Generali Group 2010 Results

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  • 1. Generali Group2010 Results Milan, March xxx, 2010 March 16, 2011 March 2006
  • 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. Agenda 3 I. FY 2010 results overview Giovanni Perissinotto - Group CEOAssicurazioni Generali Group – FY 2010 results
  • 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Agenda 14 II. Insurance operations Sergio Balbinot - Managing DirectorAssicurazioni Generali Group – FY 2010 results
  • 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Agenda 45 IV. Backup P&L Balance sheet Life Capital Sustainability DefinitionsAssicurazioni Generali Group – FY 2010 results
  • 46. Agenda 46 IV. Backup P&L Balance sheet Life Capital Sustainability DefinitionsAssicurazioni Generali Group – FY 2010 results
  • 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. 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. 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. 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. 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. 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. 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. 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. 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
  • 56. IV. BACK UPOperating and net result by quarter 56Total Operating result(1) (Euro m) 2009 2010 +11.7% 944 4,077 794 3,650 997 902 958 936 1,178 1,018 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY(1) Starting from FY10, FX gains & losses incurred in P&C segment have been included into Non operating investment income. Comparative information have been restatedaccordingly. Refer to the ‘Methodological note on alternative performance measures’ included in the Management Report for detailsNet result (Euro m) 2009 2010 +30.0% 389 1,702 414 1,309 440 390 346 401 527 104 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FYAssicurazioni Generali Group – FY 2010 results
  • 57. IV. BACK UPCash flow reconciliation 57 Capital 2010 Free Cash Flow (Euro bn) Released/ Free Cash Profit Required Flow Existing Business Life (expected EV profit) 2.13 0.46 2.59 P&C and Financial (operating result less tax and minorities) 0.85 0.85 Operating Cash Flow before investment in new business 2.98 0.46 3.44 Holding Expenses (net of tax and minorities) - 0.71 - -0.71 Total Cash Flow Before investment in new business 2.27 0.46 2.73 100% Investment in Life New Business - 0.99 -0.72 - 1.71 63% Investment in P&C and Financial -0.17 -0.17 6% Dividend - 0.70 - -0.70 26% Net Cash Flow 0.58 -0.43 0.15 5%Assicurazioni Generali Group – FY 2010 results
  • 58. IV. BACK UPLife operating result 58Life operating result (Euro m) Life Operating result by country (Euro m) (Euro m) FY09 FY10 +23.5% Italy 1,010 1,188 +17.6% France 455 596 +31.1% 3,026 Germany 241 354 +46.9% 2,451 CEE 297 177 -40.4% RoE 266 417 +57.3% Of which: Spain 89 110 +23.1% Austria 34 64 +90.4% Switzerland 71 128 +78.8% RoW 182 293 +60.8% FY09 FY10 Total 2,451 3,026 +23.5%Assicurazioni Generali Group – FY 2010 results
  • 59. IV. BACK UPLife net inflows by country 59 Country FY09 FY10 Like for like ∆ Italy 1,182 1,790 +51.4% France 5,841 4,444 -23.9% Germany 4,077 4,923 +20.8% CEE 700 534 -26.1% RoE 3,188 2,823 -12.9% Of which: Spain (303) (522) -72.1% Austria 79 163 +105.4% Switzerland 504 545 -1.1% RoW 1,095 1,619 +35.6% TOTAL 16,083 16,133 -0.9%Assicurazioni Generali Group – FY 2010 results
  • 60. IV. BACK UPP&C operating result 60P&C operating result (Euro m) P&C Operating result by country (Euro m) (Euro m) FY09 FY10 -11.4% Italy 55 206 +271.4% France 246 149 -39.3% Germany 258 308 +19.2% 1,274 CEE 322 218 -32.2% 1,128 RoE 360 199 -44.6% Of which: Spain 152 105 -30.6% Austria 91 102 +11.4% Switzerland 50 46 -8.3% FY10 RoW 33 48 +47.3% FY09 Total 1,274 1,128 -11.4%Assicurazioni Generali Group – FY 2010 results
  • 61. IV. BACK UPOther operating and non operating costs by segment 61 Life Non Life Financial (Euro m) FY09 FY10 FY09 FY10 FY09 FY10 TOTAL NET OPERATING EXPENSES (83.4) (74.6) (271.7) (288.7) (37.2)(1) (28.7)(1) Restructuring costs (15.2) (26.2) (76.3) (63.0) (44.8) (19.8) Other net non operating expenses(2) (32.9) (84.1) (49.0) (244.1) (26.4) (36.7) TOTAL NET NON OPERATING EXPENSES (48.0) (110.3) (125.3) (307.2) (71.2) (56.5)(1) To ensure consistency with a more accurate cost allocation performed during 2010, YE 2009 comparative figures has been restated accordingly reclassifying 14.6 mcosts from net operating expenses to acquisition and administration costs (FY 2009 reported data was -51.8 m).(2) Other non operating expenses include mainly amortization of VOBAAssicurazioni Generali Group – FY 2010 results
