Generali Group 2011 Results

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  • 1. Generali Group2011 Results Milan, March xxx, 2010 March 21, 2012 March 2006
  • 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. Agenda 3 I. FY 2011 results overview Giovanni Perissinotto - Group CEOAssicurazioni Generali Group – FY 2011 results
  • 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. 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. 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. 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. Agenda 8 II. Insurance operations Sergio Balbinot - Managing DirectorAssicurazioni Generali Group – FY 2011 results
  • 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Agenda 36 IV. Backup P&L Balance sheet Life Capital Sustainability DefinitionsAssicurazioni Generali Group – FY 2011 results
  • 37. Agenda 37 IV. Backup P&L Balance sheet Life Capital Sustainability DefinitionsAssicurazioni Generali Group – FY 2011 results
  • 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Agenda 56 IV. Backup P&L Balance sheet Life Capital Sustainability DefinitionsAssicurazioni Generali Group – FY 2011 results
  • 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
  • 58. IV. BACK UPFY11 Assets Under Management 58 Total Euro 466.6 bn Esposizioni nette a governativi di Third parties AUM Grecia, Spagna, 97.5 Portogallo e Irlanda 58.3 Unit Linked Available for sale Loans Fixed income Other 56.5% 24.7% instruments 4.0% Real Estate 77.6% 4.2% Real Estate Group 4.9% participations 310.8 0.6% Equity Held to maturity 5.5% Fin. Instr. at fair 1.7% value thr. P&L Cash & equival. “Own Investments”(1) Cash & equival. 4.3% 7.9% 7.9%(1) For the definitions refer to the related section in the backupAssicurazioni Generali Group – FY 2011 results
  • 59. IV. BACK UPFY11 Own Investments at amortized cost and fair value(1) 59 Total Euro 310.8 bn Fixed income instruments 24.7 88.9% Of which bonds 84.6% Equity 9.0% 189.0 Fixed income instruments Other 75.5% 2.1% Of which bonds 53.0% Real estate Of which loans 22.5% 13.5% Other Cash & equivalents 9.1% Investments at amortized cost 97.2 Subs, ass. & JVs Investments at fair value 2.0%(1) Excluding unit linked and third partiesAssicurazioni Generali Group – FY 2011 results
  • 60. IV. BACK UP FY11 book value & market value of Own Investments(1) 60 (Euro m) Life P&C Financial Total(2) Asset classes BV MV BV MV BV MV BV MV Equity 13,415 13.415 3,218 3,218 465 465 17,098 17,098 Fixed income instruments 208,088 209,689 22,194 22,134 13,038 13,229 241,278 243,008 Government 100,784 102,388 9,642 9,678 3,329 3,306 113,755 115,372 Corporate 85,329 85,132 9,552 9,457 3,189 3,144 97,682 97,346 Other fixed income 21,976 22,169 3,000 2,998 6,520 6,779 29,841 30,291 Real estate 9,824 12,169 5,474 8,626 24 36 15,322 20,830(1) Excluding unit linked and third parties(2) Net of consolidation adjustments Assicurazioni Generali Group – FY 2011 results
  • 61. IV. BACK UPQuality of FY11 fixed income portfolio 61Fixed income portfolio composition (Euro 241.3 bn) By issuer (%) Average bond portfolio 10.6 13.5 12.4 duration by segment (years) Life P&C 50.0 41.0 43.0 40.5 Government 7.0 5.3 24.5 48.4 43.4 47.1 25.5 Corporate 5.0 3.2 Life P&C Financials Total Government Corporate Other fixed incomeBond portfolio by rating (%) % Current return % Comprehensive by segment return by segment 1.0% 10.1% Life 4.5 0.8 32.2% 15.1% 39.0% 2.6% P&C 3.9 1.2 AAA AA A BBB NIG NRAssicurazioni Generali Group – FY 2011 results
  • 62. IV. BACK UPFocus on FY11 government bond portfolio 62(Euro 113.8 bn, 47.1% of total fixed income portfolio) % Split by rating Total Of which % Split by country Total domestic AAA 32.1 Italy 40.3 34.9 AA 18.7 Germany 10.8 8.3 A 42.6 France 11.9 9.1 BBB 3.6 4.5 CEE 6.2 Not investment grade 2.9 RoE 21.6 7.1 Not rated 0.1 RoW 9.2 5.7 % Split by accounting treatment % of segmental own investments 16.5 83.5 40% 28% 12% Life P&C Financial Amortized cost Fair ValueAssicurazioni Generali Group – FY 2011 results
