Generali Group 9M 2012 Results

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Generali Group 9M 2012 Results

  1. 1. Generali Group9M 2012 Results November 9, 2012
  2. 2. Agenda 2 I. Overview Page 3 II. Group financials Page 5 III. Final remarks Page 24 IV. Backup Page 26Assicurazioni Generali Group – 9M 2012 results
  3. 3. Agenda 3 I. Overview 9M 2012 results at a glance Following the announcement of the sale of related stake, Migdal qualified as a non-current asset held for sale and discontinued operations. Therefore, in this presentation, Migdal is excluded from all 9M12 figures, except as follows: net income; shareholders equity; and the regulatory Solvency 1 margin. Except where specified, prior year figures have not been adjusted. Like for like comparisons are adjusted for the disposal of Migdal. See definition in the related section in the back-up.Assicurazioni Generali Group – 9M 2012 results
  4. 4. I. OVERVIEW9M 2012 results at a glance 4 Operating result (Euro m) Net result (Euro m) +9.4%(1) +37.3% 1,133 825 9M11 9M12 9M11 9M12 (1) On like for like basis Shareholders’ equity (Euro m) Solvency I ratio (%) +24.1% +23%pts FY11 9M12 FY11 9M12Assicurazioni Generali Group – 9M 2012 results
  5. 5. Agenda 5 II. Group financials Profit & loss review Life and P&C segment profitability Balance sheet and solvency IAssicurazioni Generali Group – 9M 2012 results
  6. 6. II. GROUP FINANCIALSRevenue development by segment 6 Gross written premiums (Euro m) (Euro m) Historical Like for 9M11 9M12 ∆ like ∆ +1.8%(2) Gross written 51,327 50,945 -0.7% +1.8% premiums Life(1) 34,385 33,500 -2.6% +0.4% 9M11 9M12 P&C 16,942 17,444 +3.0% +4.7% (1) Including investment contracts (Euro 2,669 m in 9M12, Euro 2,307 m in 9M11) (2) On like for like basisAssicurazioni Generali Group – 9M 2012 results
  7. 7. II. GROUP FINANCIALSOperating result by segment 7 9M12 total operating result (Euro m) Like for like Life 2,196 operating result +16.5% 1,978 P&C 1,158 operating result -4.3% 1,204 Financial services 320 +17.1% operating result 279 Operating holding -221 expenses +3.8% -214 Consolidation -161 adjustments -147 +9.8% 3,292 Total +9.4% 3,100 operating result 9M12 9M11Assicurazioni Generali Group – 9M 2012 results
  8. 8. II. GROUP FINANCIALS Focus on non operating result 8(Euro m) Non operating investment income (Euro m) Like for 9M11 9M12 like 422 30 (304) Non operating (724) (724) (304) -58.8% investment income (32) 9M11 9M12 (1) Non operating (496) (496) +0.1% holding expenses (Euro m) Net Net Fair Net other realised impair- Value thr. Non operating (244) (246) +0.9% gains ments P&L expenses 9M 12 48 (372) 21 Total 9M 11 80 (794) (9) Non operating (1,464) (1,046) -29.2% result Δ(2) -34.3% -53.0% n.m.(1) Including interest expenses on financial debt (2) On like for like basis Assicurazioni Generali Group – 9M 2012 results
  9. 9. II. GROUP FINANCIALS From operating result to net result 9(Euro m) Net income (Euro m) 9M11 9M12 Total operating result 3,100 3,292 +9.4%(1) Non operating result (1,464) (1,046) -29.2%(1) +37.3% Consolidated result before 1,637 2,246 +46.6%(1) taxes and minorities Income taxes (584) (869) +48.9% Result for discontinued 0 (22) n.m. operations Minorities (228) (222) -2.4% 9M11 9M12 Net result 825 1,133 +37.3%(1) On like for like basis Assicurazioni Generali Group – 9M 2012 results
  10. 10. Agenda 10 II. Group financials Profit & loss review Life and P&C segment profitability Balance sheet and solvency IAssicurazioni Generali Group – 9M 2012 results