  • 62. IV. BACK UPFocus on impairments(1) 62 (Euro m) Life P&C Financial Total FY09 FY10 FY09 FY10 FY09 FY10 FY09 FY10 Net impairments Equity instruments 857 447 248 133 4 2 1,108 582 Fixed income 37 12 26 38 3 15 67 64 Real estate 240 20 27 (1) - - 267 19 Other investments(2) 31 17 191 212 29 19 250 248 Total net impairments 1,165 496 491 381 36 35 1,692 913 Of which Operating net 962 366 - - 36 35 998 401 impairments Non operating net 202 130 491 381 - - 694 512 impairments (1) Net of reverse impairments (2) Including subsidiaries and associated companiesAssicurazioni Generali Group – FY 2010 results
  • 63. IV. BACK UPFocus on realised gains(1) 63(Euro m) Life P&C Financial Total FY09 FY10 FY09 FY10 FY09 FY10 FY09 FY10Net realized gains Equity instruments (61) 473 25 157 (3) 1 (39) 631 Fixed income 1,204 1,323 208 131 25 14 1,438 1,468 Real estate 232 90 134 141 - - 366 231 Other investments(2) (53) 10 15 (16) (6) (2) (44) (9)Total net realized gains 1,322 1,896 383 412 17 13 1,722 2,321Of whichOperating net realized 1,308 1,839 - - 22 15 1,330 1,854gainsNon operating net 14 57 383 412 (5) (2) 392 467realized gains(1) Excluding financial instruments at fair value through profit and loss(2) Including subsidiaries and associated companiesAssicurazioni Generali Group – FY 2010 results
  • 64. IV. BACK UPFocus on non operating items: non operating investment income 64 Non operating investment income (Euro m) 236 5 182 88 (501) ∆ Euro m Net realised Net Fair Value FY09 gains impairments thr. P&L FY10 FY10 480 (512) 37 FY09 392 (694) (199) ∆% +22.4% +26.2% n.a.Assicurazioni Generali Group – FY 2010 results
  • 65. IV. BACK UP Focus on non operating items: interest expenses on financial debt 65Interest expenses on financial debt (Euro m) Total financial debt (Euro m) 707 704 26 59 14,287 12,272 (1) 681 645 (1) 10.9% 13.8% FY09 FY10 51.0% 53.0%Average cost & maturity of financial debt (%) 35.2% 36.1% FY09 FY10 FY09 FY10 Average cost (%) 5.35% 5.36% Senior Sub/Hybrid Other Average maturity (years) 7.83 6.87(1) Net of refinancing of Euro 1,750 m bond repaid on 20/07/2010 Assicurazioni Generali Group – FY 2010 results
  • 66. Agenda 66 IV. Backup P&L Balance sheet Life Capital Sustainability DefinitionsAssicurazioni Generali Group – FY 2010 results
  • 67. IV. BACK UPConsolidated balance sheet 67 Assets Liabilities (Euro bn) FY09 FY10 (Euro bn) FY09 FY10 Shareholders’ Equity Intangible assets 10.4 10.7 (Group share) 16.7 17.5 Investments 341.5 364.2 Minority interests 3.3 2.5 Shareholders’ Equity 20.0 20.0 Cash 10.5 11.0 Subordinated and financial liabilities 50.4 53.9 Other credits 11.3 11.5 Technical reserves 309.6 329.6 Tangible assets 3.8 3.8 Other debts and allowances 8.9(2) 9.1 Other assets (1) 46.3 21.3 Other liabilities 35.0(2)(3) 9.7 Total Liabilities and Total Assets 423.8 422.4 Shareholders’ Equity 423.8 422.4(1) Including reinsurance amounts of technical reserve(2) According to a better definition and allocation of tax liabilities the comparative amounts have been coherently restated (FY 2009 reported data: Other debts andallowances 9.2 bn, Other liabilities 34.7 bn)(3) Including assets and liabilities related to discontinued operations (Intesa Vita)Assicurazioni Generali Group – FY 2010 results
  • 68. IV. BACK UPFY10 Assets Under Management 68 Total Euro 470.8 bn Esposizioni nette a governativi di Third parties AUM Grecia, Spagna, 98.8 Portogallo e Irlanda 50.3 Unit Linked Available for sale Loans Fixed income Other 58.7% 24.0% instruments 3.7% Real Estate 79.2% 4.1% Real Estate Group 4.9% participations 321.7 0.8% Equity Held to maturity 8.5% 1.4% Fin. Instr. at fair value thr. P&L Cash & equival. “Own Investments”(1) Cash & equival. 7.2% 3.8% 3.8% (1) For the definitions refer to the related section within the backupAssicurazioni Generali Group – FY 2010 results
  • 69. IV. BACK UPFY10 Own Investments at amortized cost and fair value(1) 69 Total Euro 321.7 bn 11.7 Fixed income instruments 85.1% Of which bonds 80.4% Equity 212.2 12.9% Fixed income instruments Other 76.3% 2.0% Of which bonds 56.6% Real estate Of which loans 19.7% 13.5% Other Cash & equivalents 7.7% Investments at amortized cost 97.4 Subs, ass. & JVs Investments at fair value 2.5%(1) Excluding unit linked and third partiesAssicurazioni Generali Group – FY 2010 results