  • 63. IV. BACK UPFocus on Greece Sovereign exposure 63 1H11: Impairment of government bonds with maturities ≤ 2020 based on market values as of 30 June 2011 9M11: All Greek government bonds have been impaired based on market values at 30 September 2011 FY11: All Greek government bonds have been impaired based on market values at 31 December 2011 BS after BS before impairment P&L impact impairment (2) Gross book Gross Gross Net Haircut Gross Net impact (1) (2) value market unrealised unrealised % Impairment Non Period Operating value losses losses(2) operating (A) (B) (C) = (A) - (B) (D) = (E) + (F) (E) (F) June 2011 2,974 1,539 -1,435 -208 46.4% -1,002 -53,4 -142,1 -140 -68 September 2011 2,954 1,143 -1,812 -329 60.8% -1,812 -191,3 -273,6 -329 0 December 2011 2,954 675 -2,279 -686 76.1% -2,279 -378 -309 -472 0(1) Haircut on nominal value of Greek bonds(2) Net of policyholders’ participation and taxesAssicurazioni Generali Group – FY 2011 results
  • 64. IV. BACK UPPeripheral government bond portfolio: focus on country exposure 64Italian government bonds (Euro 45.9 bn) Spanish government bonds (Euro 5.5 bn) 6.5% 7.4% 3.1% 4.5% 2.3% Italy Spain Germany 20.8% Germany France France RoE 68.7% RoE 86.7%Portuguese government bonds (Euro 1.6 bn) Irish government bonds (Euro 1.6 bn) 3.7% 3.4% 0.4% Italy 11.4% Italy Germany Germany 23.3% 52.4% France France 40.5% RoE RoE 64.9%Assicurazioni Generali Group – FY 2011 results
  • 65. IV. BACK UPFocus on FY11 corporate bond portfolio 65(Euro 97.7 bn, 40.5% of total fixed income portfolio) % Split by rating Total % Split by industry Life P&C AAA 32.3 Financials 36.5 49.3 Covered bonds 32.7 23.2 AA 10.9 Utilities 6.9 4.9 A 34.8 ABS 2.5 4.2 BBB 17.7 Telecom 4.3 3.7 Not investment grade 2.2 Industrial 5.0 4.5 Not rated 2.1 Other 12.1 10.2 % Split by accounting treatment % of segmental own investments 33.6 66.4 34% 27% 12% Amortized cost Fair Value Life P&C FinancialAssicurazioni Generali Group – FY 2011 results
  • 66. IV. BACK UPFocus on FY11 covered bond & financial corporate bond portfolios 66(Covered bonds: Euro 30.1 bn) % Split by rating Total % Split by country Total AAA 87.3 Italy 3.7 AA 8.3 Germany 34.5 A 3.8 France 21.8 BBB 0.3 CEE 1.1 Not investment grade 0.3 RoE 38.2 Not rated 0.0 RoW 0.7(Financial corporate bonds: Euro 38.4 bn) % Split by rating Total % Split by country Total AAA 9.1 Italy 13.6 AA 13.0 Germany 20.7 A 52.7 France 12.7 BBB 20.5 CEE 1.8 Not investment grade 3.6 RoE 31.9 Not rated 1.1 RoW 19.3Assicurazioni Generali Group – FY 2011 results
  • 67. IV. BACK UPFocus on FY11 equity portfolio 67 (Euro 17.1 bn) FY11 Group net equity exposure % split by industry Life P&C Financials 16.5 27.4 17.1 Consumer 10.3 7.8 0.0 Utilities 6.9 5.4 5.4 Industrial 6.0 7.1 (10.8) (0.6) (0.3) Other 16.2 19.5 Gross Hedging Policyholders’ Taxes Minorities Net equity interests equity exposure exposure Funds 44.2 32.7 % of total own investments % Current return % Comprehensive by segment return by segment Life 3.8 -12.5 9% 2% P&C 2.8 -7.9 5% Life P&C FinancialAssicurazioni Generali Group – FY 2011 results
  • 68. IV. BACK UPFY11 Group real estate assets (1/2) 68 Country Total BV % of Total MV % of (Euro bn) the total (Euro bn) the total Italy 6.5 35% 9.8 40% France 4.2 23% 5.5 23% Germany 4.0 22% 4.0 16% CEE 0.2 1% 0.2 1% RoE(1) 3.1 17% 4.5 18% RoW (2) 0.4 2% 0.4 2% Total 18.4 100% 24.4 100%(1) RoE includes Austria, Spain, Switzerland, Belgium and Netherlands(2) RoW includes Israel, Latin America, Far East and USInvestment properties vs self use Yield on investment properties Self Use % Current return by segment Total 14.5 % Life 7.3% Investment P&C 8.6% properties 85.5 %Assicurazioni Generali Group – FY 2011 results
  • 69. IV. BACK UPFY11 Group real estate assets (2/2) 69 Direct Investments in leader countries Country Area % of MV % of (sqm m) total area (Euro bn) Total MV Italy 2.5 37% 8.5 38% France 1.6 23% 5.3 24% Germany 1.3 18% 3.2 15% CEE 0.1 2% 0.2 1% RoE 1.3 19% 4.5 20% RoW 0.1 1% 0.4 2% Total 6.9 100% 22.1 100% Office 65% Other 7% Logistic 3% Residential 10% Retail 15%Assicurazioni Generali Group – FY 2011 results
  • 70. IV. BACK UPInvestment yields(1) 70 Bonds and Loans Equities Investment Other Total properties % return FY10 FY11 FY10 FY11 FY10 FY11 FY10 FY11 FY10 FY11 LIFE Current 4.4 4.5 3.2 3.8 7.3 7.3 2.1 2.8 4.3 4.5 Total P&L 5.0 4.0 4.6 -0.4 8.2 9.0 1.6 -0.3 5.0 3.7 Comprehensive 2.6 0.8 3.7 -12.5 8.6 8.7 1.6 -0.3 2.8 0.2 NON LIFE Current 3.8 3.9 2.6 2.8 8.7 8.6 2.9 1.9 4.4 4.3 Total P&L 4.6 3.0 2.4 -3.2 11.0 11.1 1.9 3.5 5.3 3.8 Comprehensive 3.2 1.2 0.8 -7.9 11.2 11.1 1.9 3.5 4.3 2.2 TOTAL Current 4.3 4.4 3.1 3.6 7.8 7.7 1.8 2.0 4.2 4.3 Total P&L 4.9 3.9 4.3 -0.7 9.3 9.7 1.2 0.5 4.9 3.7 Comprehensive 2.6 0.9 3.2 -11.2 9.6 9.5 1.2 0.5 3.0 0.6 (1) For the definitions refer to the related section in the backupAssicurazioni Generali Group – FY 2011 results
