discontinued operations. Therefore, in this presentation, Migdal is excluded from all FY12 figures, except net income. Except where specified, prior year figures have not been adjusted. Like for like comparisons are adjusted for the disposal of Migdal. See definition in the related section in the back-up.Assicurazioni Generali Group – FY 2012 results
  4. 4. I. BUSINESS OVERVIEWGenerali: Our vision for 2015 4 Reshaped approach to maximise value creation 1 Focused on core insurance business, with greater contribution from P&C 2 Stronger capital position and disciplined balance sheet management 3 Superior customer acquisition and retention, with focus on retail and affluent space 4 Consistent technical excellence and tight control of costs The mission is to deliver top quartile shareholder returns and profitabilityAssicurazioni Generali Group – FY 2012 results
  5. 5. I. BUSINESS OVERVIEWUpdate on strategy 5 Restructuring underway  Group Management Committee in place  Italian re-organisation commenced  Cost saving initiatives underway Asset review completed  Detailed review of all asset positions to ensure proper valuation  Euro 1.7 bn impact on net Income in 2012 (Euro 1.3 bn in Q4)  Limited impact on capital adequacy (-2.7%pts. impact on Solvency I; negligible from economic and rating capital perspective)  Impairment criteria aligned with European insurance peers New remuneration structure in place  Aligns incentives for senior management with new strategy and the delivery of enhanced shareholder value Positive start to mix shift to P&C  Strong performance provides solid base for further growth in operating profitabilityAssicurazioni Generali Group – FY 2012 results
  6. 6. I. BUSINESS OVERVIEWNew incentive plans align strategic objectives to reward 6 The mission is to deliver top quartile shareholder returns and profitability Short term incentive Long term incentive  Operating and net result drive  Top 160 managers eligible overall funding  Based on operating RoE, and  Individual awards based on Total Shareholder Return personal targets relative to peer group  Paid in cash  Paid in shares after 3 years; A portion cannot be sold for a further 1-2 yearsAssicurazioni Generali Group – FY 2012 results
  7. 7. I. BUSINESS OVERVIEWFY 2012 results at a glance 7 Operating result (Euro m) Operating RoE (%) +10.5%(1) +1.1%pts Target 2015: Euro >5 bn Target 2015: >13% 4,219 3,928 11.9 10.8 FY11 FY12 FY11 FY12 (1) On like for like basis Solvency ratios (%) Cash flow (Euro bn) Solvency I Target 2015: >160% +17.0% 159 159 150 117 Target 2015: Euro >2 bn Solvency I 1.5 Economic solvency 1.3 FY11 FY12 FY11 FY12 FY11 FY12Assicurazioni Generali Group – FY 2012 results
  8. 8. I. BUSINESS OVERVIEWSummary 8 A positive base from which to reshape the business  Solid operating results but conservative approach to dividend  Maintained at Euro 0.20 to balance FY12 net income with underlying performance and confidence in the future  New Generali management installed at GPH as first step in full control  Planned disposals on track  Vigilance required as political uncertainty continues and economic growth remains muted but team focused on delivering the turnaroundAssicurazioni Generali Group – FY 2012 results
  9. 9. Agenda 9 II. Group Financials Alberto Minali - Group CFO Profit & loss review Life, P&C and financial segment profitability Balance sheet and capitalAssicurazioni Generali Group – FY 2012 results
  10. 10. II. GROUP FINANCIALSRevenue development by segment 10 Gross written premiums (Euro m) (Euro m) Like for FY11 FY12 like ∆ +3.2%(2) 69,613 Gross written 69,159 69,159 69,613 +3.2% premiums Life(1) 46,394 46,810 +3.1% FY11 FY12 P&C 22,765 22,803 +3.3% (1) Including investment contracts (Euro 3,667 m in FY12, 3,187 m in FY11) (2) On like for like basisAssicurazioni Generali Group – FY 2012 results
  11. 11. II. GROUP FINANCIALSOperating result by segment 11 FY12 total operating result (Euro m) Like for like  Life 2,658 operating result 2,542 +9.7% P&C 1,664 operating result +5.6% 1,561 Financial services 408 operating result +21.8% 342 Operating holding -313 expenses -6.8% -294 Consolidation -197 adjustments +11.4% -222 Total 4,219 +10.5% operating result 3,928 FY12 FY11Assicurazioni Generali Group – FY 2012 results