  • 70. IV. BACK UP FY10 book value & market value of Own Investments(1) 70(Euro m) Life P&C Financial Total(2)Asset classes BV MV BV MV BV MV BV MV Equity 22,874 22,874 4,000 4,000 424 424 27,298 27,298 Fixed income instruments 222,877 225,595 21,877 22,028 11,972 12,109 254,836 257,841 Government 114,669 115,850 9,420 9,449 2,230 2,225 126,319 127,523 Corporate 86,663 87,975 9,810 9,831 3,666 3,650 99,667 100,984 Other fixed income 21,546 21,770 2,646 2,749 6,076 6,234 28,849 29,334 Real estate 9,233 11,001 6,388 9,945 25 35 15,645 20,981(1) Excluding unit linked and third parties(2) Net of consolidation adjustments Assicurazioni Generali Group – FY 2010 results
  • 71. IV. BACK UPQuality of FY10 fixed income portfolio 71Fixed income portfolio composition (Euro 254.8 bn) By issuer (%) Average bond portfolio 9.7 12.1 11.3 duration by segment (years) Life P&C 38.9 50.8 44.8 39.1 Government 7.0 5.1 30.6 51.4 49.6 43.1 18.6 Corporate 5.3 3.5 Life P&C Financials Total Government Corporate Other fixed incomeBond portfolio by rating (%) % Current return % Comprehensive by segment return by segment 1.7% 8.4% Life 4.4 2.8 35.2% 33.4% 19.4% 1.8% P&C 3.8 3.1 AAA AA A BBB NIG NRAssicurazioni Generali Group – FY 2010 results
  • 72. IV. BACK UPFocus on FY10 government bond portfolio 72(Euro 126.3 bn, 49.6% of total fixed income portfolio) % Split by rating Total % Split by country Total AAA 37.7 Italy 37.5 AA 48.7 Germany 14.6 A 7.4 France 11.1 BBB 2.9 CEE 5.2 Not investment grade 1.7 RoE 22.2 Not rated 1.6 RoW 9.4 % Split by accounting treatment % of segmental own investments 16.3 83.7 43% 26% 10% Life P&C Financial Amortized cost Fair ValueAssicurazioni Generali Group – FY 2010 results
  • 73. IV. BACK UPPortfolios exposure on Peripheral Europe 73Exposure to peripheral Europe Government Bonds as at 31.12.2010 (Euro bn) Gross Net (1) Portugal 3.5 0.5 Spain 3.8 0.8 Ireland 1.8 0.3 Greece 3.0 0.5 Total 12.1 2.1(1) Net of Policyholder’s Participation and TaxesAssicurazioni Generali Group – FY 2010 results
  • 74. IV. BACK UPFocus on FY10 corporate bond portfolio 74(Euro 99.7 bn, 39.1% of total fixed income portfolio) % Split by rating Total % Split by industry Life P&C AAA 32.1 Financials(1) 67.7 65.8 AA 14.1 Utilities 9.0 5.7 A 34.5 ABS 3.3 8.6 BBB 15.3 Telecom 4.8 4.1 Not investment grade 2.0 Industrial 4.6 4.9 Not rated 2.0 Other 10.6 10.9 (1) Including covered bonds: 19.9% in life, 13.2% in P&C % Split by accounting treatment % of segmental own investments 65.1 34.9 32% 27% 16% Amortized cost Fair Value Life P&C FinancialAssicurazioni Generali Group – FY 2010 results
  • 75. IV. BACK UPFocus on FY10 equity portfolio 75(Euro 27.3 bn) FY10 Group net equity exposure % split by industry Life P&C 27.3 Financials 18.1 27.0 (0.2) Consumer 10.3 8.2 Telecom 9.1 3.4 6.8 Industrial 6.1 6.3 (19.0) (0.9) (0.4) Other 21.6 28.0 Gross Hedging Policyholders’ Taxes Minorities Net equity interests equity exposure exposure Funds 34.9 27.2 % of total own investments % Current return % Comprehensive by segment return by segment Life 3.0 5.0 9% 11% 2% P&C 2.6 1.6 Life P&C FinancialAssicurazioni Generali Group – FY 2010 results
  • 76. IV. BACK UPFY10 Group real estate assets (1/2) 76 Country Total Inv. BV % of Total Inv. MV % of (Euro bn) the total (Euro bn) the total Italy 6.6 35% 9.8 40% France 3.7 20% 4.9 20% Germany 4.3 23% 4.3 17% CEE 0.2 1% 0.2 1% RoE(1) 3.9 20% 5.4 21% RoW (2) 0.2 1% 0.2 1% Total 18.9 100% 24.8 100%(1) RoE includes Austria, Spain, Israel, Switzerland, Belgium and Netherlands(2) RoW includes Latin America, Far East and USInvestment properties vs self use Yield on investment properties Self Use % Current return by segment Total 15.3 % Life 7.4% Investment P&C 8.7% properties 84.7 %Assicurazioni Generali Group – FY 2010 results
  • 77. IV. BACK UPFY10 Group real estate assets (2/2) 77 Direct Investments in leader countries Country Area % of MV % of (sqm m) total area (Euro bn) Total MV Italy 2.4 33% 8.6 38% France 1.5 21% 4.7 21% Germany 1.3 19% 3.3 15% CEE 0.1 2% 0.2 1% RoE 1.7 24% 5.3 24% RoW 0.1 1% 0.2 1% Total 7.1 100% 22,3 100% Other 9% Office 74% Logistic 3% Retail 6% Residential 8%Assicurazioni Generali Group – FY 2010 results
  • 78. IV. BACK UPInvestment yields(1) 78 Bonds and Loans Equities Investment Other Total properties % return FY09 FY10 FY09 FY10 FY09 FY10 FY09 FY10 FY09 FY10 LIFE Current 4.5 4.4 3.1 3.0 6.9 7.4 2.7 2.1 4.4 4.3 Total P&L 5.5 5.1 3.4 6.0 4.7 6.0 0.7 2.7 4.9 5.0 Comprehensive 6.9 2.8 22.4 4.9 4.8 6.0 0.7 2.7 7.7 2.9 NON LIFE Current 4.0 3.8 3.5 2.6 9.0 8.7 3.2 2.9 4.7 4.4 Total P&L 4.9 4.6 -2.5 2.4 7.2 7.0 -0.8 1.9 3.7 4.4 Comprehensive 6.8 3.1 15.9 1.6 7.2 7.0 -0.8 1.9 7.2 3.4 TOTAL Current 4.4 4.3 3.5 3.2 7.6 7.8 2.0 1.8 4.3 4.2 Total P&L 5.3 5.0 2.7 5.3 5.6 6.4 -0.1 2.0 4.6 4.8 Comprehensive 6.8 2.8 21.4 4.3 5.6 6.4 -0.1 2.0 7.3 3.0 (1) For the definitions refer to the related section within the backupAssicurazioni Generali Group – FY 2010 results
