Generali Group 2010 Results

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Generali Group 2010 Results

  1. 1. Generali Group2010 Results Milan, March xxx, 2010 March 16, 2011 March 2006
  2. 2. Agenda 2 I. FY 2010 results overview Page 3 Giovanni Perissinotto - Group CEO II. Insurance operations Page 14 Sergio Balbinot - Managing Director III. Group financials Page 19 Raffaele Agrusti - CFO IV. Backup Page 45Assicurazioni Generali Group – FY 2010 results
  3. 3. Agenda 3 I. FY 2010 results overview Giovanni Perissinotto - Group CEOAssicurazioni Generali Group – FY 2010 results
  4. 4. I. FY 2010 RESULTS OVERVIEW2010: strong growth of results and dividend 4 Total operating result at Euro 4,077 m (+11.7%) Net result at Euro 1,702 m (+ 30.0%) Life net inflows at Euro 16.1 bn Life new business margin at ~20% and IRR at ~14% Shareholders’ Equity at Euro 17.5 bn (+5.0%) Cash dividend per share at Euro 0.45 (+28.6%)Assicurazioni Generali Group – FY 2010 results
  5. 5. I. FY 2010 RESULTS OVERVIEWA constant revenue growth despite the crisis…. 5 Gross written premiums (Euro bn) +3.4% CAGR 73.2 68.8 70.5 66.2 2007 2008 2009 FY10 APE (Euro m) +5.4% CAGR 5,188 5,333 4,557 4,798 2007 2008 2009 FY10Assicurazioni Generali Group – FY 2010 results
  6. 6. I. FY 2010 RESULTS OVERVIEW…and a robust result recovery thanks to our consistent strategy… 6 Total operating result (Euro bn) +11.7% 4.8 3.9 4.1 3.7 2007 2008 2009 FY10 Net result (Euro bn) +97.7% 2.9 1.7 1.3 0.9 2007 2008 2009 FY10 % increase from the lowest resultAssicurazioni Generali Group – FY 2010 results
  7. 7. I. FY 2010 RESULTS OVERVIEW…based on business diversification and strong proprietary network… 7Business diversification Operating result Life premiums P&C premiums Savings & Accident & Life P&C Unit linked Motor protection health 67% 25% 19% 40% 62% 15% Health Personal 8% 22% Financial Group Commercial 8% 11% 23%Distribution networks: proprietary networks represent our goodwill for the future Life APE P&C Proprietary Independent Other FAS FAS 6% 17% 1% Direct Banks Direct Banks 9% 13% 4% 2% Agents Broker Agents Broker 45% 15% 63% 25% 71% proprietary networks 67% proprietary networksAssicurazioni Generali Group – FY 2010 results
  8. 8. I. FY 2010 RESULTS OVERVIEW…deep roots in continental Western Europe… 8 1° or 2° rank in three core countries (Italy, France(1), Germany) generating about 2/3 of Group operating result and new business value Strong economies of scale at Country level + Centre driven cross border initiatives (IT Integration, Motor Tariffs, Claims Management,…) + Integrated asset management and real estate platform Core countries (1° or 2° rank in the market)(1) = Other countries of operations Euro 620 m savings on general expenses since 2005 and +3.8% CAGR of operating result in three core countries since 2005 despite the crisis (1) Generali ranks 2° in France excluding bancassurance operators. Including them, the ranking would be 4°Assicurazioni Generali Group – FY 2010 results
  9. 9. I. FY 2010 RESULTS OVERVIEW…good positioning in emerging countries and direct channels… 9Emerging Markets(1) Total Premiums Euro bn, CAGR % on total Group +12.2% 6.6 3.7 9.1% 5.9% 2005 2010 2005 2010 Total Operating Result Euro m, CAGR % on total Group 532 +33.4% 11.8% 126 3.6% 2005 2010 2005 2010(1) Include CEE, Asia (excluding Israel and Japan), and Latin AmericaDirect Channels Total Premiums 1° in Italian P&C Euro bn, CAGR % on total Group +20.5% 4.9% 1° in Italian Life 3.5 1.4 2.2% 1° in Germany 2005 2010 2005 2010 1° in French life Total Operating Result 1° in Hungarian P&C Euro m, CAGR % on total Group 95 +12.4% 2.3% 1° in Slovakian P&C 53 1.6% 2005 2010 2005 2010Assicurazioni Generali Group – FY 2010 results
  10. 10. I. FY 2010 RESULTS OVERVIEW…whilst maintaining a solid capital position… 10Shareholders’ Equity (Euro m) Solvency Margin (%) +5.0% 142% FY09 17,490 187% 16,652 140% FY10 160% (1) Solvency I FY09 FY10 Economic Solvency calibrated on AA rating (1) Including off balance sheet unrealized gains on real estate, 8%pts of which subject to authorities’ authorizationAssicurazioni Generali Group – FY 2010 results
  11. 11. I. FY 2010 RESULTS OVERVIEW…and an appropriate balance between dividend and profitable growth 112010 cash flow(1) before investment in new business (Euro 2.7 bn) Dividend Investment in 26% life new business 63% Additional Capital buffer 5% IRR ~ 14% Investment in P&C and New business margin ~ 20% Financial Segment 6% (1) Cash flow from Life inforce, P&C and Financial segments, before investment in new business (P&L impact for life and increase of required capital for all segments), less holding expenses (including interest expenses). For further details refer to slides 33, 40 and 57Assicurazioni Generali Group – FY 2010 results