  • 71. IV. BACK UP4Q11 IFRS Shareholders’ equity roll forward 71IFRS Shareholders’ equity roll forward (Euro m) -2.3% 17,490 15,846 31 29 15.486 (319) (48) (54) Shareholders’ Shareholders‘ ∆ in AFS 4Q 2011 ∆ Currency ∆ Cash Flow Other Shareholders’ Equity FY10 Equity 9M11 Reserve Net Result Translation Hedge Equity FY11 Reserve Reserve Change in AFS reserve (Euro m) 182 (1.836) (482) (19) (2.156) AFS Reserve Impact Equity Impact Bond Other AFS Reserve 9M11 Investments Investments FY11Assicurazioni Generali Group – FY 2011 results
  • 72. IV. BACK UPPro forma Solvency I update 72Pro forma Solvency I update without cap on locally admitted unrealized gains on real estate andwith Italian “anti crisis regulation”(Euro bn) Required margin Available margin 140%(1) Main drivers of change 134%(2) Available margin 23.6 Consolidated result: + 1.2 23.8 Proposed dividends(3): - 0.5 16.9 Financial markets and other elements: - 1.6 17.8 Impact from the potential application of the “anti crisis regulation” + 1.1 Required Margin Growth of life technical provisions and financial sector capital requirements: + 0.9 FY10 FY11(1) Including off balance sheet unrealized gains on real estate, 8%pts of which subject to local authorities’ authorization.(2) Including off balance sheet unrealized gains on real estate (7%pts of which subject to local authorities’ authorization; 3%pts of which already locally admitted but capped) and6%pts positive impact from the potential application of the “anti crisis regulation” only related to European Union Government bonds held by Italian companies as durableinvestment(3) Proposed dividend for Shareholders: Euro 0.3 bn; proposed dividend for Minorities: Euro 0.2 bnAssicurazioni Generali Group – FY 2011 results
  • 73. IV. BACK UPRegulatory Solvency I development in 4Q11 73 (Euro bn) Required margin Available margin 118% Main drivers of change 117% Available margin Change in rules on cap on locally admitted unrealized gains on real 20.8 20.4 estate(1): + 0.8 17.3 17.8 Consolidated result: + 0.1 Proposed dividends: - 0.5 Required Margin Growth of financial sector capital requirements: + 0.5 9M11 FY11(1) The rule allows the exclusion of AFS losses related to government bonds in the calculation of the cap on locally admitted unrealized gains on real estate. With the currentrule, Solvency I ratio as at 9M11 would have been 122%Assicurazioni Generali Group – FY 2011 results
  • 74. IV. BACK UPStress tests on Solvency I and Shareholders’ equity 74Impact on regulatory solvency I ratio (%) Impact on Shareholders’ equity (Euro bn) Total ratio 01.03.2012 132 (1) (1) Equities -30% 122 Equities -30% (1.6) Interest rate +100bps 123 Interest rate +100bps (1.9) Interest rate -100bps 141 Interest rate -100bps 1.9 Credit spread +100bps 137 Credit spread +100bps (0.8) Real estate -10% 128(1) Before hedging impactAssicurazioni Generali Group – FY 2011 results
  • 75. IV. BACK UP Total comprehensive income(1) 75 (Euro m) 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1,916 +3,000 m 1,033 459 1,308 (644) 794 196 (245) 270 (178) 181 (1,326) (1,031) (306) (505) (1,010) -3,000 m 1Q08 1H08 9M08 FY08 1Q09 1H09 9M09 FY09 1Q10 1H10 9M10 FY10 1Q11 1H11 9M11 FY11 (1,031) (1,536) (1,354) (2,365) (178) 616 2,532 2,990 1,308 1,063 2,096 1,452 270 466 (860) (1.166)(1) For the definitions refer to the related section in the backup Assicurazioni Generali Group – FY 2011 results
  • 76. IV. BACK UPAFS reserve breakdown 76 (Euro m) FY09 FY10 FY11 Fixed income instruments 225 (562) (1,780) Government 281 (396) (1,216) Corporate (56) (166) (564) Equity 475 277 (382) Investment funds and other 29 101 7 TOTAL 730 (184) (2,156)Assicurazioni Generali Group – FY 2011 results
  • 77. IV. BACK UPFinancial debt schedule 77Financial debt breakdown by expiry date/call date (Euro m) 2,500 2,000 1,500 1,000 500 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2024 2026 Bonds Hybrid Subordinated Senior Loans Assicurazioni Generali Group – FY 2011 results
  • 78. IV. BACK UPFY11 technical reserves 78 (Euro m) Traditional Linked TOTAL Life net technical reserves(1) Italy 79,863 5,692 85,555 France 66,401 13,115 79,516 Germany 74,897 12,051 86,948 CEE 5,505 1,259 6,764 GROUP TOTAL 258,311 58,253 316,564(1) Including investment contracts for Euro 15,670 million (Euro m) Motor Non Motor TOTAL P&C net technical reserves Italy 4,910 6,862 11,772 France 2,165 3,306 5,472 Germany 1,797 2,285 4,082 CEE 1,203 838 2,041 GROUP TOTAL 13,602 17,002 30,604Assicurazioni Generali Group – FY 2011 results
