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Generali Group Interim Results 09
 

Generali Group Interim Results 09

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    Generali Group Interim Results 09 Generali Group Interim Results 09 Presentation Transcript

    • Generali Group Interim results 2009 Venice, July 31, 2009
    • Agenda 2 I. Strategic Overview & 1H 2009 at a Glance II. Group Financials III. Final remarks IV. Backup Assicurazioni Generali Group – Interim results 2009
    • Agenda 3 I. Strategic Overview & 1H 2009 at a Glance Assicurazioni Generali Group – Interim results 2009
    • I. STRATEGIC OVERVIEW & 1H 2009 AT A GLANCE Macroeconomic and financial market outlook 4 World growth 10 Emerging and developing economies Economic activity seems 8 World to have hit the bottom, 6 credit collapse avoided Advanced economies Forecasts have been 4 revised upwards for the 2 first time (OECD) or 0 “down for the last” 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 Year (Prometeia) -2 Leading indicators -4 anticipate a flattening-out -6 of growth and a turning of the cycle... MSCI EMU Total Return Euro Aggregate CBS (1) 160 5 ...yet this does not mean 140 4,5 the recovery will be as 120 4 steep as the recession: a 3,5 100 long period of sub-par 3 80 2,5 growth is possibly in the 60 2 offing 1,5 40 Inflation has given way to 1 20 deflationary signals but it 0,5 0 0 remains a threat in the 8 6 01 8 9 01 7 2 01 4 3 02 3 6 02 1 9 02 0 2 02 1 3 03 3 6 03 0 9 03 9 2 03 5 3 04 7 6 04 2 9 04 9 1 04 8 2 05 2 6 05 0 8 05 4 1 05 3 2 06 1 5 06 8 8 06 2 1 06 3 2 07 0 5 07 7 8 07 1 1 07 2 2 08 9 5 08 6 8 08 0 1 08 3 2 09 7 5 09 medium term 1 /0 /2 0 1 /0 /2 0 1 /1 /2 0 1 /0 /2 0 1 /0 /2 0 1 /0 /2 0 1 /1 /2 0 1 /0 /2 0 1 /0 /2 0 1 /0 /2 0 0 /1 /2 0 0 /0 /2 0 0 /0 /2 0 0 /0 /2 0 2 /1 /2 0 2 /0 /2 0 0 /0 /2 0 3 /0 /2 0 2 /1 /2 0 2 /0 /2 0 3 /0 /2 0 2 /0 /2 0 2 /1 /2 0 2 /0 /2 0 3 /0 /2 0 2 /0 /2 0 2 /1 /2 0 2 /0 /2 0 2 /0 /2 0 2 /0 /2 0 2 /1 /2 0 2 /0 /2 0 2 /0 /2 0 (1) Barclays Euro Aggregate, corporate Assicurazioni Generali Group – Interim results 2009
    • I. STRATEGIC OVERVIEW & 1H 2009 AT A GLANCE 2009: a challenging year for the insurance industry 5 Life insurance trends & outlook (GWP) – Europe (%) After the peak of the 30% France Germany Italy financial crisis, life 25% 20% insurance shows signs of 15% recovery, in Italy and 10% France, especially in 5% bancassurance 0% -5% This life market trend is -10% driven by “traditional -15% products”, as they combine -20% attractive yields with a safe 2004 2005 2006 2007 2008 2009 investment. Unit-linked demand is flat due to P&C insurance trends & outlook (GWP) – Europe (%) financial market volatility 6% France Germany Italy Non-life negatively affected by persisting phase of strong competition in tariffs 4% and by economic downturn, peaking in the first months 2% of 2009 Some signs of stabilisation 0% and increasing market discipline in recent months -2% 2004 2005 2006 2007 2008 2009 Source: National Associations up to 2008: For 2009 estimates: ANIA for Italy, GDV for Germany, FFSA for Life and R&D for non life in France. Non-life doesn’t include Health in Germany and France Assicurazioni Generali Group – Interim results 2009
    • I. STRATEGIC OVERVIEW & 1H 2009 AT A GLANCE 1H 2009 results at a glance 6 (Euro m) 1Q 2009 1H 2009 ∆ Euro m Operating Result 1,009 1,934 +925 Net Result 104 504 +400 Shareholders’ Equity 11,013 11,612 +599 (1) Following the announcement of the exercise of the right to sell its interest at the end of March, Intesa Vita qualified as a non-current asset held for sale and discontinued operations. Therefore assets, liabilities and result figures presented for our continuing operations do not include Intesa Vita. All the significant changes to comparative figures are presented on historical and homogenous basis. Assicurazioni Generali Group – Interim results 2009
