Generali Group 2013 First Half Results

March 2006 August 1, 2013

Generali Group

2013 First-Half Results

2

Assicurazioni Generali Group – 1H 2013 results

Agenda

III. Final remarks

II. Group Financials

Page 3

Page 9

Page 31

IV. Backup Page 33

I. 1H 2013 results overview

3


Agenda

I. 1H 2013 results overview

1H 2013 results at a glance

Following the announcement of the sale of related stake, Mexico and US Life RE qualified as a non-current asset held for sale and

discontinued operations.

Like for like comparisons are adjusted for the disposal of Mexico and US Life Re.

The change of written premiums, net cash inflow, APE and NBV is on equivalent terms (on equivalent exchange rates and consolidation area).

The change of operating results is calculated excluding Mexico and US Life Re from the comparative period.

Embedded Value metrics and Economic solvency at 1H13 are based on the assumption that the disposal of Mexico and US Life RE has

already been finalized.

4


I. OVERVIEW

Net result (Euro m)

Solvency I ratio (%)

Operating result(1) (Euro m)

1H12 1H13

Shareholders’ equity (Euro m)

1,878 2,014 2,270 2,257 2,378

1H11 1H10 1H09 1H12 1H13

504

873 806 842

1,081

1H11 1H10 1H09

One of the best first halves in 5 years

1H12 1H13

11,612

17,146 17,231 17,359 18,433

1H11 1H10 1H09 1H12 1H13

125

132 133 130

139

1H11 1H10 1H09

(1) Operating profit pro-forma

(2) Net income excluding Migdal only (Mexico & US Life Re included in discontinued operations)

(2)

5 Half a year into the plan – A strong start to a multi-year turnaround


January February March April May June July

Creation of

Generali

Italia

Investor

Day,

London

Completed

acquisition

of GPH 1st

tranche

Placement

of 12%

Banca

Generali

Launch of

Corporate &

Commercial

unit

Sale of US

Life Re to

SCOR

Sale of

minority

stake in

Mexico to

Banorte

German minority

squeeze-out &

treasury share

sale launched

Much has been delivered…

More than 50% of Euro 4 bn disposal target reached

Generali Italia created – completion of remaining

legal entity mergers by year end

Corporate & Commercial unit launched

Further streamlining achieved: squeeze-out of

German minorities

New business unit planning & performance

management process implemented

… but still much to achieve

Deliver remaining disposals (BSI ongoing)

Use of proceeds to reduce debt & fund GPH

Enhance cash generation from earnings to

improve dividends

Execute operational restructuring of Italy

Deliver on Euro 600 m cost program

Ongoing excess liquidity reduction in asset

portfolios

GPH deal

agreed

I. OVERVIEW

Group

Management

Committee

(GMC) fully

formed

6

Operation

Expected

closing

date

Cash in

(gross of tax,

Euro bn)

Realized gain

(gross of tax,

Euro bn)

Exit multiple

(historic P/E)

Solvency I

impact

Migdal 4Q12 0.7 n.m. 17x +2%pts.

Total 2012 0.7 +2%pts.

Banca Generali (12%

placement) 2Q13 0.2 0.1(1) 12x +1%pts.

Generali USA Life Re 4Q13 0.7 0.1 15x +1%pts.

Mexico 4Q13 0.7 0.5 18x(2) +4%pts.

Total 2013 1.6 0.8 +6%pts.

CUMULATIVE

TOTAL 2.3 0.8 +9%pts.


Summary of disposals

I. OVERVIEW

(1) The impact increased the Shareholders Equity

(2) Only for Seguros Banorte Generali. Pensiones Banorte Generali sold for 4.9x 2012 Shareholders Equity

Figures may not sum up for roundings

7

Total liquidity(1) has been reduced by Euro

7.5 bn (33%) during 1H13 using a moderate

approach due to market conditions

Excess liquidity: Reinvestment actions

Total Liquidity(1) Trend (Euro bn) Main Actions

Euro 3 bn invested in Third Party best in class

funds

Private placement of corporate bonds (France

and Germany mainly)

Long term government bond exposure has

been increased

BTPs have been reduced by 5%

Cash has been reinvested in 2Q13 at an

average yield of 3.5%

Liquidity will be further deployed, over next 6-12 months to be in line with market (i.e. 2-3%

of investments), according to available opportunities

0

5

10

15

20

25

FY11 1H12 FY12 1Q13 1H13

I. OVERVIEW

(1) Cash & cash equivalent instruments, including time deposits with maturity within 6 months


8


Generali: Our vision for 2015

Reshaped approach to maximise value creation

Focused on core insurance business, with greater contribution from P&C

Stronger capital position and disciplined balance sheet management

Superior customer acquisition and retention, with focus on retail and affluent space

Consistent technical excellence and tight control of costs

The mission is to deliver

top quartile shareholder returns and profitability

1

2

3

4

I. OVERVIEW

9


Agenda


Profit & loss review

Life, P&C and financial segment profitability

Balance sheet and capital

10


Revenue development by segment

II. GROUP FINANCIALS

(1) Including investment contracts (Euro 1,632 m in 1H13, Euro 1,637 m in 1H12)

(2) On like for like basis

1H12

1H12

excluding

Mexico & US

Life Re

1H13 Like for

like ∆

Gross written

premiums 35,648 34,620 34,836 +1.7%

Life(1) 23,230 22,486 23,120 +2.2%

P&C 12,418 12,135 11,715 +0.8%

(Euro m)

35,648 34,836

1H13 1H12

+1.7%(2)

Gross written premiums (Euro m)

34,620

1,028

Contribution from US

Life Reassurance and

Mexican operations

11


Consolidation

adjustments

Total

operating result

Financial services

operating result

P&C

operating result

Operating holding

expenses

Life

operating result

909

272

-168

-116

755

211

-148

-126

2,378

1,481

1,651

2,343

1H13 total operating result (Euro m)

Operating result by segment

1H13

1H12

-7.9%

+5.3%

+28.6%

+24.8%

+13.4%

-7.0%

Like for like


728

1,591

Contribution from US

Life Reassurance and

Mexican operations(1)

(1) The contribution for 1H12 life operating result was Euro 60 m, for 1H12 P&C operating result was Euro 27 m and for total operating result was Euro 86 m

2,257

12


Focus on non operating result

1H12 1H13 Like for

like

Non operating

investment income (286) 5 n.m.

Non operating

holding expenses (329) (397) +20.7%

Of which: interest costs (327) (375) +14.7%

Net other

Non operating

expenses

(161) (198) +23.5%

Of which: VOBA

amortization (92) (88) -4.3%

Total

Non operating

result

(776) (590) -23.9%


5

(286)

(71)

136

226

Non operating investment income (Euro m)

1H13 1H12

Δ Euro m

Net realised

gains

Net impair-ments

Fair Value thr. P&L

1H13 208 (163) (40)

1H12 (18) (300) 32

Δ(1) n.m. -45.7% n.m.