  12. 12. II. GROUP FINANCIALSFocus on non operating result 12 (Euro m) Non operating investment income (Euro m) Like for FY11 FY12 like  Non operating (941) (1,363) -43.2% investment income (941) (177) Non operating 64 (680) (673) +0.9% (1,363) holding expenses (309) FY11 FY12 Of which: interest costs (646) (668) -3.5% Net other Δ Euro m Non operating (392) (460) -17.3% Net Net Fair Value expenses realised impair- thr. P&L gains ments Of which: VOBA amortization (196) (184) +6.5% FY12 3 (1,396) 30 Total FY11 180 (1,087) (34) Non operating (2,013) (2,496) -23.4% Δ(1) -98.4% +28.8% n.m. result (1) On like for like basisAssicurazioni Generali Group – FY 2012 results
  13. 13. II. GROUP FINANCIALSResults of balance sheet review: focus on Q4 impairments 13(Euro m) Asset AFS Telco Real Estate Loans and Other assets TOTAL investments receivables KPIOperating profit (45) (1) (3) 0 (2) (52)Net Income (792) (148) (56) (118) (156) (1,271)Shareholders’Equity (47) (148) (55) (118) (136) (505)Solvency I -0.3%pts. -0.8%pts. -0.3%pts. -0.7%pts. -0.6%pts. -2.7%pts. Table shows impact of impairment charges taken in Q4 2012 No material impact on Economic Solvency Impairment triggers for AFS securities changed from 3 years or 50% fall in value on average (differing by sector), to 1 year or 30% decline in value (with no differentiation between sectors)  Better aligns Generali with European peers Assicurazioni Generali Group – FY 2012 results
  14. 14. II. GROUP FINANCIALS From operating result to net result 14(Euro m) Net income (Euro m) FY11 FY12 Total operating result 3,928 4,219 +10.5%(1)Non operating result (2,013) (2,496) -23.4%(1) -89.5%Consolidated result before 1,914 1,723 -4.1%(1)taxes and minoritiesIncome taxes (762) (1,326) -74.1% 856Result for discontinued 0 (30) n.m. 90operationsMinorities (297) (277) +6.5% FY11 FY12Net result 856 90 -89.5%(1) On like for like basis Assicurazioni Generali Group – FY 2012 results
  15. 15. II. GROUP FINANCIALS Operating Return on Equity: calculation 15 (Euro m) FY 2012 FY 2011 FY 2010 Consolidated Operating result 4,219 3,928 4,077 Interest expenses on financial debt (668) (646) (704) Operating taxes(1) (1,225) (1,132) (1,163) Minority interest (287) (278) (258) Net IFRS Total Operating result 2,040 1,872 1,951 Average shareholders equity (excluding OCI(2)) 17,131 17,252 16,699 Operating RoE 11.9% 10.8% 11.7% (1) Taxes based on mid-point of long term expected range of 33-36% (2) For the definitions refer to the related section in the backupAssicurazioni Generali Group – FY 2012 results
  16. 16. Agenda 16 II. Group Financials Profit & loss review Life, P&C and financial segment profitability Balance sheet and capitalAssicurazioni Generali Group – FY 2012 results
  17. 17. II. GROUP FINANCIALS Life business development 17Gross written premiums (Euro m) Net technical reserves(2) (Euro bn) +3.1%(1) +4.1% 316.6 313.8 301.5 6.6 5.7 46,810 58.3 47.9 53.6 46,394 (15.1) Δ 258.3 253.6 260.2 FY11 FY12 FY11 Change FY11R Traditional Unit FY12 in scope Linked Traditional Unit linkedNet inflows by country (Euro m) Country FY11 FY12  Italy: positive trend continued in 4Q12, although Italy 1,085 91 overall FY12 flows are neutral due to the decision of not renewing low margin corporate policies France (2,061) (2,236) during 1H12 Germany 3,433 4,551  France: negative trend linked to Group’s decision to reduce exposure to large premium CEE 475 390 contracts with low profitability RoE 1,473 (90)  Germany: strong growth triggered by lower RoW 1,441 835 maturities and positive single premium development TOTAL 5,846 3,542(1) On like for like basis(2) Including liabilities related to investment contracts Assicurazioni Generali Group – FY 2012 results
  18. 18. II. GROUP FINANCIALSLife profitability – Operating result 18 Resilient life operating profitability despite challenging financial environment Life Operating Result by driver(1) (Euro m) FY11 FY12 Like for like  Technical Margin 6,225 6,094 +2.0% Investment Result 1,715 1,744 +12.8% Expenses (5,398) (5,180) +1.7% Operating Result 2,542 2,658 +9.7% 2,542 218 2,658 29 (131) Life operating Δ Technical margin Δ Investment result Δ Expenses Life operating result FY11 result FY12 Life operating ratio on 0.80% 0.84% Investments(1) For the definitions refer to the related section in the backupAssicurazioni Generali Group – FY 2012 results
