Generali Grup 9M 2010 Results

Rome, November 11, 2010

Generali Group 9M 2010 Results

Assicurazioni Generali Group – 9M 2010 results

2Agenda

I. Overview

II. Group financials

III. Final remarks

IV. Backup


3Agenda

I. Overview9M 2010 results at a glance


4

Life net inflows (Euro m) Operating result

(Euro m)

9M 2010 results

at a glance

2,862 3,189

+11.4%

I. OVERVIEW

9M09 9M10

8941,313

+46.8%

9M09 9M10

Net result (Euro m)

16,65218,201

+9.3%

FY09 9M10

Shareholders’

equity (Euro m)

11,090 12,622

+12.7%(1)

9M09 9M10

(1) On like for like basis


5Agenda

II. Group financialsProfit & loss review

Shareholders’

equity

Life & P&C profitability


6Revenue

development

by

segmentII. GROUP FINANCIALS

(1) Including investment contracts for Euro 3,750.7 m in 9M10(2) APE amounts are calculated with end of period perimeter and exchange rates –

like for like variations neutralise

impacts of variations of perimeter and exchange rates

(Euro m) 9M10∆

historical 9M10/9M09

∆

like for like 9M10/9M09 3Q10

∆

like for like 3Q10/3Q09

Gross written premiums 53,829 +6.8% +5.8% 15,700 -1.6%

Life(1) 37,272 +8.9% +8.0% 10,921 -3.0%

P&C 16,557 +2.4% +1.0% 4,780 +1.7%

Life annual premium equivalent(2) 3,827 +13.4% +6.1% 1,056 -4.2%


7

Consolidation adjustments

Consolidatedoperating result

Financial services operating result

P&C

operating result

Operating holdingexpenses

Life operating result

2,302

939

277

-204

-125

3,189

1,840

1,071

342

-193

-198

2,862

734

276

74

-66

-42

976

571

361

120

-66

-57

928

+26.2%

+5.1%

-37.8%

-23.6%

+0.3%

+28.6%

3Q10

3Q09

9M10 operating result (Euro m)

Operating result by segmentII. GROUP FINANCIALS

9M10

9M09

3Q10 operating result (Euro m)3Q10/3Q09

+37.0%

+11.4%

-19.0%

-12.3%

-5.6%

+25.1%

9M10/9M09


8Focus on operating result

(Euro m)

9M09 9M10 ∆

Italy 947 1,338 +41.2%

France 509 513 +1.0%

Germany 411 540 +31.3%

CEE 516 269 -48.0%

RoE 699 579 -17.1%

RoW 171 279 +63.1%

Operating

result(1) 3,253 3,518 +8.1%

Op. holding expenses (193) (204) -5.6%

Consolidation Adj. (198) (125) +37.0%

Total operating

result

2,862 3,189 +11.4%

II. GROUP FINANCIALS

Operating result by country(1)

1,004

362 262 136335 202

240

145 239

114

160

41

94

7 39

18

83

36

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


9From operating result to net result

(Euro m) 9M09 9M10

Total operating result 2,862 3,189 +11.4%

Non operating investment income (570) (152)

Income and exp. from fin. assets at FV thr. P&L (203) (19)

Income and exp. from other financial instruments (367) (132)

Non-operating holding expenses (539) (561)

Net other non operating expenses (230) (368)

Total non operating result (1,340) (1,081) +19.3%

Consolidated result of the period before taxes and minority interests

1,522 2,108 +38.5%

Income taxes (337) (654)

Result from discontinued operations (Intesa Vita) 86 51

Minority interests (377) (192)

Net result of the period 894 1,313 +46.8%


(1) Including interest expenses on financial debt

(1)


10

16,65218,201

(3)398

1,313 487

(102)(544)

IFRS Shareholders’

equity roll forward

Shareholders’

Equity FY09

Δ

in AFS Reserve

9M 2010Net Result

Δ

Currency

Translation

Reserve

Δ

Cash Flow Hedge Reserve

Dividend Other Shareholders’

Equity 9M10

+9.3%


(Euro m)

Change in AFS reserve (Euro m)

7307 1,128

(203)

594

AFS Reserve FY09

Impact Equity Investments

Impact Bond Investments

Other AFS Reserve 9M10


11

16.9

23.9

16.6

24.8

Solvency

I updateII. GROUP FINANCIALS

Required margin Available margin

FY09

142%(1)

(Euro bn)

9M10

150%(1)

