November 9, 2012
Generali Group 9M 2012 Results
2
Assicurazioni Generali Group –
9M 2012 results
Agenda
I. Overview
II. Group financials
III. Final remarks
IV. Backup
Page 3
Page 5
Page 24
Page 26
3Agenda
I. Overview9M 2012 results at a glance
Assicurazioni Generali Group –
9M 2012 results
Following the announcement of the sale of related stake, Migdal qualified as a non-current asset held for sale and discontinued operations.
Therefore, in this presentation, Migdal is excluded from all 9M12 figures, except as follows: net income; shareholders' equity; and the regulatory Solvency 1 margin. Except where specified, prior year
figures have not been adjusted.
Like for like comparisons are adjusted for the disposal of Migdal. See definition in the related section in the back-up.
4
Assicurazioni Generali Group –
9M 2012 results
Operating result (Euro m)
+9.4%(1)
9M11 9M12 9M11 9M12
9M 2012 results at a glanceI. OVERVIEW
Shareholders’ equity (Euro m)
+24.1%
FY11 9M12
Solvency I ratio (%)
FY11 9M12
(1) On like for like basis
1,133
825
+37.3%
Net result (Euro m)
+23%pts
5
Assicurazioni Generali Group –
9M 2012 results
Agenda
II. Group financials
Profit & loss review
Life and P&C segment profitability
Balance sheet and solvency I
6
Assicurazioni Generali Group –
9M 2012 results
Revenue development by segmentII. GROUP FINANCIALS
(1) Including investment contracts (Euro 2,669 m in 9M12, Euro 2,307 m in 9M11)(2) On like for like basis
9M11 9M12 Historical
∆
Like for like
∆
Gross written premiums 51,327 50,945 -0.7% +1.8%
Life(1) 34,385 33,500 -2.6% +0.4%
P&C 16,942 17,444 +3.0% +4.7%
(Euro m)
9M129M11
+1.8%(2)
Gross written premiums (Euro m)
7
Assicurazioni Generali Group –
9M 2012 results
Consolidation adjustments
Totaloperating result
Financial services operating result
P&C
operating result
Operating holdingexpenses
Life operating result
2,196
1,158
320
-221
-161
3,292
1,978
1,204
279
-214
-147
3,100
9M12 total operating result (Euro m)
Operating result by segment
9M12
9M11
+9.8%
+9.4%
+17.1%
-4.3%
+3.8%
+16.5%
Like for like
II. GROUP FINANCIALS
8
Assicurazioni Generali Group –
9M 2012 results
Focus on non operating result
9M11 9M12 Like for like
Non operating investment income (724) (304) -58.8%
Non operating holding expenses (496) (496) +0.1%
Net other Non operating expenses
(244) (246) +0.9%
Total Non operating result
(1,464) (1,046) -29.2%
(1)
II. GROUP FINANCIALS
(724)
(304)
(32)
422 30
Non operating investment income (Euro m)
9M129M11
(Euro m) Net
realised gains
Net impair-
ments
Fair Value thr.
P&L
9M 12 48 (372) 21
9M 11 80 (794) (9)
Δ(2) -34.3% -53.0% n.m.
(1) Including interest expenses on financial debt
(Euro m)
(2) On like for like basis
9
Assicurazioni Generali Group –
9M 2012 results
9M11 9M12
Total operating result 3,100 3,292 +9.4%(1)
Non operating result (1,464) (1,046) -29.2%(1)
Consolidated result before taxes and minorities
1,637 2,246 +46.6%(1)
Income taxes (584) (869) +48.9%
Result for discontinued operations
0 (22) n.m.
Minorities (228) (222) -2.4%
Net result 825 1,133 +37.3%
II. GROUP FINANCIALS
Net income (Euro m)
+37.3%
9M129M11
From operating result to net result
(1) On like for like basis
(Euro m)
10
Assicurazioni Generali Group –
9M 2012 results
Agenda
II. Group financials
Profit & loss review
Life and P&C segment profitability
Balance sheet and solvency I
11
Assicurazioni Generali Group –
9M 2012 results
Life business development
Gross written premiums (Euro m)
+0.4%(1)
II. GROUP FINANCIALS
9M11 9M12
(1) On like for like basis(2) Including liabilities related to investment contracts
Net technical reserves(2) (Euro bn)
9M12FY11R Traditional Unit Linked
Δ
301.5 3.2 4.7 309.4
+2.6%
Traditional Unit linked
253.6
47.9
256.8
52.6
316.6
FY11
15.1
Change in scope
258.3
58.3
Country 9M11 9M12
Italy 544 (535)
France 423 (1,949)
Germany 2,868 3,333
CEE 364 282
RoE 1,199 (611)
RoW 1,098 623
TOTAL 6,496 1,142
Net inflows by country (Euro m)
Italy: positive trend in 3Q12, although overall flows are negative due to the decision of not renewing low margin corporate policies during 1H12
France: negative trend linked to Group’s decision to reduce exposure to large premium contracts with low profitability
Germany: strong growth triggered by lower maturities and positive single premium development
12
Assicurazioni Generali Group –
9M 2012 results
Life profitability - Operating result
(Euro m) 9M11 9M12Like for like
Technical Margin 4,558 4,365 +0.1%
Investment Result 1,308 1,498 +26.2%
Expenses (3,888) (3,667) +0.1%
Operating Result 1,978 2,196 +16.5%
Increasing life operating profitability despite challenging financial environment
