Generali Group 2010 Results

Generali Group
2010 Results

Milan, March xxx, 2010
March 16, 2011
March 2006

Agenda 2

I. FY 2010 results overview Page 3
Giovanni Perissinotto - Group CEO

II. Insurance operations Page 14
Sergio Balbinot - Managing Director

III. Group financials Page 19
Raffaele Agrusti - CFO

IV. Backup Page 45

Assicurazioni Generali Group – FY 2010 results

Agenda 3

I. FY 2010 results overview
Giovanni Perissinotto - Group CEO


I. FY 2010 RESULTS OVERVIEW

2010: strong growth of results and dividend 4

Total operating result at Euro 4,077 m (+11.7%)

Net result at Euro 1,702 m (+ 30.0%)

Life net inflows at Euro 16.1 bn

Life new business margin at ~20% and IRR at ~14%

Shareholders’ Equity at Euro 17.5 bn (+5.0%)

Cash dividend per share at Euro 0.45 (+28.6%)



A constant revenue growth despite the crisis…. 5

Gross written premiums (Euro bn)
+3.4% CAGR

73.2
68.8 70.5
66.2

2007 2008 2009 FY10

APE (Euro m)
+5.4% CAGR

5,188 5,333
4,557 4,798

2007 2008 2009 FY10



…and a robust result recovery thanks to our consistent strategy… 6

Total operating result (Euro bn)
+11.7%

4.8
3.9 4.1
3.7

2007 2008 2009 FY10

Net result (Euro bn)

+97.7%
2.9

1.7
1.3
0.9

2007 2008 2009 FY10
% increase from the lowest result



…based on business diversification and strong proprietary network… 7

Business diversification
Operating result Life premiums P&C premiums
Savings & Accident &
Life P&C Unit linked Motor
protection health
67% 25% 19% 40%
62% 15%

Health Personal
8% 22%

Financial Group Commercial
8% 11% 23%

Distribution networks: proprietary networks represent our goodwill for the future
Life APE P&C
Proprietary Independent
Other
FAS FAS
6%
17% 1%

Direct Banks Direct Banks
9% 13% 4% 2%

Agents Broker Agents Broker
45% 15% 63% 25%

71% proprietary networks 67% proprietary networks



…deep roots in continental Western Europe… 8

1° or 2° rank in three core countries (Italy,
France(1), Germany) generating about 2/3 of
Group operating result and new business value

Strong economies of scale at
Country level
+
Centre driven cross border initiatives
(IT Integration, Motor Tariffs, Claims
Management,…)
+
Integrated asset management and real
estate platform

Core countries (1° or 2° rank in the market)(1) =
Other countries of operations Euro 620 m savings on general expenses
since 2005 and
+3.8% CAGR of operating result in three
core countries since 2005 despite the crisis
(1) Generali ranks 2° in France excluding bancassurance operators. Including them, the ranking would be 4°



…good positioning in emerging countries and direct channels… 9

Emerging Markets(1)
Total Premiums
Euro bn, CAGR % on total Group
+12.2% 6.6
3.7 9.1%
5.9%

2005 2010 2005 2010

Total Operating Result
Euro m, CAGR % on total Group
532
+33.4% 11.8%
126 3.6%

2005 2010 2005 2010
(1) Include CEE, Asia (excluding Israel and Japan), and Latin America

Direct Channels
Total Premiums
1° in Italian P&C Euro bn, CAGR % on total Group

+20.5% 4.9%
1° in Italian Life 3.5
1.4 2.2%
1° in Germany
2005 2010 2005 2010

1° in French life
Total Operating Result
1° in Hungarian P&C Euro m, CAGR % on total Group
95
+12.4% 2.3%
1° in Slovakian P&C 53 1.6%

2005 2010 2005 2010



…whilst maintaining a solid capital position… 10

Shareholders’ Equity (Euro m) Solvency Margin (%)

+5.0% 142%
FY09
17,490 187%
16,652

140%
FY10
160%

(1)
Solvency I
FY09 FY10
Economic Solvency calibrated on AA
rating

(1) Including off balance sheet unrealized gains on real estate, 8%pts of which
subject to authorities’ authorization



…and an appropriate balance between dividend and profitable growth 11

2010 cash flow(1) before investment in new business (Euro 2.7 bn)

Dividend Investment in
26% life new business 63%

Additional Capital buffer
5%

IRR
~ 14%

Investment in P&C and New business margin
~ 20%
Financial Segment
6%

(1) Cash flow from Life inforce, P&C and Financial segments, before investment in new business (P&L impact for life and increase of required capital for all segments), less
holding expenses (including interest expenses). For further details refer to slides 33, 40 and 57



2010 proposed cash dividend 12

DPS at Euro 0.45, up 28.6%
Confirmed ~40% payout ratio
No need of capital raising during crisis periods

Cash dividend per share (Euro)