  19. 19. II. GROUP FINANCIALS Life investment strategy and yields(1) 19Life segment own investments(1) (%)  Value of investments positively impacted by Euro 249.3 bn Euro 277.0 bn declining yields and improved market conditions  Completed de-risking process related to the 2.4% 2.1% 6.8% 4.7% reduction of cross-border exposure to peripheral EU 3.5% 3.9% 4.5% Sovereign debt 5.3% Other 8.4%  Current profitability generally affected by 8.6% Cash & cash reinvestment program in a lower yields environment. equivalent 33.9% Real estate 34.1% Equity Current Fixed Equity Real return(1) income Estate Other fixed income Corporate 38.9% 43.0% bonds FY11 FY12 FY11 FY12 FY11 FY12 Government bonds Euro m 9,736 9,390 628 427 696 712 FY11 FY12 % 4.5 4.2 3.8 3.3 7.3 7.3(1) For the definitions refer to the related section in the backup. Comparative figures have been restated excluding assets and liabilities of Group’s Israeli companies. Assicurazioni Generali Group – FY 2012 results
  20. 20. II. GROUP FINANCIALS Life new business: value and profitability 20NBV at Euro 863 m as a result of:• APE essentially stable (-1.4%), with moderate slowdown of annual premiums (-5.1%) partially offset by the recovery of single premiums registered in Germany• Solid NBM (19.2%), thanks to further decrease of guarantees mitigating the impact of the interest rates drop throughout the year (Euro m) APE Margins on APE (NBM) NBV Historical Like for Historical Like for FY11 FY12 FY11 1H12 FY12 FY11 FY12  like   like Italy 1,715 1,637 -4.5% -4.5% 21.8% 23.8% 17.2% 374 281 -24.7% -24.7%France 939 944 +0.5% +0.5% 13.7% 12.5% 12.8% 128 120 -6.1% -6.1%Germany 908 917 +1.0% +1.0% 18.3% 20.7% 20.2% 166 186 +11.9% +11.9%CEE 147 187 +27.4% +23.6% 35.8% 35.0% 31.4% 52 59 +11.7% +8.3%RoE 657 622 -5.4% -5.5% 20.4% 24.9% 20.8% 134 129 -3.7% -3.8%RoW 421 201 -52.4% +0.2% 28.8% 38.2% 44.1% 121 88 -27.2% -9.4%Total 4,787 4,508 -5.8% -1.4% 20.4% 21.6% 19.2% 976 863 -11.5% -9.5% Assicurazioni Generali Group – FY 2012 results
  21. 21. II. GROUP FINANCIALSFocus on new business guarantees 21Further decrease of average guarantee (mainly in Italy and Germany), with a stable weight (despitethe drop of unit-linked production) of low capital intensive types of guarantees. Total APE by type of guarantee YE 2011 NIL At maturity 22% 2011 Eurozone Average Guarantee(1): 1.5% 26%  Yearly basis : 1.4% Matched Yearly basis =0 3% 17%  At maturity: 1.9% Yearly basis >0 33% YE 2012 NIL At maturity 22% 2012 Eurozone Average Guarantee(1): 1.3% 18%  Yearly basis : 1.1% Matched Yearly basis =0 2% 24%  At maturity: 1.9% Yearly basis >0 34%(1) Weighted on APEAssicurazioni Generali Group – FY 2012 results
  22. 22. II. GROUP FINANCIALS P&C gross written premiums 22  Premium development driven by Personal Non-Motor  Positive growth of Motor in Germany and Spain, signs of competitive pressure in Italy  Commercial under pressure in Italy and Spain, while CEE is overperformingGross written premiums (Euro m) Like for like (Euro m) FY11 FY12  +3.3%(1) Italy 7,501 7,352 -2.0% 22,765 22,803 France 4,056 3,676 +0.2% Germany 3,062 3,278 +7.0% CEE 2,261 2,445 +9.8% RoE 4,329 4,435 +2.1% FY11 FY12 RoW 1,555 1,617 +27.9% Total 22,765 22,803 +3.3%(1) On like for like basis Assicurazioni Generali Group – FY 2012 results
  23. 23. II. GROUP FINANCIALS P&C profitability – Operating result 23Positive P&C operating profitability thanks to strong technical resultP&C Operating Result by driver(1) Like for like (Euro m) FY11 FY12  Technical Result 669 857 +21.5% Investment Result 1,127 1,082 -2.4% Other (236) (275) -15.5% Operating Result 1,561 1,664 +5.6% 1,561 188 1,664 (45) (39) P&C operating Δ Technical result Δ Investment result Δ Other P&C Operating result FY11 result FY12 P&C operating ratio on Investments 4.32% 4.59%(1) For the definitions refer to the related section in the backup Assicurazioni Generali Group – FY 2012 results
  24. 24. II. GROUP FINANCIALSP&C profitability – Net combined ratio (1/2) 24Combined ratio (%) Combined ratio by country (%) -0.8%pts. FY11 FY12 ∆ 96.5 95.7 (0.1) (0.8) Italy 96.8% 95.2% -1.6%pts. 27.6 27.5 France 98.7% 98.9% +0.2%pts. Germany 94.4% 94.5% +0.1%pts. 68.2 CEE 89.5% 88.5% -1.0%pts. 69.0 RoE 96.4% 96.4% 0.0%pts. FY11  Expense  Loss FY12 ratio ratio RoW 104.2% 99.5% -4.6%pts. Loss ratio Expense ratio Total 96.5% 95.7% -0.8%pts.Assicurazioni Generali Group – FY 2012 results
  25. 25. II. GROUP FINANCIALSP&C profitability – Net combined ratio (2/2) 25Loss ratio (%) -0.8%pts  Current year Loss Ratio confirms good quality of pricing, 69.0 -1.6 +0.5 +0.2 68.2 underwriting and distribution in the main Countries Current NAT Prior  Nat Cat impact mainly due to FY11 year CAT years FY12 the Emilia earthquake, FY12 70.0 1.4 -3.3 68.2 mitigated by reinsurance FY11 71.6 0.9 -3.5 69.0  Confirmed stability inExpense ratio (%) administrative and acquisition costs -0.1%pts 27.6 27.5 6.0 0.0 -0.1 6.0 21.6 Δ%pts 21.5 Acq. costs Adm. costs FY11 Δ Admin Δ Acq. FY12Assicurazioni Generali Group – FY 2012 results
