generali group 2010 results
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TRANSCRIPT
March 2006
Generali Group
2010 Results
Milan, March xxx, 2010March 16, 2011
Assicurazioni Generali Group – FY 2010 results
2Agenda
IV. Backup
III. Group financials
Raffaele Agrusti - CFO
II. Insurance operations
Sergio Balbinot - Managing Director
I. FY 2010 results overview
Giovanni Perissinotto - Group CEO
Page 3
Page 14
Page 19
Page 45
Assicurazioni Generali Group – FY 2010 results
3Agenda
I. FY 2010 results overview
Giovanni Perissinotto - Group CEO
Assicurazioni Generali Group – FY 2010 results
42010: strong growth of results and dividend
Net result at Euro 1,702 m (+ 30.0%)
Life net inflows at Euro 16.1 bn
Cash dividend per share at Euro 0.45 (+28.6%)
Total operating result at Euro 4,077 m (+11.7%)
Shareholders’ Equity at Euro 17.5 bn (+5.0%)
I. FY 2010 RESULTS OVERVIEW
Life new business margin at ~20% and IRR at ~14%
Assicurazioni Generali Group – FY 2010 results
5
4,557 4,798 5,188 5,333
APE (Euro m)
20092007 2008 FY10
66.268.8
70.573.2
Gross written premiums (Euro bn)
A constant revenue growth despite the crisis….
20092007 2008 FY10
I. FY 2010 RESULTS OVERVIEW
+3.4% CAGR
+5.4% CAGR
Assicurazioni Generali Group – FY 2010 results
6…and a robust result recovery thanks to our consistent strategy…
4.83.9 3.7
4.1
Total operating result (Euro bn)
20092007 2008 FY10
I. FY 2010 RESULTS OVERVIEW
Net result (Euro bn)
20092007 2008 FY10
0.91.3
1.7
2.9
+11.7%
+97.7%
% increase from the lowest result
Assicurazioni Generali Group – FY 2010 results
7…based on business diversification and strong proprietary network…
I. FY 2010 RESULTS OVERVIEW
Business diversification
Operating result Life premiums P&C premiums
Distribution networks: proprietary networks represent our goodwill for the future
Life APE P&C
P&C 25%
Life 67%
Financial8%
Unit linked19%
Savings & protection62%
Health8%
Group11%
Accident & health15%
Motor 40%
Personal22%
Commercial23%
Direct9%
Agents45%
ProprietaryFAS17%
Broker15%
Banks13%
IndependentFAS1%
71% proprietary networks
Direct4%
Agents63%
Broker25%
Banks2%
Other6%
67% proprietary networks
Assicurazioni Generali Group – FY 2010 results
8…deep roots in continental Western Europe…
Other countries of operations
Core countries (1° or 2° rank in the market)(1)
+
+
=
(1) Generali ranks 2° in France excluding bancassurance operators. Including them, the ranking would be 4°
I. FY 2010 RESULTS OVERVIEW
1° or 2° rank in three core countries (Italy,
France(1), Germany) generating about 2/3 of
Group operating result and new business value
Strong economies of scale at
Country level
Centre driven cross border initiatives
(IT Integration, Motor Tariffs, Claims
Management,…)
Integrated asset management and real
estate platform
Euro 620 m savings on general expenses
since 2005 and
+3.8% CAGR of operating result in three
core countries since 2005 despite the crisis
Assicurazioni Generali Group – FY 2010 results
9…good positioning in emerging countries and direct channels…
1° in Slovakian P&C
1° in Hungarian P&C
1° in French life
1° in Germany
1° in Italian Life
1° in Italian P&C
I. FY 2010 RESULTS OVERVIEW
3.7
6.6
2005 2010
9.1%5.9%
2005 2010
Euro bn, CAGR % on total Group
126
532
2005 2010 2005 2010
Euro m, CAGR % on total Group
3.51.4
2005 2010
4.9%
2.2%
2005 2010
Euro bn, CAGR % on total Group
53
95
2005 2010
2.3%1.6%
2005 2010
Euro m, CAGR % on total Group
Emerging Markets(1)
Direct ChannelsTotal Premiums
Total Operating Result
Total Premiums
Total Operating Result
(1) Include CEE, Asia (excluding Israel and Japan), and Latin America
+20.5%
+12.4%
+12.2%
+33.4% 11.8%
3.6%
Assicurazioni Generali Group – FY 2010 results
10
16,65217,490
…whilst maintaining a solid capital position…
Shareholders’ Equity (Euro m) Solvency Margin (%)
FY09 FY10
+5.0%
140%
160%
187%
142%
FY09
Economic Solvency calibrated on AA rating
Solvency I
FY10
I. FY 2010 RESULTS OVERVIEW
(1)
(1) Including off balance sheet unrealized gains on real estate, 8%pts of which
subject to authorities’ authorization
Assicurazioni Generali Group – FY 2010 results
11…and an appropriate balance between dividend and profitable growth
2010 cash flow(1) before investment in new business (Euro 2.7 bn)
I. FY 2010 RESULTS OVERVIEW
Dividend
26%
Investment in
life new business 63%
Additional Capital buffer
5%
� IRR
~ 14%
� New business margin
~ 20%
(1) Cash flow from Life inforce, P&C and Financial segments, before investment in new business (P&L impact for life and increase of required capital for all segments), less
holding expenses (including interest expenses). For further details refer to slides 33, 40 and 57
Investment in P&C and
Financial Segment
6%
Assicurazioni Generali Group – FY 2010 results
122010 proposed cash dividend
Cash dividend per share (Euro)
0.450.35
0.430.33
0.15
0.54
0.28
0.75
0.90
200620042002 20052003 20082007 2009
+28.6%
(1) 2008 dividend included also Euro 0.63=dividend in shares, corresponding to 1/25 of the share, at the official price of 21 May 2009 (dividend payment date), leading to a total
dividend per share of Euro 0.78
(1)
I. FY 2010 RESULTS OVERVIEW
2010
� DPS at Euro 0.45, up 28.6%
� Confirmed ~40% payout ratio
� No need of capital raising during crisis periods
Payout ratio(2)
41.1%41.6%
24.6%
41.8%39.7%35.9%
41.7%41.5%
Assicurazioni Generali Group – FY 2010 results
13Outlook on Total Operating Result
I. FY 2010 RESULTS OVERVIEW
(1) Central point Outlook 2011 vs.