Life Operating Result by driver(1)
II. GROUP FINANCIALS
(1) For the definitions refer to the related section in the backup
Life operating ratio on investments 0.62% 0.71%
13
Assicurazioni Generali Group –
9M 2012 results
Life investment strategy and yields(1)
Current return(1)
Fixed income
Equity RealEstate(2)
9M11 9M12 9M11 9M12 9M11 9M12
Euro m 7,213 7,006 530 372 515 544
% 3.3 3.2 3.0 2.9 5.4 5.6
Life segment own investments(1) (%)
Euro 249.3 bn Euro 268.6 bn
(1) For the definitions refer to the related section in the backup. Starting from 1Q12, assets and liabilities of Group’s Israeli companies have been classified as “held for sale”
and are therefore excluded. Comparative figures have been restated accordingly.(2) Real estate current returns are gross of related expenses
II. GROUP FINANCIALS
Relevant increase in the value of own investments
reflecting the improved situation in the financial markets
Further reduction of cross border exposure to peripheral
EU government bond, replaced with domestic
government bonds and corporate bonds
14
Assicurazioni Generali Group –
9M 2012 results
Life New Business Annual Premium EquivalentII. GROUP FINANCIALS
(Euro m) APE
9M11 9M12 Like for like
Italy 1,197 1,106 -7.6%
France 738 742 +0.5%
Germany 671 621 -7.4%
CEE 111 108 -3.0%
RoE 488 447 -8.6%
RoW 330 159 +1.4%
Total 3,535 3,184 -5.3%
9M129M11
-5.3%(1)
Annual Premium Equivalent (Euro m)
(1) On like for like basis
Despite the negative economic environment and the continuous focus on profitability and capital
efficiency, APE slowdown is marginal (-5.3%) and the weight of annual premiums still predominant (59% of total APE)
15
Assicurazioni Generali Group –
9M 2012 results
P&C gross written premiums
(Euro m) 9M11 9M12Like for like
Italy 4,975 4,963 -0.2%
France 3,181 3,231 +1.6%
Germany 2,500 2,687 +7.5%
CEE 1,728 1,820 +8.4%
RoE 3,424 3,542 +3.0%
RoW 1,134 1,202 +34.1%
Total 16,942 17,444 +4.7%
II. GROUP FINANCIALS
(1) On like for like basis
Gross written premiums (Euro m)
9M129M11
+4.7%(1)
Positive growth, especially in Commercial and Personal Non-Motor
France and CEE drive the growth in Commercial
Growth of Motor in Germany and Spain
16
Assicurazioni Generali Group –
9M 2012 results
P&C profitability - Operating result
(Euro m)9M11(2) 9M12 Like for like
Technical Result 492 490 -5.1%
Investment Result 862 798 -5.6%
Other (150) (130) -14.4%
Operating Result 1,204 1,158 -4.3%
P&C Operating Result by driver(1)
Tech.R
Inv.R
Other
Resilient P&C operating profitability despite nat cat development
II. GROUP FINANCIALS
(1)
For the definitions refer to the related section in the backup(2)
9M11 split by driver has been changed (reclassification impact amounted to Euro 13.8 m): please refer to 9M 2012 management report for more details
P&C operating ratio on investments
3.38% 3.25%
17
Assicurazioni Generali Group –
9M 2012 results
P&C profitability - Net combined ratio (1/2)
9M129M11
Combined ratio (%)
Expense ratio
Loss ratio
0.0%pts.
II. GROUP FINANCIALS
Combined ratio by country
9M11 9M12
Italy 96.8% 97.6% +0.8%pts
France 98.8% 98.5% -0.2%pts
Germany 95.6% 94.9% -0.7%pts
CEE 88.7% 90.4% +1.7%pts
RoE 96.6% 96.3% -0.3%pts
RoW 102.6% 97.7% -4.9%pts
Total 96.6% 96.6% 0.0%pts
27.2
69.5
27.2
69.4
96.696.6
Loss ratio Expense ratio
18
Assicurazioni Generali Group –
FY 2009 results
5.9
21.2
0.0 +0.15.9
21.3
9M12 70.8 2.0 -3.3 69.5
9M11 71.6 0.6 -2.9 69.4
II. GROUP FINANCIALS
Loss ratio (%)
9M129M11
69.4 69.5-0.9 +1.3 -0.4
Currentyear(1)
NATCAT
Prioryears
9M129M11 Δ
Admin Δ
Acq.
Acq. costs
Adm. costs
27.2
Expense ratio (%)
Δ%pts
27.2
(1) Excluding natural catastrophes
+0.0%pts
+0.0%pts
Improved current year Loss Ratio due to
good quality of pricing and discipline in
underwriting
Severe Nat Cat impact mainly due to
the Northern Italy earthquake, although
properly mitigated by reinsurance
Confirmed positive prior years
development and prudent reserving
policy
P&C profitability - Net combined ratio (2/2)
Assicurazioni Generali Group –
9M 2012 results
19
Assicurazioni Generali Group –
9M 2012 results
P&C investment strategy and yields(1)
P&C segment own investments(1) (%)
Euro 34.4 bn Euro 36.3 bn
Current return(1)
Fixed income
Equity RealEstate(2)
9M11 9M12 9M11 9M12 9M11 9M12
Euro m 665 685 84 63 375 330
% 2.9 2.9 2.2 2.1 6.4 6.1
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
Slight increase of corporate bonds exposure with preference
for short term and high quality bonds
Maintained strong focus on asset diversification in the
corporate bonds segment
Continued reduction in the weight of equity and real estate
exposure, in line with the de-risking policy.
