Generali Group 2011 Results

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Generali Group 2011 Results

  1. 1. Generali Group2011 Results Milan, March xxx, 2010 March 21, 2012 March 2006
  2. 2. Agenda 2 I. FY 2011 results overview Page 3 Giovanni Perissinotto - Group CEO II. Insurance operations Page 8 Sergio Balbinot - Managing Director III. Group financials Page 12 Raffaele Agrusti - CFO IV. Backup Page 36Assicurazioni Generali Group – FY 2011 results
  3. 3. Agenda 3 I. FY 2011 results overview Giovanni Perissinotto - Group CEOAssicurazioni Generali Group – FY 2011 results
  4. 4. I. FY 2011 RESULTS OVERVIEW2011: at the bottom of the crisis 4Life operating result (Euro m) P&C operating result (Euro m) -16.0% +38.3% Large impairments on Strong P&C 3,026 Greek government operating result 2,542 bonds affecting Life driven by improved operating result 1,561 technical profitability 1,128 Top market Life net Combined ratio at inflows (Euro 5.8 bn), 96.5%; almost despite a difficult reached 96% mid FY10 FY11 environment FY10 FY11 term targetFinancial services operating result (Euro m) Net result (Euro m) -3.3% -49.7% Resilient financial Net result strongly services operating 1,702 affected by result impairments on 856 Greek government 354 Third parties AuM bonds, Telco and 342 increase (+3.4%)(1) equity portfolio during 2011 FY10 FY11 FY10 FY11(1) On like for like basisAssicurazioni Generali Group – FY 2011 results
  5. 5. I. FY 2011 RESULTS OVERVIEWRestoring capital adequacy 5 Solvency ratios recovery during first months of 2012 mainly thanks to narrowing spreads on Italian government debtRegulatory solvency I ratio (%) Economic solvency ratio (%) 160% 132% 141% 132% 126% 124% 118% 117% 2010 9M11 2011(1) March 01 2010 9M11 2011 March 01 2012 2012(1) Calculation based on new ISVAP’s ruleAssicurazioni Generali Group – FY 2011 results
  6. 6. I. FY 2011 RESULTS OVERVIEW2011 proposed cash dividend 6Cash dividend per share (Euro) 0.90 0.75 0.54 0.43 0.45 0.28 0.33 0.35 (1) 0.20 0.15 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Payout ratio 41.5% 41.7% 39.7% 41.8% 41.6% 41.1% 35.9% 36.4% 24.6%(1) 2008 dividend included also Euro 0.63=dividend in shares, corresponding to 1/25 of the share, at the official price of 21 May 2009 (dividend payment date), leading to a total dividend per share of Euro 0.78Assicurazioni Generali Group – FY 2011 results
  7. 7. I. FY 2012 RESULTS OVERVIEW Outlook on operating result 7(Euro bn) Outlook 2011 Min. Max. Actual Life and total operating result Life 2.7 3.2 2.5 affected by additional P&C 1.3 1.7 1.6 impairment on Greek Mid term bonds in the last part Total 4.0 4.7 3.9 of the year operating result ambition Outlook 2012 > Euro 5 bn Min. Max. Life 2.4 2.8 10% average growth P&C 1.5 1.9 on like for like Total 3.9 4.5 Assicurazioni Generali Group – FY 2011 results
  8. 8. Agenda 8 II. Insurance operations Sergio Balbinot - Managing DirectorAssicurazioni Generali Group – FY 2011 results
  9. 9. II. INSURANCE OPERATIONSMain industrial results 9Life P&C GWP(1) GWP (Euro bn) 51.1 46.4 (Euro bn) 22.1 22.8 FY10 FY11 FY10 FY11 Net Inflows Loss ratio (Euro bn) (%) 16.1 71.3 69.0 5.8 FY10 FY11 FY10 FY11 NBM Combined ratio (%) (%) 98.8 20.4 96.5 19.7 FY10 FY11 FY10 FY11(1) Including investment contractsAssicurazioni Generali Group – FY 2011 results
  10. 10. II. INSURANCE OPERATIONSStrategic overview: focus on core European markets 10 Italy Germany Life Life Single premiums drop (APE -20.0%) but NBM Market outperformance in a tough NBM positive annual premiums performance environment: (APE +7.7%) Pure Life: -2.2% vs. mkt -4.8% More favourable product mix drives Strong Net Inflows: Euro 3,433 m Net Inflows Net Inflows NBM increase high performance multichannel Confirmed positive Life net inflows: distribution Euro 1,085 m Non Life Premiums Non Life Premiums Motor profitability improvement: Confirmed market outperformance: GWP +3.4% CoR -4.0%pts better than the market Current year loss ratio -4.7%pts Good GWP development: Strong performance of COR Motor (+1.2%) and Non-Motor (+2.7%) COR Non-Motor retail business: GWP +3.2% Operational efficiency Operational efficiency Strict cost management: stable administration Further general expenses reduction: Euro -11 m expense ratioAssicurazioni Generali Group – FY 2011 results