Actual 2010 (Euro 4,077 m)
Overperformance (Investment Result, volumes)
Not achieved mainly due to Nat Cat
Prudent harvesting implicit in the estimation
Technical improvement, normal incidence Nat Cat
Total Operating Result average growth of +6.7% vs. 2010 (1)
[Natural catastrophes & financial market conditions can influence the expected results]
Top of range achieved4.14.23.6Total
1.11.81.4P&C
3.02.62.2Life
ActualMax.Min.(Euro bn)
Outlook 2010: Top of range on Total Operating Result achieved
Outlook 2011: Good growth expected in the new “normal”
4.74.0Total
1.71.3P&C
3.22.7Life
Max.Min.(Euro bn)
Assicurazioni Generali Group – FY 2010 results
14Agenda
II. Insurance operations
Sergio Balbinot - Managing Director
Assicurazioni Generali Group – FY 2010 results
15Addressing Insurance Business Priorities
II. INSURANCE OPERATIONS
� Net Technical Reserves: +9.4%
� Improved surrender rate: 4.6%
� “At maturity guarantee”: 30% of total
guarantees offered
� Stable Net CoR net of CAT events
� Non-motor share close to 60%
� Cumulative Group program benefits
on motor pricing and claims
management: Euro 489 m
� Direct sales: total GWP Euro 3.5 bn,
+20%; weight on Life APE: 9.3%,
+1.7 %pts
� After HU, new direct initiative in SK;
3 further initiatives in pipeline
Life� Increasing life profitability
� Managing economic balance sheet
risks
Distribution & Commercial� Enhancing value creation in
distribution and customer base
Non Life� Pricing discipline
� Enhancing claims management
efficiency and effectiveness
�Focus on:
� Customer retention at maturity
� Contract duration and surrender
penalties
� Shift of annual guarantees to at
maturity
�Strengthening new product monitoring
through a central cockpit (Life Product
Analysis)
� Improved motor tariff segmentation:
� Wider spread of coefficients
� Tariff increases (IT, FR mainly)
� Portfolio pruning (IT, FR, ES,
CEE)
�Claims handling based on customer
oriented processes
� Customer care
� Body shop mgmt, fraud detection
and bodily injury mgmt
�Value extraction from customer
database through:
� Cross & up-selling
� Retention initiatives
� Customer’s referral activity
�Customer as an Asset project,
8 countries, 24m customers
�Multi-channel approach
� New direct initiatives steering
� Modernizing traditional networks
Priorities
Actions
Main Achievements
Assicurazioni Generali Group – FY 2010 results
16Main industrial results
Net Inflows
(Euro bn)
GWP
(Euro bn)
Loss ratio
(%)-0.9%
+1.1%
16.1+0.2%pts
71.371.1
Life P&C22.121.6
(1) Including investment contracts
(2) On like for like basis
Combined ratio
(%) +0.5%pts98.898.3
Reserving ratio
(%)
II. INSURANCE OPERATIONS
FY09 FY10
149149
+0%pts
GWP(1)
(Euro bn) +3.6%
16.1
48.9 51.1
FY09 FY10 FY09 FY10
FY09 FY10
FY09 FY10
FY09 FY10
NBV
(Euro m) -8.8%
IRR
(%)
13.913.1
+0.7%pts
FY09 FY10
FY09 FY10
1,0501,128
(2)
(2)
(2)
(2)
Assicurazioni Generali Group – FY 2010 results
17
Life
� Twice the market GWP increase:
� Products oriented to retention and up-selling
� Increase of corporate pension plans (baV)
Non Life
� Outperformance vs market CoR: 3.5%pts better
� Non-motor share increase (+0.7%pts up to 63.9%)
Operational efficiency
� Merger cost saving targets achieved ahead of
schedule (Euro 99 m since announcement)
Life
� Proprietary channels Life New Production: +11%
� Higher share of “at maturity guarantees” (54%) and
strong reduction in yearly guarantee (1.35%)
� Life Net Inflows: +51.4% to Euro 1,790m
Non Life
� Motor back to technical balance: actions on Motor
tariff (avg TPL new premium +9.5%) and flexibility
� Further acceleration of claims mgmt specialization
Operational efficiency
� Further General Expenses reduction: Euro -50m
(IT, traditional network, Alleanza-Toro integration)
Strategic overview: focus on core European markets
Germany
II. INSURANCE OPERATIONS
Italy+6.8%
12.9 13.8
FY09 FY10
Life GWP (Euro bn)
486
FY09 FY10
326
-33.0%
NBV (Euro m)
+1.2%
7.4 7.4
FY09 FY10
Non Life GWP (Euro bn)
102.4
FY09 FY10
99.6
-2.8%pts
CoR (%)
+12.5%
12.2 13.8
FY09 FY10
Life GWP (Euro bn)
174
FY09 FY10
173
-0.7%
NBV (Euro m)
-1.2%
3.0 3.0
FY09 FY10
Non Life GWP (Euro bn)
95.6
FY09 FY10
95.2
-0.4%pts
CoR (%)
(1) (1)
(1)
(1) On like for like basis
(1) (1)
(1)
Assicurazioni Generali Group – FY 2010 results
18Strategic overview: focus on core European markets
II. INSURANCE OPERATIONS
Life
� APE: Poland +25.3%, HU +20.1%, CZ -6.6%
� NBM still at 32.3%
Non Life
� Net CoR: 5.6%pts of Nat Cat impact
� Motor: new segmented tariff in PL, innovative low-
cost services and direct settlement in CZ
� Nat Cat pricing and coverage redesign
Operational efficiency
� 3% general expenses reduction in Ceska P. and
claims fraud detection strengthening in CEE
Life
� Focus on UL (+26.7% - 4x the market; UL share
18% vs market 13%(2) and Risk (+6.7%)
� NBM among the highest in the market: 12.5%
� Leverage on internet leadership (> Euro 1 bn)
Non Life
� Strong tariff increases and discount containment:
Motor +5%; Household +9%; Health +9%
� Nat Cat impact: 2.3%pts; underlying CoR +1.1%pts
Operational efficiency
� Claims Factory new organization and experts
network strengthening
CEE
France-7.9%
12.4 11.4
FY09 FY10
Life GWP (Euro bn)
127
FY09 FY10
146
+15.5%
NBV (Euro m)
+3.6%
3.8 3.9
FY09 FY10
Non Life GWP (Euro bn)
99.0
FY09 FY10
101.3
+2.3%pts
CoR (%)
+1.2%
1.7 1.8
FY09 FY10
Life GWP (Euro bn)
62
FY09 FY10
56
-13.9%
NBV (Euro m)
-1.7%
2.2 2.2
FY09 FY10
Non Life GWP (Euro bn)
87.9
FY09 FY10
93.2
+5.3%pts
CoR (%)
(2) Share on Individual Savings
(1) (1)
(1)
(1) On like for like basis
(1) (1)
(1)
Assicurazioni Generali Group – FY 2010 results
19Agenda
III. Group Financials
Raffaele Agrusti - CFO
Profit & loss review
Investments and shareholders’ equity
Life, P&C and financial profitability
Cash flow, Group EV and economic solvency
Assicurazioni Generali Group – FY 2010 results
20Revenue development by segment
III. GROUP FINANCIALS
(1) Including investment contracts for Euro 4,752.4 m in FY10
(2) For the definitions refer to the related section within the backup
-31.2%3,511-0.9%+0.3%16,133Life net inflows(2)
+2.8%
+2.1%
+4.5%
+3.8%
∆ historical
1,491
5,532
13,826
19,359
4Q10
+1.3%
+1.1%
+3.6%
+2.8%
∆ like for like
-9.3%5,333
Life annual
premium
equivalent(2)
-6.7%51,098Life(1)
-4.5%73,188
Gross written
premiums
+1.5%22,090P&C
∆ like for likeFY10
(Euro m)
Assicurazioni Generali Group – FY 2010 results
21
Consolidation
adjustments
Total
operating result
Financial services
operating result
P&C
operating result
Operating holding
expenses
Life
operating result
3,026
1,128
354
-288
-143
4,077
2,451
1,274
432
-269
-239
3,650
944
-24
-85
77
246
731
794
-40
-76
90
208
611
+39.8%
+19.0%
-15.2%
+18.1%
-11.7%
+19.5%
4Q10
4Q09
FY10 total operating result (Euro m)
Operating result by segment
FY10
FY09
4Q10 total operating result (Euro m)
�
+40.2%
+11.7%
-18.2%
-11.4%
-7.3%
+23.5%
�
III. GROUP FINANCIALS
Assicurazioni Generali Group – FY 2010 results
22Focus on operating result
+11.7%4,0773,650Total operating
result
+40.2%(143)(239)Consolidation Adj.