0.90
0.75
+28.6%
0.54
0.43 0.45
0.28 0.33 0.35
(1)
0.15

2002 2003 2004 2005 2006 2007 2008 2009 2010

Payout ratio(2)

41.5% 41.7% 39.7% 41.8% 41.6% 41.1%
35.9%

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 0.78



Outlook on Total Operating Result 13

Outlook 2010: Top of range on Total Operating Result achieved

(Euro bn) Min. Max. Actual

Life 2.2 2.6 3.0 Overperformance (Investment Result, volumes)

P&C 1.4 1.8 1.1 Not achieved mainly due to Nat Cat

Total 3.6 4.2 4.1 Top of range achieved

Outlook 2011: Good growth expected in the new “normal”

(Euro bn) Min. Max.

Life 2.7 3.2 Prudent harvesting implicit in the estimation

P&C 1.3 1.7 Technical improvement, normal incidence Nat Cat

Total 4.0 4.7 Total Operating Result average growth of +6.7% vs. 2010 (1)

(1)
Central point Outlook 2011 vs.
Actual 2010 (Euro 4,077 m) [Natural catastrophes & financial market conditions can influence the expected results]


Agenda 14

II. Insurance operations
Sergio Balbinot - Managing Director


II. INSURANCE OPERATIONS

Addressing Insurance Business Priorities 15

Priorities
Life Non Life
Distribution & Commercial Increasing life profitability Pricing discipline
Enhancing value creation in Managing economic balance sheet Enhancing claims management
distribution and customer base risks efficiency and effectiveness
Actions
Value extraction from customer Focus on: Improved motor tariff segmentation:
database through: Customer retention at maturity Wider spread of coefficients
Cross & up-selling Contract duration and surrender Tariff increases (IT, FR mainly)
Retention initiatives penalties Portfolio pruning (IT, FR, ES,
Customer’s referral activity Shift of annual guarantees to at CEE)
Customer as an Asset project, maturity Claims handling based on customer
8 countries, 24m customers Strengthening new product monitoring oriented processes
Multi-channel approach through a central cockpit (Life Product Customer care
New direct initiatives steering Analysis) Body shop mgmt, fraud detection
Modernizing traditional networks and bodily injury mgmt

Main Achievements
Direct sales: total GWP Euro 3.5 bn, Net Technical Reserves: +9.4% Stable Net CoR net of CAT events
+20%; weight on Life APE: 9.3%, Improved surrender rate: 4.6% Non-motor share close to 60%
+1.7 %pts “At maturity guarantee”: 30% of total Cumulative Group program benefits
After HU, new direct initiative in SK; guarantees offered on motor pricing and claims
3 further initiatives in pipeline management: Euro 489 m



Main industrial results 16

Life P&C
48.9 51.1 21.6 22.1
GWP(1) GWP
(2) (2)
(Euro bn) +3.6% (Euro bn) +1.1%

FY09 FY10 FY09 FY10

Net Inflows Loss ratio 71.1 71.3
(Euro bn) 16.1 16.1 (2) (%)
-0.9% +0.2%pts

FY09 FY10 FY09 FY10

NBV 1,128 Combined ratio 98.3 98.8
1,050 (2)
(Euro m) -8.8% (%) +0.5%pts

FY09 FY10 FY09 FY10

IRR 13.1 13.9 Reserving ratio 149 149
(%) +0.7%pts (%) +0%pts

FY09 FY10 FY09 FY10
(1) Including investment contracts
(2) On like for like basis



Strategic overview: focus on core European markets 17

Italy Life GWP (Euro bn) NBV (Euro m) Life
+6.8%(1) -33.0%(1) Proprietary channels Life New Production: +11%
12.9 13.8 Higher share of “at maturity guarantees” (54%) and
486
326 strong reduction in yearly guarantee (1.35%)
Life Net Inflows: +51.4% to Euro 1,790m
FY09 FY10 FY09 FY10 Non Life
Motor back to technical balance: actions on Motor
Non Life GWP (Euro bn) CoR (%)
tariff (avg TPL new premium +9.5%) and flexibility
+1.2%(1) -2.8%pts
Further acceleration of claims mgmt specialization
7.4 7.4 102.4 99.6 Operational efficiency
Further General Expenses reduction: Euro -50m
(IT, traditional network, Alleanza-Toro integration)
FY09 FY10 FY09 FY10

Life GWP (Euro bn) NBV (Euro m) Life
Germany (1)
+12.5% -0.7%(1) Twice the market GWP increase:
12.2 13.8 174 173 Products oriented to retention and up-selling
Increase of corporate pension plans (baV)
Non Life
FY09 FY10 FY09 FY10 Outperformance vs market CoR: 3.5%pts better
Non Life GWP (Euro bn) CoR (%) Non-motor share increase (+0.7%pts up to 63.9%)
Operational efficiency
-1.2%(1) -0.4%pts
Merger cost saving targets achieved ahead of
95.6 95.2 schedule (Euro 99 m since announcement)
3.0 3.0

