March 2006
Generali Group
2012 First-Half Results
Milan, March xxx, 2010 August 2, 2012
2
Assicurazioni Generali Group – 1H 2012 results
Agenda
III. Final remarks
II. Group Financials
Page 3
Page 5
Page 26
IV. Backup Page 28
I. 1H 2012 results overview
3
Assicurazioni Generali Group – 1H 2012 results
Agenda
I. 1H 2012 results overview
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 1H12 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.
1H 2012 results at a glance
4
0.3 2.4
Assicurazioni Generali Group – 1H 2012 results
Operating result (Euro m)
2,408 2,343
-0.1%(1)
1H11 1H12
Combined ratio (%)
+0.6%pts.
1H11 1H12
1H 2012 results at a glance
I. OVERVIEW
Net result (Euro m)
117 130
+13%pts.
FY11 1H12
Solvency I ratio (%)
842806
+4.5%
1H11 1H12
(1) On like for like basis
97.1 96.5
Nat Cat impact
94.7 96.2
CoR without
Nat Cat impact
-1.5%pts.
5
Assicurazioni Generali Group – 1H 2012 results
Agenda
II. Group Financials
Profit & loss review
Life, P&C and financial segment profitability
Balance sheet and capital
6
Assicurazioni Generali Group – 1H 2012 results
Revenue development by segment
II. GROUP FINANCIALS
(1) Including investment contracts (Euro 1,637 m in 1H12, 1,530 m in 1H11)
(2) On like for like basis
1H11 1H12 Like for
like ∆
Gross written
premiums 35,853 35,648 +2.0%
Life(1) 23,842 23,230 +0.4%
P&C 12,011 12,418 +5.2%
(Euro m)
35,853 35,648
1H12 1H11
+2.0%(2)
Gross written premiums (Euro m)
7
Assicurazioni Generali Group – 1H 2012 results
Consolidation
adjustments
Total
operating result
Financial services
operating result
P&C
operating result
Operating holding
expenses
Life
operating result
1,651
755
211
-148
-126
2,343
1,663
799
211
-147
-118
2,408
1H12 total operating result (Euro m)
Operating result by segment
1H12
1H11
+6.6%
-0.1%
+2.4%
-5.9%
+1.1%
+3.1%
Like for like
II. GROUP FINANCIALS
Nat Cat impact 1H12 Euro 255 m
Nat Cat impact 1H11 Euro 33 m
8
Assicurazioni Generali Group – 1H 2012 results
Focus on non operating result
1H11 1H12 Like for
like
Non operating
investment income (470) (286) -40.8%
Non operating
holding expenses (330) (329) -0.1%
Net other
Non operating
expenses
(158) (161) +1.9%
Total
Non operating
result
(957) (776) -20.1%
(1)
II. GROUP FINANCIALS
(286)
(470)
12179
(7)
Non operating investment income (Euro m)
1H12 1H11
Δ Euro m
Net realised
gains
Net impair-ments
Fair Value thr. P&L
1H12 (18) (300) 32
1H11 (11) (479) 19
Δ(2) -5.9% -37.4% +121.5%
(1) Including interest expenses on financial debt
(Euro m)
(2) On like for like basis
9
Assicurazioni Generali Group – 1H 2012 results
1H11 1H12
Total operating result 2,408 2,343 -0.1%(1)
Non operating result (957) (776) -20.1%(1)
Consolidated result before
taxes and minorities
1,451 1,568 +13.9%(1)
Income taxes (481) (582) +21.0%
Result for discontinued
operations
(1) 27.1 n.m
Minorities (163) (171) +4.7%
Net result 806 842 +4.5%
II. GROUP FINANCIALS
Net income (Euro m)
(1) On like for like basis
806 842
+4.5%
1H12 1H11
From operating result to net result
(Euro m)
10
Assicurazioni Generali Group – 1H 2012 results
Agenda
II. Group Financials
Profit & loss review
Life, P&C and financial segment profitability
Balance sheet and capital
11
Assicurazioni Generali Group – 1H 2012 results
Life business development
Gross written premiums (Euro m)
23,842 23,230
+0.4%(1)
II. GROUP FINANCIALS
1H11 1H12
(1) On like for like basis
(2) Including liabilities related to investment contracts
Net technical reserves(2) (Euro bn)
1H12 FY11R Traditional Unit Linked
Δ
301.5 0.9 2.4 304.9
+1.1%
Traditional Unit linked
253.6
47.9
254.5
50.3
316.6
FY11
15.1
Change in scope
258.3
58.3
Country 1H11 1H12
Italy 362 (603)
France 629 (1,688)
Germany 2,158 2,118
CEE 215 215
RoE 733 (841)
RoW 722 420
TOTAL 4,818 (378)
Net inflows by country (Euro m)
Italy: in 1H12 the impact from one-off
outflows related to corporate policies was
about Euro 1.2 bn
France: 1H12 negative trend is linked to
Group’s decision to reduce exposure to large
premium contracts, whose profitability is not
in line with required standards
Spain: during 2Q12 it was decided not to
renew a large Group contract, for about Euro
1.6 bn, which was not profitable enough
12
Assicurazioni Generali Group – 1H 2012 results
Life profitability - Operating result
(Euro m) 1H11 1H12
Like for
like
Technical Margin 3,093 2,988 +0.8%
Investment Result 1,206 1,151 +2.9%
Expenses (2,636) (2,489) +0.3%
Operating Result 1,663 1,651 +3.1%
Resilient life operating profitability despite challenging financial environment
Life Operating Result by driver(1)
Life operating
ratio on
Investments
0.53% 0.54%
1,651
147
(55)
(104)
1,663
1H12
Exp.
