Generali Group 2013 First Half Results
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Generali Group 2013 First Half Results Generali Group 2013 First Half Results Presentation Transcript

  • March 2006 August 1, 2013 Generali Group 2013 First-Half Results
  • 2 Assicurazioni Generali Group – 1H 2013 results Agenda III. Final remarks II. Group Financials Page 3 Page 9 Page 31 IV. Backup Page 33 I. 1H 2013 results overview
  • 3 Assicurazioni Generali Group – 1H 2013 results Agenda I. 1H 2013 results overview 1H 2013 results at a glance Following the announcement of the sale of related stake, Mexico and US Life RE qualified as a non-current asset held for sale and discontinued operations. Like for like comparisons are adjusted for the disposal of Mexico and US Life Re. The change of written premiums, net cash inflow, APE and NBV is on equivalent terms (on equivalent exchange rates and consolidation area). The change of operating results is calculated excluding Mexico and US Life Re from the comparative period. Embedded Value metrics and Economic solvency at 1H13 are based on the assumption that the disposal of Mexico and US Life RE has already been finalized. View slide
  • 4 Assicurazioni Generali Group – 1H 2013 results I. OVERVIEW Net result (Euro m) Solvency I ratio (%) Operating result(1) (Euro m) 1H12 1H13 Shareholders’ equity (Euro m) 1,878 2,014 2,270 2,257 2,378 1H111H101H09 1H12 1H13 504 873 806 842 1,081 1H111H101H09 One of the best first halves in 5 years 1H12 1H13 11,612 17,146 17,231 17,359 18,433 1H111H101H09 1H12 1H13 125 132 133 130 139 1H111H101H09 (1) Operating profit pro-forma (2) Net income excluding Migdal only (Mexico & US Life Re included in discontinued operations) (2) View slide
  • 5Half a year into the plan – A strong start to a multi-year turnaround Assicurazioni Generali Group – 1H 2013 results January February March April May June July Creation of Generali Italia Investor Day, London Completed acquisition of GPH 1st tranche Placement of 12% Banca Generali Launch of Corporate & Commercial unit Sale of US Life Re to SCOR Sale of minority stake in Mexico to Banorte German minority squeeze-out & treasury share sale launched Much has been delivered…  More than 50% of Euro 4 bn disposal target reached  Generali Italia created – completion of remaining legal entity mergers by year end  Corporate & Commercial unit launched  Further streamlining achieved: squeeze-out of German minorities  New business unit planning & performance management process implemented … but still much to achieve  Deliver remaining disposals (BSI ongoing)  Use of proceeds to reduce debt & fund GPH  Enhance cash generation from earnings to improve dividends  Execute operational restructuring of Italy  Deliver on Euro 600 m cost program  Ongoing excess liquidity reduction in asset portfolios GPH deal agreed I. OVERVIEW Group Management Committee (GMC) fully formed
  • 6 Operation Expected closing date Cash in (gross of tax, Euro bn) Realized gain (gross of tax, Euro bn) Exit multiple (historic P/E) Solvency I impact Migdal 4Q12 0.7 n.m. 17x +2%pts. Total 2012 0.7 +2%pts. Banca Generali (12% placement) 2Q13 0.2 0.1(1) 12x +1%pts. Generali USA Life Re 4Q13 0.7 0.1 15x +1%pts. Mexico 4Q13 0.7 0.5 18x(2) +4%pts. Total 2013 1.6 0.8 +6%pts. CUMULATIVE TOTAL 2.3 0.8 +9%pts. Assicurazioni Generali Group – 1H 2013 results Summary of disposals I. OVERVIEW (1) The impact increased the Shareholders Equity (2) Only for Seguros Banorte Generali. Pensiones Banorte Generali sold for 4.9x 2012 Shareholders Equity Figures may not sum up for roundings
  • 7  Total liquidity(1) has been reduced by Euro 7.5 bn (33%) during 1H13 using a moderate approach due to market conditions Excess liquidity: Reinvestment actions Total Liquidity(1) Trend (Euro bn) Main Actions  Euro 3 bn invested in Third Party best in class funds  Private placement of corporate bonds (France and Germany mainly)  Long term government bond exposure has been increased  BTPs have been reduced by 5%  Cash has been reinvested in 2Q13 at an average yield of 3.5% Liquidity will be further deployed, over next 6-12 months to be in line with market (i.e. 2-3% of investments), according to available opportunities 0 5 10 15 20 25 FY11 1H12 FY12 1Q13 1H13 I. OVERVIEW (1) Cash & cash equivalent instruments, including time deposits with maturity within 6 months Assicurazioni Generali Group – 1H 2013 results
  • 8 Assicurazioni Generali Group – 1H 2013 results Generali: Our vision for 2015 Reshaped approach to maximise value creation Focused on core insurance business, with greater contribution from P&C Stronger capital position and disciplined balance sheet management Superior customer acquisition and retention, with focus on retail and affluent space Consistent technical excellence and tight control of costs The mission is to deliver top quartile shareholder returns and profitability 1 2 3 4 I. OVERVIEW
  • 9 Assicurazioni Generali Group – 1H 2013 results Agenda II. Group Financials Profit & loss review Life, P&C and financial segment profitability Balance sheet and capital
  • 10 Assicurazioni Generali Group – 1H 2013 results Revenue development by segment II. GROUP FINANCIALS (1) Including investment contracts (Euro 1,632 m in 1H13, Euro 1,637 m in 1H12) (2) On like for like basis 1H12 1H12 excluding Mexico & US Life Re 1H13 Like for like ∆ Gross written premiums 35,648 34,620 34,836 +1.7% Life(1) 23,230 22,486 23,120 +2.2% P&C 12,418 12,135 11,715 +0.8% (Euro m) 35,648 34,836 1H131H12 +1.7%(2) Gross written premiums (Euro m) 34,620 1,028 Contribution from US Life Reassurance and Mexican operations
  • 11 Assicurazioni Generali Group – 1H 2013 results Consolidation adjustments Total operating result Financial services operating result P&C operating result Operating holding expenses Life operating result 909 272 -168 -116 755 211 -148 -126 2,378 1,481 1,651 2,343 1H13 total operating result (Euro m) Operating result by segment 1H13 1H12 -7.9% +5.3% +28.6% +24.8% +13.4% -7.0% Like for like  II. GROUP FINANCIALS 728 1,591 Contribution from US Life Reassurance and Mexican operations(1) (1) The contribution for 1H12 life operating result was Euro 60 m, for 1H12 P&C operating result was Euro 27 m and for total operating result was Euro 86 m 2,257