  • 79. IV. BACK UP4Q10 IFRS Shareholders’ equity roll forward 79IFRS Shareholders’ equity roll forward (Euro m) -3.9% 18,201 389 179 100 17,490 16,652 (67) (1,312) Shareholders’ Shareholders‘ ∆ in AFS 4Q 2010 ∆ Currency ∆ Cash Flow Other Shareholders’ Equity FY09 Equity 9M10 Reserve Net Result Translation Hedge Equity FY10 Reserve Reserve Change in AFS reserve (Euro m) 1,128 4 64 (1,381) -184 AFS Reserve Impact Equity Impact Bond Other AFS Reserve 9M10 Investments Investments FY10Assicurazioni Generali Group – FY 2010 results
  • 80. IV. BACK UPSolvency I update 80(Euro bn) Required margin Available margin 142%(1) Main drivers of change 140%(1) Available margin Consolidated result: +2.0 23.9 Proposed dividends: -0.8 23.6 Intesa Vita divestiture -0.6 16.9 Financial markets and other elements: -0.9 16.8 Required Margin Intesa Vita divestiture -0.7 Increase in required margin due to +0.6 strong life business growth: FY09 FY10(1) Including off balance sheet unrealized gains on real estate, 8%pts of which subject to authorities’ authorizationAssicurazioni Generali Group – FY 2010 results
  • 81. IV. BACK UPStress tests on Solvency I and Shareholders’ equity 81 Impact on proforma solvency I ratio Impact on FY10 Shareholders’ equity (Euro (%) bn) Total ratio FY10 140 (1) (1) Equities -30% 127 Equities -30% (2.1) Interest rate +100bps 128 Interest rate +100bps (2.0) Interest rate -100bps 153 Interest rate -100bps 2.0 Credit spread +100bps 135 Credit spread +100bps (0.9) Real estate -10% 132 (1) Before hedging impactAssicurazioni Generali Group – FY 2010 results
  • 82. IV. BACK UP Total comprehensive income(1) 82(Euro m) 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 +3,000 m 1,916 459 1,033 794 1,308 (644) (245) (178) 181 (1,031) (505) (1,010) -3,000 m 1Q08 1H08 9M08 FY08 1Q09 1H09 9M09 FY09 1Q10 1H10 9M10 FY10 (1,031) (1,536) (1,354) (2,365) (178) 616 2,532 2,990 1,308 1,063 2,096 1,452 (1) For the definitions refer to the related section within the backup Assicurazioni Generali Group – FY 2010 results
  • 83. IV. BACK UPAFS reserve breakdown 83 (Euro m) FY08 FY09 FY10 Fixed income instruments (333) 225 (562) Government 446 281 (396) Corporate (779) (56) (166) Equity (621) 475 277 Investment funds and other (152) 29 101 TOTAL (1,106) 730 (184)Assicurazioni Generali Group – FY 2010 results
  • 84. IV. BACK UPFinancial debt schedule 84Financial debt breakdown by expiry date/call date (Euro m) 2,500 2,000 1,500 1,000 500 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2024 2026 Bonds Hybrid Subordinated Senior Loans Assicurazioni Generali Group – FY 2010 results
  • 85. IV. BACK UPFY10 technical reserves 85 (Euro m) Traditional Linked TOTAL Life net technical reserves(1) Italy 77,088 6,283 83,371 France 66,843 15,150 81,993 Germany 72,289 12,449 84,738 CEE 5,597 1,318 6,915 GROUP TOTAL 262,893 50,455 313,348(1) Including investment contracts for Euro 15,371 million (Euro m) Motor Non Motor TOTAL P&C net technical reserves Italy 4,939 6,910 11,848 France 2,074 3,140 5,214 Germany 1,806 2,278 4,084 CEE 1,219 782 2,001 GROUP TOTAL 13,475 16,761 30,236Assicurazioni Generali Group – FY 2010 results
  • 86. IV. BACK UPOperating ratio on investments(1) 86 Life operating ratio on investments (%) FY09 (%) FY10 (%) (%pts.) Italy 1.31 1.44 +0.13 France 0.66 0.74 +0.09 Germany 0.32 0.43 +0.11 CEE 4.82 2.51 -2.31 GROUP TOTAL 0.89 0.97 +0.09 P&C operating ratio on investments (%) FY09 (%) FY10 (%) (%pts.) Italy 0.44 1.63 +1.19 France 4.64 2.78 -1.86 Germany 4.29 5.01 +0.72 CEE 11.90 6.82 -5.08 GROUP TOTAL 3.58 3.07 -0.52 (1) For the definitions refer to the related section within the backupAssicurazioni Generali Group – FY 2010 results
  • 87. IV. BACK UPNumber of shares(1) 87 Ordinary Own Shares Shares issued shares outstanding (1) (2) (1-2) Weighted number of shares outstanding in year ending 12.31.2009 1,414,072,429 shares outstanding at 12.31.2009 1,556,864,483 16,031,760 1,540,832,723 Capital increase - - - Stock grant plan - - - Exercise of stock options 8,800 - 8,800 Generali shares purchase - 2,106 (2,106) Change in scope - (34,420) 34,420 shares outstanding at 12.31.2010 1,556,873,283 15,999,446 1,540,873,837 Weighted number of shares outstanding in year ending 12.31.2010 1,540,850,443 Potential (dilutive) shares: Stock options - - - Weighted number of shares outstanding in year ending 12.31.2010 adjusted for the effects of all dilutive potential ordinary shares. 1,540,850,443 Weighted number of shares outstanding in year ending 12.31.2009 adjusted for the effects of all dilutive potential ordinary shares. 1,414,072,429 (1) Calculation based on IAS 33Assicurazioni Generali Group – FY 2010 results