20
Assicurazioni Generali Group –
9M 2012 results
Financial segment
Operating result (Euro m)
Third party AUM(3) (Euro bn)
Net fees and commissions (Euro m)
9M129M11
+17.1%(1)
9M129M11
-1.3%(2)
9M12FY11
+10.6%(4) -3.0%pts(5)
9M129M11
Cost/income ratio (%)
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
(5) On like for like basis
21
Assicurazioni Generali Group –
9M 2012 results
Agenda
II. Group financials
Profit & loss review
Life and P&C segment profitability
Balance sheet and solvency I
22
Assicurazioni Generali Group –
9M 2012 results
60 4
(75)
1,1332,918
(311)
IFRS Shareholders’ equity roll forward
Shareholders’ Equity FY11
Δ
in AFS Reserve
9M 2012Net Result
Δ
Currency Translation
Reserve
Δ
Cash Flow Hedge Res.
Dividend Other Shareholders’ Equity 9M12
+24.1%
II. GROUP FINANCIALS
(Euro m)
Change in AFS reserve (Euro m) 2,624
195
76399
(2,156)AFS Reserve
FY11Impact Equity Investments
Impact Bond Investments
Other AFS Reserve 9M12
15,486
19,215
23
Assicurazioni Generali Group –
9M 2012 results
Solvency I according to Italian regulation II. GROUP FINANCIALS
Required margin Available margin
9M12FY11
117% 140%
(Euro bn)
Main drivers of change
Available margin
Consolidated result:
Financial markets and other elements:
Cap on locally admitted unrealized gains on real estate:
Required Margin
+1.3
+3.1
+0.5
+0.5
24
Assicurazioni Generali Group –
9M 2012 results
III. Final Remarks
Agenda
25
Assicurazioni Generali Group –
9M 2012 results
Final remarksIII. FINAL REMARKS
Excellent underlying P&C performance excluding Nat Cat events
Robust Life profitability in a challenging market environment
Restored balance sheet & capital position
Outlook of 2012 Operating Result confirmed
26
Assicurazioni Generali Group –
9M 2012 results
IV. BackupP&L and Balance Sheet
Definitions
27
Assicurazioni Generali Group –
9M 2012 results
IV. BackupP&L and Balance Sheet
Definitions
289M12 Total gross written premiumsIV. BACK UP
(Euro m) Total gross written premiums Gross life written premiums(1) Gross P&C written premiums
CountryGWP
YoY% increase
Weight on total GWP GWP
YoY% increase
Weight on total GWP GWP
YoY% increase
Weight on total GWP
(2) (2) (2)
Italy 13,628 - 1.7% 26.7% 8,665 - 2.5% 25.8% 4,963 - 0.2% 28.4%
France 10,537 + 0.2% 20.6% 7,306 - 0.4% 21.7% 3,231 + 1.6% 18.5%
Germany 12,801 + 3.7% 25.1% 10,114 + 2.7% 30.1% 2,687 + 7.5% 15.4%
CEE 3,065 + 5.5% 6.0% 1,245 + 1.6% 3.7% 1,820 + 8.4% 10.4%
RoE 7,661 + 1.0% 15.0% 4,120 + 0.7% 12.3% 3,542 + 3.0% 20.3%
Of which:
Spain 1,809 - 0.7% 3.6% 739 - 4.2% 2.2% 1,070 + 1.9% 6.1%
Austria 1,951 - 2.2% 3.8% 856 - 7.5% 2.5% 1,095 + 2.4% 6.3%
Switzerland 1,465 + 4.0% 2.9% 827 + 5.0% 2.5% 639 + 2.7% 3.7%
RoW 3,253 + 16.5% 6.4% 2,050 + 7.8% 6.1% 1,202 + 34.1% 6.9%
Total 50,945 + 1.8% 100.0% 33,500 + 0.4% 100.0% 17,444 + 4.7% 100.0%(1)
Including investment contracts(2)
On like for like basis
Assicurazioni Generali Group –
9M 2012 results
299M12 Life premiums by country and business line(1)
(Euro m)Savings and
pension ProtectionUnit/Index
linked Total