  11. 11. II. GROUP FINANCIALS Life business development 11Gross written premiums (Euro m) Net technical reserves(2) (Euro bn) +0.4%(1) +2.6% 316.6 301.5 3.2 4.7 309.4 58.3 47.9 52.6 15.1 Δ 258.3 253.6 256.8 9M11 9M12 FY11 Change FY11R Traditional Unit 9M12 in scope Linked Traditional Unit linkedNet inflows by country (Euro m) Country 9M11 9M12 Italy: positive trend in 3Q12, although overall Italy 544 (535) flows are negative due to the decision of not renewing low margin corporate policies during France 423 (1,949) 1H12 Germany 2,868 3,333 France: negative trend linked to Group’s decision to reduce exposure to large premium contracts CEE 364 282 with low profitability RoE 1,199 (611) Germany: strong growth triggered by lower maturities and positive single premium RoW 1,098 623 development TOTAL 6,496 1,142(1) On like for like basis(2) Including liabilities related to investment contracts Assicurazioni Generali Group – 9M 2012 results
  12. 12. II. GROUP FINANCIALSLife profitability - Operating result 12 Increasing life operating profitability despite challenging financial environment Life Operating Result by driver(1) Like for like (Euro m) 9M11 9M12 Technical Margin 4,558 4,365 +0.1% Investment Result 1,308 1,498 +26.2% Expenses (3,888) (3,667) +0.1% Operating Result 1,978 2,196 +16.5% Life operating ratio 0.62% 0.71% on investments(1) For the definitions refer to the related section in the backupAssicurazioni Generali Group – 9M 2012 results
  13. 13. II. GROUP FINANCIALS Life investment strategy and yields(1) 13Life segment own investments(1) (%) Relevant increase in the value of own investments Euro 249.3 bn Euro 268.6 bn reflecting the improved situation in the financial markets Further reduction of cross border exposure to peripheral EU government bond, replaced with domestic government bonds and corporate bonds Current Fixed Equity Real return(1) income Estate(2) 9M11 9M12 9M11 9M12 9M11 9M12 Euro m 7,213 7,006 530 372 515 544 % 3.3 3.2 3.0 2.9 5.4 5.6(1) For the definitions refer to the related section in the backup. Starting from 1Q12, assets and liabilities of Group’s Israeli companies have been classified as “held forsale” and are therefore excluded. Comparative figures have been restated accordingly.(2) Real estate current returns are gross of related expenses Assicurazioni Generali Group – 9M 2012 results
  14. 14. II. GROUP FINANCIALSLife New Business Annual Premium Equivalent 14 Despite the negative economic environment and the continuous focus on profitability and capital efficiency, APE slowdown is marginal (-5.3%) and the weight of annual premiums still predominant (59% of total APE) Annual Premium Equivalent (Euro m) (Euro m) APE Like for like 9M11 9M12 -5.3%(1) Italy 1,197 1,106 -7.6% France 738 742 +0.5% Germany 671 621 -7.4% CEE 111 108 -3.0% 9M11 9M12 RoE 488 447 -8.6% RoW 330 159 +1.4% Total 3,535 3,184 -5.3%(1) On like for like basisAssicurazioni Generali Group – 9M 2012 results
  15. 15. II. GROUP FINANCIALS P&C gross written premiums 15 Positive growth, especially in Commercial and Personal Non-Motor France and CEE drive the growth in Commercial Growth of Motor in Germany and SpainGross written premiums (Euro m) Like for like (Euro m) 9M11 9M12 +4.7%(1) Italy 4,975 4,963 -0.2% France 3,181 3,231 +1.6% Germany 2,500 2,687 +7.5% CEE 1,728 1,820 +8.4% RoE 3,424 3,542 +3.0% 9M11 9M12 RoW 1,134 1,202 +34.1% Total 16,942 17,444 +4.7%(1) On like for like basis Assicurazioni Generali Group – 9M 2012 results
  16. 16. II. GROUP FINANCIALS P&C profitability - Operating result 16Resilient P&C operating profitability despite nat cat development P&C Operating Result by driver(1) 9M11(2) 9M12 Like for like (Euro m) Technical Result 492 490 -5.1% Tech.R Inv.R Investment Result 862 798 -5.6% Other Other (150) (130) -14.4% Operating Result 1,204 1,158 -4.3% P&C operating ratio 3.38% 3.25% on investments(1) For the definitions refer to the related section in the backup(2) 9M11 split by driver has been changed (reclassification impact amounted to Euro 13.8 m): please refer to 9M 2012 management report for more details Assicurazioni Generali Group – 9M 2012 results