  • 12 Assicurazioni Generali Group – 1H 2013 results Focus on non operating result 1H12 1H13 Like for like  Non operating investment income (286) 5 n.m. Non operating holding expenses (329) (397) +20.7% Of which: interest costs (327) (375) +14.7% Net other Non operating expenses (161) (198) +23.5% Of which: VOBA amortization (92) (88) -4.3% Total Non operating result (776) (590) -23.9% II. GROUP FINANCIALS 5 (286) (71) 136 226 Non operating investment income (Euro m) 1H131H12 Δ Euro m Net realised gains Net impair- ments Fair Value thr. P&L 1H13 208 (163) (40) 1H12 (18) (300) 32 Δ(1) n.m. -45.7% n.m. (Euro m) (1) On like for like basis
  • 13 Assicurazioni Generali Group – 1H 2013 results 1H12 1H13  Total operating result 2,343 2,378 +5.3%(1) Non operating result (776) (590) -23.9%(1) Consolidated result before taxes and minorities 1,568 1,787 +20.7%(1) Income taxes (582) (619) +6.3% Result for discontinued operations 27 47 +73.2% Minorities (171) (135) -21.2% Net result 842 1,081 +28.4% II. GROUP FINANCIALS Net income (Euro m) (1) On like for like basis 842 1,081 +28.4% 1H131H12 From operating result to net result (Euro m)
  • 14 Assicurazioni Generali Group – 1H 2013 results Agenda II. Group Financials Profit & loss review Life, P&C and financial segment profitability Balance sheet and capital
  • 15 Assicurazioni Generali Group – 1H 2013 results Life business development Gross written premiums (Euro m) 23,230 23,120 +2.2%(1) II. GROUP FINANCIALS 1H12 1H13 (1) On like for like basis (2) Including liabilities related to investment contracts Country 1H12 1H13 Italy (602) 486 France (1,688) 95 Germany 2,118 2,893 CEE 215 270 RoE (841) 850 RoW 420 316 TOTAL (378) 4,911 Net inflows by country (Euro m)  Italy: positive development thanks to significant decrease of maturities, and partially of surrender  France: positive trend thanks to the drop of surrenders  Germany: confirms good positive trend thanks to the good development of volumes  Rest of Europe: 1H12 negatively influenced by the decision not to renew a large Group contract with low profitability Net technical reserves(2) (Euro bn) 1H13FY12 Traditional Unit Linked +2.5%(1) Traditional Unit linked 260.2 261.9 53.6 56.3 2.71.6313.8 318.2
  • 16 Assicurazioni Generali Group – 1H 2013 results Life profitability – Operating result (Euro m) 1H12 1H13  Like for like Technical Margin 2,988 2,867 -1.0% Investment Result 1,151 1,054 -6.6% Expenses (2,489) (2,440) +0.3% Operating Result 1,651 1,481 -7.0% Life operating profitability hit by low interest rate environment Life Operating Result by driver Life operating ratio on Investments 0.54% 0.45% II. GROUP FINANCIALS Life operating result 1H12 Δ Technical margin Δ Investment result Δ Expenses Life operating result 1H13 1,651 1,48149 (121) (98)
  • 17 Assicurazioni Generali Group – 1H 2013 results Life investment strategy and yields Current return(1) Fixed income Equity Real Estate 1H12 1H13 1H12 1H13 1H12 1H13 Euro m 4,671 4,543 299 311 349 345 % 2.2 1.9 2.3 2.5 3.6 3.5 43.0% 42.8% 33.9% 34.7% 8.4% 8.6% 4.5% 4.5% 3.5% 3.6% 4.7% 3.7% 2.1% 2.0% FY12 1H13 Other Cash & cash equivalent Real estate Equity Other fixed income Corporate bonds Government bonds Life segment own investments (%) Euro 277.0 bn Euro 274.9 bn II. GROUP FINANCIALS  Current profitability remains affected by a low reinvestment yield environment  Cash has been deployed in more profitable investments  Increased exposure to corporate bonds to improve the overall return of the investment portfolio +0.6%(1) (1) On like for like basis
  • 18Life new business value and profitability II. GROUP FINANCIALS  Positive development of APE (+1.3% on a like for like basis), with the increase of protection and unit-linked business  NBM at 20.6%, improving from year-end thanks to better product mix and rigorous pricing, offsetting the impact of the exit of profitable US and Mexico business  Solid NBV at Euro 473 m (-1.3%) (Euro m) APE Margin on APE (NBM) NBV 1H12 1H13 Like for like  1H12 FY12 1H13 1H12 1H13 Like for like  Italy 790 860 8.9% 23.8% 17.2% 17.3% 188 149 -20.1% France 581 409 -29.6% 12.5% 12.8% 14.3% 73 59 -19.7% Germany 400 549 37.2% 20.7% 20.2% 23.4% 83 128 54.6% CEE 74 84 -17.5% 35.0% 31.4% 45.7% 26 38 5.2% RoE 322 315 -1.7% 24.9% 20.8% 24.6% 80 77 -2.7% RoW 112 86 8.4% 38.2% 44.1% 25.7% 43 22 8.0% Total 2,280 2,303 1.3% 21.6% 19.2% 20.6% 493 473 -1.3% 1H13 amounts include the contributions from Mexico & US Life Re only for 1Q13. Such contributions, as well as other perimeter and FX rates changes, are neutralized in the like for like variation Assicurazioni Generali Group – 1H 2013 results
  • 19 Assicurazioni Generali Group – 1H 2013 results P&C gross written premiums (Euro m) 1H12 1H13 Like for like  Italy 3,582 3,441 -3.9% France 2,240 1,947 -4.2% Germany 1,987 2,070 +4.2% CEE 1,228 1,001 -1.3% RoE 2,579 2,600 +1.2% RoW 802 656 +41.4% Total 12,418 11,715 +0.8% II. GROUP FINANCIALS (1) On like for like basis Gross written premiums (Euro m) 12,418 11,715 1H131H12 +0.8%(1)  Positive performance of Motor lines, thanks in particular to the excellent performance in Germany  Non Motor lines remained stable, despite negative trends in Italy and France that offset the good performances in Germany and Eastern Europe Countries  Commercial under pressure mainly in Spain and Italy, due to the difficult economic environment
  • 20 Assicurazioni Generali Group – 1H 2013 results P&C profitability – Operating result (Euro m) 1H12 1H13  like for like Technical Result 272 508 +99.4% Investment Result 560 517 -6.0% Other (77) (117) +52.1% Operating Result 755 909 +24.8% P&C Operating Result by driver P&C operating ratio on Investments 2.11% 2.41% Confirmed strong P&C operating profitability driven by excellent technical results II. GROUP FINANCIALS P&C operating result 1H12 Δ Technical result Δ Investment result Δ Other P&C Operating result 1H13 755 909 (43) (40) 236
  • 21 Assicurazioni Generali Group – 1H 2013 results (0.3) (2.2) P&C profitability – Net combined ratio (1/2) 1H131H12 Combined ratio (%) Combined ratio by country(%) 94.7%97.1% Loss ratio Expense ratio 1H12 1H13 ∆ Italy 99.7% 90.8% -8.9%pts. France 98.4% 97.0% -1.4%pts. Germany 95.8% 96.0% +0.2%pts. CEE 87.5% 90.6% +3.1%pts. RoE 96.1% 95.8% -0.4%pts. RoW 96.9% 106.2% +9.3%pts. Total 97.1% 94.7% -2.4%pts. -2.4%pts.  Expense ratio  Loss ratio 27.4 67.3 27.6 69.5 II. GROUP FINANCIALS