GDPYoY %
increase(2) GDPYoY %
increase(2) GDPYoY %
increase(2) GDPYoY %
increase(2)
Italy 7,867 - 2.6% 172 + 11.0% 388 -
11.6% 8,427 - 2.8%
France 5,465 + 7.9% 1,043 + 0.6% 622 -
42.1% 7,130 - 0.6%
Germany 4,627 + 4.7% 3,030 + 1.9% 2,457 + 0.0% 10,114 + 2.7%
CEE 758 + 2.3% 181 + 10.7% 306 - 4.9% 1,245 + 1.6%
RoE 1,568 - 3.6% 651 + 12.1% 1,883 - 2.0% 4,102 - 0.6%
Of which:
Spain 584 - 4.0% 149 - 3.1% 6 - 37.6% 739 - 4.2%
Austria 463 - 10.7% 188 + 2.4% 192 - 9.8% 843 - 7.8%
Switzerland 140 + 24.1% 96 + 14.5% 591 + 0.0% 827 + 5.0%
RoW 876 + 4.1% 495 + 17.0% 33 + 2.4% 1,404 + 8.3%
Total Life gross direct premiums
21,161 + 1.9% 5,572 + 4.4% 5,689 - 9.0% 32,422 + 0.2%
IV. BACK UP
Assicurazioni Generali Group –
9M 2012 results
(1)
Including investment contracts(2)
On like for like basis
309M12 P&C premiums by country and business line
(Euro m) Motor(1) Personal CommercialAccident/
Health Total
GDPYoY %
increase(2) GDPYoY %
increase(2) GDPYoY %
increase(2) GDP
YoY % increase(2
) GDPYoY %
increase(2)
Italy 2,376 - 1.0% 592 + 2.5% 1,092 - 2.4% 813 - 0.7% 4,874 - 0.9%
France 853 - 2.4% 1,140 + 3.9% 665 + 4.4% 370 + 1.9% 3,027 + 1.9%
Germany 1,066 + 7.7% 982 + 5.2% 244 + 8.6% 390 + 11.8% 2,682 + 7.4%
CEE 705 - 5.9% 264 + 2.7% 475 + 12.2% 340 + 60.1% 1,784 + 8.4%
RoE 1,306 + 3.5% 792 + 4.0% 769 - 2.0% 553 + 5.2% 3,420 + 2.6%
Of which:
Spain 291 + 8.7% 310 + 8.2% 302 - 9.5% 139 + 1.4% 1,042 + 1.6%
Austria 426 + 1.3% 246 + 3.0% 296 + 3.6% 114 + 2.5% 1,081 + 2.4%
Switzerland 329 + 2.8% 152 - 1.3% 3 - 8.3% 152 + 6.2% 636 + 2.5%
RoW 678 + 24.2% 15 + 15.6% 336 + 41.5% 100 + 60.1% 1,129 + 31.5%
Total P&C gross direct premiums
6,984 + 2.4% 3,785 + 4.0% 3,582 + 4.6% 2,566 + 10.1 16,917 + 4.3%
IV. BACK UP
(1)
Including fleets(2)
On like for like basis
Assicurazioni Generali Group –
9M 2012 results
31
Assicurazioni Generali Group –
9M 2012 results
Life new business: APE
(Euro m) APE Annual Premiums Single Premiums
9M11 9M12Historical Like for
like 9M11 9M12Historical Like for
like 9M11 9M12Historical Like for
like
Italy 1,197 1,106 -7.6% -7.6% 795 730 -8.2% -8.2% 4,023 3,765 -6.4% -6.4%
France 738 742 +0.5% +0.5% 215 225 +4.5% +4.5% 5,228 5,171 -1.1% -1.1%
Germany 671 621 -7.4% -7.4% 487 409 -15.9% -15.9% 1,839 2,119 +15.2% +15.2%
CEE 111 108 -2.3% -3.0% 94 100 +6.5% +6.3% 165 78 -52.4% -54.1%
RoE 488 447 -8.4% -8.6% 326 298 -8.7% -8.9% 1,622 1,494 -7.9% -7.9%
Spain 89 79 -10.5% -10.5% 39 33 -16.0% -16.0% 493 463 -6.2% -6.2%
Austria 85 73 -14.7% -14.7% 65 57 -13.3% -13.3% 198 160 -19.3% -19.3%
Switzerland 58 70 +20.4% +18.9% 54 63 +16.4% +15.0% 44 75 +69.7% +67.6%
RoW 330 159 -51.8% +1.4% 266 131 -50.5% +4.4% 648 279 -56.9% -10.8%
Total 3,535 3,184 -9.9% -5.3% 2,183 1,893 -13.3% -7.4% 13,524 12,906 -4.6% -2.2%
IV. BACK UP
32
Assicurazioni Generali Group –
9M 2012 results
Life net inflows by country IV. BACK UP
Country 9M11 9M12 Like for like Δ
Italy 544 (535) n.m.
France 423 (1,949) n.m.
Germany 2,868 3,333 + 16.2%
CEE 364 282 -
20.2%
RoE 1,199 (611) n.m.
Of which:
Spain (146) (1,709) n.m.