  17. 17. II. GROUP FINANCIALSP&C profitability - Net combined ratio (1/2) 17Combined ratio (%) Combined ratio by country 0.0%pts. 9M11 9M12 96.6 96.6 Italy 96.8% 97.6% +0.8%pts France 98.8% 98.5% -0.2%pts 27.2 27.2 Germany 95.6% 94.9% -0.7%pts CEE 88.7% 90.4% +1.7%pts 69.4 69.5 RoE 96.6% 96.3% -0.3%pts RoW 102.6% 97.7% -4.9%pts 9M11 Expense Loss 9M12 ratio ratio Total 96.6% 96.6% 0.0%pts Loss ratio Expense ratioAssicurazioni Generali Group – 9M 2012 results
  18. 18. II. GROUP FINANCIALSP&C profitability - Net combined ratio (2/2) 18Loss ratio (%) +0.0%pts Improved current year Loss Ratio due to 69.4 -0.9 +1.3 -0.4 69.5 good quality of pricing and discipline in underwriting Current NAT Prior Severe Nat Cat impact mainly due to 9M11 year(1) CAT years 9M12 the Northern Italy earthquake, although 9M12 70.8 2.0 -3.3 69.5 properly mitigated by reinsurance 9M11 71.6 0.6 -2.9 69.4 (1) Excluding natural catastrophesExpense ratio (%) Confirmed positive prior years 27.2 +0.0%pts 27.2 development and prudent reserving 5.9 0.0 +0.1 5.9 policy Acq. costs 21.2 Δ%pts 21.3 Adm. costs 9M11 Δ Admin Δ Acq. 9M12Assicurazioni Generali Group – FY 9M 2012 results Assicurazioni Generali Group – 2009 results
  19. 19. II. GROUP FINANCIALS P&C investment strategy and yields(1) 19 P&C segment own investments(1) (%) Slight increase of corporate bonds exposure with preference Euro 34.4 bn Euro 36.3 bn for short term and high quality bonds Maintained strong focus on asset diversification in the corporate bonds segment Continued reduction in the weight of equity and real estate exposure, in line with the de-risking policy. Current Fixed Equity Real return(1) income Estate(2) 9M11 9M12 9M11 9M12 9M11 9M12 Euro m 665 685 84 63 375 330 % 2.9 2.9 2.2 2.1 6.4 6.1(1) For the definitions refer to the related section in the backup. Starting from 1Q12, assets and liabilities of Group’s Israeli companies have been classified as “held forsale” and are therefore excluded. Comparative figures have been restated accordingly.(2) Real estate current returns are gross of related expenses Assicurazioni Generali Group – 9M 2012 results
  20. 20. II. GROUP FINANCIALSFinancial segment 20 Operating result (Euro m) Net fees and commissions (Euro m) +17.1%(1) -1.3%(2) 9M11 9M12 9M11 9M12(1) On like for like basis (2) On like for like basis Third party AUM(3) (Euro bn) Cost/income ratio (%) +10.6%(4) -3.0%pts(5) FY11 9M12 9M11 9M12(3) Including only third party AUM related to financial segment companies (5) On like for like basis(4) On like for like basisAssicurazioni Generali Group – 9M 2012 results
  21. 21. Agenda 21 II. Group financials Profit & loss review Life and P&C segment profitability Balance sheet and solvency IAssicurazioni Generali Group – 9M 2012 results
  22. 22. II. GROUP FINANCIALSIFRS Shareholders’ equity roll forward 22(Euro m) +24.1% 1,133 60 4 19,215 2,918 (75) (311) 15,486 Shareholders’ Δ in AFS 9M 2012 Δ Currency Δ Cash Flow Dividend Other Shareholders’ Equity FY11 Reserve Net Result Translation Hedge Res. Equity 9M12 Reserve Change in AFS reserve (Euro m) 2,624 763 99 195 (2,156) AFS Reserve Impact Equity Impact Bond Other AFS Reserve FY11 Investments Investments 9M12Assicurazioni Generali Group – 9M 2012 results
  23. 23. II. GROUP FINANCIALSSolvency I according to Italian regulation 23(Euro bn) Required margin Available margin 117% Main drivers of change 140% Available margin Consolidated result: +1.3 Financial markets and other elements: +3.1 Cap on locally admitted unrealized gains on real estate: +0.5 Required Margin +0.5 FY11 9M12Assicurazioni Generali Group – 9M 2012 results
  24. 24. Agenda 24 III. Final RemarksAssicurazioni Generali Group – 9M 2012 results
  25. 25. III. FINAL REMARKSFinal remarks 25 Excellent underlying P&C performance excluding Nat Cat events Robust Life profitability in a challenging market environment Restored balance sheet & capital position Outlook of 2012 Operating Result confirmedAssicurazioni Generali Group – 9M 2012 results
