Generali Group 9M Results 2014

© Generali

November 6, 2014 9M 2014 Results

GENERALI GROUP 9M 2014 Results

Please note that prior year’s figures have been restated throughout the whole presentation to reflect the new perimeter of the Group.

Net income, Shareholders’ Equity, Solvency I, Life Value KPIs are not adjusted for disposed entities.

The like for like change of written premiums, life net inflows, APE and NBV is on equivalent terms (on equivalent exchange rates and consolidation area).

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Agenda

2

- Profit & Loss and Balance Sheet Page 3

- Business review Page 9

- Backup Page 24

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Agenda

I. Profit & Loss and Balance Sheet

3

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Operating Result: Strong positive development thanks to all business segments

Life: Positive performance with improved investment results and lower expenses

P&C: Increase driven by significantly better combined ratio

Costs: general expenses down 1%(1) year on year at €4.6bn despite higher activity

levels

Net Result: Stable reflecting gains from discontinued operations last year (Profit after tax

from continuing operations +7.5%(1))

Solvency I: Significant improvement of Solvency capital position thanks to successful

placement of subordinated bond and financial market development. 169% pro-forma for

disposal of BSI

4

Key 9M 2014 financials at a glance

Profit & Loss

9M13 9M14 LFL D 3Q13 3Q14 LFL D

Operating result (€ m) 3,259 3,677 +12.8% 964 1,164 +20.8%

Operating RoE(2) 9.5% 10.9% +1.4%pts. 2.7% 3.5% +0.8%pts.

Net result (€ m) 1,591 1,588 -0.1% 510 513 +0.6%

EPS (€) 1.03 1.02 -0.8% 0.33 0.33 -0.1%

Net operating EPS (€) 1.06 1.25 +17.5% 0.30 0.41 +34.6%

Shareholders’ equity(3) 19,778 22,538 +14.0%

Solvency I(3) 141% 160% +19%pts.

(1) On like for like basis

(2) Not annualized

(3) Comparative data FY13

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3,259 228 157

49

11

3,677

(27)

9M13 LIFE P&C FINANCIALSERVICES

HOLDING EXP. CONS.AD 9M14

5

Operating result by segment

Profit & Loss

(€ m) +12.8%

9M14 2,300 1,482 323 (290) (137)

9M13 2,071 1,325 274 (264) (148)

D +11.0% +11.8% +17.8% +10.2% -7.4%

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6

From operating result to net profit

Profit & Loss

9M14 3,677 (7) (606) (299) (996) (19) (161) 1,588

9M13 3,259 (1) (594) (301) (719) 150 (205) 1,591

D +12.8% n.m. +2.1% -0.4% +38.6% n.m. -21.1% -0.1%

3,677

(7)

(606)

(299)

(996) (19) (161)

1,588

OPERATING

RESULT

NON OPER.

INVESTMENT

INCOME

NON OPER.

HOLDING

EXPENSES

NET OTHER

NON OPER.

EXPENSES

INCOME TAXES DISC.

OPERATIONS

MINORITIES NET RESULT

(€ m)

Including:

- € 564 m: Interest costs

Including:

- € 104 m: VOBA amortization

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7

Shareholders’ equity

Balance Sheet

Change in AFS reserve (€ m)

Shareholders’ equity rollforward (€ m)

1,588

(701) (1,304) 19,778

3,177 22,538

SHAREHOLDERS'EQUITY FY13

Δ in AFS RESERVE 9M 2014 NETRESULTS

DIVIDEND OTHER SHAREHOLDERSEQUITY 9M14

2,501

3,246 193 5,678

(262)

AFS RESERVE FY13 IMPACT EQUITYINVESTMENT

IMPACT BONDINVESTMENTS

OTHER AFS RESERVE 9M14

+14.0%

Including:

- € 635 m: GPH buyout

- € 130 m: GDH squeeze out

- € 492 m: defined benefit plan

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8

Solvency I

Capital

+19%pts.

156

153

177

142

150

160

Real estate -10%

Credit spread +100bps

Interest rate -100bps

Interest rate+100bps

Equities -30%

Total ratio30.09.2014

Solvency I ratio sensitivities (%)

Solvency I rollforward (%)

141% 10%pts. 5%pts 15%pts 160%

(3%pts.) (8%pts.)

SOLVENCY I FY13 REQUIREDMARGIN GROWTH

M&A (1) CONSOLIDATEDRESULT

SUBORDINATEDDEBT

FINANCIALMARKETS AND

OTHER

SOLVENCY I 9M14(2)

(1) Including disposal of Fata Danni (+1%pts.), acquisition of the 24% minorities of GPH (-7%pts.) and of 4% minorities squeeze out of GDH (-1%pts.)

