Generali Immobiliare Strategy & Performance

Venice, November 26, 2010

Generali Investor Day 2010

Generali Immobiliare Strategy & Performance

Giancarlo Scotti Chief Executive Officer of Generali Immobiliare

Assicurazioni Generali Group – Investor Day 2010 – Investment Management of Insurance Assets

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 in charge of preparing the company’s financial reports, Raffaele Agrusti, declares, pursuant to paragraph 2 of article 154-bis of the Consolidated Law on Financial Intermediation, that the accounting information contained in this presentation corresponds to document results, books and accounts records.

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Agenda

II. Corporate Structure

III. Real Estate Strategy & Going Forward

I. Generali Portfolio

Introduction

IV. Final Remarks

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Agenda

IntroductionA. Real Estate Asset Class within Generali Group

B. Real Estate Asset Management and Insurance business

C. Real Estate versus Other Asset Classes

D. Recent Trends

4


A. Real Estate Asset Class within Generali GroupIntroduction

30.5

258.1

Asset Management: Generali Immobiliare

InsuranceLiabilities

At 30.09.2010

Real Estate(2)

5.5% at book value7.1% at market value

Cash & financialinstruments94.5%

(1) Including own use real estate within own investments. Own investments include own capital and insurance funds (i.e. unit linked excluded)(2) Including real estate mutual funds & own use real estate (3) Net technical reserves; life reserves including investment contracts

Traditional LifeReserves(3)

P&C Reserves(3)

“Own Investments”including own use real estate(1):

Euro 331.1 bn

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Insurance objectives and Asset Allocation

B. Real Estate Asset Management and Insurance business

Global real estate investment focuses on two areas: own use assets and investment propertiesReal Estate asset management focuses on investment portfolio to deliver performanceThe real estate assets of the Group provide the insurance business with a specific asset class in the company portfolio and are used to cover life and non-life technical reservesThe investment and management policies of the Group real estate assets are coherent with the insurance business requirements:

Life: Recurring income properties to support yearly income returnAssets with long-term value creation

Non-life: Properties with value appreciation to maximize return on capital

Recurring income and value creationPositive RE yield spread vs. bondInflation hedgingLong-term capital protectionCreation of latent capital gainHigh quality tenants

Introduction

Investment strategy – Key drivers

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Property versus other asset classes: Long-term performance

C. Real Estate vs. Other Asset Classes (1/2)Introduction

Real estate is a significant asset class with specific characteristics:

Size of the real estate market

Risk/return profile (between stocks and bonds)

Diversification benefits due to low cross-correlation with financial assets

High proportion of total return in current cash yield

Hedge against unanticipated inflation

Real estate’s relatively low correlation with other asset classes make it a source of diversification in a portfolio.

Source: Generali Immobiliare Research

Total return US Europe(annual in %) 30 years 9 years

Bond 9.8% 6.1%

All property 10.0% 4.1%

Equities 10.8% 1.9%Source: EUROPE -All property: IPD all European pooled property fiunds index, Equities: Morgan Stanley Capital International, Bonds: JP Morgan Co Incorporated

USA- IBBOTSON 2009 (1978 to 2008 data) Property: NCREIF-MIT, Equities: S&P 500, Bonds: US Long-term (20 y) Treasury Ibbotson.

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Property in a low interest rate environment (Milan example)

C. Real Estate vs. Other Asset Classes (2/2)Introduction

Increasing spread (Real estate yields vs. Bonds)

Low-cost debt financing

Real Estate spread near record to Government Bonds signals time to buy propertySources: Cushman, Datastream

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Dec. 2005 Jun. 2006 Dec. 2006 Jun. 2007 Dec. 2007 Jun. 2008 Dec. 2008 Jun. 2009 Dec. 2009 Jun. 20100

50

100

150

200

250

300 Spread [RHS]

Milan Prime Yield

Italian Gov. Bond (Rendistato)

(1)

(1) Yields are net of direct costs i.e. maintenance, insurance, local taxes etc

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D. Recent Trends

Medium term outlook improving as market imbalances are reduced gradually

Real estate markets benefited from the increased economic activity in 2010

Rental values to stabilize, sharp decline in new supply and stabilization of vacancy rates