  • 79. IV. BACK UPOperating ratio on investments(1) 79 Life operating ratio on investments (%) FY10 (%) FY11 (%) (%pts.) Italy 1.44 1.21 -0.23 France 0.74 0.36 -0.38 Germany 0.43 0.44 +0.01 CEE 2.51 2.63 +0.12 GROUP TOTAL 0.97 0.80 -0.17 P&C operating ratio on investments (%) FY10 (%) FY11 (%) (%pts.) Italy 1.63 3.34 +1.70 France 2.78 4.73 +1.95 Germany 5.01 4.45 -0.56 CEE 6.82 8.53 +1.71 GROUP TOTAL 3.07 4.32 +1.25 (1) For the definitions refer to the related section in the backupAssicurazioni Generali Group – FY 2011 results
  • 80. IV. BACK UPNumber of shares(1) 80 Ordinary Own Shares Shares issued shares outstanding (1) (2) (1-2) Weighted number of shares outstanding in year ending 12.31.2010 1,540,850,443 shares outstanding at 12.31.2010 1,556,873,283 15,999,446 1,540,873,837 Capital increase - - - Stock grant plan - - - Exercise of stock options - - - Generali shares purchase - (1,976) 1,976 Change in scope - - - shares outstanding at 12.31.2011 1,556,873,283 15,997,470 1,540,875,813 Weighted number of shares outstanding in year ending 12.31.2011 1,540,875,154 Potential (dilutive) shares: Stock options - - - Weighted number of shares outstanding in year ending 12.31.2011 adjusted for the effects of all dilutive potential ordinary shares. 1,540,875,154 Weighted number of shares outstanding in year ending 12.31.2010 adjusted for the effects of all dilutive potential ordinary shares. 1,540,850,443 (1) Calculation based on IAS 33Assicurazioni Generali Group – FY 2011 results
  • 81. IV. BACK UPPer share(1) indicators 81 (Euro) FY11 Earnings per share(1) 0.55 Dividend per share 0.20 Book Value per share(2) 10.1 ANAV per share(2) 8.5 Embedded Value per share(2) 14.6 (1) Calculated on the basis of weighted shares outstanding during 2011 (1.540.875.154) (2) Calculated on the basis of shares outstanding at 31.12.2011 (1.540.875.813)Assicurazioni Generali Group – FY 2011 results
  • 82. Agenda 82 IV. Backup P&L Balance sheet Life Capital Sustainability DefinitionsAssicurazioni Generali Group – FY 2011 results
  • 83. IV. BACK UPLife & health EV roll-forward 83(Euro m) 260 ( 7,224 ) 1,580 609 976 23,927 ( 194 ) 24,341 ( 561) 19,372 Including: -2.3 bn due to interest rate decrease -4.3 bn due to spread widening and equity market drop EV FY10 Perimeter, Model Adjusted Expected Operating Economic Capital EV FY11 changes EV FY10 NBV contribution variance FX variance flow Life & health embedded value earnings (Euro m) Return on embedded value Adjusted embedded value FY10 24,341 -18.1% Life & health RoEV Embedded value earnings -4,408 Life & health Normalised EV earnings (1) 2,858 11.7% Normalised RoEV(1) Life normalised EV earnings defined as NBV + Expected contribution + Operating variance excluding extraordinary expenses (-43 m)Assicurazioni Generali Group – FY 2011 results
  • 84. IV. BACK UPFY11 Life Embedded Value sensitivity 84 Life Embedded Value Euro 19,372 m (%) Risk Free Rate +100bps +12.2 Risk Free Rate -100bps -17.2 Equity +10% +4.8 Equity -10% -4.8 Zero Liquidity Premium -35.1 Equity Implied Volatility +25% -1.2 Swaption Implied Volatility +25% -3.8Assicurazioni Generali Group – FY 2011 results
  • 85. IV. BACK UPLife new business: APE 85(Euro m) APE Annual Premiums Single Premiums Like for like Like for like Like for like 2010 2011 2010 2011 2010 2011Italy 1,766 1,715 -2.9% 1,091 1,175 +7.7% 6,753 5,404 -20.0%France 1,172 939 -19.8% 307 320 +4.5% 8,649 6,187 -28.5%Germany 976 908 -7.0% 709 675 -4.8% 2,665 2,324 -12.8%CEE 172 147 -8.9% 139 126 -3.8% 330 210 -30.5%RoE 792 657 -17.4% 442 432 -2.9% 3,506 2,254 -35.7% Austria 97 104 +7.0% 72 81 +12.1% 252 232 -7.9% Spain 118 126 +6.2% 55 56 +2.1% 636 698 +9.7% Switzerland 96 85 -13.5% 89 78 -14.1% 69 67 -5.4%RoW 455 421 +7.0% 364 366 +10.7% 908 553 -12.3%Total 5,333 4,787 -9.0% 3,052 3,094 +2.7% 22,810 16,933 -24.8%Assicurazioni Generali Group – FY 2011 results
  • 86. IV. BACK UP Life new business: value and margins 86(Euro m) NBV Margins on APE Margins on PVNBP Historical Like for like 2010 2011 2010 2011 ∆ %pts 2010 2011 ∆ %ptsItaly 326 374 +14.7% +14.8% 18.4% 21.8% +3.3% 2.2% 2.6% +0.4%France 146 128 -12.4% -12.4% 12.5% 13.7% +1.2% 1.3% 1.4% +0.1%Germany 173 166 -3.9% -3.9% 17.7% 18.3% +0.6% 1.7% 1.7% +0.0%CEE 56 52 -5.5% +0.0% 32.3% 35.8% +3.4% 4.3% 5.0% +0.6%RoE 197 134 -32.1% -32.5% 24.9% 20.4% -4.5% 3.0% 2.6% -0.5% Austria 23 15 -36.0% -36.0% 23.3% 14.0% -9.4% 2.3% 1.3% -1.1% Spain 28 21 -24.5% -24.5% 23.3% 16.6% -6.8% 2.8% 2.0% -0.9% Switzerland 41 16 -60.6% -61.8% 42.8% 18.9% -23.9% 4.0% 1.7% -2.3%RoW 153 121 -20.4% -11.9% 33.5% 28.8% -4.7% 3.6% 3.0% -0.6%Total 1,050 976 -7.1% -5.6% 19.7% 20.4% +0.7% 2.2% 2.3% +0.1% Assicurazioni Generali Group – FY 2011 results