Solvency I ratio

(1) Including off balance sheet unrealized gains on real estate,

8%pts of which subject to authorities’

authorization


12

327.8

47.6

309.5

42.5

95.983.6

Investments(1)

435.6

Fixed

income

instruments

(3)

79.9%

Other

(4)

4.1%

Real Estate

(5)

4.6%

Equity

8.4%

Unit

Linked

Third

parties

AUM

“Own

Investments”

(2)

FY09 9M10

(Euro bn)

471.3

+8.2%


(1) FY09 own investments restated in order to include cash and cash equivalents. The related weights of asset classes are: fixed

income instruments 78.7%, real estate 4.7%, equity 9.0%, cash & cash equivalents 3.4%, other 4.2%

(2) “Own Investments”

exclude real estate for own use. With this asset class “Own Investments”

would amount to €

331.1 bn, compared to €

312.8 bn

at FY09(3) Including

mortgage

loans, policy loans, deposits

under reinsurance

business accepted, term

deposits

with

credit

institutions

and other

financial

investments, other

loans(4) Including

investments

in subsidiaries, associated

companies

and JVs, derivatives, receivables

from

banks

or customers

(5) Including real estate mutual funds

Cash & equival. 3.0%


13

Assicurazioni

Generali Group –

9M 2010 results

Life New Business Annual Premium Equivalent

Solid growth of APE (+6.1%): significant progression of Unit Linked business (+16.9%) coupled with positive development of traditional products (+2.9%)


(Euro m) APE

9M2009

9M2010

Historical Like for like

Italy 881 1,177 +33.6% +12.0%

France 984 899 -8.6% -8.6%

Germany 730 729 -0.2% -1.2%

CEE 117 122 +3.9% +0.9%

RoE 408 594 +45.6% +38.4%

RoW 256 307 +20.2% +7.9%

Total 3,375 3,827 +13.4% +6.1%


14Strong growth in life business

9M 2010 258.1 47.7

FY 2009 243.8 42.6

Δ% +5.9% +12.1%


Life net technical reserves(2)

(Euro bn)Life gross written premiums

(Euro m)

37,27234,237

9M109M09

Life net inflows by country(1)

(Euro m)

+8.0%(3)

9M10FY09

286.4 14.3 5.1

Traditional Unit

Linked

Δ

305.8

Country 9M09 9M10 Δ(3)

Italy 98 1,543 +1468.9%

France 5,338 3,518 -34.1%

Germany 3,149 3,760 +19.4%

CEE 492 297 -41.2%

TOTAL 11,090 12,622 +12.7%

+6.8%

(2) Including

investment contracts

(3) On like

for

like

basis

(1) Net inflow: premiums

written

in the period

less

surrenders

and maturity. It

does

not

include revaluation

of

mathematical

reserves

1,8402,302

+25.1%

9M09 9M10

Life operating result

(Euro m)


15P&C Gross Written PremiumsII. GROUP FINANCIALS

(Euro m) 9M09 9M10Historical Like

for

like(1)

Italy 4,925 4,969 +0.9% +0.9%

France 2,953 3,077 +4.2% +4.2%

Germany 2,490 2,468 -0.9% -0.9%

CEE 1,632 1,712 +4.9% -2.6%

RoE 3,308 3,330 +0.7% -0.5%

RoW 868 1,002 +15.5% +8.6%

Total 16,175 16,557 +2.4% +1.0%(1)

Calculated considering equivalent exchange rates and scope of consolidation

Light signs of P&C premium recovery, despite the challenging environment

Growth sustained by Non-Motor retail and Accident/Health

Motor recovering in Italy and France

Commercial still under pressure in several countries


16P&C profitability

(1/2)

0.20.7

9M109M09

Combined ratio (%)

Expense ratio

Loss ratio

+0.9%pts.


Combined ratio by country

(%)

9M09 9M10

Italy 101.8 98.9 -2.9%pts

France 99.0 100.3 +1.3%pts

Germany 95.2 95.7 +0.5%pts

CEE 87.7 95.2(*) +7.5%pts

RoE 96.1 99.9 +3.8%pts

RoW 101.8 100.9 -0.9%pts

Total 97.9 98.8 +0.9%pts

27.3

71.5

26.6

71.3

98.897.9

Loss

ratio Expense

ratio

(1)

Excluding nat

cat, the ratio would be 87.6%


17

6.0

20.4

-0.2 0.96.2

21.3

P&C profitability (2/2)

9M10 2.1 69.4 71.5

9M09 1.7 69.6 71.3


Loss ratio (%)

9M109M09

71.3 71.50.4

(0.2)

NatCAT

Loss ratio

w/o NAT CAT

9M109M09 Δ

Admin Δ

Acq.