-7.3%(288)(269)Op. holding expenses
+29.6%713550Germany
-34.5%419639CEE
+8.4%
+54.8%
-16.1%
+6.8%
+29.8%
∆
392253RoW
4,5084,157Operating result(1)
692825RoE
754706France
1,5371,184Italy
FY10FY09
(Euro m)
Operating result by country(1)
596
354177
417293
205
149
308
218
199
48
144
951
23
761,188
51
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
III. GROUP FINANCIALS
1,537
754713
419
692
392
Assicurazioni Generali Group – FY 2010 results
23From operating result to net result
5(501)Non operating investment income
(32)(302)Net realised gains and net impairments on other
financial instruments
5196Result from discontinued operations (Intesa Vita)
(726)(737)Non-operating holding expenses
(316)(457)Minority interests
+32.7%2,8772,168Consolidated result of the period before taxes
and minority interests
(909)(498)Income taxes
+19.0%(1,200)(1,482)Total non operating result
37(199)Income and exp. from fin. assets at FV thr. P&L
+11.7%4,0773,650Total operating result
+30.0%1,7021,309Net result of the period
(479)(245)Net other non operating expenses
�FY10FY09(Euro m)
(1) Including interest expenses on financial debt
(1)
III. GROUP FINANCIALS
Assicurazioni Generali Group – FY 2010 results
24Investment portfolio
Own investments(1) at 31.12.10 (% on total)
(1) For the definitions refer to the related section within the backup
III. GROUP FINANCIALS
� Preference for government
bonds, representing 55.9% of
total bond portfolio
� Reduced exposure to
peripheral Euro government
bond
� High quality corporate bond
portfolio. 80.7% rated ≥ A
� Strategic decrease of equity
exposure in progress
39.3%
31.3% 31.0%
9.5% 9.0%
9.1% 8.5%
37.8%
4.9%4.8%
7.3%7.6%
FY09 FY10
Other
Real estate
Equity
Other fixed
income
Corporate
bonds
Government
bonds
Euro 321.7 bnEuro 307.3 bn
+4.7%
Assicurazioni Generali Group – FY 2010 results
25
17,49016,652
(71)(544)(2)
6661,702
(914)
IFRS Shareholders’ equity roll forward
Dividend∆ Currency
Translation
Reserve
FY 2010
Net Result
Other Shareholders’
Equity FY10
∆ Cash Flow
Hedge
Reserve
∆ in AFS
Reserve
Shareholders’
Equity FY09
+5.0%
III. GROUP FINANCIALS
(Euro m)
Change in AFS reserve (Euro m)
730
72
(184)
(198)
(787)
Other AFS Reserve FY10
Impact Bond Investments
Impact Equity Investments
AFS Reserve
FY09
Assicurazioni Generali Group – FY 2010 results
26Life profitability – operating result
+23.5%
-3.7%
+46.4%
+0.2%
�
3,0262,451Operating Result
(5,352)(5,159)Expenses
2,3821,627Investment Result
5,9965,984Technical Margin
FY10FY09(Euro m)
Strong increase of life operating result driven by investment driver
Life Operating Result by driver(1)
0.97%0.89%
Life operating
ratio on
Investments
3,026
2,451
(193)
755
12
FY10
Exp.
Inv.R
Tech.M
FY09
III. GROUP FINANCIALS
(1) For the definitions refer to the related section within the backup
Average
0.87%0.89% 0.93%
0.68%
0.89%0.97%
FY09FY07 FY08 FY10FY06
Assicurazioni Generali Group – FY 2010 results
27
III. GROUP FINANCIALS
Life gross written premiums (Euro m)
51,09848,894
FY10FY09
Life net inflows by country(2) (Euro m)
+3.6%(1)
-12.9%2,8233,188RoE
+35.6%1,6191,095RoW
-0.9%
-26.1%
+20.8%
-23.9%
+51.4%
Like for
like ∆
16,13316,083TOTAL
534700CEE
4,9234,077Germany
4,4445,841France
1,7901,182Italy
FY10FY09Country
(1) On like for like basis
(2) For the definitions refer to the related section within the backup
Confirmed superior life net inflows capacity
Assicurazioni Generali Group – FY 2010 results
28Life Technical Provisions(1)
III. GROUP FINANCIALS
(Euro bn)
+7.2% CAGR
221.0243.1 257.4 261.4
286.4313.4
FY09FY07 FY08 FY10FY06
7.919.1
286.4
313.4
FY10FY09 Traditional UnitLinked
+18.5%+7.8%∆%
42.6243.8FY 2009
50.5262.9FY 2010
FY05
(Euro bn)
313.4286.4 3.613.216.1
(6.0)
Net technical
provisions
FY10
+9.4%
Net technical
provisions
FY09
Policyh.
share of
invest.
result
Loadings, risk
and surrender
result
(to P&L)
Net
inflows
Exchange
rates
and other
(13.7)
49.3
16.1
(19.5)
Ratios on net technical provisions (average of the year) of:
SurrendersNet inflows
5.0%5.9%FY 2009
4.6%5.4%FY 2010
Cash in Cash out Net inflows
Surrenders
(1) Net technical provisions including investment contracts and excluding Intesa Vita
Assicurazioni Generali Group – FY 2010 results
29Life investment strategy and yields(1)
7.46.93.03.14.44.5%
692
FY10
602
FY09
Equity Real
Estate(2)
Fixed
income
Current
return(1)
592
FY09
6509,6219,108Euro m
FY10FY10FY09
41.5% 42.6%
32.7% 32.2%
8.4% 8.1%
9.0% 8.5%
3.4%3.4%
5.2%5.0%
FY09 FY10
Other
Real estate
Equity
Other fixed income
Corporate bonds
Government
bonds
Life segment own investments(1) (% on total)
Euro 255.0 bn Euro 268.9 bn
(1) For the definitions refer to the related section within the backup
(2) Real estate current returns are gross of related expenses
III. GROUP FINANCIALS
� Reduction of bond duration from 6.6 at 9M10 to 6.3 at FY10
� Increased exposure to government bonds
� Improvement of corporate bond portfolio diversification and preference for high quality issuers
� Current average reinvestment rate of fixed income instruments: 3.9%
� Decreased equity exposure with active management
Assicurazioni Generali Group – FY 2010 results
30
Assicurazioni Generali Group – FY 2010 results
Focus on guarantees
Total APE by type of guarantee
NIL
30%
Matched
2%
At maturity
19%
Yearly basis
49%
YE 2009
2009 Average Guarantee: 1.56%
� Yearly basis : 1.4%
� At maturity: 2.0%
NIL
29%
Matched
3%
At maturity
21%
Yearly basis
47%
YE 2010
2010 Average Guarantee: 1.58%
� Yearly basis : 1.4%
� At maturity: 2.0%
2.20
2.40
2.60
2.80
3.00
3.20
2003 2004 2005 2006 2007 2008 2009 2010
Yearly basis
At maturity
2010 Average Guarantee: 2.30%
� Yearly basis: 2.30%
� At maturity: 2.25%
Total Reserves development by type of guarantee
III. GROUP FINANCIALS
Assicurazioni Generali Group – FY 2010 results
31Life new business value and profitability
III. GROUP FINANCIALS
(Euro m) APE NBV Margins on APE
FY09 FY10Historical
�
Like for like� FY09 FY10
Historical�
Like for like� FY09 FY10 ∆ %pts
Italy 1,704 1,766 +3.6% +3.6% 486 326 -33.0% -33.0% 28.5% 18.4% -10.1%
Germany 984 976 -0.9% -0.9% 174 173 -0.7% -0.7% 17.7% 17.7% +0.0%
France 1,225 1,172 -4.4% -4.4% 127 146 +15.5% +15.5% 10.3% 12.5% +2.2%
CEE 158 172 +8.7% +5.3% 62 56 -10.1% -13.9% 39.1% 32.3% -6.8%
RoE 740 792 +7.1% +4.0% 173 197 +14.2% +8.6% 23.3% 24.9% +1.6%
RoW 377 455 +20.8% +7.3% 106 153 +43.5% +29.3% 28.2% 33.5% +5.3%
Total 5,188 5,333 +2.8% +1.3% 1,128 1,050 -6.9% -8.8% 21.7% 19.7% -2.0%
� Best year ever in terms of APE production (Euro 5,333 m)
� Solid new business profitability (19.7% APE margin) despite the negative impact of the extraordinary