  • 22P&C profitability – Net combined ratio (2/2) II. GROUP FINANCIALS Loss ratio (%) Acq. costs Adm. costs  Current loss ratio still decreasing due to a continuous improvement in Motor frequency (particularly Italy and Germany)  Positive development of prior years confirmed  NAT Cat affecting Q2 2013 6.0 21.8 0.2 -0.55.8 21.4 1H13 69.8 2.1 -4.6 67.3 1H12 70.6 2.4 -3.5 69.5 69.5 67.3 -0.8 -0.3 -1.1 27.4 Expense ratio (%) Δ%pts 27.6 (1) Excluding natural catastrophes -2.2%pts -0.3%pts 1H131H12 Δ Admin. Δ Acq. 1H131H12 Current year(1) NAT CAT Prior years Assicurazioni Generali Group – 1H 2013 results
  • 23 Assicurazioni Generali Group – 1H 2013 results P&C investment strategy and yields P&C segment own investments (%) Euro 37.9 bn Euro 37.3 bn Current return(1) Fixed income Equity Real Estate 1H12 1H13 1H12 1H13 1H12 1H13 Euro m 469 429 54 58 222 186 % 2.0 1.7 1.8 2.2 4.1 3.5 29.7% 30.1% 29.2% 31.5% 10.7% 7.9% 6.9% 7.2% 13.9% 14.1% 8.0% 7.7% 1.6% 1.4% FY12 1H13 Other Cash & cash equivalent Real estate Equity Other fixed income Corporate bonds Government bonds II. GROUP FINANCIALS  Solid liquidity buffer ready to be deployed in attractive investment opportunities  Increased exposure to corporate bonds to improve the overall return of the investment portfolio  Current profitability remains affected by a low reinvestment yield environment -0.6%(1) (1) On like for like basis
  • 24 Assicurazioni Generali Group – 1H 2013 results 67.4 64.2 Financial segment Operating result (Euro m) Third party AUM(1) (Euro bn) Net fees and commissions (Euro m) 211 272 1H131H12 +28.6% 415 442 1H131H12 +6.6% 96.4 98.5 1H13FY12 +2.2% -3.2%pts 1H131H12 Cost/income ratio (%) II. GROUP FINANCIALS (1) Including only third party AUM related to financial segment companies (1) On like for like basis
  • 25 Assicurazioni Generali Group – 1H 2013 results Agenda II. Group Financials Profit & loss review Life, P&C and financial segment profitability Balance sheet and capital
  • 26 Assicurazioni Generali Group – 1H 2013 results 19,828 (815) 19,013 18,433 (652) 1,081 (124) (24) (597)(311) IFRS Shareholders’ equity roll forward Shareholders’ Equity FY12 Impact from revised IAS 19 01/01/2013 Δ in AFS Reserve 1H 2013 Net Result Δ Currency Translation Reserve Δ Cash Flow Hedge Reserve Dividend paid Other (including Euro 477 m GPH 25% minorities buyout) Shareholders’ Equity 1H13 -3.1% II. GROUP FINANCIALS (Euro m) Change in AFS reserve (Euro m) 2,591 (19) 1,938(15) (619) AFS Reserve FY12 Impact Equity Investments Impact Bond Investments Other AFS Reserve 1H13
  • 27 Assicurazioni Generali Group – 1H 2013 results 17.9 17.9 18.1 26.9 26.1 25.1 Solvency I update II. GROUP FINANCIALS Required margin Available margin 01/01/13FY12 145%(1) (Euro bn) 1H13 139% Solvency I ratio (1) FY12 shareholders’ equity was restated including the effects of revised IAS 19 (2) Excluding disposal of Mexico & US Life Re Main drivers of changeMain drivers of change Available margin  Consolidated result:  Banca Generali shares placement:  Financial markets and other elements:  GPH 25% minorities buyout  Eligible debt Required Margin + 1.2 + 0.2 - 0.9 - 1.3 - 0.2 +0.2 150% 142%(2) at July 18
  • 28 Assicurazioni Generali Group – 1H 2013 results Leverage Debt outstanding (Euro bn) 1H13 13.2 13.1 12.7 1Q13FY12  Debt reduced by Euro 0.5 bn (maturities funded from internal resources) in 1H13  Euro 1.25 bn commitment to repurchase remainder of GPH at end 2014, but:  Majority of proceeds from Euro 4 bn disposal program still to be received  Focus on enhancing cash flow from existing business  Thus, significant scope to reduce debt, while also increasing dividends We expect a significant reduction in our debt levels by 2015 II. GROUP FINANCIALS
  • 29 Assicurazioni Generali Group – 1H 2013 results Group Embedded Value roll-forward (Euro m) (1) Including mainly disposal of Mexico & US Life Re and GPH minorities buy-out (2) For the definitions refer to the related section in the backup II. GROUP FINANCIALS 23,742 1,504 939 24,914 (960) (311) EV Official FY12 Change in Perimeter Normalised EV earnings Investment and Tax Variances Cash Dividend EV 1H13 Robust return on embedded value, mainly driven by positive combined ratio at 94.7% and Life NBV of 473 m (1) Return on Embedded Value RoEV (2)13.2% Normalised RoEV (2) 21.4% Group Embedded Value € 16.2 Group EV per share Group EV 1H13 Including +1.3 bn: increase in interest rates (VIF and P&C liab) - 0.4 bn: change in mkt value of SH assets
  • 30 19.9 Assicurazioni Generali Group – 1H 2013 results Economic Solvency II. GROUP FINANCIALS  Economic Solvency Ratio based on Group Internal Model calibrated on 1 year VaR at 99.5% confidence level Economic Solvency Ratio (1) ESR FY12 = AC FY12 (net of proposed dividend 2012 equal to 0.3 bn) divided by Risk Capital FY12 (2) Including disposal of Mexico and US Life Re Group AC Group RAC Group RAC Group AC FY12 1H13 31.9 33.3 19.9 ESR = 159%(1) ESR = 167%(2)
  • 31 Assicurazioni Generali Group – 1H 2013 results III. Final Remarks Agenda
  • 32 Assicurazioni Generali Group – 1H 2013 results Final remarks III. FINAL REMARKS Excellent underlying P&C performance Market environment still challenging for life investment margin but inflows continue on recovering trend Prioritising reinvestment of excess cash
  • 33 IV. Backup Agenda P&L Balance sheet Life Definitions Assicurazioni Generali Group – 1H 2013 results
  • 34 IV. Backup Agenda P&L Balance sheet Life Definitions Assicurazioni Generali Group – 1H 2013 results
  • 351H13 Total gross written premiums IV. BACK UP (1) Including investment contracts (2) On like for like basis Assicurazioni Generali Group – 1H 2013 results (Euro m) YoY YoY YoY % increase % increase % increase (2) (2) (2) Italy 9,822 +1.8% 28.2% 6,381 +5.1% 27.6% 3,441 -3.9% 29.4% France 6,037 -21.6% 17.3% 4,090 -27.9% 17.7% 1,947 -4.2% 16.6% Germany 10,190 +19.7% 29.3% 8,120 +24.4% 35.1% 2,070 +4.2% 17.7% CEE 1,791 -1.9% 5.1% 790 -2.6% 3.4% 1,001 -1.3% 8.5% RoE 5,626 +1.6% 16.2% 3,026 +1.9% 13.1% 2,600 +1.2% 22.2% Of which: Spain 1,278 -4.1% 3.7% 553 +3.3% 2.4% 724 -9.1% 6.2% Austria 1,393 +3.0% 4.0% 586 +3.7% 2.5% 807 +2.5% 6.9% Switzerland 981 -3.8% 2.8% 501 -8.5% 2.2% 480 +1.7% 4.1% RoW 1,370 +32.2% 3.9% 714 +24.3% 3.1% 656 +41.4% 5.6% Total 34,836 +1.7% 100.0% 23,120 +2.2% 100.0% 11,715 +0.8% 100.0% Total gross written premiums Gross life written premiums (1) Gross P&C written premiums Country GWP Weight on total GWP GWP Weight on total GWP GWP Weight on total GWP