  26. 26. 26 IV. Backup P&L and Balance Sheet DefinitionsAssicurazioni Generali Group – 9M 2012 results
  27. 27. 27 IV. Backup P&L and Balance Sheet DefinitionsAssicurazioni Generali Group – 9M 2012 results
  28. 28. IV. BACK UP 9M12 Total gross written premiums 28 (Euro m) Total gross written premiums Gross life written premiums(1) Gross P&C written premiums Country YoY Weight on YoY Weight on YoY Weight on GWP % increase total GWP GWP % increase total GWP GWP % increase total GWP (2) (2) (2) Italy 13,628 - 1.7% 26.7% 8,665 - 2.5% 25.8% 4,963 - 0.2% 28.4% France 10,537 + 0.2% 20.6% 7,306 - 0.4% 21.7% 3,231 + 1.6% 18.5% Germany 12,801 + 3.7% 25.1% 10,114 + 2.7% 30.1% 2,687 + 7.5% 15.4% CEE 3,065 + 5.5% 6.0% 1,245 + 1.6% 3.7% 1,820 + 8.4% 10.4% RoE 7,661 + 1.0% 15.0% 4,120 + 0.7% 12.3% 3,542 + 3.0% 20.3% Of which: Spain 1,809 - 0.7% 3.6% 739 - 4.2% 2.2% 1,070 + 1.9% 6.1% Austria 1,951 - 2.2% 3.8% 856 - 7.5% 2.5% 1,095 + 2.4% 6.3% Switzerland 1,465 + 4.0% 2.9% 827 + 5.0% 2.5% 639 + 2.7% 3.7% RoW 3,253 + 16.5% 6.4% 2,050 + 7.8% 6.1% 1,202 + 34.1% 6.9% Total 50,945 + 1.8% 100.0% 33,500 + 0.4% 100.0% 17,444 + 4.7% 100.0%(1) Including investment contracts(2) On like for like basis Assicurazioni Generali Group – 9M 2012 results
  29. 29. IV. BACK UP9M12 Life premiums by country and business line(1) 29 Savings and Unit/Index (Euro m) pension Protection linked Total YoY % YoY % YoY % YoY % GDP increase(2) GDP increase(2) GDP increase(2) GDP increase(2) Italy 7,867 - 2.6% 172 + 11.0% 388 - 11.6% 8,427 - 2.8% France 5,465 + 7.9% 1,043 + 0.6% 622 - 42.1% 7,130 - 0.6% Germany 4,627 + 4.7% 3,030 + 1.9% 2,457 + 0.0% 10,114 + 2.7% CEE 758 + 2.3% 181 + 10.7% 306 - 4.9% 1,245 + 1.6% RoE 1,568 - 3.6% 651 + 12.1% 1,883 - 2.0% 4,102 - 0.6% Of which: Spain 584 - 4.0% 149 - 3.1% 6 - 37.6% 739 - 4.2% Austria 463 - 10.7% 188 + 2.4% 192 - 9.8% 843 - 7.8% Switzerland 140 + 24.1% 96 + 14.5% 591 + 0.0% 827 + 5.0% RoW 876 + 4.1% 495 + 17.0% 33 + 2.4% 1,404 + 8.3% Total Life gross 21,161 + 1.9% 5,572 + 4.4% 5,689 - 9.0% 32,422 + 0.2% direct premiums (1) Including investment contracts (2) On like for like basisAssicurazioni Generali Group – 9M 2012 results
  30. 30. IV. BACK UP 9M12 P&C premiums by country and business line 30 Accident/(Euro m) Motor (1) Personal Commercial Health Total YoY % YoY % YoY % YoY % increase(2 YoY % GDP increase(2) GDP increase(2) GDP increase(2) GDP ) GDP increase(2) Italy 2,376 - 1.0% 592 + 2.5% 1,092 - 2.4% 813 - 0.7% 4,874 - 0.9% France 853 - 2.4% 1,140 + 3.9% 665 + 4.4% 370 + 1.9% 3,027 + 1.9% Germany 1,066 + 7.7% 982 + 5.2% 244 + 8.6% 390 + 11.8% 2,682 + 7.4% CEE 705 - 5.9% 264 + 2.7% 475 + 12.2% 340 + 60.1% 1,784 + 8.4% RoE 1,306 + 3.5% 792 + 4.0% 769 - 2.0% 553 + 5.2% 3,420 + 2.6% Of which: Spain 291 + 8.7% 310 + 8.2% 302 - 9.5% 139 + 1.4% 1,042 + 1.6% Austria 426 + 1.3% 246 + 3.0% 296 + 3.6% 114 + 2.5% 1,081 + 2.4% Switzerland 329 + 2.8% 152 - 1.3% 3 - 8.3% 152 + 6.2% 636 + 2.5% RoW 678 + 24.2% 15 + 15.6% 336 + 41.5% 100 + 60.1% 1,129 + 31.5%Total P&C 6,984 + 2.4% 3,785 + 4.0% 3,582 + 4.6% 2,566 + 10.1 16,917 + 4.3%grossdirect premiums(1) Including fleets(2) On like for like basis Assicurazioni Generali Group – 9M 2012 results
  31. 31. IV. BACK UP Life new business: APE 31(Euro m) APE Annual Premiums Single Premiums Historical Like for Historical Like for Historical Like for 9M11 9M12 like 9M11 9M12 like 9M11 9M12 likeItaly 1,197 1,106 -7.6% -7.6% 795 730 -8.2% -8.2% 4,023 3,765 -6.4% -6.4%France 738 742 +0.5% +0.5% 215 225 +4.5% +4.5% 5,228 5,171 -1.1% -1.1%Germany 671 621 -7.4% -7.4% 487 409 -15.9% -15.9% 1,839 2,119 +15.2% +15.2%CEE 111 108 -2.3% -3.0% 94 100 +6.5% +6.3% 165 78 -52.4% -54.1%RoE 488 447 -8.4% -8.6% 326 298 -8.7% -8.9% 1,622 1,494 -7.9% -7.9% Spain 89 79 -10.5% -10.5% 39 33 -16.0% -16.0% 493 463 -6.2% -6.2% Austria 85 73 -14.7% -14.7% 65 57 -13.3% -13.3% 198 160 -19.3% -19.3% Switzerland 58 70 +20.4% +18.9% 54 63 +16.4% +15.0% 44 75 +69.7% +67.6%RoW 330 159 -51.8% +1.4% 266 131 -50.5% +4.4% 648 279 -56.9% -10.8%Total 3,535 3,184 -9.9% -5.3% 2,183 1,893 -13.3% -7.4% 13,524 12,906 -4.6% -2.2% Assicurazioni Generali Group – 9M 2012 results