  12. 12. I. FY 2010 RESULTS OVERVIEW2010 proposed cash dividend 12 DPS at Euro 0.45, up 28.6% Confirmed ~40% payout ratio No need of capital raising during crisis periodsCash dividend per share (Euro) 0.90 0.75 +28.6% 0.54 0.43 0.45 0.28 0.33 0.35 (1) 0.15 2002 2003 2004 2005 2006 2007 2008 2009 2010Payout ratio(2) 41.5% 41.7% 39.7% 41.8% 41.6% 41.1% 35.9% 24.6%(1) 2008 dividend included also Euro 0.63=dividend in shares, corresponding to 1/25 of the share, at the official price of 21 May 2009 (dividend payment date), leading to a total dividend per share of Euro 0.78Assicurazioni Generali Group – FY 2010 results
  13. 13. I. FY 2010 RESULTS OVERVIEWOutlook on Total Operating Result 13Outlook 2010: Top of range on Total Operating Result achieved (Euro bn) Min. Max. Actual Life 2.2 2.6 3.0 Overperformance (Investment Result, volumes) P&C 1.4 1.8 1.1 Not achieved mainly due to Nat Cat Total 3.6 4.2 4.1 Top of range achievedOutlook 2011: Good growth expected in the new “normal” (Euro bn) Min. Max. Life 2.7 3.2 Prudent harvesting implicit in the estimation P&C 1.3 1.7 Technical improvement, normal incidence Nat Cat Total 4.0 4.7 Total Operating Result average growth of +6.7% vs. 2010 (1) (1) Central point Outlook 2011 vs. Actual 2010 (Euro 4,077 m) [Natural catastrophes & financial market conditions can influence the expected results]Assicurazioni Generali Group – FY 2010 results
  14. 14. Agenda 14 II. Insurance operations Sergio Balbinot - Managing DirectorAssicurazioni Generali Group – FY 2010 results
  15. 15. II. INSURANCE OPERATIONSAddressing Insurance Business Priorities 15Priorities Life Non Life Distribution & Commercial Increasing life profitability Pricing discipline Enhancing value creation in Managing economic balance sheet Enhancing claims management distribution and customer base risks efficiency and effectivenessActions Value extraction from customer Focus on: Improved motor tariff segmentation: database through: Customer retention at maturity Wider spread of coefficients Cross & up-selling Contract duration and surrender Tariff increases (IT, FR mainly) Retention initiatives penalties Portfolio pruning (IT, FR, ES, Customer’s referral activity Shift of annual guarantees to at CEE) Customer as an Asset project, maturity Claims handling based on customer 8 countries, 24m customers Strengthening new product monitoring oriented processes Multi-channel approach through a central cockpit (Life Product Customer care New direct initiatives steering Analysis) Body shop mgmt, fraud detection Modernizing traditional networks and bodily injury mgmtMain Achievements Direct sales: total GWP Euro 3.5 bn, Net Technical Reserves: +9.4% Stable Net CoR net of CAT events +20%; weight on Life APE: 9.3%, Improved surrender rate: 4.6% Non-motor share close to 60% +1.7 %pts “At maturity guarantee”: 30% of total Cumulative Group program benefits After HU, new direct initiative in SK; guarantees offered on motor pricing and claims 3 further initiatives in pipeline management: Euro 489 mAssicurazioni Generali Group – FY 2010 results
  16. 16. II. INSURANCE OPERATIONSMain industrial results 16Life P&C 48.9 51.1 21.6 22.1 GWP(1) GWP (2) (2) (Euro bn) +3.6% (Euro bn) +1.1% FY09 FY10 FY09 FY10 Net Inflows Loss ratio 71.1 71.3 (Euro bn) 16.1 16.1 (2) (%) -0.9% +0.2%pts FY09 FY10 FY09 FY10 NBV 1,128 Combined ratio 98.3 98.8 1,050 (2) (Euro m) -8.8% (%) +0.5%pts FY09 FY10 FY09 FY10 IRR 13.1 13.9 Reserving ratio 149 149 (%) +0.7%pts (%) +0%pts FY09 FY10 FY09 FY10 (1) Including investment contracts (2) On like for like basisAssicurazioni Generali Group – FY 2010 results