Acq. costs

Adm. costs

27.3Expense ratio (%)

Δ%pts

Reserving ratio

(%)

-1.0%pts

26.6

201.7% 200.7%

1,071 939

-12.3%

9M09 9M10

P&C operating result

(Euro m)

9M09 9M10


18

III. Final Remarks

Agenda


19Final remarksIII. FINAL REMARKS

Robust life performance both in terms of volumes and profitability

Non life business in progress but hit by natural catastrophes

Confirmed focus on cost efficiency improvement

2010 total operating profit outlook (range: Euro 3.6 –

4.2 bn) confirmed


20Agenda

IV. Backup


219M10 total gross written premiums

(Euro m) Total Gross Written Premiums

Country GWP ∆%(2) % weight

Italy 14,482 +10.0% 26.9%

France 11,769 -9.0% 21.9%

Germany 12,423 +9.4% 23.1%

Eastern Europe 2,937 -2.2% 5.5%

RoE 8,432 +16.2% 15.7%

Of which:

Spain 1,733 -13.2% 3.2%

Austria 1,975 +4.0% 3.7%

Switzerland 1,208 +2.2% 2.2%

RoW 3,786 +19.8% 7.0%

Total 53,829 +5.8% 100.0%

Gross Life Written Premiums(1)

GWP ∆%(2) % weight

9,513 +15.4% 17.7%

8,692 -12.9% 16.1%

9,955 +12.3% 18.5%

1,225 -1.5% 2.3%

5,102 +30.6% 9.5%

Of which:

675 -22.6% 1.3%

894 +8.8% 1.7%

682 +1.2% 1.3%

2,785 +24.4% 5.2%

37,272 +8.0% 69.2%

Gross P&C Written Premiums

GWP ∆%(2) % weight

4,969 +0.9% 9.2%

3,077 +4.2% 5.7%

2,468 -0.9% 4.6%

1,712 -2.6% 3.2%

3,330 -0.5% 6.2%

Of which:

1,058 -5.9% 2.0%

1,081 +0.4% 2.0%

526 +3.5% 1.0%

1,002 +8.6% 1.9%

16,557 +1.0% 30.8%

(2) Calculated considering equivalent exchange rates and scope of consolidation(1) Including investment contracts

IV. BACK UP


22Life Premiums by Country & Business Line

Life 9M10(Euro m)

TraditionalUnit/index

linked Health Group Total

Italy 86.4% 1.8% 0.0% 11.8% 9,324

France 71.2% 15.3% 7.2% 6.3% 8,538

Germany 50.2% 24.0% 17.8% 7.9% 9,955

CEE 66.3% 22.0% 10.5% 1.2% 1,225

RoE 26.5% 58.1% 3.8% 11.5% 5,090

Of which:

Spain 57.3% 1.8% 0.0% 40.9% 675

Austria 55.5% 25.5% 19.0% 0.0% 888

Switzerland 20.8% 78.1% 0.9% 0.2% 682

RoW 35.8% 0.6% 10.2% 53.5% 2,244

Total life gross direct premiums

60.8% 19.5% 8.1% 11.6% 36,377

IV. BACK UP


23P&C Premiums by Country & Business Line

P&C 9M10(Euro m)

Motor(1)Accident/

Health Personal Commercial Total

Italy 47.5% 17.5% 11.5% 23.5% 4,913

France 29.6% 12.5% 36.1% 21.7% 2,888

Germany 39.4% 14.1% 37.4% 9.1% 2,465

CEE 51.2% 12.8% 14.7% 21.3% 1,685

RoE 37.1% 15.2% 21.4% 26.3% 3,214

Of which:

Spain 26.7% 12.7% 25.9% 34.7% 1,032

Austria 40.0% 10.7% 19.8% 29.5% 1,056

Switzerland 51.5% 23.5% 24.6% 0.4% 525

RoW 60.1% 6.2% 3.9% 29.8% 974

Total P&C gross direct premiums

42.1% 14.5% 21.7% 21.7% 16,139

(1) Including

fleets

IV. BACK UP


24

Assicurazioni

Generali Group –

9M 2010 results

Life & Health: New Business APE

(Euro m) New Business APE9M09 9M10 ∆

historical ∆

like

for

like

Italy 881 1,177 +33.6% +12.0%

France 984 899 -8.6% -8.6%

Germany 730 729 -0.2% -1.2%

CEE 117 122 +3.9% +0.9%

RoE 408 594 +45.6% +38.4%

of which Spain 86 84 -2.0% -2.1%

of which Austria 54 74 +38.0% +10.9%

of which Switzerland 59 61 +3.5% -9.0%

RoW 256 307 +20.2% +7.9%

Total 3,375 3,827 +13.4% +6.1%

IV. BACK UP


25

Loss ratio

Expense

ratio

Life –

Expense ratio (%) P&C –

Combined ratio

(%)