(Euro m)


13


1H12 1H13

Total operating result 2,343 2,378 +5.3%(1)

Non operating result (776) (590) -23.9%(1)

Consolidated result before

taxes and minorities

1,568 1,787 +20.7%(1)

Income taxes (582) (619) +6.3%

Result for discontinued

operations

27 47 +73.2%

Minorities (171) (135) -21.2%

Net result 842 1,081 +28.4%


Net income (Euro m)


842

1,081

+28.4%

1H13 1H12

From operating result to net result

(Euro m)

14


Agenda





15


Life business development


23,230 23,120

+2.2%(1)


1H12 1H13


(2) Including liabilities related to investment contracts

Country 1H12 1H13

Italy (602) 486

France (1,688) 95

Germany 2,118 2,893

CEE 215 270

RoE (841) 850

RoW 420 316

TOTAL (378) 4,911

Net inflows by country (Euro m)

Italy: positive development thanks to

significant decrease of maturities, and

partially of surrender

France: positive trend thanks to the drop of

surrenders

Germany: confirms good positive trend

thanks to the good development of volumes

Rest of Europe: 1H12 negatively influenced

by the decision not to renew a large Group

contract with low profitability

Net technical reserves(2) (Euro bn)

1H13 FY12 Traditional Unit Linked

+2.5%(1)

Traditional Unit linked

260.2 261.9

53.6 56.3

2.71.6313.8 318.2

16


Life profitability – Operating result

(Euro m) 1H12 1H13 Like for like

Technical Margin 2,988 2,867 -1.0%

Investment Result 1,151 1,054 -6.6%

Expenses (2,489) (2,440) +0.3%

Operating Result 1,651 1,481 -7.0%

Life operating profitability hit by low interest rate environment

Life Operating Result by driver

Life operating ratio on

Investments 0.54% 0.45%


Life operating

result 1H12

Δ Technical margin Δ Investment result Δ Expenses Life operating

result 1H13

1,651 1,481 49

(121) (98)

17


Life investment strategy and yields

Current

return(1)

Fixed

income

Equity Real

Estate

1H12 1H13 1H12 1H13 1H12 1H13

Euro m 4,671 4,543 299 311 349 345

% 2.2 1.9 2.3 2.5 3.6 3.5

43.0% 42.8%

33.9% 34.7%

8.4% 8.6%

4.5% 4.5% 3.5% 3.6% 4.7% 3.7% 2.1% 2.0%

FY12 1H13

Other

Cash & cashequivalent

Real estate

Equity

Other fixedincome

Corporatebonds

Governmentbonds

Life segment own investments (%)

Euro 277.0 bn Euro 274.9 bn


Current profitability remains affected by a low

reinvestment yield environment

Cash has been deployed in more profitable investments

Increased exposure to corporate bonds to improve the

overall return of the investment portfolio

+0.6%(1)


18 Life new business value and profitability


Positive development of APE (+1.3% on a like for like basis), with the increase of protection and

unit-linked business

NBM at 20.6%, improving from year-end thanks to better product mix and rigorous pricing,

offsetting the impact of the exit of profitable US and Mexico business

Solid NBV at Euro 473 m (-1.3%)

(Euro m) APE Margin on APE (NBM) NBV

1H12 1H13Like for like

1H12 FY12 1H13 1H12 1H13

Like for like

Italy 790 860 8.9% 23.8% 17.2% 17.3% 188 149 -20.1%

France 581 409 -29.6% 12.5% 12.8% 14.3% 73 59 -19.7%

Germany 400 549 37.2% 20.7% 20.2% 23.4% 83 128 54.6%

CEE 74 84 -17.5% 35.0% 31.4% 45.7% 26 38 5.2%

RoE 322 315 -1.7% 24.9% 20.8% 24.6% 80 77 -2.7%

RoW 112 86 8.4% 38.2% 44.1% 25.7% 43 22 8.0%

Total 2,280 2,303 1.3% 21.6% 19.2% 20.6% 493 473 -1.3%

1H13 amounts include the contributions from Mexico & US Life Re only for 1Q13. Such contributions, as well as other perimeter and FX rates changes, are neutralized in the

like for like variation


19


P&C gross written premiums

(Euro m) 1H12 1H13 Like for like

Italy 3,582 3,441 -3.9%

France 2,240 1,947 -4.2%

Germany 1,987 2,070 +4.2%

CEE 1,228 1,001 -1.3%

RoE 2,579 2,600 +1.2%

RoW 802 656 +41.4%

Total 12,418 11,715 +0.8%




12,418 11,715

1H13 1H12

+0.8%(1)

Positive performance of Motor lines, thanks in particular to the excellent performance in Germany

Non Motor lines remained stable, despite negative trends in Italy and France that offset the good

performances in Germany and Eastern Europe Countries

Commercial under pressure mainly in Spain and Italy, due to the difficult economic environment

20


P&C profitability – Operating result

(Euro m) 1H12 1H13 like for like

Technical Result 272 508 +99.4%

Investment Result 560 517 -6.0%

Other (77) (117) +52.1%

Operating Result 755 909 +24.8%

P&C Operating Result by driver

P&C operating ratio on Investments 2.11% 2.41%

Confirmed strong P&C operating profitability driven by excellent technical results


P&C operating

result 1H12

Δ Technical result Δ Investment result Δ Other P&C Operating

result 1H13

755 909

(43) (40)

236

21


(0.3) (2.2)

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

1H13 1H12

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

94.7% 97.1%

Loss ratio Expense ratio

1H12

1H13

∆

Italy 99.7% 90.8% -8.9%pts.

France 98.4% 97.0% -1.4%pts.

Germany 95.8% 96.0% +0.2%pts.

CEE 87.5% 90.6% +3.1%pts.

RoE 96.1% 95.8% -0.4%pts.

RoW 96.9% 106.2% +9.3%pts.

Total 97.1% 94.7% -2.4%pts.

-2.4%pts.

Expense

ratio

Loss

ratio

27.4

67.3

27.6

69.5


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


Loss ratio (%)

Acq. costs

Adm. costs

Current loss ratio still decreasing

due to a continuous improvement in

Motor frequency (particularly Italy

and Germany)

Positive development of prior years

confirmed

NAT Cat affecting Q2 2013

6.0

21.8

0.2 -0.55.8

21.4

1H13 69.8 2.1 -4.6 67.3

1H12 70.6 2.4 -3.5 69.5

60

62

64

66

68

70

72

69.5

67.3

-0.8 -0.3 -1.1

27.4

Expense ratio (%)

Δ%pts

27.6

(1) Excluding natural catastrophes

-2.2%pts

-0.3%pts

1H13 1H12 Δ Admin. Δ Acq.

1H13 1H12 Current

year(1)

NAT

CAT

Prior

years


23


P&C investment strategy and yields

P&C segment own investments (%)

Euro 37.9 bn Euro 37.3 bn

Current

return(1)

Fixed

income

Equity Real

Estate

1H12 1H13 1H12 1H13 1H12 1H13

Euro m 469 429 54 58 222 186

% 2.0 1.7 1.8 2.2 4.1 3.5

29.7% 30.1%

29.2% 31.5%

10.7% 7.9%

6.9% 7.2%

13.9% 14.1%

8.0% 7.7%

1.6% 1.4%

FY12 1H13

Other

Cash & cashequivalent

Real estate

Equity

Other fixedincome

Corporatebonds

Governmentbonds


Solid liquidity buffer ready to be deployed in attractive

investment opportunities

Increased exposure to corporate bonds to improve the

overall return of the investment portfolio

Current profitability remains affected by a low

reinvestment yield environment

-0.6%(1)


24


67.4 64.2

Financial segment

Operating result (Euro m)

Third party AUM(1) (Euro bn)

Net fees and commissions (Euro m)

211 272

1H13 1H12

+28.6%

415 442

1H13 1H12

+6.6%

96.4 98.5

1H13 FY12

+2.2% -3.2%pts

1H13 1H12

Cost/income ratio (%)


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


25


Agenda





26


19,828

(815)

19,01318,433

(652)

1,081

(124) (24)(597)(311)

IFRS Shareholders’ equity roll forward

Shareholders’

Equity FY12

Impact from

revised IAS

19

01/01/2013 Δ in AFS

Reserve

1H 2013

Net Result

Δ Currency

Translation

Reserve

Δ Cash Flow

Hedge

Reserve

Dividend

paid

Other

(including

Euro 477 m

GPH 25%

minorities

buyout)