FY09 FY10 FY09 FY10


Strategic overview: focus on core European markets 18

France Life GWP (Euro bn) NBV (Euro m) Life
-7.9% (1) +15.5%(1) Focus on UL (+26.7% - 4x the market; UL share
12.4 18% vs market 13%(2) and Risk (+6.7%)
11.4 127 146
NBM among the highest in the market: 12.5%
Leverage on internet leadership (> Euro 1 bn)
FY09 FY10 FY09 FY10 Non Life
Strong tariff increases and discount containment:
Non Life GWP (Euro bn) CoR (%)
Motor +5%; Household +9%; Health +9%
+3.6%(1) +2.3%pts Nat Cat impact: 2.3%pts; underlying CoR +1.1%pts
3.8 3.9 99.0 101.3 Operational efficiency
Claims Factory new organization and experts
network strengthening
FY09 FY10 FY09 FY10 (2) Share on Individual Savings

Life GWP (Euro bn) NBV (Euro m) Life
CEE
+1.2%(1) -13.9%(1)
APE: Poland +25.3%, HU +20.1%, CZ -6.6%
1.8 62 56 NBM still at 32.3%
1.7

Non Life
FY09 FY10 FY09 FY10 Net CoR: 5.6%pts of Nat Cat impact
Non Life GWP (Euro bn) CoR (%) Motor: new segmented tariff in PL, innovative low-
+5.3%pts
cost services and direct settlement in CZ
-1.7%(1)
93.2 Nat Cat pricing and coverage redesign
2.2 2.2 87.9
Operational efficiency
3% general expenses reduction in Ceska P. and
FY09 FY10 FY09 FY10 claims fraud detection strengthening in CEE


Agenda 19

III. Group Financials
Raffaele Agrusti - CFO
Profit & loss review

Investments and shareholders’ equity

Life, P&C and financial profitability

Cash flow, Group EV and economic solvency


III. GROUP FINANCIALS

Revenue development by segment 20

(Euro m)
FY10 ∆ historical ∆ like for like 4Q10 ∆ like for like

Gross written
premiums 73,188 +3.8% +2.8% 19,359 -4.5%

Life(1) 51,098 +4.5% +3.6% 13,826 -6.7%

P&C 22,090 +2.1% +1.1% 5,532 +1.5%

Life annual
premium
equivalent(2) 5,333 +2.8% +1.3% 1,491 -9.3%

Life net inflows(2) 16,133 +0.3% -0.9% 3,511 -31.2%
(1) Including investment contracts for Euro 4,752.4 m in FY10
(2) For the definitions refer to the related section within the backup



Operating result by segment 21

FY10 total operating result (Euro m) 4Q10 total operating result (Euro m)

Life 3,026 731
operating result 2,451 +23.5% 611 +19.5%

P&C 1,128 246
-11.4% +18.1%
operating result 1,274 208

Financial services 354 77
operating result -18.2% -15.2%
432 90

Operating holding -288 -85
-7.3% -11.7%
expenses -269 -76

Consolidation -143 -24
+40.2% +39.8%
adjustments -40
-239

Total 4,077 +11.7% 944 +19.0%
operating result 3,650 794

FY10 4Q10
FY09 4Q09



Focus on operating result 22

Operating result by country(1) Operating result breakdown(1) (Euro m)
(Euro m)

FY09 FY10 ∆ 1,537
Italy 1,184 1,537 +29.8% 144
205
France 706 754 +6.8%

Germany 550 713 +29.6%
754 713
CEE 639 419 -34.5% 692
9
149 51 76
RoE 825 692 -16.1% 1,188 419 392
308 199
23 51
RoW 253 392 +54.8% 48
596 218
354 417
Operating result(1) 4,157 4,508 +8.4% 293
177
Op. holding expenses (269) (288) -7.3% Italy France Germany CEE RoE RoW

Consolidation Adj. (239) (143) +40.2%
Life P&C Financial
Total operating 3,650 4,077 +11.7%
result
(1) Operating result = operating result of life, P&C and financial segments, before holding expenses and consolidation adjustments



From operating result to net result 23

(Euro m) FY09 FY10
Total operating result 3,650 4,077 +11.7%
Non operating investment income (501) 5
Income and exp. from fin. assets at FV thr. P&L (199) 37

Net realised gains and net impairments on other (302) (32)
financial instruments
(1)
Non-operating holding expenses (737) (726)
Net other non operating expenses (245) (479)
Total non operating result (1,482) (1,200) +19.0%
Consolidated result of the period before taxes 2,168 2,877 +32.7%
and minority interests

Income taxes (498) (909)
Result from discontinued operations (Intesa Vita) 96 51
Minority interests (457) (316)
Net result of the period 1,309 1,702 +30.0%
(1) Including interest expenses on financial debt