  26. 26. II. GROUP FINANCIALS P&C investment strategy and yields(1) 26 P&C segment own investments(1) (%) Euro 34.4 bn Euro 37.9 bn  Reduced weight of equity and real estate exposure  Preference for high quality and non financial 1.7% 1.6% 10.0% 8.0% corporate bonds 13.9% Other 15.8% 6.9% Cash & cash equivalent 9.1% 10.7% Real estate 8.6% Equity Current Fixed Equity Real 29.2% return(1) income Estate 26.8% Other fixed income Corporate bonds FY11 FY12 FY11 FY12 FY11 FY12 Government bonds 28.0% 29.7% Euro m 887 912 105 75 497 403 FY11 FY12 % 3.9 3.8 2.8 2.6 8.6 7.5(1) For the definitions refer to the related section in the backup. Comparative figures have been restated excluding assets and liabilities of Group’s Israeli companies. Assicurazioni Generali Group – FY 2012 results
  27. 27. II. GROUP FINANCIALSFinancial segment 27 Operating result (Euro m) Net fees and commissions (Euro m) +21.7%(1) +0.1%(2) 859 827 408 342 FY11 FY12 FY11 FY12(1) On like for like basis (2) On like for like basis Third party AUM(3) (Euro bn) Cost/income ratio (%) +14.4%(4) -4.2%pts 88.2 96.4 73.2 69.0 FY11 FY12 FY11 FY12(3) Including only third party AUM related to financial segment companies(4) On like for like basisAssicurazioni Generali Group – FY 2012 results
  28. 28. Agenda 28 II. Group Financials Profit & loss review Life, P&C and financial segment profitability Balance sheet and capitalAssicurazioni Generali Group – FY 2012 results
  29. 29. II. GROUP FINANCIALSTotal expected cash flow generation 292011 (Euro bn) 2012 (Euro bn) Life Free 1.0 Life Free 1.1 Cash Flow(1) Cash Flow(1) P&C and P&C and 1.1 0.9 Financial Financial Free Cash Free Cash Flow(2) Flow(2) Holding expenses(3) (0.7) Holding expenses(3) (0.7) Free Cash Flow 1.3 Free Cash Flow 1.5(1) Life Free cash flow = Expected profit based on EV calculations, net of change in required capital(2) P&C and Financial cash flow = Operating profit after taxes and minorities, net of change in required capital(3) Holding expenses = IFRS holding company result (including interest expense on debt) after tax and minoritiesAssicurazioni Generali Group – FY 2012 results
  30. 30. II. GROUP FINANCIALSIFRS Shareholders’ equity roll forward 30(Euro m) +28.0% 4,746 90 19,828 (26) (93) (311) (65) 15,486 Shareholders’ Δ in AFS FY 2012 Δ Currency Δ Cash Flow Dividend Other Shareholders’ Equity FY11 Reserve Net Result Translation Hedge Equity FY12 Reserve Reserve Change in AFS reserve (Euro m) 3,670 2,591 145 932 (2,156) AFS Reserve Impact Equity Impact Bond Other AFS Reserve FY11 Investments Investments FY12Assicurazioni Generali Group – FY 2012 results
  31. 31. II. GROUP FINANCIALSSolvency I according to Italian regulation 31(Euro bn) Required margin Available margin 117% Main drivers of change 150% Available margin  Consolidated result: + 0.4  Subordinated debt: + 1.2 26.9  Financial markets and other elements: + 5.0 20.8  Proposed dividends(1): - 0.5 17.8 17.9 Required Margin  Growth of technical provisions : + 0.5  Migdal disposal: - 0.4 FY11 FY12(1) Proposed dividend for Shareholders: Euro 0.3 bn; proposed dividend for Minorities: Euro 0.2 bnAssicurazioni Generali Group – FY 2012 results
  32. 32. II. GROUP FINANCIALSGroup Embedded Value roll-forward 32(Euro m) Including 24,066 + Euro 1.5 bn: spread narrowing and increase in stock market - Euro 2.6 bn: decrease in interest rates (VIF and P&C liab) 3,499 23,742 22,431 (1,335) (311) (543) Robust return on embedded value, mainly driven by Life NBV at Euro 863 m and a positive combined ratio at 95.7% EV Official FY11 Change in Normalised EV Investment and Cash Dividend EV FY12 Perimeter earnings Tax Variances Return on Embedded Value Group Embedded Value Group EV FY12 16.0% Normalised RoEV (1) 9.9% RoEV (1) 15.4€ Group EV per share (1) For the definitions refer to the related section in the backupAssicurazioni Generali Group – FY 2012 results
  33. 33. II. GROUP FINANCIALSEconomic Solvency 33 Economic Solvency Ratio ESR = 159%(1) FY11 ESR = 159%(2) FY12 31.9 29.0 19.9 18.0 Group Group AC AC Group Group RAC RAC (1) ESR FY11 = AC FY11 (net of dividend 2011 equal to 0.3bn) divided by Risk Capital FY11 (2) ESR FY12 = AC FY12 (net of proposed dividend 2012 equal to 0.3 bn) divided by Risk Capital FY12  Economic Solvency Ratio based on Group Internal Model calibrated on 1 year VaR at 99.5% confidence level  Risk Adjusted Capital movement is mainly affected by model enhancements, volumes increase and distressed credit rating profileAssicurazioni Generali Group – FY 2012 results