  11. 11. II. INSURANCE OPERATIONSStrategic overview: focus on core European markets 11 France CEE Life Life On-going product mix improvement: NBM NBM UL share at 17%(1) (mkt 14%); APE: Czech Republic +2.1%, Individual Protection +4%; Hungary -0.3% Individual Pensions +9% NBM among highest in the market: NBM among the highest in the Net inflows area: 35.8% Net Inflows 13.7% Leadership via Internet (> Euro 1 bn) and IFAs Non Life Premiums Non Life Premiums Tariffs increases: Net loss ratio among the lowest in the Motor >5% market: 54.5% Household +10% MTPL initiatives and innovations in COR COR Health +6% Ceska, selective underwriting approach Corporate + 5% for fleets in Slovakia and Czech Republic Operational efficiency Operational efficiency Claims factory set up and industrialization complete; General expense reduction (4% in Ceska) enlarged network of external experts (Non Life) Strong focus on claims fraud detection Reduction in Non Life acquisition and administration expense ratios(1) UL share on individual savingsAssicurazioni Generali Group – FY 2011 results
  12. 12. Agenda 12 III. Group Financials Raffaele Agrusti - CFO Profit & loss review Life, P&C and financial segment profitability Balance sheet and capitalAssicurazioni Generali Group – FY 2011 results
  13. 13. III. GROUP FINANCIALSRevenue development by segment 13 (Euro m) Gross written premiums (Euro m) ∆ like FY10 FY11 ∆ historical -5.5%(3) for like Gross written 73,188 69,159 -5.5% -5.5% premiums Life(1) 51,098 46,394 -9.2% -9.3% FY10 FY11 Life APE (Euro m) P&C 22,090 22,765 +3.1% +3.2% -9.0%(3) Life APE(2) 5,333 4,787 -10.2% -9.0% FY10 FY11 (1) Including investment contracts for Euro 3,187 m in FY11 (2) For the definitions refer to the related section in the backup (3) On like for like basisAssicurazioni Generali Group – FY 2011 results
  14. 14. III. GROUP FINANCIALSOperating result by segment 14 FY11 total operating result (Euro m) Net impact from impairments of: 2,542 •Greek gov. bonds: ~Euro 378 m(1) Life •Telco: ~Euro 30 m operating result 3,026 -16.0% P&C 1,561 operating result 1,128 +38.3% Financial services 342 operating result -3.4% 354 Operating holding -294 expenses -2.0% -288 Consolidation -222 adjustments -55.6% -143 Total 3,928 -3.7% operating result 4,077 FY11 FY10 (1) For details, please see slide n. 63 in the back upAssicurazioni Generali Group – FY 2011 results
  15. 15. III. GROUP FINANCIALSFocus on non operating result 15 (Euro m) Non operating investment income (Euro m) Net impact from impairments of: •Greek gov. bonds: ~Euro 309 m(2) FY10 FY11 6 •Telco: ~Euro 186 m (300) Non operating 6 (941) n.m. investment income (575) (71) (941) FY10 FY11 (1) Non operating (726) (680) +6.4% holding expenses ∆ Euro m Net Net Fair Net other realised impair- Value thr. Non operating (479) (392) +18.2% gains ments P&L expenses FY 11 180 (1,087) (34) Total FY 10 480 (512) 37 Non operating (1,200) (2,013) -67.8% result ∆% -62.5% +112.3% n.m. (1) Including interest expenses on financial debt (2) For details, please see slide n. 63 in the back upAssicurazioni Generali Group – FY 2011 results
  16. 16. III. GROUP FINANCIALSFrom operating result to net result 16(Euro m) FY10 FY11 Net income (Euro m)Total operating result 4,077 3,928 -3.7% Impact from impairments of: •Greek gov. bonds: ~Euro 472 m(1) •Telco: ~Euro 307 m • AFS equities: ~Euro 239 mNon operating result (1,200) (2,013) -67.8% -49.7%Consolidated result before 2,877 1,914 -33.5%taxes and minorities 1,702Income taxes (909) (762) +16.2% 856Result for discontinued 51 0 n.m.operations (Intesa Vita)Minorities (316) (297) +6.0% FY10 FY11Net result 1,702 856 -49.7%(1) For details, please see slides n. 63 in the back up Assicurazioni Generali Group – FY 2011 results
  17. 17. Agenda 17 III. Group Financials Profit & loss review Life, P&C and financial segment profitability Balance sheet and capitalAssicurazioni Generali Group – FY 2011 results
  18. 18. III. GROUP FINANCIALSLife business development 18Life gross written premiums (Euro m) Life net inflows by country(2) (Euro m) -9.3%(1) Country FY10 FY11 Italy 1,790 1,085 51,098 46,394 France 4,444 (2,061) Germany 4,923 3,433 CEE 534 475 FY10 FY11 RoE 2,823 1,473 RoW 1,619 1,441 TOTAL 16,133 5,846(1) On like for like basis(2) For the definitions refer to the related section in the backupAssicurazioni Generali Group – FY 2011 results