Investment portfolio 24

Own investments(1) at 31.12.10 (% on total)

+4.7%
Preference for government
Euro 307.3 bn Euro 321.7 bn bonds, representing 55.9% of
7.6% 7.3% total bond portfolio
4.9%
4.8% Other
9.1% 8.5%
9.5% 9.0% Real estate
Reduced exposure to
Equity peripheral Euro government
31.3% 31.0%
Other fixed bond
income
Corporate
bonds
37.8% 39.3%
Government High quality corporate bond
bonds
portfolio. 80.7% rated ≥ A

FY09 FY10
Strategic decrease of equity
exposure in progress



IFRS Shareholders’ equity roll forward 25

(Euro m)

+5.0%

1,702 666 17,490
16,652 (2)
(544) (71)
(914)

Shareholders’ ∆ in AFS FY 2010 ∆ Currency ∆ Cash Flow Dividend Other Shareholders’
Equity FY09 Reserve Net Result Translation Hedge Equity FY10
Reserve Reserve

Change in AFS reserve (Euro m)

730

(198) 72

(787) (184)

AFS Reserve Impact Equity Impact Bond Other AFS Reserve
FY09 Investments Investments FY10



Life profitability – operating result 26

Strong increase of life operating result driven by investment driver

Life Operating Result by driver(1)

(Euro m) FY09 FY10 FY09 2,451

Technical Margin 5,984 5,996 +0.2% Tech.M 12

Investment Result 1,627 2,382 +46.4% Inv.R 755

Expenses (5,159) (5,352) -3.7% Exp. (193)

Operating Result 2,451 3,026 +23.5% FY10 3,026

0.97% Average
0.89% 0.93% 0.89% 0.87%
Life operating
0.68%
ratio on 0.89% 0.97%
Investments
FY06 FY07 FY08 FY09 FY10




Confirmed superior life net inflows capacity 27

Life gross written premiums (Euro m) Life net inflows by country(2) (Euro m)
Like for
+3.6%(1) Country FY09 FY10 like ∆

Italy 1,182 1,790 +51.4%
48,894 51,098

France 5,841 4,444 -23.9%

Germany 4,077 4,923 +20.8%

CEE 700 534 -26.1%

FY09 FY10 RoE 3,188 2,823 -12.9%

RoW 1,095 1,619 +35.6%

TOTAL 16,083 16,133 -0.9%



Life Technical Provisions(1) 28

(Euro bn) (Euro bn)
+7.2% CAGR +9.4%

313.4
286.4 286.4 16.1 13.2 3.6 313.4
243.1 257.4 261.4 (6.0)
221.0

Net technical Net Loadings, risk Policyh. Exchange Net technical
FY05 FY06 FY07 FY08 FY09 FY10 provisions inflows and surrender share of rates provisions
FY09 result invest. and other FY10
7.9 313.4 (to P&L) result
19.1
286.4 49.3 (19.5)
Surrenders

16.1
(13.7)
FY09 Traditional Unit FY10 Cash in Cash out Net inflows
Linked
Ratios on net technical provisions (average of the year) of:
FY 2010 262.9 50.5 Net inflows Surrenders
FY 2009 243.8 42.6 FY 2010 5.4% 4.6%
∆% +7.8% +18.5% FY 2009 5.9% 5.0%

(1) Net technical provisions including investment contracts and excluding Intesa Vita


Life investment strategy and yields(1) 29

Reduction of bond duration from 6.6 at 9M10 to 6.3 at FY10
Increased exposure to government bonds
Improvement of corporate bond portfolio diversification and preference for high quality issuers
Current average reinvestment rate of fixed income instruments: 3.9%
Decreased equity exposure with active management

Life segment own investments(1) (% on total)
Euro 255.0 bn Euro 268.9 bn Current Fixed Equity Real
5 .2 %
return(1) income Estate(2)
5 .0 %
3 .4 % 3 .4 %
9 .0 % 8 .5 % Other
8 .4 % 8 .1%
Real estate
FY09 FY10 FY09 FY10 FY09 FY10
3 2 .7 % 3 2 .2 % Equity

Other fixed inco me Euro m 9,108 9,621 602 692 592 650

Co rpo rate bo nds
4 1.5 % 4 2 .6 %
Go vernment
bo nds
% 4.5 4.4 3.1 3.0 6.9 7.4

FY09 FY10
(2) Real estate current returns are gross of related expenses



Focus on guarantees 30

Total Reserves development by type of guarantee

3.20
Yearly basis
3.00 At maturity

2010 Average Guarantee: 2.30%
2.80
Yearly basis: 2.30%
2.60

2.40
At maturity: 2.25%

2.20
2003 2004 2005 2006 2007 2008 2009 2010

Total APE by type of guarantee
YE 2009
NIL At maturity 2009 Average Guarantee: 1.56%
30% 19%
Yearly basis : 1.4%
Matched Yearly basis
2% 49% At maturity: 2.0%