Austria 183 115 - 37.4%
Switzerland 357 476 + 30.1%
RoW 1,098 623 + 12.6%
TOTAL 6,496 1,142 - 81.1%
33
Assicurazioni Generali Group –
9M 2012 results
Loss ratio
Expense ratio
Life - Expense ratio (%) P&C - Combined ratio (%)
Total - Expense ratio (%)
69.569.4
27.2 27.2
16.3 16.4
11.3 11.2
9M129M11
9M129M11
9M129M11
96.6% 96.6%
RatiosIV. BACK UP
34
Assicurazioni Generali Group –
9M 2012 results
Ratios by country
(%) ITA FRA GER CEE RoE SPA AUT SWI RoW Consolidated
P&C Loss ratio
9M12 77.4 71.8 66.5 52.6 67.8 65.9 69.1 70.0 59.3 69.5
9M11 75.7 72.0 66.3 54.9 68.5 67.0 68.5 70.7 64.9 69.4
P&C Expense ratio
9M12 20.2 26.7 28.4 37.8 28.5 28.1 27.5 26.0 38.5 27.2
9M11 21.1 26.8 29.4 33.8 28.1 26.9 27.4 25.8 37.8 27.2
P&C Combined ratio
9M12 97.6 98.5 94.9 90.4 96.3 94.0 96.6 96.0 97.7 96.6
9M11 96.8 98.8 95.6 88.7 96.6 94.0 95.8 96.4 102.6 96.6
Life expense ratio by country
9M12 10.3 9.0 11.5 19.9 12.8 4.8 14.6 18.8 15.1 11.2
9M11 10.2 8.9 12.0 19.1 12.4 4.4 13.1 20.3 15.5 11.3
IV. BACK UP
35
Assicurazioni Generali Group –
9M 2012 results
Combined ratio reconciliation
9M11 9M12A Net earned premiums (net of consolidation adjustments) 15,367 15,763
B Consolidated net claims 10,668 10,949
Consolidated acquisition costs 3,260 3,358
Consolidated administration costs 959 983
Non insurance activity related administration costs(1) 46 56
Insurance activity related consolidated administration costs 913 927
C Total acquisition and administration costs 4,173 4,284
B/A Loss ratio 69.4 69.5
C/A Expense ratio 27.2 27.2
(B+C)/A Combined ratio 96.6 96.6
D Other technical items 34.6 40.2
A-B-C-D Technical result 492.2 489.8(1) Administration expenses related to service companies, real estate and other companies not belonging to P&C segment
(Euro m)
IV. BACK UP
36
Assicurazioni Generali Group –
9M 2012 results
Focus on operating result
9M11 9M12Like for
like ∆
Italy 1,325 1,432 +8.1%
France 401 529 +32.2%
Germany 471 463 -1.8%
CEE 351 349 -0.6%
RoE 659 700 +6.3%
RoW 254 201 +23.7%
Operating result(1) 3,461 3,674 +9.1%
Op. holding expenses (214) (221) +3.8%
Consolidation Adj. (147) (161) +9.8%
Total operating result
3,100 3,292 +9.4%
Operating result by country(1) (Euro m)
991
348 236 136335
150
275
181187
195
267
53
166
039
18
98
-2Italy France Germany CEE RoE RoW
Life P&C Financial
Operating result breakdown(1) (Euro m)
(1)
Operating result = operating result of life, P&C and financial segments, before holding expenses and consolidation adjustments
IV. BACK UP
37
Assicurazioni Generali Group –
9M 2012 results
Operating result by country
P&C operating result by market (Euro m)Life operating result by market (Euro m)
9M11 9M12 Like for like ∆
Italy 933 991 +6.2%
France 208 348 +67.3%
Germany 238 236 -0.8%
CEE 110 136 +23.9%
RoE 300 335 +11.6%
Of which:
Spain 80 88 +10.3%
Austria 52 51 -3.1%
Switzerland 101 90 -11.1%
RoW 188 150 +56.9%
Total 1,978 2,196 +16.5%
9M11 9M12 Like for like ∆
Italy 297 275 -7.3%
France 192 181 -5.8%
Germany 194 187 -3.7%
CEE 224 195 -12.8%
RoE 259 267 +3.2%
Of which:
Spain 112 114 +1.8%
Austria 73 67 -9.4%
Switzerland 35 38 +8.2%
RoW 38 53 +18.9%
Total 1,204 1,158 -4.3%
IV. BACK UP
38
Assicurazioni Generali Group –
9M 2012 results
Reclassified P&L account(Euro m) Total
9M11 9M12
Operating result 3,100 3,292Net earned premiums 46,692 45,847Net insurance benefits and claims (39,040) (46,972)Acquisition and administration costs (8,609) (8,487)Net fee and commission income and net income from financial service activities 693 590Operating income from other financial instruments 7,907 8,325Operating income from financial instruments at fair value through profit or loss (4,105) 4,463
Of which net income from fin. assets and liabilities where the risk is borne by the policyholders (4,147) 3,409
Operating holding expenses (214) (221)Net other operating expenses (224) (253)
Non-operating result (1,463) (1,046)Non-operating income from other financial instruments (714) (324)Non-operating income from financial instruments at fair value through profit or loss (9) 20Non-operating holding expenses (496) (496)
Interest expenses on financial debt (484) (493)
Other non-operating holding expenses (12) (3)
Net other non-operating expenses (244) (246)Earnings before taxes 1,637 2,246Income taxes (584) (869)Result from discontinued operations 0 (22)Consolidated result of the period 1,053 1,355Result of the period attributable to minority interests (228) (222)Result of the period 825 1,133
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39
Assicurazioni Generali Group –
9M 2012 results
(Euro m) Life Non life Financial(1)Unallocated holding
expensesConsolidation
adjustments Total
Operating result 1,978 1,204 279 (214) (147) 3,100
Net earned premiums 31,324 15,367 - - 0 46,692
Net insurance benefits and claims (28,357) (10,668) - - (15) (39,040)
of which var. of provisions related to unit linked business 2,997 - - - - 2,997
Acquisition and administration costs (3,732) (4,187) (691) - - (8,609)