    • I. STRATEGIC OVERVIEW & 1H 2009 AT A GLANCE The financial and economic crisis puts challenges to the Insurance industry 7 Life business Strong equity market volatility reduces unit linked demand and makes hedging for variable annuities very risky Amid the increasing propensity of the population to save, individuals face higher uncertainty regarding asset allocation Low interest rates, while increasing competitive attractiveness of insurance products, reduce simultaneously margin spreads P&C business Lower disposable income negatively influences retail P&C demand Car sales recession reduces primary demand and price competition drives average premiums down in Motor; claims are generally affected by higher moral hazard and low inflation reflected in lower retail P&C growth In commercial lines the economic recession reduces number of risks, slows down insurance demand and increases moral hazard Generali Group Effective and diversified multi-channel distribution strategy with strong positioning incidence of proprietary channels No exposure to variable annuities and lower incidence of unit linked Higher incidence of recurrent premiums with guarantee allow for stable cash flows Diversified business mix in P&C with lower than market Motor exposure and balanced geographical presence Assicurazioni Generali Group – Interim results 2009
    • I. STRATEGIC OVERVIEW & 1H 2009 AT A GLANCE Generali’s response to the crisis 8 Leverage Operational multichannel excellence distribution Market programme Effectiveness Process Merger Generali Customer retention campaigns Efficiency Volksfürsorge Speed-up time to Merger Toro Customer Alleanza market centric CEE focus from approach growth to profitability Technical Discipline Motor pricing and underwriting Claims handling and bodyshop management Management and control of discount policy De-risking initiatives Assicurazioni Generali Group – Interim results 2009
    • I. STRATEGIC OVERVIEW & 1H 2009 AT A GLANCE Strategic overview: focus on core European markets 9 Italy Life: Development of product lines dedicated to young generation through the creation of GenertelLife (specialized in low cost products sold through web) and to third age segments Integration of life & non life offer Portfolio protection through up-selling initiatives Non Life: Value accretive potential on retail/middle market segments through development of integrated life & non life solutions for SMEs and use of salaried network to offer products dedicated to households; consolidation of Corporate lines underwriting Centralised management of motor pricing strategy and discount policy Reduction of average claims’ costs through use of preferred body shops network Restructuring initiatives: Further Group structure streamlining after Alleanza / Toro combination Continuing migration towards integrated Group IT systems Centralised administration of life and non life portfolios Germany Life and Health: Leveraging the strong distribution power to beat average market growth Leveraging leadership position in State supported pension business (Riester, Rürup) Non Life: Motor Pricing and underwriting: retention based pricing, credit rating information supporting UW decisions, dual product offer, new discount mgmt model Claims Management: exploit synergies of claims factory, benefit from channeling claims into the largest bodyshop network in the country Higher than market growth in Non Motor profitable business Special initiatives: Project Neue Generali well on track Merged company since beginning of 2009, without market share loss IT Migration for new business completed, portfolio migration on track Assicurazioni Generali Group – Interim results 2009
    • I. STRATEGIC OVERVIEW & 1H 2009 AT A GLANCE Strategic overview: focus on core European markets 10 France Life: 34.7% drop in Unit linked vs. 37% market reduction 9% premium increase in traditional lines Non Life: CoR impacted by early year’s big claims (i. e. Klaus and Quinten) and May hails Pruning of sub-performing portfolios and tariff increases in all lines Kareo bodyshop network in claims handling tops 50% canalisation rate Special initiatives: “Ambition Generali” project to put customer centricity as a top priority Step-up Internet capabilities, as a tool to support distribution in all key lines Life: CEE GWP show resilience to crisis Implement life products with riders to increase margin Non Life: Develop new segmented tariffs for Motor business to maintain profitability Common platform for P&C medium and large risks Apply best practices in Claims Handling through skills and competence sharing Special initiatives: Shift of the focus to profitability: cost savings at Holding level, -20% in 2009; efficiency enhancement in Hungary with savings up to 5% of general expenses Accelerated integration in Czech Rep. and Slovakia and shared back offices in Slovenia and Croatia Pooling reinsurance capacity Further development of direct channel in Hungary (Genertel.hu) Assicurazioni Generali Group – Interim results 2009
    • Agenda 11 II. Group Financials Profit & loss review Shareholders equity & Solvency I Life & P&C profitability RoEV Capital update Assicurazioni Generali Group – Interim results 2009