Shareholders’

Equity 1H13

-3.1%


(Euro m)

Change in AFS reserve (Euro m)

2,591

(19)

1,938(15)

(619)

AFS Reserve

FY12

Impact Equity Investments

Impact Bond Investments

Other AFS Reserve 1H13

27


17.9 17.9 18.1

26.9 26.1 25.1

Solvency I update


Required margin Available margin

01/01/13 FY12

145%(1)

(Euro bn)

1H13

139%

Solvency I ratio

(1) FY12 shareholders’ equity was restated including the effects of revised IAS 19

(2) Excluding disposal of Mexico & US Life Re

Main drivers of change Main drivers of change

Available margin

Consolidated result:

Banca Generali shares

placement:

Financial markets and other

elements:

GPH 25% minorities buyout

Eligible debt

Required Margin

+ 1.2

+ 0.2

- 0.9

- 1.3

- 0.2

+0.2

150%

142%(2) at July 18

28


Leverage

Debt outstanding (Euro bn)

1H13

13.2 13.1 12.7

1Q13 FY12

Debt reduced by Euro 0.5 bn (maturities funded

from internal resources) in 1H13

Euro 1.25 bn commitment to repurchase

remainder of GPH at end 2014, but:

Majority of proceeds from Euro 4 bn disposal

program still to be received

Focus on enhancing cash flow from existing

business

Thus, significant scope to reduce debt, while

also increasing dividends

We expect a significant reduction in our debt levels by 2015


29


Group Embedded Value roll-forward

(Euro m)

(1) Including mainly disposal of Mexico & US Life Re and GPH minorities buy-out

(2) For the definitions refer to the related section in the backup


23,742 1,504 939 24,914

(960) (311)

EV Official FY12 Change inPerimeter

Normalised EVearnings

Investment andTax Variances

Cash Dividend EV 1H13

Robust return on embedded value, mainly driven

by positive combined ratio at 94.7% and Life NBV

of 473 m

(1)

Return on Embedded Value

RoEV (2) 13.2% Normalised RoEV (2) 21.4%

Group Embedded Value

€ 16.2 Group EV per share

Group EV 1H13

Including

+1.3 bn: increase in interest rates (VIF and P&C liab)

- 0.4 bn: change in mkt value of SH assets

30

19.9


Economic Solvency


Economic Solvency Ratio based on Group Internal Model calibrated on 1 year VaR at 99.5% confidence level

Economic Solvency Ratio

(1) ESR FY12 = AC FY12 (net of proposed dividend 2012 equal to 0.3 bn) divided by Risk Capital FY12

(2) Including disposal of Mexico and US Life Re

Group

AC

Group

RAC

Group

RAC

Group

AC

FY12 1H13

31.9 33.3

19.9

ESR = 159%(1) ESR = 167%(2)

31


III. Final Remarks

Agenda

32


Final remarks

III. FINAL REMARKS

Excellent underlying P&C performance

Market environment still challenging for life investment margin but

inflows continue on recovering trend

Prioritising reinvestment of excess cash

33

IV. Backup

Agenda

P&L

Balance sheet

Life

Definitions


34

IV. Backup

Agenda

P&L

Balance sheet

Life

Definitions


35 1H13 Total gross written premiums

IV. BACK UP

(1) Including investment contracts



(Euro m)

YoY YoY YoY

% increase % increase % increase

(2) (2) (2)

Italy 9,822 +1.8% 28.2% 6,381 +5.1% 27.6% 3,441 -3.9% 29.4%

France 6,037 -21.6% 17.3% 4,090 -27.9% 17.7% 1,947 -4.2% 16.6%

Germany 10,190 +19.7% 29.3% 8,120 +24.4% 35.1% 2,070 +4.2% 17.7%

CEE 1,791 -1.9% 5.1% 790 -2.6% 3.4% 1,001 -1.3% 8.5%

RoE 5,626 +1.6% 16.2% 3,026 +1.9% 13.1% 2,600 +1.2% 22.2%

Of which:

Spain 1,278 -4.1% 3.7% 553 +3.3% 2.4% 724 -9.1% 6.2%

Austria 1,393 +3.0% 4.0% 586 +3.7% 2.5% 807 +2.5% 6.9%

Switzerland 981 -3.8% 2.8% 501 -8.5% 2.2% 480 +1.7% 4.1%

RoW 1,370 +32.2% 3.9% 714 +24.3% 3.1% 656 +41.4% 5.6%

Total 34,836 +1.7% 100.0% 23,120 +2.2% 100.0% 11,715 +0.8% 100.0%

Total gross written premiums Gross life written premiums(1)

Gross P&C written premiums

Country GWP

Weight on

total GWP GWP

Weight on

total GWP GWP

Weight on

total GWP

36 1H13 Life premiums by country and business line(1)

IV. BACK UP




GDPYoY %

increase(2) GDPYoY %



increase(2)

Italy 5,869 +6.0% 117 -8.2% 227 -13.0% 6,213 +4.9%

France 2,412 -43.1% 860 -3.6% 681 +65.2% 3,953 -28.7%

Germany 4,291 +52.7% 2,116 +4.8% 1,712 +0.9% 8,120 +24.4%

CEE 431 -11.8% 122 +9.2% 236 +13.0% 790 -2.6%

RoE 1,115 +3.5% 489 +1.4% 1,409 +0.8% 3,013 +1.9%

Of which:

Spain 432 +5.3% 116 -3.8% 5 +11.1% 553 +3.3%

Austria 322 +9.1% 133 +4.9% 122 -8.1% 577 +4.0%

Switzerland 80 -20.6% 65 +5.0% 356 -7.5% 501 -8.5%

RoW 393 +17.3% 263 +19.4% 55 +294.8% 711 +25.1%

Total Life gross

direct premiums 14,512 +0.2% 3,968 +3.0% 4,321 +8.3% 22,801 +2.1%

(Euro mln)

Protection Unit/Index linkedSavings and pension Total

(Euro m)

37 1H13 P&C premiums by country and business line

IV. BACK UP

(1) Including fleets



GDPYoY %





increase(2)

Italy 1,548 -9.0% 439 +1.0% 787 -3.6% 576 -0.3% 3,350 -5.1%

France 550 -5.9% 825 +3.7% 448 -7.1% 0 -100.0% 1,823 -4.6%

Germany 872 +7.2% 747 +2.4% 173 +2.0% 275 +1.4% 2,068 +4.2%

CEE 478 -3.9% 175 +2.2% 269 +0.8% 53 +2.3% 976 -1.3%

RoE 932 +1.6% 573 +4.3% 556 -7.6% 444 +4.9% 2,506 +0.5%

Of which:

Spain 189 -8.0% 220 +2.4% 191 -22.6% 110 -1.7% 711 -8.8%

Austria 308 +0.6% 171 +2.6% 233 +4.0% 81 +4.0% 793 +2.3%

Switzerland 231 -0.7% 113 +5.1% 2 -8.2% 133 +4.6% 479 +2.0%

RoW 438 +51.4% 28 +259.8% 127 +28.4% 20 +13.7% 613 +48.4%

Total P&C gross

direct premiums 4,819 +0.8% 2,789 +3.7% 2,360 -3.0% 1,368 -1.6% 11,336 +0.4%

TotalAccident/Health

(Euro mln)

Motor (1) Personal Commercial

(Euro m)

38

Loss

ratio

Expense

ratio

P&C - Combined ratio (%)

Total - Expense ratio (%)