widening of government spreads, which causes a significant reduction of APE margins (-4.6%pts at
Group level, -11.3%pts in Italy)
� Overall resiliency of value added by new business (Euro 1,050 m)
Assicurazioni Generali Group – FY 2010 results
32Investment in life new business
1st year P&L impact
In % of NBP
-0.9
3.7%
Capital absorption
In % of NBP
-0.6
2.5%
1 st year strain
In % of NBP
-1.5
6.2%
New Business Value
NBM
1.13
21.7%
Internal Rate of Return 13.1%
Payback period 7.1 years
New Business Value
NBM
1.05
19.7%
Internal Rate of Return 13.9%
Payback period 6.5 years
2009 2010
1st year P&L impact
In % of NBP
-1.0
3.8%
Capital absorption
In % of NBP
-0.7
2.8%
1 st year strain
In % of NBP
-1.7
6.6%
III. GROUP FINANCIALS
(Euro bn)
Assicurazioni Generali Group – FY 2010 results
33Expected Life cash flow generation
Assicurazioni Generali Group – FY 2010 results
III. GROUP FINANCIALS
Life & Savings expected free cash flows (Euro m)
2,130
879 686
459209
(919)(990)
2,008
(611)(720)
Existing Run Off
2010
New Business
2010
Free Cashflow
2010
Existing Run Off
2009
New Business
2009
Free Cashflow
2009
Capital
Profit
2010 Inforce
Expected undiscounted cash flows
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Years
1-5
Years
6-10
Years
11-15
Years
16-20
Years
21-25
Years
26-30
Years
31+
2010 New Business
Expected undiscounted cash flows
-2000
-1500
-1000
-500
0
500
1000
1500
2000
Years 0 Years
1-5
Years
6-10
Years
11-15
Years
16-20
Years
21-25
Years
26-30
Years
31+
Assicurazioni Generali Group – FY 2010 results
34P&C profitability - operating result
����
-11.4%
-11.7%
-2.4%
-32.7%
1,1281,274Operating Result
(252)(226)Other
1,1961,226Investment Result
184274Technical Result
FY10FY09(Euro m)
P&C Operating Result by driver(1)
3.07%3.58%P&C operating ratio on
Investments
1,128
(90)
(30)
(26)
1,274
FY10
FY09
Tech.R
Inv.R
Other
P&C operating result affected by increasing catastrophes
III. GROUP FINANCIALS
(1) For the definitions refer to the related section within the backup
Assicurazioni Generali Group – FY 2010 results
35P&C Gross Written Premiums
+8.8%+16.1%1,3121,130RoW
-1.7%+1.9%2,2462,204CEE
+3.6%+3.7%3,8923,754France
+2.1%
+1.0%
-1.2%
+1.2%
Historical�
+1.1%
-0.2%
-1.2%
+1.2%
Like for like�
4,2034,160RoE
22,09021,636Total
2,9983,034Germany
7,4407,353Italy
FY10FY09(Euro m)
� Robust signs of premium recovery in Motor in Italy and France
� Retail Non Motor accelerating in most of territories, in line with strategic guidelines
� Commercial resilient in spite of the economic scenario
III. GROUP FINANCIALS
Assicurazioni Generali Group – FY 2010 results
36
0.20.3
P&C profitability – Net combined ratio (1/2)
FY10FY09
Combined ratio (%) Combined ratio by country (%)
98.898.3
Loss ratio Expense ratio
-0.4%pts.95.295.6Germany
+5.3%pts.93.287.9CEE
+0.5%pts
-1.1%pts.
+2.5%pts.
+2.3%pts.
-2.8%pts.
∆%pts.
101.6102.7RoW
98.898.3Total
99.396.8RoE
101.399.0France
99.6102.4Italy
FY10FY09
+0.5%pts.
� Expense
ratio
� Loss
ratio
27.5
71.3
27.2
71.1
III. GROUP FINANCIALS
Assicurazioni Generali Group – FY 2010 results
37
149% 149%
0.4-0,1
21.1
6.0
21.5
6.1
P&C profitability – Net combined ratio (2/2)
71.1-3.61.373.4FY 2009
-3.9 71.31.973.3FY 2010
III. GROUP FINANCIALS
Loss ratio (%)
FY10FY09
71.1 71.3-0.1 0.6 -0.3
Current
year(1)
Nat
CAT
Prior
years
FY10FY09 ∆ Admin ∆ Acq.
Acq. costs
Adm. costs
27.5
Expense ratio (%)
∆%pts
Reserving ratio (%)
FY10FY09
0%pts
27.2
(1) Excluding natural catastrophes
� Impact from nat cat above normal levels,
due to increased frequency of natural
events
� Stable current year loss ratio, thanks to
improved performance of Motor
� Positive prior years development whilst
confirming prudent reserving policy
Assicurazioni Generali Group – FY 2010 results
38P&C investment strategy and yields(1)
P&C segment own investments(1) (% on total)
Euro 36.3 bn Euro 36.4 bn
8.79.02.63.53.84.0%
118
FY10
167
FY09
Equity Real
Estate(2)
Fixed
income
Current
return(1)
527
FY09
534847861Euro m
FY10FY10FY09
23.5% 25.9%
26.9% 26.9%
9.3% 7.3%
12.7% 11.0%
17.5%16.5%
11.4%11.2%
FY09 FY10
Other
Real estate
Equity
Other fixed income
Corporate bonds
Government
bonds
III. GROUP FINANCIALS
� Reduction of bond duration (from 4.7 at 9M10 to 4.3 at FY10) allowed to realise capital gains,
benefiting from lengthening duration strategy
� Preference for government bonds within fixed income investments
� Maintained exposure to corporate bonds allowed to sustain current return
� Current average reinvestment rate of fixed income instruments: 3.6%
� Reduced equity exposure due to the start of a progressive de-risking process
(1) For the definitions refer to the related section within the backup
(2) Real estate current returns are gross of related expenses
Assicurazioni Generali Group – FY 2010 results
39
70.5%63.7%
Financial segment
Operating result (Euro m)
Third party AUM(1) (Euro bn)
Net fees and commissions (Euro m)
354432
FY10FY09
-18.2%
894792
FY10FY09
+12.8%
93.079.3
FY10FY09
+17.3% +6.8%pts
FY10FY09
Cost/income ratio (%)
III. GROUP FINANCIALS
(1) Including only third party AUM related to financial segment companies
Assicurazioni Generali Group – FY 2010 results
40
0.7
0.9
(0.2)
0.2
0.9
1.6
(0.7)
(0.7)0.9
1.1
(0.3)
Total cash flow generation 2010
(1) Expected profit based on EV calculations (see slide 33)
(2) P&C and Financial Segment Operating Result net of taxes and minorities
(3) Holding expenses (incl. int. on financial debt) net of taxes and minorities
P&C and Financial
Life Group total
(Euro bn)
Profit(1)
Var. Req
Capital
Free Cash
Flow
Profit(2)
Var. Req
Capital
Net Free
Cash Flow
Dividend
Free Cash Flow
before dividend
Holding exp.(3)
Free Cash Flow
III. GROUP FINANCIALS
Free Cash
Flow
Assicurazioni Generali Group – FY 2010 results
41Group Embedded Value roll-forward
(Euro m)
(1) For the definitions refer to the related section within the backup
III. GROUP FINANCIALS
2,900
(545)(2,724)
27,337 26,968
EV FY09 EV earnings Investment and Tax
Variances
Cash Dividend EV FY10
Return on Embedded Value
RoEV (1)10.6% Normalised RoEV (1) 0.6%
Group Embedded Value
17.5€ Group EV per share
Group EV FY10
Including:
-3.1 bn due to spread widening and drop of stock
market in Italy
-0.7 bn due to the decrease in interest rates
Assicurazioni Generali Group – FY 2010 results
42
Italy 39%
France
23%
Germany
13%
Other
25%
Economic Solvency and Capital Allocation
� Economic Solvency Ratio based on Group Internal Model calibrated on
1year VAR at 99.95% confidence level
� Economic Solvency evolution mainly affected by spread widening
Available
Capital
Group
Risk Capital
34.3
(Euro bn)
Available
Capital
Group
Risk Capital
Sub.