  • 88. IV. BACK UPPer share(1) indicators 88 (Euro) FY10 Earnings per share(1) 1.10 Dividend per share 0.45 Book Value per share(2) 11.4 ANAV per share(2) 8.4 Embedded Value per share(2) 17.5 (1) Calculated on the basis of weighted shares outstanding during 2010 (1,540,850,443) (2) Calculated on the basis of shares outstanding at 31.12.2010 (1,540,873,837)Assicurazioni Generali Group – FY 2010 results
  • 89. Agenda 89 IV. Backup P&L Balance sheet Life Capital Sustainability DefinitionsAssicurazioni Generali Group – FY 2010 results
  • 90. IV. BACK UPLife EV roll-forward 90(Euro m) 1,426 ( 70 ) ( 3,431 ) 1,050 468 24,638 313 23,927 23,683 488 Of which -3.0 bn due to the extraordinary widening of the spreads between government bonds and swap rates, together with the correlated drop of equity market in Italy EV FY09 Model Perimeter, Adjusted Expected Operating Economic Capital EV FY10 changes EV FY09 NBV contribution variance FX variance flow Life & health embedded value earnings (Euro m) Return on embedded value Adjusted embedded value FY09 24,638 -4.2% Life & health RoEV Embedded value earnings -1,024 Life & health Normalised EV earnings (1) 2,421 9.8% Normalised RoEV(1) Life normalised EV earnings defined as NBV + Expected contribution + Operating variance excluding extraordinary expenses (-14 m)Assicurazioni Generali Group – FY 2010 results
  • 91. IV. BACK UPFY10 Life Embedded Value Sensitivity 91 Life Embedded Value Euro 23,927 m (%) Risk Free Rate +100bps +4.2 Risk Free Rate -100bps -8.0 Equity +10% +4.0 Equity -10% -4.3 Zero Liquidity Premium -5.5 Equity Implied Volatility +25% -1.7 Swaption Implied Volatility +25% -1.3Assicurazioni Generali Group – FY 2010 results
  • 92. IV. BACK UPLife new business: APE 92(Euro m) APE Annual Premiums Single Premiums Like for like Like for like Like for like 2009 2010 2009 2010 2009 2010Italy 1,704 1,766 +3.6% 1,102 1,091 -1.0% 6,022 6,753 +12.1%Germany 984 976 -0.9% 838 709 -15.4% 1,460 2,665 +82.5%France 1,225 1,172 -4.4% 254 307 +20.6% 9,712 8,649 -11.0%CEE 158 172 +5.3% 134 139 +0.1% 237 330 +34.9%RoE 740 792 +4.0% 364 442 +15.3% 3,758 3,506 -7.5% Austria 83 97 +8.7% 67 72 +2.6% 161 252 +31.1% Spain 128 118 -7.3% 50 55 +9.7% 778 636 -18.2% Switzerland 90 96 -10.5% 83 89 -9.7% 73 69 -20.1%RoW 377 455 +7.3% 318 364 +1.7% 586 908 +37.8%Total 5,188 5,333 +1.3% 3,011 3,052 -0.7% 21,775 22,810 +4.2%Assicurazioni Generali Group – FY 2010 results
  • 93. IV. BACK UP Life new business: Value and margins 93(Euro m) NBV Margins on APE Margins on PVNBP Historical Like for like 2009 2010 2009 2010 ∆ pts 2009 2010 ∆ ptsItaly 486 326 -33.0% -33.0% 28.5% 18.4% -10.1% 3.3% 2.2% -1.2%Germany 174 173 -0.7% -0.7% 17.7% 17.7% +0.0% 1.6% 1.7% +0.1%France 127 146 +15.5% +15.5% 10.3% 12.5% +2.2% 1.1% 1.3% +0.3%CEE 62 56 -10.1% -13.9% 39.1% 32.3% -6.8% 5.1% 4.3% -0.7%RoE 173 197 +14.2% +8.6% 23.3% 24.9% +1.6% 2.6% 3.0% +0.5% Austria 23 23 +0.2% -4.9% 27.2% 23.3% -3.9% 2.7% 2.3% -0.4% Spain 30 28 -9.1% -9.2% 23.8% 23.3% -0.5% 2.7% 2.8% +0.1% Switzerland 41 41 +0.4% -15.4% 45.2% 42.8% -2.4% 4.9% 4.0% -0.8%RoW 106 153 +43.5% +29.3% 28.2% 33.5% +5.3% 3.3% 3.6% +0.3%Total 1,128 1,050 -6.9% -8.8% 21.7% 19.7% -2.0% 2.3% 2.2% -0.1% Assicurazioni Generali Group – FY 2010 results
  • 94. IV. BACK UPValue of Asset Gathering 94 Value of In-force business (Euro m) Value of new business (Euro m) 1,075 983 +9.4% 168 -4.3% 161 2009 2010 2009 2010 2009 2010 % 2009 2010 % Assets under New inflows management (Euro bn) 53.9 62.7 +16.3% (Euro bn) 13.7 17.2 +25.4% Value of business In- Value of new business force in % of AUM 1.82 1.72 -10bp in % of New inflows 1.23 0.94 -29bp Retail asset gathering business relates to the groups two primary asset gatherers, BSI and Banca Generali. The value of in-force asset gathering business in BSI is the present value of the projected stream of future after-tax profits that are expected to be generated by the private banking arrangements which are in force at the valuation date. For Banca Generali, the value of in-force business is the present value of the projected stream of distribution margins and fee income, net of costs, that are expected to arise in Banca Generali and in the group’s asset management companies, which is associated with the retail asset management products in force at the valuation date. Note that from 2008, the value arising in Banca Generali relating to insurance business has been considered as a look through in the Life Embedded Value. New asset management business comprises the amount of new money collected, net of switches within different classes of asset management products. The value added by new business allows for the actual acquisition costs incurred, using end-year assumptions, including projected future investment returns in the year of sale. Valuation according to traditional EV methodology and reviewed by Towers Watson.Assicurazioni Generali Group – FY 2010 results