    • II. GROUP FINANCIALS Revenue development by segment 12 1H 1H ∆ historical ∆ like for like (Euro m) 2008 2009 (%) (%) Gross written premiums 36,792 34,683 -5.7 -1.5(2) Life(1) 25,002 23,124 -7.5 -1.9(2) P&C 11,790 11,558 -2.0 -0.9 Life Annual Premium Equivalent 2,658 2,393 -10.0 -9.6 (1) Including investment contracts for 987.2 m in 1H 2009 and 2,219.8 m in 1H 2008 (2) Excluding Intesa Vita in 1H 08 and 1H 09, according to IFRS 5 treatment for discontinued operations Assicurazioni Generali Group – Interim results 2009
    • II. GROUP FINANCIALS Operating result by segment 13 Operating result by segment (Euro m) (1) (%) Life 1,269 operating result 1,516 -13.4 P&C 710 operating result 1,160 -38.8 Financial services 223 operating result 196 +13.6 Operating holding -127 +17.8 expenses -154 Consolidation -141 Impairments: adjustments Euro 602 m +35.9 -221 Consolidated 1,934 -21.0 operating result 2,498 1H 09 1H 08 (1) Excluding Intesa Vita in 1H 08 and 1H 09, according to IFRS 5 treatment for discontinued operations. On historical terms, the variations would be -16.3% for the life operating result and -22.6% for the consolidated operating result Assicurazioni Generali Group – Interim results 2009
    • II. GROUP FINANCIALS From operating result to net result 14 (Euro m) 1H 2008 1H 2009 (%) Consolidated operating result 2,498 1,934 -21.0(1) Non operating investment income 285 (527) Of which impairments (203) (409) Non-operating holding expenses (345) (349) Interest expenses on financial debt (332) (334) Other non-operating holding expenses (12) (15) Net other non operating expenses (62) (170) Consolidated non operating result (122) (1,045) n.m. Consolidated result of the period before taxes and 2,376 889 -61.8(1) minority interests Income taxes (605) (165) Result from discontinued operations (Intesa Vita) - 39 Minority interests (311) (259) Net result of the period 1,460 504 -65.5 (1) Excluding Intesa Vita in 1H 08 and 1H 09, according to IFRS 5 treatment for discontinued operations. On historical terms, the variation would be -22.6% for total operationg profit and -62.6% for consolidated result of the period before taxes and minority interests Assicurazioni Generali Group – Interim results 2009
    • II. GROUP FINANCIALS Total comprehensive income(1) 15 Total Comprehensive Income – Group Share 1H 08 FY 08 1H 09 Net unrealized gains and losses on investments a1 -2,939 -3,130 217 available for sale a2 Other(2) -54 -68 -110 Total other comprehensive income (OCI) – A -2,994 -3,198 107 Group share B Net result of the period - Group share 1,460 861 504 C=A+B Total comprehensive income – Group share -1,534 -2,337 611 (1) 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 (2) Including mainly net unrealised gains and losses on hedging derivatives, foreign currency translations differences and share of other comprehensive income of associates Assicurazioni Generali Group – Interim results 2009
    • II. GROUP FINANCIALS Investments 16 (Euro bn) +4.0% 388.5(1) 373.7(1) Third parties 75.5 68.6 AUM 32.8 35.1 Unit Linked Fixed income instruments (3) Other (4) 80.8% 6.0% “Own 272.3 277.9 Real Estate (5) Investments” (2) 5.2% Equity 8.0% 6.8% net of hedging FY 08 1H 09 (1) Excluding Intesa Vita in FY 08 and 1H 09, according to IFRS 5 treatment for discontinued operations. On historical terms, the variations would be -1.8% (2) “Own Investments” exclude real estate for own use. With this asset class “Own Investments” would amount to € 281.2 bn, compared to € 275.5 bn at the end of 2008 (3) Including mortgage loans, policy loans, deposits under reinsurance business accepted, term deposits with credit institutions and other financial investments, other loans (4) Including investments in subsidiaries, associated companies and JVs, derivatives, receivables from banks or customers (5) Including real estate mutual funds Assicurazioni Generali Group – Interim results 2009
    • II. GROUP FINANCIALS IFRS Shareholders’ equity roll forward 17 IFRS Shareholders’ equity roll forward (Euro m) +5.4% 400 8 63 11,612 11 11,313 324 (207) 11,013 Shareholders’ Shareholders’ ∆ in AFS 2Q 2009 ∆ Currency ∆ Hedging Cash Other Shareholders’ Equity FY 08 Equity 1Q 09 Reserve Net Result Translation Reserve Dividend Equity 1H 09 Reserve Change in AFS reserve (Euro m) 162 136 26 (1,106) (1,213) (889) AFS Reserve AFS Reserve Impact Equity Impact Bond Other AFS Reserve FY 08 1Q 09 Investments Investments 1H 09 Assicurazioni Generali Group – Interim results 2009