  17. 17. II. INSURANCE OPERATIONSStrategic overview: focus on core European markets 17 Italy Life GWP (Euro bn) NBV (Euro m) Life +6.8%(1) -33.0%(1) Proprietary channels Life New Production: +11% 12.9 13.8 Higher share of “at maturity guarantees” (54%) and 486 326 strong reduction in yearly guarantee (1.35%) Life Net Inflows: +51.4% to Euro 1,790m FY09 FY10 FY09 FY10 Non Life Motor back to technical balance: actions on Motor Non Life GWP (Euro bn) CoR (%) tariff (avg TPL new premium +9.5%) and flexibility +1.2%(1) -2.8%pts Further acceleration of claims mgmt specialization 7.4 7.4 102.4 99.6 Operational efficiency Further General Expenses reduction: Euro -50m (IT, traditional network, Alleanza-Toro integration) FY09 FY10 FY09 FY10 Life GWP (Euro bn) NBV (Euro m) LifeGermany (1) +12.5% -0.7%(1) Twice the market GWP increase: 12.2 13.8 174 173 Products oriented to retention and up-selling Increase of corporate pension plans (baV) Non Life FY09 FY10 FY09 FY10 Outperformance vs market CoR: 3.5%pts better Non Life GWP (Euro bn) CoR (%) Non-motor share increase (+0.7%pts up to 63.9%) Operational efficiency -1.2%(1) -0.4%pts Merger cost saving targets achieved ahead of 95.6 95.2 schedule (Euro 99 m since announcement) 3.0 3.0 FY09 FY10 FY09 FY10 (1) On like for like basisAssicurazioni Generali Group – FY 2010 results
  18. 18. II. INSURANCE OPERATIONSStrategic overview: focus on core European markets 18 France Life GWP (Euro bn) NBV (Euro m) Life -7.9% (1) +15.5%(1) Focus on UL (+26.7% - 4x the market; UL share 12.4 18% vs market 13%(2) and Risk (+6.7%) 11.4 127 146 NBM among the highest in the market: 12.5% Leverage on internet leadership (> Euro 1 bn) FY09 FY10 FY09 FY10 Non Life Strong tariff increases and discount containment: Non Life GWP (Euro bn) CoR (%) Motor +5%; Household +9%; Health +9% +3.6%(1) +2.3%pts Nat Cat impact: 2.3%pts; underlying CoR +1.1%pts 3.8 3.9 99.0 101.3 Operational efficiency Claims Factory new organization and experts network strengthening FY09 FY10 FY09 FY10 (2) Share on Individual Savings Life GWP (Euro bn) NBV (Euro m) LifeCEE +1.2%(1) -13.9%(1) APE: Poland +25.3%, HU +20.1%, CZ -6.6% 1.8 62 56 NBM still at 32.3% 1.7 Non Life FY09 FY10 FY09 FY10 Net CoR: 5.6%pts of Nat Cat impact Non Life GWP (Euro bn) CoR (%) Motor: new segmented tariff in PL, innovative low- +5.3%pts cost services and direct settlement in CZ -1.7%(1) 93.2 Nat Cat pricing and coverage redesign 2.2 2.2 87.9 Operational efficiency 3% general expenses reduction in Ceska P. and FY09 FY10 FY09 FY10 claims fraud detection strengthening in CEE (1) On like for like basisAssicurazioni Generali Group – FY 2010 results
  19. 19. Agenda 19 III. Group Financials Raffaele Agrusti - CFO Profit & loss review Investments and shareholders’ equity Life, P&C and financial profitability Cash flow, Group EV and economic solvencyAssicurazioni Generali Group – FY 2010 results
  20. 20. III. GROUP FINANCIALS Revenue development by segment 20 (Euro m) FY10 ∆ historical ∆ like for like 4Q10 ∆ like for like Gross written premiums 73,188 +3.8% +2.8% 19,359 -4.5% Life(1) 51,098 +4.5% +3.6% 13,826 -6.7% P&C 22,090 +2.1% +1.1% 5,532 +1.5% Life annual premium equivalent(2) 5,333 +2.8% +1.3% 1,491 -9.3% Life net inflows(2) 16,133 +0.3% -0.9% 3,511 -31.2%(1) Including investment contracts for Euro 4,752.4 m in FY10(2) For the definitions refer to the related section within the backup Assicurazioni Generali Group – FY 2010 results
  21. 21. III. GROUP FINANCIALSOperating result by segment 21FY10 total operating result (Euro m) 4Q10 total operating result (Euro m) Life 3,026 731 operating result 2,451 +23.5% 611 +19.5% P&C 1,128 246 -11.4% +18.1% operating result 1,274 208 Financial services 354 77 operating result -18.2% -15.2% 432 90 Operating holding -288 -85 -7.3% -11.7% expenses -269 -76 Consolidation -143 -24 +40.2% +39.8% adjustments -40 -239 Total 4,077 +11.7% 944 +19.0% operating result 3,650 794 FY10 4Q10 FY09 4Q09Assicurazioni Generali Group – FY 2010 results
  22. 22. III. GROUP FINANCIALS Focus on operating result 22Operating result by country(1) Operating result breakdown(1) (Euro m) (Euro m) FY09 FY10 ∆ 1,537 Italy 1,184 1,537 +29.8% 144 205 France 706 754 +6.8% Germany 550 713 +29.6% 754 713 CEE 639 419 -34.5% 692 9 149 51 76 RoE 825 692 -16.1% 1,188 419 392 308 199 23 51 RoW 253 392 +54.8% 48 596 218 354 417 Operating result(1) 4,157 4,508 +8.4% 293 177 Op. holding expenses (269) (288) -7.3% Italy France Germany CEE RoE RoW Consolidation Adj. (239) (143) +40.2% Life P&C Financial Total operating 3,650 4,077 +11.7% result(1) Operating result = operating result of life, P&C and financial segments, before holding expenses and consolidation adjustments Assicurazioni Generali Group – FY 2010 results