Inv.R
Tech.M
1H11
II. GROUP FINANCIALS
(1) For the definitions refer to the related section in the backup
13
Assicurazioni Generali Group – 1H 2012 results
Life investment strategy and yields(1)
Current
return(1)
Fixed
income
Equity Real
Estate(2)
1H11 1H12 1H11 1H12 1H11 1H12
Euro m 4,812 4,671 418 299 330 349
% 2.2 2.2 2.3 2.3 3.5 3.6
38.9% 41.9%
34.1% 34.0%
8.6% 8.4%
5.3% 4.9%
3.9% 3.8%
6.8% 4.6% 2.4% 2.4%
FY11 1H12
Other
Cash & cashequivalent
Real estate
Equity
Other fixedincome
Corporatebonds
Governmentbonds
Life segment own investments(1) (%)
Euro 249.3 bn Euro 258.6 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
II. GROUP FINANCIALS
Confirmed strategic reduction of cross-border exposure to EU
peripheral sovereign debt
Preference for domestic sovereign bonds for matching local
liabilities
Reallocation of liquidity buffer previously increased to face
market volatility
Strong level of profitability confirmed despite economic
environment
Management of duration risk in a very low yield environment
14 Life new business value and profitability
II. GROUP FINANCIALS
(Euro m) APE Margins on APE NBV
1H11 1H12 Historical
Like for like
1H11 FY11 1H12 1H11 1H12 Historical
Like for like
Italy 863 790 -8.5% -8.5% 20.9% 21.8% 23.8% 180 188 +4.1% +4.1%
France 532 581 +9.3% +9.3% 14.1% 13.7% 12.5% 75 73 -2.7% -2.7%
Germany 488 400 -17.9% -17.9% 17.3% 18.3% 20.7% 84 83 -1.5% -1.5%
CEE 81 74 -8.1% -3.2% 31.1% 35.8% 35.0% 25 26 +3.4% +9.1%
RoE 325 322 -1.0% -1.2% 26.4% 20.4% 24.9% 86 80 -6.5% -6.7%
RoW 224 112 -50.0% +1.2% 33.4% 28.8% 38.2% 75 43 -42.8% -19.8%
Total 2,513 2,280 -9.3% - 4.8% 20.9% 20.4% 21.6% 525 493 -6.2% -2.0%
Resilient NBV at Euro 493 m (down 2.0% from 1H11), as a result of:
moderate contraction of APE (-4.8%), more marked in Italy and Germany
significant improvement of NBM (up by 1.2%pts. from year-end 2011 to 21.6%), thanks to more
favourable business mix and product features (average guarantee in Eurozone further decreases from
1.5% at year-end to 1.2% at half-year)
Assicurazioni Generali Group – 1H 2012 results
15
Assicurazioni Generali Group – 1H 2012 results
P&C gross written premiums
(Euro m) 1H11 1H12 Like for like
Italy 3,614 3,582 -0.9%
France 2,184 2,240 +2.6%
Germany 1,855 1,987 +7.1%
CEE 1,176 1,228 +8.2%
RoE 2,451 2,579 +4.3%
RoW 732 802 +46.2%
Total 12,011 12,418 +5.2%
II. GROUP FINANCIALS
(1) On like for like basis
Gross written premiums (Euro m)
12,011 12,418
1H12 1H11
+5.2%(1)
Significant growth driven by Personal Non-Motor and Commercial
Positive development of Motor in Germany and Spain, Italy still benefiting from pricing measures of
the last two years
Commercial still under competitive pressure in Italy and Spain, while CEE overperforming
16
Assicurazioni Generali Group – 1H 2012 results
P&C profitability - Operating result
(Euro m) 1H11 1H12
Like for
like
Technical Result 330 272 -21.0%
Investment Result 577 560 -1.3%
Other (108) (77) -29.4%
Operating Result 799 755 -5.9%
P&C Operating Result by driver(1)
P&C operating ratio on
Investments 2.22% 2.11%
755
31
(17)
(58)
799
1H12
1H11
Tech.R
Inv.R
Other
P&C operating result hit by nat cat development
II. GROUP FINANCIALS
(1) For the definitions refer to the related section in the backup
17
Assicurazioni Generali Group – 1H 2012 results
0.0 0.6
P&C profitability – Net combined ratio (1/2)
1H12 1H11
Combined ratio (%) Combined ratio by country (%)
97.1 96.5
Loss ratio Expense ratio
1H11
1H12
∆
Italy 97.2% 99.7%(1) +2.6%pts.
France 98.5% 98.4% -0.1%pts.
Germany 95.3% 95.8% +0.5%pts.
CEE 88.2% 87.5% -0.7%pts.
RoE 96.4% 96.1% -0.3%pts.
RoW 102.4% 96.9% -5.5%pts.
Total 96.5% 97.1%(2) +0.6%pts.
+0.6%pts.
Expense
ratio
Loss
ratio
27.6
69.5
27.6
68.9
II. GROUP FINANCIALS
(1) Excluding Nat Cat impact 1H12 Combined Ratio was 94.0%(1H11 97.2%)
(2) Excluding Nat Cat impact 1H12 Combined Ratio was 94.7% (1H11 96.2%)
18
Assicurazioni Generali Group – FY 2009 results
5.8
21.7
-0.1 +0.15.9
21.8
P&C profitability – Net combined ratio (2/2)
1H12 70.6 2.4 -3.5 69.5
1H11 71.4 0.3 -2.9 68.9
60
62
64
66
68
70
72
II. GROUP FINANCIALS
Loss ratio (%)
1H12 1H11
68.9 69.5 -0.8 +2.1 -0.7
Current
year(1)
NAT
CAT
Prior
years
1H12 1H11 Δ Admin Δ Acq.
Acq. costs
Adm. costs
27.6
Expense ratio (%)
Δ%pts
Reserving ratio (%)
1H12 1H11
-2.2%pts (1)
27.6
(1) Excluding natural catastrophes
+0.6%pts
+0.0%pts
280.6% 276.3%
(1) On an annualized basis
Current year Loss Ratio confirms good
quality of pricing and underwriting
Severe Nat Cat impact mainly due to the
Emilia earthquake, although properly
mitigated by reinsurance
Confirmed positive prior years
development and prudent reserving policy
19
Assicurazioni Generali Group – 1H 2012 results
P&C investment strategy and yields(1)
P&C segment own investments(1) (%)
Euro 34.4 bn Euro 35.5 bn
Current
return(1)
Fixed income Equity Real
Estate(2)
1H11 1H12 1H11 1H12 1H11 1H12
Euro m 425 469 72 54 257 222
% 1.8 2.0 1.8 1.8 4.3 4.1
28.0% 30.7%
26.8% 28.0%
8.6%
9.4%
9.1%
8.0%
15.8% 15.0%
10.0% 7.2%
1.7% 1.7%
FY11 1H12
Other
Cash & cashequivalent
Real estate
Equity
Other fixed income
Corporate bonds
Government bonds
II. GROUP FINANCIALS
(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
Confirmed de-risking strategy with limited impact on
current return of the portfolio
Slight increase of government bond exposure within
Fixed Income instruments
Preference for short term and low capital intensive
corporate bonds
20
Assicurazioni Generali Group – 1H 2012 results
68.5 67.4
Financial segment
Operating result (Euro m)
Third party AUM(3) (Euro bn)
Net fees and commissions (Euro m)
211 211
1H12 1H11
+2.4%(1)
449 415
1H12 1H11
-3.2%(2)
88.2 90.7
1H12 FY11
+7.6%(4) -1.1%pts
1H12 1H11
Cost/income ratio (%)
II. GROUP FINANCIALS
(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
Assicurazioni Generali Group – 1H 2012 results
Agenda
II. Group Financials
Profit & loss review
Life, P&C and financial segment profitability
Balance sheet and capital
22
Assicurazioni Generali Group – 1H 2012 results
(2)
17,359
15,486
73
(311)(63)
8421,335
IFRS Shareholders’ equity roll forward
Shareholders’
Equity FY11