YE 2010
NIL At maturity 2010 Average Guarantee: 1.58%
29% 21%
Yearly basis : 1.4%
Matched Yearly basis
3% 47% At maturity: 2.0%



Life new business value and profitability 31

Best year ever in terms of APE production (Euro 5,333 m)
Solid new business profitability (19.7% APE margin) despite the negative impact of the extraordinary
widening of government spreads, which causes a significant reduction of APE margins (-4.6%pts at
Group level, -11.3%pts in Italy)
Overall resiliency of value added by new business (Euro 1,050 m)

(Euro m) APE NBV Margins on APE

Like for Like for
Historical like Historical like
FY09 FY10 FY09 FY10 FY09 FY10 ∆ %pts

Italy 1,704 1,766 +3.6% +3.6% 486 326 -33.0% -33.0% 28.5% 18.4% -10.1%

Germany 984 976 -0.9% -0.9% 174 173 -0.7% -0.7% 17.7% 17.7% +0.0%

France 1,225 1,172 -4.4% -4.4% 127 146 +15.5% +15.5% 10.3% 12.5% +2.2%

CEE 158 172 +8.7% +5.3% 62 56 -10.1% -13.9% 39.1% 32.3% -6.8%

RoE 740 792 +7.1% +4.0% 173 197 +14.2% +8.6% 23.3% 24.9% +1.6%

RoW 377 455 +20.8% +7.3% 106 153 +43.5% +29.3% 28.2% 33.5% +5.3%

Total 5,188 5,333 +2.8% +1.3% 1,128 1,050 -6.9% -8.8% 21.7% 19.7% -2.0%



Investment in life new business 32

(Euro bn)

2009 2010
1st year P&L impact -0.9 1st year P&L impact -1.0
In % of NBP 3.7% In % of NBP 3.8%
Capital absorption -0.6 Capital absorption -0.7
1 st year strain -1.5 1 st year strain -1.7

New Business Value 1.13 New Business Value 1.05
NBM 21.7% NBM 19.7%

Internal Rate of Return 13.1% Internal Rate of Return 13.9%

Payback period 7.1 years Payback period 6.5 years



Expected Life cash flow generation 33

Life & Savings expected free cash flows (Euro m)

Capital
459 (720) 209 Profit
(611)
(990)
2,130 2,008 (919)
879 686

Existing Run Off New Business Free Cashflow Existing Run Off New Business Free Cashflow
2010 2010 2010 2009 2009 2009

2010 Inforce 2010 New Business
Expected undiscounted cash flows Expected undiscounted cash flows
14,000 2000

12,000 1500
1000
10,000
500
8,000
0
6,000
-500
4,000
-1000
2,000 -1500
0 -2000
Years Years Years Years Years Years Years Years 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+



P&C profitability - operating result 34

P&C operating result affected by increasing catastrophes

P&C Operating Result by driver(1)
(Euro m) FY09 FY10 FY09 1,274
Technical Result 274 184 -32.7% Tech.R (90)
Investment Result 1,226 1,196 -2.4% Inv.R (30)
Other (226) (252) -11.7% Other (26)
Operating Result 1,274 1,128 -11.4% FY10 1,128

P&C operating ratio on
3.58% 3.07%
Investments



P&C Gross Written Premiums 35

Robust signs of premium recovery in Motor in Italy and France
Retail Non Motor accelerating in most of territories, in line with strategic guidelines
Commercial resilient in spite of the economic scenario

Historical Like for like
(Euro m) FY09 FY10

Italy 7,353 7,440 +1.2% +1.2%

France 3,754 3,892 +3.7% +3.6%

Germany 3,034 2,998 -1.2% -1.2%

CEE 2,204 2,246 +1.9% -1.7%

RoE 4,160 4,203 +1.0% -0.2%

RoW 1,130 1,312 +16.1% +8.8%

Total 21,636 22,090 +2.1% +1.1%



P&C profitability – Net combined ratio (1/2) 36

Combined ratio (%) Combined ratio by country (%)

+0.5%pts.
0.2 FY09 FY10 ∆%pts.
98.3 0.3 98.8

Italy 102.4 99.6 -2.8%pts.

27.2 27.5
France 99.0 101.3 +2.3%pts.

Germany 95.6 95.2 -0.4%pts.

71.3 CEE 87.9 93.2 +5.3%pts.
71.1

RoE 96.8 99.3 +2.5%pts.

FY09 Expense Loss FY10
ratio ratio RoW 102.7 101.6 -1.1%pts.