  23. 23. III. GROUP FINANCIALSFrom operating result to net result 23 (Euro m) FY09 FY10 Total operating result 3,650 4,077 +11.7% Non operating investment income (501) 5 Income and exp. from fin. assets at FV thr. P&L (199) 37 Net realised gains and net impairments on other (302) (32) financial instruments (1) Non-operating holding expenses (737) (726) Net other non operating expenses (245) (479) Total non operating result (1,482) (1,200) +19.0% Consolidated result of the period before taxes 2,168 2,877 +32.7% and minority interests Income taxes (498) (909) Result from discontinued operations (Intesa Vita) 96 51 Minority interests (457) (316) Net result of the period 1,309 1,702 +30.0%(1) Including interest expenses on financial debtAssicurazioni Generali Group – FY 2010 results
  24. 24. III. GROUP FINANCIALSInvestment portfolio 24Own investments(1) at 31.12.10 (% on total) +4.7% Preference for government Euro 307.3 bn Euro 321.7 bn bonds, representing 55.9% of 7.6% 7.3% total bond portfolio 4.9% 4.8% Other 9.1% 8.5% 9.5% 9.0% Real estate Reduced exposure to Equity peripheral Euro government 31.3% 31.0% Other fixed bond income Corporate bonds 37.8% 39.3% Government High quality corporate bond bonds portfolio. 80.7% rated ≥ A FY09 FY10 Strategic decrease of equity exposure in progress (1) For the definitions refer to the related section within the backupAssicurazioni Generali Group – FY 2010 results
  25. 25. III. GROUP FINANCIALSIFRS Shareholders’ equity roll forward 25(Euro m) +5.0% 1,702 666 17,490 16,652 (2) (544) (71) (914) Shareholders’ ∆ in AFS FY 2010 ∆ Currency ∆ Cash Flow Dividend Other Shareholders’ Equity FY09 Reserve Net Result Translation Hedge Equity FY10 Reserve Reserve Change in AFS reserve (Euro m) 730 (198) 72 (787) (184) AFS Reserve Impact Equity Impact Bond Other AFS Reserve FY09 Investments Investments FY10Assicurazioni Generali Group – FY 2010 results
  26. 26. III. GROUP FINANCIALSLife profitability – operating result 26 Strong increase of life operating result driven by investment driver Life Operating Result by driver(1) (Euro m) FY09 FY10 FY09 2,451 Technical Margin 5,984 5,996 +0.2% Tech.M 12 Investment Result 1,627 2,382 +46.4% Inv.R 755 Expenses (5,159) (5,352) -3.7% Exp. (193) Operating Result 2,451 3,026 +23.5% FY10 3,026 0.97% Average 0.89% 0.93% 0.89% 0.87% Life operating 0.68% ratio on 0.89% 0.97% Investments FY06 FY07 FY08 FY09 FY10 (1) For the definitions refer to the related section within the backupAssicurazioni Generali Group – FY 2010 results
  27. 27. III. GROUP FINANCIALSConfirmed superior life net inflows capacity 27Life gross written premiums (Euro m) Life net inflows by country(2) (Euro m) Like for +3.6%(1) Country FY09 FY10 like ∆ Italy 1,182 1,790 +51.4% 48,894 51,098 France 5,841 4,444 -23.9% Germany 4,077 4,923 +20.8% CEE 700 534 -26.1% FY09 FY10 RoE 3,188 2,823 -12.9% RoW 1,095 1,619 +35.6% TOTAL 16,083 16,133 -0.9%(1) On like for like basis(2) For the definitions refer to the related section within the backupAssicurazioni Generali Group – FY 2010 results
  28. 28. III. GROUP FINANCIALSLife Technical Provisions(1) 28(Euro bn) (Euro bn) +7.2% CAGR +9.4% 313.4 286.4 286.4 16.1 13.2 3.6 313.4 243.1 257.4 261.4 (6.0) 221.0 Net technical Net Loadings, risk Policyh. Exchange Net technical FY05 FY06 FY07 FY08 FY09 FY10 provisions inflows and surrender share of rates provisions FY09 result invest. and other FY10 7.9 313.4 (to P&L) result 19.1 286.4 49.3 (19.5) Surrenders 16.1 (13.7) FY09 Traditional Unit FY10 Cash in Cash out Net inflows Linked Ratios on net technical provisions (average of the year) of: FY 2010 262.9 50.5 Net inflows Surrenders FY 2009 243.8 42.6 FY 2010 5.4% 4.6% ∆% +7.8% +18.5% FY 2009 5.9% 5.0% (1) Net technical provisions including investment contracts and excluding Intesa VitaAssicurazioni Generali Group – FY 2010 results
  29. 29. III. GROUP FINANCIALS Life investment strategy and yields(1) 29 Reduction of bond duration from 6.6 at 9M10 to 6.3 at FY10 Increased exposure to government bonds Improvement of corporate bond portfolio diversification and preference for high quality issuers Current average reinvestment rate of fixed income instruments: 3.9% Decreased equity exposure with active managementLife segment own investments(1) (% on total) Euro 255.0 bn Euro 268.9 bn Current Fixed Equity Real 5 .2 % return(1) income Estate(2) 5 .0 % 3 .4 % 3 .4 % 9 .0 % 8 .5 % Other 8 .4 % 8 .1% Real estate FY09 FY10 FY09 FY10 FY09 FY10 3 2 .7 % 3 2 .2 % Equity Other fixed inco me Euro m 9,108 9,621 602 692 592 650 Co rpo rate bo nds 4 1.5 % 4 2 .6 % Go vernment bo nds % 4.5 4.4 3.1 3.0 6.9 7.4 FY09 FY10(1) For the definitions refer to the related section within the backup(2) Real estate current returns are gross of related expenses Assicurazioni Generali Group – FY 2010 results