  • 95. 95 IV. Backup P&L Balance sheet Life Capital Sustainability DefinitionsAssicurazioni Generali Group – FY 2010 results
  • 96. IV. BACK UPEBS results: Risk capital diversification 96 Total diversification benefits at 33% (Euro bn) 30.6(2) Not under IM(1) 2.0 / 7% (10.0) (2) Operational 2.2 / 7% Non-Life U/W 2.3 / 8% Life U/W 3.3 / 11% 33% 20.6(2) Credit & 5.8 / 19% Currency Interest rate 4.3 / 14% Real estate 3.7/ 12% Equity 6.9 / 23% Group RAC at 99.95% Group diversification Group RAC at 99.95% before diversification (1) Not under Internal Model refers to entities currently based on previous top-down model (2) Based on preliminary figuresAssicurazioni Generali Group – FY 2010 results
  • 97. IV. BACK UPFY10 reconciliation of life & health MCEV with group EV (EBS basis) 97 Life & Health (Euro m) Other GROUP MCEV IFRS equity 12,488 5,002 17,490 MTM of Assets 3,875 3,165 7,040 Goodwill (292) (6,700) (6,992) Life DAC, VoBA and other adjustments (2,596) (913) (3,509) MTM of Debt and Employee Benefit Plans (52) 66 14 Fair Value adj, of P&C Liabilities - 1,347 1,347 Unrealised Gains included in L&H VIF (2,447) (0) (2,447) Adjusted Net Asset Value 10,976 1,966 12,942 In-force value (Life & AuM) 12,951 1,075 14,026 Embedded Value (EBS basis) 23,927 3,041 26,968Assicurazioni Generali Group – FY 2010 results
  • 98. 98 IV. Backup P&L Balance sheet Life Capital Sustainability DefinitionsAssicurazioni Generali Group – FY 2010 results
  • 99. IV. BACK UPGenerali in the Ethical Indices 99 • ECPI Ethical Index Euro • ECPI Ethical Index Global • FTSE ECPI Italia SRI: Leaders Index; Benchmarck IndexAssicurazioni Generali Group – FY 2010 results
  • 100. IV. BACK UPNumber of employees 100Number of employees 2010 employees by area (%) Rest of World Italy +0.1% 16.9% 19.9% 84,063 85,322 85,368 Rest of Europe 18.0% CEE 16.9% 2008 2009 2010 Germany France 17.9% 10.4%Assicurazioni Generali Group – FY 2010 results
  • 101. IV. BACK UPTraining 101 2010 average hours of training per capitaAverage hours of training per capita breakdown +22.9% 49.5 50.2 43.6 43.6 39.6 38.0 36.9 37.2 35.5 21.3 2008 2009 2010 Italy France Germany CEE Rest of Rest of Generali Europe World GroupAssicurazioni Generali Group – FY 2010 results
  • 102. IV. BACK UPAllocation to the Community 102Allocation to the community (Euro m) 2010 Allocation to the community by area Rest of World Italy +10.4% 6.9% 36.2% 45.5 41.2 38.1 Rest of Europe 19.1% CEE 11.5% 2008 2009 2010 Germany France 21.0% 5.2%Assicurazioni Generali Group – FY 2010 results
  • 103. IV. BACK UPEnvironmental data(1) 103 2009 2010 Change Per capita electrical energy consumption (kWh) 4,989.5 5,150.8 +3.2% Renewable sources quota 27.3% 47.9% - Paper consumption (quintals) 70,321.0 72,267.4 +2.8% Environmentally friendly paper quota 31.5% 40.3% - Per capita water consumption 18.9 18.8 -0.3% (cubic meters) Selective waste collection quota 69.5% 76.3% - (1) The data refers to the Environmental Management System (EMS) of the Generali Group. At present, a set of buildings in six countries (Italy, Austria, France, Germany, Spain and Switzerland) is included in the EMS.Assicurazioni Generali Group – FY 2010 results
  • 104. 104 IV. Backup P&L Balance sheet Life Capital Sustainability DefinitionsAssicurazioni Generali Group – FY 2010 results
  • 105. IV. BACK UPDefinitions: P&L and balance sheet (1/2) 105 Investments Returns are calculated on quarterly average asset base at IFRS book value and are defined as follows: Current return: interest, dividends and similar income Total P&L return: = current return + harvesting return (net realized gains, net impairments and net unrealized gains reported in P&L), net of investment expenses Comprehensive return: i) for fair value investment (AFS, FVthPL) = current return + total change in fair value, net of investment expenses; ii) for investment at amortised cost (Real estates, loans, HtM) = Total P&L return Investment returns for Life segment income from bonds and loans issued by Group companies and investments in consolidated subsidiaries backing policyholders’ liabilities. Life Net Inflows Premiums inflows in the period less benefits paid to the policyholders. It does not include revaluation of mathematical reserves Life Operating Result consists of the following elements: i) "Technical Margin" includes loadings, risk result, surrender result; it is gross of acquisition and administration costs ii) "Investment Result" includes interests and