  • 361H13 Life premiums by country and business line(1) IV. BACK UP Assicurazioni Generali Group – 1H 2013 results (1) Including investment contracts (2) On like for like basis GDP YoY % increase(2) GDP YoY % increase(2) GDP YoY % increase(2) GDP YoY % increase(2) Italy 5,869 +6.0% 117 -8.2% 227 -13.0% 6,213 +4.9% France 2,412 -43.1% 860 -3.6% 681 +65.2% 3,953 -28.7% Germany 4,291 +52.7% 2,116 +4.8% 1,712 +0.9% 8,120 +24.4% CEE 431 -11.8% 122 +9.2% 236 +13.0% 790 -2.6% RoE 1,115 +3.5% 489 +1.4% 1,409 +0.8% 3,013 +1.9% Of which: Spain 432 +5.3% 116 -3.8% 5 +11.1% 553 +3.3% Austria 322 +9.1% 133 +4.9% 122 -8.1% 577 +4.0% Switzerland 80 -20.6% 65 +5.0% 356 -7.5% 501 -8.5% RoW 393 +17.3% 263 +19.4% 55 +294.8% 711 +25.1% Total Life gross direct premiums 14,512 +0.2% 3,968 +3.0% 4,321 +8.3% 22,801 +2.1% (Euro mln) Protection Unit/Index linkedSavings and pension Total (Euro m)
  • 371H13 P&C premiums by country and business line IV. BACK UP (1) Including fleets (2) On like for like basis Assicurazioni Generali Group – 1H 2013 results GDP YoY % increase(2) GDP YoY % increase(2) GDP YoY % increase(2) GDP YoY % increase(2) GDP YoY % increase(2) Italy 1,548 -9.0% 439 +1.0% 787 -3.6% 576 -0.3% 3,350 -5.1% France 550 -5.9% 825 +3.7% 448 -7.1% 0 -100.0% 1,823 -4.6% Germany 872 +7.2% 747 +2.4% 173 +2.0% 275 +1.4% 2,068 +4.2% CEE 478 -3.9% 175 +2.2% 269 +0.8% 53 +2.3% 976 -1.3% RoE 932 +1.6% 573 +4.3% 556 -7.6% 444 +4.9% 2,506 +0.5% Of which: Spain 189 -8.0% 220 +2.4% 191 -22.6% 110 -1.7% 711 -8.8% Austria 308 +0.6% 171 +2.6% 233 +4.0% 81 +4.0% 793 +2.3% Switzerland 231 -0.7% 113 +5.1% 2 -8.2% 133 +4.6% 479 +2.0% RoW 438 +51.4% 28 +259.8% 127 +28.4% 20 +13.7% 613 +48.4% Total P&C gross direct premiums 4,819 +0.8% 2,789 +3.7% 2,360 -3.0% 1,368 -1.6% 11,336 +0.4% TotalAccident/Health (Euro mln) Motor (1) Personal Commercial (Euro m)
  • 38 Loss ratio Expense ratio P&C - Combined ratio(%) Total - Expense ratio (%) 69.5 67.3 27.6 27.4 1H131H12 1H131H12 1H131H12 97.1 94.7 1H13 technical ratios IV. BACK UP Life - Expense ratio (%) Assicurazioni Generali Group – 1H 2013 results 16.2 15.8 10.610.9
  • 391H13 combined ratio reconciliation (1) Administration expenses related to service companies, real estates and other companies not belonging to P&C segment (Euro m) IV. BACK UP Assicurazioni Generali Group – 1H 2013 results 1H12 1H13 A Net earned premiums (net of consolidation adjustments) 10.565 10.228 B Consolidated net claims 7.339 6.880 Consolidated acquisition costs 2.308 2.185 Consolidated administration costs 652 638 Non insurance activity related administration costs(1) 39 21 Insurance activity related consolidated administration costs 613 617 C Total acquisition and administration costs 2.920 2.802 B/A Loss ratio 69,5% 67,3% C/A Expense ratio 27,6% 27,4% (B+C)/A Combined ratio 97,1% 94,7% D Other technical items 34 37 A-B-C-D Technical result 272 508
  • 401H13 technical ratios by country IV. BACK UP Assicurazioni Generali Group – 1H 2013 results (%) ITA FRA GER CEE RoE SPA AUT SWI RoW Consolidated 1H13 69.7% 69.9% 67.5% 58.0% 66.9% 64.8% 67.1% 69.4% 64.6% 67.3% 1H12 78.5% 71.6% 67.5% 50.3% 67.3% 64.9% 67.0% 70.7% 58.1% 69.5% 1H13 21.1% 27.2% 28.5% 32.6% 28.9% 28.5% 27.9% 26.3% 41.6% 27.4% 1H12 21.2% 26.8% 28.3% 37.2% 28.9% 27.9% 28.3% 26.1% 38.9% 27.6% 1H13 90.8% 97.0% 96.0% 90.6% 95.8% 93.3% 95.0% 95.7% 106.2% 94.7% 1H12 99.7% 98.4% 95.8% 87.5% 96.1% 92.9% 95.3% 96.8% 96.9% 97.1% 1H13 9.6% 12.0% 9.6% 18.1% 11.3% 4.5% 13.9% 19.5% 21.2% 10.6% 1H12 10.0% 12.0% 12.0% 19.8% 12.1% 4.6% 15.1% 19.4% 15.5% 10.1% P&C Loss ratio P&C Expense ratio P&C Combined ratio Life expense ratio by country
  • 41Focus on operating result 1H12 1H13 Like for like ∆ Italy 971 1,150 +18.4% France 466 443 -4.8% Germany 315 336 +6.6% CEE 263 182 -30.7% RoE 454 497 +9.3% RoW 147 53 -13.9% Operating result(1) 2,617 2,661 +5.1% Op. holding expenses (148) (168) +13.4% Consolidation Adj. (126) (116) -7.9% Total operating result 2,343 2,378 +5.3% Operating result by country(1) (Euro m) 668 313 168 81 207 44 358 131 138 88 184 11 125 30 13 106 -2Italy France Germany CEE RoE RoW Life P&C Financial Operating result breakdown(1) (Euro m) (1) Operating result = operating result of life, P&C and financial segments, before holding expenses and consolidation adjustments 1,150 443 336 182 497 53 IV. BACK UP Assicurazioni Generali Group – 1H 2013 results
  • 42 1H 2013(1) FY 2012 FY 2011 FY 2010 Consolidated Operating result 2,378 4,219 3,928 4,077 Interest expenses on financial debt (375) (668) (646) (704) Operating taxes(2) (691) (1,225) (1,132) (1,163) Minority interest (83) (287) (278) (258) Net IFRS Total Operating result 1,229 2,040 1,872 1,951 Average shareholder's equity (excluding OCI(3)) 17,000 17,131 17,252 16,699 Operating RoE 7.2% 11.9% 10.8% 11.7% Operating Return on Equity: calculation (1) 1H13 Operating RoE not annualised (2) Taxes based on mid-point of long term expected range of 33-36% (3) For the definitions refer to the related section in the backup (Euro m) Assicurazioni Generali Group – 1H 2013 results IV. BACK UP
  • 43 1,650 1,481 Life operating result Operating result (Euro m) 1H131H12 -7.0%(1) Operating result by country (Euro m) IV. BACK UP 1H12 1H13 Like for like  Italy 742 668 -10.0% France 337 313 -7.3% Germany 162 168 +3.7% CEE 94 81 -13.7% RoE 207 207 +0.2% Of which: Spain 52 53 +1.3% Austria 30 31 +1.1% Switzerland 60 61 +0.5% RoW 109 44 -11.3% Total 1,651 1,481 -7.0% Assicurazioni Generali Group – 1H 2013 results (1) On like for like basis
  • 44Life net inflows by country IV. BACK UP Assicurazioni Generali Group – 1H 2013 results Country 1H12 1H13 Like for like  Italy (602) 486 n.m. France (1,688) 95 n.m. Germany 2,118 2,893 +36,6% CEE 215 270 +37,5% RoE (841) 850 n.m. Spain (1,661) (43) +97,4% Austria 38 79 +105,9% Switzerland 311 264 -13,5% RoW 420 316 +48,2% Total (378) 4,911 n.m.