Δ in AFS
Reserve
1H 2012
Net Result
Δ Currency
Translation
Reserve
Δ Cash Flow
Hedge
Reserve
Dividend Other Shareholders’
Equity 1H12
+12.1%
II. GROUP FINANCIALS
(Euro m)
Change in AFS reserve (Euro m)
(821)
35
(2,156)
1,316
(16)
AFS Reserve
FY11
Impact Equity Investments
Impact Bond Investments
Other AFS Reserve 1H12
23
Assicurazioni Generali Group – 1H 2012 results
17.8 18.1 20.8
23.5
Solvency I according to Italian regulation II. GROUP FINANCIALS
Required margin Available margin
1H12 FY11
117% 130%
(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
+ 1.0
+ 1.2
+ 0.5
+ 0.3
24
Assicurazioni Generali Group – 1H 2012 results
Group Embedded Value roll-forward
(Euro m)
(1) For the definitions refer to the related section within the backup
II. GROUP FINANCIALS
22,431
1,700
(311)
22,213
EV FY11 Normalised EVearnings
Investment and TaxVariances
Cash Dividend EV 1H12
Robust return on embedded value,
mainly driven by positive combined ratio
at 97.1% and Life NBV of Euro 493 m
Return on Embedded Value
RoEV (1) 15.2% Normalised RoEV (1) 0.8%
Group Embedded Value
€14.4 Group EV per share
Group EV 1H12
Out of which -1.5 bn due to the
decrease in interest rates
(1,608)
25
Assicurazioni Generali Group – 1H 2012 results
Economic Solvency
Economic Solvency Ratio based on Group Internal Model calibrated on 1year VAR at 99.95% confidence level
The ratio based on a 99.5% confidence level (consistent with a BBB rating) would be about 151% at 1H12
Available
Capital
Group
Risk Capital
29.0
(Euro bn)
Available
Capital
Group
Risk Capital
Group
AC
Group
RAC
Group
RAC
28.3
23.4 23.2
Economic Solvency Ratio
ESR = 121% ESR = 124%(1)
(1) ESR FY11 = AC FY11 (net of dividend 2011 equal to Euro 0.3 bn) divided by Risk Capital FY11
II. GROUP FINANCIALS
FY11 1H12
99,5%
Conf. Level
Group
RAC 18.0
ESR 159%
99,5%
Conf. Level
Group
RAC 18.7
ESR 151%
Group
AC
26
Assicurazioni Generali Group – 1H 2012 results
III. Final Remarks
Agenda
27
Assicurazioni Generali Group – 1H 2012 results
Final remarks
III. FINAL REMARKS
Excellent underlying P&C performance excluding Nat Cat events
Robust Life profitability in a challenging market environment
Resilient investment return notwithstanding de-risking action
Outlook of 2012 Operating Result confirmed
28
IV. Backup
Agenda
P&L
Balance sheet
Life
Definitions
Assicurazioni Generali Group – 1H 2012 results
29
IV. Backup
Agenda
P&L
Balance sheet
Life
Definitions
Assicurazioni Generali Group – 1H 2012 results
30 1H12 Total gross written premiums
IV. BACK UP
(Euro m) Total gross written premiums Gross life written premiums(1) Gross P&C written premiums
Country
GWP
YoY
% increase
Weight on
total GWP
GWP
YoY
% increase
Weight on
total GWP
GWP
YoY
% increase
Weight on
total GWP
(2) (2) (2)
Italy 9,650 -2.7% 27.1% 6,069 -3.8% 26.1% 3,582 -0.9% 28.8%
France 7,705 +3.0% 21.6% 5,465 +3.2% 23.5% 2,240 2.6% 18.0%
Germany 8,514 -0.8% 23.9% 6,527 -3.0% 28.1% 1,987 7.1% 16.0%
CEE 2,070 +7.0% 5.8% 842 +5.2% 3.6% 1,228 8.2% 9.9%
RoE 5,560 +6.2% 15.6% 2,981 +8.0% 12.8% 2,579 4.3% 20.8%
Of which:
Spain 1,333 +2.3% 3.7% 535 +0.8% 2.3% 797 3.3% 6.4%
Austria 1,353 -3.7% 3.8% 565 -10.5% 2.4% 787 1.9% 6.3%
Switzerland 1,041 +5.2% 2.9% 559 +6.6% 2.4% 482 3.6% 3.9%
RoW 2,148 +20.6% 6.0% 1,346 +8.6% 5.8% 802 46.2% 6.5%
Total 35,648 +2.0% 100.0% 23,230 +0.4% 100.0% 12,418 5.2% 100.0%
(1) Including investment contracts
(2) On like for like basis with constant exchange rates
Assicurazioni Generali Group – 1H 2012 results
31 1H12 Life premiums by country and business line(1)
(Euro m) Savings and
pension Protection
Unit/Index
linked Total
GDP YoY %
increase(2) GDP YoY %
increase(2) GDP YoY %
increase(2) GDP YoY %
increase(2)
Italy 5,537 - 3.8% 128 + 4.6% 261 - 12.7% 5,925 - 4.0%
France 4,237 + 16.0% 697 - 0.4% 412 - 51.0% 5,347 + 2.9%
Germany 2,810 - 8.1% 2,020 + 1.8% 1,697 + 0.5% 6,526 - 3.0%
CEE 516 + 2.9% 117 + 9.1% 209 + 9.1% 842 + 5.2%
RoE 1,079 - 3.5% 483 + 12.2% 1,405 + 17.2% 2,967 + 8.0%
Of which:
Spain 410 + 2.6% 121 - 2.7% 4 - 38.2% 535 + 0.8%
Austria 295 - 20.7% 127 + 2.6% 133 + 2.5% 555 - 11.3%
Switzerland 103 + 42.2% 63 + 12.7% 393 - 0.7% 559 + 6.6%
RoW 565 + 6.9% 343 + 17.4% 16 - 21.0% 924 + 9.9%
Total Life gross
direct premiums
14,743 + 0.9% 3,788
+ 4.1% 4,000 - 5.7% 22,532 + 0.2
IV. BACK UP
Assicurazioni Generali Group – 1H 2012 results
(1) Including investment contracts
(2) On like for like basis with constant exchange rates
32 1H12 P&C premiums by country and business line
(Euro m) Motor(1)
Personal Commercial Accident/
Health Total
GDP YoY %
increase(2) GDP YoY %
increase(2) GDP
YoY %
increase(2) GDP YoY %
increase(2) GDP YoY %
increase(2)
Italy 1,701 - 0.4% 435 + 2.7% 816 - 1.9% 577 - 5.3% 3,530 - 1.2%
France 584 - 2.9% 796 + 8.7% 482 + 3.3% 244 + 0.4% 2,107 + 3.0%
Germany 821 + 7.3% 711 + 4.9% 188 + 10.0% 265 + 10.4% 1,984 + 7.1%
CEE 493 - 5.7% 176 + 4.4% 318 + 11.2% 215 + 62.1% 1,201 + 8.0%
RoE 923 + 4.2% 552 + 5.0% 602 - 0.2% 426 + 7.7% 2,503 + 3.8%
Of which:
Spain 206 + 10.6% 215 + 9.9% 247 - 7.6% 112 + 0.8% 780 +2.6%
Austria 306 + 1.5% 167 + 2.8% 224 + 1.7% 78 + 2.4% 775 +1.9%
Switzerland 237 + 3.7% 110 - 2.3% 2 - 7.1% 130 + 8.6% 479 +3.4%
RoW 443 + 24.8% 8 + 1.0% 223 + 94.0% 75 + 70.9% 749 + 43.5%
Total P&C gross
direct premiums
4,964 + 2.6% 2,678
+ 5.6% 2,630 + 6.3% 1,802 + 8.3% 12,074 +4.9%
IV. BACK UP
(1) Including fleets
(2) On like for like basis with constant exchange rates
Assicurazioni Generali Group – 1H 2012 results
33
Loss
ratio
Expense
ratio
P&C - Combined ratio (%)
Total - Expense ratio (%)
68.9 69.5
27.6 27.6
16.216.1
11.0 10.9
1H12 1H11
1H12 1H11
1H12 1H11
96.5 97.1
1H12 technical ratios
IV. BACK UP
Life - Expense ratio (%)
Assicurazioni Generali Group – 1H 2012 results
34 1H12 combined ratio reconciliation
A Net earned premiums (net of consolidation adjustments) 10,564.8
B Consolidated net insurance benefits and claims 7,338.8
Consolidated acquisition costs 2,307.9
Consolidated administration costs 652.0
Non insurance related administration costs(1) 39.4
Insurance related consolidated administration costs 612.5
C Total acquisition and insurance related administration costs 2,920.4