The demand-side environment remains the main short-term concern

We expect slight increases in capital values from 2011 onwardsSource: GIm Market Research, Cushman

-40%

-30%

-20%

-10%

0%

10%

20%

30%

Dec.2005

Jun.2006

Dec.2006

Jun.2007

Dec.2007

Jun.2008

Dec.2008

Jun.2009

Dec.2009

Jun.2010

Paris Munich Milan Madrid

European Prime Office Rental Growth

Introduction

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A. Real Estate within Generali: Description

B. Real Estate within Generali: Operational features and tenancy

C. Real Estate within Generali: Key performance indicators

D. Generali Group and Real Estate Investments

Agenda


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Total Real Estate Market Value as at 30.09.2010: Euro 24.2 bn:

Own Use: Euro 3.9 bn (16%)

Investment Portfolio: Euro 20.3 bn (84%)

Direct: Euro 17.9 bn(1)

Indirect: Euro 2.4 bn(1)

Latent Capital Gain for the Direct Investment Portfolio as at 30.09.2010: Euro 5.2 bn (30%)

Life: Euro 1.6 bn

Non-life: Euro 3.6 bn

Portfolio comprises more than 2,000 assets

Development projects represent a marginal activity in direct portfolio

Low Leverage level

Real Estate Asset Allocation: 7.1% as at September 30, 2010 at Market Value

A. Real Estate within Generali: Description (1/2)I. Generali Portfolio

Source: Financial Statements 30.09.2010(1) Direct: Re assets owned directly by the group insurance companies or through SPV directly controlled

Indirect: Re funds managed by third parties

Destination of use of the direct portfolio Market Value as at September 30, 2010

Other/Mixed 9%

Retail 6%

Office 74%

Residential 8%

Logistic 3%

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A. Real Estate within Generali: Description (2/2)I. Generali Portfolio

Source: Financial Statements 2010.09.30

Country (Euro bn)

Italy France Germany Rest of Europe

Rest of World

Total

Total Investment MV 9.67 4.99 4.11 4.45 0.96 24.18

Own Use MV 1.55 0.43 0.79 0.95 0.18 3.90

Investment Portfolio MV 8.12 4.56 3.32 3.46 0.78 20.28

Direct Portfolio MV 6.84 4.31 2.46 3.53 0.71 17.85

Indirect Portfolio MV 1.28 0.25 0.86 0.04 0.00 2.43

Market Value by Cities (on Total Investment MV)Market Value by country (on Total Investment MV)

Rest of World 4%

Germany 17%

Italy 40%

France 21%

Rest of Europe 18%

Milan 15%

Munich 2%

Rome 6%

Vienna 5%

Tel Aviv 3%

Hamburg 3%

Cologne 2%Berlin 2%Madrid 2%

Barcelona 2%

Other 39%

Paris 19%

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B. Real Estate within Generali: Operational features and tenancy (1/2)

Secure source of income


Long Lease

Office lease contracts have different legal structure:

Italy: 12 years (6+6)

France: 9 years (3+3+3)

Germany: 10 years (5+5)

Long Lease duration, rental level defined over the period

Indexation and natural hedge to inflationInflation Hedging: Full indexation of the rent to the inflation across Europe:

Italy: 75/100% of indexationon inflation (ISTAT)

France: 100% indexed on ICC (Construction Costs Index) or IRL (Life Costs Index)

Germany: Indexation based on inflation with a threshold minimum of 5%

Source: Management report

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High quality source of income


Low Counterparty Risk

No exposure to a major tenant at Group level

Good diversification of tenant’s activity sector (financial institutions, retail, state organizations, food, fashion …)

High quality of tenants (credit risk analysis by tenant are performed at country level)

Quality buildings attraction for quality and branded tenants: new buildings in business area and historical building in prime and downtown locations

Multitenancy prevails

Key tenant relation as a priority

Low concentration of expiry date of lease (10-15% per year)

