Generali Group 9M 2012 Results

November 9, 2012

Generali Group 9M 2012 Results

2

Assicurazioni Generali Group –

9M 2012 results

Agenda

I. Overview

II. Group financials

III. Final remarks

IV. Backup

Page 3

Page 5

4

Page 26

3Agenda

I. Overview9M 2012 results at a glance


9M 2012 results

Following the announcement of the sale of related stake, Migdal qualified as a non-current asset held for sale and discontinued operations.

Therefore, in this presentation, Migdal is excluded from all 9M12 figures, except as follows: net income; shareholders' equity; and the regulatory Solvency 1 margin. Except where specified, prior year

figures have not been adjusted.

Like for like comparisons are adjusted for the disposal of Migdal. See definition in the related section in the back-up.

4


9M 2012 results

Operating result (Euro m)

+9.4%(1)

9M11 9M12 9M11 9M12

9M 2012 results at a glanceI. OVERVIEW

Shareholders’ equity (Euro m)

+24.1%

FY11 9M12

Solvency I ratio (%)

FY11 9M12

(1) On like for like basis

1,133

825

+37.3%

Net result (Euro m)

+23%pts

5


9M 2012 results

Agenda


Profit & loss review

Life and P&C segment profitability

Balance sheet and solvency I

6


9M 2012 results

Revenue development by segmentII. GROUP FINANCIALS

(1) Including investment contracts (Euro 2,669 m in 9M12, Euro 2,307 m in 9M11)(2) On like for like basis

9M11 9M12 Historical

∆

Like for like

∆

Gross written premiums 51,327 50,945 -0.7% +1.8%

Life(1) 34,385 33,500 -2.6% +0.4%

P&C 16,942 17,444 +3.0% +4.7%

(Euro m)

9M129M11

+1.8%(2)

Gross written premiums (Euro m)

7


9M 2012 results

Consolidation adjustments

Totaloperating result

Financial services operating result

P&C

operating result

Operating holdingexpenses

Life operating result

2,196

1,158

320

-221

-161

3,292

1,978

1,204

279

-214

-147

3,100

9M12 total operating result (Euro m)

Operating result by segment

9M12

9M11

+9.8%

+9.4%

+17.1%

-4.3%

+3.8%

+16.5%

Like for like

II. GROUP FINANCIALS

8


9M 2012 results

Focus on non operating result

9M11 9M12 Like for like

Non operating investment income (724) (304) -58.8%

Non operating holding expenses (496) (496) +0.1%

Net other Non operating expenses

(244) (246) +0.9%

Total Non operating result

(1,464) (1,046) -29.2%

(1)


(724)

(304)

(32)

422 30

Non operating investment income (Euro m)

9M129M11

(Euro m) Net

realised gains

Net impair-

ments

Fair Value thr.

P&L

9M 12 48 (372) 21

9M 11 80 (794) (9)

Δ(2) -34.3% -53.0% n.m.

(1) Including interest expenses on financial debt

(Euro m)


9


9M 2012 results

9M11 9M12

Total operating result 3,100 3,292 +9.4%(1)

Non operating result (1,464) (1,046) -29.2%(1)

Consolidated result before taxes and minorities

1,637 2,246 +46.6%(1)

Income taxes (584) (869) +48.9%

Result for discontinued operations

0 (22) n.m.

Minorities (228) (222) -2.4%

Net result 825 1,133 +37.3%


Net income (Euro m)

+37.3%

9M129M11

From operating result to net result


(Euro m)

10


9M 2012 results

Agenda





11


9M 2012 results

Life business development


+0.4%(1)


9M11 9M12

(1) On like for like basis(2) Including liabilities related to investment contracts

Net technical reserves(2) (Euro bn)

9M12FY11R Traditional Unit Linked

Δ

301.5 3.2 4.7 309.4

+2.6%

Traditional Unit linked

253.6

47.9

256.8

52.6

316.6

FY11

15.1

Change in scope

258.3

58.3

Country 9M11 9M12

Italy 544 (535)

France 423 (1,949)

Germany 2,868 3,333

CEE 364 282

RoE 1,199 (611)

RoW 1,098 623

TOTAL 6,496 1,142

Net inflows by country (Euro m)

Italy: positive trend in 3Q12, although overall flows are negative due to the decision of not renewing low margin corporate policies during 1H12

France: negative trend linked to Group’s decision to reduce exposure to large premium contracts with low profitability

Germany: strong growth triggered by lower maturities and positive single premium development