  30. 30. III. GROUP FINANCIALSFocus on guarantees 30Total Reserves development by type of guarantee 3.20 Yearly basis 3.00 At maturity 2010 Average Guarantee: 2.30% 2.80 Yearly basis: 2.30% 2.60 2.40 At maturity: 2.25% 2.20 2003 2004 2005 2006 2007 2008 2009 2010Total APE by type of guaranteeYE 2009 NIL At maturity 2009 Average Guarantee: 1.56% 30% 19% Yearly basis : 1.4% Matched Yearly basis 2% 49% At maturity: 2.0%YE 2010 NIL At maturity 2010 Average Guarantee: 1.58% 29% 21% Yearly basis : 1.4% Matched Yearly basis 3% 47% At maturity: 2.0%Assicurazioni Generali Group – FY 2010 results
  31. 31. III. GROUP FINANCIALS Life new business value and profitability 31 Best year ever in terms of APE production (Euro 5,333 m) Solid new business profitability (19.7% APE margin) despite the negative impact of the extraordinary widening of government spreads, which causes a significant reduction of APE margins (-4.6%pts at Group level, -11.3%pts in Italy) Overall resiliency of value added by new business (Euro 1,050 m) (Euro m) APE NBV Margins on APE Like for Like for Historical like Historical like FY09 FY10 FY09 FY10 FY09 FY10 ∆ %ptsItaly 1,704 1,766 +3.6% +3.6% 486 326 -33.0% -33.0% 28.5% 18.4% -10.1%Germany 984 976 -0.9% -0.9% 174 173 -0.7% -0.7% 17.7% 17.7% +0.0%France 1,225 1,172 -4.4% -4.4% 127 146 +15.5% +15.5% 10.3% 12.5% +2.2%CEE 158 172 +8.7% +5.3% 62 56 -10.1% -13.9% 39.1% 32.3% -6.8%RoE 740 792 +7.1% +4.0% 173 197 +14.2% +8.6% 23.3% 24.9% +1.6%RoW 377 455 +20.8% +7.3% 106 153 +43.5% +29.3% 28.2% 33.5% +5.3%Total 5,188 5,333 +2.8% +1.3% 1,128 1,050 -6.9% -8.8% 21.7% 19.7% -2.0% Assicurazioni Generali Group – FY 2010 results
  32. 32. III. GROUP FINANCIALSInvestment in life new business 32(Euro bn) 2009 2010 1st year P&L impact -0.9 1st year P&L impact -1.0 In % of NBP 3.7% In % of NBP 3.8% Capital absorption -0.6 Capital absorption -0.7 In % of NBP 2.5% In % of NBP 2.8% 1 st year strain -1.5 1 st year strain -1.7 In % of NBP 6.2% In % of NBP 6.6% New Business Value 1.13 New Business Value 1.05 NBM 21.7% NBM 19.7% Internal Rate of Return 13.1% Internal Rate of Return 13.9% Payback period 7.1 years Payback period 6.5 yearsAssicurazioni Generali Group – FY 2010 results
  33. 33. III. GROUP FINANCIALSExpected Life cash flow generation 33Life & Savings expected free cash flows (Euro m) Capital 459 (720) 209 Profit (611) (990) 2,130 2,008 (919) 879 686 Existing Run Off New Business Free Cashflow Existing Run Off New Business Free Cashflow 2010 2010 2010 2009 2009 2009 2010 Inforce 2010 New Business Expected undiscounted cash flows Expected undiscounted cash flows 14,000 2000 12,000 1500 1000 10,000 500 8,000 0 6,000 -500 4,000 -1000 2,000 -1500 0 -2000 Years Years Years Years Years Years Years Years 0 Years Years Years Years Years Years Years 1-5 6-10 11-15 16-20 21-25 26-30 31+ 1-5 6-10 11-15 16-20 21-25 26-30 31+Assicurazioni Generali Group – FY 2010 results
  34. 34. III. GROUP FINANCIALS P&C profitability - operating result 34P&C operating result affected by increasing catastrophesP&C Operating Result by driver(1) (Euro m) FY09 FY10 FY09 1,274 Technical Result 274 184 -32.7% Tech.R (90) Investment Result 1,226 1,196 -2.4% Inv.R (30) Other (226) (252) -11.7% Other (26) Operating Result 1,274 1,128 -11.4% FY10 1,128 P&C operating ratio on 3.58% 3.07% Investments(1) For the definitions refer to the related section within the backup Assicurazioni Generali Group – FY 2010 results
  35. 35. III. GROUP FINANCIALSP&C Gross Written Premiums 35 Robust signs of premium recovery in Motor in Italy and France Retail Non Motor accelerating in most of territories, in line with strategic guidelines Commercial resilient in spite of the economic scenario Historical Like for like (Euro m) FY09 FY10 Italy 7,353 7,440 +1.2% +1.2% France 3,754 3,892 +3.7% +3.6% Germany 3,034 2,998 -1.2% -1.2% CEE 2,204 2,246 +1.9% -1.7% RoE 4,160 4,203 +1.0% -0.2% RoW 1,130 1,312 +16.1% +8.8% Total 21,636 22,090 +2.1% +1.1%Assicurazioni Generali Group – FY 2010 results
  36. 36. III. GROUP FINANCIALSP&C profitability – Net combined ratio (1/2) 36Combined ratio (%) Combined ratio by country (%) +0.5%pts. 0.2 FY09 FY10 ∆%pts. 98.3 0.3 98.8 Italy 102.4 99.6 -2.8%pts. 27.2 27.5 France 99.0 101.3 +2.3%pts. Germany 95.6 95.2 -0.4%pts. 71.3 CEE 87.9 93.2 +5.3%pts. 71.1 RoE 96.8 99.3 +2.5%pts. FY09 Expense Loss FY10 ratio ratio RoW 102.7 101.6 -1.1%pts. Loss ratio Expense ratio Total 98.3 98.8 +0.5%ptsAssicurazioni Generali Group – FY 2010 results