Tenants concentration in main countries

Italy Top 10 tenants represent ca. 15% of passing rent

Economic sector: Financial institutions, Telecom and media, state organization, services

France Top 10 tenants ca. 35% of passing rent

Economic sector: IT and services, food, media, state organization, financial institutions

Germany Top 10 tenants represent ca. 20% of passing rent

Economic sector: Retail, IT and services, media, financial institutions

B. Real Estate within Generali: Operational features and tenancy (2/2) 14


C. Real Estate within Generali: Key Performance Indicators (1/3)

Catch momentum and value creation


Net Operating Income Increases thanks to active management (risk return profile)Net Realised Capital Gain: Regular stream to support insurance profitabilityContinue value creation: Latent capital gain at 30% over the period

Source: Financial Statements and management accountRecurring return %: (Rental Income – operating expenses, i.e. maintenance, insurance)/Market Value Latent Capital Gain %: (Market Value – Book Value)/Market Value; Realised Capital Gain: Sales Price – Book Value

31% 33% 31%29% 29%

627118

343 352260

2006 2007 2008 2009 2010e

Recurring Returns % Latent Capital Gain % Realised Capital Gain (Euro m)

4.5%4.5%4.2%4.1%

3.8%

Direct Portfolio

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C. Real Estate within Generali: Key Performance Indicators (2/3)I. Generali Portfolio

Take advantage of market timing

Source: Financial Statements and management account

Direct portfolio

Took advantage of market timing and realised capital gain in 2008, turnaround year in the Euro zoneGroup portfolio confirms its resilience in 2009Resume value creation in 2010

Latent Capital Gain Realised Capital Gain

5.2

5.9 5.75.2 5.3

29.0%31.2%

33.3%31.5%

29.4%

4.0

4.5

5.0

5.5

6.0

2006 2007 2008 2009 2010e15.0

20.0

25.0

30.0

35.0

Latent Capital Gain% Latent Capital Gain

117.7

343.0

626.6

351.7260.0

6.2%6.6%

2.5%

10.5%

5.0%

0.0

100.0

200.0

300.0

400.0

500.0

600.0

2006 2007 2008 2009 2010e0.0

2.0

4.0

6.0

8.0

10.0

12.0

Capital Gain realised% Capital Gain realised vs. latent

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C. Real Estate within Generali: Key Performance Indicators (3/3)

Catch momentum and rebalance asset allocation


On a long-term view over the past ten years, Generali has rebalanced the risk return profile of the portfolioBetween 2000 and 2005 sales focused on residential sector to seize the market opportunities (capital gain extraction from low yield properties)Over the period new investments focused on recurring income and value creating office properties

Source: Management account

Asset Allocation by Destination of UseOther/Mixed 18%

Office 74%

Residential 8%

Other/Mixed 15%

Office 55%

Residential 30%

2000 2010

Direct Portfolio

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D. Generali Group and Real Estate Investments (1/9)I. Generali Portfolio

Trieste – Piazza Unità d’Italia

Milan – Piazza Cordusio

Generali was founded in Trieste. The Group then expanded into the Procuratie Vecchie in San Marco’s Square, Venice, one of the most prestigious buildings among the firm’s historic assets. The Group’s evolution and personality are mirrored throughout Europe in the high quality commercial buildings initially own used and then for investment purpose.

A historical portfolio

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ITALY: From historical portfolio …


Venice – Piazza San Marco

Rome – Piazza Venezia

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ITALY: … to modern investment properties


Milan – Via Filzi Milan – Palazzo Nimeyer

Milan – Maciachini business park

Rome – Via Po

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FRANCE: Historical portfolio and new projects for the city


Paris (Issy les Moulineaux) – EOS

Paris – Champs-Èlysées

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Hamburg – Covent Park

Berlin – Adidas Cologne – Constantinhoefe

GERMANY: Mostly newly built portfolio

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AUSTRIA: Unique portfolio


Vienna – Graben

Vienna – Wipplinger

Vienna – Tegetthoffstrasse, 7

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SPAIN: Madrid and Barcelona CBD portfolio