B/A Loss ratio 69.5%
C/A Expense ratio 27.6%
(B+C)/A Combined ratio 97.1%
D Other technical items 33.8
A-B-C-D Technical result 271.7
(1) Administration expenses related to service companies, real estates and other companies not belonging to P&C segment
(Euro m)
IV. BACK UP
Assicurazioni Generali Group – 1H 2012 results
35 1H12 technical ratios by country
(%) ITA FRA GER CEE RoE SPA AUT SWI RoW Consolidated
P&C Loss ratio
1H12 78.5 71.6 67.5 50.3 67.3 64.9 67.0 70.7 58.1 69.5
1H11 75.0 71.3 66.3 54.7 67.9 66.6 67.2 70.5 65.3 68.9
P&C Expense ratio
1H12 21.2 26.8 28.3 37.2 28.9 27.9 28.3 26.1 38.9 27.6
1H11 22.1 27.1 29.1 33.5 28.5 26.8 28.4 26.4 37.1 27.6
P&C Combined ratio
1H12 99.7 98.4 95.8 87.5 96.1 92.9 95.3 96.8 96.9 97.1
1H11 97.2 98.5 95.3 88.2 96.4 93.5 95.6 96.9 102.4 96.5
Life expense ratio by country
1H12 10.0 8.3 12.0 19.8 12.1 4.6 15.1 19.4 15.5 10.9
1H11 9.7 8.2 12.1 18.9 12.6 4.5 13.5 19.9 16.0 11.0
IV. BACK UP
Assicurazioni Generali Group – 1H 2012 results
36 Focus on operating result
1H11
1H12 Like for
like ∆
Italy 994 971 -2.4%
France 451 466 +3.4%
Germany 326 315 -3.2%
CEE 256 263 +2.8%
RoE 478 454 -5.1%
RoW 167 147 +40.5%
Operating result(1) 2,673 2,617 +0.3%
Op. holding expenses -147 -148 +1.1%
Consolidation Adj. -118 -126 +6.6%
Total operating
result
2,408 2,343 -0.1%
Operating result by country(1) (Euro m)
742
337
162 94
207 108
119
129
127 157
184
40
110
26 12
64
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
971
466
315 263
454
147
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Assicurazioni Generali Group – 1H 2012 results
37
1,663 1,651
Life operating result
Operating result (Euro m)
1H12 1H11
+3.1%
Operating result by country (Euro m)
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1H11 1H12 Like for
like
Italy 747 742 -0.7%
France 314 337 +7.5%
Germany 157 162 +3.0%
CEE 100 94 -6.2%
RoE 217 207 -4.8%
Of which:
Spain 51 52 +1.2%
Austria 29 30 +3.8%
Switzerland 66 60 -8.5%
RoW 128 109 +64.6%
Total 1,663 1,651 +3.1%
Assicurazioni Generali Group – 1H 2012 results
38 Life net inflows by country
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Country (Euro m) 1H11 1H12 Like for like Δ
Italy 362 (602) - 266.3%
France 629 (1,688) - 368.5%
Germany 2,158 2,118 - 1.9%
CEE 215 215 + 4.0%
RoE 733 (841) - 216.9%
Of which:
Spain (115) (1,661) - 1,338.5%
Austria 116 38 - 67.0%
Switzerland 199 311 + 48.3%
RoW 722 420 + 16.5%
TOTAL 4,818 (378) - 108.7%
Assicurazioni Generali Group – 1H 2012 results
39
799755
P&C operating result
1H12 1H11
-5.9%
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1H11 1H12 Like for
like
Italy 185 119 -35.7%
France 137 129 -6.0%
Germany 142 127 -10.5%
CEE 142 157 +10.2%
RoE 172 184 +6.5%
Of which:
Spain 80 84 +4.4%
Austria 55 52 -4.4%
Switzerland 22 23 +5.8%
RoW 20 40 +67.7%
Total 799 755 -5.9%
Operating result (Euro m) Operating result by country (Euro m)
Assicurazioni Generali Group – 1H 2012 results
40 Other operating and non operating expenses by segment
(Euro m) Life Non Life Financial
1H11 1H12 1H11 1H12 1H11 1H12
Total net operating expenses (49.9) (27.9) (131.5) (103.0) (10.5) (46.8)
Restructuring costs (3.2) (2.7) (28.9) (14.6) (5.9) (4.6)
Other net non operating expenses(1) (61.4) (65.8) (37.2) (56.1) (18.0) (10.1)
Total net non operating expenses (64.5) (68.5) (66.1) (70.7) (23.9) (14.6)
(1) Other non operating expenses include mainly amortization of VOBA
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Assicurazioni Generali Group – 1H 2012 results
41
Assicurazioni Generali Group – 1H 2012 results
(Euro m) Life P&C Financial Total
Net impairments 1H11 1H12 1H11 1H12 1H11 1H12 1H11 1H12
Equity instruments 147 457 66 96 1 3 214 555
Fixed income 934 (2) 129 12 2 7 1,066 17
Real estate 5 19 0 5 0 0 5 24
Other investments(2) 317 7 104 65 (1) 9 419 81
Total net impairments 1,404 480 299 179 2 18 1,704 677
Of which
Operating net
impairments 1,222 362 0 0 3 15 1,225 378
Non operating net
impairments 181 118 299 179 (1) 3 479 300
Focus on impairments(1)
(1) Net of reverse impairments
(2) Including subsidiaries and associated companies
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42
Assicurazioni Generali Group – 1H 2012 results
(Euro m) Life P&C Financial Total
1H11 1H12 1H11 1H12 1H11 1H12 1H11 1H12
Net realized gains on Equities 451 85 31 (28) 1 0 510 57
Realised gains 813 305 102 47 3 0 945 353
Realised losses (362) (220) (71) (75) (2) 0 (435) (295)
Net realized gains on Fixed Income 447 178 11 4 2 0 461 183
Realised gains 620 1,853 52 81 3 1 677 1,935
Realised losses (173) (1,675) (40) (77) (1) (1) (216) (1,753)
Net realized gains on Real Estate 8 66 41 68 0 0 49 134
Realised gains 21 70 41 72 0 0 62 142
Realised losses (13) (4) 0 (4) 0 0 (14) (7)
Net realized gains on Other(2) 17 6 (39) 21 0 (1) (22) 26
Realised gains 43 6 0 21 0 1 44 29
Realised losses (26) (1) (39) 0 0 (2) (66) (3)
Total net realized gains 923 335 45 66 3 (1) 998 400
Operating net realized gains 979 418 0 0 3 0 1,008 418
Non operating net realized gains (55) (82) 45 66 0 (2) (11) (18)
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 Focus on non operating items: interest expenses on financial debt
319
1H11 1H12
Average cost (%) 5.39% 5.40%
Average maturity (years) 6.25 5.41
Total financial debt (Euro m) Interest expenses on financial debt (Euro m)
1H12 1H11
Average cost & maturity of financial debt (%)
327
35.9% 36.8%
51.8% 54.5%
12.3% 8.7%
1H11 1H12
Senior Sub/Hybrid Other
12,124 12,425
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Assicurazioni Generali Group – 1H 2012 results
44 Reclassified P&L account
Total
(Euro m) 1H11 1H12
Total Operating result 2,408 2,343
Net earned premiums 32,072 31,650
Net insurance benefits and claims (29,289) (30,995)
Acquisition and administration costs (5,835) (5,767)
Net fee and commission income and net income from financial service activities 478 395
Operating income from other financial instruments 5,661 5,665
Operating income from financial instruments at fair value through profit or loss (331) 1,727