  19. 19. III. GROUP FINANCIALSLife profitability - Operating result 19 Life operating profitability affected by financial environment Life Operating Result by driver(1) FY10 FY11 FY10 3,026 (Euro m) Technical Margin 5,996 6,225 +3.8% Tech.M 229 Investment Result 2,382 1,715 -28.0% Inv.R (667) Expenses (5,352) (5,398) -0.9% Exp. (46) Operating Result 3,026 2,542 -16.0% FY11 2,542 0.93% 0.97% 0.89% Life operating 0.80% 0.68% ratio on 0.97% 0.80% Investments FY07 FY08 FY09 FY10 FY11(1) For the definitions refer to the related section in the backupAssicurazioni Generali Group – FY 2011 results
  20. 20. III. GROUP FINANCIALSLife net technical provisions(1) 20(Euro bn) (Euro bn) +5.3% CAGR +1.0% 313.3 316.6 286.4 316.6 257.4 261.4 313.3 5.8 4.8 (6.2) (1.1) Life net Net Loadings, risk Policyh. Exchange Life net FY07 FY08 FY09 FY10 FY11 technical inflows and surrender share of rates technical provisions result invest. and other provisions FY10 (to P&L) result FY11 313.3 5.9 316.6 44.6 (38.8) (19.1) Surrenders (2.7) (19.7) 5.8 Cash in Cash out Net inflows FY10 Traditional Unit FY11 Linked Ratios on life net technical provisions (average of the year) of: FY 2011 258.3 58.3 Net inflows Surrenders FY 2010 252.4 61.0 FY 2011 1.9% 6.2% ∆% +2.3% -4.4% FY 2010 5.4% 4.6% (1) Life net technical provisions including investment contracts and excluding Intesa Vita; starting from 9M 2011 Israeli participating portfolio has been reclassified in unit- linked business. Comparative figures have been restated accordingly.Assicurazioni Generali Group – FY 2011 results
  21. 21. III. GROUP FINANCIALS Life investment strategy and yields(1) 21Life segment own investments(1) (%) Reduced cross-border exposure to peripheral Euro 258.7 bn Euro 254.6 bn European government bonds 2 .7 % 2 .4 % Preference for covered bonds within corporate 2 .7 % 6 .8 % 3 .3 % bonds segment 7 .3 % 3 .9 % 5 .3 % Other Further gradual strategic increase of real estate 7 .5 % 8 .6 % exposure Cash & cash equivalent Tactical increase of liquidity buffer to face market 3 2 .8 % Real estate volatility and to catch investment opportunities 3 3 .5 % Equity Current Fixed Equity Real return(1) income Estate(2) Other fixed inco me Co rpo rate bo nds 4 3 .7 % 3 9 .6 % FY10 FY11 FY10 FY11 FY10 FY11 Go vernment bo nds Euro m 9,483 9,736 617 628 603 696 FY10 FY11 % 4.4 4.5 3.2 3.8 7.3 7.3(1) For the definitions refer to the related section in the backup; starting from 9M 2011 Israeli participating portfolio has been reclassified in unit-linked business.Comparative figures have been restated accordingly.(2) Real estate current returns are gross of related expenses Assicurazioni Generali Group – FY 2011 results
  22. 22. III. GROUP FINANCIALS Life new business value and profitability 22 APE slowdown (-9.0%) driven by single premiums drop (-24.8% vs. high 2010 production), partly offset by positive annual premiums performance (+2.7%) Solid NBM (20.4%) thanks to improved product/business mix and rigorous pricing NBV resilient at Euro 976 m (Euro m) APE Margins on APE NBV Historical Like for Historical Like for FY10 FY11 FY10 FY11 ∆ %pts FY10 FY11 like likeItaly 1,766 1,715 -2.9% -2.9% 18.4% 21.8% +3.3% 326 374 +14.7% +14.8%France 1,172 939 -19.8% -19.8% 12.5% 13.7% +1.2% 146 128 -12.4% -12.4%Germany 976 908 -7.0% -7.0% 17.7% 18.3% +0.6% 173 166 -3.9% -3.9%CEE 172 147 -14.5% -8.9% 32.3% 35.8% +3.4% 56 52 -5.5% +0.0%RoE 792 657 -17.1% -17.4% 24.9% 20.4% -4.5% 197 134 -32.1% -32.5%RoW 455 421 -7.4% +7.0% 33.5% 28.8% -4.7% 153 121 -20.4% -11.9%Total 5,333 4,787 -10.2% -9.0% 19.7% 20.4% +0.7% 1,050 976 -7.1% -5.6% Assicurazioni Generali Group – FY 2011 results
  23. 23. III. GROUP FINANCIALSFocus on new business guarantees 23 Stable average guarantee, with an increased weight of low-capital intensive types of guarantee(1)Total APE by type of guarantee YE 2010 NIL At maturity Eurozone Average Guarantee(2): 1.5% 29% 21% Yearly basis: 1.4% Matched Yearly basis =0 3% 14% At maturity: 1.9% Yearly basis >0 34% YE 2011 NIL At maturity Eurozone Average Guarantee(2): 1.5% 26% 22% Yearly basis: 1.4% Matched Yearly basis =0 3% 17% At maturity: 1.9% Yearly basis >0 33%(1) Excluding yearly basis guarantee > 0(2) Weighted on APEAssicurazioni Generali Group – FY 2011 results