Loss ratio Expense ratio
Total 98.3 98.8 +0.5%pts



P&C profitability – Net combined ratio (2/2) 37

Loss ratio (%) Reserving ratio (%)
0%pts
71.1 -0.1 0.6 -0.3 71.3
149% 149%

Current Nat Prior
FY09 year(1) CAT years FY10

FY 2010 73.3 1.9 -3.9 71.3 FY09 FY10

FY 2009 73.4 1.3 -3.6 71.1
(1) Excluding natural catastrophes

Expense ratio (%)

27.2 27.5 Impact from nat cat above normal levels,

-0,1 0.4 due to increased frequency of natural
6.1 6.0
events

21.5 Stable current year loss ratio, thanks to
∆%pts Acq. costs improved performance of Motor
21.1
Adm. costs
Positive prior years development whilst
confirming prudent reserving policy
FY09 ∆ Admin ∆ Acq. FY10



P&C investment strategy and yields(1) 38

Reduction of bond duration (from 4.7 at 9M10 to 4.3 at FY10) allowed to realise capital gains,
benefiting from lengthening duration strategy
Preference for government bonds within fixed income investments
Maintained exposure to corporate bonds allowed to sustain current return
Current average reinvestment rate of fixed income instruments: 3.6%
Reduced equity exposure due to the start of a progressive de-risking process

P&C segment own investments(1) (% on total)
Current Fixed Equity Real
Euro 36.3 bn Euro 36.4 bn
return(1) income Estate(2)
11.4 %
11.2 %
Other
16 .5 % 17 .5 %
Real estate FY09 FY10 FY09 FY10 FY09 FY10
12 .7 % 11.0 %
7 .3 % Equity
9 .3 %

Other fixed inco me Euro m 861 847 167 118 527 534
2 6 .9 % 2 6 .9 %
Co rpo rate bo nds

2 3 .5 % 2 5 .9 % Go vernment % 4.0 3.8 3.5 2.6 9.0 8.7
bo nds

FY09 FY10

(2) Real estate current returns are gross of related expenses



Financial segment 39

Operating result (Euro m) Net fees and commissions (Euro m)

-18.2% +12.8%
894
792

432 354

FY09 FY10 FY09 FY10

Third party AUM(1) (Euro bn) Cost/income ratio (%)

+17.3% +6.8%pts

93.0
79.3
63.7% 70.5%

FY09 FY10 FY09 FY10

(1) Including only third party AUM related to financial segment companies



Total cash flow generation 2010 40

(Euro bn)
Life Group total

Profit(1) 1.1
Var. Req Free Cash Flow 1.6
Capital (0.3)

Free Cash Holding exp.(3)
0.9 (0.7)
Flow

Free Cash Flow
P&C and Financial before dividend 0.9

Profit(2)
0.9
Dividend (0.7)
Var. Req
(0.2)
Capital
Net Free
Cash Flow 0.2
Free Cash 0.7
Flow

(1) Expected profit based on EV calculations (see slide 33)
(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 minorities



Group Embedded Value roll-forward 41

Including:
(Euro m) -3.1 bn due to spread widening and drop of stock
market in Italy
-0.7 bn due to the decrease in interest rates
2,900
27,337 26,968
(2,724) (545)

EV FY09 EV earnings Investment and Tax Cash Dividend EV FY10
Return on Embedded Value Variances Group Embedded Value
Group EV FY10

10.6% Normalised RoEV (1) 0.6% RoEV (1) 17.5€ Group EV per share




Economic Solvency and Capital Allocation 42

Breakdown of Group risk capital
Economic Solvency Coverage (ESC) after diversification
(Euro bn) FY09 FY10 Geographic breakdown
Sub.
Debt
Other
34.3 33.6
ESC = 187%(1) ESC = 160%(2)(3) 25%
Sub.
Sub. Italy 39%
Debt Group Risk
Debt
Capital
20.6(3) €20.6 bn
18.1 France
Group 23%
Group Group Germany
EV Group EV RAC 13%
RAC

Available Group Available Group
Capital Risk Capital Capital Risk Capital Property & Casualty: Resulting at
33.9% of Net Earned Premiums
(1) ESC FY09 = AC FY09 (net of dividend 2009 equal to 0.5bn) divided by Risk Capital FY09
(2) ESC FY10 = AC FY10 (net of proposed dividend 2010 equal to 0.7bn) divided by Risk Capital FY10 Life & Health: Resulting at 4.4%
(3) Preliminary figures
of Net Technical Provisions
Financial: Resulting at 1.3% of
Economic Solvency Ratio based on Group Internal Model calibrated on AuM
1year VAR at 99.95% confidence level
Economic Solvency evolution mainly affected by spread widening


Economic Solvency 43

(Euro bn)

Solvency II Economic Solvency Ratio
33.6 ratio 209%(1) 160%

4.9 20.6
15.7

Available Group Risk Additional Capital Group Risk
Capital Capital(2) to AA target(3) Capital(3)
(@ 99.50) (@ 99.95)
(1) Solvency II ratio based on Group Internal Model calibrated on 1year VAR at 99.5% confidence level
(2) Solvency II SCR based on Group Internal Model calibrated on 1year VAR at 99.5% confidence level
(3) Based on Group Internal Model calibrated on 1year VAR at 99.95% confidence level