  37. 37. III. GROUP FINANCIALSP&C profitability – Net combined ratio (2/2) 37Loss ratio (%) Reserving ratio (%) 0%pts 71.1 -0.1 0.6 -0.3 71.3 149% 149% Current Nat Prior FY09 year(1) CAT years FY10 FY 2010 73.3 1.9 -3.9 71.3 FY09 FY10 FY 2009 73.4 1.3 -3.6 71.1(1) Excluding natural catastrophesExpense ratio (%) 27.2 27.5 Impact from nat cat above normal levels, -0,1 0.4 due to increased frequency of natural 6.1 6.0 events 21.5 Stable current year loss ratio, thanks to ∆%pts Acq. costs improved performance of Motor 21.1 Adm. costs Positive prior years development whilst confirming prudent reserving policy FY09 ∆ Admin ∆ Acq. FY10Assicurazioni Generali Group – FY 2010 results
  38. 38. III. GROUP FINANCIALS P&C investment strategy and yields(1) 38 Reduction of bond duration (from 4.7 at 9M10 to 4.3 at FY10) allowed to realise capital gains, benefiting from lengthening duration strategy Preference for government bonds within fixed income investments Maintained exposure to corporate bonds allowed to sustain current return Current average reinvestment rate of fixed income instruments: 3.6% Reduced equity exposure due to the start of a progressive de-risking processP&C segment own investments(1) (% on total) Current Fixed Equity Real Euro 36.3 bn Euro 36.4 bn return(1) income Estate(2) 11.4 % 11.2 % Other 16 .5 % 17 .5 % Real estate FY09 FY10 FY09 FY10 FY09 FY10 12 .7 % 11.0 % 7 .3 % Equity 9 .3 % Other fixed inco me Euro m 861 847 167 118 527 534 2 6 .9 % 2 6 .9 % Co rpo rate bo nds 2 3 .5 % 2 5 .9 % Go vernment % 4.0 3.8 3.5 2.6 9.0 8.7 bo nds FY09 FY10(1) For the definitions refer to the related section within the backup(2) Real estate current returns are gross of related expenses Assicurazioni Generali Group – FY 2010 results
  39. 39. III. GROUP FINANCIALSFinancial segment 39 Operating result (Euro m) Net fees and commissions (Euro m) -18.2% +12.8% 894 792 432 354 FY09 FY10 FY09 FY10 Third party AUM(1) (Euro bn) Cost/income ratio (%) +17.3% +6.8%pts 93.0 79.3 63.7% 70.5% FY09 FY10 FY09 FY10(1) Including only third party AUM related to financial segment companiesAssicurazioni Generali Group – FY 2010 results
  40. 40. III. GROUP FINANCIALSTotal cash flow generation 2010 40(Euro bn) Life Group total Profit(1) 1.1 Var. Req Free Cash Flow 1.6 Capital (0.3) Free Cash Holding exp.(3) 0.9 (0.7) Flow Free Cash Flow P&C and Financial before dividend 0.9 Profit(2) 0.9 Dividend (0.7) Var. Req (0.2) Capital Net Free Cash Flow 0.2 Free Cash 0.7 Flow (1) Expected profit based on EV calculations (see slide 33) (2) P&C and Financial Segment Operating Result net of taxes and minorities (3) Holding expenses (incl. int. on financial debt) net of taxes and minoritiesAssicurazioni Generali Group – FY 2010 results
  41. 41. III. GROUP FINANCIALSGroup Embedded Value roll-forward 41 Including:(Euro m) -3.1 bn due to spread widening and drop of stock market in Italy -0.7 bn due to the decrease in interest rates 2,900 27,337 26,968 (2,724) (545) EV FY09 EV earnings Investment and Tax Cash Dividend EV FY10 Return on Embedded Value Variances Group Embedded Value Group EV FY10 10.6% Normalised RoEV (1) 0.6% RoEV (1) 17.5€ Group EV per share (1) For the definitions refer to the related section within the backupAssicurazioni Generali Group – FY 2010 results
  42. 42. III. GROUP FINANCIALSEconomic Solvency and Capital Allocation 42 Breakdown of Group risk capital Economic Solvency Coverage (ESC) after diversification (Euro bn) FY09 FY10 Geographic breakdown Sub. Debt Other 34.3 33.6 ESC = 187%(1) ESC = 160%(2)(3) 25% Sub. Sub. Italy 39% Debt Group Risk Debt Capital 20.6(3) €20.6 bn 18.1 France Group 23% Group Group Germany EV Group EV RAC 13% RAC Available Group Available Group Capital Risk Capital Capital Risk Capital Property & Casualty: Resulting at 33.9% of Net Earned Premiums(1) ESC FY09 = AC FY09 (net of dividend 2009 equal to 0.5bn) divided by Risk Capital FY09(2) ESC FY10 = AC FY10 (net of proposed dividend 2010 equal to 0.7bn) divided by Risk Capital FY10 Life & Health: Resulting at 4.4%(3) Preliminary figures of Net Technical Provisions Financial: Resulting at 1.3% of Economic Solvency Ratio based on Group Internal Model calibrated on AuM 1year VAR at 99.95% confidence level Economic Solvency evolution mainly affected by spread wideningAssicurazioni Generali Group – FY 2010 results
  43. 43. III. GROUP FINANCIALSEconomic Solvency 43 (Euro bn) Solvency II Economic Solvency Ratio 33.6 ratio 209%(1) 160% 4.9 20.6 15.7 Available Group Risk Additional Capital Group Risk Capital Capital(2) to AA target(3) Capital(3) (@ 99.50) (@ 99.95) (1) Solvency II ratio based on Group Internal Model calibrated on 1year VAR at 99.5% confidence level (2) Solvency II SCR based on Group Internal Model calibrated on 1year VAR at 99.5% confidence level (3) Based on Group Internal Model calibrated on 1year VAR at 99.95% confidence levelAssicurazioni Generali Group – FY 2010 results