69.5 67.3

27.6 27.4

1H13 1H12

1H13 1H12

1H13 1H12

97.1 94.7

1H13 technical ratios

IV. BACK UP

Life - Expense ratio (%)


16.2 15.8

10.610.9

39 1H13 combined ratio reconciliation

(1) Administration expenses related to service companies, real estates and other companies not belonging to P&C segment

(Euro m)

IV. BACK UP


1H12 1H13

A Net earned premiums (net of consolidation adjustments) 10.565 10.228

B Consolidated net claims 7.339 6.880

Consolidated acquisition costs 2.308 2.185

Consolidated administration costs 652 638

Non insurance activity related administration costs(1)

39 21

Insurance activity related consolidated administration costs 613 617

C Total acquisition and administration costs 2.920 2.802

B/A Loss ratio 69,5% 67,3%

C/A Expense ratio 27,6% 27,4%

(B+C)/A Combined ratio 97,1% 94,7%

D Other technical items 34 37

A-B-C-D Technical result 272 508

40 1H13 technical ratios by country

IV. BACK UP


(%) ITA FRA GER CEE RoE SPA AUT SWI RoW Consolidated

1H13 69.7% 69.9% 67.5% 58.0% 66.9% 64.8% 67.1% 69.4% 64.6% 67.3%

1H12 78.5% 71.6% 67.5% 50.3% 67.3% 64.9% 67.0% 70.7% 58.1% 69.5%

1H13 21.1% 27.2% 28.5% 32.6% 28.9% 28.5% 27.9% 26.3% 41.6% 27.4%

1H12 21.2% 26.8% 28.3% 37.2% 28.9% 27.9% 28.3% 26.1% 38.9% 27.6%

1H13 90.8% 97.0% 96.0% 90.6% 95.8% 93.3% 95.0% 95.7% 106.2% 94.7%

1H12 99.7% 98.4% 95.8% 87.5% 96.1% 92.9% 95.3% 96.8% 96.9% 97.1%

1H13 9.6% 12.0% 9.6% 18.1% 11.3% 4.5% 13.9% 19.5% 21.2% 10.6%

1H12 10.0% 12.0% 12.0% 19.8% 12.1% 4.6% 15.1% 19.4% 15.5% 10.1%

P&C Loss ratio

P&C Expense ratio

P&C Combined ratio

Life expense ratio by country

41 Focus on operating result

1H12

1H13 Like for

like ∆

Italy 971 1,150 +18.4%

France 466 443 -4.8%

Germany 315 336 +6.6%

CEE 263 182 -30.7%

RoE 454 497 +9.3%

RoW 147 53 -13.9%

Operating result(1) 2,617 2,661 +5.1%

Op. holding expenses (148) (168) +13.4%

Consolidation Adj. (126) (116) -7.9%

Total operating

result

2,343 2,378 +5.3%

Operating result by country(1) (Euro m)

668

313 168

81 207

44

358

131

138

88

184

11

125

30

13

106

-2 Italy France Germany CEE RoE RoW

Life P&C Financial

Operating result breakdown(1) (Euro m)

(1) Operating result = operating result of life, P&C and financial segments, before holding expenses and consolidation adjustments

1,150

443 336

182

497

53

IV. BACK UP


42

1H 2013(1) FY 2012 FY 2011 FY 2010

Consolidated Operating result 2,378 4,219 3,928 4,077

Interest expenses on financial debt (375) (668) (646) (704)

Operating taxes(2) (691) (1,225) (1,132) (1,163)

Minority interest (83) (287) (278) (258)

Net IFRS Total Operating result 1,229 2,040 1,872 1,951

Average shareholder's equity (excluding

OCI(3)) 17,000 17,131 17,252 16,699

Operating RoE 7.2% 11.9% 10.8% 11.7%

Operating Return on Equity: calculation

(1) 1H13 Operating RoE not annualised

(2) Taxes based on mid-point of long term expected range of 33-36%


(Euro m)


IV. BACK UP

43

1,650

1,481

Life operating result

Operating result (Euro m)

1H13 1H12

-7.0%(1)

Operating result by country (Euro m)

IV. BACK UP

1H12 1H13 Like for

like

Italy 742 668 -10.0%

France 337 313 -7.3%

Germany 162 168 +3.7%

CEE 94 81 -13.7%

RoE 207 207 +0.2%

Of which:

Spain 52 53 +1.3%

Austria 30 31 +1.1%

Switzerland 60 61 +0.5%

RoW 109 44 -11.3%

Total 1,651 1,481 -7.0%



44 Life net inflows by country

IV. BACK UP


Country 1H12 1H13 Like for like

Italy (602) 486 n.m.

France (1,688) 95 n.m.

Germany 2,118 2,893 +36,6%

CEE 215 270 +37,5%

RoE (841) 850 n.m.

Spain (1,661) (43) +97,4%

Austria 38 79 +105,9%

Switzerland 311 264 -13,5%

RoW 420 316 +48,2%

Total (378) 4,911 n.m.

45

755

909

P&C operating result

1H13 1H12

+24.8%(1)

IV. BACK UP

1H12 1H13 Like for

like

Italy 120 358 +198.4%

France 128 131 +1.8%

Germany 127 138 +8.8%

CEE 157 88 -43.6%

RoE 184 184 +0.0%

Of which:

Spain 84 81 -2.8%

Austria 52 57 +9.0%

Switzerland 23 25 +8.0%

RoW 40 11 -16.8%

Total 755 909 +24.8%

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



46 Other operating and non operating expenses by segment

(Euro m) Life Non Life Financial

1H12 1H13 1H12 1H13 1H12 1H13

Total net other operating expenses (28) (42) (103) (147) (47) (70)

Restructuring costs (3) (2) (15) (26) (5) (1)

Other net non operating expenses(1) (66) (98) (56) (60) (10) (11)

Total net other non operating expenses (69) (100) (71) (86) (15) (12)

(1) Other non operating expenses include mainly amortization of VOBA

IV. BACK UP


47


(Euro m) Life P&C Financial Total

Net impairments 1H12 1H13 1H12 1H13 1H12 1H13 1H12 1H13

Equity instruments 457 246 96 35 3 1 555 282

Fixed income (2) (13) 12 (4) 7 (2) 17 (19)

Real estate 19 65 5 7 0 0 24 72

Other investments(2) 7 11 65 78 9 2 81 91

Total net impairments 480 309 179 116 18 1 677 425

Of which

Operating net

impairments 362 262 0 0 15 0 378 262

Non operating net

impairments 118 47 179 116 3 1 300 163

Focus on impairments(1)

(1) Net of reverse impairments

(2) Including subsidiaries and associated companies

IV. BACK UP

48


(Euro m) Life P&C Financial Total

1H12 1H13 1H12 1H13 1H12 1H13 1H12 1H13

Net realized gains on Equities 85 256 (28) 45 0 117 57 418

Realised gains 305 341 47 65 0 117 353 522

Realised losses (220) (84) (75) (20) 0 0 (295) (104)

Net realized gains on Fixed Income 178 710 4 52 0 15 183 777

Realised gains 1,853 795 81 60 1 17 1,935 872

Realised losses (1,675) (85) (77) (9) (1) (2) (1,753) (95)

Net realized gains on Real Estate 66 30 68 56 0 0 134 86

Realised gains 70 36 72 63 0 0 142 98

Realised losses (4) (6) (4) (7) 0 0 (7) (13)

Net realized gains on Other(2) 6 13 21 (6) (1) 2 26 10

Realised gains 6 22 21 1 1 2 29 25

Realised losses (1) (8) 0 (7) (2) 0 (3) (15)