12


9M 2012 results

Life profitability - Operating result

(Euro m) 9M11 9M12Like for like

Technical Margin 4,558 4,365 +0.1%

Investment Result 1,308 1,498 +26.2%

Expenses (3,888) (3,667) +0.1%

Operating Result 1,978 2,196 +16.5%

Increasing life operating profitability despite challenging financial environment

Life Operating Result by driver(1)


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

Life operating ratio on investments 0.62% 0.71%

13


9M 2012 results

Life investment strategy and yields(1)

Current return(1)

Fixed income

Equity RealEstate(2)

9M11 9M12 9M11 9M12 9M11 9M12

Euro m 7,213 7,006 530 372 515 544

% 3.3 3.2 3.0 2.9 5.4 5.6

Life segment own investments(1) (%)

Euro 249.3 bn Euro 268.6 bn

(1) For the definitions refer to the related section in the backup. Starting from 1Q12, assets and liabilities of Group’s Israeli companies have been classified as “held for sale”

and are therefore excluded. Comparative figures have been restated accordingly.(2) Real estate current returns are gross of related expenses


Relevant increase in the value of own investments

reflecting the improved situation in the financial markets

Further reduction of cross border exposure to peripheral

EU government bond, replaced with domestic

government bonds and corporate bonds

14


9M 2012 results

Life New Business Annual Premium EquivalentII. GROUP FINANCIALS

(Euro m) APE

9M11 9M12 Like for like

Italy 1,197 1,106 -7.6%

France 738 742 +0.5%

Germany 671 621 -7.4%

CEE 111 108 -3.0%

RoE 488 447 -8.6%

RoW 330 159 +1.4%

Total 3,535 3,184 -5.3%

9M129M11

-5.3%(1)

Annual Premium Equivalent (Euro m)


Despite the negative economic environment and the continuous focus on profitability and capital

efficiency, APE slowdown is marginal (-5.3%) and the weight of annual premiums still predominant (59% of total APE)

15


9M 2012 results

P&C gross written premiums

(Euro m) 9M11 9M12Like for like

Italy 4,975 4,963 -0.2%

France 3,181 3,231 +1.6%

Germany 2,500 2,687 +7.5%

CEE 1,728 1,820 +8.4%

RoE 3,424 3,542 +3.0%

RoW 1,134 1,202 +34.1%

Total 16,942 17,444 +4.7%




9M129M11

+4.7%(1)

Positive growth, especially in Commercial and Personal Non-Motor

France and CEE drive the growth in Commercial

Growth of Motor in Germany and Spain

16


9M 2012 results

P&C profitability - Operating result

(Euro m)9M11(2) 9M12 Like for like

Technical Result 492 490 -5.1%

Investment Result 862 798 -5.6%

Other (150) (130) -14.4%

Operating Result 1,204 1,158 -4.3%

P&C Operating Result by driver(1)

Tech.R

Inv.R

Other

Resilient P&C operating profitability despite nat cat development


(1)

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

9M11 split by driver has been changed (reclassification impact amounted to Euro 13.8 m): please refer to 9M 2012 management report for more details

P&C operating ratio on investments

3.38% 3.25%

17


9M 2012 results

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

9M129M11

Combined ratio (%)

Expense ratio

Loss ratio

0.0%pts.


Combined ratio by country

9M11 9M12

Italy 96.8% 97.6% +0.8%pts

France 98.8% 98.5% -0.2%pts

Germany 95.6% 94.9% -0.7%pts

CEE 88.7% 90.4% +1.7%pts

RoE 96.6% 96.3% -0.3%pts

RoW 102.6% 97.7% -4.9%pts

Total 96.6% 96.6% 0.0%pts

27.2

69.5

27.2

69.4

96.696.6

Loss ratio Expense ratio

18


FY 2009 results

5.9

21.2

0.0 +0.15.9

21.3

9M12 70.8 2.0 -3.3 69.5

9M11 71.6 0.6 -2.9 69.4


Loss ratio (%)

9M129M11

69.4 69.5-0.9 +1.3 -0.4

Currentyear(1)

NATCAT

Prioryears

9M129M11 Δ

Admin Δ

Acq.