  32. 32. IV. BACK UPLife net inflows by country 32 Country 9M11 9M12 Like for like Δ Italy 544 (535) n.m. France 423 (1,949) n.m. Germany 2,868 3,333 + 16.2% CEE 364 282 - 20.2% RoE 1,199 (611) n.m. Of which: Spain (146) (1,709) n.m. Austria 183 115 - 37.4% Switzerland 357 476 + 30.1% RoW 1,098 623 + 12.6% TOTAL 6,496 1,142 - 81.1%Assicurazioni Generali Group – 9M 2012 results
  33. 33. IV. BACK UPRatios 33Life - Expense ratio (%) P&C - Combined ratio (%) 96.6% 96.6% Expense 27.2 27.2 ratio Loss 11.3 11.2 69.4 69.5 ratio 9M11 9M12 9M11 9M12 Total - Expense ratio (%) 16.3 16.4 9M11 9M12Assicurazioni Generali Group – 9M 2012 results
  34. 34. IV. BACK UPRatios by country 34(%) ITA FRA GER CEE RoE SPA AUT SWI RoW ConsolidatedP&C Loss ratio 65.9 69.1 70.0 9M12 77.4 71.8 66.5 52.6 67.8 59.3 69.5 9M11 75.7 72.0 66.3 54.9 68.5 67.0 68.5 70.7 64.9 69.4P&C Expense ratio 28.1 27.5 26.0 9M12 20.2 26.7 28.4 37.8 28.5 38.5 27.2 9M11 21.1 26.8 29.4 33.8 28.1 26.9 27.4 25.8 37.8 27.2P&C Combined ratio 94.0 96.6 96.0 9M12 97.6 98.5 94.9 90.4 96.3 97.7 96.6 9M11 96.8 98.8 95.6 88.7 96.6 94.0 95.8 96.4 102.6 96.6Life expense ratio by country 4.8 14.6 18.8 9M12 10.3 9.0 11.5 19.9 12.8 15.1 11.2 9M11 10.2 8.9 12.0 19.1 12.4 4.4 13.1 20.3 15.5 11.3Assicurazioni Generali Group – 9M 2012 results
  35. 35. IV. BACK UPCombined ratio reconciliation 35(Euro m) 9M11 9M12 A Net earned premiums (net of consolidation adjustments) 15,367 15,763 B Consolidated net claims 10,668 10,949 Consolidated acquisition costs 3,260 3,358 Consolidated administration costs 959 983 Non insurance activity related administration costs(1) 46 56 Insurance activity related consolidated administration costs 913 927 C Total acquisition and administration costs 4,173 4,284 B/A Loss ratio 69.4 69.5 C/A Expense ratio 27.2 27.2(B+C)/A Combined ratio 96.6 96.6 D Other technical items 34.6 40.2A-B-C-D Technical result 492.2 489.8 (1) Administration expenses related to service companies, real estate and other companies not belonging to P&C segmentAssicurazioni Generali Group – 9M 2012 results
  36. 36. IV. BACK UP Focus on operating result 36Operating result by country(1) (Euro m) Operating result breakdown(1) (Euro m) Like for 9M11 9M12 like ∆ 166 Italy 1,325 1,432 +8.1% 275 France 401 529 +32.2% Germany 471 463 -1.8% CEE 351 349 -0.6% 98 991 0 RoE 659 700 +6.3% 181 39 267 187 18 RoW 254 201 +23.7% 195 348 335 53 236 136 150 Operating result(1) 3,461 3,674 +9.1% -2 Italy France Germany CEE RoE RoW Op. holding expenses (214) (221) +3.8% Consolidation Adj. (147) (161) +9.8% Life P&C Financial Total operating 3,100 3,292 +9.4% result(1) Operating result = operating result of life, P&C and financial segments, before holding expenses and consolidation adjustments Assicurazioni Generali Group – 9M 2012 results
  37. 37. IV. BACK UPOperating result by country 37Life operating result by market (Euro m) P&C operating result by market (Euro m) 9M11 9M12 Like for 9M11 9M12 Like for like ∆ like ∆ Italy 933 991 +6.2% Italy 297 275 -7.3% France 208 348 +67.3% France 192 181 -5.8% Germany 238 236 -0.8% Germany 194 187 -3.7% CEE 110 136 +23.9% CEE 224 195 -12.8% RoE 300 335 +11.6% RoE 259 267 +3.2% Of which: Of which: Spain 80 88 +10.3% Spain 112 114 +1.8% Austria 52 51 -3.1% Austria 73 67 -9.4% Switzerland 101 90 -11.1% Switzerland 35 38 +8.2% RoW 188 150 +56.9% RoW 38 53 +18.9% Total 1,978 2,196 +16.5% Total 1,204 1,158 -4.3% Assicurazioni Generali Group – 9M 2012 results