Global Added Value (GAV) 44

GAV (Euro m) 2010 GAV breakdown (%)

Shareholders Group
+7.9% 7.4% 7.4%

Community
13,633 0.3%
12,635
12,011
Credit capital
providers(1)
9.1%

State
6.4%

2008 2009 2010 Agents & FAs Employees
39.0% 30.4%
(1) Total interest expense (including operating debt)


Agenda 45

IV. Backup
P&L
Balance sheet
Life
Capital
Sustainability
Definitions


Agenda 46

IV. Backup
P&L
Balance sheet
Life
Capital
Sustainability
Definitions


IV. BACK UP

FY10 Total gross written premiums 47

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 21,234 +4.8 29.0 13,794 +6.8 18.8 7,440 +1.2 10.2

France 15,285 -5.3 20.9 11,394 -7.9 15.6 3,892 +3.6 5.3

Germany 16,754 +9.8 22.9 13,756 +12.5 18.8 2,998 -1.2 4.1

CEE 4,012 -0.4 5.5 1,766 +1.2 2.4 2,246 -1.7 3.1

RoE 10,782 -2.3 14.9 6,669 -3.5 9.1 4,203 -0.2 5.7

Of which:

Spain 2,292 -10.8 3.1 920 -18.4 1.3 1,372 -4.8 1.9

Austria 2,515 +2.2 3.4 1,165 +4.5 1.6 1,350 +0.3 1.8

Switzerland 1,558 +1.3 2.1 978 -0.2 1.3 580 +3.8 0.8

RoW 5,031 +16.4 6.9 3,719 +19.4 5.1 1,312 +8.8 1.8

Total 73,188 +2.8 100.0 51,098 +3.6 69.8 22,090 +1.1 30.2
(1) Including investment contracts
(2) On like for like basis with constant exchange rates


IV. BACK UP

Life premiums by country & business line 48

Life FY10
Savings and Unit/index
(Euro m) protection linked Health Group Total
Italy 87.0% 2.0% 0.0% 11.1% 13,469

France 71.1% 14.7% 7.7% 6.5% 11,178

Germany 50.5% 23.4% 17.2% 8.9% 13,755

CEE 61.7% 27.4% 9.9% 1.1% 1,766

RoE 28.2% 56.9% 3.9% 11.0% 6,649
Of which:

Spain 61.6% 1.8% 0.0% 36.6% 920

Austria 55.8% 25.1% 19.2% 0.0% 1,156

Switzerland 20.9% 78.0% 0.9% 0.2% 978

RoW 36.9% 0.8% 10.2% 52.1% 2,997

Total life gross 61.6% 18.9% 8.0% 11.5% 49,813
direct premiums


IV. BACK UP

P&C premiums by country & business line 49

P&C FY10
Accident/
(1)
(Euro m) Motor Health Personal Commercial Total
Italy 43.1% 18.7% 11.4% 26.8% 7,328

France 29.8% 13.1% 37.0% 20.1% 3,659

Germany 36.1% 15.3% 39.3% 9.3% 2,994

CEE 51.0% 11.4% 14.8% 22.9% 2,212

RoE 36.6% 15.1% 22.3% 26.0% 4,058
Of which:

Spain 27.5% 12.4% 26.8% 33.3% 1,341

Austria 39.9% 11.0% 20.7% 28.4% 1,323

Switzerland 47.8% 23.4% 28.3% 0.5% 578

RoW 61.7% 5.7% 3.9% 28.7% 1,266

Total P&C gross 40.5% 15.1% 21.6% 22.8% 21,517
direct premiums
(1) Including fleets


IV. BACK UP

Ratios 50

Life – Expense ratio (%) P&C – Combined ratio (%)

98.3 98.8
Expense 27.2 27.5
ratio

Loss
10.5 10.4 71.1 71.3
ratio

FY09 FY10 FY09 FY10

Total – Expense ratio (%)

15.4 15.3

FY09 FY10


IV. BACK UP

FY10 combined ratio reconciliation 51

(Euro m)
A Net earned premiums (net of consolidation adjustments) 20,274.0

B Consolidated net insurance benefits and claims 14,451.4

Consolidated acquisition costs 4,366.2

Consolidated administration costs 1,280.9
Non insurance related administration costs(1) 64.9
Insurance related consolidated administration costs 1,216.0

C Total acquisition and insurance related administration costs 5,582.2

B/A Loss ratio 71.3%
C/A Expense ratio 27.5%
(B+C)/A Combined ratio 98.8%

D Other technical items 56.0

A-B-C-D Technical result 184.3
(1) Administration expenses related to service companies, real estates and other companies not belonging to P&C segment