Acq. costs

Adm. costs

27.2

Expense ratio (%)

Δ%pts

27.2

(1) Excluding natural catastrophes

+0.0%pts

+0.0%pts

Improved current year Loss Ratio due to

good quality of pricing and discipline in

underwriting

Severe Nat Cat impact mainly due to

the Northern Italy earthquake, although

properly mitigated by reinsurance

Confirmed positive prior years

development and prudent reserving

policy

P&C profitability - Net combined ratio (2/2)


9M 2012 results

19


9M 2012 results

P&C investment strategy and yields(1)

P&C segment own investments(1) (%)

Euro 34.4 bn Euro 36.3 bn

Current return(1)

Fixed income

Equity RealEstate(2)

9M11 9M12 9M11 9M12 9M11 9M12

Euro m 665 685 84 63 375 330

% 2.9 2.9 2.2 2.1 6.4 6.1


(1) For the definitions refer to the related section in the backup. Starting from 1Q12, assets and liabilities of Group’s Israeli companies have been classified as “held for sale”

and are therefore excluded. Comparative figures have been restated accordingly.(2) Real estate current returns are gross of related expenses

Slight increase of corporate bonds exposure with preference

for short term and high quality bonds

Maintained strong focus on asset diversification in the

corporate bonds segment

Continued reduction in the weight of equity and real estate

exposure, in line with the de-risking policy.

20


9M 2012 results

Financial segment

Operating result (Euro m)

Third party AUM(3) (Euro bn)

Net fees and commissions (Euro m)

9M129M11

+17.1%(1)

9M129M11

-1.3%(2)

9M12FY11

+10.6%(4) -3.0%pts(5)

9M129M11

Cost/income ratio (%)


(3) Including only third party AUM related to financial segment companies(4) On like for like basis

(1) On like for like basis (2) On like for like basis


21


9M 2012 results

Agenda





22


9M 2012 results

60 4

(75)

1,1332,918

(311)

IFRS Shareholders’ equity roll forward

Shareholders’ Equity FY11

Δ

in AFS Reserve

9M 2012Net Result

Δ

Currency Translation

Reserve

Δ

Cash Flow Hedge Res.

Dividend Other Shareholders’ Equity 9M12

+24.1%


(Euro m)

Change in AFS reserve (Euro m) 2,624

195

76399

(2,156)AFS Reserve

FY11Impact Equity Investments

Impact Bond Investments

Other AFS Reserve 9M12

15,486

19,215

23


9M 2012 results

Solvency I according to Italian regulation II. GROUP FINANCIALS

Required margin Available margin

9M12FY11

117% 140%

(Euro bn)

Main drivers of change

Available margin

Consolidated result:

Financial markets and other elements:

Cap on locally admitted unrealized gains on real estate:

Required Margin

+1.3

+3.1

+0.5

+0.5

24


9M 2012 results

III. Final Remarks

Agenda

25


9M 2012 results

Final remarksIII. FINAL REMARKS

Excellent underlying P&C performance excluding Nat Cat events

Robust Life profitability in a challenging market environment

Restored balance sheet & capital position

Outlook of 2012 Operating Result confirmed

26


9M 2012 results

IV. BackupP&L and Balance Sheet

Definitions

27


9M 2012 results


Definitions

289M12 Total gross written premiumsIV. BACK UP

(Euro m) Total gross written premiums Gross life written premiums(1) Gross P&C written premiums

CountryGWP

YoY% increase

Weight on total GWP GWP

YoY% increase

Weight on total GWP GWP

YoY% increase

Weight on total GWP

(2) (2) (2)

Italy 13,628 - 1.7% 26.7% 8,665 - 2.5% 25.8% 4,963 - 0.2% 28.4%

France 10,537 + 0.2% 20.6% 7,306 - 0.4% 21.7% 3,231 + 1.6% 18.5%

Germany 12,801 + 3.7% 25.1% 10,114 + 2.7% 30.1% 2,687 + 7.5% 15.4%

CEE 3,065 + 5.5% 6.0% 1,245 + 1.6% 3.7% 1,820 + 8.4% 10.4%

RoE 7,661 + 1.0% 15.0% 4,120 + 0.7% 12.3% 3,542 + 3.0% 20.3%

Of which:

Spain 1,809 - 0.7% 3.6% 739 - 4.2% 2.2% 1,070 + 1.9% 6.1%

Austria 1,951 - 2.2% 3.8% 856 - 7.5% 2.5% 1,095 + 2.4% 6.3%

Switzerland 1,465 + 4.0% 2.9% 827 + 5.0% 2.5% 639 + 2.7% 3.7%

RoW 3,253 + 16.5% 6.4% 2,050 + 7.8% 6.1% 1,202 + 34.1% 6.9%

Total 50,945 + 1.8% 100.0% 33,500 + 0.4% 100.0% 17,444 + 4.7% 100.0%(1)