  • 87. IV. BACK UPValue of asset gathering 87 Value of In-force business (Euro m) Value of new business (Euro m) 1,117 1,075 +3.9% 206 +28.3% 161 2010 2011 2010 2011 2010 2011 % 2010 2011 % Assets under New inflows management (Euro bn) 62.7 65.3 +4.2% (Euro bn) 17.2 24.3 +41.6% Value of business In- Value of new business force in % of AUM 1.72 1.71 -1bp in % of New inflows 0.94 0.85 -9bps Retail asset gathering business relates to the groups two primary asset gatherers, BSI and Banca Generali. The value of in-force asset gathering business in BSI is the present value of the projected stream of future after-tax profits that are expected to be generated by the private banking arrangements which are in force at the valuation date. For Banca Generali, the value of in-force business is the present value of the projected stream of distribution margins and fee income, net of costs, that are expected to arise in Banca Generali and in the group’s asset management companies, which is associated with the retail asset management products in force at the valuation date. Note that from 2008, the value arising in Banca Generali relating to insurance business has been considered as a look through in the Life Embedded Value. New asset management business comprises the amount of new money collected, net of switches within different classes of asset management products. The value added by new business allows for the actual acquisition costs incurred, using end-year assumptions, including projected future investment returns in the year of sale. Valuation according to traditional EV methodology and reviewed by Towers Watson.Assicurazioni Generali Group – FY 2011 results
  • 88. IV. BACK UPInvestment in life new business 88(Euro bn) 2010 2011 1st year P&L impact -1.0 1st year P&L impact -1.0 In % of NBP 3.8% In % of NBP 4.9% Capital absorption -0.7 Capital absorption -0.8 In % of NBP 2.8% In % of NBP 3.8% 1st year strain -1.7 1st year strain -1.7 In % of NBP 6.6% In % of NBP 8.7% New Business Value 1.05 New Business Value 0.98 NBM 19.7% NBM 20.4% Internal Rate of Return 13.9% Internal Rate of Return 12.6% Payback period 6.5 years Payback period 7.4 yearsAssicurazioni Generali Group – FY 2011 results
  • 89. IV. BACK UPExpected Life cash flow generation 89Life & Savings expected free cash flows (Euro m) 629 Capital (760) 459 (720) Profit (987) (990) 2,151 2,130 1,034 879 Existing Run Off New Business Free Cashflow Existing Run Off New Business Free Cashflow 2011 2011 2011 2010 2010 2010 2011 Inforce 2011 New Business Expected undiscounted cash flows Expected undiscounted cash flows 14,000 2,000 12,000 1,500 1,000 10,000 500 8,000 0 6,000 -500 4,000 -1,000 2,000 -1,500 0 -2,000 Years Years Years Years Years Years Years Year 0 Years Years Years Years Years Years Years 1-5 6-10 11-15 16-20 21-25 26-30 31+ 1-5 6-10 11-15 16-20 21-25 26-30 31+Assicurazioni Generali Group – FY 2011 results
  • 90. 90 IV. Backup P&L Balance sheet Life Capital Sustainability DefinitionsAssicurazioni Generali Group – FY 2011 results
  • 91. IV. BACK UP EBS results: risk capital diversification and capital allocation 91 Breakdown of Group risk capital Total diversification benefits at 23% after diversification Geographic breakdown (Euro bn) 30.1(2) Other Not under IM(1) 2.1 / 7% 25% Operational 2.1 / 7% Italy (6.9) (2) Group Risk 41% Non-Life U/W 2.6 / 8% Capital €23.2 bn Life U/W 3.3 / 11% 23% France 22% Credit & Germany Currency 7.0 / 23% 23.2(2) 12% Interest rate 4.4 / 15% Real estate 2.9 / 10% Property & Casualty: Resulting at 34.0% of Net Earned Premiums Equity 5.9 / 19% Life & Health: Resulting at 4.9% of Net Technical Provisions Group RAC at 99.95% Group Group RAC Financial: Resulting at 1.6% of before diversification diversification at 99.95% AuM(1) Not under Internal Model refers to entities currently based on previous top-down model(2) Based on preliminary figures Assicurazioni Generali Group – FY 2011 results