of which net income from fin. assets and liabilities where the risk is borne by the policyholders (556) 1,293
Operating holding expenses (147) (148)
Net other operating expenses (200) (184)
Non-operating result (957) (776)
Non-operating income from other financial instruments (489) (318)
Non-operating income from financial instruments at fair value through profit or loss 2 32
Non-operating holding expenses (330) (329)
Interest expenses on financial debt (319) (327)
Other non-operating holding expenses (11) (2)
Net other non-operating expenses (141) (161)
Earnings before taxes 1,451 1,568
Income taxes (481) (582)
Result from discontinued operations (1) 27
Consolidated result of the period 969 1,012
Result of the period attributable to minority interests (163) (171)
Result of the period 806 842
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Assicurazioni Generali Group – 1H 2012 results
45
(Euro m) Life Non life Financial(1)
Unallocated holding
expenses Consolidation
adjustments Total
Total Operating result 1,663 799 211 (147) (118) 2,408
Net earned premiums 21,764 10,308 - - - 32,072
Net insurance benefits and claims (22,175) (7,099) - - (15) (29,289)
of which var. of provisions related to unit linked business 626 - - - - 626
Acquisition and administration costs (2,527) (2,856) (453) - - (5,835)
Net fee and commission income and net income from financial service activities 89 - 449 - (61) 478
Operating income from other fin. Instruments 4,979 563 153 - (34) 5,661
Operating income from fin. Instruments at fair value through profit or loss (417) 14 72 - - (331)
of which net income from fin.assets and liabilities where the risk is borne by the policyholders (556) - - - - (556)
Operating holding expenses - - - (147) - (147)
Net other operating expenses (50) (132) (11) - (8) (200)
Non-operating result (301) (301) (23) (330) (3) (957)
Non-operating income from other fin.instr. (236) (254) 1 - - (489)
Non-operating income from fin. instr.at fair value through profit or loss - 2 - - - 2
Non-operating holding expenses - - - (330) - (330)
Net other non-operating expenses (65) (49) (24) - (3) (141)
Earnings before taxes 1,362 498 188 (477) (121) 1,451
Reclassified P&L account by segment - 1H11
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(1) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Report
Assicurazioni Generali Group – 1H 2012 results
46
(Euro m) Life Non life Financial(1)
Unallocated holding
expenses Consolidation
adjustments Total
Total Operating result 1,651 755 211 (148) (126) 2,343
Net earned premiums 21,085 10,565 - - - 31,650
Net insurance benefits and claims (23,656) (7,339) - - - (30,995)
of which var. of provisions related to unit linked business (1,212) - - - - (1,212)
Acquisition and administration costs (2,415) (2,928) (424) - - (5,767)
Net fee and commission income and net income from financial service activities 47 - 415 - (66) 395
Operating income from other fin. Instruments 4,986 536 195 - (53) 5,665
Operating income from fin. Instruments at fair value through profit or loss 1,632 23 72 - - 1,727
of which net income from fin.assets and liabilities where the risk is borne by the policyholders 1,293 - - - - 1,293
Operating holding expenses - - - (148) - (148)
Net other operating expenses (28) (103) (47) - (7) (184)
Non-operating result (269) (152) (19) (329) (7) (776)
Non-operating income from other fin.instr. (200) (113) (4) - - (318)
Non-operating income from fin. instr.at fair value through profit or loss - 32 - - - 32
Non-operating holding expenses - - - (329) - (329)
Net other non-operating expenses (69) (71) (15) - (7) (161)
Earnings before taxes 1,382 603 192 (477) (132) 1,568
Reclassified P&L account by segment - 1H12
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(1) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Report
Assicurazioni Generali Group – 1H 2012 results
47
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 2Q12/
2Q11
Life premiums(1) 12,340 11,503 10,543 12,009 12,815 10,415 -6.6%(2)
P&C premiums 6,792 5,219 4,931 5,823 6,999 5,419 +5.9%(2)
Total premiums 19,131 16,722 15,474 17,832 19,814 15,834 -2.7%(2)
Life net inflows 2,819 1,999 1,678 (651) 760 (1,138) -162.8%(2)
Combined ratio % 96.1% 96.9% 96.7% 96.4% 95.4% 98.8% (3) +1.9% pts.
Life operating result 881 782 315 564 819 832 +11.4%(2)
P&C operating result 393 406 405 357 411 344 -15.3%(2)
Financial operating
result 115 96 68 63 126 85 -9.3%(2)
Operating holding
expenses and cons. adj. (133) (132) (96) (155) (126) (148) +12.4%(2)
Total operating result 1,256 1,153 692 827 1,230 1,113 +2.1%(2)
Net result 616 190 20 31 567 274 +44.5%
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Focus on 2Q12 results
(1) Including investment contracts
(2) On like for like basis
(3) 94.8% excluding CAT
(Euro m)
Assicurazioni Generali Group – 1H 2012 results
48
IV. Backup
Agenda
P&L
Balance sheet
Life
Definitions
Assicurazioni Generali Group – 1H 2012 results
49 Consolidated balance sheet
(1) Including reinsurance amounts of technical reserve, deferred tax assets, deferred acquisition costs and other assets
(Euro bn) FY11 1H12
Intangible assets 10.4 10.0
Investments
Cash
346.7
25.6
350.4
20.3
Other credits 11.3 13.4
Tangible assets 4.9 4.9
Other assets (1) 24.2 38.2
Total Assets 423.1 437.3
(Euro bn) FY11 1H12
Shareholders’ Equity
(Group share) 15.5 17.4
Minority interests 2.6 2.7
Shareholders’ Equity 18.1 20.1
Operating debt 46.9 50.5
Financial debt 12.2 12.1
Technical reserves 325.0 318.6
Payables and other
provisions 9.0 10.2
Other liabilities 11.8 25.8
Total Liabilities and
Shareholders’ Equity 423.1 437.3
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Assicurazioni Generali Group – 1H 2012 results
50 1H12 Assets under management
Total
Euro 459.2 bn
Fixed income
instruments
Other
Real Estate
Equity
Available for sale
Loans
Real Estate
Group
participations
Held to maturity
Fin. Instr. at fair
value thr. P&L
Unit Linked
Third parties AUM
“Own Investments”(1)
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(1) For definitions refer to the related section in the backup
Cash & equival.