Net fee and commission income and net income from financial service activities 126 - 657 - (90) 693
Operating income from other fin, Instruments 6,862 837 237 - (30) 7,907
Operating income from fin, Instruments at fair value through profit or loss (4,222) 24 93 - - (4,105)
of which net income from fin. assets and liabilities where the risk is borne by the policyholders (4,147) - - - - (4,147)
Operating holding expenses - - - (214) - (214)
Net other operating expenses (24) (171) (17) - (12) (224)
Non-operating result (482) (517) 35 (496) (3) (1,463)
Non-operating income from other fin. instr. (390) (400) 76 - - (714)
Non-operating income from fin. instr.at fair value through profit or loss - (9) - - - (9)
Non-operating holding expenses - - - (496) - (496)
Net other non-operating expenses (92) (107) (42) - (3) (244)
Earnings before taxes 1,496 687 314 (710) (150) 1,637
Reclassified P&L account by segment – 9M 2011IV. BACK UP
(1) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Report
40
Assicurazioni Generali Group –
9M 2012 results
(Euro m) Life Non life Financial(1)Unallocated holding
expensesConsolidation
adjustments Total
Operating result 2,196 1,158 320 (221) (161) 3,292
Net earned premiums 30,084 15,763 - - 0 45,847
Net insurance benefits and claims (36,023) (10,949) - - (1) (46,972)
of which var. of provisions related to unit linked business (3,279) - - - - (3,279)
Acquisition and administration costs (3,555) (4,295) (637) - - (8,487)
Net fee and commission income and net income from financial service activities 70 - 621 - (101) 590
Operating income from other fin. Instruments 7,314 764 297 - (51) 8,325
Operating income from fin. Instruments at fair value through profit or loss 4,322 35 106 - - 4,463
of which net income from fin.assets and liabilities where the risk is borne by the policyholders 3,409 - - - - 3,409
Operating holding expenses - - - (221) - (221)
Net other operating expenses (17) (160) (67) - (9) (253)
Non-operating result (341) (173) (26) (496) (11) (1,046)
Non-operating income from other fin.instr. (227) (91) (5) - (2) (324)
Non-operating income from fin. instr.at fair value through profit or loss - 20 - - - 20
Non-operating holding expenses - - - (496) - (496)
Net other non-operating expenses (114) (102) (21) - (9) (246)
Earnings before taxes 1,855 986 294 (717) (172) 2,246
Reclassified P&L account by segment – 9M 2012IV. BACK UP
(1) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Report
41
Assicurazioni Generali Group –
9M 2012 results
(Euro m) Life P&C Financial Total
Net impairments 9M11 9M12 9M11 9M12 9M11 9M12 9M11 9M12
Equity instruments 565 461 167 99 1 3 733 563
Fixed income 1,690 163 196 16 3 6 1,889 184
Real estate 22 36 (1) 5 0 0 21 41
Other investments(2) 319 8 133 91 8 7 459 106
Total net impairments 2,596 667 495 212 12 16 3,103 894
Of which
Operating net impairments
2,301 509 0 0 8 13 2,308 522
Non operating net impairments
295 158 495 212 5 3 794 372
Focus on impairments(1)
(1)
Net of reverse impairments(2)
Including subsidiaries and associated companies
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42
Assicurazioni Generali Group –
9M 2012 results
(Euro m) Life P&C Financial Total
9M11 9M12 9M11 9M12 9M11 9M12 9M11 9M12
Net realized gains on Equities 397 124 14 (20) 1 1 440 106
Realised gains 1,018 443 136 82 2 1 1,183 527
Realised losses (621) (319) (122) (102) (1) 0 (744) (421)
Net realized gains on Fixed Income 790 238 21 43 2 (1) 813 280
Realised gains 1,165 2,308 80 173 4 6 1,249 2,487
Realised losses (375) (2,070) (59) (130) (2) (7) (436) (2,207)
Net realized gains on Real Estate 73 70 73 72 0 0 146 142
Realised gains 82 76 73 76 0 0 155 153
Realised losses (9) (7) 0 (4) 0 0 (9) (11)
Net realized gains on Other(2) 110 11 (14) 26 81 (2) 177 34
Realised gains 142 11 1 26 81 1 224 38
Realised losses (32) 0 (15) 0 0 (3) (47) (3)
Total net realized gains 1,370 443 94 121 84 (2) 1,576 561
Operating net realized gains 1,465 512 0 0 3 0 1,495 513
Non operating net realized gains (95) (69) 94 121 81 (2) 80 48
Focus on realised gains(1)
(1) Excluding financial instruments at fair value through profit
and loss(2) Including subsidiaries and associated companies
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43
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 3Q12/ 3Q11
Life premiums(1) 12,340 11,503 10,543 12,009 12,815 10,415 10,271 +0.5%(2)
P&C premiums 6,792 5,219 4,931 5,823 6,999 5,419 5,027 +3.4%(2)
Total premiums 19,131 16,722 15,474 17,832 19,814 15,834 15,298 +1.5%(2)
Life net inflows 2,819 1,999 1,678 (651) 760 (1,138) 1,521 +2.1%(2)
Combined ratio % 96.1% 96.9% 96.7% 96.4% 95.4% 98.8% 95.7%(3) -1.0 pts.
Life operating result 881 782 315 564 819 832 545 +92.1%(2)
P&C operating result 393 406 405 357 411 344 404 -2.0%(2)
Financial operating result 115 96 68 63 126 85 109 +62.4%(2)
Operating holding expenses and cons. adj.
(133) (132) (96) (155) (126) (148) (109) +14.0%(2)
Total operating result 1,256 1,153 692 827 1,230 1,113 949 +43.1%(2)
Net result 616 190 20 31 567 274 291 n.m.