  38. 38. IV. BACK UP Reclassified P&L account 38(Euro m) Total 9M11 9M12Operating result 3,100 3,292 Net earned premiums 46,692 45,847 Net insurance benefits and claims (39,040) (46,972) Acquisition and administration costs (8,609) (8,487) Net fee and commission income and net income from financial service activities 693 590 Operating income from other financial instruments 7,907 8,325 Operating income from financial instruments at fair value through profit or loss (4,105) 4,463 Of which net income from fin. assets and liabilities where the risk is borne by the policyholders (4,147) 3,409 Operating holding expenses (214) (221) Net other operating expenses (224) (253)Non-operating result (1,463) (1,046) Non-operating income from other financial instruments (714) (324) Non-operating income from financial instruments at fair value through profit or loss (9) 20 Non-operating holding expenses (496) (496) Interest expenses on financial debt (484) (493) Other non-operating holding expenses (12) (3) Net other non-operating expenses (244) (246)Earnings before taxes 1,637 2,246Income taxes (584) (869)Result from discontinued operations 0 (22)Consolidated result of the period 1,053 1,355Result of the period attributable to minority interests (228) (222)Result of the period 825 1,133 Assicurazioni Generali Group – 9M 2012 results
  39. 39. IV. BACK UP Reclassified P&L account by segment – 9M 2011 39 Unallocated holding Consolidation (Euro m) Life Non life Financial(1) expenses adjustments Total Operating result 1,978 1,204 279 (214) (147) 3,100 Net earned premiums 31,324 15,367 - - 0 46,692 Net insurance benefits and claims (28,357) (10,668) - - (15) (39,040) of which var. of provisions related to unit linked business 2,997 - - - - 2,997 Acquisition and administration costs (3,732) (4,187) (691) - - (8,609) Net fee and commission income and net income from 126 - 657 - (90) 693 financial service activities Operating income from other fin, Instruments 6,862 837 237 - (30) 7,907 Operating income from fin, Instruments at fair value through (4,222) 24 93 - - (4,105) profit or loss of which net income from fin. assets and liabilities where the risk is (4,147) - - - - (4,147) borne by the policyholders Operating holding expenses - - - (214) - (214) Net other operating expenses (24) (171) (17) - (12) (224) Non-operating result (482) (517) 35 (496) (3) (1,463) Non-operating income from other fin. instr. (390) (400) 76 - - (714) Non-operating income from fin. instr.at fair value through - (9) - - - (9) profit or loss Non-operating holding expenses - - - (496) - (496) Net other non-operating expenses (92) (107) (42) - (3) (244) Earnings before taxes 1,496 687 314 (710) (150) 1,637(1) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Report Assicurazioni Generali Group – 9M 2012 results
  40. 40. IV. BACK UP Reclassified P&L account by segment – 9M 2012 40 Unallocated holding Consolidation(Euro m) Life Non life Financial(1) expenses adjustments TotalOperating result 2,196 1,158 320 (221) (161) 3,292 Net earned premiums 30,084 15,763 - - 0 45,847 Net insurance benefits and claims (36,023) (10,949) - - (1) (46,972) of which var. of provisions related to unit linked business (3,279) - - - - (3,279) Acquisition and administration costs (3,555) (4,295) (637) - - (8,487) Net fee and commission income and net income from 70 - 621 - (101) 590 financial service activities Operating income from other fin. Instruments 7,314 764 297 - (51) 8,325 Operating income from fin. Instruments at fair value through 4,322 35 106 - - 4,463 profit or loss of which net income from fin.assets and liabilities where the risk is 3,409 - - - - 3,409 borne by the policyholders Operating holding expenses - - - (221) - (221) Net other operating expenses (17) (160) (67) - (9) (253)Non-operating result (341) (173) (26) (496) (11) (1,046) Non-operating income from other fin.instr. (227) (91) (5) - (2) (324) Non-operating income from fin. instr.at fair value through - 20 - - - 20 profit or loss Non-operating holding expenses - - - (496) - (496) Net other non-operating expenses (114) (102) (21) - (9) (246)Earnings before taxes 1,855 986 294 (717) (172) 2,246(1) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Report Assicurazioni Generali Group – 9M 2012 results