Total net realized gains 335 1,010 66 147 (1) 134 400 1,291

Operating net realized gains 418 1,035 0 0 0 48 418 1,083

Non operating net realized gains (82) (25) 66 147 (2) 86 (18) 208

Focus on realised gains(1)

(1) Excluding financial instruments at fair value through profit and loss

(2) Including subsidiaries and associated companies

IV. BACK UP

49 Focus on non operating items: interest expenses on financial debt

327 375

1H12 1H13

Average cost (%) 5.40% 5.92%

Average maturity (years) 5.41 5.77

Total financial debt (Euro m) Interest expenses on financial debt (Euro m)

1H13 1H12

Average cost & maturity of financial debt (%) 36.8% 35.0%

54.5% 59.2%

8.7% 5.8%

1H12 1H13

Senior Sub/Hybrid Other

12,741 12,124

IV. BACK UP


50 Reclassified P&L account

Total

(Euro m) 1H12 1H13

Total Operating result 2,343 2,378

Net earned premiums 31,650 31,163

Net insurance benefits and claims (30,995) (31,338)

Acquisition and administration costs (5,767) (5,583)

Net fee and commission income and net income from financial service activities 395 410

Operating income from other financial instruments 5,665 6,264

Operating income from financial instruments at fair value through profit or loss 1,727 1,890

of which net income from fin. assets and liabilities where the risk is borne by the policyholders 1,293 1,589

Operating holding expenses (148) (168)

Net other operating expenses (184) (261)

Non-operating result (776) (590)

Non-operating income from other financial instruments (318) 44

Non-operating income from financial instruments at fair value through profit or loss 32 (40)

Non-operating holding expenses (329) (397)

Interest expenses on financial debt (327) (375)

Other non-operating holding expenses (2) (22)

Net other non-operating expenses (161) (198)

Earnings before taxes 1,568 1,787

Income taxes (582) (619)

Result from discontinued operations 27 47

Consolidated result of the period 1,012 1,215

Result of the period attributable to minority interests (171) (135)

Result of the period 842 1,081

IV. BACK UP


51

(Euro m) Life Non life Financial(1)

Unallocated holding

expenses Consolidation

adjustments Total

Total Operating result 1,651 755 211 (148) (126) 2,343

Net earned premiums 21,085 10,565 - - - 31,650

Net insurance benefits and claims (23,656) (7,339) - - - (30,995)

of which var. of provisions related to unit linked business (1,212) - - - - (1,212)

Acquisition and administration costs (2,415) (2,928) (424) - - (5,767)

Net fee and commission income and net income from financial service activities 47 - 415 - (66) 395

Operating income from other fin. Instruments 4,986 536 195 - (53) 5,665

Operating income from fin. Instruments at fair value through profit or loss 1,632 23 72 - - 1,727

of which net income from fin.assets and liabilities where the risk is borne by the policyholders 1,293 - - - - 1,293

Operating holding expenses - - - (148) - (148)

Net other operating expenses (28) (103) (47) - (7) (184)

Non-operating result (269) (152) (19) (329) (7) (776)

Non-operating income from other fin.instr. (200) (113) (4) - - (318)

Non-operating income from fin. instr.at fair value through profit or loss - 32 - - - 32

Non-operating holding expenses - - - (329) - (329)

Net other non-operating expenses (69) (71) (15) - (7) (161)

Earnings before taxes 1,382 603 192 (477) (132) 1,568

Reclassified P&L account by segment - 1H12

IV. BACK UP

(1) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Report


52

(Euro m) Life Non life Financial(1)

Unallocated holding

expenses Consolidation

adjustments Total

Total Operating result 1,481 909 272 (168) (116) 2,378

Net earned premiums 20,935 10,228 - - - 31,163

Net insurance benefits and claims (24,457) (6,880) - - - (31,338)

of which var. of provisions related to unit linked business (2,037) - - - - (2,037)

Acquisition and administration costs (2,354) (2,808) (420) - - (5,583)

Net fee and commission income and net income from financial service activities 47 0 442 - (79) 410

Operating income from other fin. Instruments 5,559 503 237 - (35) 6,264

Operating income from fin. Instruments at fair value through profit or loss 1,793 14 83 - - 1,890

of which net income from fin.assets and liabilities where the risk is borne by the policyholders 1,589 - - - - 1,589

Operating holding expenses - - - (168) - (168)

Net other operating expenses (42) (147) (70) - (3) (261)

Non-operating result (172) (95) 73 (397) 1 (590)

Non-operating income from other fin.instr. (72) 31 85 - - 44

Non-operating income from fin. instr.at fair value through profit or loss - (40) - - - (40)

Non-operating holding expenses - - - (397) - (397)

Net other non-operating expenses (100) (86) (12) - 1 (198)

Earnings before taxes 1,308 814 345 (565) (115) 1,787

Reclassified P&L account by segment - 1H13

IV. BACK UP

(1) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Report


53

IV. BACK UP

Focus on 2Q13 results



(Euro m)


2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q132Q13/

2Q12(2)

Life premiums(1) 11,503 10,543 12,009 12,815 10,415 10,271 13,309 12,282 11,259 +11.5%

P&C premiums 5,219 4,931 5,823 6,999 5,419 5,027 5,359 6,863 5,050 +0.6%

Total premiums 16,722 15,474 17,832 19,814 15,834 15,298 18,668 19,145 16,309 +7.9%

Life net inflows 1,999 1,678 (651) 760 (1,138) 1,515 2,399 2,913 2,109 +276.9%

Combined ratio % 96.9% 96.7% 96.4% 95.4% 98.8% 95.7% 92.8% 93.6% 95.6% -3.2%

Life operating result 782 315 564 819 832 545 462 797 683 -12.5%

P&C operating result 406 405 357 411 344 404 505 520 389 +23.4%

Financial operating result 96 68 63 126 85 109 88 119 153 +80.4%

Operating holding expenses

and cons. adj.(132) (96) (155) (126) (148) (109) (128) (108) (176) +19.0%

Total operating result 1,153 692 827 1,230 1,113 949 928 1,328 1,049 +1.7%

Net result 190 20 31 567 274 291 (1,043) 603 478 +74.0%

54

IV. Backup

Agenda

P&L

Balance sheet

Life

Definitions


55 Consolidated balance sheet

(1) Including reinsurance amounts of technical reserve, deferred tax assets, deferred acquisition costs and other assets

(Euro bn) FY12 1H13

Intangible assets 9.9 9.7

Investments

Cash

374.1

21.6

375.9

18.5

Other credits 11.1 12.3

Tangible assets 5.0 5.1

Other assets (1) 20.0 25.7

Total Assets 441.7 447.2

(Euro bn) FY12 1H13

Shareholders’ Equity

(Group share) 19.8 18.4

Minority interests 2.7 1.9

Shareholders’ Equity 22.6 20.3

Operating debt 50.7 50.0

Financial debt 13.2 12.7

Technical reserves 336.4 338.0

Payables and other

provisions 9.5 10.2

Other liabilities 9.4 16.0

Total Liabilities and

Shareholders’ Equity 441.7 447.2

IV. BACK UP


56 Assets under management

Total

Euro 491 bn

Unit Linked

Third parties AUM

IV. BACK UP

(1) For definitions refer to the related section in the backup


99.6

335.2

56.5

338.8

53.8

97.4

Total

Euro 490 bn

Fixed income

instruments

Other

Real Estate

Equity

“Own Investments”(1)

Cash & equival.