    • II. GROUP FINANCIALS Solvency I update 18 (Euro bn) Required margin Available margin Total solvency margin(1) 145% 146% 123% 125% 19.4 20.4 15.8 16.3 FY 08 1H 09 (1) Including off balance sheet unrealized gains on real estate assets and 50% of future life profits Assicurazioni Generali Group – Interim results 2009
    • II. GROUP FINANCIALS Life profitability 19 Life operating result (Euro m) Life Operating result by market (Euro m) 1H 2008 1H 2009 %(1) -13.4%(1) Italy 836 556 -29.3 France 277 212 -23.4 1,516 Germany 175 114 -35.0 1,269 CEE 73 179 +143.5 RoE 119 169 +42.4 RoW 35 40 +11.7 1H 08 1H 09 Total 1,516 1,269 -13.4 (1) Excluding Intesa Vita in 1H 08 and 1H 09, according to IFRS 5 treatment for discontinued operations. On historical terms the variations would be -16.3% for the life operating result and -33.5% for the Italian life operating result (EUR m) FY 2008 1H 2009 % Life Net Tech. Reserves(2) 261,374 270,890 +3.6 traditional 228,175 235,256 +3.1 linked 33,199 35,634 +7.3 (2) Including investment contracts; excluding Intesa Vita in FY08 and 1H09, according to IFRS 5 treatment for discontinued operations 1H 09 net inflow(3) amount to Euro 7.1 bn (3) Net inflow: premiums written in the period less surrenders and maturity. It does not include revaluation of mathematical reserves Assicurazioni Generali Group – Interim results 2009
    • II. GROUP FINANCIALS Life & Health: New Business Annual Premium Equivalent 20 APE confirms the recovery trend in 2009 reducing the year-on-year gap to -5.4% on a like for like basis, net of 2008 “Riester-step” in Germany In comparison with 1H08, APE mainly suffers from (Euro m) APE the slowdown of unit linked business (-36.2%), Historical Like for like while traditional business increases by 0.9%. 1H 08 1H 09 % % Italy: APE contraction (-8.2% from -9.6% at 1Q09) driven by planned reduction of less profitable Italy 768 705 -8.2% -8.2% single premiums business (-14.7%). France: severe reduction of unit linked business France 636 644 +1.3% +1.5% (-40.5%) offset by positive development of traditional business (+9.8%). Germany 602 504 -16.2% -20.7% Germany: neutralising the one-off “Riester step” effect in 2008, APE decreases only by -1.5%. CEE 124 81 -34.7% +0.6% CEE: positive performance on a like for like basis (APE +0.6%), with resilient unit linked business. RoE 324 276 -14.6% -15.1% RoE: positive traditional business development (+7.6%), offset by decrease in unit linked business (-31.1%). RoW 204 182 -10.8% -13.7% RoW: APE decrease (13.7% like for like) on account of unit linked business drop (-50.9%). Total 2,658 2,393 -10.0% -9.6% Assicurazioni Generali Group – Interim results 2009
    • II. GROUP FINANCIALS Life & Health: New Business Value and profitability 21 New Business Value at 464 Euro millions with 19.4% profitability margin on APE (Euro m) NB margin on APE (Euro m) New Business Value 1H 08 FY 08 1H 09 1H 08 1H 09 Like for like % Italy 27.6% 23.5% 24.2% Italy 212 171 -19.5% France 12.7% 11.8% 8.6% France 81 56 -30.9% Germany 17.2% 16.9% 18.2% Germany 103 92 -15.6% CEE 29.1% 34.5% 35.5% CEE 36 29 +0.0% RoE 27.3% 23.4% 25.7% RoE 88 71 -21.1% RoW 23.0% 29.3% 25.4% RoW 47 46 -0.2% Total 21.4% 20.2% 19.4% Total 568 464 -17.8% Margin on APE at 19.4%: after FY08 slowdown, profitability recovers in almost all countries, generally benefiting from higher interest rates at medium-long durations. Italy: NBM at 24.2% driven by traditional business profitability increase, after the planned reduction of low margin single premium products sold during 2008. France: NBM decreases at 8.6% on account of the less favourable product mix and the lower financial margins on traditional business in the context of the crisis. Germany: NBM 18.2% driven by increased weight of profitable Health business and more favourable product mix. CEE: solid NBM confirmed at 35.5%. Rest of Europe: NBM 25.7% driven by a profitability recovery in Switzerland, Spain and Benelux. Rest of World: NBM 25.4%, stable margins in almost all countries partially offset by profitability decrease in US business with technical profits penalised by higher interest rates. Assicurazioni Generali Group – Interim results 2009