  24. 24. III. GROUP FINANCIALS P&C gross written premiums 24 Motor and Non Motor retail are driving the very positive premium development, boosted by selected pricing policy Motor is growing in Italy, France and Germany thanks to the increase in average portfolio premium Commercial suffers from economic environment, mainly in Italy and Spain, while CEE over performing Historical Like for like P&C gross written premiums (Euro m) (Euro m) FY10 FY11 Italy 7,440 7,501 +0.8% +0.8% +3.2%(1) France 3,892 4,057 +4.2% +4.2% 22,090 22,765 Germany 2,998 3,062 +2.2% +2.2% CEE 2,246 2,261 +0.7% +1.3% RoE 4,203 4,330 +3.0% +1.6% RoW 1,312 1,555 +18.6% +23.8% FY10 FY11 Total 22,090 22,765 +3.1% +3.2%(1) On like for like basis Assicurazioni Generali Group – FY 2011 results
  25. 25. III. GROUP FINANCIALS P&C profitability - Operating result 25Strong increase of P&C operating result driven by technical profitabilityP&C Operating Result by driver(1) (Euro m) FY10 FY11 FY10 1,128 Technical Result 184 669 +263.2% Tech.R 485 Investment Result 1,196 1,120 -6.3% Inv.R (76) Other (252) (229) +9.2% Other 23 Operating Result 1,128 1,561 +38.3% FY11 1,561 P&C operating ratio on 3.07% 4.32% Investments(1) For the definitions refer to the related section in the backup Assicurazioni Generali Group – FY 2011 results
  26. 26. III. GROUP FINANCIALSP&C profitability - Net combined ratio (1/2) 26Combined ratio (%) Combined ratio by country (%) -2.3%pts. FY10 FY11 ∆ 98.8 0.1 96.5 (2.3) Italy 99.6% 96.8% -2.8%pts. 27.5 27.6 France 101.3% 98.7% -2.6%pts. Germany 95.2% 94.4% -0.8%pts. 69.0 CEE 93.2% 89.5% -3.7%pts. 71.3 RoE 99.3% 96.4% -2.9%pts. FY10 Expense Loss FY11 ratio ratio RoW 101.6% 104.2% +2.6%pts. Loss ratio Expense ratio Total 98.8% 96.5% -2.3%pts.Assicurazioni Generali Group – FY 2011 results
  27. 27. III. GROUP FINANCIALSP&C profitability - Net combined ratio (2/2) 27Loss ratio (%) Reserving ratio (%) -2.3%pts -2.6%pts 71.3 -1.7 -1.0 +0.4 69.0 148.8% 146.2% Current NAT Prior FY10 FY11 FY10 year(1) CAT years FY11 FY11 71.6 0.9 -3.5 69.0 FY10 73.3 1.9 -3.9 71.3(1) Excluding natural catastrophesExpense ratio (%) +0.1%pts Remarkable improvement of current 27.5 27.6 year loss ratio driven by strict pricing 6.0 0.0 +0.1 6.0 and underwriting discipline in Motor, especially in Italy 2011 nat cat impact more benign in the Acq. costs 21.5 21.6 Group geographies than 2010 Adm. costs Confirmed positive prior years development and prudent reserving FY10 ∆ Admin. ∆ Acq. FY11 policyAssicurazioni Generali Group – FY 2011 results
  28. 28. III. GROUP FINANCIALS P&C investment strategy and yields(1) 28 P&C segment own investments(1) (%) Continuing gradual strategic de-risking of portfolios Euro 36.4 bn Euro 35.0 bn by reducing exposure to equity and real estate 2 .6 % 1.8 % Accurate selection of sovereign risk in the portfolio 8 .7 % 9 .9 % management 17 .5 % Other Maintained strong current profitability despite 15 .7 % challenging market conditions Cash & cash 11.0 % 9 .2 % equivalent Focus on liquidity of assets Real estate 8 .6 % 7 .3 % Equity Current Fixed Equity Real return(1) income Estate(2) 2 7 .3 % Other fixed inco me 2 6 .9 % Co rpo rate bo nds FY10 FY11 FY10 FY11 FY10 FY11 Go vernment 2 7 .6 % bo nds 2 5 .9 % Euro m 846 887 118 104 533 497 FY10 FY11 % 3.8 3.9 2.6 2.8 8.7 8.6(1) For the definitions refer to the related section in the backup; starting from 9M 2011 Israeli participating portfolio has been reclassified in unit-linked business.Comparative figures have been restated accordingly.(2) Real estate current returns are gross of related expenses Assicurazioni Generali Group – FY 2011 results
  29. 29. III. GROUP FINANCIALSFinancial segment 29 Operating result (Euro m) Net fees and commissions (Euro m) -3.4% -3.9% 894 859 354 342 FY10 FY11 FY10 FY11 Third party AUM(1) (Euro bn) Cost/income ratio (%) +3.4%(2) +2.7%pts 93.0 88.2 70.5% 73.2% FY10 FY11 FY10 FY11(1) Including only third party AUM related to financial segment companies(2) On like for like basis. On historical basis, the variation is -5.1%Assicurazioni Generali Group – FY 2011 results
  30. 30. Agenda 30 III. Group Financials Profit & loss review Life, P&C and financial segment profitability Balance sheet and capitalAssicurazioni Generali Group – FY 2011 results
  31. 31. III. GROUP FINANCIALSTotal expected cash flow generation 2011 31(Euro bn) Life Group total Profit(1) 1.2 Var. Req Capital (0.1) Free Cash Flow 1.9 Free Cash Flow 1.0 P&C and Financial Holding exp.(3) (0.7) Profit(2) 1.0 Var. Req (0.1) Free Cash Flow Capital 1.3 before dividend Free Cash 0.9 Flow(1) Expected profit based on EV calculations (see slide 89)(2) P&C and Financial Segment Operating Result net of taxes and minorities(3) Holding expenses (incl. int. on financial debt) net of taxes and minoritiesAssicurazioni Generali Group – FY 2011 results