4.7%

81.2%

4.5%

5.2%

3.4%

1H13 FY12

57

Fixed income instruments

Of which bonds

Of which loans

Real estate

Other

Subs, ass. & JVs

IV. BACK UP

1H13 own investments at amortized cost and fair value(1)

Fixed income instruments

Of which bonds

Equity

Other

Investments at amortized cost

Investments at fair value

(1) Excluding unit linked and third parties AUM

Cash & equivalents


91.6%

86.1%

6.8%

1.7%

233.9

83.8

17.5

73.1%

50.5%

22.6%

15.2%

9.6%

2.1%

Total

Euro 335 bn

58 1H13 book value and market value of own investments(1)

IV. BACK UP

(1) Excluding unit linked and third parties

(2) Net of consolidation adjustments


(Euro m)

Asset classes BV MV BV MV BV MV BV MV

Equity 12,494 12,494 2,707 2,707 606 606 15,807 15,807

Fixed income instruments 236,974 240,591 26,068 26,082 14,844 15,151 275,405 279,341

Corporate 95,555 98,029 11,769 11,748 2,176 2,179 109,176 111,632

Government 117,730 118,723 11,242 11,271 5,668 5,707 134,640 135,702

Other fixed income 23,689 23,838 3,057 3,062 7,000 7,264 31,589 32,007

Real estate 9,912 12,430 5,264 8,004 21 37 15,197 20,471

Life P&C Financial Total(2)

59 Quality of 1H13 fixed income portfolio

By issuer (Euro bn)

Fixed income portfolio composition: Euro 275.4 bn

117.7 11.2 5.7 134.6

95.6 11.8

2.2

109.2

23.7 3.1

7.0

31.6

Life P&C Financials Total

Government Corporate Other fixed income

IV. BACK UP

Bond portfolio by rating (%)

19.8% 21.2% 15.2% 39.1%

3.3%

1.3%

AAA AA A BBB NIG NR


Average bond portfolio duration

(years)Life P&C

Government 8.5 4.6

Corporate 5.8 3.4

%Current

return

Comprehensive

return

Life 1.9% 0.8%

P&C 1.6% 1.0%

60

Government bonds: Euro 134.6, 48.9% of total fixed income portfolio

Focus on 1H13 government bond portfolio

43% 30%

18%

57% 70%

82%

Life P&C Financial

IV. BACK UP

Weight on own investments Split by accounting treatment

10.5%

89.5%

Amortized cost Fair Value


Split by country

(Euro bn)Total Of which domestic

Italy 56.7 52.5

France 27.5 21.0

Germany 9.3 7.0

CEE 8.1 5.4

RoE 22.9 10.2

RoW 2.1 0.8

Supranational 8.0 na

Split by rating (Euro bn) Total

AAA 18.1

AA 44.4

A 3.6

BBB 65.5

Not investment grade 2.7

Not rated 0.3

117.7 11.2 5.7

61 Peripheral government bond portfolio: focus on country exposure

IV. BACK UP

0.0

0.8

0.3

0.1 Italy

Germany

France

RoE

1.5

0.6

0.6

4.2

Italy

Germany

France

Spain

0.0

0.9

0.3

0.2 Italy

Germany

France

RoE

52.5

2.0 1.8 0.5

Italy

Germany

France

RoE

Italian government bonds: Euro 56.7 bn Spanish government bonds: Euro 7.0 bn

Portuguese government bonds: Euro 1.3 bn Irish government bonds: Euro 1.4 bn


62

Focus on 1H13 corporate bond portfolio

25.7%

74.3%

Amortized cost Fair Value

35% 31% 7%

65% 69% 93%

Life P&C Financial

Weight on own investments Split by accounting treatment

IV. BACK UP


Corporate bonds: Euro 109.2 bn, 39.6% of total fixed income portfolio

Split by industry

(Euro bn)Life P&C

Financials 29.1 3.8

Covered bonds 29.4 3.3

Utilities 10.2 1.0

ABS 1.3 0.3

Telecom 5.0 1.0

Industrial 9.0 0.7

Other 11.5 1.6


AAA 30.2

AA 7.3

A 33.6

BBB 29.8


Not rated 2.9

95.6 11.8 2.2

63

Focus on 1H13 covered and financial corporate bond portfolios

Covered bonds(1): Euro 33.4 bn

IV. BACK UP

Financial corporate bonds(1): Euro 33.8 bn


(1) Including life, P&C and financial segment investments.


AAA 26.4

AA 1.4

A 3.0

BBB 2.0


Not rated 0.5

Split by country (Euro bn) Total

Italy 1.5

France 9.1

Germany 8.6

CEE 0.5

RoE 12.9

RoW 0.7


AAA 2.4

AA 2.6

A 15.1

BBB 9.9


Not rated 0.7

Split by country (Euro bn) Total

Italy 4.8

France 6.0

Germany 5.6

CEE 0.7

RoE 11.9

RoW 4.8

64

Focus on 1H13 equity portfolio

5% 7% 2%

Life P&C Financial

Equity: Euro 15.8 bn

IV. BACK UP

Weight on own investments

Group net equity exposure

Gross

equity

exposure

Hedging PHs’

interest

Taxes

Min.

interest

Net

equity

exposure


15.8

5.1

(0.6) (9.9)

(0.1)

(0.2)

12.5 2.7 0.6 %

Current

return

Comprehensive

return

Life 2.5% 2.7%

P&C 2.2% 3.0%

Split by industry (Euro bn) Life P&C

Financials 1.9 1.0

Consumer 1.3 0.3

Utilities 0.8 0.1

Industrial 1.0 0.2

Other 2.4 0.5

Alternative funds 3.1 0.6

Funds 2.0 0.1

65

(1) RoE includes Austria, Spain, Switzerland, Belgium, UK and Netherlands

(2) RoW includes Latin America, Far East and US.

1H13 Group real estate assets (1/2)

Country Total BV

(Euro bn)

% of

the total

Total MV

(Euro bn)

% of

the total

Italy 6.5 36% 9.4 40%

France 4.2 24% 5.7 24%

Germany 3.8 21% 3.9 16%

CEE 0.2 1% 0.2 1%

RoE(1) 3.2 17% 4.5 18%

RoW(2) 0.2 1% 0.2 1%

Total 18.1 100% 23.9 100%

Investment properties vs. self use Yield on investment properties

Self Use

14.2 %

Investment

properties

85.8 %

IV. BACK UP

% of Average NBV Current Return

Life 3.5%

P&C 3.5%

% based on Market Value


66 1H13 Group real estate assets (2/2)

IV. BACK UP

Country Area

(sqm m)

% of

total area

MV

(Euro bn)

% of

Total MV

Italy 2.5 38% 8.2 38%

France 1.6 24% 5.4 25%

Germany 1.1 17% 3.1 14%

CEE 0.1 2% 0.2 1%

RoE (1) 1.2 17% 4.4 20%

RoW (2) 0.1 2% 0.2 1%

Total 6.6 100% 21.4 100%

Residential 12%

Retail 16%

Logistic 3%

Other 7% Office 62%

Direct Investments in leader countries

(1) RoE includes UK, Austria, Spain, Switzerland, Belgium

and Netherlands

(2) RoW includes Latin America, Far East and US


67 Investment yields(1)


IV. BACK UP


Return (%) 1H12 1H13 1H12 1H13 1H12 1H13 1H12 1H13 1H12 1H13

LIFE

Current 2.2 1.9 2.3 2.5 3.6 3.5 0.9 1.0 2.1 2.0

Total P&L 2.3 2.3 -0.1 3.6 4.2 1.9 0.8 -0.4 2.1 2.1

Comprehensive 5.3 0.8 2.2 2.7 3.9 1.7 0.8 -0.4 4.7 0.9

NON LIFE

Current 2.0 1.7 1.8 2.2 4.1 3.5 1.0 1.8 2.2 2.0

Total P&L 2.0 1.9 -2.3 2.5 5.2 2.4 1.0 0.7 2.1 1.8

Comprehensive 4.3 1.0 -0.4 3.0 5.2 2.4 1.0 0.7 3.8 1.2

TOTAL

Current 2.1 1.9 2.2 2.4 3.8 3.5 0.7 0.7 2.0 1.9

Total P&L 2.2 2.2 -0.4 4.2 4.4 2.1 0.6 -0.2 2.0 2.1

Comprehensive 5.1 0.9 1.7 3.4 4.2 1.9 0.6 -0.2 4.4 0.9

Fixed Income EquitiesInvestment

PropertiesOther Total

68


18,43318,775

478(468) 47(311)(10)(78)