    • II. GROUP FINANCIALS P&C Gross Written Premiums 22 Overall underlying trend unchanged from Q1 Italy: slightly improving trend in Q2 in all business (Euro m) Historical Like for like(1) lines, although still within a difficult economic 1H 2008 1H 2009 % % scenario. Motor business continues to be Italy 3,701 3,566 -3.7 -3.7 penalized by decrease of new vehicles matriculations; non motor still affected by weak corporate lines France 1,987 2,037 +2.5 +2.6 France: thanks to portfolio and tariff increases, robust growth in all non-Motor segments, Germany 1,876 1,855 -1.1 -1.1 particularly Personal Multi-risk and Assistance covers, Accident & Health and Corporate. Germany: premium decrease in Motor, affected by CEE 1,231 1,091 -11.4 -1.7 persistent tariff competition. Stable growth in profitable Non-Motor lines, despite difficult RoE 2,439 2,426 -0.5 -1.3 economic environment. CEE countries: GWP decrease due to Motor business especially in Czech Rep., and Accident & RoW 556 585 +5.1 +9.5 Health driven by Russia. Growth in Personal lines and Commercial / Industrial. Total 11,790 11,558 -2.0 -0.9 (1) Calculated considering equivalent exchange rates and scope of consolidation Assicurazioni Generali Group – Interim results 2009
    • II. GROUP FINANCIALS P&C profitability – net combined ratio 23 Combined ratio (%) Combined ratio by country (%) +3.2%pts. 3.3 (1) 97.9 1H 2008 1H 2009 ∆ %pts. 94.6 Italy(2) 96.2 102.5(2) +6.3 (0.1) France 96.3 99.5 +3.2 27.5 27.4 Germany 97.1 95.7 -1.4 CEE 82.1 83.7 +1.6 67.1 70.4 RoE 92.7 95.4 +2.7 RoW 102.9 102.0 -0.9 1H 08 Expense Loss 1H 09 ratio ratio Total 94.6 97.9 +3.2 Loss ratio Expense ratio (2) Excluding foreign branches; the earthquake in Abruzzo and windstorms (1) The earthquake in Abruzzo and windstorms in Europe weighted for 2%pts. in Italy weighted for 3.8%pts. 1H 08 Reserving ratio(3) 1H 09 283.3% 287.4% (3) On six months basis Assicurazioni Generali Group – Interim results 2009
    • II. GROUP FINANCIALS P&C profitability – operating result 24 P&C operating result (Euro m) P&C Operating result by market (Euro m) -38.8% 1H 2008 1H 2009 ∆% Italy 307 59 -80.9 1,160 France 222 121 -45.5 Germany 130 140 +7.8 710 CEE 239 189 -21.0 RoE 251 189 -24.9 1H 08 1H 09 RoW 11 13 +18.7 Total 1,160 710 -38.8 Assicurazioni Generali Group – Interim results 2009
    • II. GROUP FINANCIALS Group Embedded Value roll-forward 25 (Euro m) 1,408 23,093 (615) 22,507 (207) EV FY 08 Normalised Investment Cash Dividend EV 1H 09 Earnings and Tax 08 Variances Return on Embedded Value Group Embedded Value Group Embedded Value Earnings at Half Year (793 m) reflect Group EV FY 08 before Alleanza / negative investment variances of 615 m Intesa Vita deal 12.5% Normalised RoEV (1) 7.0% RoEV (1) 16.5 € Group EV per share (1) RoEV = Annualised EV earnings on opening EV and Normalised RoEV = Annualised and Normalised Earnings on opening EV Assicurazioni Generali Group – Interim results 2009
    • II. GROUP FINANCIALS Economic Solvency and Capital Allocation 26 (Euro bn) Economic Solvency Coverage (ESC) Economic Capital (EC) (Euro bn) FY 08 29.0 1H 09 FY 08 1H 09 27.9 Sub. EC Life 18.4 19.6 Sub. Debt Debt ESC = 177%(1) ESC 175%(2) EC P&C 7.1 6.8 EC Financial 1.9 1.9 16.5 15.6 EC total 27.4 28.3 Group Group Group Group EV RAC EV RAC Economic Capital definition Capital allocated to the Business Units, allowing for risk and local regulatory requirements, equal to the Available Group Available Group sum of: Capital Risk Capital Capital Risk Capital maximum between solvency 1 requirement (1) ESC FY 08 = AC FY 08 (net of cash dividend 09 equal to 0.2 bn) divided by Risk Capital FY 08 (2) ESC 1H 09 = AC 1H 09 divided by Risk Capital 1H 09 and risk capital other Available Capital held in the BU, including Very strong Economic Solvency position Value of In-Force and Before Alleanza/Intesa Vita deal ESC 1H 09 at 175% Non-Life Fair Value Alleanza merger deal would add 7/8%pts. to the ESC at 1H 09 adjustment Assicurazioni Generali Group – Interim results 2009
    • Agenda 27 III. Final Remarks Assicurazioni Generali Group – Interim results 2009
    • III. FINAL REMARKS Final remarks 28 Optimised product offer for all distribution channels Confirmed focus on efficiency enhancement Steep yield curve increases the competitiveness of our traditional life products Actions on tariffs and claims management will improve P&C technical profitability Confirmed prudent risk–reward investment profile Assicurazioni Generali Group – Interim results 2009
    • Agenda 29 IV. Backup Assicurazioni Generali Group – Interim results 2009