IV. BACK UP

Ratios by country 52

(%) ITA FRA GER CEE SPA AUT SWI Consolidated

P&C Loss ratio
FY10 77.5 73.3 65.1 60.2 71.2 68.3 69.0 71.3
FY09 79.9 70.8 65.6 58.1 69.5 68.9 64.8 71.1
P&C Expense ratio
FY10 22.1 28.1 30.1 33.0 26.8 26.9 26.9 27.5
FY09 22.5 28.2 30.0 29.8 25.1 27.1 29.5 27.2
P&C Combined ratio
FY10 99.6 101.3 95.2 93.2 98.1 95.2 95.9 98.8
FY09 102.4 99.0 95.6 87.9 94.6 95.9 94.3 98.3

Life expense ratio by country
FY10 8.7 8.2 12.4 17.3 6.7 13.4 19.6 10.4
FY09 9.2 6.7 14.3 18.7 5.2 13.7 17.4 10.5


IV. BACK UP

Reclassified P&L account 53

(Euro m) Total

FY09 FY10
Total Operating result 3,650 4,077
Net earned premiums 64,036 65,727
Net insurance benefits and claims (68,187) (67,720)
Acquisition and administration costs (11,181) (11,638)
Net fee and commission income and net income from financial service activities 782 868
Operating income from other financial instruments 10,889 12,685
Operating income from financial instruments at fair value through profit or loss 7,967 4,833
of which net income from fin. assets and liabilities where the risk is borne by the policyholders 5,151 2,902
Operating holding expenses (269) (288)
Net other operating expenses (388) (389)
Non-operating result (1,482) (1,200)
Non-operating income from other financial instruments (302) (32)
Non-operating income from financial instruments at fair value through profit or loss (199) 37
Non-operating holding expenses (737) (726)
Interest expenses on financial debt (707) (704)
Other non-operating holding expenses (30) (22)
Net other non-operating expenses (245) (479)
Earnings before taxes 2,168 2,877
Income taxes (498) (909)
Result from discontinued operations (Intesa Vita) 96 51
Consolidated result of the period 1,766 2,018
Result of the period attributable to minority interests (457) (316)
Result of the period 1,309 1,702

IV. BACK UP

Reclassified P&L account by segment – FY 2009 54

Unallocated holding Consolidation
(Euro m) Life Non life Financial(1) expenses adjustments Total

Total Operating result 2,451 1,274 432 (269) (239) 3,650

Net earned premiums 44,103 19,932 0 - - 64,036

Net insurance benefits and claims (54,001) (14,177) 0 - (9) (68,187)

of which var. of provisions related to unit linked business (6,457) - - - - (6,457)

Acquisition and administration costs (4,961) (5,436) (783) - (1) (11,181)

Net fee and commission income and net income from
financial service activities 100 0.0 792 - (110) 782

Operating income from other fin. Instruments 9,549 1,152 312 - (123) 10,889

Operating income from fin. Instruments at fair value through
profit or loss 7,745 74 148 - - 7,967
of which net income from fin.assets and liabilities where the risk is
borne by the policyholders 5,151 - - - - 5,151

Operating holding expenses - - - (269) - (269)

Net other operating expenses (83) (272) (37) - 4 (388)

Non-operating result (236) (433) (76) (737) - (1,482)

Non-operating income from other fin.instr. (188) (109) (5) - - (302)

Non-operating income from fin. instr.at fair value through
profit or loss 0 (199) - - - (199)

Non-operating holding expenses - - - (737) - (737)

Net other non-operating expenses (48) (125) (71) - - (245)

Earnings before taxes 2,215 841 356 (1,006) (239) 2,168
(1) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Report


IV. BACK UP

Reclassified P&L account by segment – FY 2010 55

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 0 - - 65,727

Net insurance benefits and claims (53,265) (14,451) 0 - (4) (67,720)
of which var. of provisions related to unit linked business (4,657) - - - - (4,657)

Acquisition and administration costs (5,137) (5,602) (900) - - (11,638)
Net fee and commission income and net income from
financial service activities 109 0 894 - (135) 868

Operating income from other fin. Instruments 11,260 1,152 280 - (7) 12,685
Operating income from fin. Instruments at fair value through
profit or loss 4,681 44 108 - - 4,833
of which net income from fin.assets and liabilities where the risk is
borne by the policyholders 2,902 - - - - 2,902

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 0 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


IV. BACK UP

Operating and net result by quarter 56

Total Operating result(1) (Euro m)
2009 2010 +11.7%
944 4,077
794 3,650 997
902 958
936
1,178
1,018

1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY
(1) Starting from FY10, FX gains & losses incurred in P&C segment have been included into Non operating investment income. Comparative information have been restated
accordingly. Refer to the ‘Methodological note on alternative performance measures’ included in the Management Report for details

Net result (Euro m)
2009 2010 +30.0%
389 1,702

414 1,309 440

390 346

401 527

104

1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY


Generali Group 2010 Results

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