Debt
Sub.
Debt
Group
EV
Group
EVGroup
RAC
Group
RAC
33.6
20.6(3)
18.1
Economic Solvency Coverage (ESC)
ESC = 160%(2)(3)ESC = 187%(1)
(1) ESC FY09 = AC FY09 (net of dividend 2009 equal to 0.5bn) divided by Risk Capital FY09
(2) ESC FY10 = AC FY10 (net of proposed dividend 2010 equal to 0.7bn) divided by Risk Capital FY10
(3) Preliminary figures
FY09 FY10
III. GROUP FINANCIALS
Sub.
Debt
Geographic breakdown
Breakdown of Group risk capital
after diversification
Group Risk
Capital
€20.6 bn
Property & Casualty: Resulting at
33.9% of Net Earned Premiums
Life & Health: Resulting at 4.4%
of Net Technical Provisions
Financial: Resulting at 1.3% of
AuM
Assicurazioni Generali Group – FY 2010 results
43
4.9
15.7
20.6
33.6
Economic Solvency
(Euro bn)
III. GROUP FINANCIALS
Solvency II
ratio 209%(1)
Economic Solvency Ratio
160%
Available
Capital
Group Risk
Capital(2)
(@ 99.50)
Additional Capital
to AA target(3)
Group Risk
Capital(3)
(@ 99.95)
(1) Solvency II ratio based on Group Internal Model calibrated on 1year VAR at 99.5% confidence level
(2) Solvency II SCR based on Group Internal Model calibrated on 1year VAR at 99.5% confidence level
(3) Based on Group Internal Model calibrated on 1year VAR at 99.95% confidence level
Assicurazioni Generali Group – FY 2010 results
44Global Added Value (GAV)
GAV (Euro m) 2010 GAV breakdown (%)
20102008 2009
+7.9%
12,01112,635
13,633
Employees
30.4%
State
6.4%
Shareholders
7.4%
Agents & FAs
39.0%
Credit capital
providers(1)
9.1%
Group
7.4%
Community
0.3%
(1) Total interest expense (including operating debt)
III. GROUP FINANCIALS
Assicurazioni Generali Group – FY 2010 results
45
IV. Backup
Agenda
P&L
Balance sheet
Life
Capital
Sustainability
Definitions
Assicurazioni Generali Group – FY 2010 results
46
IV. Backup
Agenda
P&L
Balance sheet
Life
Capital
Sustainability
Definitions
Assicurazioni Generali Group – FY 2010 results
47FY10 Total gross written premiums
IV. BACK UP
Gross P&C written premiumsGross life written premiums(1)Total gross written premiumsEuro (m)
22,090
1,312
580
1,350
1,372
4,203
2,246
2,998
3,892
7,440
GWP
+1.1
+8.8
+3.8
+0.3
-4.8
-0.2
-1.7
-1.2
+3.6
+1.2
(2)
YoY
% increase
30.2
1.8
0.8
1.8
1.9
5.7
3.1
4.1
5.3
10.2
Weight on
consoli-
dated
51,098
3,719
978
1,165
920
6,669
1,766
13,756
11,394
13,794
GWP
+3.6
+19.4
-0.2
+4.5
-18.4
-3.5
+1.2
+12.5
-7.9
+6.8
(2)
YoY
% increase
69.8
5.1
1.3
1.6
1.3
9.1
2.4
18.8
15.6
18.8
Weight on
consoli-
dated
100.0
6.9
2.1
3.4
3.1
14.9
5.5
22.9
20.9
29.0
Weight on
consoli-
dated
+2.22,515Austria
-10.82,292Spain
Of which:
-0.44,012CEE
(2)
+16.45,031
+2.873,188Total
RoW
+1.31,558Switzerland
-2.310,782RoE
+9.816,754Germany
-5.315,285France
+4.821,234Italy
YoY
% increaseGWPCountry
(1) Including investment contracts
(2) On like for like basis with constant exchange rates
Assicurazioni Generali Group – FY 2010 results
48Life premiums by country & business line
Life FY10
Of which:
1,7661.1%9.9%27.4%61.7%CEE
Total life gross
direct premiums
49,81311.5%8.0%18.9%61.6%
2,99752.1%10.2%0.8%36.9%RoW
9780.2%0.9%78.0%20.9%Switzerland
1,1560.0%19.2%25.1%55.8%Austria
92036.6%0.0%1.8%61.6%Spain
6,64911.0%3.9%56.9%28.2%RoE
13,7558.9%17.2%23.4%50.5%Germany
11,1786.5%7.7%14.7%71.1%France
13,46911.1%0.0%2.0%87.0%Italy
TotalGroupHealth
Unit/index
linked
Savings and
protection(Euro m)
IV. BACK UP
Assicurazioni Generali Group – FY 2010 results
49P&C premiums by country & business line
P&C FY10
Of which:
2,21222.9%14.8%11.4%51.0%CEE
Total P&C gross
direct premiums
21,51722.8%21.6%15.1%40.5%
1,26628.7%3.9%5.7%61.7%RoW
5780.5%28.3%23.4%47.8%Switzerland
1,32328.4%20.7%11.0%39.9%Austria
1,34133.3%26.8%12.4%27.5%Spain
4,05826.0%22.3%15.1%36.6%RoE
2,9949.3%39.3%15.3%36.1%Germany
3,65920.1%37.0%13.1%29.8%France
7,32826.8%11.4%18.7%43.1%Italy
TotalCommercialPersonal
Accident/
HealthMotor(1)(Euro m)
IV. BACK UP
(1) Including fleets
Assicurazioni Generali Group – FY 2010 results
50
Loss
ratio
Expense
ratio
P&C – Combined ratio (%)
Total – Expense ratio (%)
71.1 71.3
27.2 27.5
15.4 15.3
10.5 10.4
FY10FY09
FY10FY09
FY10FY09
98.3 98.8
Ratios
IV. BACK UP
Life – Expense ratio (%)
Assicurazioni Generali Group – FY 2010 results
51FY10 combined ratio reconciliation
184.3Technical resultA-B-C-D
56.0Other technical itemsD
98.8%Combined ratio(B+C)/A
27.5%Expense ratioC/A
71.3%Loss ratioB/A
5,582.2Total acquisition and insurance related administration costsC
1,216.0Insurance related consolidated administration costs
64.9Non insurance related administration costs(1)
1,280.9Consolidated administration costs