IFRS Shareholders’ equity roll forward – Quarterly evolution

Shareholders’

Equity 1Q2013

Δ in AFS

Reserve

2Q 2013

Net Result

Δ Currency

Translation

Reserve

Δ Cash Flow

Hedge Reserve

Dividend paid Other Shareholders’

Equity 1H13

-1.8%

(Euro m)

Change in AFS reserve (Euro m)

2,406

(66)

1,938

(42)(360)

AFS Reserve

FY12

Impact Equity Investments

Impact Bond Investments

Other AFS Reserve 1H13

IV. BACK UP

69 AFS reserve breakdown

IV. BACK UP


(Euro m) FY12 1Q13 1H13

Fixed income instruments 1,889 1,631 1,271

Government 1,111 860 764

Corporate 778 770 507

Equity 549 578 534

Investment funds and other 152 198 134

TOTAL 2,591 2,406 1,938

70

18.2 18.1

25.0 25.1

Regulatory Solvency I development in 2Q13

1H13 1Q13

138% 139%

(Euro bn)

Main drivers of change

IV. BACK UP


Available margin

Consolidated result:

Banca Generali shares placement:

Financial markets and other elements:

Required Margin

+ 0.5

+ 0.2

- 0.6

- 0.1

Required margin Available margin Solvency I ratio

71 Stress tests on Solvency I and Shareholders’ equity

Impact on solvency I ratio (%) Impact on Shareholders’ equity (Euro bn)

Total ratio 30.06.2013

Equities -30%

Interest rate +100bps

Interest rate -100bps

Credit spread +100bps

Real estate -10%

(1.0)

2.7

(2.7)

(1.5)Equities -30%

Interest rate +100bps

Interest rate -100bps

Credit spread +100bps

(1) (1)

(1) Before hedging impact

IV. BACK UP


139

130

124

154

133

135

72

(12)

425

1,850

(344)

2,530

(307) (1,326)

681

196 (644)

1,032

(244) 270

1,308

2Q131Q134Q123Q122Q121Q124Q113Q112Q111Q114Q103Q102Q101Q10

Total comprehensive income(1)

(Euro m)

3M10 6M10 9M10 12M10 3M11 6M11 9M11 12M11 3M12 6M12 9M12 12M12 3M13 6M13

1,308 1,064 2,096 1,452 270 466 (860) (1,166) 2,530 2,186 4,036 4,717 425 413

+4,000 m

-1,000 m

IV. BACK UP



73 Financial debt schedule

0

500

1,000

1,500

2,000

2,500

3,000

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2024 2026

Hybrid Subordinated Senior Loans

Bonds

Financial debt breakdown by expiry date/call date (Euro m)

IV. BACK UP


Euro 550 m

repayed

during 1H13

74 1H13 technical reserves

IV. BACK UP


(Euro m) Traditional Linked TOTAL

Life net technical reserves(1)

Italy 83,487 5,697 89,184

France 66,569 15,504 82,073

Germany 81,854 15,312 97,166

CEE 5,460 1,579 7,039

GROUP TOTAL 261,862 56,300 318,162

(Euro m) Motor Non Motor TOTAL

P&C net technical reserves

Italy 4,902 6,964 11,866

France 2,316 3,431 5,747

Germany 2,041 2,613 4,654

CEE 1,210 757 1,967

GROUP TOTAL 13,877 17,158 31,035

(1) Including investment contracts for Euro 18,023 million

75 Operating ratio on investments(1)

IV. BACK UP

Life operating ratio on investments (%)

P&C operating ratio on investments (%)


(%)1H12 1H13 %pts

Italy 0.94 0.77 -0.17

France 0.42 0.37 -0.05

Germany 0.18 0.17 -0.01

CEE 1.26 1.03 -0.23

GROUP TOTAL 0.54 0.45 -0.09

(%)1H12 1H13 %pts

Italy 1.02 2.83 1.81

France 2.38 2.19 -0.19

Germany 2.21 2.25 0.04

CEE 4.58 2.51 -2.07

GROUP TOTAL 2.11 2.41 0.30


76 Number of shares(1)

(1) Calculation based on IAS 33

IV. BACK UP


Ordinary

Shares issued

(1)

Own

shares

(2)

Shares

outstanding

(1-2)

shares outstanding at 12.31.2012 1,556,873,283 15,996,870 1,540,876,413

Weighted number of shares outstanding at 12.31.2012 1,540,876,249

Capital increase

Stock grant plan -425,967 425,967

Exercise of stock options

Generali shares purchase 763,125 -763,125

Change in scope

shares outstanding at 06.30.2013 1,556,873,283 16,334,028 1,540,539,255

Weighted number of shares outstanding at 06.30.2013 1,540,790,961

Potential (dilutive) shares:

Stock options 0

Weighted number of shares outstanding at 06.30.2013

adjusted for the effects of all dilutive potential ordinary

shares.

1,540,790,961

Weighted number of shares outstanding at 12.31.2012

adjusted for the effects of all dilutive potential ordinary

shares.

1,540,876,249

77 Per share indicators

IV. BACK UP

(1) Calculated on the basis of weighted shares outstanding during six months 2013 (1,540,875,841)

(2) Calculated on the basis of shares outstanding at 30.06.2013 (1,524,456,333)


(Euro) 1H13

Earnings per share(1)

0.7

Book Value per share(2)

12.1

ANAV per share(2)

8.7

Embedded Value per share(2)

16.2

78

IV. Backup

Agenda

P&L

Balance sheet & capital

Life

Definitions


79 Life new business: APE

IV. BACK UP


(Euro m) APE Annual Premiums Single Premiums


1H12 1H13

Like for like

1H12 1H13

Like for like

Italy 790 860 8.9% 514 558 8.5% 2,760 3,026 9.6%

France 581 409 -29.6% 178 168 -5.8% 4,031 2,415 -40.1%

Germany 400 549 37.2% 283 289 2.2% 1,174 2,600 121.5%

CEE 74 84 -17.5% 68 79 -14.7% 61 47 -46.1%

RoE 322 315 -1.7% 214 192 -9.7% 1,071 1,224 14.4%

Austria 45 47 3.9% 36 35 -3.0% 95 124 29.6%

Spain 56 68 21.0% 24 29 19.2% 324 397 22.3%

Switzerland 55 33 -39.5% 49 32 -34.8% 55 10 -81.7%

RoW 112 86 8.4% 94 69 6.9% 183 171 18.1%

Total 2,280 2,303 1.3% 1,352 1,354 0.6% 9,281 9,483 2.2%

1H13 amounts include the contributions from Mexico & US Life Re only for 1Q13. Such contributions, as well as other perimeter and FX rates changes, are neutralized in the

like for like variation

80 Life new business: Value and margins

IV. BACK UP


(Euro m) NBV Margin on APE


1H12 FY12 1H13

Italy 188 149 -20.1% 23.8% 17.2% 17.3%

France 73 59 -19.7% 12.5% 12.8% 14.3%

Germany 83 128 54.6% 20.7% 20.2% 23.4%

CEE 26 38 5.2% 35.0% 31.4% 45.7%

RoE 80 77 -2.7% 24.9% 20.8% 24.6%

Austria 4 9 102.4% 9.7% 6.3% 18.9%

Spain 14 18 25.4% 25.4% 19.8% 26.3%

Switzerland 13 14 9.0% 23.9% 27.5% 43.0%

RoW 43 22 8.0% 38.2% 44.1% 25.7%

Total 493 473 -1.3% 21.6% 19.2% 20.6%

1H13 amounts include the contributions from Mexico and US Life Re only for 1Q13. Such contributions, as well as other perimeter and FX rates changes, are neutralized in

the like for like variation

81 Value in force: Life & Health and asset gathering

Asset gathering (Euro m)