Cash & equival.
Assicurazioni Generali Group – 1H 2012 results
60.8% 22.2%
4.1%
0.6%
2.4%
3.9% 6.0%
317.0
50.2
5.1%
80.3%
4.8%
6.0%
3.9%
92.0
51
Total
Euro bn
Fixed income instruments
Of which bonds
Of which loans
Real estate
Other
Subs, ass. & JVs
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1H12 own investments at amortized cost and fair value(1)
Fixed income instruments
Of which bonds
Equity
Other
Investments at amortized cost
Investments at fair value
(1) Excluding unit linked and third parties
Cash & equivalents
Assicurazioni Generali Group – 1H 2012 results
205.0
93.0
19.0
90.3%
86.2%
7.9%
1.8%
74.6%
51.8%
22.8%
13.9%
9.5%
2.1%
317.0
52
(Euro m) Life P&C Financial Total(2)
Asset classes BV MV BV MV BV MV BV MV
Equity 12,656 12,656 2,840 2,840 603 603 16,099 16,099
Fixed income
instruments 218,147 220,743 24,166 24,155 14,631 14,834 254,532 257,319
Government 108,427 109,481 10,890 10,941 5,194 5,135 124,512 125,556
Corporate 88,079 89,423 9,939 9,881 2,764 2,741 100,321 101,582
Other fixed income 21,641 21,839 3,337 3,333 6,672 6,959 29,700 30,181
Real estate 9,757 12,327 5,340 8,252 24 38 15,121 20,616
1H12 book value and market value of own investments(1)
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(1) Excluding unit linked and third parties
(2) Net of consolidation adjustments
Assicurazioni Generali Group – 1H 2012 results
53 Quality of 1H12 fixed income portfolio
%
Current
return
Comprehensive
return
Life 2.2 5.3
P&C 2.0 4.3
By issuer (Euro bn)
Fixed income portfolio composition: Euro 254.5 bn
108.4 10.9 5.2
124.5
88.0 9.9
2.8
100.3
21.7 3.3
6.7
29.7
Life P&C Financials Total
Government Corporate Other fixed income
IV. BACK UP
Bond portfolio by rating (%)
31.1% 10.8% 40.3% 14.1%
2.8%
1.0%
AAA AA A BBB NIG NR
Average bond portfolio
duration (years) Life P&C
Government 7.4 5.9
Corporate 5.3 3.3
Assicurazioni Generali Group – 1H 2012 results
54
5.2108.4 10.9
Government bonds: Euro 124.5, 48.9% of total fixed income portfolio
Focus on 1H12 government bond portfolio
Split by rating (Euro bn) Total
AAA 39.1
AA 16.3
A 57.2
BBB 8.9
Not investment grade 2.8
Not rated 0.3
Split by country (Euro bn) Total Of which
domestic
Italy 53.6 46.6
Germany 10.6 8.1
France 21.6 16.7
CEE 7.9 5.6
RoE 23.8 7.7
RoW 7.0 3.2
42% 31%
18%
58% 69%
82%
Life P&C Financial
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Weight on own investments Split by accounting treatment
14.4% 85.6%
Amortized cost Fair Value
Assicurazioni Generali Group – 1H 2012 results
(1) Domestic exposure to Italian government bonds as at 31.12.2011 erroneously reported in the 2011 year-end results presentation has been restated to Euro 37.7 bn
(published: Euro 39.8 bn).
55 Peripheral government bond portfolio: focus on country exposure
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0.0
0.7
0.5
0.1
Italy
Germany
France
RoE
3.4
0.8
1.0
0.2
Spain
Germany
France
RoE
0.0
0.9
0.4
0.2 Italy
Germany
France
RoE
46.6
3.4 2.6 0.9
Italy
Germany
France
RoE
Italian government bonds(1): Euro 53.6 bn Spanish government bonds(2): Euro 5.4 bn
Portuguese government bonds: Euro 1.3 bn Irish government bonds: Euro 1.5 bn
Assicurazioni Generali Group – 1H 2012 results
(1) Domestic and German exposures to Italian government bonds as at 31.12.2011 erroneously reported in the 2011 year-end results presentation have been restated
respectively to Euro 37,7 bn (published: Euro 39,8 bn) and Euro 4,2 bn (published: Euro 2,1 bn).
(2) Including Spanish autonomous regions for Euro 0.7 bn (at 31/12/2011 the total Spanish exposure amounted to Euro 6.3 bn, including Euro 0.8 bn related to autonomous
regions)
56
Focus on 1H12 corporate bond portfolio
Split by rating (Euro bn) Total
AAA 30.7
AA 7.9
A 33.4
BBB 22.8
Not investment grade 3.6
Not rated 1.9
Split by industry (Euro bn) Life P&C
Financials 31.1 4.5
Covered bonds 28.9 2.3
Utilities 6.1 0.6
ABS 2.2 0.4
Telecom 4.0 0.7
Industrial 6.7 0.5
Other 9.1 1.0
30.2% 69.8%
Amortized cost Fair Value
34% 28% 9%
66% 72% 91%
Life P&C Financial
Weight on own investments Split by accounting treatment
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Assicurazioni Generali Group – 1H 2012 results
88.1 9.9 2.8
Corporate bonds: Euro 100.3 bn, 39.4% of total fixed income portfolio
57
Focus on 1H12 covered and financial corporate bond portfolios
Split by rating (Euro bn) Total
AAA 25.3
AA 1.8
A 3.9
BBB 1.5
Not investment grade 0.1
Not rated 0.0
Covered bonds(1): Euro 32.7 bn
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Split by country (Euro bn) Total
Italy 1.2
Germany 9.6
France 7.6
CEE 0.7
RoE 13.0
RoW 0.6
Split by rating (Euro bn) Total
AAA 2.7
AA 2.3
A 17.8
BBB 10.6
Not investment grade 2.3
Not rated 0.4
Financial corporate bonds(1): Euro 36.1 bn
Split by country (Euro bn) Total
Italy 5.3
Germany 5.9
France 5.1
CEE 1.0
RoE 12.3
RoW 6.6
Assicurazioni Generali Group – 1H 2012 results
(1) Including life, P&C and financial segment investments
58
Focus on 1H12 equity portfolio
Split by industry (Euro bn) Life P&C
Financials 2.0 0.8
Consumer 1.2 0.2
Utilities 0.9 0.1
Industrial 0.8 0.2
Other 1.8 0.5
Funds 5.9 1.0
5% 8% 2%
Life P&C Financial
%
Current
return
Comprehensive
return
Life 2.3 2.2
P&C 1.8 -0.4
Equity: Euro 16.1 bn
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Weight on own investments
Group net equity exposure
Gross
equity
exposure
Hedging PHs’
interest
Taxes
Min.