  • 45 755 909 P&C operating result 1H131H12 +24.8%(1) IV. BACK UP 1H12 1H13 Like for like  Italy 120 358 +198.4% France 128 131 +1.8% Germany 127 138 +8.8% CEE 157 88 -43.6% RoE 184 184 +0.0% Of which: Spain 84 81 -2.8% Austria 52 57 +9.0% Switzerland 23 25 +8.0% RoW 40 11 -16.8% Total 755 909 +24.8% Operating result (Euro m) Operating result by country (Euro m) Assicurazioni Generali Group – 1H 2013 results (1) On like for like basis
  • 46Other operating and non operating expenses by segment (Euro m) Life Non Life Financial 1H12 1H13 1H12 1H13 1H12 1H13 Total net other operating expenses (28) (42) (103) (147) (47) (70) Restructuring costs (3) (2) (15) (26) (5) (1) Other net non operating expenses(1) (66) (98) (56) (60) (10) (11) Total net other non operating expenses (69) (100) (71) (86) (15) (12) (1) Other non operating expenses include mainly amortization of VOBA IV. BACK UP Assicurazioni Generali Group – 1H 2013 results
  • 47 Assicurazioni Generali Group – 1H 2013 results (Euro m) Life P&C Financial Total Net impairments 1H12 1H13 1H12 1H13 1H12 1H13 1H12 1H13 Equity instruments 457 246 96 35 3 1 555 282 Fixed income (2) (13) 12 (4) 7 (2) 17 (19) Real estate 19 65 5 7 0 0 24 72 Other investments(2) 7 11 65 78 9 2 81 91 Total net impairments 480 309 179 116 18 1 677 425 Of which Operating net impairments 362 262 0 0 15 0 378 262 Non operating net impairments 118 47 179 116 3 1 300 163 Focus on impairments(1) (1) Net of reverse impairments (2) Including subsidiaries and associated companies IV. BACK UP
  • 48 Assicurazioni Generali Group – 1H 2013 results (Euro m) Life P&C Financial Total 1H12 1H13 1H12 1H13 1H12 1H13 1H12 1H13 Net realized gains on Equities 85 256 (28) 45 0 117 57 418 Realised gains 305 341 47 65 0 117 353 522 Realised losses (220) (84) (75) (20) 0 0 (295) (104) Net realized gains on Fixed Income 178 710 4 52 0 15 183 777 Realised gains 1,853 795 81 60 1 17 1,935 872 Realised losses (1,675) (85) (77) (9) (1) (2) (1,753) (95) Net realized gains on Real Estate 66 30 68 56 0 0 134 86 Realised gains 70 36 72 63 0 0 142 98 Realised losses (4) (6) (4) (7) 0 0 (7) (13) Net realized gains on Other(2) 6 13 21 (6) (1) 2 26 10 Realised gains 6 22 21 1 1 2 29 25 Realised losses (1) (8) 0 (7) (2) 0 (3) (15) Total net realized gains 335 1,010 66 147 (1) 134 400 1,291 Operating net realized gains 418 1,035 0 0 0 48 418 1,083 Non operating net realized gains (82) (25) 66 147 (2) 86 (18) 208 Focus on realised gains(1) (1) Excluding financial instruments at fair value through profit and loss (2) Including subsidiaries and associated companies IV. BACK UP
  • 49Focus on non operating items: interest expenses on financial debt 327 375 1H12 1H13 Average cost (%) 5.40% 5.92% Average maturity (years) 5.41 5.77 Total financial debt (Euro m)Interest expenses on financial debt (Euro m) 1H131H12 Average cost & maturity of financial debt (%) 36.8% 35.0% 54.5% 59.2% 8.7% 5.8% 1H12 1H13 Senior Sub/Hybrid Other 12,74112,124 IV. BACK UP Assicurazioni Generali Group – 1H 2013 results
  • 50Reclassified P&L account Total (Euro m) 1H12 1H13 Total Operating result 2,343 2,378 Net earned premiums 31,650 31,163 Net insurance benefits and claims (30,995) (31,338) Acquisition and administration costs (5,767) (5,583) Net fee and commission income and net income from financial service activities 395 410 Operating income from other financial instruments 5,665 6,264 Operating income from financial instruments at fair value through profit or loss 1,727 1,890 of which net income from fin. assets and liabilities where the risk is borne by the policyholders 1,293 1,589 Operating holding expenses (148) (168) Net other operating expenses (184) (261) Non-operating result (776) (590) Non-operating income from other financial instruments (318) 44 Non-operating income from financial instruments at fair value through profit or loss 32 (40) Non-operating holding expenses (329) (397) Interest expenses on financial debt (327) (375) Other non-operating holding expenses (2) (22) Net other non-operating expenses (161) (198) Earnings before taxes 1,568 1,787 Income taxes (582) (619) Result from discontinued operations 27 47 Consolidated result of the period 1,012 1,215 Result of the period attributable to minority interests (171) (135) Result of the period 842 1,081 IV. BACK UP Assicurazioni Generali Group – 1H 2013 results
  • 51 (Euro m) Life Non life Financial(1) Unallocated holding expenses Consolidation adjustments Total Total Operating result 1,651 755 211 (148) (126) 2,343 Net earned premiums 21,085 10,565 - - - 31,650 Net insurance benefits and claims (23,656) (7,339) - - - (30,995) of which var. of provisions related to unit linked business (1,212) - - - - (1,212) Acquisition and administration costs (2,415) (2,928) (424) - - (5,767) Net fee and commission income and net income from financial service activities 47 - 415 - (66) 395 Operating income from other fin. Instruments 4,986 536 195 - (53) 5,665 Operating income from fin. Instruments at fair value through profit or loss 1,632 23 72 - - 1,727 of which net income from fin.assets and liabilities where the risk is borne by the policyholders 1,293 - - - - 1,293 Operating holding expenses - - - (148) - (148) Net other operating expenses (28) (103) (47) - (7) (184) Non-operating result (269) (152) (19) (329) (7) (776) Non-operating income from other fin.instr. (200) (113) (4) - - (318) Non-operating income from fin. instr.at fair value through profit or loss - 32 - - - 32 Non-operating holding expenses - - - (329) - (329) Net other non-operating expenses (69) (71) (15) - (7) (161) Earnings before taxes 1,382 603 192 (477) (132) 1,568 Reclassified P&L account by segment - 1H12 IV. BACK UP (1) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Report Assicurazioni Generali Group – 1H 2013 results
  • 52 (Euro m) Life Non life Financial(1) Unallocated holding expenses Consolidation adjustments Total Total Operating result 1,481 909 272 (168) (116) 2,378 Net earned premiums 20,935 10,228 - - - 31,163 Net insurance benefits and claims (24,457) (6,880) - - - (31,338) of which var. of provisions related to unit linked business (2,037) - - - - (2,037) Acquisition and administration costs (2,354) (2,808) (420) - - (5,583) Net fee and commission income and net income from financial service activities 47 0 442 - (79) 410 Operating income from other fin. Instruments 5,559 503 237 - (35) 6,264 Operating income from fin. Instruments at fair value through profit or loss 1,793 14 83 - - 1,890 of which net income from fin.assets and liabilities where the risk is borne by the policyholders 1,589 - - - - 1,589 Operating holding expenses - - - (168) - (168) Net other operating expenses (42) (147) (70) - (3) (261) Non-operating result (172) (95) 73 (397) 1 (590) Non-operating income from other fin.instr. (72) 31 85 - - 44 Non-operating income from fin. instr.at fair value through profit or loss - (40) - - - (40) Non-operating holding expenses - - - (397) - (397) Net other non-operating expenses (100) (86) (12) - 1 (198) Earnings before taxes 1,308 814 345 (565) (115) 1,787 Reclassified P&L account by segment - 1H13 IV. BACK UP (1) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Report Assicurazioni Generali Group – 1H 2013 results