  • 92. IV. BACK UPFY11 reconciliation of life & health MCEV with group EV (EBS basis) 92 Life & Health (Euro m) Other GROUP MCEV IFRS equity 11,107 4,379 15,486 MTM of Assets 3,386 2,876 6,262 Goodwill (633) (6,761) (7,394) Life DAC, VoBA and other adjustments (2,652) (840) (3,491) MTM of Debt and Employee Benefit Plans (87) 1,021 934 Fair Value adj, of P&C Liabilities - 1,268 1,268 Unrealised Gains included in L&H VIF 17 0 17 Adjusted Net Asset Value 11,138 1,943 13,081 In-force value (Life & AuM) 8,233 1,117 9,350 Embedded Value (EBS basis) 19,372 3,060 22,431Assicurazioni Generali Group – FY 2011 results
  • 93. IV. BACK UPFrom IFRS Equity to Available Capital 93 (Euro m) 12,401 FY11 5,767 29,030 6,262 (10,886) 15,486 + 13,544 IFRS equity MtM of Assets MtM of Liab. GW & Oth. Intang. Sub.Debt incl. AC Available Capital (Euro m) Increase of 13,544 due to: 29,030 1,117 22,431 + 18,663 impact of unrealised gains and losses on Assets and Financial Liabilities and Fair Value (6,313) (1,402) adjustments on Technical Provisions; - 10,886 elimination of Goodwill and Intangible Assets; Available Adj. For CoC AuM VIF Group EV + 5,767 inclusion of Fair Value of Subordinated Capital Sub. Debt Debt.Assicurazioni Generali Group – FY 2011 results
  • 94. 94 IV. Backup P&L Balance sheet Life Capital Sustainability DefinitionsAssicurazioni Generali Group – FY 2011 results
  • 95. IV. BACK UPGenerali in the ethical indices 95Assicurazioni Generali Group – FY 2011 results
  • 96. IV. BACK UPGlobal Added Value (GAV) 96GAV (Euro m) 2011 GAV breakdown (%) Shareholders Group -6.6% 4.8% 4.3% Community 13,633 0.4% 12,635 12,737 Credit capital providers(1) 9.8% State 5.1% 2009 2010 2011 Agents & FAs Employees 42.1% 33.5% (1) Total interest expense (including operating debt)Assicurazioni Generali Group – FY 2011 results
  • 97. IV. BACK UPNumber of employees 97Number of employees 2011 number of employees by area (%) Italy -3.9% Rest of World 20.7% 15.6% 85,322 85,368 81,997 Rest of Europe 17.9% CEE 16.5% 2009 2010 2011 Germany France 18.4% 10.8%Assicurazioni Generali Group – FY 2011 results
  • 98. IV. BACK UPTraining 98Hours of per capita training 2011 hours of per capita training by area -2.5% 41.1 40.1 31.7 2009 2010 2011Assicurazioni Generali Group – FY 2011 results
  • 99. IV. BACK UPAllocation to the community 99Allocation to the community (Euro m) 2011 allocation to the community by area (%) Italy +7.9% Rest of World 40.5% 5.3% 45.5 49.1 41.2 Rest of Europe 20.6% CEE 12.2% 2009 2010 2011 Germany France 17.7% 3.7%Assicurazioni Generali Group – FY 2011 results
  • 100. IV. BACK UPEnvironmental data(1) 100 2010 2011 Change Per capita electrical energy consumption (kWh) 5,192 4,831 -7.0% Renewable sources quota 56.9% 69.0% - Paper consumption (quintals) 71,288 71,314 0.0% Environmentally friendly paper quota 47.5% 65.8% - Per capita water consumption 21 19 -8.7% (cubic meters) Selective waste collection quota 78.0% 75.4% -(1) Data refers to the Environmental Management System (EMS) of the Generali Group. A set of buildings in six countries (Italy, Austria, France, Germany, Spain and Switzerland) is currently included in the EMSAssicurazioni Generali Group – FY 2011 results
  • 101. IV. BACK UPEnvironmental data(1) 101 2010 2011 Change Total emissions of CO2 equivalent 97,739 92,273 -5.6% Total emissions of CO2 equivalent - Scope 1 20,342 18,216 -10.5% (Direct emissions produced by heating systems and the corporate fleet of cars) Total emissions of CO2 equivalent - Scope 2 (Indirect emissions from energy consumption, 55,201 51,944 -5.9% associated with the use of electrical energy and district heating) Total emissions of CO2 equivalent - Scope 3 22,195 22,113 -0.4% (Indirect emissions not from energy consumption, connected to the employee work journeys)(1) Data refers to the Environmental Management System (EMS) of the Generali GroupAssicurazioni Generali Group – FY 2011 results
  • 102. 102 IV. Backup P&L Balance sheet Life Capital Sustainability DefinitionsAssicurazioni Generali Group – FY 2011 results