  34. 34. Agenda 34 IV. Backup P&L Balance sheet Life Capital DefinitionsAssicurazioni Generali Group – FY 2012 results
  35. 35. Agenda 35 IV. Backup P&L Balance sheet Life Capital DefinitionsAssicurazioni Generali Group – FY 2012 results
  36. 36. IV. BACK UPFY12 Total gross written premiums 36 (1)(Euro m) Total gross written premiums Gross life written premiums Gross P&C written premiums YoY YoY YoY Weight on Weight on Weight onCountry GWP % increase total GWP GWP % increase total GWP GWP % increase total GWP (2) (2) (2)Italy 20,115 -0.5% 28.9% 12,763 +0.4% 27.3% 7,352 -2.0% 32.2%France 13,141 +0.6% 18.9% 9,465 +0.8% 20.2% 3,676 +0.2% 16.1%Germany 17,587 +6.0% 25.3% 14,310 +5.7% 30.6% 3,278 +7.0% 14.4%CEE 4,136 +6.9% 5.9% 1,691 +2.9% 3.6% 2,445 +9.8% 10.7%RoE 10,262 +3.1% 14.7% 5,827 +3.8% 12.4% 4,435 +2.1% 19.4%Of which: Spain 2,559 +5.5% 3.7% 1,183 +12.5% 2.5% 1,376 +0.2% 6.0% Austria 2,519 -0.7% 3.6% 1,147 -4.0% 2.4% 1,373 +2.2% 6.0% Switzerland 1,846 +2.5% 2.7% 1,157 +2.6% 2.5% 689 +2.4% 3.0%RoW 4,371 +16.1% 6.3% 2,755 +9.9% 5.9% 1,617 +27.9% 7.1%Total 69,613 +3.2% 100.0% 46,810 +3.1% 100.0% 22,803 +3.3% 100.0%(1) Including investment contracts(2) On like for like basis with constant exchange ratesAssicurazioni Generali Group – FY 2012 results
  37. 37. IV. BACK UP FY12 Life premiums by country and business line(1) 37 Savings and pension Protection Unit/Index linked Total YoY % YoY % YoY % YoY % GDP increase (2) GDP increase (2) GDP increase (2) GDP increase (2) (Euro mln)Italy 11,624 +1.0% 222 +7.1% 515 -14.7% 12,360 +0.3%France 6,564 +6.5% 1,745 -1.0% 912 -27.6% 9,221 +0.4%Germany 6,909 +14.5% 4,103 +1.0% 3,298 -4.1% 14,309 +5.7%CEE 1,019 +3.3% 244 +11.4% 428 -2.0% 1,691 +2.9%RoE 2,338 +5.3% 824 +11.0% 2,639 +0.7% 5,801 +3.9%Of which: Spain 988 +16.2% 185 -1.1% 9 -32.6% 1,183 +12.5% Austria 627 -5.0% 248 +2.8% 252 -8.8% 1,127 -4.3% Switzerland 189 +9.7% 134 +14.2% 834 -0.5% 1,157 +2.6%RoW 1,192 +8.0% 631 +18.2% 53 +16.9% 1,876 +11.5%Total Life grossdirect premiums 29,645 +5.8% 7,768 +3.2% 7,844 -6.7% 45,258 +3.0%(1) Including investment contracts(2) On like for like basis with constant exchange rates Assicurazioni Generali Group – FY 2012 results
  38. 38. IV. BACK UP FY12 P&C premiums by country and business line 38 (1) Motor Personal Commercial Accident/Health Total YoY % YoY % YoY % YoY % YoY % GDP increase (2) GDP increase (2) GDP increase (2) GDP increase (2) GDP increase (2) (Euro mln)Italy 3,174 -2.7% 878 +2.0% 1,851 -3.4% 1,303 -0.8% 7,207 -2.0%France 1,077 -3.2% 1,472 +2.3% 779 +3.0% 97 +7.5% 3,425 +0.8%Germany 1,185 +8.4% 1,289 +6.4% 270 -4.4% 529 +12.0% 3,272 +7.0%CEE 918 -6.8% 345 +1.8% 618 +13.6% 519 +65.7% 2,400 +9.7%RoE 1,604 +2.7% 1,047 +5.0% 944 -3.3% 678 +3.7% 4,273 +2.0%Of which: Spain 385 +4.7% 417 +7.6% 372 -9.9% 173 +1.2% 1,347 +0.6% Austria 534 +1.5% 320 +2.9% 351 +1.9% 147 +2.6% 1,353 +2.1% Switzerland 331 +2.6% 188 -1.5% 3 +1.5% 163 +5.7% 686 +2.1%RoW 920 +24.8% 33 +89.5% 418 +23.6% 153 +32.9% 1,524 +26.1%Total Life grossdirect premiums 8,879 +1.4% 5,064 +4.1% 4,881 +1.4% 3,278 +10.8% 22,102 +3.3%(1) Including fleets(2) On like for like basis with constant exchange rates Assicurazioni Generali Group – FY 2012 results
  39. 39. IV. BACK UPFY12 technical ratios 39 Life - Expense ratio (%) P&C - Combined ratio (%) 96.5 95.7 Expense ratio 27.6 27,5 11.6 Loss 11.2 69.0 68.2 ratio FY11 FY12 FY11 FY12 Total - Expense ratio (%) 16.6 16.3 FY11 FY12Assicurazioni Generali Group – FY 2012 results
  40. 40. IV. BACK UPFY12 combined ratio reconciliation 40 (Euro m) FY11 FY12 A Net earned premiums (net of consolidation adjustments) 20,662 20,700 B Consolidated net claims 14,247 14,114 Consolidated acquisition costs 4,462 4,453 Consolidated administration costs 1,297 1,290 Non insurance activity related administration costs (1) 59 45 Insurance activity related consolidated administration costs 1,238 1,246 C Total acquisition and administration costs 5,700 5,699 B/A Loss ratio 69.0% 68.2% C/A Expense ratio 27.6% 27.5% (B+C)/A Combined ratio 96.5% 95.7% D Other technical items 46 31A-B-C-D Technical result 669 857 (1) Administration expenses related to service companies, real estates and other companies not belonging to P&C segmentAssicurazioni Generali Group – FY 2012 results