1H13 FY12

+7.7%(1)

IV. BACK UP

1,131 1,139


Life & Health (Euro m)

1H13 FY12

+26.0%(1) 10,487

9,352

(1) on a like for like basis

1H13 Life & Health VIF valuation based on:

30/06/2013 economic scenario (interest rates, volatilities, market value of assets)

same market consistent methodology applied at FY12 (reference rates based on swap plus illiquidity premium)

EUR illiquidity premium (100% bucket): 38bps, EUR extrapolation entry-point: 20 years

FY12 operating assumptions (mortality, surrender, expenses)

82

IV. Backup

Agenda

P&L

Balance sheet

Life

Definitions


83


Definitions: P&L and balance sheet (1/3)

IV. BACK UP

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 (gross of investments related expenses)

Total P&L return: = current return + harvesting return (net realized gains, net impairments and net unrealized

gains reported in P&L) – investments related expenses

Comprehensive return:

i) for fair value investment (AFS, FVthPL) = current return + total change in fair value;

ii) for investment at amortised cost (Real estates, loans, HtM) = Total P&L return

Investment returns for Life segment include income from bonds and loans issued by Group companies and

investments in consolidated subsidiaries backing policyholders’ liabilities

Life Net Inflows Premiums inflows in the period less benefits paid to the policyholders. It does not include revaluation of

mathematical reserves

Life Operating Result consists of the following elements:

i) "Technical Margin" includes loadings, risk result, surrender result; it is gross of acquisition and administration costs

ii) "Investment Result" includes interests and dividends, interest expenses on operating debt, G/L on foreign currency

and investment expenses, net of policyholder benefits; it includes also operating realised and unrealised G/L, net of

policyholder benefits

iii) "Expenses" include acquisition and administration costs and other net operating items (it does not consider any

loading charged to policyholders)

“Operating ratio on Investments” is calculated as Operating result on the average of Investments at book

value

Like for Like changes The change of written premiums, net cash inflow, APE and NBV is on equivalent terms (on equivalent

exchange rates and consolidation area). The change of operating results, AUM and technical reserves is

calculated excluding Migdal Group from the comparative period

Operating Result Operating result of life, P&C and financial segments, before holding expenses and consolidation adjustments

84


Own Investments do not include unit/index linked investments and consist of the following asset class (*):

i) Fixed income instruments as quoted and unquoted bonds, loans including deposits under reinsurance business

accepted and term deposits with credit institutions

ii) Equity-like instruments as quoted and unquoted equities and alternative investments

iii) Real estate investments excluding own used properties

iv) Cash and cash equivalent including Repo and Reverse repo

v) Other investments as investments in non-consolidated subsidiaries, derivatives, receivables from banks or customers

(*) Investment fund units are allocated to each asset class on a look through basis

Own investments for life segment include bonds and loans issued by Group companies and investments in

consolidated subsidiaries backing policyholders’ liabilities.

P&C Operating Result consists of the following elements:

I) "Technical Result" is net of acquisition and administration costs

ii) "Investment Result" includes interests and dividends, interest expenses on operating debt and investment expenses

iii) “Other" includes other net operating items not considered in Technical Result and in Investment Result

“Operating ratio on Investments” is calculated as Operating result on the average of Investments at book

value

Total Comprehensive

Income

Change in shareholders’ equity during the period related to income and expenses recognized in profit or loss

or directly in shareholders’ equity resulting from transactions and events other than transactions with equity

Owners.

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 information's 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.”


IV. BACK UP

85


Operating RoE Operating Return on Equity indicates the return in terms of Operating Result on Group Shareholders’ Equity.

It is calculated according to the following ratio:

Total Operating Result adjusted to include:

- interest expenses on financial debt;

˗ income taxes based on a mid-term expected tax rate as assumed in 2015 Target;

- minorities interests.

Average Group Shareholders’ Equity at the beginning and at the end of each period of valuation, ex-cluding

gains and losses included in Other Comprehensive Income (OCI).

Other Comprehensive

Income (OCI)

Other Comprehensive Income includes net unrealized gains and losses on AFS investments, foreign currency

translation differences, net unrealized gains and losses on hedging derivatives.


IV. BACK UP

86 Definitions: Life NBV and VIF

IV. BACK UP

Annual Premium

Equivalent (APE)

is defined as new business annualised regular premiums plus 10% of single premiums

New Business Value

(NBV)

is the present value, at the point of sale, of the projected stream of after tax industrial profits expected to be

generated by the covered new business written in the period, taking into account the actual acquisition costs

incurred in the period 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 defined as the sum of quarterly NBV, calculated with beginning of period economic and operating

assumptions

New Business Margin

(NBM)

is defined as the New Business Value divided by Annual Premium Equivalent

Value In-Force (VIF)

Life & Health

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 risks

Value In-Force

Asset Gathering

Retail asset gathering business relates to the group's 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 fees 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 since 2008, the value arising in Banca Generali relating to insurance

business has been considered as a look through in the Life Value In-Force.


87


Definitions: Group EV

IV. BACK UP

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

Sheet (EBS)

I) General definition: Balance sheet statement based on one of those accounting approaches using market-

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

adjusted capital (RAC)

Within the EBS framework of the Generali Group, it is the capital necessary to absorb the maximum loss of

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 Value

88


What’s next

November 7, 2013 - 9M 2013 Results

November 27, 2013 - Investor Day

89 Investor Relations Team

Spencer Horgan (Tel.: +44-20-72656480)

Head of Investor Relations

Email: [email protected]

Stefano Burrino (Tel.: +39-040-671202)


Emanuele Marciante (Tel.: +39-040-671347)


Veronica Cherini (Tel.: +39-040-671488)


Rodolfo Svara (Tel.: +39-040-671823)


Martina Vono (Tel.: +39-040-671402)

IR Events


Assicurazioni Generali

P.za Duca degli Abruzzi 2

34132 Trieste, Italy

Fax: +39 040 671338

e-mail: [email protected]

www.generali.com


90 Disclaimer

Certain of the statements contained herein are statements of future expectations and

other forward-looking statements.

These expectations are based on management's current views and assumptions and

involve known and unknown risks and uncertainties.

The user of such information should recognise that actual results, performance or events

may differ materially from such expectations because they relate to future events and

circumstances which are beyond our control including, among other things, general

economic and sector conditions.

Neither Assicurazioni Generali S.p.A. nor any of its affiliates, directors, officers

employees or agents owe any duty of care towards any user of the information provided

herein nor any obligation to update any forward-looking information contained in this

document.

The manager charged with preparing the company’s financial reports, Alberto Minali,

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.


March 2006 August 1, 2013

Generali Group

2013 First-Half Results

Generali Group 2013 First Half Results

Economy & Finance

Transcript of Generali Group 2013 First Half Results