interest
Net
equity
exposure
Assicurazioni Generali Group – 1H 2012 results
16.1
5.0 (0.6) (10.2)
(0.0)
(0.2)
12.7 2.8 0.6
59
1H12 Group real estate assets (1/2)
Investment properties vs. self use Yield on investment properties
Self Use
14.5 %
Investment
properties
85.5 %
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(1) RoE includes Austria, Spain, Switzerland, Belgium and Netherlands
(2) RoW includes Israel, Latin America, Far East and US
% Current return
Life 3.6%
P&C 4.1%
Split by country
Total Book value
(Euro bn)
Weight of total
%
Total Market value
(Euro bn)
Weight of total
%
Italy 6.5 36% 9.7 40%
France 4.0 22% 5.4 22%
Germany 4.1 23% 4.1 17%
CEE 0.2 1% 0.2 1%
RoE (1) 3.1 17% 4.5 19%
RoW (2) 0.2 1% 0.2 1%
Total 18.1 100% 24.1 100%
% based on Market Value
Assicurazioni Generali Group – 1H 2012 results
60 1H12 Group real estate assets (2/2)
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Residential 10%
Retail 15%
Logistic 3%
Other 7% Office 65%
Direct Investments in leader countries
Split by country
Area
(sqm m)
Weight of Area
%
Market value
(Euro bn)
Weight of total
%
Italy 2.5 37% 8.5 39%
France 1.6 23% 5.1 24%
Germany 1.3 18% 3.4 15%
CEE 0.1 2% 0.2 1%
RoE (1) 1.4 20% 4.5 20%
RoW (2) 0.0 0% 0.2 1%
Total 6.9 100% 21.9 100%
(1) RoE includes Austria, Spain, Switzerland, Belgium and Netherlands
(2) RoW includes Israel, Latin America, Far East and US Assicurazioni Generali Group – 1H 2012 results
61 Investment yields(1)
Bonds and
Loans
Equities Investment
properties
Other Total
Return (%) 1H11 1H12 1H11 1H12 1H11 1H12 1H11 1H12 1H11 1H12
LIFE
Current 2.2 2.2 2.3 2.3 3.5 3.6 1.7 0.9 2.2 2.1
Total P&L 2.0 2.3 3.7 -0.1 3.6 4.2 -0.4 0.8 2.0 2.1
Comprehensive 1.2 5.3 1.5 2.2 3.9 3.9 -0.4 0.8 1.2 4.7
NON LIFE
Current 1.8 2.0 1.8 1.8 4.3 4.1 1.4 1.0 2.2 2.2
Total P&L 1.4 2.0 1.1 -2.3 5.0 5.2 0.9 1.0 1.8 2.1
Comprehensive 1.4 4.3 2.2 -0.4 5,0 5.2 0.9 1.0 1.9 3.8
TOTAL
Current 2.1 2.1 2.2 2.2 3.8 3.8 1.1 0.7 2.1 2.0
Total P&L 1.9 2.2 3.3 -0.4 4.1 4.4 -0.1 0.6 1.9 2.0
Comprehensive 1.2 5.1 1.8 1.7 4.3 4.2 -0.1 0.6 1.3 4.4
(1) For definitions refer to the related section in the backup
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Assicurazioni Generali Group – 1H 2012 results
62 2Q12 IFRS Shareholders’ equity roll forward
17,35918,002
15,486
12
(311)(64)
18275
(573)
-3.6%
IFRS Shareholders’ equity roll forward (Euro m)
Shareholders’
Equity FY11
Shareholders‘
Equity 1Q12
Δ in AFS
Reserve
2Q 2012
Net Result
Δ Currency
Translation
Reserve
Δ Cash Flow
Hedge
Reserve
Dividend Other Shareholders’
Equity 1H12
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Change in AFS reserve (Euro m)
(135)(65) (821)
(249)(372)
AFS Reserve
1Q12
Impact Equity Investments
Impact Bond Investments
Other AFS Reserve 1H12
Assicurazioni Generali Group – 1H 2012 results
63 AFS reserve breakdown
(Euro m) FY11 1Q12 1H12
Fixed income instruments (1,780) (93) (464)
Government (1,216) (193) (445)
Corporate (564) 100 (20)
Equity (382) (263) (398)
Investment funds and other 7 107 41
TOTAL (2,156) (249) (821)
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Assicurazioni Generali Group – 1H 2012 results
64
18.0 18.1
23.8 23.5
Regulatory Solvency I development in 2Q12
Required margin Available margin
1H12 1Q12
133% 130%
(Euro bn)
Main drivers of change
Available margin
Consolidated result:
Financial markets and other elements:
Required Margin
+ 0.4
- 0.7
+ 0.1
IV. BACK UP
Assicurazioni Generali Group – 1H 2012 results
65
130
121
118
142
125
126
Stress tests on Solvency I and Shareholders’ equity
Impact on solvency I ratio (%) Impact on Shareholders’ equity (Euro bn)
Total ratio 30.06.2012
Equities -30%
Interest rate +100bps
Interest rate -100bps
Credit spread +100bps
Real estate -10%
(1.5)
(2.1)
2.1
(0.8)
Equities -30%
Interest rate +100bps
Interest rate -100bps
Credit spread +100bps
(1) (1)
(1) Before hedging impact
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Assicurazioni Generali Group – 1H 2012 results
66
(344)
2,530
(307) (1,326)
196 270
(644)
1,032
(244)
1,308
2Q121Q124Q113Q112Q111Q114Q103Q102Q101Q10
Total comprehensive income(1)
(Euro m)
3M10 6M10 9M10 12M10 3M11 6M11 9M11 12M11 3M12 6M12
1,308 1,064 2,096 1,452 270 466 (860) (1,166) 2,530 2,186
+2,000 m
-1,000 m
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(1) For definitions refer to the related section in the backup
Assicurazioni Generali Group – 1H 2012 results
67 Financial debt schedule
0
500
1,000
1,500
2,000
2,500
3,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2024 2026
Hybrid Subordinated Senior Loans
Bonds
Financial debt breakdown by expiry date/call date (Euro m)
IV. BACK UP
Assicurazioni Generali Group – 1H 2012 results
(1) The chart considers the exercise of the call option on the Euro 750 m 6.9% subordinated bond on July 20th, 2012. This security has been refinanced through the issuance of a
new Euro 750 m 30nc10 subordinated bond ,callable in 2022 ,issued in July 10th 2012
(1)
(1)
68 1H12 technical reserves
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(Euro m) Traditional Linked TOTAL
Life net technical reserves(1)
Italy 80,495 5,711 86,206
France 65,433 13,448 78,882
Germany 76,689 13,014 89,704
CEE 5,537 1,369 6,906
GROUP TOTAL 254,536 50,324 304,860
(1) Including investment contracts for Euro 16,748 m
(Euro m) Motor Non Motor TOTAL
P&C net technical reserves
Italy 4,947 6,938 11,885
France 2,296 3,646 5,945
Germany 2,038 2,473 4,511
CEE 1,228 996 2,224
GROUP TOTAL 14,239 17,387 31,626
Assicurazioni Generali Group – 1H 2012 results
69 Operating ratio on investments(1)
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1H11 1H12 %pts
Italy 0.91 0.94 + 0.02
France 0.38 0.42 + 0.05
Germany 0.18 0.18 0.00
CEE 1.34 1.26 - 0.07
GROUP TOTAL 0.53 0.54 + 0.01
Life operating ratio on investments (%)
P&C operating ratio on investments (%)
1H11 1H12 %pts
Italy 1.51 1.02 - 0.49
France 2.55 2.39 - 0.17
Germany 2.35 2.21 - 0.14
CEE 4.20 4.58 + 0.38
GROUP TOTAL 2.22 2.11 - 0.10
(1) For the definitions refer to the related section in the backup
Assicurazioni Generali Group – 1H 2012 results
70 Number of shares(1)
Ordinary
Shares issued
(1)
Own
shares
(2)
Shares
outstanding
(1-2)
Weighted number of shares outstanding at 06.30.2011 1,540,874,660
shares outstanding at 12.31.2011 1,556,873,283 15,997,470 1,540,875,813
Capital increase - - -
Stock grant plan - - -
Exercise of stock options - - -
Generali shares purchase - (456) 456
Change in scope - - -
shares outstanding at 06.30.2012 1,556,873,283 15,997,014 1,540,876,269
Weighted number of shares outstanding at 06.30.2012 1,540,876,152
Potential (dilutive) shares:
Stock options - - -
Weighted number of shares outstanding at 06.30.2012
adjusted for the effects of all dilutive potential ordinary
shares.