IV. BACK UP
Focus on 3Q12 results
(1) Including investment contracts(2) On like for like basis(3) 94.8% excluding CAT
(Euro m)
Assicurazioni Generali Group –
9M 2012 results
44Consolidated balance sheet
(1) Including reinsurance amounts of technical reserve, deferred
tax assets, deferred acquisition costs and other assets
(Euro bn) FY11 9M12
Intangible assets 10.4 9.9
Investments
Cash
346.7
25.6
360.0
23.9
Other credits 11.3 12.5
Tangible assets 4.9 4.9
Other assets (1) 24.2 38.2
Total Assets 423.1 449.4
(Euro bn) FY11 9M12
Shareholders’
Equity (Group share) 15.5 19.2
Minority interests 2.6 2.9
Shareholders’ Equity 18.1 22.1
Operating debt 46.9 50.8
Financial debt 12.2 12.2
Technical reserves 325.0 328.2
Payables and other provisions 9.0 9.6
Other liabilities 11.8 26.5
Total Liabilities and Shareholders’ Equity 423.1 449.4
IV. BACK UP
Assicurazioni Generali Group –
9M 2012 results
45
Assicurazioni Generali Group –
9M 2012 results
9M12 Assets Under Management
Total Euro 474.4 bn
Fixed income instruments 79.7%
Other 3.8%
Real Estate
4.6%
Equity
4.8%
Available for sale 60.5%
Loans
21.7%
Real Estate
3.9%
Group participations
0.6%
Held to maturity
2.4%Fin. Instr. at fair
value thr. P&L
3.9%
Unit Linked
Third parties AUM
“Own Investments”(1)
IV. BACK UP
(1) For the definitions refer to the related section in the backup
Cash & equival. 7.1%
Cash & equival. 7.1%
46
Assicurazioni Generali Group –
9M 2012 results
Investment yields(1)
Bonds and Loans Equities Investment properties
Other Total
% return 9M11 9M12 9M11 9M12 9M11 9M12 9M11 9M12 9M11 9M12
LIFE
Current 3.3% 3.2% 3.0% 2.9% 5.4% 5.6% 2.0% 1.4% 3.3% 3.1%Total P&L 2.7% 3.4% 0.7% 1.6% 6.0% 5.9% 1.5% 2.0% 2.7% 3.3%Comprehensive 1.4% 9.6% -14.4% 7.7% 6.1% 5.6% 1.5% 2.0% 0.5% 8.8%
NON LIFE
Current 2.9% 2.9% 2.2% 2.1% 6.4% 6.1% 2.1% 1.4% 3.3% 3.2%Total P&L 2.1% 3.1% -1.8% -1.8% 7.7% 7.4% 2.1% 1.8% 2.5% 3.1%Comprehensive 1.4% 7.6% -9.5% 4.0% 7.7% 7.3% 2.1% 1.7% 1.3% 6.5%
TOTAL
Current 3.2% 3.1% 3.2% 2.7% 5.7% 5.7% 1.5% 1.0% 3.2% 3.0%Total P&L 2.6% 3.3% 0.3% 1.1% 6.6% 6.3% 1.6% 1.4% 2.6% 3.1%Comprehensive 1.4% 9.1% -13.2% 7.0% 6.7% 6.1% 1.6% 1.4% 0.7% 8.0%
(1) For the definitions refer to the related section within the backup. Starting from 9M 2011 Israeli participating portfolio has been reclassified in unit-linked business. Comparative numbers have been restated accordingly
IV. BACK UP
473Q12 IFRS Shareholders’ equity roll forward
19,215
17,359
15,486(11)(14)
2911,584
+10.7%
IFRS Shareholders’ equity roll forward (Euro m)
Shareholders’
Equity FY11
Shareholders‘
Equity 1H12
Δ
in AFS Reserve
3Q 2012Net Result
Δ
Currency Translation
Reserve
Δ
Cash Flow Hedge
Reserve
Other Shareholders’
Equity 9M12
IV. BACK UP
Change in AFS reserve (Euro m)
641,308 763
(821)
211
AFS Reserve 1H12
Impact BondInvestments
Impact Equity Investments
Other AFS Reserve 9M12
Assicurazioni Generali Group –
9M 2012 results
6
48
Assicurazioni Generali Group –
9M 2012 results
Solvency I according to Italian regulation
Required margin Available margin
9M121H12
130% 140%
(Euro bn)
Main drivers of change
Available margin
Consolidated result:
Financial markets and other elements:
Required Margin
+0.3
+1.9
+0.2
IV. BACK UP
49Total comprehensive income(1)
(Euro m)
3M10 6M10 9M10 12M10 3M11 6M11 9M11 12M11 3M12 6M12 9M12
1,308 1,064 2,096 1,452 270 466 (860) (1,166) 2,530 2,186 4,036
+4,000 m
-1,00 m
IV. BACK UP
(1) For definitions refer to the related section in the backup
Assicurazioni Generali Group –
9M 2012 results
50AFS reserve breakdownIV. BACK UP
Assicurazioni Generali Group –
9M 2012 results
(Euro m) FY11 1H12 9M12
Fixed income instruments (1,780) (464) 844
Government (1,216) (445) 377
Corporate (564) (20) 467
Equity (382) (398) (187)
Investment funds and other 7 42 106
TOTAL (2,156) (821) 763
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Assicurazioni Generali Group –
9M 2012 results
IV. BackupP&L and Balance Sheet
Definitions
52
Assicurazioni Generali Group –
9M 2012 results
Definitions: P&L and balance sheet (1/2)
IV. BACK UP
Investments Returns are calculated on quarterly average asset base at IFRS book value and are defined as follows:
Current return: interests, dividends and similar income
Total P&L return: = current return + harvesting return (net realized gains, net impairments and net unrealized gains reported in P&L)
Comprehensive return:
i)
for fair value investment (AFS, FVthPL) = current return + total
change in fair value;
ii)
for investment at amortised cost (Real estates, loans, HtM) = Total P&L return
Investment returns for Life segment include income from bonds and loans issued by Group companies and investments in consolidated subsidiaries backing policyholders’
liabilities
Life Net Inflows Premiums inflows in the period less benefits paid to the policyholders. It does not include revaluation of
mathematical reserves
Life Operating Result consists of the following elements:i)
"Technical Margin" includes loadings, risk result, surrender result; it is gross of acquisition and administration costs
ii)