Including investment contracts(2)

On like for like basis


9M 2012 results

299M12 Life premiums by country and business line(1)

(Euro m)Savings and

pension ProtectionUnit/Index

linked Total

GDPYoY %

increase(2) GDPYoY %



increase(2)

Italy 7,867 - 2.6% 172 + 11.0% 388 -

11.6% 8,427 - 2.8%

France 5,465 + 7.9% 1,043 + 0.6% 622 -

42.1% 7,130 - 0.6%

Germany 4,627 + 4.7% 3,030 + 1.9% 2,457 + 0.0% 10,114 + 2.7%

CEE 758 + 2.3% 181 + 10.7% 306 - 4.9% 1,245 + 1.6%

RoE 1,568 - 3.6% 651 + 12.1% 1,883 - 2.0% 4,102 - 0.6%

Of which:

Spain 584 - 4.0% 149 - 3.1% 6 - 37.6% 739 - 4.2%

Austria 463 - 10.7% 188 + 2.4% 192 - 9.8% 843 - 7.8%

Switzerland 140 + 24.1% 96 + 14.5% 591 + 0.0% 827 + 5.0%

RoW 876 + 4.1% 495 + 17.0% 33 + 2.4% 1,404 + 8.3%

Total Life gross direct premiums

21,161 + 1.9% 5,572 + 4.4% 5,689 - 9.0% 32,422 + 0.2%

IV. BACK UP


9M 2012 results

(1)

Including investment contracts(2)


309M12 P&C premiums by country and business line

(Euro m) Motor(1) Personal CommercialAccident/

Health Total

GDPYoY %



increase(2) GDP

YoY % increase(2

) GDPYoY %

increase(2)

Italy 2,376 - 1.0% 592 + 2.5% 1,092 - 2.4% 813 - 0.7% 4,874 - 0.9%

France 853 - 2.4% 1,140 + 3.9% 665 + 4.4% 370 + 1.9% 3,027 + 1.9%

Germany 1,066 + 7.7% 982 + 5.2% 244 + 8.6% 390 + 11.8% 2,682 + 7.4%

CEE 705 - 5.9% 264 + 2.7% 475 + 12.2% 340 + 60.1% 1,784 + 8.4%

RoE 1,306 + 3.5% 792 + 4.0% 769 - 2.0% 553 + 5.2% 3,420 + 2.6%

Of which:

Spain 291 + 8.7% 310 + 8.2% 302 - 9.5% 139 + 1.4% 1,042 + 1.6%

Austria 426 + 1.3% 246 + 3.0% 296 + 3.6% 114 + 2.5% 1,081 + 2.4%

Switzerland 329 + 2.8% 152 - 1.3% 3 - 8.3% 152 + 6.2% 636 + 2.5%

RoW 678 + 24.2% 15 + 15.6% 336 + 41.5% 100 + 60.1% 1,129 + 31.5%

Total P&C gross direct premiums

6,984 + 2.4% 3,785 + 4.0% 3,582 + 4.6% 2,566 + 10.1 16,917 + 4.3%

IV. BACK UP

(1)

Including fleets(2)



9M 2012 results

31


9M 2012 results

Life new business: APE

(Euro m) APE Annual Premiums Single Premiums

9M11 9M12Historical Like for

like 9M11 9M12Historical Like for

like 9M11 9M12Historical Like for

like

Italy 1,197 1,106 -7.6% -7.6% 795 730 -8.2% -8.2% 4,023 3,765 -6.4% -6.4%

France 738 742 +0.5% +0.5% 215 225 +4.5% +4.5% 5,228 5,171 -1.1% -1.1%

Germany 671 621 -7.4% -7.4% 487 409 -15.9% -15.9% 1,839 2,119 +15.2% +15.2%

CEE 111 108 -2.3% -3.0% 94 100 +6.5% +6.3% 165 78 -52.4% -54.1%

RoE 488 447 -8.4% -8.6% 326 298 -8.7% -8.9% 1,622 1,494 -7.9% -7.9%

Spain 89 79 -10.5% -10.5% 39 33 -16.0% -16.0% 493 463 -6.2% -6.2%

Austria 85 73 -14.7% -14.7% 65 57 -13.3% -13.3% 198 160 -19.3% -19.3%

Switzerland 58 70 +20.4% +18.9% 54 63 +16.4% +15.0% 44 75 +69.7% +67.6%

RoW 330 159 -51.8% +1.4% 266 131 -50.5% +4.4% 648 279 -56.9% -10.8%

Total 3,535 3,184 -9.9% -5.3% 2,183 1,893 -13.3% -7.4% 13,524 12,906 -4.6% -2.2%

IV. BACK UP

32


9M 2012 results

Life net inflows by country IV. BACK UP

Country 9M11 9M12 Like for like Δ

Italy 544 (535) n.m.