Madrid – Gran Via 10 Madrid – Serrano Barcelona – Paseo de Gracia

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OTHER LOCATIONS

Zurich ZH – Freigutstrasse 12-14

Brussels – Louise TowerAmsterdam – Herengracht

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RECENT ACQUISITION: Farragut Building – Washington

Overview Energy Star office property 12 storeyHeart of Washington DC’s CBD, 2 blocks from the White House


D. Generali Group and Real Estate Investments (9/9) 26


Agenda

II. Corporate StructureA. Real Estate Structure within Generali

B. Generali Immobiliare

C. Group Real Estate Divestment / Investment Committee

D. Product Development

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Integrated Asset Management Structure

A. Real Estate Structure within Generali

Global Player

Generali is a global key player with strong local competences

Generali Immobiliare: Group Real Estate Asset Management structure, with specialised poles

All investments / divestments approved by a centralised Real Estate Committee

Dedicated team in 11 countries, 500 staff

Italy

France

Germany

Spain

Austria

Vertical integration with focus on Investment Portfolio

Facility Management

Property Management

Asset Management

Product development and Fund Management

Structure dedicated to Insurance Companies

Matching technical reserves

Asset Management for life – non-life segment

Follow Group geographical expansion

Expansion of third party institutional Asset Management

Belgium

Netherlands

Switzerland

Israel

Czech Republic

China

II. Corporate Structure

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B. Generali Immobiliare (1/2)II. Corporate Structure

The globalisation of the Real Estate market provides Generali with a unique opportunity to leverage its competences and become a Global Player with strong local competences

Generali Immobiliare has been set up on the 1st September 2008 as a new department of the Corporate Centre (Assicurazioni Generali) dedicated to the Real Estate across the Group

Generali Immobiliare business model is client-focused and aims to combine Real Estate culture with a strong financial background

Real estate servicesProject managementCommercial property

Generali Immobiliare

Synthesis of both culturesto better serve clients

Real Estate skills Financial skills

Asset ManagementResearch

Finance

Client RelationshipTenants

Client RelationshipInsurance companies Institutional investors

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B. Generali Immobiliare (2/2)II. Corporate Structure

Benoit PRAT-STANFORD Dominique BEGHIN

FRANCEPhilippe

DEPOUX

ITALYGiovanni PAVIERA

GERMANYMartin

SCHRAMM

AUSTRIAKlaus

EDELHAUSER

Countries

Tina PAILLET

SPAINJulio VIDAL

AREAN

ISRAELShlomo

GUTMAN

BELGIUMMichel STAES

THE NETHERLANDS

Ad OLIVIER

SWITZERLANDChristian

BREUTEL

Jacques PLAS

Research Finance Asset Mgmt Invest / DivestElisabeth LOH

Asia

Other Headquarters departments

Strategic PlanningStrategic Asset AllocationFinanceTaxLegal

GREDIC

Generali Real Estate

Divestment /

Investment

Committee

CHIEF EXECUTIVE OFFICERGiancarlo SCOTTI

GENERALI Immobiliare

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C. Group Real Estate Divestment / Investment CommitteeII. Corporate Structure

Generali Real Estate Divestment / Investment Committee ”GREDIC” is the investment / divestment technical & executive centre for Generali Group Real Estate:

All investments / divestments to be approved by GREDIC

Standard presentation with consistent Key Performance Indicators

Presentation from D. Beghin and local team

Comparability of performance investment process across the group

Due diligence and acquisition process covers all aspects of risk and performance

Ensure that local investments are in line with group strategy

Six members, international team, who meet weekly in Paris:

Philippe DEPOUX

Giovanni PAVIERA

Martin SCHRAMM

Klaus EDELHAUSER

Benoit PRAT- STANFORD

Giancarlo SCOTTI

Chairman of GREDIC

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D. Product DevelopmentII. Corporate Structure

Generali Group has developed expertise in product development and real estate fund management for group insurance companies over the past 4 years

Real Estate Funds rationaleOffer opportunity across groupEligible asset for insurance company technical reservesRebalance risk / return profile for each company according to insurance requirements