(2) For interim closings, no accrued dividends are deducted from available margin

Significant improvement of Solvency capital position despite the

impact of remaining GPH minorities acquisition, driven by:

Result of the period

Successful placement of subordinated bond

Financial market development

Impact of BSI disposal (+9%pts.) expected to close by 1H15

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Agenda

II. Business review

9

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10

Life key financial indicators

Life Insurance

(€ m) 9M13 9M14 LFL D 3Q13 3Q14 LFL D

Gross written premiums 32,801 35,728 +9.6% 9,685 11,536 +19.5%

Net inflows 6,515 9,118 +41.7% 1,580 3,193 +102.8%

Life operating result 2,071 2,300 +11.0% 591 748 +26.7%

Life operating ratio on

investments (bps)(1) 62 61 -1 21 24 +3

APE 3,211 3,666 +12.7% 908 1,146 +23.3%

New Business Value 670 934 +42.0% 197 283 +42.2%

Margins on APE (%) 20.9% 25.5% +5.3% 21.7% 24.7% +3.3%

(1) Not annualized

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2,071 214

206 2,300

(190)

9M13 TECHNICAL MARGIN INVESTMENT RESULT EXPENSES 9M14

11

Life Operating result by driver

Life Insurance

9M14 4,026 1,705 (3,430)

9M13 4,216 1,491 (3,636)

D % -4.5% +14.3% -5.7%

Strong improvement driven by the investment result and decreasing expense ratio

Technical margin lower due to policyholder share of lower expenses, and lower risk result

(€ m)

+11.0%

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12

Life inflows and technical reserves(1)

Life Insurance

(1) Including liabilities related to investment contracts

Life Inflows (€ m) 9M13 9M14

Italy 788 3,652

France 67 398

Germany 3,635 2,183

CEE 424 359

EMEA 1,174 2,194

Lat. Am. 216 187

Asia 184 125

International 26 20

TOTAL 6,515 9,118

5.3%

11.3%

3.9%

Unit linked Traditional

(€ bn)

266.4

9.1 10.6

276.8

58.9 65.6

325.3 342.4

(3.9)

1.3

FY13 NET INFLOWS LOADINGS,RISK &

SURRENDERRESULT

POLICYH.SHARE OF

INVEST.RESULT

EXCHANGERATES &OTHER

9M14

Sharp increase in net inflows (+ 41.7%)

Excellent performance in Italy and EMEA

Recovery in France in 3rd quarter

Decrease in Germany due to contraction of cash-in

following planned reduction of single premiums

Overall growth in reserves of 5.3% from end 2013 (of

which +11.3% increase in unit linked)

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13

Life investment performance

Life Insurance

Life segment general account (%)

Euro 282.4 bn Euro 314.1 bn

(1) Net of depreciation expenses

43.3% 44.9%

34.6% 35.0%

8.1% 8.9%

4.7% 4.1%

3.5% 3.2%

3.8% 2.3% 1.9% 1.7%

FY13 9M14

Other

Cash & cashequivalent

Real estate

Equity

Other fixedincome

Corporate bonds

Governmentbonds

Euro m %

Fixed income

9M13 6,929 2.94

9M14 7,143 2.72

Equity

9M13 343 2.73

9M14 386 2.98

Real Estate(1)

9M13 449 4.53

9M14 442 4.42

Total(1)

9M13 7,976 2.90

9M14 8,178 2.74

Current returns (not annualized)

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Excellent APE development (+12.7%) on account of good growth for both annual (+5.8%) and single

premiums (+23.1%)

NBM improves (+5.3p.p. on homogeneous basis) on account of the reduction of guarantees offered (in Euro

area from 1.20% at 9M13 to 0.93% at 9M14) and of the higher profitability of unit linked business

Solid NBV at Euro 934 m (+42.0%)

14

Life new business analysis

Life Insurance

(€ m) APE NBV Margin on APE (NBM)