1,540,876,152
Weighted number of shares outstanding at 06.30.2011
adjusted for the effects of all dilutive potential ordinary
shares.
1,540,874,660
(1) Calculation based on IAS 33
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Assicurazioni Generali Group – 1H 2012 results
71 Per share indicators
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(Euro) 1H12
Earnings per share(1) 0.55
Book Value per share(2) 11.3
ANAV per share(2) 9.2
Embedded Value per share(2) 14.4
(1) Calculated on the basis of weighted shares outstanding during six months 2012 (1.540.876.152)
(2) Calculated on the basis of shares outstanding at 30.06.2012 (1.540.876.269)
Assicurazioni Generali Group – 1H 2012 results
72
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Agenda
P&L
Balance sheet
Life
Definitions
Assicurazioni Generali Group – 1H 2012 results
73 Life new business: APE
(Euro m) APE Annual Premiums Single Premiums
1H11 1H12 Like for like 1H11 1H12
Like for like 1H11 1H12
Like for like
Italy 863 790 -8.5% 570 514 -9.8% 2,934 2,760 -5.9%
France 532 581 +9.3% 144 178 +23.4% 3,876 4,031 +4.0%
Germany 488 400 -17.9% 352 283 -19.5% 1,360 1,174 -13.7%
CEE 81 74 -3.2% 68 68 +5.8% 129 61 -50.2%
RoE 325 322 -1.2% 225 214 -4.8% 1,001 1,071 +7.0%
Austria 65 45 -30.4% 52 36 -31.6% 128 95 -25.8%
Spain 60 56 -6.0% 29 24 -17.5% 309 324 +4.8%
Switzerland 39 55 +36.6% 37 49 +31.8% 27 55 +101.9%
RoW 224 112 +1.2% 182 94 +5.2% 422 183 -15.4%
Total 2,513 2,280 - 4.8% 1,540 1,352 -6.4% 9,721 9,281 -2.4%
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Assicurazioni Generali Group – 1H 2012 results
74 Life new business: Value and margins
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(Euro m) NBV
1H11 1H12 Historical
Like for like
Italy 180 188 +4.1% +4.1%
France 75 73 -2.7% -2.7%
Germany 84 83 -1.5% -1.5%
CEE 25 26 +3.4% +9.1%
RoE 86 80 -6.5% -6.7%
Austria 15 4 -69.8% -69.8%
Spain 15 14 -4.7% -4.7%
Switzerland 16 13 -20.5% -21.7%
RoW 75 43 -42.8% -19.8%
Total 525 493 -6.2% -2.0%
Assicurazioni Generali Group – 1H 2012 results
Margins on APE
1H11 1H12 %pts
20.9% 23.8% +2.9%
14.1% 12.5% -1.5%
17.3% 20.7% +3.4%
31.1% 35.0% +3.9%
26.4% 24.9% -1.5%
22.6% 9.8% -12.8%
25.1% 25.4% +0.3%
41.7% 23.9% -17.8%
33.4% 38.2% +4.8%
20.9% 21.6% +0.7%
75 Value in force: Life & Health and asset gathering
Asset gathering (Euro m)
1H12 FY11
+3.9%*
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1,170 1,117
Assicurazioni Generali Group – 1H 2012 results
Life & Health (Euro m)
1H12 FY11
-4.8%*
6,816
8,233
1H12 Life & Health VIF valuation based on:
30/06/2012 economic scenario (interest rates, volatilities, market value of assets)
same market consistent methodology applied at FY11 (reference rates based on swap plus illiquidity premium)
EUR illiquidity premium (100% bucket): 87bps, EUR extrapolation entry-point: 30 years
FY11 operating assumptions (mortality, surrender, expenses)
(*) on a like for like basis
76
IV. Backup
Agenda
P&L
Balance sheet
Life
Definitions
Assicurazioni Generali Group – 1H 2012 results
77
Assicurazioni Generali Group – 1H 2012 results
Definitions: P&L and balance sheet (1/2)
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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
78
Assicurazioni Generali Group – 1H 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)
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79 Definitions: Life NBV and VIF
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Annual Premium
Equivalent (APE)
is defined as new business annualised regular premiums plus 10% of single premiums
New Business Value
(NBV)
is the present value, at the point of sale, of the projected stream of after tax industrial profits expected to be
generated by the covered new business written in the year, taking into account the actual acquisition costs
incurred in the year of sale, after allowance for:
the cost of financial guarantees and options granted to policyholders
the frictional costs of setting up and holding the required capital
the cost of non hedgeable risks
NBV is defined as the sum of quarterly NBV, calculated with beginning of period economic and operating
assumptions
New Business Margin
(NBM)
is defined as the New Business Value divided by Annual Premium Equivalent
Value In-Force (VIF)
Life & Health
is the present value of the projected stream of after tax industrial profits that are expected to be generated by
the covered business in force at the valuation date, after allowance for:
the cost of financial guarantees and options granted to policyholders
the frictional costs of holding the required capital
the cost of non hedgeable risks
Value In-Force
Asset Gathering
Retail asset gathering business relates to the group's two primary asset gatherers, BSI and Banca Generali.
The value of in-force asset gathering business in BSI is the present value of the projected stream of future
after-tax profits that are expected to be generated by the private banking arrangements which are in force at
the valuation date. For Banca Generali, the value of in-force business is the present value of the projected
stream of distribution margins and fees income, net of costs, that are expected to arise in Banca Generali and
in the group’s asset management companies, which is associated with the retail asset management products
in force at the valuation date. Note that since 2008, the value arising in Banca Generali relating to insurance
business has been considered as a look through in the Life Value In-Force.
Assicurazioni Generali Group – 1H 2012 results
80 Investor Relations Team
Salvatore Colotti (Tel.: +39-040-671317)
Head of Investor Relations & Head of Life Technical Department
Email: [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 Events
Email: [email protected]
Assicurazioni Generali
P.za Duca degli Abruzzi 2
34132 Trieste, Italy
Fax: +39 040 671338
e-mail: [email protected]
www.generali.com
Assicurazioni Generali Group – 1H 2012 results
81 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.
Assicurazioni Generali Group – 1H 2012 results
March 2006
Generali Group
2012 First-Half Results
Milan, March xxx, 2010 August 2, 2012