  32. 32. III. GROUP FINANCIALSIFRS Shareholders’ equity roll forward 32(Euro m) -11.5% 17,490 856 58 15,486 (109) (1,971) (699) (139) Shareholders’ ∆ in AFS FY 2011 ∆ Currency ∆ Cash Flow Dividend Other Shareholders’ Equity FY10 Reserve Net Result Translation Hedge Equity FY11 Reserve Reserve Change in AFS reserve (Euro m) (184) (659) (1,218) (94) (2,156) AFS Reserve Impact Equity Impact Bond Other AFS Reserve FY10 Investments Investments FY11Assicurazioni Generali Group – FY 2011 results
  33. 33. III. GROUP FINANCIALSSolvency I according to Italian regulation 33(Euro bn) Required margin Available margin 132% Main drivers of change 117% Available margin Consolidated result: + 1.2 Proposed dividends(1): - 0.5 22.3 Financial markets and other elements: - 1.6 20.8 Cap on locally admitted unrealized - 0.5 17.8 16.9 gains on real estate(2): Required Margin Growth of life technical provisions and financial sector capital requirements: + 0.9 FY10 FY11(1) Proposed dividend for Shareholders: Euro 0.3 bn; proposed dividend for Minorities: Euro 0.2 bn(2) The new rule allows the exclusion of AFS losses related to government bonds in the calculation of the cap on locally admitted unrealized gains on real estateAssicurazioni Generali Group – FY 2011 results
  34. 34. III. GROUP FINANCIALSGroup Embedded Value roll-forward 34 (Euro m) Including: 4.5 bn due to spread widening and drop of stock market 3,576 2.4 bn due to the decrease in interest rates 26,968 22,431 (7,414) (699) Robust return on embedded value, driven by positive combined ratio at 96.5% and Life NBV of Euro 976 m EV FY 10 EV earnings Investment and Tax 2010 Cash Dividend EV FY 11 Variances Return on Embedded Value Group Embedded Value Group EV FY11 13.3% Normalised RoEV (1) -14.2% RoEV (1) 14.6€ Group EV per share(1) For the definitions refer to the related section in the backupAssicurazioni Generali Group – FY 2011 results
  35. 35. III. GROUP FINANCIALSEconomic Solvency 35 Economic Solvency Ratio based on Group Internal Model calibrated on 1year VAR at 99.95% confidence level The ratio based on a 99.5% confidence level (consistent with a BBB rating) would be about 159% Economic Solvency Ratio (Euro bn) FY10 FY11 Sub. 33.6 Debt ESR = 160%(1) ESR = 124%(2)(3) 29.0 23.2(3) 20.6 Group Group AC AC Group Group RAC 99,5% RAC 99,5% Conf. Level Conf. Level Group Group RAC 15.7 RAC 18.0 ESR 210% ESR 159% Available Group Available Group Capital Risk Capital Capital Risk Capital (1) ESR FY10 = AC FY10 (net of dividend 2010 equal to 0.7bn) divided by Risk Capital FY10 (2) ESR FY11 = AC FY11 (net of dividend 2011 equal to 0.3bn) divided by Risk Capital FY11 (3) Preliminary figuresAssicurazioni Generali Group – FY 2011 results
  36. 36. Agenda 36 IV. Backup P&L Balance sheet Life Capital Sustainability DefinitionsAssicurazioni Generali Group – FY 2011 results
  37. 37. Agenda 37 IV. Backup P&L Balance sheet Life Capital Sustainability DefinitionsAssicurazioni Generali Group – FY 2011 results
  38. 38. IV. BACK UPFY11 Total gross written premiums 38 Euro (m) Total gross written premiums Gross life written premiums(1) Gross P&C written premiums Weight on Weight on Weight on YoY consoli- YoY consoli- YoY consoli- Country GWP % increase dated GWP % increase dated GWP % increase dated (2) (2) (2) Italy 20,212 -4.8% 29.2% 12,711 -7.9% 18.4% 7,501 +0.8% 10.8% France 13,064 -14.5% 18.9% 9,007 -20.9% 13.0% 4,057 +4.2% 5.9% Germany 16,597 -0.9% 24.0% 13,534 -1.6% 19.6% 3,062 +2.2% 4.4% CEE 3,938 -2.0% 5.7% 1,678 -6.2% 2.4% 2,261 +1.3% 3.3% RoE 9,916 -10.4% 14.3% 5,587 -18.0% 8.1% 4,330 +1.6% 6.3% Of which: Spain 2,426 +5.8% 3.5% 1,052 +14.3% 1.5% 1,374 +0.2% 2.0% Austria 2,538 +1.1% 3.7% 1,194 +2.5% 1.7% 1,344 -0.1% 1.9% Switzerland 1,760 +0.8% 2.5% 1,102 +0.5% 1.6% 658 +1.2% 1.0% RoW 5,433 +11.2% 7.9% 3,877 +6.8% 5.6% 1,555 +23.8% 2.2% Total 69,159 -5.5% 100.0% 46,394 -9.3% 67.1% 22,765 +3.2% 32.9%(1) Including investment contracts(2) On like for like basis with constant exchange ratesAssicurazioni Generali Group – FY 2011 results