9M13 9M14 LFL r 9M13 9M14 LFL r 9M13 9M14 LFL r

Italy 1,235 1,706 +38.2% 219 474 +116.7% 17.8% 27.8% +10.1%

France 573 627 +9.6% 76 77 +1.7% 13.2% 12.2% -0.9%

Germany 724 608 -20.4% 181 195 +2.7% 24.9% 32.1% +7.2%

CEE 126 103 -13.9% 56 33 -24.9% 44.5% 31.9% -4.7%

EMEA 441 514 +12.2% 113 141 +22.2% 25.7% 27.4% +2.2%

Lat. Am & Asia 112 109 +10.9% 25 14 +53.0% 22.6% 13.3% +3.7%

Total 3,211 3,666 +12.7% 670 934 +42.0% 20.9% 25.5% +5.3%

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15

P&C key financial Indicators

P&C Insurance

(€ m) 9M13 9M14 LFL D 3Q13 3Q14 LFL D

Gross written premiums, of which: Primary Motor

Primary Non Motor

15,915 6,549

8,827

15,564 6,319

8,748

-0.2% +0.2%

+0.0%

4,439 1,857

2,422

4,395 1,803

2,442

+1.2% +0.3%

+2.4%

Combined ratio (%) 95.0% 93.6% -1.4%pts. 95.8% 95.0% -0.7%pts.

Of which:

Nat Cat impact (%) 2.5% 1.2% -1.3%pts. 3.5% 1.0% -2.5%pts.

P&C operating result 1,325 1,482 +11.8% 425 448 +5.4%

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1,325 152 13

(9)

1,482

9M13 TECHNICAL MARGIN INVESTMENT RESULT OTHER 9M14

16

P&C Operating result by driver

P&C Insurance

9M14 860 770 (147)

9M13 707 757 (139)

D % +21.6% +1.7% +6.2%

Improving result reflecting better underwriting margins

(€ m)

+11.8%

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(€ m) 9M13 9M14 LFL r

Italy 4,304 4,155 -3.5%

France 2,162 2,002 -7.4%

Germany 2,804 2,881 +2.7%

CEE 1,498 1,446 +0.2%

EMEA 3,384 3,394 +0.3%

Lat Am 843 773 +23.2%

Asia 77 78 +3.1%

International 842 835 -0.9%

Total 15,915 15,564 -0.2%

17

P&C gross written premiums trends

P&C Insurance

Overall stable premium development:

Decline in Italy primarily driven by Motor. Growth

in Personal and Commercial lines offset by lower

premiums in Accident & Health

Decline in France driven by a competitive market

environment and portfolio restructuring activities

Improvement in Germany thanks both to Motor

and Non-Motor (driven by Personal and

Commercial)

Sharp increase in Latin America (on like for like

basis), mainly driven by Argentina (reflecting

inflation effect)

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68.2

0.2 66.8

(0.3) (1.3)

9M13 Current year NAT CAT Prior years 9M14

68.2 66.8

26.8 26.8

(1.4) (0.1)

95.0 93.6

9M13 Δ Expense ratio Δ Loss ratio 9M14

20.9

(0.0)

21.0

5.9 5.8

26.8 26.8

9M13 Δ Admin Δ Acq. 9M14

(0.1)

18

Combined ratio analysis

P&C Insurance

Combined ratio (%)

Loss ratio Expense ratio

Expense ratio (%)

Δ%pts

- 0.1%pts.

9M14 69.6 1.2 -4.0 66.8

9M13 69.8 2.5 -4.2 68.2

Loss ratio (%)

- 1.4%pts.

- 1.4%pts.

Acquisition

costs

Administr.

costs

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19

Combined ratio by country

P&C Insurance

COUNTRY 9M13 9M14 ∆

Italy 91.6% 89.1% -2.5%pts.

France 101.0% 105.4% +4.4%pts.

Germany 95.9% 93.5% -2.5%pts.

CEE 89.5% 87.3% -2.1%pts.

EMEA 95.7% 94.5% -1.2%pts.

Lat Am 103.8% 107.7% +3.9%pts.

Asia 133.6% 96.6% -37.0%pts.

International 90.4% 81.2% -9.3%pts.

Total 95.0% 93.6% -1.4%pts.

Combined ratio improving in Italy, despite

Nat Cat impact (+0.9%pts.)

Combined Ratio in France strongly

impacted by Nat Cat (3.2%pts.) and

portfolio restructuring activities

Germany and CEE, benefitting from

lower Nat Cat events (significant flood

losses in 2013)

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20

P&C investment performance

P&C Insurance

P&C segment general account (%)

Euro 37.7 bn Euro 39.7 bn

29.1% 23.7%

30.2% 33.6%

6.5% 9.9%

9.9% 10.0%

13.1% 12.6%

10.0% 8.7%

1.1% 1.5%

FY13 9M14

Other

Cash & cashequivalent

Real estate

Equity

Other fixedincome

Corporatebonds

Governmentbonds

(1) Net of depreciation expenses.