  • 53 IV. BACK UP Focus on 2Q13 results (1) Including investment contracts (2) On like for like basis (Euro m) Assicurazioni Generali Group – 1H 2013 results 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 2Q13/ 2Q12(2) Life premiums(1) 11,503 10,543 12,009 12,815 10,415 10,271 13,309 12,282 11,259 +11.5% P&C premiums 5,219 4,931 5,823 6,999 5,419 5,027 5,359 6,863 5,050 +0.6% Total premiums 16,722 15,474 17,832 19,814 15,834 15,298 18,668 19,145 16,309 +7.9% Life net inflows 1,999 1,678 (651) 760 (1,138) 1,515 2,399 2,913 2,109 +276.9% Combined ratio % 96.9% 96.7% 96.4% 95.4% 98.8% 95.7% 92.8% 93.6% 95.6% -3.2% Life operating result 782 315 564 819 832 545 462 797 683 -12.5% P&C operating result 406 405 357 411 344 404 505 520 389 +23.4% Financial operating result 96 68 63 126 85 109 88 119 153 +80.4% Operating holding expenses and cons. adj. (132) (96) (155) (126) (148) (109) (128) (108) (176) +19.0% Total operating result 1,153 692 827 1,230 1,113 949 928 1,328 1,049 +1.7% Net result 190 20 31 567 274 291 (1,043) 603 478 +74.0%
  • 54 IV. Backup Agenda P&L Balance sheet Life Definitions Assicurazioni Generali Group – 1H 2013 results
  • 55Consolidated balance sheet (1) Including reinsurance amounts of technical reserve, deferred tax assets, deferred acquisition costs and other assets (Euro bn) FY12 1H13 Intangible assets 9.9 9.7 Investments Cash 374.1 21.6 375.9 18.5 Other credits 11.1 12.3 Tangible assets 5.0 5.1 Other assets (1) 20.0 25.7 Total Assets 441.7 447.2 (Euro bn) FY12 1H13 Shareholders’ Equity (Group share) 19.8 18.4 Minority interests 2.7 1.9 Shareholders’ Equity 22.6 20.3 Operating debt 50.7 50.0 Financial debt 13.2 12.7 Technical reserves 336.4 338.0 Payables and other provisions 9.5 10.2 Other liabilities 9.4 16.0 Total Liabilities and Shareholders’ Equity 441.7 447.2 IV. BACK UP Assicurazioni Generali Group – 1H 2013 results
  • 56Assets under management Total Euro 491 bn Unit Linked Third parties AUM IV. BACK UP (1) For definitions refer to the related section in the backup Assicurazioni Generali Group – 1H 2013 results 99.6 335.2 56.5 338.8 53.8 97.4 Total Euro 490 bn Fixed income instruments Other Real Estate Equity “Own Investments”(1) Cash & equival. 4.7% 81.2% 4.5% 5.2% 3.4% 1H13FY12
  • 57 Fixed income instruments Of which bonds Of which loans Real estate Other Subs, ass. & JVs IV. BACK UP 1H13 own investments at amortized cost and fair value(1) Fixed income instruments Of which bonds Equity Other Investments at amortized cost Investments at fair value (1) Excluding unit linked and third parties AUM Cash & equivalents Assicurazioni Generali Group – 1H 2013 results 91.6% 86.1% 6.8% 1.7% 233.9 83.8 17.5 73.1% 50.5% 22.6% 15.2% 9.6% 2.1% Total Euro 335 bn
  • 581H13 book value and market value of own investments(1) IV. BACK UP (1) Excluding unit linked and third parties (2) Net of consolidation adjustments Assicurazioni Generali Group – 1H 2013 results (Euro m) Asset classes BV MV BV MV BV MV BV MV Equity 12,494 12,494 2,707 2,707 606 606 15,807 15,807 Fixed income instruments 236,974 240,591 26,068 26,082 14,844 15,151 275,405 279,341 Corporate 95,555 98,029 11,769 11,748 2,176 2,179 109,176 111,632 Government 117,730 118,723 11,242 11,271 5,668 5,707 134,640 135,702 Other fixed income 23,689 23,838 3,057 3,062 7,000 7,264 31,589 32,007 Real estate 9,912 12,430 5,264 8,004 21 37 15,197 20,471 Life P&C Financial Total(2)
  • 59Quality of 1H13 fixed income portfolio By issuer (Euro bn) Fixed income portfolio composition: Euro 275.4 bn 117.7 11.2 5.7 134.6 95.6 11.8 2.2 109.2 23.7 3.1 7.0 31.6 Life P&C Financials Total Government Corporate Other fixed income IV. BACK UP Bond portfolio by rating (%) 19.8% 21.2% 15.2% 39.1% 3.3% 1.3% AAA AA A BBB NIG NR Assicurazioni Generali Group – 1H 2013 results Average bond portfolio duration (years) Life P&C Government 8.5 4.6 Corporate 5.8 3.4 % Current return Comprehensive return Life 1.9% 0.8% P&C 1.6% 1.0%
  • 60 Government bonds: Euro 134.6, 48.9% of total fixed income portfolio Focus on 1H13 government bond portfolio 43% 30% 18% 57% 70% 82% Life P&C Financial IV. BACK UP Weight on own investmentsSplit by accounting treatment 10.5% 89.5% Amortized cost Fair Value Assicurazioni Generali Group – 1H 2013 results Split by country (Euro bn) Total Of which domestic Italy 56.7 52.5 France 27.5 21.0 Germany 9.3 7.0 CEE 8.1 5.4 RoE 22.9 10.2 RoW 2.1 0.8 Supranational 8.0 na Split by rating (Euro bn) Total AAA 18.1 AA 44.4 A 3.6 BBB 65.5 Not investment grade 2.7 Not rated 0.3 117.7 11.2 5.7
  • 61Peripheral government bond portfolio: focus on country exposure IV. BACK UP 0.0 0.8 0.3 0.1 Italy Germany France RoE 1.5 0.6 0.6 4.2 Italy Germany France Spain 0.0 0.9 0.3 0.2 Italy Germany France RoE 52.5 2.0 1.8 0.5 Italy Germany France RoE Italian government bonds: Euro 56.7 bn Spanish government bonds: Euro 7.0 bn Portuguese government bonds: Euro 1.3 bn Irish government bonds: Euro 1.4 bn Assicurazioni Generali Group – 1H 2013 results
  • 62Focus on 1H13 corporate bond portfolio 25.7% 74.3% Amortized cost Fair Value 35% 31% 7% 65% 69% 93% Life P&C Financial Weight on own investmentsSplit by accounting treatment IV. BACK UP Assicurazioni Generali Group – 1H 2013 results Corporate bonds: Euro 109.2 bn, 39.6% of total fixed income portfolio Split by industry (Euro bn) Life P&C Financials 29.1 3.8 Covered bonds 29.4 3.3 Utilities 10.2 1.0 ABS 1.3 0.3 Telecom 5.0 1.0 Industrial 9.0 0.7 Other 11.5 1.6 Split by rating (Euro bn) Total AAA 30.2 AA 7.3 A 33.6 BBB 29.8 Not investment grade 5.3 Not rated 2.9 95.6 11.8 2.2
  • 63Focus on 1H13 covered and financial corporate bond portfolios Covered bonds(1): Euro 33.4 bn IV. BACK UP Financial corporate bonds(1): Euro 33.8 bn Assicurazioni Generali Group – 1H 2013 results (1) Including life, P&C and financial segment investments. Split by rating (Euro bn) Total AAA 26.4 AA 1.4 A 3.0 BBB 2.0 Not investment grade 0.2 Not rated 0.5 Split by country (Euro bn) Total Italy 1.5 France 9.1 Germany 8.6 CEE 0.5 RoE 12.9 RoW 0.7 Split by rating (Euro bn) Total AAA 2.4 AA 2.6 A 15.1 BBB 9.9 Not investment grade 3.1 Not rated 0.7 Split by country (Euro bn) Total Italy 4.8 France 6.0 Germany 5.6 CEE 0.7 RoE 11.9 RoW 4.8
  • 64Focus on 1H13 equity portfolio 5% 7% 2% Life P&C Financial Equity: Euro 15.8 bn IV. BACK UP Weight on own investments Group net equity exposure Gross equity exposure Hedging PHs’ interest Taxes Min. interest Net equity exposure Assicurazioni Generali Group – 1H 2013 results 15.8 5.1 (0.6)(9.9) (0.1) (0.2) 12.5 2.7 0.6 % Current return Comprehensive return Life 2.5% 2.7% P&C 2.2% 3.0% Split by industry (Euro bn) Life P&C Financials 1.9 1.0 Consumer 1.3 0.3 Utilities 0.8 0.1 Industrial 1.0 0.2 Other 2.4 0.5 Alternative funds 3.1 0.6 Funds 2.0 0.1
  • 65 (1) RoE includes Austria, Spain, Switzerland, Belgium, UK and Netherlands (2) RoW includes Latin America, Far East and US. 1H13 Group real estate assets (1/2) Country Total BV (Euro bn) % of the total Total MV (Euro bn) % of the total Italy 6.5 36% 9.4 40% France 4.2 24% 5.7 24% Germany 3.8 21% 3.9 16% CEE 0.2 1% 0.2 1% RoE(1) 3.2 17% 4.5 18% RoW(2) 0.2 1% 0.2 1% Total 18.1 100% 23.9 100% Investment properties vs. self use Yield on investment properties Self Use 14.2 % Investment properties 85.8 % IV. BACK UP % of Average NBV Current Return Life 3.5% P&C 3.5% % based on Market Value Assicurazioni Generali Group – 1H 2013 results