France 423 (1,949) n.m.

Germany 2,868 3,333 + 16.2%

CEE 364 282 -

20.2%

RoE 1,199 (611) n.m.

Of which:

Spain (146) (1,709) n.m.

Austria 183 115 - 37.4%

Switzerland 357 476 + 30.1%

RoW 1,098 623 + 12.6%

TOTAL 6,496 1,142 - 81.1%

33


9M 2012 results

Loss ratio

Expense ratio

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

Total - Expense ratio (%)

69.569.4

27.2 27.2

16.3 16.4

11.3 11.2

9M129M11

9M129M11

9M129M11

96.6% 96.6%

RatiosIV. BACK UP

34


9M 2012 results

Ratios by country

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

P&C Loss ratio

9M12 77.4 71.8 66.5 52.6 67.8 65.9 69.1 70.0 59.3 69.5

9M11 75.7 72.0 66.3 54.9 68.5 67.0 68.5 70.7 64.9 69.4

P&C Expense ratio

9M12 20.2 26.7 28.4 37.8 28.5 28.1 27.5 26.0 38.5 27.2

9M11 21.1 26.8 29.4 33.8 28.1 26.9 27.4 25.8 37.8 27.2

P&C Combined ratio

9M12 97.6 98.5 94.9 90.4 96.3 94.0 96.6 96.0 97.7 96.6

9M11 96.8 98.8 95.6 88.7 96.6 94.0 95.8 96.4 102.6 96.6

Life expense ratio by country

9M12 10.3 9.0 11.5 19.9 12.8 4.8 14.6 18.8 15.1 11.2

9M11 10.2 8.9 12.0 19.1 12.4 4.4 13.1 20.3 15.5 11.3

IV. BACK UP

35


9M 2012 results

Combined ratio reconciliation

9M11 9M12A Net earned premiums (net of consolidation adjustments) 15,367 15,763

B Consolidated net claims 10,668 10,949

Consolidated acquisition costs 3,260 3,358

Consolidated administration costs 959 983

Non insurance activity related administration costs(1) 46 56

Insurance activity related consolidated administration costs 913 927

C Total acquisition and administration costs 4,173 4,284

B/A Loss ratio 69.4 69.5

C/A Expense ratio 27.2 27.2

(B+C)/A Combined ratio 96.6 96.6

D Other technical items 34.6 40.2

A-B-C-D Technical result 492.2 489.8(1) Administration expenses related to service companies, real estate and other companies not belonging to P&C segment

(Euro m)

IV. BACK UP

36


9M 2012 results

Focus on operating result

9M11 9M12Like for

like ∆

Italy 1,325 1,432 +8.1%

France 401 529 +32.2%

Germany 471 463 -1.8%

CEE 351 349 -0.6%

RoE 659 700 +6.3%

RoW 254 201 +23.7%

Operating result(1) 3,461 3,674 +9.1%

Op. holding expenses (214) (221) +3.8%

Consolidation Adj. (147) (161) +9.8%

Total operating result

3,100 3,292 +9.4%

Operating result by country(1) (Euro m)

991

348 236 136335

150

275

181187

195

267

53

166

039

18

98

-2Italy 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

IV. BACK UP

37


9M 2012 results

Operating result by country

P&C operating result by market (Euro m)Life operating result by market (Euro m)

9M11 9M12 Like for like ∆

Italy 933 991 +6.2%

France 208 348 +67.3%

Germany 238 236 -0.8%

CEE 110 136 +23.9%

RoE 300 335 +11.6%

Of which:

Spain 80 88 +10.3%

Austria 52 51 -3.1%

Switzerland 101 90 -11.1%

RoW 188 150 +56.9%

Total 1,978 2,196 +16.5%

9M11 9M12 Like for like ∆

Italy 297 275 -7.3%

France 192 181 -5.8%

Germany 194 187 -3.7%

CEE 224 195 -12.8%

RoE 259 267 +3.2%

Of which:

Spain 112 114 +1.8%

Austria 73 67 -9.4%

Switzerland 35 38 +8.2%

RoW 38 53 +18.9%

Total 1,204 1,158 -4.3%

IV. BACK UP

38


9M 2012 results

Reclassified P&L account(Euro m) Total

9M11 9M12

Operating result 3,100 3,292Net earned premiums 46,692 45,847Net insurance benefits and claims (39,040) (46,972)Acquisition and administration costs (8,609) (8,487)Net fee and commission income and net income from financial service activities 693 590Operating income from other financial instruments 7,907 8,325Operating income from financial instruments at fair value through profit or loss (4,105) 4,463

Of which net income from fin. assets and liabilities where the risk is borne by the policyholders (4,147) 3,409

Operating holding expenses (214) (221)Net other operating expenses (224) (253)

Non-operating result (1,463) (1,046)Non-operating income from other financial instruments (714) (324)Non-operating income from financial instruments at fair value through profit or loss (9) 20Non-operating holding expenses (496) (496)

Interest expenses on financial debt (484) (493)

Other non-operating holding expenses (12) (3)

Net other non-operating expenses (244) (246)Earnings before taxes 1,637 2,246Income taxes (584) (869)Result from discontinued operations 0 (22)Consolidated result of the period 1,053 1,355Result of the period attributable to minority interests (228) (222)Result of the period 825 1,133

IV. BACK UP

39


9M 2012 results

(Euro m) Life Non life Financial(1)Unallocated holding

expensesConsolidation

adjustments Total

Operating result 1,978 1,204 279 (214) (147) 3,100

Net earned premiums 31,324 15,367 - - 0 46,692

Net insurance benefits and claims (28,357) (10,668) - - (15) (39,040)

of which var. of provisions related to unit linked business 2,997 - - - - 2,997

Acquisition and administration costs (3,732) (4,187) (691) - - (8,609)

Net fee and commission income and net income from financial service activities 126 - 657 - (90) 693

Operating income from other fin, Instruments 6,862 837 237 - (30) 7,907

Operating income from fin, Instruments at fair value through profit or loss (4,222) 24 93 - - (4,105)

of which net income from fin. assets and liabilities where the risk is borne by the policyholders (4,147) - - - - (4,147)

Operating holding expenses - - - (214) - (214)

Net other operating expenses (24) (171) (17) - (12) (224)

Non-operating result (482) (517) 35 (496) (3) (1,463)

Non-operating income from other fin. instr. (390) (400) 76 - - (714)

Non-operating income from fin. instr.at fair value through profit or loss - (9) - - - (9)

Non-operating holding expenses - - - (496) - (496)

Net other non-operating expenses (92) (107) (42) - (3) (244)

Earnings before taxes 1,496 687 314 (710) (150) 1,637

Reclassified P&L account by segment – 9M 2011IV. BACK UP

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

40


9M 2012 results

(Euro m) Life Non life Financial(1)Unallocated holding

expensesConsolidation

adjustments Total

Operating result 2,196 1,158 320 (221) (161) 3,292

Net earned premiums 30,084 15,763 - - 0 45,847

Net insurance benefits and claims (36,023) (10,949) - - (1) (46,972)

of which var. of provisions related to unit linked business (3,279) - - - - (3,279)

Acquisition and administration costs (3,555) (4,295) (637) - - (8,487)

Net fee and commission income and net income from financial service activities 70 - 621 - (101) 590

Operating income from other fin. Instruments 7,314 764 297 - (51) 8,325

Operating income from fin. Instruments at fair value through profit or loss 4,322 35 106 - - 4,463

of which net income from fin.assets and liabilities where the risk is borne by the policyholders 3,409 - - - - 3,409

Operating holding expenses - - - (221) - (221)

Net other operating expenses (17) (160) (67) - (9) (253)

Non-operating result (341) (173) (26) (496) (11) (1,046)

Non-operating income from other fin.instr. (227) (91) (5) - (2) (324)

Non-operating income from fin. instr.at fair value through profit or loss - 20 - - - 20

Non-operating holding expenses - - - (496) - (496)

Net other non-operating expenses (114) (102) (21) - (9) (246)