dividends, interest expenses on operating debt, G/L on foreign currency and investment expenses, net of policyholder benefits; it includes also operating realised and unrealised G/L, net of policyholder benefits iii) "Expenses" include acquisition and administration costs and other net operating items (it does not consider any loading charged to policyholders) “Operating ratio on Investments” is calculated as Operating result on the average of Investments at book value Like for Like changes calculated considering equivalent exchange rates and scope of consolidation Operating Result Operating result of life, P&C and financial segments, before holding expenses and consolidation adjustmentsAssicurazioni Generali Group – FY 2010 results
  • 106. IV. BACK UPDefinitions: P&L and balance sheet (2/2) 106 Own Investments does not include unit/index linked investments and consist of the following asset class (*): i) Fixed income instruments include quoted and unquoted bonds, loans including deposits under reinsurance business accepted, term deposits with credit institutions; ii) Equity-like instruments include quoted and unquoted equities and alternative investments; iii) Real estate investments excluding own used properties; iv) Cash and cash equivalent including Repo and Reverse repo v) Other investments include investments in non-consolidated subsidiaries, derivatives, receivables from banks or customers (*) Investment fund units are allocated to each asset class on a look through basis, Own investments for life segment include bonds and loans issued by Group companies and investments in consolidated subsidiaries backing policyholders’ liabilities. They are net of consolidation adjustments. P&C Operating Result consists of the following elements: I) "Technical Result" is net of acquisition and administration costs ii) "Investment Result" includes interests and dividends, interest expenses on operating debt and investment expenses iii) “Other" includes other net operating items not considered in Technical Result and in Investment Result “Operating ratio on Investments” is calculated as Operating result on the average of Investments at book value Total Comprehensive Change in shareholders’ equity during the period related to income and expenses recognized in profit or loss Income or directly in shareholders’ equity resulting from transactions and events other than transactions with equity Owners. Total Operating Result Operating result of life, P&C and financial segments, after holding expenses and consolidation adjustments. Operating result is a non-GAAP indicator and may differ from similar measure presented by other companies. Management uses this non-GAAP measure as key indicator in assessing Generali’s performance and believes that the presentation of these KPI provide useful and relevant informations to shareholders and users on Generali’s performance. Please refer to the ‘Methodological note on alternative performance measures’ included in the Management Report for details on operating result methodology.”Assicurazioni Generali Group – FY 2010 results
  • 107. IV. BACK UPDefinitions: Life EV (1/2) 107 Adjusted Net Asset corresponds to the consolidated market value of the assets backing the shareholders’ funds, net of taxes and Value (ANAV) policyholder interests on any unrealised capital gains and losses, after the elimination of goodwill and DAC, net of other adjustments required to maintain consistency with the valuation of the in-force business, and before the payment of dividends from profits of the year. Annual Premium is defined as new business annualised regular premiums plus 10% of single premiums. Equivalent (APE) Embedded Value correspond to the difference between the closing and the opening EV, excluding adjustments to opening EV Earnings and capital movements. Internal Rate of Return is defined as the rate that makes equal to zero the present value of new business distributable profits (IRR) (therefore allowing for new business first year strain and required capital absorption) calculated using “real- world” best estimate assumptions. Life Embedded Value is an actuarially determined estimate of the value of a company, excluding any value attributable to future new (EV) business. With reference to the covered business, and to the relevant consolidation perimeter (i.e. the operating life, health and pension companies of the group), the EV is equal to the sum of the Adjusted Net Asset Value and the Value In-Force.Assicurazioni Generali Group – FY 2010 results
