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CFO Final remarks

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  • 1. Generali Investor Day 2010Final RemarksRaffaele AgrustiGeneral Manager &Chief Financial Officer Venice, November 26, 2010
  • 2. Disclaimer 2 Certain of the statements contained herein are statements of future expectations and other forward-looking statements. These expectations are based on managements current views and assumptions and involve known and unknown risks and uncertainties. The user of such information should recognise that actual results, performance or events may differ materially from such expectations because they relate to future events and circumstances which are beyond our control including, among other things, general economic and sector conditions. Neither Assicurazioni Generali S.p.A. nor any of its affiliates, directors, officers employees or agents owe any duty of care towards any user of the information provided herein nor any obligation to update any forward-looking information contained in this document. The manager in charge of preparing the company’s financial reports, Raffaele Agrusti, declares, pursuant to paragraph 2 of article 154-bis of the Consolidated Law on Financial Intermediation, that the accounting information contained in this presentation corresponds to document results, books and accounts records.Assicurazioni Generali Group – Investor Day 2010 – Investment Management of Insurance Assets
  • 3. V. FINAL REMARKSOur Solvency II strategy 3 Main issues Generali response Capital Capital position under SII management (AA calibrated internal capital model) stronger than under SI Investment Life: Competitive advantage in management asset allocation due to our Life VIF P&C: Optimisation of risk / return profile Product Focus on Traditional & Unit Linked design products with lower capital absorptionAssicurazioni Generali Group – Investor Day 2010 – Investment Management of Insurance Assets
  • 4. V. FINAL REMARKSProducts in Solvency II world 4Solvency I Solvency II Risk based, volatile according to Volume based market environment Solvency position volatility driven by the existing business and future new products Inforce management Management of asset mix and of the duration gap also via macro hedge New business management Traditional products Still attractive both for policyholder and shareholder thanks to book accounting. In case of efficient volatility absorbers (i.e Policyholder Funds) not available, products will have at maturity guarantee and/or guarantee reduction Single premiums Allow good ALM procedure Annual premiums Have to evolve towards products where the minimum guarantee of subsequent premiums is linked to a swap based benchmark and fixed year by year Mark to market products In addition on Unit Linked Business we want to offer evolution of CPPI, efficient in SII, and simple Variable Annuities, hedging always the most relevant market risksAssicurazioni Generali Group – Investor Day 2010 – Investment Management of Insurance Assets
  • 5. V. FINAL REMARKSGenerali on new life production 5 We evaluate new life products across 5 dimensions: Margins Italy France Germany on APE 28.5% 10.3% 17.7% Total CEE RoE RoW 21.7% 39.1% 23.3% 28.2% Profitability Riskiness / Capital Absorption Capital remuneration Capital Italy France Germany Italy France Germany Strain(1) / IRR NBP(2) 2.3% 2.3% 2.2% 13.7% 10.5% 18.7% Total CEE RoE RoW Total CEE RoE RoW 2.5% 1.9% 2.1% 8.4% 13.1% 15.1% 11.9% 15.0% 1st Year P&L impact Payback period P&L Italy France Germany Payback Italy France Germany Strain(3) / Period NBP(2) 5.8% 1.6% 1.1% (years) 7 8 6 Total CEE RoE RoW Total CEE RoE RoW 3.7% 23.3% 4.5% 5.7% 7 6 7 7(1) Required capital due to new business production(2) New business premiums(3) P&L cost of investment in life new businessAssicurazioni Generali Group – Investor Day 2010 – Investment Management of Insurance Assets
  • 6. V. FINAL REMARKSFinal remarks 6 Prudent asset and capital management made us resilient through the crisis A strong capital position plus continued optimisation to enhance return on risk capital Tight risk control allows Generali to face a persistently challenging environment Good returns and benefits from diversification through real estate Product strategy preserves profitability of traditional products under SIIAssicurazioni Generali Group – Investor Day 2010 – Investment Management of Insurance Assets
  • 7. Generali Investor Day 2010Final RemarksRaffaele AgrustiGeneral Manager &Chief Financial Officer Venice, November 26, 2010