Total –

Expense ratio (%)

71.571.3

26.6 27.3

15.7 15.4

10.8 10.4

9M109M09

9M109M09

9M109M09

97.9 98.8

RatiosIV. BACK UP


26Ratios by country

P&C ratios by country (%)

ITA FRA GER CEE SPA AUT SWI Consolidated

Loss ratio

9M10 77.6 71.7 66.5 63.8 70.6 68.2 70.2 71.5

9M09 80.1 71.0 65.7 59.6 68.5 69.0 66.9 71.3

Expense ratio

9M10 21.3 28.6 29.2 31.5 26.6 27.7 26.1 27.3

9M09 21.7 28.0 29.5 28.1 24.6 27.5 27.5 26.6

Combined

ratio

9M10 98.9 100.3 95.7 95.2 97.2 95.9 96.3 98.8

9M09 101.8 99.0 95.2 87.7 93.1 96.5 94.3 97.9

Life expense

ratios

by

country

(%)

9M10 9.1 8.1 12.4 17.6 7.1 13.0 20.8 10.4

9M09 9.9 6.4 14.3 18.8 5.1 13.3 17.3 10.8

IV. BACK UP


27Combined ratio reconciliation

9M09 9M10A Net earned premiums (net of consolidation adjustments) 14,856.9 15,130.9

B Consolidated net claims 10,590.1 10,812.6

Consolidated acquisition costs 3,029.7 3,216.7

Consolidated administration costs 971.7 962.3

Non insurance activity related administration costs(1) 49.2 47.5

Insurance activity related consolidated administration costs 922.5 914.8

C Total acquisition and administration costs 3,952.3 4,131.5

B/A Loss ratio 71.3% 71.5%

C/A Expense ratio 26.6% 27.3%

(B+C)/A Combined ratio 97.9% 98.8%(1) Administration expenses related to service companies, real estate and other companies not belonging to P&C segment

(Euro m)

IV. BACK UP


28Operating

result

by

country

P&C operating result by market

(Euro m)Life operating result by market

(Euro m)

9M09 9M10

Italy 755 1,004 +32.9%

France 316 362 +14.8%

Germany 144 262 +82.3%

CEE 254 136 -46.4%

RoE 263 335 +27.6%

Of which:

Spain 79 83 +3.9%

Austria 26 64 +143.3%

Switzerland 92 89 -3.0%

RoW 109 202 +86.3%

Total 1,840 2,302 +25.1%

9M09 9M10

Italy 114 240 +110.2%

France 190 145 -23.8%

Germany 223 239 +7.2%

CEE 247 115 -53.8%

RoE 262 160 -38.9%

Of which:

Spain 133 86 -35.5%

Austria 56 67 +18.1%

Switzerland 35 40 +15.2%

RoW 35 41 +18.1%

Total 1,071 939 -12.3%

IV. BACK UP


29Reclassified P&L account(Euro m) Total

9M09 9M10

Operating result 2,862 3,189Net earned premiums 46,923 47,986Net insurance benefits and claims (49,950) (48,798)Acquisition and administration costs (8,136) (8,554)Net fee and commission income and net income from financial service activities 563 645Operating income from other financial instruments 8,008 9,330Operating income from financial instruments at fair value through profit or loss 5,826 3,052

Of which net income from fin. assets and liabilities where the risk is borne by the policyholders 4,014 1,341

Operating holding expenses (193) (204)Net other operating expenses (180) (267)

Non-operating result (1,340) (1,081)Non-operating income from other financial instruments (367) (132)Non-operating income from financial instruments at fair value through profit or loss (203) (19)Non-operating holding expenses (539) (561)

Interest expenses on financial debt (517) (540)

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

Net other non-operating expenses (230) (368)Earnings before taxes 1,522 2,108Income taxes (337) (654)Result from discontinued operations (Intesa Vita) 86 51Consolidated result of the period 1,271 1,504Result of the period attributable to minority interests (377) (192)Result of the period 894 1,313