Euro m %

Fixed income

9M13 653 2.56

9M14 662 2.54

Equity

9M13 67 2.40

9M14 100 2.62

Real Estate(1)

9M13 232 4.48

9M14 212 4.28

Total(1)

9M13 1,040 2.82

9M14 1,021 2.61

Current returns (not annualized)

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21

Financial segment key financial indicators

Financial Segment

(1) Comparative data FY13

9M13 9M14 LFL D 3Q13 3Q14 LFL D

Operating result (€ m) 274 323 +17.8% 79 97 +22.8%

Net fees and commissions (€ m) 341 378 +10.8% 104 127 +21.8%

Cost / income ratio (%) 50.0% 47.3% -2.7%pts. 50.8% 47.4% -3.4%pts.

Third party AUM(1) (€ bn) 36.5 39.1 +6.9%

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22 Final remarks

Pro-forma Solvency I ratio at 169%, comfortably above target level

Strong improvement in operating result, driven by all segments

Continuing momentum in life volumes and inflows, with improved mix

Strong improvement in P&C profitability driven by lower nat cat and improving underlying margins

Final remarks

© Generali


23

Overview:

Partial Cash Tender on 3 outstanding Hybrids:

New Issue of Euro denominated Perpetual Fixed/Floating Rate Notes

Conditions & Features:

The Cash Tender is conditional upon the successful completion of the New Issue

Final acceptance amount in the Cash Tender capped at (no more than) the amount of Hybrids that can be purchased using the

proceeds raised in the New Issue; pro-ration at the Offeror’s discretion if cap is exceeded

Fixed purchase prices in the Cash Tender and market standard bookbuilding process for the New Issue

Priority allocation in the New Issue for holders tendering outstanding Hybrids

Holders seeking priority allocation should request an Allocation Code from the dealer manager banks and include it in their

Tender Instruction and New Issue order, as described in the Tender Offer Memorandum

Rationale:

Extend economic duration (to call) of solvency capital instruments

Efficiently manage capital structure ahead of Solvency II

Take advantage of low rates environment to secure an attractive running cost for the New Issue

Provide liquidity to investors

Expect broadly neutral impact on financial leverage and solvency capital

Timeline:

Tender Period: Thursday 6th November to 5pm (CET) Thursday 13th November

Results: After pricing of the New Issue, which will follow the Tender Period and be no later than 21st November

Settlement: 5 business days after New Issue pricing for both the Cash Tender and New Issue

Liability Management transaction – Key elements

Issuer Nominal value issued Currency Coupon % Issue date Maturity Call date Purchase price

Generali Finance BV 1,275 m EUR 5.317 16 June 2006 Perpetual 16 June 2016 105.875 %

Generali Finance BV 700 m GBP 6.214 16 June 2006 Perpetual 16 June 2016 104.875 %

Generali Finance BV 1,250 m EUR 5.479 8 February 2007 Perpetual 8 February 2017 107.000 %

Liability Management transaction

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Agenda

24

II. Backup

- Investments Page 25

- Financial debt Page 30

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Agenda

25

II. Backup



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26

Assets under management

Investments

76.8%

14.1%

9.1% General account

Unit Linked

Third party AUM5%

87%

4%

3% 1%

Equity

Fixed income

Real estate

Cash & Cash Equivalent

Other

By Asset Class

By Region

Total portfolio € 465 bn Breakdown by region and asset class

31%

23%

29%

3% 10%

4% Italy

France

Germany

CEE

EMEA

RoW and otheroperations

© Generali


14%

34%

4%

46%

2% 0%

Government € 155 bn (1)

71%

10%

10%

7%

1% 1%

Covered € 31 bn

4% 8%

37%

40%

10%

1%

Corporate € 93 bn

AAA AA A BBB Not Investment Grade Not Rated

Total Portfolio € 312 bn

27 Investments

Fixed Income Portfolio

(1) Italian government bond exposure is 84% of BBB

Fixed income duration FY13 9M14

Life 7.2 8.0

P&C 4.0 4.6

49.7%

12.9%

16.9%

10.0%

10.5%

Other fixed Income

Covered

Corporate non fin.

Corporate fin.