  44. 44. III. GROUP FINANCIALSGlobal Added Value (GAV) 44GAV (Euro m) 2010 GAV breakdown (%) Shareholders Group +7.9% 7.4% 7.4% Community 13,633 0.3% 12,635 12,011 Credit capital providers(1) 9.1% State 6.4% 2008 2009 2010 Agents & FAs Employees 39.0% 30.4% (1) Total interest expense (including operating debt)Assicurazioni Generali Group – FY 2010 results
  45. 45. Agenda 45 IV. Backup P&L Balance sheet Life Capital Sustainability DefinitionsAssicurazioni Generali Group – FY 2010 results
  46. 46. Agenda 46 IV. Backup P&L Balance sheet Life Capital Sustainability DefinitionsAssicurazioni Generali Group – FY 2010 results
  47. 47. IV. BACK UPFY10 Total gross written premiums 47 Euro (m) Total gross written premiums Gross life written premiums(1) Gross P&C written premiums Weight on Weight on Weight on YoY consoli- YoY consoli- YoY consoli- Country GWP % increase dated GWP % increase dated GWP % increase dated (2) (2) (2) Italy 21,234 +4.8 29.0 13,794 +6.8 18.8 7,440 +1.2 10.2 France 15,285 -5.3 20.9 11,394 -7.9 15.6 3,892 +3.6 5.3 Germany 16,754 +9.8 22.9 13,756 +12.5 18.8 2,998 -1.2 4.1 CEE 4,012 -0.4 5.5 1,766 +1.2 2.4 2,246 -1.7 3.1 RoE 10,782 -2.3 14.9 6,669 -3.5 9.1 4,203 -0.2 5.7 Of which: Spain 2,292 -10.8 3.1 920 -18.4 1.3 1,372 -4.8 1.9 Austria 2,515 +2.2 3.4 1,165 +4.5 1.6 1,350 +0.3 1.8 Switzerland 1,558 +1.3 2.1 978 -0.2 1.3 580 +3.8 0.8 RoW 5,031 +16.4 6.9 3,719 +19.4 5.1 1,312 +8.8 1.8 Total 73,188 +2.8 100.0 51,098 +3.6 69.8 22,090 +1.1 30.2(1) Including investment contracts(2) On like for like basis with constant exchange ratesAssicurazioni Generali Group – FY 2010 results
  48. 48. IV. BACK UPLife premiums by country & business line 48 Life FY10 Savings and Unit/index (Euro m) protection linked Health Group Total Italy 87.0% 2.0% 0.0% 11.1% 13,469 France 71.1% 14.7% 7.7% 6.5% 11,178 Germany 50.5% 23.4% 17.2% 8.9% 13,755 CEE 61.7% 27.4% 9.9% 1.1% 1,766 RoE 28.2% 56.9% 3.9% 11.0% 6,649 Of which: Spain 61.6% 1.8% 0.0% 36.6% 920 Austria 55.8% 25.1% 19.2% 0.0% 1,156 Switzerland 20.9% 78.0% 0.9% 0.2% 978 RoW 36.9% 0.8% 10.2% 52.1% 2,997 Total life gross 61.6% 18.9% 8.0% 11.5% 49,813 direct premiumsAssicurazioni Generali Group – FY 2010 results
  49. 49. IV. BACK UPP&C premiums by country & business line 49 P&C FY10 Accident/ (1) (Euro m) Motor Health Personal Commercial Total Italy 43.1% 18.7% 11.4% 26.8% 7,328 France 29.8% 13.1% 37.0% 20.1% 3,659 Germany 36.1% 15.3% 39.3% 9.3% 2,994 CEE 51.0% 11.4% 14.8% 22.9% 2,212 RoE 36.6% 15.1% 22.3% 26.0% 4,058 Of which: Spain 27.5% 12.4% 26.8% 33.3% 1,341 Austria 39.9% 11.0% 20.7% 28.4% 1,323 Switzerland 47.8% 23.4% 28.3% 0.5% 578 RoW 61.7% 5.7% 3.9% 28.7% 1,266 Total P&C gross 40.5% 15.1% 21.6% 22.8% 21,517 direct premiums(1) Including fleetsAssicurazioni Generali Group – FY 2010 results
  50. 50. IV. BACK UPRatios 50 Life – Expense ratio (%) P&C – Combined ratio (%) 98.3 98.8 Expense 27.2 27.5 ratio Loss 10.5 10.4 71.1 71.3 ratio FY09 FY10 FY09 FY10 Total – Expense ratio (%) 15.4 15.3 FY09 FY10Assicurazioni Generali Group – FY 2010 results
  51. 51. IV. BACK UPFY10 combined ratio reconciliation 51 (Euro m) A Net earned premiums (net of consolidation adjustments) 20,274.0 B Consolidated net insurance benefits and claims 14,451.4 Consolidated acquisition costs 4,366.2 Consolidated administration costs 1,280.9 Non insurance related administration costs(1) 64.9 Insurance related consolidated administration costs 1,216.0 C Total acquisition and insurance related administration costs 5,582.2 B/A Loss ratio 71.3% C/A Expense ratio 27.5%(B+C)/A Combined ratio 98.8% D Other technical items 56.0A-B-C-D Technical result 184.3 (1) Administration expenses related to service companies, real estates and other companies not belonging to P&C segmentAssicurazioni Generali Group – FY 2010 results
  52. 52. IV. BACK UPRatios by country 52 (%) ITA FRA GER CEE SPA AUT SWI Consolidated P&C Loss ratio FY10 77.5 73.3 65.1 60.2 71.2 68.3 69.0 71.3 FY09 79.9 70.8 65.6 58.1 69.5 68.9 64.8 71.1 P&C Expense ratio FY10 22.1 28.1 30.1 33.0 26.8 26.9 26.9 27.5 FY09 22.5 28.2 30.0 29.8 25.1 27.1 29.5 27.2 P&C Combined ratio FY10 99.6 101.3 95.2 93.2 98.1 95.2 95.9 98.8 FY09 102.4 99.0 95.6 87.9 94.6 95.9 94.3 98.3 Life expense ratio by country FY10 8.7 8.2 12.4 17.3 6.7 13.4 19.6 10.4 FY09 9.2 6.7 14.3 18.7 5.2 13.7 17.4 10.5Assicurazioni Generali Group – FY 2010 results