4,366.2Consolidated acquisition costs
14,451.4Consolidated net insurance benefits and claimsB
20,274.0Net earned premiums (net of consolidation adjustments)A
(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 – FY 2010 results
52Ratios by country
18.7
17.3
87.9
93.2
29.8
33.0
58.1
60.2
CEE
10.419.613.46.712.48.28.7FY10
10.517.413.75.214.36.79.2FY09
Life expense ratio by country
P&C Combined ratio
P&C Expense ratio
P&C Loss ratio
98.3
98.8
27.2
27.5
71.1
71.3
Consolidated
94.3
95.9
29.5
26.9
64.8
69.0
SWI
95.9
95.2
27.1
26.9
68.9
68.3
AUT
94.6
98.1
25.1
26.8
69.5
71.2
SPAFRA
102.4
99.6
22.5
22.1
79.9
77.5
95.699.0FY09
95.2101.3FY10
30.028.2FY09
30.128.1FY10
FY09
FY10
65.670.8
65.173.3
GERITA(%)
IV. BACK UP
Assicurazioni Generali Group – FY 2010 results
53Reclassified P&L account
(32)(302)Non-operating income from other financial instruments
2,9025,151of which net income from fin. assets and liabilities where the risk is borne by the policyholders
4,8337,967Operating income from financial instruments at fair value through profit or loss
5196Result from discontinued operations (Intesa Vita)
(726)(737)Non-operating holding expenses
1,309
(457)
1,766
(498)
2,168
(245)
(30)
(707)
(199)
(1,482)
(388)
(269)
10,889
782
(11,181)
(68,187)
64,036
3,650
FY09
1,702Result of the period
(316)Result of the period attributable to minority interests
2,018Consolidated result of the period
(909)Income taxes
2,877Earnings before taxes
(479)Net other non-operating expenses
(22)Other non-operating holding expenses
(704)Interest expenses on financial debt
37Non-operating income from financial instruments at fair value through profit or loss
(1,200)Non-operating result
(389)Net other operating expenses
(288)Operating holding expenses
12,685Operating income from other financial instruments
868Net fee and commission income and net income from financial service activities
(11,638)Acquisition and administration costs
(67,720)Net insurance benefits and claims
65,727Net earned premiums
4,077Total Operating result
FY10
Total(Euro m)
IV. BACK UP
Assicurazioni Generali Group – FY 2010 results
54
(199)---(199)0Non-operating income from fin. instr.at fair value through profit or loss
(6,457)----(6,457)of which var. of provisions related to unit linked business
5,151----5,151of which net income from fin.assets and liabilities where the risk is borne by the policyholders
7,967--148747,745Operating income from fin. Instruments at fair value through profit or loss
10,889(123)-3121,1529,549Operating income from other fin. Instruments
(1,006)
-
(737)
-
(737)
-
(269)
-
-
-
-
(269)
Unallocated holding expenses
(737)----Non-operating holding expenses
(269)----Operating holding expenses
2,168
(245)
(302)
(1,482)
(388)
782
(11,181)
(68,187)
64,036
3,650
Total
(239)
-
-
-
4
(110)
(1)
(9)
-
(239)
Consolidation adjustments
356
(71)
(5)
(76)
(37)
792
(783)
0
0
432
Financial(1)Non life
2,215
(48)
(188)
(236)
(83)
100
(4,961)
(54,001)
44,103
2,451
841Earnings before taxes
(125)Net other non-operating expenses
(109)Non-operating income from other fin.instr.
(433)Non-operating result
(272)Net other operating expenses
0.0Net fee and commission income and net income from financial service activities
(5,436)Acquisition and administration costs
(14,177)Net insurance benefits and claims
19,932Net earned premiums
1,274Total Operating result
Life(Euro m)
Reclassified P&L account by segment – FY 2009
IV. BACK UP
(1) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Report
Assicurazioni Generali Group – FY 2010 results
55
37---370Non-operating income from fin. instr.at fair value through profit or loss
(4,657)----(4,657)of which var. of provisions related to unit linked business
2,902----2,902of which net income from fin.assets and liabilities where the risk is borne by the policyholders
4,833--108444,681Operating income from fin. Instruments at fair value through profit or loss
12,685(7)-2801,15211,260Operating income from other fin. Instruments
(1,014)
-
(726)
-
(726)
-
(288)
-
-
-
-
(288)
Unallocated holding expenses
(726)----Non-operating holding expenses
(288)----Operating holding expenses
2,877
(479)
(32)
(1,200)
(389)
868
(11,638)
(67,720)
65,727
4,077
Total
(136)
(5)
13
7
3
(135)
-
(4)
-
(143)
Consolidation adjustments
295
(56)
(3)
(59)
(28)
894
(900)
0
0
354
Financial(1)Non life
2,843
(110)
(73)
(183)
(75)
109
(5,137)
(53,265)
45,453
3,026
889Earnings before taxes
(307)Net other non-operating expenses
31Non-operating income from other fin.instr.