    • IV. BACK UP Total gross written premiums 30 (Euro m) Total Gross Written Premiums Gross Life Written Premiums(1) Gross P&C Written Premiums weight on weight on weight on YoY consolidated YoY consolidated YoY consolidated Country GWP increase (%) GWP increase (%) GWP increase (%) (2) (2) (2) Italy 9,323 -8.6 26.9 5,757 -11.4 16.6 3,566 -3.7 10.3 France 8,467 1.4 24.4 6,431 1.0 18.5 2,037 2.6 5.9 Germany 7,852 3.1 22.6 5,998 4.5 17.3 1,855 -1.1 5.3 CEE 1,872 -1.2 5.4 781 -0.4 2.3 1,091 -1.7 3.1 RoE 5,092 -3.5 14.7 2,666 -5.5 7.7 2,426 -1.3 7.0 Of which: Spain 1,491 -6.8 4.3 637 -8.3 1.8 854 -5.7 2.5 Austria 1,347 -2.3 3.9 562 -6.9 1.6 785 1.2 2.3 Switzerland 767 -1.8 2.2 413 -3.8 1.2 354 0.6 1.0 RoW 2,076 10.3 6.0 1,492 10.7 4.3 585 9.5 1.7 Total 34,683 -1.5 100.0 23,124 -1.9 66.7 11,558 -0.9 33.3 (1) Including investment contracts (2) On like for like basis with constant exchange rates Assicurazioni Generali Group – Interim results 2009
    • IV. BACK UP Life Premiums by Country & Business Line 31 Life 1H 09 (Euro m) Unit/index Traditional linked Health Group Total Italy 86.9% 2.2% 0.0% 10.9% 5,694.9 France 78.2% 9.5% 6.4% 5.9% 6,341.8 Germany 50.3% 26.5% 16.8% 6.3% 5,997.2 CEE 68.7% 19.8% 10.0% 1.5% 781.3 RoE 38.5% 38.5% 4.8% 18.2% 2,659.5 Of which: Spain 60.8% 1.5% 0.0% 37.8% 637.1 Austria 50.6% 29.1% 19.7% 0.6% 556.5 Switzerland 21.2% 77.6% 1.1% 0.2% 413.0 RoW 40.0% 2.2% 9.7% 48.2% 1,180.1 Total life gross 66.0% 15.5% 7.7% 10.8% 22,654.8 direct premiums Assicurazioni Generali Group – Interim results 2009
    • IV. BACK UP P&C Premiums by Country & Business Line 32 P&C 1H 09 (Euro m) Accident/ (1) Motor Health Personal Commercial Total Italy 46.9% 17.6% 11.6% 23.9% 3,533.7 France 29.1% 12.4% 36.1% 22.3% 1,926.4 Germany 42.0% 12.7% 35.9% 9.4% 1,852.4 CEE 54.1% 9.1% 14.2% 22.7% 1,079.4 RoE 40.3% 13.5% 16.9% 29.2% 2,362.3 Of which: Spain 31.0% 11.9% 17.6% 39.4% 849.2 Austria 45.4% 9.7% 15.0% 29.9% 756.6 Switzerland 52.2% 24.4% 23.0% 0.4% 352.0 RoW 61.0% 5.5% 4.2% 29.3% 569.0 Total P&C gross 43.1% 13.6% 20.7% 22.5% 11,323.2 direct premiums (1) Including fleets Assicurazioni Generali Group – Interim results 2009
    • IV. BACK UP Ratios 33 Life – Expense ratio (%) P&C – Combined ratio (%) 94.6 97.9 (1) Expense 27.4 11.0 10.8 ratio 27.5 Loss 67.1 70.4 ratio 1H 08 1H 09 1H 08 1H 09 (1) Excluding Intesa Vita Total – Expense ratio (%) 16.0 (1) 15.9 1H 08 1H 09 (1) Excluding Intesa Vita Assicurazioni Generali Group – Interim results 2009
    • IV. BACK UP 1H2009 combined ratio reconciliation 34 (Euro m) A Net earned premiums (net of consolidation adjustments) 9,984.7 B Consolidated net insurance benefits and claims 7,032.4 Consolidated acquisition costs 2,127.2 Consolidated administration costs 647.4 Non insurance related administration costs(1) 34.2 Insurance related consolidated administration costs 613.2 C Total acquisition and insurance related administration costs 2,740.4 B/A Loss ratio 70.4% C/A Expense ratio 27.4% (B+C)/A Combined ratio 97.9% (1) Administration expenses related to service companies, real estates and other companies not belonging to P&C segment Assicurazioni Generali Group – Interim results 2009
    • IV. BACK UP Ratios by country 35 (%) ITA FRA GER CEE SPA AUT SWI Consolidated P&C Loss ratio 1H 09 79.9 71.3 65.3 54.2 67.9 68.2 67.2 70.4 1H 08 73.0 68.4 67.5 52.8 65.9 66.7 67.1 67.1 P&C Expense ratio 1H 09 22.6 28.1 30.4 29.6 24.1 29.0 27.4 27.4 1H 08 23.2 27.9 29.6 29.3 23.5 29.9 28.3 27.5 P&C Combined ratio 1H 09 102.5 99.5 95.7 83.7 92.0 97.2 94.7 97.9 1H 08 96.2 96.3 97.1 82.1 89.4 96.6 95.4 94.6 Life expense ratio by country 1H 09 9.5 6.6 14.3 18.6 4.7 13.4 18.5 10.8 1H 08 9.0(1) 7.0 15.5 20.4 4.5 14.7 20.7 11.0(1) (1) Excluding Intesa Vita Assicurazioni Generali Group – Interim results 2009
    • IV. BACK UP Operating result by country 36 Life operating result by market (Euro m) P&C operating result by market (Euro m) 1H 08 1H 09 % 1H 08 1H 09 % Italy 836 556 -33.5 Italy 307 59 -80.9 France 277 212 -23.5 France 222 121 -45.5 Germany 175 114 -35.0 Germany 130 140 +7.8 CEE 73 179 +143.5 CEE 239 189 -21.0 RoE 119 169 +42.4 RoE 251 189 -24.9 Of which: Of which: Spain 54 58 +8.0 Spain 112 97 -13.4 Austria 25 19 -23.6 Austria 49 37 -24.7 Switzerland 21 49 +131.9 Switzerland 21 23 +13.7 RoW 35 40 +11.6 RoW 11 13 +18.7 Total 1,516 1,269 -16.3 Total 1,160 710 -38.8 Assicurazioni Generali Group – Interim results 2009