  53. 53. IV. BACK UP Reclassified P&L account 53(Euro m) Total FY09 FY10Total Operating result 3,650 4,077 Net earned premiums 64,036 65,727 Net insurance benefits and claims (68,187) (67,720) Acquisition and administration costs (11,181) (11,638) Net fee and commission income and net income from financial service activities 782 868 Operating income from other financial instruments 10,889 12,685 Operating income from financial instruments at fair value through profit or loss 7,967 4,833 of which net income from fin. assets and liabilities where the risk is borne by the policyholders 5,151 2,902 Operating holding expenses (269) (288) Net other operating expenses (388) (389)Non-operating result (1,482) (1,200) Non-operating income from other financial instruments (302) (32) Non-operating income from financial instruments at fair value through profit or loss (199) 37 Non-operating holding expenses (737) (726) Interest expenses on financial debt (707) (704) Other non-operating holding expenses (30) (22) Net other non-operating expenses (245) (479)Earnings before taxes 2,168 2,877Income taxes (498) (909)Result from discontinued operations (Intesa Vita) 96 51Consolidated result of the period 1,766 2,018Result of the period attributable to minority interests (457) (316)Result of the period 1,309 1,702 Assicurazioni Generali Group – FY 2010 results
  54. 54. IV. BACK UP Reclassified P&L account by segment – FY 2009 54 Unallocated holding Consolidation (Euro m) Life Non life Financial(1) expenses adjustments Total Total Operating result 2,451 1,274 432 (269) (239) 3,650 Net earned premiums 44,103 19,932 0 - - 64,036 Net insurance benefits and claims (54,001) (14,177) 0 - (9) (68,187) of which var. of provisions related to unit linked business (6,457) - - - - (6,457) Acquisition and administration costs (4,961) (5,436) (783) - (1) (11,181) Net fee and commission income and net income from financial service activities 100 0.0 792 - (110) 782 Operating income from other fin. Instruments 9,549 1,152 312 - (123) 10,889 Operating income from fin. Instruments at fair value through profit or loss 7,745 74 148 - - 7,967 of which net income from fin.assets and liabilities where the risk is borne by the policyholders 5,151 - - - - 5,151 Operating holding expenses - - - (269) - (269) Net other operating expenses (83) (272) (37) - 4 (388) Non-operating result (236) (433) (76) (737) - (1,482) Non-operating income from other fin.instr. (188) (109) (5) - - (302) Non-operating income from fin. instr.at fair value through profit or loss 0 (199) - - - (199) Non-operating holding expenses - - - (737) - (737) Net other non-operating expenses (48) (125) (71) - - (245) Earnings before taxes 2,215 841 356 (1,006) (239) 2,168(1) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Report Assicurazioni Generali Group – FY 2010 results
  55. 55. IV. BACK UP Reclassified P&L account by segment – FY 2010 55 Unallocated holding Consolidation (Euro m) Life Non life Financial(1) expenses adjustments Total Total Operating result 3,026 1,128 354 (288) (143) 4,077 Net earned premiums 45,453 20,274 0 - - 65,727 Net insurance benefits and claims (53,265) (14,451) 0 - (4) (67,720) of which var. of provisions related to unit linked business (4,657) - - - - (4,657) Acquisition and administration costs (5,137) (5,602) (900) - - (11,638) Net fee and commission income and net income from financial service activities 109 0 894 - (135) 868 Operating income from other fin. Instruments 11,260 1,152 280 - (7) 12,685 Operating income from fin. Instruments at fair value through profit or loss 4,681 44 108 - - 4,833 of which net income from fin.assets and liabilities where the risk is borne by the policyholders 2,902 - - - - 2,902 Operating holding expenses - - - (288) - (288) Net other operating expenses (75) (289) (28) - 3 (389) Non-operating result (183) (239) (59) (726) 7 (1,200) Non-operating income from other fin.instr. (73) 31 (3) - 13 (32) Non-operating income from fin. instr.at fair value through profit or loss 0 37 - - - 37 Non-operating holding expenses - - - (726) - (726) Net other non-operating expenses (110) (307) (56) - (5) (479) Earnings before taxes 2,843 889 295 (1,014) (136) 2,877(1) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Report Assicurazioni Generali Group – FY 2010 results

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