  41. 41. IV. BACK UP FY12 technical ratios by country 41(%) ITA FRA GER CEE RoE SPA AUT SWI RoW ConsolidatedP&C Loss ratio FY12 74.3% 70.9% 65.6% 50.5% 68.1% 66.3% 67.7% 69.5% 62.0% 68.2% FY11 74.7% 71.2% 65.1% 54.5% 68.3% 68.0% 68.2% 69.0% 65.4% 69.0%P&C Expense ratio FY12 20.9% 28.0% 28.9% 37.9% 28.3% 28.2% 27.1% 25.6% 37.6% 27.5% FY11 22.0% 27.5% 29.4% 35.0% 28.1% 26.8% 27.1% 26.5% 38.8% 27.6%P&C Combined ratio FY12 95.2% 98.9% 94.5% 88.5% 96.4% 94.5% 94.8% 95.1% 99.5% 95.7% FY11 96.8% 98.7% 94.4% 89.5% 96.4% 94.8% 95.3% 95.5% 104.2% 96.5%Life expense ratio by country FY12 9.6% 10.1% 11.4% 21.8% 11.9% 4.1% 14.2% 17.8% 16.0% 11.2% FY11 9.7% 9.5% 12.8% 19.8% 12.1% 4.4% 13.3% 18.6% 16.3% 11.6% Assicurazioni Generali Group – FY 2012 results
  42. 42. IV. BACK UP Focus on operating result 42 Operating result by country(1) (Euro m) Operating result breakdown(1) (Euro m) Like for FY11 FY12 like ∆ 1,749 Italy 1,510 1,749 +15.8% 224 France 545 680 +24.9% 466 Germany 685 630 -8.1% 899 680 630 115 CEE 503 514 +2.2% 514 216 46 354 1060 26 257 257 RoE 878 899 +2.4% 304 464 430 67 327 RoW 322 257 +20.4% 184 193 -3 Italy France Germany CEE RoE RoW Operating result(1) 4,444 4,730 +9.1% Op. holding expenses (294) (313) +6.8% Consolidation Adj. (222) (197) -11.4% Life P&C Financial Total operating 3,928 4,219 +10.5% result(1) Operating result = operating result of life, P&C and financial segments, before holding expenses and consolidation adjustments Assicurazioni Generali Group – FY 2012 results
  43. 43. IV. BACK UPLife operating result 43Operating result (Euro m) Operating result by country (Euro m) FY11 FY12 Like for like  +9.7%(1) Italy 969 1,060 +9.3% France 295 464 +57.4% Germany 378 327 -13.6% 2,542 2,658 CEE 195 184 -5.6% RoE 444 430 -3.2% Of which: Spain 114 127 +11.3% Austria 61 61 +0.9% Switzerland 116 116 -0.2% RoW 259 193 +36.3% FY11 FY12 Total 2,542 2,658 +9,7% (1) On like for like basisAssicurazioni Generali Group – FY 2012 results
  44. 44. IV. BACK UPLife net inflows by country 44 Country FY11 FY12 Like for like  Italy 1,085 91 -91.6% France -2,061 -2,236 -15.2% Germany 3,433 4,551 +32.6% CEE 475 390 -16.4% RoE 1,473 -90 -107.1% Spain -252 -1,569 -521.6% Austria 171 141 -17.4% Switzerland 549 655 +16.6% RoW 1,441 835 +20.1% Total 5,846 3,542 -32.5%Assicurazioni Generali Group – FY 2012 results
  45. 45. IV. BACK UPP&C operating result 45Operating result (Euro m) Operating result by country (Euro m) FY11 FY12 Like for like  +5.6%(1) Italy 402 466 +15.9% 1,664 France 250 216 -13.4% 1,561 Germany 259 257 -0.8% CEE 286 304 +6.3% RoE 335 354 +5.6% Of which: Spain 139 144 +3.7% Austria 107 110 +2.8% Switzerland 51 56 +8.5% RoW 29 67 +51.7% FY11 FY12 Total 1,561 1,664 +5.6% (1) On like for like basisAssicurazioni Generali Group – FY 2012 results
  46. 46. IV. BACK UP Other operating and non operating expenses by segment 46 (Euro m) Life Non Life Financial FY11 FY12 FY11 FY12 FY11 FY12 Total net operating expenses (47) 13 (266) (288) (40) (98) Restructuring costs (33) (19) (39) (48) (13) (7) Other net non operating expenses(1) (132) (135) (123) (322) (52) 71 Total net non operating expenses (165) (154) (162) (370) (65) 65(1) Other non operating expenses include mainly amortization of VOBA Assicurazioni Generali Group – FY 2012 results
  47. 47. IV. BACK UP Focus on impairments(1) 47 (Euro m) Life P&C Financial Total Net impairments FY11 FY12 FY11 FY12 FY11 FY12 FY11 FY12 Equity instruments 637 1,782 178 426 1 3 816 2,212 Fixed income 2,115 222 242 47 3 56 2,359 326 Real estate 16 164 8 53 0 0 25 217 Other investments(2) 637 408 225 306 1 22 864 736 Total net impairments 3,405 2,577 653 832 6 82 4,046 3,491 Of which Operating net 2,967 1,986 0 0 6 22 2,975 2,008 impairments Non operating net 438 591 653 832 0 59 1,089 1,483 impairments(1) Net of reverse impairments(2) Including subsidiaries and associated companies