  41. 41. IV. BACK UPFocus on impairments(1) 41(Euro m) Life P&C Financial TotalNet impairments 9M11 9M12 9M11 9M12 9M11 9M12 9M11 9M12 Equity instruments 565 461 167 99 1 3 733 563 Fixed income 1,690 163 196 16 3 6 1,889 184 Real estate 22 36 (1) 5 0 0 21 41 Other investments(2) 319 8 133 91 8 7 459 106Total net impairments 2,596 667 495 212 12 16 3,103 894Of whichOperating net 2,301 509 0 0 8 13 2,308 522impairmentsNon operating net 295 158 495 212 5 3 794 372impairments(1) Net of reverse impairments(2) Including subsidiaries and associated companies Assicurazioni Generali Group – 9M 2012 results
  42. 42. IV. BACK UP Focus on realised gains(1) 42 (Euro m) Life P&C Financial Total 9M11 9M12 9M11 9M12 9M11 9M12 9M11 9M12 Net realized gains on Equities 397 124 14 (20) 1 1 440 106 Realised gains 1,018 443 136 82 2 1 1,183 527 Realised losses (621) (319) (122) (102) (1) 0 (744) (421) Net realized gains on Fixed Income 790 238 21 43 2 (1) 813 280 Realised gains 1,165 2,308 80 173 4 6 1,249 2,487 Realised losses (375) (2,070) (59) (130) (2) (7) (436) (2,207) Net realized gains on Real Estate 73 70 73 72 0 0 146 142 Realised gains 82 76 73 76 0 0 155 153 Realised losses (9) (7) 0 (4) 0 0 (9) (11) Net realized gains on Other(2) 110 11 (14) 26 81 (2) 177 34 Realised gains 142 11 1 26 81 1 224 38 Realised losses (32) 0 (15) 0 0 (3) (47) (3) Total net realized gains 1,370 443 94 121 84 (2) 1,576 561 Operating net realized gains 1,465 512 0 0 3 0 1,495 513 Non operating net realized gains (95) (69) 94 121 81 (2) 80 48(1) Excluding financial instruments at fair value through profit and loss(2) Including subsidiaries and associated companies Assicurazioni Generali Group – 9M 2012 results
  43. 43. IV. BACK UPFocus on 3Q12 results 43 (Euro m) 3Q12/ 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 Life premiums(1) 12,340 11,503 10,543 12,009 12,815 10,415 10,271 +0.5%(2) P&C premiums 6,792 5,219 4,931 5,823 6,999 5,419 5,027 +3.4%(2) Total premiums 19,131 16,722 15,474 17,832 19,814 15,834 15,298 +1.5%(2) Life net inflows 2,819 1,999 1,678 (651) 760 (1,138) 1,521 +2.1%(2) Combined ratio % 96.1% 96.9% 96.7% 96.4% 95.4% 98.8% 95.7%(3) -1.0 pts. Life operating result 881 782 315 564 819 832 545 +92.1%(2) P&C operating result 393 406 405 357 411 344 404 -2.0%(2) Financial operating 115 96 68 63 126 85 109 +62.4%(2) result Operating holding expenses and cons. (133) (132) (96) (155) (126) (148) (109) +14.0%(2) adj. Total operating result 1,256 1,153 692 827 1,230 1,113 949 +43.1%(2) Net result 616 190 20 31 567 274 291 n.m. (1) Including investment contracts (2) On like for like basis (3) 94.8% excluding CATAssicurazioni Generali Group – 9M 2012 results
  44. 44. IV. BACK UP Consolidated balance sheet 44 (Euro bn) FY11 9M12 (Euro bn) FY11 9M12 Shareholders’ Equity Intangible assets 10.4 9.9 (Group share) 15.5 19.2 Minority interests 2.6 2.9 Investments 346.7 360.0 Shareholders’ Equity 18.1 22.1 Cash 25.6 23.9 Operating debt 46.9 50.8 Other credits 11.3 12.5 Financial debt 12.2 12.2 Tangible assets 4.9 4.9 Technical reserves 325.0 328.2 Payables and other provisions 9.0 9.6 Other assets (1) 24.2 38.2 Other liabilities 11.8 26.5 Total Liabilities and Total Assets 423.1 449.4 Shareholders’ Equity 423.1 449.4(1) Including reinsurance amounts of technical reserve, deferred tax assets, deferred acquisition costs and other assets Assicurazioni Generali Group – 9M 2012 results