    • IV. BACK UP Reclassified P&L account 37 (Euro m) Total 1H 2008 (1) 1H 2009 Operating result 2,498 1,934 Net earned premiums 32,364 31,766 Net insurance benefits and claims (26,295) (31,948) Acquisition and administration costs (5,647) (5,555) Net fee and commission income and net income from financial service activities 359 379 Operating income from investments 2,186 7,611 Operating holding expenses (154) (127) Net other operating expenses (314) (192) Non-operating result (122) (1,045) Non-operating income from investments 285 (527) Non-operating holding expenses (344) (349) Interest expenses on financial debt (332) (334) Other non-operating holding expenses (12) (15) Net other non-operating expenses (62) (170) Earnings before taxes 2,376 889 Income taxes (605) (165) Result from discontinued operations (Intesa Vita) - 39 Consolidated result of the period 1,771 763 Result of the period attributable to minority interests (311) (259) Result of the period 1,460 504 (1) 1H 2008 operating result has been restated to conform to the current definition of the operating result (refer to Appendix to the Consolidated Report ‘Methodology Note on Alternative Performance Measures’) Assicurazioni Generali Group – Interim results 2009
    • IV. BACK UP Reclassified P&L account by segment – 1H 2008 38 Unallocated holding Consolidation (Euro m) Life Non life Financial(1) expenses adjustments Total Operating result 1,516 1,160 196 (154) (220) 2,498 Net earned premiums 22,387 9,977 - - - 32,364 Net insurance benefits and claims (19,601) (6,694) - - - (26,295) Acquisition and administration costs (2,551) (2,785) (312) - - (5,647) Net fee and commission income and net income from financial service activities 40 - 360 - (40) 359 Operating income from investments 1,299 857 207 - (178) 2,186 Operating holding expenses - - - (154) - (154) Net other operating expenses (58) (195) (60) - (2) (314) Non-operating result (93) 331 (16) (345) - (122) Non-operating income from investments (58) 335 8 - - 285 Non-operating holding expenses - - - (345) - (345) Net other non-operating expenses (36) (3) (23) - - (62) Earnings before taxes 1,423 1,492 180 (499) (220) 2,376 (1) Not reclassified according to the new layout, based on operating margins and presented in the 2009 half year Consolidated Report Assicurazioni Generali Group – Interim results 2009
    • IV. BACK UP Reclassified P&L account by segment – 1H 2009 39 Unallocated holding Consolidation (Euro m) Life Non life Financial(1) expenses adjustments Total Operating result 1,269 710 223 (127) (141) 1,934 Net earned premiums 21,781 9,985 0.0 - - 31,766 Net insurance benefits and claims (24,916) (7,032) 0.0 - - (31,948) Acquisition and administration costs (2,416) (2,775) (364) - - (5,555) Net fee and commission income and net income from financial service activities 41 - 375 - (37) 379 Operating income from investments 6,840 618 256 - (104) 7,611 Operating holding expenses - - - (127) - (127) Net other operating expenses (61) (86) (45) - - (192) Non-operating result (177) (484) (36) (349) - (1,045) Non-operating income from investments (111) (411) (5) - - (527) Non-operating holding expenses - - - (349) - (349) Net other non-operating expenses (66) (74) (30) - - (170) Earnings before taxes 1,093 226 187 (476) (141) 889 (1) Not reclassified according to the new layout, based on operating margins and presented in the 2009 half year Consolidated Report Assicurazioni Generali Group – Interim results 2009
    • IV. BACK UP Financial services segment 40 Financial services segment: Operating result (Euro m) Third party AUM (Euro bn) +13.6% +5.6% 67.6 71.4 196 223 1H 08 1H 09 FY 08 1H 09 Financial services segment: Net fees and commissions (Euro m) +4.3% 360 375 1H 08 1H 09 Assicurazioni Generali Group – Interim results 2009
    • IV. BACK UP Consolidated balance sheet 41 Assets Liabilities (Euro bn) FY 08 1H 09 (Euro bn) FY 08 1H 09 Intangible assets 9.3 9.0 Shareholders’ Equity 11.3 11.6 (Group share) Investments 327.1 313.0 Minority interests 4.2 4.2 Shareholders’ Equity 15.5 15.8 Cash 10.5 11.9 Subordinated and 46.7 44.5 Other credits 11.5 14.6 financial liabilities Technical reserves 301.8 292.4 Tangible assets 3.8 3.8 Other debts and 9.1 11.3 allowances Other assets (1) 21.7 45.1 Other liabilities 10.8 33.4 Total Assets 383.9 397.5 Total Liabilities and 383.9 397.5 Shareholders’ Equity (1) Including reinsurance amounts of technical reserve Other assets and other liabilities include assets and liabilities from discounted operations held for sale (Intesa Vita) Assicurazioni Generali Group – Interim results 2009
    • IV. BACK UP Investments 42 (Euro m) FY 08 % on total 1H 09 % on total Real Estate (1) 12,473 3.8 12,313 3.9 Group Participations 2,568 0.8 2,049 0.7 Loans 69,193 21.2 82,464 26.3 Held to maturity 1,798 0.5 2,803 0.9 Available for sale 173,701 53.1 155,359 49.6 Financial Instruments at fair value through Profit 67,402 20.6 58,038 18.5 and Loss Total investments 327,135 100.0 313,026 100.0 (1) Excluding real estate mutual funds Assicurazioni Generali Group – Interim results 2009