  • 103. IV. BACK UPDefinitions: P&L and balance sheet (1/2) 103 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 income from bonds and loans issued by Group companies and investments in consolidated subsidiaries backing policyholders’ liabilities Life Net Inflows Premiums inflows in the period less benefits paid to the policyholders. It does not include revaluation of mathematical reserves Life Operating Result consists of the following elements: i) "Technical Margin" includes loadings, risk result, surrender result; it is gross of acquisition and administration costs ii) "Investment Result" includes interests and dividends, interest expenses on operating debt, G/L on foreign currency and investment expenses, net of policyholder benefits; it includes also operating realised and unrealised G/L, net of policyholder benefits iii) "Expenses" include acquisition and administration costs and other net operating items (it does not consider any loading charged to policyholders) “Operating ratio on Investments” is calculated as Operating result on the average of Investments at book value Like for Like changes calculated considering equivalent exchange rates and scope of consolidation Operating Result Operating result of life, P&C and financial segments, before holding expenses and consolidation adjustmentsAssicurazioni Generali Group – FY 2011 results
  • 104. IV. BACK UPDefinitions: P&L and balance sheet (2/2) 104 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. They are net of consolidation adjustments. P&C Operating Result consists of the following elements: I) "Technical Result" is net of acquisition and administration costs ii) "Investment Result" includes interests and dividends, interest expenses on operating debt and investment expenses iii) “Other" includes other net operating items not considered in Technical Result and in Investment Result “Operating ratio on Investments” is calculated as Operating result on the average of Investments at book value Total Comprehensive Change in shareholders’ equity during the period related to income and expenses recognized in profit or loss Income or directly in shareholders’ equity resulting from transactions and events other than transactions with equity Owners. Total Operating Result Operating result of life, P&C and financial segments, after holding expenses and consolidation adjustments. Operating result is a non-GAAP indicator and may differ from similar measure presented by other companies. Management uses this non-GAAP measure as key indicator in assessing Generali’s performance and believes that the presentation of these KPI provide useful and relevant informations to shareholders and users on Generali’s performance. Please refer to the ‘Methodological note on alternative performance measures’ included in the Management Report for details on operating result methodology.”Assicurazioni Generali Group – FY 2011 results
  • 105. IV. BACK UPDefinitions: Life EV (1/2) 105 Adjusted Net Asset corresponds to the consolidated market value of the assets backing the shareholders’ funds, net of taxes and Value (ANAV) policyholder interests on any unrealised capital gains and losses, after the elimination of goodwill and DAC, net of other adjustments required to maintain consistency with the valuation of the in-force business, and before the payment of dividends from profits of the year. Annual Premium is defined as new business annualised regular premiums plus 10% of single premiums. Equivalent (APE) Embedded Value correspond to the difference between the closing and the opening EV, excluding adjustments to opening EV Earnings and capital movements. Internal Rate of Return is defined as the rate that makes equal to zero the present value of new business distributable profits (IRR) (therefore allowing for new business first year strain and required capital absorption) calculated using “real- world” best estimate assumptions. Life Embedded Value is an actuarially determined estimate of the value of a company, excluding any value attributable to future new (EV) business. With reference to the covered business, and to the relevant consolidation perimeter (i.e. the operating life, health and pension companies of the group), the EV is equal to the sum of the Adjusted Net Asset Value and the Value In-Force.Assicurazioni Generali Group – FY 2011 results
  • 106. IV. BACK UPDefinitions: Life EV (2/2) 106 New Business Value is the present value, at the point of sale, of the projected stream of after tax industrial profits expected to be (NBV) generated by the covered new business written in the year, taking into account the actual acquisition costs incurred in the year of sale, after allowance for: the cost of financial guarantees and options granted to policyholders the frictional costs of setting up and holding the required capital the cost of non hedgeable risks NBV is calculated according to year-end economic and operating assumptions Normalised Embedded correspond to Embedded Value Earnings, net of economic variances and extraordinary expenses. Value Earnings