  39. 39. IV. BACK UPLife premiums by country & business line 39 Life FY11 Savings and Unit/index (Euro m) protection linked Health Group Total Italy 85.2% 2.0% 0.0% 12.8% 12,324 France 68.0% 14.3% 10.2% 7.5% 8,795 Germany 51.6% 24.0% 17.7% 6.6% 13,533 CEE 60.8% 26.7% 11.2% 1.3% 1,677 RoE 35.4% 46.1% 4.8% 13.7% 5,558 Of which: Spain 65.0% 1.3% 0.0% 33.8% 1,051 Austria 57.0% 23.5% 19.6% 0.0% 1,177 Switzerland 24.7% 74.3% 0.8% 0.2% 1,102 RoW 28.8% 14.6% 4.8% 51.8% 3,114 Total life gross 60.8% 18.3% 8.7% 12.3% 45,002 direct premiumsAssicurazioni Generali Group – FY 2011 results
  40. 40. IV. BACK UPP&C premiums by country & business line 40 P&C FY11 Accident/ (1) (Euro m) Motor Health Personal Commercial Total Italy 44.4% 17.9% 11.7% 26.1% 7,356 France 29.4% 12.6% 38.0% 20.0% 3,785 Germany 35.7% 15.4% 39.6% 9.2% 3,059 CEE 45.5% 13.9% 15.7% 24.9% 2,220 RoE 37.2% 15.6% 23.8% 23.4% 4,174 Of which: Spain 27.5% 12.8% 28.9% 30.8% 1,338 Austria 39.7% 10.8% 23.5% 26.0% 1,325 Switzerland 48.1% 22.9% 28.5% 0.5% 656 RoW 58.1% 7.6% 3.7% 30.5% 1,499 Total P&C gross 40.3% 15.1% 22.2% 22.4% 22,092 direct premiums(1) Including fleetsAssicurazioni Generali Group – FY 2011 results
  41. 41. IV. BACK UPRatios 41 Life – Expense ratio (%) P&C – Combined ratio (%) 98.8 96.5 Expense 27.5 ratio 27.6 11.6 Loss 10.4 ratio 71.3 69.0 FY10 FY11 FY10 FY11 Total – Expense ratio (%) 15.3 16.6 FY10 FY11Assicurazioni Generali Group – FY 2011 results
  42. 42. IV. BACK UPFY11 combined ratio reconciliation 42 (Euro m) A Net earned premiums (net of consolidation adjustments) 20,662.5 B Consolidated net insurance benefits and claims 14,247.4 Consolidated acquisition costs 4,461.9 Consolidated administration costs 1,303.4 Non insurance related administration costs(1) 65.4 Insurance related consolidated administration costs 1,238.0 C Total acquisition and insurance related administration costs 5,699.9 B/A Loss ratio 69.0% C/A Expense ratio 27.6%(B+C)/A Combined ratio 96.5% D Other technical items 45.8A-B-C-D Technical result 669.4 (1) Administration expenses related to service companies, real estates and other companies not belonging to P&C segmentAssicurazioni Generali Group – FY 2011 results
  43. 43. IV. BACK UPRatios by country 43(%) ITA FRA GER CEE RoE SPA AUT SWI RoW ConsolidatedP&C Loss ratio 68.0 68.2 69.0 FY11 74.7 71.2 65.1 54.5 68.3 65.4 69.0 71.2 68.3 69.0 FY10 77.5 73.3 65.1 60.2 71.4 64.3 71.3P&C Expense ratio 26.8 27.1 26.5 FY11 22.0 27.5 29.4 35.0 28.1 38.8 27.6 26.8 26.9 26.9 FY10 22.1 28.1 30.1 33.0 28.0 37.2 27.5P&C Combined ratio 94.8 95.3 95.5 FY11 96.8 98.7 94.4 89.5 96.4 104.2 96.5 98.1 95.2 95.9 FY10 99.6 101.3 95.2 93.2 99.3 101.6 98.8Life expense ratio by country 4.4 18.6 16.3 FY11 9.7 9.5 12.8 19.8 12.1 16.3 11.6 6.7 19.6 15.2 FY10 8.7 8.2 12.4 17.3 9.8 15.2 10.4Assicurazioni Generali Group – FY 2011 results
  44. 44. IV. BACK UP Focus on operating result 44Operating result by country(1) Operating result breakdown(1) (Euro m) (Euro m) 1,499 FY10 FY11 ∆ 131 Italy 1,537 1,499 -2.5% France 754 557 -26.2% 399 Germany 713 684 -4.1% 878 98 684 CEE 419 503 +20.1% 557 46 335 10 503 RoE 697 878 +26.0% 969 259 22 322 252 286 35 RoW 387 322 -16.8% 29 378 444 295 259 Operating result(1) 4,508 4,444 -1.4% 195 Op. holding expenses (288) (294) -2.0% Italy France Germany CEE RoE RoW Consolidation Adj. (143) (222) -55.8% Life P&C Financial Total operating 4,077 3,928 -3.7% result(1) Operating result = operating result of life, P&C and financial segments, before holding expenses and consolidation adjustments Assicurazioni Generali Group – FY 2011 results
  45. 45. IV. BACK UPLife operating result 45Life operating result (Euro m) Life Operating result by country (Euro m) (Euro m) FY10 FY11 -16.0% Italy 1,188 970 -18.4% France 596 295 -50.5% 3,026 Germany 354 379 +6.9% 2,542 CEE 177 195 +10.3% RoE 417 444 +6.5% Of which: Spain 110 114 +3.5% Austria 64 61 -4.9% Switzerland 128 116 -9.1% RoW 293 259 -11.7% FY10 FY11 Total 3,026 2,542 -16.0%Assicurazioni Generali Group – FY 2011 results
  46. 46. IV. BACK UPLife net inflows by country 46 Country FY10 FY11 Like for like ∆ Italy 1,790 1,085 -39.4% France 4,444 (2,061) n.m. Germany 4,923 3,433 -30.3% CEE 534 475 -12.0% RoE 2,823 1,473 -49.9% Of which: Spain (522) (253) +51.6% Austria 163 171 +4.8% Switzerland 545 549 +0.7% RoW 1,619 1,441 -8.9% TOTAL 16,133 5,846 -64.0%Assicurazioni Generali Group – FY 2011 results