  45. 45. IV. BACK UP9M12 Assets Under Management 45 Total Euro 474.4 bn Third parties AUM Unit Linked Available for sale Loans Fixed income Other 60.5% 21.7% instruments 3.8% Real Estate 79.7% 3.9% Real Estate Group 4.6% participations 0.6% Equity Held to maturity 4.8% 2.4% Fin. Instr. at fair value thr. P&L Cash & equival. “Own Investments”(1) Cash & equival. 3.9% 7.1% 7.1%(1) For the definitions refer to the related section in the backupAssicurazioni Generali Group – 9M 2012 results
  46. 46. IV. BACK UPInvestment yields(1) 46 Bonds and Loans Equities Investment Other Total properties % return 9M11 9M12 9M11 9M12 9M11 9M12 9M11 9M12 9M11 9M12 LIFE Current 3.3% 3.2% 3.0% 2.9% 5.4% 5.6% 2.0% 1.4% 3.3% 3.1% Total P&L 2.7% 3.4% 0.7% 1.6% 6.0% 5.9% 1.5% 2.0% 2.7% 3.3% Comprehensive 1.4% 9.6% -14.4% 7.7% 6.1% 5.6% 1.5% 2.0% 0.5% 8.8% NON LIFE Current 2.9% 2.9% 2.2% 2.1% 6.4% 6.1% 2.1% 1.4% 3.3% 3.2% Total P&L 2.1% 3.1% -1.8% -1.8% 7.7% 7.4% 2.1% 1.8% 2.5% 3.1% Comprehensive 1.4% 7.6% -9.5% 4.0% 7.7% 7.3% 2.1% 1.7% 1.3% 6.5% TOTAL Current 3.2% 3.1% 3.2% 2.7% 5.7% 5.7% 1.5% 1.0% 3.2% 3.0% Total P&L 2.6% 3.3% 0.3% 1.1% 6.6% 6.3% 1.6% 1.4% 2.6% 3.1% Comprehensive 1.4% 9.1% -13.2% 7.0% 6.7% 6.1% 1.6% 1.4% 0.7% 8.0% (1) For the definitions refer to the related section within the backup. Starting from 9M 2011 Israeli participating portfolio has been reclassified in unit-linked business. Comparative numbers have been restated accordinglyAssicurazioni Generali Group – 9M 2012 results
  47. 47. IV. BACK UP3Q12 IFRS Shareholders’ equity roll forward 47IFRS Shareholders’ equity roll forward (Euro m) +10.7% 1,584 291 6 19,215 17,359 (14) (11) 15,486 Shareholders’ Shareholders‘ Δ in AFS 3Q 2012 Δ Currency Δ Cash Flow Other Shareholders’ Equity FY11 Equity 1H12 Reserve Net Result Translation Hedge Equity 9M12 Reserve Reserve Change in AFS reserve (Euro m) 211 64 763 1,308 (821) AFS Reserve Impact Bond Impact Equity Other AFS Reserve 1H12 Investments Investments 9M12Assicurazioni Generali Group – 9M 2012 results
  48. 48. IV. BACK UPSolvency I according to Italian regulation 48(Euro bn) Required margin Available margin 130% Main drivers of change 140% Available margin Consolidated result: +0.3 Financial markets and other elements: +1.9 Required Margin +0.2 1H12 9M12Assicurazioni Generali Group – 9M 2012 results
  49. 49. IV. BACK UP Total comprehensive income(1) 49(Euro m) +4,000 m -1,00 m 3M10 6M10 9M10 12M10 3M11 6M11 9M11 12M11 3M12 6M12 9M12 1,308 1,064 2,096 1,452 270 466 (860) (1,166) 2,530 2,186 4,036(1) For definitions refer to the related section in the backup Assicurazioni Generali Group – 9M 2012 results
  50. 50. IV. BACK UPAFS reserve breakdown 50 (Euro m) FY11 1H12 9M12 Fixed income instruments (1,780) (464) 844 Government (1,216) (445) 377 Corporate (564) (20) 467 Equity (382) (398) (187) Investment funds and other 7 42 106 TOTAL (2,156) (821) 763Assicurazioni Generali Group – 9M 2012 results
  51. 51. 51 IV. Backup P&L and Balance Sheet DefinitionsAssicurazioni Generali Group – 9M 2012 results
  52. 52. IV. BACK UPDefinitions: P&L and balance sheet (1/2) 52 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 Total P&L return: = current return + harvesting return (net realized gains, net impairments and net unrealized gains reported in P&L) 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 adjustmentsAssicurazioni Generali Group – 9M 2012 results
  53. 53. IV. BACK UPDefinitions: P&L and balance sheet (2/2) 53 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 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 – 9M 2012 results
  54. 54. Investor Relations Team 54 Salvatore Colotti (Tel.: +39-040-671317) Head of Investor Relations & Head of Life Technical Department Email: salvatore_colotti@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 – 9M 2012 results
  55. 55. Disclaimer 55 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 charged with 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 – 9M 2012 results
  56. 56. Generali Group9M 2012 Results November 9, 2012

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