(239)Non-operating result
(289)Net other operating expenses
0Net fee and commission income and net income from financial service activities
(5,602)Acquisition and administration costs
(14,451)Net insurance benefits and claims
20,274Net earned premiums
1,128Total Operating result
Life(Euro m)
Reclassified P&L account by segment – FY 2010
IV. BACK UP
(1) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Report
Assicurazioni Generali Group – FY 2010 results
56
3,650794
902
936
1,018
390
414
104
401
1,309
Net result (Euro m)
Total Operating result(1) (Euro m)
3Q1Q 4Q2Q FY
2009
2009
944 4,077
1,178
958
997
2010
3Q1Q 4Q2Q FY
3Q1Q 4Q2Q FY
Operating and net result by quarter
2010
3Q1Q 4Q2Q FY
1,702389
440
346
527
+11.7%
+30.0%
IV. BACK UP
(1) Starting from FY10, FX gains & losses incurred in P&C segment have been included into Non operating investment income. Comparative information have been restated
accordingly. Refer to the ‘Methodological note on alternative performance measures’ included in the Management Report for details
Assicurazioni Generali Group – FY 2010 results
57
6%-0.17-0.17Investment in P&C and Financial
5%0.15 -0.43 0.58Net Cash Flow
26%-0.70-- 0.70 Dividend
63%- 1.71 -0.72 - 0.99 Investment in Life New Business
100%2.730.462.27 Total Cash Flow Before investment in new business
-0.71-- 0.71Holding Expenses (net of tax and minorities)
3.440.46 2.98 Operating Cash Flow before investment in new
business
0.850.85 P&C and Financial (operating result less tax and
minorities)
2.590.46 2.13 Existing Business Life (expected EV profit)
Free Cash
Flow
Capital
Released/
RequiredProfit
2010 Free Cash Flow (Euro bn)
IV. BACK UP
Cash flow reconciliation
Assicurazioni Generali Group – FY 2010 results
58
2,451
3,026
Life operating result
Life operating result (Euro m)
FY10FY09
+23.5%
Life Operating result by country (Euro m)
IV. BACK UP
Of which:
-40.4%177297CEE
Total +23.5%3,0262,451
+60.8%293182RoW
+78.8%12871Switzerland
+90.4%6434Austria
+23.1%11089Spain
+57.3%417266RoE
+46.9%354241Germany
+31.1%596455France
+17.6%1,1881,010Italy
�FY10FY09
(Euro m)
Assicurazioni Generali Group – FY 2010 results
59Life net inflows by country
IV. BACK UP
Of which:
-72.1%(522)(303)Spain
+105.4%16379Austria
-1.1%545504Switzerland
-12.9%2,8233,188RoE
+35.6%1,6191,095RoW
-0.9%
-26.1%
+20.8%
-23.9%
+51.4%
Like for like ∆
16,13316,083TOTAL
534700CEE
4,9234,077Germany
4,4445,841France
1,7901,182Italy
FY10FY09Country
Assicurazioni Generali Group – FY 2010 results
60
1,274
1,128
P&C operating result
FY10FY09
-11.4%
IV. BACK UP
Of which:
-32.2%218322CEE
Total -11.4%1,1281,274
+47.3%4833RoW
-8.3%4650Switzerland
+11.4%10291Austria
-30.6%105152Spain
-44.6%199360RoE
+19.2%308258Germany
-39.3%149246France
+271.4%20655Italy
�FY10FY09
(Euro m)
P&C operating result (Euro m) P&C Operating result by country (Euro m)
Assicurazioni Generali Group – FY 2010 results
61Other operating and non operating costs by segment
FinancialNon LifeLife
(56.5)
(36.7)
(19.8)
(28.7)(1)
FY10
(44.8)(63.0)(76.3)(26.2)(15.2)Restructuring costs
(37.2)(1)(288.7)(271.7)(74.6)(83.4)TOTAL NET OPERATING EXPENSES
(71.2)
(26.4)
FY09
(125.3)
(49.0)
FY09
(244.1)(84.1)(32.9)Other net non operating expenses(2)
(307.2)(110.3)(48.0)TOTAL NET NON OPERATING EXPENSES
FY10FY10FY09(Euro m)
(1) To ensure consistency with a more accurate cost allocation performed during 2010, YE 2009 comparative figures has been restated accordingly reclassifying 14.6 m
costs from net operating expenses to acquisition and administration costs (FY 2009 reported data was -51.8 m).
(2) Other non operating expenses include mainly amortization of VOBA
IV. BACK UP
Assicurazioni Generali Group – FY 2010 results
62
24825019292121911731Other investments(2)
512
401
913
19
64
582
FY10
-
35
35
-
15
2
FY10
381
-
381
(1)
38
133
FY10
130
366
496
20
12
447
FY10 FY09FY09FY09FY09
Of which
1,692364911,165Total net impairments
694
998
267
67
1,108
Total
36-962Operating net
impairments
4248857Equity instruments
32637Fixed income
-27240Real estate
-
Financial
491202Non operating net
impairments
Net impairments
P&CLife(Euro m)
IV. BACK UP
Focus on impairments(1)
(1) Net of reverse impairments
(2) Including subsidiaries and associated companies
Assicurazioni Generali Group – FY 2010 results
63
392
1,330
1,722
(44)
366
1,438
(39)
FY09
14
1,308
1,322
(53)
232
1,204
(61)
FY09
(5)
22
17
(6)
-
25
(3)
FY09
383
-
383
15
134
208
25
FY09
(9)(2)(16)10Other investments(2)
467
1,854
2,321
231
1,468
631
FY10
(2)
15
13
-
14
1
FY10
412
-
412
141
131
157
FY10
57
1,839
1,896
90
1,323
473
FY10
Of which
Total net realized gains
Total
Operating net realized
gains
Equity instruments
Fixed income
Real estate
Financial
Non operating net
realized gains
Net realized gains
P&CLife(Euro m)
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Focus on realised gains(1)
(1) Excluding financial instruments at fair value through profit and loss
(2) Including subsidiaries and associated companies
Assicurazioni Generali Group – FY 2010 results
64Focus on non operating items: non operating investment income
5
(501)
236
18288
+26.2%
(694)
(512)
(199)392FY09
n.a.+22.4%∆%
37480FY10
Non operating investment income (Euro m)
FY10FY09Net realised
gainsNet
impairmentsFair Valuethr. P&L
∆ Euro m
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Assicurazioni Generali Group – FY 2010 results
65Focus on non operating items: interest expenses on financial debt
681 645
26 59
6.877.83Average maturity (years)
Average cost (%)
FY10FY09
5.36%5.35%
Total financial debt (Euro m)Interest expenses on financial debt (Euro m)
FY10FY09
Average cost & maturity of financial debt (%)
(1) Net of refinancing of Euro 1,750 m bond repaid on 20/07/2010
(1)
704707
(1)
36.1%35.2%
53.0%51.0%
10.9%13.8%
FY09 FY10
Senior Sub/Hybrid Other
12,27214,287
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Assicurazioni Generali Group – FY 2010 results
66
IV. Backup
Agenda
P&L
Balance sheet
Life
Capital
Sustainability
Definitions
Assicurazioni Generali Group – FY 2010 results
67Consolidated balance sheet
(1) Including reinsurance amounts of technical reserve
(2) According to a better definition and allocation of tax liabilities the comparative amounts have been coherently restated (FY 2009 reported data: Other debts and
allowances 9.2 bn, Other liabilities 34.7 bn)
(3) Including assets and liabilities related to discontinued operations (Intesa Vita)
Assets Liabilities
422.4423.8Total Assets
21.346.3Other assets (1)
3.83.8Tangible assets
11.511.3Other credits
364.2
11.0
341.5
10.5
Investments
Cash
10.710.4Intangible assets
FY10FY09(Euro bn)
9.18.9(2)
Other debts and
allowances
329.6309.6Technical reserves
422.4423.8
Total Liabilities and
Shareholders’ Equity
9.735.0(2)(3)Other liabilities
53.950.4
Subordinated and
financial liabilities
20.020.0Shareholders’ Equity
2.53.3Minority interests
17.516.7
Shareholders’ Equity
(Group share)
FY10FY09(Euro bn)
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Assicurazioni Generali Group – FY 2010 results
68
321.7
50.3
98.8
FY10 Assets Under Management
Total
Euro 470.8 bn
Fixed income
instruments
79.2%
Other
3.7%
Real Estate
4.9%
Equity
8.5%
Available for sale
58.7%
Loans
24.0%
Real Estate
4.1%
Group
participations
0.8%
Held to maturity
1.4%Fin. Instr. at fair
value thr. P&L
7.2%
Unit Linked
Third parties AUM
“Own Investments”(1)
IV. BACK UP
Esposizioni nette a
governativi di
Grecia, Spagna,
Portogallo e Irlanda
(1) For the definitions refer to the related section within the backup
Cash & equival.
3.8%
Cash & equival.