  47. 47. IV. BACK UPP&C operating result 47P&C operating result (Euro m) P&C Operating result by country (Euro m) (Euro m) FY10 FY11 +38.3% Italy 206 399 +94.4% France 149 252 +69.1% 1,560 Germany 308 259 -15.8% CEE 218 286 +30.9% 1,128 RoE 199 335 +68.4% Of which: Spain 105 139 +32.0% Austria 102 107 +5.5% Switzerland 46 51 +11.3% FY11 RoW 48 28 +40.6% FY10 Total 1,128 1,561 +38.3%Assicurazioni Generali Group – FY 2011 results
  48. 48. IV. BACK UPOther operating and non operating costs by segment 48 Life Non Life Financial (Euro m) FY10 FY11 FY10 FY11 FY10 FY11 TOTAL NET OPERATING EXPENSES (74.6) (47.3) (288.7) (259.3) (28.7) (39.7) Restructuring costs (26.2) (32.6) (63.0) (39.0) (19.8) (12.9) Other net non operating expenses(1) (84.1) (132.2) (244.1) (123.4) (36.7) (52.1) TOTAL NET NON OPERATING EXPENSES (110.3) (164.9) (307.2) (162.4) (56.5) (64.9)(1) Other non operating expenses include mainly amortization of VOBAAssicurazioni Generali Group – FY 2011 results
  49. 49. IV. BACK UPFocus on impairments(1) 49 (Euro m) Life P&C Financial Total FY10 FY11 FY10 FY11 FY10 FY11 FY10 FY11 Net impairments Equity instruments 447 637 133 178 2 1 581 816 Fixed income 12 2,115 38 242 15 3 64 2,359 Real estate 20 16 (1) 8 - - 19 25 Other investments(2) 17 635 212 225 19 1 248 862 Total net impairments 496 3,403 381 653 35 6 913 4,062 Of which Operating net 366 2,967 - - 35 6 401 2,975 impairments Non operating net 130 436 381 653 - - 512 1,087 impairments (1) Net of reverse impairments (2) Including subsidiaries and associated companies, and receivablesAssicurazioni Generali Group – FY 2011 results
  50. 50. IV. BACK UPFocus on realised gains(1) 50(Euro m) Life P&C Financial Total FY10 FY11 FY10 FY11 FY10 FY11 FY10 FY11Net realized gains Equity instruments 473 119 157 (15) 1 1 631 105 Fixed income 1,322 1,419 131 18 14 3 1,468 1,440 Real estate 90 178 141 151 - - 231 329 Other investments(2) 10 160 (16) 90 (2) 79 (9) 329Total net realized gains 1,896 1,876 412 244 13 83 2,321 2,203Of whichOperating net realized 1,839 2,019 - - 15 4 1,854 2,023gainsNon operating net 57 (143) 412 244 (2) 79 467 180realized gains(1) Excluding financial instruments at fair value through profit and loss(2) Including subsidiaries and associated companies, and receivablesAssicurazioni Generali Group – FY 2011 results
  51. 51. IV. BACK UP Focus on non operating items: interest expenses on financial debt 51Interest expenses on financial debt (Euro m) Total financial debt (Euro m) 704 646 59 12,272 12,218 (1) 645 646 10.9% 9.5% FY10 FY11 53.0% 54.1%Average cost & maturity of financial debt (%) 36.1% 36.5% FY10 FY11 FY10 FY11 Average cost (%) 5.36% 5.37% Senior Sub/Hybrid Other Average maturity (years) 6.87 5.88(1) Net of interest expenses related to Euro 1,750 m senior bond repaid on 20/07/2010 Assicurazioni Generali Group – FY 2011 results
  52. 52. IV. BACK UP Reclassified P&L account 52(Euro m) Total FY10 FY11Total Operating result 4,077 3,928 Net earned premiums 65,727 62,739 Net insurance benefits and claims (67,720) (55,036) Acquisition and administration costs (11,638) (11,807) Net fee and commission income and net income from financial service activities 868 933 Operating income from other financial instruments 12,638 10,658 Operating income from financial instruments at fair value through profit or loss 4,880 (2,905) of which net income from fin. assets and liabilities where the risk is borne by the policyholders 3,824 (3,158) Operating holding expenses (288) (294) Net other operating expenses (389) (360)Non-operating result (1,200) (2,013) Non-operating income from other financial instruments (32) (907) Non-operating income from financial instruments at fair value through profit or loss 37 (34) Non-operating holding expenses (726) (680) Interest expenses on financial debt (704) (646) Other non-operating holding expenses (22) (34) Net other non-operating expenses (479) (392)Earnings before taxes 2,877 1914Income taxes (909) (762)Result from discontinued operations (Intesa Vita) 51 -Consolidated result of the period 2,018 1,153Result of the period attributable to minority interests (316) (297)Result of the period 1,702 856 Assicurazioni Generali Group – FY 2011 results