  48. 48. IV. BACK UP Focus on realised gains(1) 48 (Euro m) Life P&C Financial Total FY11 FY12 FY11 FY12 FY11 FY12 FY11 FY12 Net realized gains on Equities 119 68 (15) (17) 1 1 91 52 Realised gains 1,159 555 169 97 2 2 1,316 653 Realised losses (1,040) (487) (184) (114) (1) 0 (1,225) (601) Net realized gains on Fixed Income 1,419 561 18 34 3 6 1,440 601 Realised gains 2,384 2,269 134 191 5 26 2,523 2,486 Realised losses (965) (1,709) (116) (157) (2) (20) (1,083) (1,886) Net realized gains on Real Estate 178 156 151 144 - - 329 300 Realised gains 191 170 161 150 - - 351 321 Realised losses (13) (14) (10) (6) - - (23) (20) Net realized gains on Other(2) 160 19 90 9 79 (2) 329 26 Realised gains 160 19 121 16 82 1 363 36 Realised losses - - (31) (7) (3) (4) (34) (10) Total net realized gains 1,876 803 244 170 84 5 2,189 978 Operating net realized gains 2,019 967 - - 4 7 2,009 975 Non operating net realized gains (143) (164) 244 170 79 (2) 180 3(1) Excluding financial instruments at fair value through profit and loss(2) Including subsidiaries and associated companies
  49. 49. IV. BACK UP Focus on non operating items: interest expenses on financial debt 49Interest expenses on financial debt (Euro m) Total financial debt (Euro m) 12,218 13,234 646 668 9.5% 7.1% 54.1% 59.2% 36.5% 33.7% FY11 FY12 FY11 FY12 Senior Sub/Hybrid OtherAverage cost & maturity of financial debt (%) Adjusted Financial Leverage (%) & FCC FY11 FY12 FY11 FY12 Average cost (%) 5.37% 5.86% Adjusted Financial Leverage(1) 31.2% 29.4% Average maturity (years) 5.88 6.01 Fixed Charge Coverage 3.8x 3.6x(1) Calculated as per Moody’s methodology Assicurazioni Generali Group – FY 2012 results
  50. 50. IV. BACK UPReclassified P&L account 50 Total (Euro m) FY11 FY12 Total Operating result 3,928 4,219 Net earned premiums 62,739 62,838 Net insurance benefits and claims (55,036) (63,218) Acquisition and administration costs (11,807) (11,563) Net fee and commission income and net income from financial service activities 933 764 Operating income from other financial instruments 10,665 9,975 Operating income from financial instruments at fair value through profit or loss (2,905) 6,141 of which net income from fin. assets and liabilities where the risk is borne by the policyholders (3,159) 4,563 Operating holding expenses (294) (313) Net other operating expenses (367) (404) Non-operating result (2,013) (2,496) Non-operating income from other financial instruments (907) (1,393) Non-operating income from financial instruments at fair value through profit or loss (34) 30 Non-operating holding expenses (680) (673) Interest expenses on financial debt (646) (668) Other non-operating holding expenses (34) (5) Net other non-operating expenses (392) (460) Consolidated result before taxes and minorities 1,914 1,723 Income taxes (762) (1,326) Result from discontinued operations - (30) Consolidated result of the period 1,153 367 Result of the period attributable to minority interests (297) (277) Result of the period 856 90Assicurazioni Generali Group – FY 2012 results
  51. 51. IV. BACK UP Reclassified P&L account by segment - FY11 51 Unallocated holding Consolidation (Euro m) Life Non life Financial(1) expenses adjustments Total Total Operating result 2,542 1,561 342 (294) (222) 3,928 Net earned premiums 42,076 20,662 - - - 62,739 Net insurance benefits and claims (40,770) (14,247) - - (19) (55,036) of which var. of provisions related to unit linked business 2,132 - - - - 2,132 Acquisition and administration costs (5,176) (5,715) (915) - - (11,807) Net fee and commission income and net income from financial service activities 178 - 859 - (103) 933 Operating income from other fin. Instruments 9,336 1,086 328 - (86) 10,665 Operating income from fin. Instruments at fair value through profit or loss (3,055) 41 109 - - (2,905) of which net income from fin.assets and liabilities where the risk is borne by the policyholders (3,159) - - - - (3,159) Operating holding expenses - - - (294) - (294) Net other operating expenses (47) (266) (40) - (14) (367) Non-operating result (744) (606) 16 (680) - (2,013) Non-operating income from other fin.instr. (579) (409) 81 - - (907) Non-operating income from fin. instr.at fair value through profit or loss - (34) - - - (34) Non-operating holding expenses - - - (680) - (680) Net other non-operating expenses (165) (162) (65) - - (392) Earnings before taxes 1,798 955 357 (974) (222) 1,914(1) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Report Assicurazioni Generali Group – FY 2012 results