Earnings before taxes 1,855 986 294 (717) (172) 2,246

Reclassified P&L account by segment – 9M 2012IV. BACK UP

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

41


9M 2012 results

(Euro m) Life P&C Financial Total

Net impairments 9M11 9M12 9M11 9M12 9M11 9M12 9M11 9M12

Equity instruments 565 461 167 99 1 3 733 563

Fixed income 1,690 163 196 16 3 6 1,889 184

Real estate 22 36 (1) 5 0 0 21 41

Other investments(2) 319 8 133 91 8 7 459 106

Total net impairments 2,596 667 495 212 12 16 3,103 894

Of which

Operating net impairments

2,301 509 0 0 8 13 2,308 522

Non operating net impairments

295 158 495 212 5 3 794 372

Focus on impairments(1)

(1)

Net of reverse impairments(2)

Including subsidiaries and associated companies

IV. BACK UP

42


9M 2012 results

(Euro m) Life P&C Financial Total

9M11 9M12 9M11 9M12 9M11 9M12 9M11 9M12

Net realized gains on Equities 397 124 14 (20) 1 1 440 106

Realised gains 1,018 443 136 82 2 1 1,183 527

Realised losses (621) (319) (122) (102) (1) 0 (744) (421)

Net realized gains on Fixed Income 790 238 21 43 2 (1) 813 280

Realised gains 1,165 2,308 80 173 4 6 1,249 2,487

Realised losses (375) (2,070) (59) (130) (2) (7) (436) (2,207)

Net realized gains on Real Estate 73 70 73 72 0 0 146 142

Realised gains 82 76 73 76 0 0 155 153

Realised losses (9) (7) 0 (4) 0 0 (9) (11)

Net realized gains on Other(2) 110 11 (14) 26 81 (2) 177 34

Realised gains 142 11 1 26 81 1 224 38

Realised losses (32) 0 (15) 0 0 (3) (47) (3)

Total net realized gains 1,370 443 94 121 84 (2) 1,576 561

Operating net realized gains 1,465 512 0 0 3 0 1,495 513

Non operating net realized gains (95) (69) 94 121 81 (2) 80 48

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

43

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 3Q12/ 3Q11

Life premiums(1) 12,340 11,503 10,543 12,009 12,815 10,415 10,271 +0.5%(2)

P&C premiums 6,792 5,219 4,931 5,823 6,999 5,419 5,027 +3.4%(2)

Total premiums 19,131 16,722 15,474 17,832 19,814 15,834 15,298 +1.5%(2)

Life net inflows 2,819 1,999 1,678 (651) 760 (1,138) 1,521 +2.1%(2)

Combined ratio % 96.1% 96.9% 96.7% 96.4% 95.4% 98.8% 95.7%(3) -1.0 pts.

Life operating result 881 782 315 564 819 832 545 +92.1%(2)

P&C operating result 393 406 405 357 411 344 404 -2.0%(2)

Financial operating result 115 96 68 63 126 85 109 +62.4%(2)

Operating holding expenses and cons. adj.

(133) (132) (96) (155) (126) (148) (109) +14.0%(2)

Total operating result 1,256 1,153 692 827 1,230 1,113 949 +43.1%(2)

Net result 616 190 20 31 567 274 291 n.m.

IV. BACK UP

Focus on 3Q12 results

(1) Including investment contracts(2) On like for like basis(3) 94.8% excluding CAT

(Euro m)


9M 2012 results

44Consolidated balance sheet

(1) Including reinsurance amounts of technical reserve, deferred

tax assets, deferred acquisition costs and other assets

(Euro bn) FY11 9M12

Intangible assets 10.4 9.9

Investments

Cash

346.7

25.6

360.0

23.9

Other credits 11.3 12.5

Tangible assets 4.9 4.9

Other assets (1) 24.2 38.2

Total Assets 423.1 449.4

(Euro bn) FY11 9M12

Shareholders’

Equity (Group share) 15.5 19.2

Minority interests 2.6 2.9

Shareholders’ Equity 18.1 22.1

Operating debt 46.9 50.8

Financial debt 12.2 12.2

Technical reserves 325.0 328.2

Payables and other provisions 9.0 9.6

Other liabilities 11.8 26.5

Total Liabilities and Shareholders’ Equity 423.1 449.4

IV. BACK UP


9M 2012 results

45


9M 2012 results

9M12 Assets Under Management

Total Euro 474.4 bn

Fixed income instruments 79.7%

Other 3.8%

Real Estate

4.6%

Equity

4.8%

Available for sale 60.5%

Loans

21.7%

Real Estate

3.9%

Group participations

0.6%

Held to maturity

2.4%Fin. Instr. at fair

value thr. P&L

3.9%

Unit Linked

Third parties AUM

“Own Investments”(1)