Payback Period is the period of time (in years, from issue date) required to recover the cost of the initial investment in new business (i.e. new business first year strain and required capital absorption) calculated by means of a deterministic projection based on “real-world” best estimate assumptions Present Value of New is defined as the present value of the future new business premiums, calculated using year-end assumptions Business Premiums for lapses and other exits and discounted to point of sale using the reference rates (PVNBP) Value In-Force (VIF) is the present value of the projected stream of after tax industrial profits that are expected to be generated by the covered business in force at the valuation date, after allowance for: the cost of financial guarantees and options granted to policyholders the frictional costs of holding the required capital the cost of non hedgeable risksAssicurazioni Generali Group – FY 2011 results
  • 107. IV. BACK UPDefinitions: Group EV (1/2) 107 Available Capital (AC) It is internally defined as the sum of: the excess of market value of assets over market value of liabilities subordinated liabilities Economic Balance I) General definition: Balance sheet statement based on one of those accounting approaches using market- Sheet (EBS) consistent values for all current assets and current obligations relating to in-force business, including off- balance sheet items II) Within the Generali Group: common Group framework (methodology, models and tools) to assess and report market (or fair) value of all assets and liabilities, of available capital and risk capital, both at entity and Group level. Embedded Value (EV) An estimate of the value to shareholders of a book of insurance business at a given date, consisting of the following components: Free surplus allocated to the covered business Required capital, less the cost of holding required capital Value of future shareholder cash flows from in-force covered business The embedded value concept is applicable to general insurance, although it is more commonly encountered in the life and health context. The value of renewals of existing contracts is included, but the value of future new contracts is excluded. Normalised RoEV Annualised and normalised earnings on opening Embedded Value Risk Capital or Risk Within the EBS framework of the Generali Group, it is the capital necessary to absorb the maximum loss of adjusted capital (RAC) available capital, identified according to a 1-year value-at-risk approach, at a specified confidence level consistent with the risk appetite (defined at 99,5% for Solvency II purposes and at higher level for Group internal and rating purposes). It corresponds to the SCR calculated with the internal model. RoEV Embedded Value earnings on opening Embedded ValueAssicurazioni Generali Group – FY 2011 results
  • 108. What’s next 108 April 28, 2012 - General Shareholders’ Meeting May 11, 2012 - 1Q 2012 Results August 2, 2012 - 1H 2012 Results November 9, 2012 - 9M 2012 ResultsAssicurazioni Generali Group – FY 2011 results
  • 109. Investor Relations Team 109 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 – FY 2011 results
  • 110. Disclaimer 110 Certain of the statements contained herein are statements of future expectations and other forward-looking statements. These expectations are based on managements current views and assumptions and involve known and unknown risks and uncertainties. The user of such information should recognise that actual results, performance or events may differ materially from such expectations because they relate to future events and circumstances which are beyond our control including, among other things, general economic and sector conditions. Neither Assicurazioni Generali S.p.A. nor any of its affiliates, directors, officers employees or agents owe any duty of care towards any user of the information provided herein nor any obligation to update any forward-looking information contained in this document. The manager in charge of preparing the company’s financial reports, Raffaele Agrusti, declares, pursuant to paragraph 2 of article 154-bis of the Consolidated Law on Financial Intermediation, that the accounting information contained in this presentation corresponds to document results, books and accounts records.Assicurazioni Generali Group – FY 2011 results
  • 111. Generali Group2011 Results Milan, March xxx, 2010 March 21, 2012 March 2006