Creation of dedicated vehicles through Group Real Estate management companiesGenerali Immobiliare Italia SGR: Set up in 2006, dedicated funds with clear investment strategy (AUM Euro 3.2 bn)Generali Immobiliare Asset Management (Lux Co): Set up in 2009, dedicated funds geographically and sector focused

Third Parties Institutional Asset Management activity started in Italy in 2008 with Scarlatti Fund and Eracle FundIncrease Third Party Institutional Asset Management is a target

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Agenda

III. Real Estate Strategy & Going ForwardA. Investment Strategy & Market environment

B. Going Forward

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Real Estate under Solvency II

A. Investment Strategy and Market environment (1/2)III. Real Estate Strategy & Going Forward

Real Estate estimated capital charge at 25%

Positive margin over bond yield backed by real assets

Total Return as sum of Recurring Income and Change of Value

Real Estate market momentum favorable for long-term investors

Inflation Hedging

Increase life segment exposure to Real Estate as an opportunity to optimize risk / return profile

Real Estate attractive asset class for life business of Generali

Balance RE allocation Life – Non-life considering the risk capital absorption

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A. Investment Strategy and Market environment (2/2)III. Real Estate Strategy & Going Forward

Strategy has to be adapted to uncertain market environment

Globalization to continue

Objective to secure cash flow on existing assets

Some yield recompression across markets

Real estate debt to be refinanced in the next years might generate opportunities

More balanced RE Portfolio to benefit from different market timing

Market timing is key in Euro zone and USA as more mature

Urbanization at an unprecedented speed in China and India

Market and risk monitoring to support expected returns

Significant investment opportunities in Real EstateAttractive returns where cycle is most advanced (USA)

Quality assets at affordable prices in core countries (France, Italy, Germany) due to distressed sellers

China: Entering real estate after markets have cooled down

India: Take advantage of fast urbanization process

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B. Going Forward: Increase Real Estate Exosure (1/2)III. Real Estate Strategy & Going Forward

Increase Real Estate exposureInvest in quality assets with recurring income

Seize opportunities

Continue portfolio turnover to maximize return

Allocation by segment: essentially in life

New Investments structureTraditionally, technical reserves backed by

domestic assets: RE investment directly or through local / dedicated products (domestic funds)

Selectively, technical reserves backed by cross border assets: RE investment through cross-border/specialized products managed internally (international funds)

Opportunity to invest over the next years, market turnaround expected in 2012Ride the market cycle to take advantage of the Group’s existing markets and of new areas (Euro zone)

Investments in countries where yields are attractive (USA)

Start to invest in China following Group expansion to match local insurance reserves

Invest in CEE markets following Group expansion to match local insurance reserves

Gradual increase of Group RE portfolio

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B. Going Forward: Increase Real Estate Exposure (2/2)III. Real Estate Strategy & Going Forward

AsiaChina: Gradually invest local technical reservesIndia: Study opportunities

Central Eastern EuropeMatch Group Assets / Liabilities requirements

Continental EuropePortfolio TurnoverRide market cycle: Quality assets and returnsResilient Portfolio with recurring income

North AmericaAttractive returnsAdvanced Real Estate cycleLiquid marketTop quality products offer

South AmericaStudy opportunitiesFollow group expansion

Focus onNew YorkWashingtonBostonSan FranciscoChicago

Focus onMadrid, BarcelonaParisHamburg, Cologne, Munich, BerlinMilan, RomeViennaLondon Focus on

ShanghaiBeijingShenzhenGuangzhou

Focus onPragueWarsaw

Opportunistic strategy CORE Growth

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Agenda

Final Remarks

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Final Remarks

Real Estate exposure growth

Third party institutional Asset Management increase

Exposure to Real Estate mainly in life

Integrated Real Estate Asset Management structure

Resilient portfolio with balanced risk return profile

FINAL REMARKS

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Venice, November 26, 2010

Generali Investor Day 2010

Generali Immobiliare Strategy & Performance

Giancarlo Scotti Chief Executive Officer of Generali Immobiliare

Generali Immobiliare Strategy & Performance

Business

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