IV. BACK UP

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

Cash & equival. 7.1%

Cash & equival. 7.1%

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9M 2012 results

Investment yields(1)

Bonds and Loans Equities Investment properties

Other Total

% return 9M11 9M12 9M11 9M12 9M11 9M12 9M11 9M12 9M11 9M12

LIFE

Current 3.3% 3.2% 3.0% 2.9% 5.4% 5.6% 2.0% 1.4% 3.3% 3.1%Total P&L 2.7% 3.4% 0.7% 1.6% 6.0% 5.9% 1.5% 2.0% 2.7% 3.3%Comprehensive 1.4% 9.6% -14.4% 7.7% 6.1% 5.6% 1.5% 2.0% 0.5% 8.8%

NON LIFE

Current 2.9% 2.9% 2.2% 2.1% 6.4% 6.1% 2.1% 1.4% 3.3% 3.2%Total P&L 2.1% 3.1% -1.8% -1.8% 7.7% 7.4% 2.1% 1.8% 2.5% 3.1%Comprehensive 1.4% 7.6% -9.5% 4.0% 7.7% 7.3% 2.1% 1.7% 1.3% 6.5%

TOTAL

Current 3.2% 3.1% 3.2% 2.7% 5.7% 5.7% 1.5% 1.0% 3.2% 3.0%Total P&L 2.6% 3.3% 0.3% 1.1% 6.6% 6.3% 1.6% 1.4% 2.6% 3.1%Comprehensive 1.4% 9.1% -13.2% 7.0% 6.7% 6.1% 1.6% 1.4% 0.7% 8.0%

(1) For the definitions refer to the related section within the backup. Starting from 9M 2011 Israeli participating portfolio has been reclassified in unit-linked business. Comparative numbers have been restated accordingly

IV. BACK UP

473Q12 IFRS Shareholders’ equity roll forward

19,215

17,359

15,486(11)(14)

2911,584

+10.7%

IFRS Shareholders’ equity roll forward (Euro m)

Shareholders’

Equity FY11

Shareholders‘

Equity 1H12

Δ

in AFS Reserve

3Q 2012Net Result

Δ

Currency Translation

Reserve

Δ

Cash Flow Hedge

Reserve

Other Shareholders’

Equity 9M12

IV. BACK UP

Change in AFS reserve (Euro m)

641,308 763

(821)

211

AFS Reserve 1H12

Impact BondInvestments

Impact Equity Investments

Other AFS Reserve 9M12


9M 2012 results

6

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9M 2012 results

Solvency I according to Italian regulation

Required margin Available margin

9M121H12

130% 140%

(Euro bn)

Main drivers of change

Available margin

Consolidated result:

Financial markets and other elements:

Required Margin

+0.3

+1.9

+0.2

IV. BACK UP

49Total comprehensive income(1)

(Euro m)

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

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

+4,000 m

-1,00 m

IV. BACK UP

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


9M 2012 results

50AFS reserve breakdownIV. BACK UP


9M 2012 results

(Euro m) FY11 1H12 9M12

Fixed income instruments (1,780) (464) 844

Government (1,216) (445) 377

Corporate (564) (20) 467

Equity (382) (398) (187)

Investment funds and other 7 42 106

TOTAL (2,156) (821) 763

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9M 2012 results


Definitions

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9M 2012 results

Definitions: P&L and balance sheet (1/2)

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

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 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

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9M 2012 results

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.”

Definitions: P&L and balance sheet (2/2)

IV. BACK UP

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9M 2012 results

Investor Relations Team

Salvatore Colotti (Tel.: +39-040-671317)Head of Investor Relations & Head of Life Technical DepartmentEmail: [email protected]

Stefano Burrino (Tel.: +39-040-671202)Email: [email protected]

Emanuele Marciante (Tel.: +39-040-671347)Email: [email protected]

Veronica Cherini (Tel.: +39-040-671488)Email: [email protected]

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

Email: [email protected]

Marta Porczynska (Tel.: +39-040-671402)IR EventsEmail: [email protected]

Assicurazioni Generali P.za Duca degli Abruzzi 2

34132 Trieste, Italy

Fax: +39 040 671338 e-mail: [email protected]

www.generali.com

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9M 2012 results

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, 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.

November 9, 2012

Generali Group 9M 2012 Results

Generali Group 9M 2012 Results

Economy & Finance

Transcript of Generali Group 9M 2012 Results