Government

© Generali


63%

22%

15%

Equity Equity Funds Alternatives

28 Investments

Equity & Equity-like

Life, P&C and

Financial

Total portfolio (€ 17 bn) Equity (€ 10.9 bn) Alternative investments (€ 2.7 bn)

Life, P&C and

Financial

Life, P&C and

Financial

Listed and

Unlisted

65% 14%

21%

Life

P&C

Financial

76%

24%

0%

Life

P&C

Financial

75%

24%

1%

Life

P&C

Financial

83%

17%

Quoted

Unquoted

© Generali


85%

15%

Breakdown by utilization (2)

Investmentproperties

Own use

64%

15%

11%

4% 6% Breakdown by use (2)

Office

Retail

Residential

Logistic

Other/Mixed

29 Investments

37%

24%

16%

2%

20%

1% Breakdown by country (2)

Italy

France

Germany

CEE

RoE

RoW

Real Estate (1)

(1) Data, at fair value, includes indirect investments, investment properties, own use assets and property inventory

(2) Detail referred to direct investments in real estate only

Total portfolio (€ 25 bn (1))

© Generali


Agenda

30

II. Backup



© Generali


Debt refinancing operations completed

Financing until 2016 call dates completed; € 1 bn net reduction in debt levels by end 2015

12.8 1.3

(0.5)

1.0

(1.5)

12.9

(0.8)

12.2

(0.5)

11.7

FY13 SENIOR BOND

ISSUED JAN

2014

REPAYMENT

OF INELIGIBLE

LOAN

SUB DEBT

ISSUED MAY

2014

SENIOR DEBT

REPAYMENT

MAY 2014

9M14 NOVEMBER

2014 SENIOR

MATURITIES

EXPECTED

FY14

2015

MATURITIES

EXPECTED

FY15

(€ bn)

Advantage taken of market conditions to pre-finance until 2016 call dates:

€ 1.25 bn senior debt issued in January, with € 2.25 bn senior maturing this year (remainder financed from

internal resources, in excess of 1/3rd target)

€ 1.0 bn subordinated bond issued in May to 1) Replace € 500 m ineligible loan at year end, and 2) Pre-

finance 2015 maturities of € 0.5 bn.

Net € 1 bn improvement in debt position expected by 2015, with lower interest expenses ( € 60 m)

Financial debt 31

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32

Focus on financial debt

Financial debt

Total financial debt (€ m) Average cost & maturity of financial debt (%)

4,468 4,220

7,612 8,133

678 603

FY13 9M14

Senior Sub/Hybrid Other

FY13 9M14

Average cost (%) 5.93% 5.71%

Subordinated/Hybrid 6.54% 6.41%

Senior 4.81% 4.26%

Average maturity (years) 5.27 5.71

€ 12,758 m € 12,956 m(1)

(1) The amount of financial debt as of September, 30, includes the subordinated bond issued in May 2014 for a nominal amount of € 1 bn to refinance part of the 2015 maturities

© Generali


2014 2015 2016 2017 2018 2019 2020 2022 2024 2026

Senior Hybrid Subordinated

33

Financial debt breakdown(1) by expiry date/call date Financial debt

750

500

2,177

1,268

250

770

2,635

1,750

1,449

(1) This breakdown still takes into account the Senior bonds maturing in 2014 that will be reimboursed with internal resources and 2015 already refinanced.

1,250

(€ m)

© Generali


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.

© Generali


35

Next events

19.11.2014

2014 Investor Day

12.03.2015

FY 2014 results reporting

30.04.2015

Annual General Meeting

14.05.2015

1Q 2015 results reporting

30.07.2015

1H 2015 results reporting

05.11.2015

9M 2015 results reporting

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Team

Marta Porczynska

Team Assistant & Event Manager

[email protected]

+39 040 671402

Martina Vono

Team Assistant & Event Manager

[email protected]

+39 040 671548

Assicurazioni Generali

P.za Duca degli Abruzzi 2

34132 Trieste, Italy

Fax: +39 040 671338

e-mail: [email protected]

www.generali.com

Spencer Horgan

Head of Investor & Rating Agency Relations

[email protected]

+44 20 7265 6480

Stefano Burrino

Senior IR Manager

[email protected]

+39 040 671202

Emanuele Marciante

Senior IR Manager - Credit & Rating Agency Relations

[email protected]

+39 040 671347

Veronica Cherini

IR Manager

[email protected]

+39 040 671488

Rodolfo Svara

IR Manager

[email protected]

+39 040 671823

36

© Generali


Thank you

37

© Generali


GENERALI GROUP 9M 2014 Results

Generali Group 9M Results 2014

Business

results generali group

net profit profit loss

expenses net

results agenda

net operating eps

net income

year profit

segment profit loss