  • 108. IV. BACK UPDefinitions: Life EV (2/2) 108 New Business Value is the present value, at the point of sale, of the projected stream of after tax industrial profits expected to be (NBV) generated by the covered new business written in the year, taking into account the actual acquisition costs incurred in the year of sale, after allowance for: the cost of financial guarantees and options granted to policyholders; the frictional costs of setting up and holding the required capital; the cost of non hedgeable risks. NBV is calculated according to year-end economic and operating assumptions. Normalised Embedded correspond to Embedded Value Earnings, net of economic variances and extraordinary expenses. Value Earnings Payback Period is the period of time (in years, from issue date) required to recover the cost of the initial investment in new business (i.e. new business first year strain and required capital absorption) calculated by means of a deterministic projection based on “real-world” best estimate assumptions. Present Value of New is defined as the present value of the future new business premiums, calculated using year-end assumptions Business Premiums for lapses and other exits and discounted to point of sale using the reference rates. (PVNBP) Value In-Force (VIF) is the present value of the projected stream of after tax industrial profits that are expected to be generated by the covered business in force at the valuation date, after allowance for: the cost of financial guarantees and options granted to policyholders; the frictional costs of holding the required capital; the cost of non hedgeable risks.Assicurazioni Generali Group – FY 2010 results
  • 109. IV. BACK UPDefinitions: Group EV 109 Available Capital (AC) It is internally defined as the available financial resources covering the totality of risks of an insurance company, business unit or group. It is equal to the sum of Embedded Value and Hybrid Capital (Subordinated Debt). It corresponds to the Basic own funds. Economic Balance I) General definition: Balance sheet statement based on one of those accounting approaches using market- Sheet (EBS) consistent values for all current assets and current obligations relating to in-force business, including off- balance sheet items. II) Within the Generali Group: common Group framework (methodology, models and tools) to assess and report market (or fair) values of all assets and liabilities, of available capital and risk capital, both at entity and Group level. Embedded Value (EV) An estimate of the value to shareholders of a book of insurance business at a given date, consisting of the following components: Free surplus allocated to the covered business; Required capital, less the cost of holding required capital; Value of future shareholder cash flows from in-force covered business. The embedded value concept is applicable to general insurance, although it is more commonly encountered in the life and health context. The value of renewals of existing contracts is included, but the value of future new contracts is excluded. Normalised RoEV Annualised and normalised earnings on opening Embedded Value Risk Capital or Risk Within the EBS framework of the Generali Group, it is the capital necessary to absorb the maximum loss of adjusted capital (RAC) available capital, identified according to a 1-year value-at-risk approach, at a specified confidence level consistent with the risk appetite (defined at 99,5% for Solvency II purposes and at higher level for Group internal and rating purposes). It corresponds to the SCR calculated with the internal model. RoEV Embedded Value earnings on opening Embedded ValueAssicurazioni Generali Group – FY 2010 results
  • 110. What’s next 110 April 30, 2011 - General Shareholders’ Meeting May 12, 2011 - 1Q 2011 Results August 3, 2011 - 1H 2011 Results November 9, 2011 - 9M 2011 ResultsAssicurazioni Generali Group – FY 2010 results
  • 111. Investor Relations Team 111 Paola Buratti (Tel.: +39-040-671157) Head of Investor Relations Email: paola_buratti@generali.com Stefano Burrino (Tel.: +39-040-671202) Email: stefano_burrino@generali.com Emanuele Marciante (Tel.: +39-040-671347) Assicurazioni Generali Email: emanuele_marciante@generali.com P.za Duca degli Abruzzi 2 34132 Trieste, Italy Veronica Cherini (Tel.: +39-040-671488) Email: veronica_cherini@generali.com Fax: +39 040 671338 e-mail: generali_ir@generali.com Rodolfo Svara (Tel.: +39-040-671823) Email: rodolfo_svara@generali.com www.generali.com Marta Porczynska (Tel.: +39-040-671402) IR Events Email: marta_porczynska@generali.comAssicurazioni Generali Group – FY 2010 results
  • 112. Disclaimer 112 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 – FY 2010 results
  • 113. Generali Group2010 Results Milan, March xxx, 2010 March 16, 2011 March 2006