  • 661H13 Group real estate assets (2/2) IV. BACK UP Country Area (sqm m) % of total area MV (Euro bn) % of Total MV Italy 2.5 38% 8.2 38% France 1.6 24% 5.4 25% Germany 1.1 17% 3.1 14% CEE 0.1 2% 0.2 1% RoE (1) 1.2 17% 4.4 20% RoW (2) 0.1 2% 0.2 1% Total 6.6 100% 21.4 100% Residential 12% Retail 16% Logistic 3% Other 7% Office 62% Direct Investments in leader countries (1) RoE includes UK, Austria, Spain, Switzerland, Belgium and Netherlands (2) RoW includes Latin America, Far East and US Assicurazioni Generali Group – 1H 2013 results
  • 67Investment yields(1) (1) For definitions refer to the related section in the backup IV. BACK UP Assicurazioni Generali Group – 1H 2013 results Return (%) 1H12 1H13 1H12 1H13 1H12 1H13 1H12 1H13 1H12 1H13 LIFE Current 2.2 1.9 2.3 2.5 3.6 3.5 0.9 1.0 2.1 2.0 Total P&L 2.3 2.3 -0.1 3.6 4.2 1.9 0.8 -0.4 2.1 2.1 Comprehensive 5.3 0.8 2.2 2.7 3.9 1.7 0.8 -0.4 4.7 0.9 NON LIFE Current 2.0 1.7 1.8 2.2 4.1 3.5 1.0 1.8 2.2 2.0 Total P&L 2.0 1.9 -2.3 2.5 5.2 2.4 1.0 0.7 2.1 1.8 Comprehensive 4.3 1.0 -0.4 3.0 5.2 2.4 1.0 0.7 3.8 1.2 TOTAL Current 2.1 1.9 2.2 2.4 3.8 3.5 0.7 0.7 2.0 1.9 Total P&L 2.2 2.2 -0.4 4.2 4.4 2.1 0.6 -0.2 2.0 2.1 Comprehensive 5.1 0.9 1.7 3.4 4.2 1.9 0.6 -0.2 4.4 0.9 Fixed Income Equities Investment Properties Other Total
  • 68 Assicurazioni Generali Group – 1H 2013 results 18,43318,775 478(468) 47(311) (10)(78) IFRS Shareholders’ equity roll forward – Quarterly evolution Shareholders’ Equity 1Q2013 Δ in AFS Reserve 2Q 2013 Net Result Δ Currency Translation Reserve Δ Cash Flow Hedge Reserve Dividend paid Other Shareholders’ Equity 1H13 -1.8% (Euro m) Change in AFS reserve (Euro m) 2,406 (66) 1,938 (42) (360) AFS Reserve FY12 Impact Equity Investments Impact Bond Investments Other AFS Reserve 1H13 IV. BACK UP
  • 69AFS reserve breakdown IV. BACK UP Assicurazioni Generali Group – 1H 2013 results (Euro m) FY12 1Q13 1H13 Fixed income instruments 1,889 1,631 1,271 Government 1,111 860 764 Corporate 778 770 507 Equity 549 578 534 Investment funds and other 152 198 134 TOTAL 2,591 2,406 1,938
  • 70 18.2 18.1 25.0 25.1 Regulatory Solvency I development in 2Q13 1H131Q13 138% 139% (Euro bn) Main drivers of change IV. BACK UP Assicurazioni Generali Group – 1H 2013 results Available margin  Consolidated result:  Banca Generali shares placement:  Financial markets and other elements: Required Margin + 0.5 + 0.2 - 0.6 - 0.1 Required margin Available margin Solvency I ratio
  • 71Stress tests on Solvency I and Shareholders’ equity Impact on solvency I ratio (%) Impact on Shareholders’ equity (Euro bn) Total ratio 30.06.2013 Equities -30% Interest rate +100bps Interest rate -100bps Credit spread +100bps Real estate -10% (1.0) 2.7 (2.7) (1.5)Equities -30% Interest rate +100bps Interest rate -100bps Credit spread +100bps (1) (1) (1) Before hedging impact IV. BACK UP Assicurazioni Generali Group – 1H 2013 results 139 130 124 154 133 135
  • 72 (12) 425 1,850 (344) 2,530 (307) (1,326) 681 196(644) 1,032 (244) 270 1,308 2Q131Q134Q123Q122Q121Q124Q113Q112Q111Q114Q103Q102Q101Q10 Total comprehensive income(1) (Euro m) 3M10 6M10 9M10 12M10 3M11 6M11 9M11 12M11 3M12 6M12 9M12 12M12 3M13 6M13 1,308 1,064 2,096 1,452 270 466 (860) (1,166) 2,530 2,186 4,036 4,717 425 413 +4,000 m -1,000 m IV. BACK UP (1) For definitions refer to the related section in the backup Assicurazioni Generali Group – 1H 2013 results
  • 73Financial debt schedule 0 500 1,000 1,500 2,000 2,500 3,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2024 2026 Hybrid Subordinated Senior Loans Bonds Financial debt breakdown by expiry date/call date (Euro m) IV. BACK UP Assicurazioni Generali Group – 1H 2013 results Euro 550 m repayed during 1H13
  • 741H13 technical reserves IV. BACK UP Assicurazioni Generali Group – 1H 2013 results (Euro m) Traditional Linked TOTAL Life net technical reserves (1) Italy 83,487 5,697 89,184 France 66,569 15,504 82,073 Germany 81,854 15,312 97,166 CEE 5,460 1,579 7,039 GROUP TOTAL 261,862 56,300 318,162 (Euro m) Motor Non Motor TOTAL P&C net technical reserves Italy 4,902 6,964 11,866 France 2,316 3,431 5,747 Germany 2,041 2,613 4,654 CEE 1,210 757 1,967 GROUP TOTAL 13,877 17,158 31,035 (1) Including investment contracts for Euro 18,023 million
  • 75Operating ratio on investments(1) IV. BACK UP Life operating ratio on investments (%) P&C operating ratio on investments (%) (1) For the definitions refer to the related section in the backup (%) 1H12 1H13 %pts Italy 0.94 0.77 -0.17 France 0.42 0.37 -0.05 Germany 0.18 0.17 -0.01 CEE 1.26 1.03 -0.23 GROUP TOTAL 0.54 0.45 -0.09 (%) 1H12 1H13 %pts Italy 1.02 2.83 1.81 France 2.38 2.19 -0.19 Germany 2.21 2.25 0.04 CEE 4.58 2.51 -2.07 GROUP TOTAL 2.11 2.41 0.30 Assicurazioni Generali Group – 1H 2013 results
  • 76Number of shares(1) (1) Calculation based on IAS 33 IV. BACK UP Assicurazioni Generali Group – 1H 2013 results Ordinary Shares issued (1) Own shares (2) Shares outstanding (1-2) shares outstanding at 12.31.2012 1,556,873,283 15,996,870 1,540,876,413 Weighted number of shares outstanding at 12.31.2012 1,540,876,249 Capital increase Stock grant plan -425,967 425,967 Exercise of stock options Generali shares purchase 763,125 -763,125 Change in scope shares outstanding at 06.30.2013 1,556,873,283 16,334,028 1,540,539,255 Weighted number of shares outstanding at 06.30.2013 1,540,790,961 Potential (dilutive) shares: Stock options 0 Weighted number of shares outstanding at 06.30.2013 adjusted for the effects of all dilutive potential ordinary shares. 1,540,790,961 Weighted number of shares outstanding at 12.31.2012 adjusted for the effects of all dilutive potential ordinary shares. 1,540,876,249
  • 77Per share indicators IV. BACK UP (1) Calculated on the basis of weighted shares outstanding during six months 2013 (1,540,875,841) (2) Calculated on the basis of shares outstanding at 30.06.2013 (1,524,456,333) Assicurazioni Generali Group – 1H 2013 results (Euro) 1H13 Earnings per share(1) 0.7 Book Value per share (2) 12.1 ANAV per share(2) 8.7 Embedded Value per share(2) 16.2
  • 78 IV. Backup Agenda P&L Balance sheet & capital Life Definitions Assicurazioni Generali Group – 1H 2013 results
  • 79Life new business: APE IV. BACK UP Assicurazioni Generali Group – 1H 2013 results (Euro m) APE Annual Premiums Single Premiums 1H12 1H13 Like for like  1H12 1H13 Like for like  1H12 1H13 Like for like  Italy 790 860 8.9% 514 558 8.5% 2,760 3,026 9.6% France 581 409 -29.6% 178 168 -5.8% 4,031 2,415 -40.1% Germany 400 549 37.2% 283 289 2.2% 1,174 2,600 121.5% CEE 74 84 -17.5% 68 79 -14.7% 61 47 -46.1% RoE 322 315 -1.7% 214 192 -9.7% 1,071 1,224 14.4% Austria 45 47 3.9% 36 35 -3.0% 95 124 29.6% Spain 56 68 21.0% 24 29 19.2% 324 397 22.3% Switzerland 55 33 -39.5% 49 32 -34.8% 55 10 -81.7% RoW 112 86 8.4% 94 69 6.9% 183 171 18.1% Total 2,280 2,303 1.3% 1,352 1,354 0.6% 9,281 9,483 2.2% 1H13 amounts include the contributions from Mexico & US Life Re only for 1Q13. Such contributions, as well as other perimeter and FX rates changes, are neutralized in the like for like variation