    • IV. BACK UP Investment yields 43 Bonds and Loans Equities Investment properties (%) 1H 08 1H 09 1H 08 1H 09 1H 08 1H 09 LIFE Current return(1) 2.35 2.18 3.10 2.63 3.61 3.04 Total P&L return(2) 2.13 2.37 -0.35 1.27 3.52 1.82 Comprehensive return(3) 0.03 2.01 -20.35 4.57 3.52 1.82 NON LIFE Current return(1) 2.31 2.09 3.23 2.42 4.33 4.16 Total P&L return(2) 2.47 2.18 1.45 -3.70 3.21 3.38 Comprehensive return(3) 0.99 2.61 -19.16 4.78 3.21 3.38 TOTAL Current return(1) 2.36 2.17 3.23 2.59 3.88 3.50 Total P&L return(2) 2.18 2.35 -0.01 0.24 3.42 2.46 Comprehensive return(3) 0.12 2.07 -20.12 4.61 3.42 2.46 (1) Current return: interest, dividends and similar income / Quarterly average asset base at book value (excluding income related to unit/index linked investments) (2) Total P%L return: = current return + realised gains/losses + net impairments, net of investment expenses / Quarterly average asset base at book value (excluding income related to unit/index linked investments) (3) Comprehensive return: a. for fair value investment (AFS, FVthPL) = current return + total change in fair value, net of investment expenses / average asset base at fair value (excluding income related to unit/index linked investments) b. for investment at amortised cost (Real estates, loans, HtM) = current return + realised gains/losses + net impairments, net of investment expenses / quarterly average asset base at AC Assicurazioni Generali Group – Interim results 2009
    • IV. BACK UP Life & Health: New Business APE 44 (Euro m) New Business APE 1H 2008 1H 2009 % historical % like for like Italy 768 705 -8.2% -8.2% France 636 644 +1.3% +1.5% Germany 602 504 -16.2% -20.7% CEE 124 81 -34.7% +0.6% RoE 324 276 -14.6% -15.1% of which Spain 71 64 -10.7% -10.7% of which Austria 46 37 -20.3% -20.3% of which Switzerland 40 40 -0.4% -5.3% RoW 204 182 -10.8% -13.7% Total 2,658 2,393 -10.0% -9.6% Assicurazioni Generali Group – Interim results 2009
    • IV. BACK UP Life/Health & Asset Gathering VIF 45 Life/Health Value of In-force Business Asset Gathering Value of In-force Business (Euro m) (Euro m) 11,915 11,094 +7.4% +2.1% 996 1,016 FY 08 1H 09 FY 08 1H 09 1H 09 Valuation of Life/Health based on: same market consistent methodology applied at FY 08 (with same assumptions regarding the choice of risk-free reference rates, liquidity premium and volatilities) 1H 09 actual economic scenario (interest rates, inflation, market value of assets and asset-mix) FY 08 operating assumptions (mortality, surrender, expenses) Assicurazioni Generali Group – Interim results 2009
    • IV. BACK UP Number of shares(1) 46 Ordinary Own Shares Shares issued shares outstanding (1) (2) (1-2) Weighted number of shares outstanding in year ending 12.31.2008 1,348,892,498 shares outstanding at 12.31.2008 1,410,113,747 64,176,653 1,345,937,094 Capital increase - - - Stock grant plan - - - Exercise of stock options - - - Generali shares purchase - -53,797,939 53,797,939 shares outstanding at 06.30.2009 1,410,113,747 10,378,714 1,399,735,033 Weighted number of shares outstanding in year ending 06.30.2009 1,357,891,906 Potential (dilutive) shares: Stock options - - - Weighted number of shares outstanding in year ending 06.30.2009 adjusted for the effects of all dilutive potential ordinary shares. 1,357,891,906 Weighted number of shares outstanding in year ending 12.31.2008 adjusted for the effects of all dilutive potential ordinary shares. 1,349,350,692 (1) Calculation based on IAS 33 Assicurazioni Generali Group – Interim results 2009
    • What’s next 47 November 5, 2009 – 9M 2009 Results (Conference call presentation) Assicurazioni Generali Group – Interim results 2009
    • Investor Relations Team 48 Paola Buratti Head of Investor Relations (Tel.: +39-040-671157) Email: paola_buratti@generali.com Stefano Burrino (Tel.: +39-040-671202) Emanuele Marciante (Tel.: +39-040-671347) IR Manager IR Manager Email: stefano_burrino@generali.com Email: emanuele_marciante@generali.com Veronica Cherini (Tel.: +39-040-671488) Nicoletta Mendes (Tel.: +39-040-671402) Jr. IR Manager Team Assistant Email: veronica_cherini@generali.com Email: nicoletta_mendes@generali.com Assicurazioni Generali Tel.: +39 040 671402 P.za Duca degli Abruzzi 2 Fax: +39 040 671338 34132 Trieste, Italy e-mail: generali_ir@generali.com www.generali.com Assicurazioni Generali Group – Interim results 2009
    • Disclaimer 49 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, 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 – Interim results 2009
    • Generali Group Interim results 2009 Venice, July 31, 2009