  53. 53. IV. BACK UP Reclassified P&L account by segment - FY 2010 53 Unallocated holding Consolidation (Euro m) Life Non life Financial(1) expenses adjustments Total Total Operating result 3,026 1,128 354 (288) (143) 4,077 Net earned premiums 45,453 20,274 - - - 65,727 Net insurance benefits and claims (53,265) (14,451) - - (4) (67,720) of which var. of provisions related to unit linked business (6,158) - - - - (6,158) Acquisition and administration costs (5,137) (5,602) (900) - - (11,638) Net fee and commission income and net income from financial service activities 109 - 894 - (135) 868 Operating income from other fin. Instruments 11,212 1,152 280 - (6) 12,638 Operating income from fin. Instruments at fair value through profit or loss 4,728 44 108 - - 4,880 of which net income from fin.assets and liabilities where the risk is borne by the policyholders 3,824 - - - - 3,824 Operating holding expenses - - - (288) - (288) Net other operating expenses (75) (289) (28) - 3 (389) Non-operating result (183) (239) (59) (726) 7 (1,200) Non-operating income from other fin.instr. (73) 31 (3) - 13 (32) Non-operating income from fin. instr.at fair value through profit or loss - 37 - - - 37 Non-operating holding expenses - - - (726) - (726) Net other non-operating expenses (110) (307) (56) - (5) (479) Earnings before taxes 2,843 889 295 (1,014) (136) 2,877(1) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Report Assicurazioni Generali Group – FY 2011 results
  54. 54. IV. BACK UP Reclassified P&L account by segment - FY 2011 54 Unallocated holding Consolidation (Euro m) Life Non life Financial(1) expenses adjustments Total Total Operating result 2,542 1,561 342 (294) (222) 3,928 Net earned premiums 42,076 20,662 - - - 62,739 Net insurance benefits and claims (40,770) (14,247) - - (19) (55,036) of which var. of provisions related to unit linked business 2,132 - - - - 2,132 Acquisition and administration costs (5,176) (5,715) (915) - (1) (11,807) Net fee and commission income and net income from financial service activities 178 - 859 - (104) 933 Operating income from other fin. Instruments 9,336 1,080 328 - (85) 10,658 Operating income from fin. Instruments at fair value through profit or loss (3,055) 41 109 - - (2,905) of which net income from fin.assets and liabilities where the risk is borne by the policyholders (3,158) - - - - (3,158) Operating holding expenses - - - (294) - (294) Net other operating expenses (47) (259) (40) - (14) (360) Non-operating result (744) (606) 16 (680) - (2,013) Non-operating income from other fin.instr. (579) (409) 81 - - (907) Non-operating income from fin. instr.at fair value through profit or loss - (34) - - - (34) Non-operating holding expenses - - - (680) - (680) Net other non-operating expenses (165) (162) (65) - - (392) Earnings before taxes 1,798 955 357 (974) (222) 1,914(1) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Report Assicurazioni Generali Group – FY 2011 results
  55. 55. IV. BACK UP Focus on 4Q11 results 55(Euro m) 4Q11/ 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 4Q10 Life premiums(1) 14,214 12,137 10,921 13,826 12,340 11,503 10,543 12,009 -13.0%(2) P&C premiums 6,650 5,128 4,780 5,532 6,792 5,219 4,931 5,823 +6.1%(2) Total premiums 20,864 17,265 15,700 19,359 19,131 16,722 15,474 17,832 -7.6%(2) Life operating 866 702 734 724 881 782 315 564 -22.2% result P&C operating 312 274 296 246 393 406 405 356 +44.7% result Financial 98 105 74 77 115 96 69 63 -17.9% operating result Other(3) (98) (123) (108) (103) (133) (131) (96) (156) -51.5% Total operating 1,178 958 997 944 1,256 1,153 693 826 -12.5% result Net result 527 346 440 389 616 190 20 31 -92.0%(1) Including investment contracts(2) On like for like basis(3) Including operating holding expenses and consolidation adjustments Assicurazioni Generali Group – FY 2011 results
  56. 56. Agenda 56 IV. Backup P&L Balance sheet Life Capital Sustainability DefinitionsAssicurazioni Generali Group – FY 2011 results
  57. 57. IV. BACK UPConsolidated balance sheet 57 Assets Liabilities (Euro bn) FY10 FY11 (Euro bn) FY10 FY11 Shareholders’ Equity Intangible assets 10.7 10.4 (Group share) 17.5 15.5 Investments 364.3 346.7 Minority interests 2.6 2.6 Shareholders’ Equity 20.0 18.1 Cash 11.0 25.6 Operating debt 41.6 46.9 Other credits 11.5 11.3 Financial debt 12.3 12.2 Technical reserves 329.6 325.0 Tangible assets 3.8 4.9 Payables and other provisions 9.1 9.0 Other assets (1) 21.2 24.2 Other liabilities 9.7 11.8 Total Liabilities and Total Assets 422.4 423.1 Shareholders’ Equity 422.4 423.1(1) Including reinsurance amounts of technical reserve, deferred tax assets, deferred acquisition costs and other assetsAssicurazioni Generali Group – FY 2011 results

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