IV. BACK UP


30

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

expensesConsolidation

adjustments Total

Operating result 1,840 1,071 342 (193) (198) 2,862

Net earned premiums 32,067 14,857 0 - - 46,923

Net insurance benefits and claims (39,360) (10,590) 0 - - (49,950)

of which var. of provisions related to unit linked business (4,862) - - - (4,862)

Acquisition and administration costs (3,596) (3,970) (570) - - 8,136

Net fee and commission income and net income from financial service activities 53 (1) 584 - (73) 563

Operating income from other fin. Instruments 7,030 866 238 - (125) 8,008

Operating income from fin. Instruments at fair value through profit or loss 5,647 64 115 - - 5,826

of which net income from fin.assets and liabilities where the risk is borne by the policyholders 4,014 - - - 4,014

Operating holding expenses - - - (193) - (193)

Net other operating expenses 0 (155) (25) - - (180)

Non-operating result (248) (505) (48) (539) - (1,340)

Non-operating income from other fin.instr. (142) (220) (5) - - (367)

Non-operating income from fin. instr.at

fair value through profit or loss 0 (203) - - - (203)

Non-operating holding expenses - - - (539) - (539)

Net other non-operating expenses (106) (82) (42) - - (230)

Earnings before taxes 1,592 566 294 (732) (198) 1,522

Reclassified P&L account by segment –

9M 2009IV. BACK UP

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


31

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

expensesConsolidation

adjustments Total

Operating result 2,302 939 277 (204) (125) 3,189

Net earned premiums 32,855 15,131 0 - - 47,986

Net insurance benefits and claims (37,985) (10,813) 0 - - (48,798)

of which var. of provisions related to unit linked business (2,693) - - - (2,693)

Acquisition and administration costs (3,747) (4,147) (660) - - (8,554)

Net fee and commission income and net income from financial service activities 92 0 651 - (98) 645

Operating income from other fin. Instruments 8,279 863 216 - (28) 9,330

Operating income from fin. Instruments at fair value through profit or loss 2,879 87 86 - - 3,052

of which net income from fin.assets and liabilities where the risk is borne by the policyholders 1,341 - - - 1,341

Operating holding expenses - - - (204) - (204)

Net other operating expenses (70) (182) (16) - 1 (267)

Non-operating result (220) (257) (48) (561) 4 (1,081)

Non-operating income from other fin.instr. (88) (48) (1) - 4 (132)

Non-operating income from fin. instr.at

fair value through profit or loss 0 19 - - - (19)

Non-operating holding expenses - - - (561) - (561)

Net other non-operating expenses (132) (189) (47) - - (368)

Earnings before taxes 2,082 682 229 (765) (121) 2,108

Reclassified P&L account by segment –

9M 2010IV. BACK UP

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


32Total comprehensive

income(1)(2)

(1,031)

1,308

1,033

(245)

794

4591,916

(178)

(1,010)

181

(505)

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10

(Euro m)

IV. BACK UP

(1)

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(2)

According to new definition applied in annual report 2009, some residual change in equity components (FY09: Euro 11 m, FY08: Euro 28 m) were reclassified outside the other comprehensive income as transactions with equity holders. Comparative information was restated accordingly

1Q08 1H08 9M08 FY08 1Q09 1H09 9M09 FY09 1Q10 1H10 9M10

(1,031) (1,536) (1,354) (2,365) (178) 616 2,532 2,990 1,308 1,063 2,096

+3,000 m

-3,000 m


33IFRS Shareholders’

equity roll forward

18,20117,14616,652

23

(89)(140)

440821

+6.2%

IFRS Shareholders’

equity roll forward (Euro m)

Shareholders’

Equity FY09

Shareholders‘

Equity

1H10Δ

in AFS Reserve

3Q 2010Net Result

Δ

Currency

Translation

Reserve

Δ

Cash Flow Hedge

Reserve

Other Shareholders’

Equity 9M10

IV. BACK UP

Change in AFS reserve (Euro m)

89

307

1,128

273459

AFS Reserve 1H10

Impact Equity Investments

Impact Bond Investments

Other AFS Reserve 9M10


34What’s next

November 26, 2010 –

Investor Day in Venice


35Investor Relations Team

Paola Buratti

(Tel.: +39-040-671157)Head of Investor RelationsEmail: [email protected]

Stefano Burrino

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

Emanuele Marciante


Veronica Cherini


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


36Disclaimer

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.

Rome, November 11, 2010

Generali Group 9M 2010 Results

Generali Grup 9M 2010 Results

Education

Transcript of Generali Grup 9M 2010 Results