"Investment Result" includes interests and dividends, interest expenses on operating debt, G/L on foreign currency and investment expenses, net of policyholder benefits; it includes also operating realised and unrealised G/L, net of policyholder benefits
iii)
"Expenses" include acquisition and administration costs and other net operating items (it does not consider any loading charged to policyholders)
“Operating ratio on Investments” is calculated as Operating result on the average of Investments
at book
value
Like for Like changes The change of written premiums, net cash inflow, APE and NBV is on equivalent terms (on equivalent exchange rates and consolidation area). The change of operating results, AUM and technical reserves is calculated excluding Migdal Group from the comparative period
Operating Result Operating result of life, P&C and financial segments, before holding expenses and consolidation adjustments
53
Assicurazioni Generali Group –
9M 2012 results
Own Investments do not include unit/index linked investments and consist of the following asset class (*):i)
Fixed income instruments as quoted and unquoted bonds, loans including deposits under reinsurance business accepted and term deposits with credit institutions
ii)
Equity-like instruments as quoted and unquoted equities and alternative
investments
iii)
Real estate investments excluding own used properties
iv)
Cash and cash equivalent including Repo and Reverse repo
v)
Other investments as investments in non-consolidated subsidiaries, derivatives, receivables from banks or customers
(*)
Investment fund units are allocated to each asset class on a look through basis
Own investments for life segment include bonds and loans issued by Group companies and investments in consolidated subsidiaries backing policyholders’
liabilities.
P&C Operating Result consists of the following elements:I)
"Technical Result" is net of acquisition and administration costs
ii)
"Investment Result" includes interests and dividends, interest expenses on operating debt and investment expenses
iii)
“Other" includes other net operating items not considered in Technical Result and in Investment Result
“Operating ratio on Investments” is calculated as Operating result on the average of Investments
at book value
Total Comprehensive Income
Change in shareholders’
equity during the period related to income and expenses recognized in profit or loss or directly in shareholders’
equity resulting from transactions and events other than transactions with equity Owners.
Total Operating Result Operating result of life, P&C and financial segments, after holding expenses and consolidation adjustments.Operating result is a non-GAAP indicator and may differ from similar measure presented by other companies. Management uses this non-GAAP measure as key indicator in assessing Generali’s performance and believes that the presentation of these KPI provide useful and relevant information's to shareholders and users on Generali’s performance. Please refer to the ‘Methodological note on alternative performance measures’included in the Management Report for details on operating result methodology.”
Definitions: P&L and balance sheet (2/2)
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54
Assicurazioni Generali Group –
9M 2012 results
Investor Relations Team
Salvatore Colotti (Tel.: +39-040-671317)Head of Investor Relations & Head of Life Technical DepartmentEmail: [email protected]
Stefano Burrino (Tel.: +39-040-671202)Email: [email protected]
Emanuele Marciante (Tel.: +39-040-671347)Email: [email protected]
Veronica Cherini (Tel.: +39-040-671488)Email: [email protected]
Rodolfo Svara (Tel.: +39-040-671823)
Email: [email protected]
Marta Porczynska (Tel.: +39-040-671402)IR EventsEmail: [email protected]
Assicurazioni Generali P.za Duca degli Abruzzi 2
34132 Trieste, Italy
Fax: +39 040 671338 e-mail: [email protected]
www.generali.com
55
Assicurazioni Generali Group –
9M 2012 results
Disclaimer
Certain of the statements contained herein are statements of future expectations and other forward-looking statements.
These expectations are based on management's current views and assumptions and involve known and unknown risks and uncertainties.
The user of such information should recognise that actual results, performance or events may differ materially from such expectations because they relate
to future events and circumstances which are beyond our control including, among other things, general economic and sector conditions.
Neither Assicurazioni Generali S.p.A. nor any of its affiliates,
directors, officers employees or agents owe any duty of care towards any user of the
information provided herein nor any obligation to update any forward-looking information contained in this document.
The manager charged with preparing the company’s financial reports, Raffaele Agrusti, declares, pursuant to paragraph 2 of article 154-bis of the Consolidated Law on Financial Intermediation, that the accounting information contained in this presentation corresponds to document results, books and accounts records.
November 9, 2012
Generali Group 9M 2012 Results