  • 80Life new business: Value and margins IV. BACK UP Assicurazioni Generali Group – 1H 2013 results (Euro m) NBV Margin on APE 1H12 1H13 Like for like  1H12 FY12 1H13 Italy 188 149 -20.1% 23.8% 17.2% 17.3% France 73 59 -19.7% 12.5% 12.8% 14.3% Germany 83 128 54.6% 20.7% 20.2% 23.4% CEE 26 38 5.2% 35.0% 31.4% 45.7% RoE 80 77 -2.7% 24.9% 20.8% 24.6% Austria 4 9 102.4% 9.7% 6.3% 18.9% Spain 14 18 25.4% 25.4% 19.8% 26.3% Switzerland 13 14 9.0% 23.9% 27.5% 43.0% RoW 43 22 8.0% 38.2% 44.1% 25.7% Total 493 473 -1.3% 21.6% 19.2% 20.6% 1H13 amounts include the contributions from Mexico and US Life Re only for 1Q13. Such contributions, as well as other perimeter and FX rates changes, are neutralized in the like for like variation
  • 81Value in force: Life & Health and asset gathering Asset gathering (Euro m) 1H13FY12 +7.7%(1) IV. BACK UP 1,1311,139 Assicurazioni Generali Group – 1H 2013 results Life & Health (Euro m) 1H13FY12 +26.0%(1) 10,487 9,352 (1) on a like for like basis 1H13 Life & Health VIF valuation based on:  30/06/2013 economic scenario (interest rates, volatilities, market value of assets)  same market consistent methodology applied at FY12 (reference rates based on swap plus illiquidity premium)  EUR illiquidity premium (100% bucket): 38bps, EUR extrapolation entry-point: 20 years  FY12 operating assumptions (mortality, surrender, expenses)
  • 82 IV. Backup Agenda P&L Balance sheet Life Definitions Assicurazioni Generali Group – 1H 2013 results
  • 83 Assicurazioni Generali Group – 1H 2013 results Definitions: P&L and balance sheet (1/3) IV. BACK UP Investments Returns are calculated on quarterly average asset base at IFRS book value and are defined as follows: Current return: interests, dividends and similar income (gross of investments related expenses) Total P&L return: = current return + harvesting return (net realized gains, net impairments and net unrealized gains reported in P&L) – investments related expenses Comprehensive return: i) for fair value investment (AFS, FVthPL) = current return + total change in fair value; ii) for investment at amortised cost (Real estates, loans, HtM) = Total P&L return Investment returns for Life segment include 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 The change of written premiums, net cash inflow, APE and NBV is on equivalent terms (on equivalent exchange rates and consolidation area). The change of operating results, AUM and technical reserves is calculated excluding Migdal Group from the comparative period Operating Result Operating result of life, P&C and financial segments, before holding expenses and consolidation adjustments
  • 84 Assicurazioni Generali Group – 1H 2013 results Own Investments do not include unit/index linked investments and consist of the following asset class (*): i) Fixed income instruments as quoted and unquoted bonds, loans including deposits under reinsurance business accepted and term deposits with credit institutions ii) Equity-like instruments as 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 as 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. 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 Income Change in shareholders’ equity during the period related to income and expenses recognized in profit or loss 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 information's 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.” Definitions: P&L and balance sheet (2/3) IV. BACK UP
  • 85 Assicurazioni Generali Group – 1H 2013 results Operating RoE Operating Return on Equity indicates the return in terms of Operating Result on Group Shareholders’ Equity. It is calculated according to the following ratio: Total Operating Result adjusted to include: - interest expenses on financial debt; ˗ income taxes based on a mid-term expected tax rate as assumed in 2015 Target; - minorities interests. Average Group Shareholders’ Equity at the beginning and at the end of each period of valuation, ex-cluding gains and losses included in Other Comprehensive Income (OCI). Other Comprehensive Income (OCI) Other Comprehensive Income includes net unrealized gains and losses on AFS investments, foreign currency translation differences, net unrealized gains and losses on hedging derivatives. Definitions: P&L and balance sheet (3/3) IV. BACK UP
  • 86Definitions: Life NBV and VIF IV. BACK UP Annual Premium Equivalent (APE) is defined as new business annualised regular premiums plus 10% of single premiums New Business Value (NBV) is the present value, at the point of sale, of the projected stream of after tax industrial profits expected to be generated by the covered new business written in the period, taking into account the actual acquisition costs incurred in the period 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 defined as the sum of quarterly NBV, calculated with beginning of period economic and operating assumptions New Business Margin (NBM) is defined as the New Business Value divided by Annual Premium Equivalent Value In-Force (VIF) Life & Health 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 Value In-Force Asset Gathering Retail asset gathering business relates to the group's 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 fees 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 since 2008, the value arising in Banca Generali relating to insurance business has been considered as a look through in the Life Value In-Force. Assicurazioni Generali Group – 1H 2013 results
  • 87 Assicurazioni Generali Group – 1H 2013 results Definitions: Group EV IV. BACK UP Available Capital (AC) It is internally defined as the sum of:  the excess of market value of assets over market value of liabilities  subordinated liabilities Economic Balance Sheet (EBS) I) General definition: Balance sheet statement based on one of those accounting approaches using market- 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) value 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 adjusted capital (RAC) Within the EBS framework of the Generali Group, it is the capital necessary to absorb the maximum loss of 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 Value
  • 88 Assicurazioni Generali Group – 1H 2013 results What’s next November 7, 2013 - 9M 2013 Results November 27, 2013 - Investor Day
  • 89Investor Relations Team Spencer Horgan (Tel.: +44-20-72656480) Head of Investor Relations Email: spencer_horgan@generali.com Stefano Burrino (Tel.: +39-040-671202) Email: stefano_burrino@generali.com Emanuele Marciante (Tel.: +39-040-671347) Email: emanuele_marciante@generali.com Veronica Cherini (Tel.: +39-040-671488) Email: veronica_cherini@generali.com Rodolfo Svara (Tel.: +39-040-671823) Email: rodolfo_svara@generali.com Martina Vono (Tel.: +39-040-671402) IR Events Email: martina_vono@generali.com Assicurazioni Generali P.za Duca degli Abruzzi 2 34132 Trieste, Italy Fax: +39 040 671338 e-mail: generali_ir@generali.com www.generali.com Assicurazioni Generali Group – 1H 2013 results
  • 90Disclaimer Certain of the statements contained herein are statements of future expectations and other forward-looking statements. These expectations are based on management's 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 charged with preparing the company’s financial reports, Alberto Minali, 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 – 1H 2013 results
  • March 2006 August 1, 2013 Generali Group 2013 First-Half Results