  52. 52. IV. BACK UP Reclassified P&L account by segment - FY12 52 Unallocated holding Consolidation (Euro m) Life Non life Financial(1) expenses adjustments Total Total Operating result 2,658 1,664 408 (313) (197) 4,219 Net earned premiums 42,138 20,700 - - - 62,838 Net insurance benefits and claims (49,099) (14,114) - - (5) (63,218) of which var. of provisions related to unit linked business (4,150) - - - - (4,150) Acquisition and administration costs (4,985) (5,716) (862) - - (11,563) Net fee and commission income and net income from financial service activities 56 - 827 - (118) 764 Operating income from other fin. Instruments 8,600 1,031 387 - (44) 9,975 Operating income from fin. Instruments at fair value through profit or loss 5,937 50 154 - - 6,141 of which net income from fin.assets and liabilities where the risk is borne by the policyholders 4,563 - - - - 4,563 Operating holding expenses - - - (313) - (313) Net other operating expenses 13 (288) (98) - (30) (404) Non-operating result (908) (916) 3 (673) (3) (2,496) Non-operating income from other fin.instr. (754) (576) (61) - (3) (1,393) Non-operating income from fin. instr.at fair value through profit or loss - 30 - - - 30 Non-operating holding expenses - - - (673) - (673) Net other non-operating expenses (154) (370) 65 - (460) Earnings before taxes 1,750 747 411 (986) (200) 1,723(1) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Report Assicurazioni Generali Group – FY 2012 results
  53. 53. IV. BACK UPFocus on 4Q12 results 53 (Euro m) 4Q12/ 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 4Q11(2) Life premiums(1) 12,340 11,503 10,543 12,009 12,815 10,415 10,271 13,309 +10.6% P&C premiums 6,792 5,219 4,931 5,823 6,999 5,419 5,027 5,359 -0.6% Total premiums 19,131 16,722 15,474 17,832 19,814 15,834 15,298 18,668 +7.0% Life net inflows 2,819 1,999 1,678 (651) 760 (1,138) 1,521 2,399 +369.1% Combined ratio % 96.1% 96.9% 96.7% 96.4% 95.4% 98.8% 95.7%(3) 92.8% -3.7% Life operating result 881 782 315 564 819 832 545 462 -14.2% P&C operating result 393 406 405 357 411 344 404 505 +38.3% Financial operating 115 96 68 63 126 85 109 88 +42.4% result Operating holding expenses and cons. (133) (132) (96) (155) (126) (148) (109) (128) -18.0% adj. Total operating result 1,256 1,153 692 827 1,230 1,113 949 928 +14.4% Net result 616 190 20 31 567 274 291 (1,043) n.m.(1) Including investment contracts(2) On like for like basisAssicurazioni Generali Group – FY 2012 results
  54. 54. Agenda 54 IV. Backup P&L Balance sheet Life Capital DefinitionsAssicurazioni Generali Group – FY 2012 results
  55. 55. IV. BACK UP Consolidated balance sheet 55 (Euro bn) FY11 FY12 (Euro bn) FY11 FY12 Shareholders’ Equity Intangible assets 10.4 9.9 (Group share) 15.5 19.8 Minority interests 2.6 2.7 Investments 346.7 374.1 Shareholders’ Equity 18.1 22.6 Cash 25.6 21.6 Operating debt 46.9 50.7 Other credits 11.3 11.1 Financial debt 12.2 13.2 Tangible assets 4.9 5.0 Technical reserves 325.0 336.4 Payables and other provisions 9.0 9.5 Other assets (1) 24.2 20.0 Other liabilities 11.8 9.4 Total Liabilities and Total Assets 423.1 441.7 Shareholders’ Equity 423.1 441.7(1) Including reinsurance amounts of technical reserve, deferred tax assets, deferred acquisition costs and other assets Assicurazioni Generali Group – FY 2012 results
  56. 56. IV. BACK UPAssets under management 56 FY11 total FY12 total Euro 467 bn Euro 490 bn Third parties AUM 97.4 Unit Linked 53.8 Fixed income Other instruments 3.7% 81.2% Real Estate 4.4% 338.8 Equity 4.6% Cash & equival. 6.1% “Own Investments”(1) (1) For definitions refer to the related section in the backupAssicurazioni Generali Group – FY 2012 results
  57. 57. IV. BACK UPFY12 own investments at amortized cost and fair value(1) 57 Total Euro 339 bn 20.6 Fixed income instruments 91.3% Of which bonds 87.2% Equity 225.7 6.9% Fixed income instruments 74.5% Other Of which bonds 50.7% 1.8% Of which loans 23.8% Real estate 13.9% Cash & equivalents Other 92.5 9.8% Investments at amortized cost Investments at fair value Subs, ass. & JVs 1.8%(1) Excluding unit linked and third parties AUMAssicurazioni Generali Group – FY 2012 results
  58. 58. IV. BACK UP FY12 book value and market value of own investments(1) 58 (Euro m) Life P&C Financial Total(2) Asset classes BV MV BV MV BV MV BV MV Equity 12,487 12,487 2,601 2,601 564 564 15,652 15,652 Fixed income instruments 236,107 241,267 26,419 26,501 15,585 15,969 274,916 280,542 Corporate 93,954 96,815 11,077 11,090 2,479 2,485 107,228 110,108 Government 119,019 121,115 11,279 11,344 6,245 6,300 136,542 138,760 Other fixed income 23,133 23,336 4,063 4,066 6,861 7,184 31,145 31,674 Real estate 9,751 12,234 5,289 8,103 24 36 15,064 20,373(1) Excluding unit linked and third parties(2) Net of consolidation adjustments Assicurazioni Generali Group – FY 2012 results

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