3.8%
Assicurazioni Generali Group – FY 2010 results
69
97.4
212.2
11.7
Total
Euro 321.7 bn
Fixed income instruments
76.3%
Of which bonds 56.6%
Of which loans 19.7%
Real estate
13.5%
Other
7.7%
Subs, ass. & JVs
2.5%
IV. BACK UP
FY10 Own Investments at amortized cost and fair value(1)
Fixed income instruments
85.1%
Of which bonds 80.4%
Equity
12.9%
Other
2.0%
Investments at amortized cost
Investments at fair value
(1) Excluding unit linked and third parties
Cash & equivalents
Assicurazioni Generali Group – FY 2010 results
70
29,33428,8496,2346,0762,7492,64621,77021,546Other fixed income
100,98499,6673,6503,6669,8319,81087,97586,663Corporate
127,523126,3192,2252,2309,4499,420115,850114,669Government
359,945 20,981
4,000 424 27,298
257,84112,10922,028
MVMVMV
11,001
225,595
22,874
MV
15,645
254,836
27,298
BV
Total(2)
4244,00022,874Equity
11,97221,877222,877Fixed income instruments
256,3889,233Real estate
BV
Financial
BVBVAsset classes
P&CLife(Euro m)
FY10 book value & 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 – FY 2010 results
71Quality of FY10 fixed income portfolio
3.8
4.4
% Current return
by segment
2.8Life
3.1
% Comprehensive
return by segment
P&C
By issuer (%)
Fixed income portfolio composition (Euro 254.8 bn)
51.443.1
18.6
49.6
38.944.8
30.6
39.1
11.3
50.8
12.19.7
Life P&C Financials Total
Government Corporate Other fixed income
IV. BACK UP
Bond portfolio by rating (%)
35.2% 33.4% 19.4%
8.4%
1.8%
1.7%
AAA AA A BBB NIG NR
5.3
7.0
Life
5.1Government
3.5
P&C
Corporate
Average bond portfolio
duration by segment (years)
Assicurazioni Generali Group – FY 2010 results
72Focus on FY10 government bond portfolio
1.6
1.7
2.9
7.4
48.7
37.7
Total
Not rated
Not investment grade
BBB
A
AA
AAA
% Split by rating
9.4
22.2
5.2
11.1
14.6
37.5
Total
RoW
RoE
CEE
France
Germany
Italy
% Split by country
43%26%
10%
Life P&C Financial
(Euro 126.3 bn, 49.6% of total fixed income portfolio)
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% of segmental own investments% Split by accounting treatment
16.383.7
Amortized cost Fair Value
Assicurazioni Generali Group – FY 2010 results
73Portfolios exposure on Peripheral Europe
12.1
3.0
1.8
3.8
3.5
Gross(Euro bn) Net (1)
Portugal 0.5
Spain 0.8
Ireland 0.3
Greece 0.5
Total 2.1
(1) Net of Policyholder’s Participation and Taxes
Exposure to peripheral Europe Government Bonds as at 31.12.2010
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Assicurazioni Generali Group – FY 2010 results
74Focus on FY10 corporate bond portfolio
2.0
2.0
15.3
34.5
14.1
32.1
Total
Not rated
Not investment grade
BBB
A
AA
AAA
% Split by rating
10.6
4.6
4.8
3.3
9.0
67.7
Life
10.9
4.9
4.1
8.6
5.7
65.8
P&C
Other
Industrial
Telecom
ABS
Utilities
Financials(1)
% Split by industry
(Euro 99.7 bn, 39.1% of total fixed income portfolio)
IV. BACK UP
34.965.1
Amortized cost Fair Value
32% 27%16%
Life P&C Financial
% of segmental own investments% Split by accounting treatment
(1) Including covered bonds: 19.9% in life, 13.2% in P&C
Assicurazioni Generali Group – FY 2010 results
75
6.8
27.3
(0.4)(0.9)(19.0)
(0.2)
Focus on FY10 equity portfolio
34.9
21.6
6.1
9.1
10.3
18.1
Life
27.2
28.0
6.3
3.4
8.2
27.0
P&C
Funds
Other
Industrial
Telecom
Consumer
Financials
% split by industry
9% 11% 2%
Life P&C Financial
2.6
3.0
% Current return
by segment
5.0Life
1.6
% Comprehensive
return by segment
P&C
(Euro 27.3 bn)
IV. BACK UP
% of total own investments
FY10 Group net equity exposure
MinoritiesTaxes Net
equity
exposure
Policyholders’
interests
HedgingGross
equity
exposure
Assicurazioni Generali Group – FY 2010 results
76FY10 Group real estate assets (1/2)
100%24.8100%18.9Total
1%0.21%0.2RoW(2)
21%5.420%3.9RoE(1)
1%0.21%0.2CEE
17%4.323%4.3Germany
20%4.920%3.7France
40%9.835%6.6Italy
% of
the total
Total Inv. MV
(Euro bn)
% of
the total
Total Inv. BV
(Euro bn)Country
Investment properties vs self use Yield on investment properties
Self Use
15.3 %
Investment
properties
84.7 %
IV. BACK UP
(1) RoE includes Austria, Spain, Israel, Switzerland, Belgium and Netherlands
(2) RoW includes Latin America, Far East and US
7.4%Life
8.7%
Total
P&C
% Current return by segment
Assicurazioni Generali Group – FY 2010 results
77FY10 Group real estate assets (2/2)
IV. BACK UP
100%22,3100%7.1Total
1%0.21%0.1RoW
24%5.324%1.7RoE
1%0.22%0.1CEE
15%3.319%1.3Germany
21%4.721%1.5France
38%8.633%2.4Italy
% of
Total MV
MV
(Euro bn)
% of
total area
Area
(sqm m)Country
Residential 8%
Retail 6%
Logistic 3%
Other 9% Office 74%
Direct Investments in leader countries
Assicurazioni Generali Group – FY 2010 results
78Investment yields(1)
2.0
2.0
1.8
1.9
1.9
2.9
2.7
2.7
2.1
FY10
-0.1
-0.1
2.0
-0.8
-0.8
3.2
0.7
0.7
2.7
FY09
Other
3.0
4.8
4.2
3.4
4.4
4.4
2.9
5.0
4.3
FY10
7.3
4.6
4.3
7.2
3.7
4.7
7.7
4.9
4.4
FY09
Total
6.45.65.32.75.05.3Total P&L
7.07.22.4-2.54.64.9Total P&L
6.04.76.03.45.15.5Total P&L
Investment
properties
EquitiesBonds and Loans
TOTAL
6.4
7.8
7.0
8.7
6.0
7.4
FY10
4.84.922.42.86.9Comprehensive
LIFE
5.6
7.6
7.2
9.0
6.9
FY09
21.4
3.5
15.9
3.5
3.1
FY09
NON LIFE
3.24.34.4Current
1.63.16.8Comprehensive
2.63.84.0Current
4.32.86.8Comprehensive
3.04.44.5Current
FY10FY10FY09% return
(1) For the definitions refer to the related section within the backup
IV. BACK UP
Assicurazioni Generali Group – FY 2010 results
794Q10 IFRS Shareholders’ equity roll forward
17,49018,201
16,652(67)
100179389
(1,312)
-3.9%
IFRS Shareholders’ equity roll forward (Euro m)
Shareholders‘
Equity 9M10
∆ Currency
Translation
Reserve
4Q 2010
Net Result
Other Shareholders’
Equity FY10
∆ Cash Flow
Hedge
Reserve
∆ in AFS
Reserve
Shareholders’
Equity FY09
IV. BACK UP
Change in AFS reserve (Euro m)
-184
1,128
64
4
(1,381)
Other AFS Reserve FY10
Impact Bond Investments
Impact Equity Investments
AFS Reserve
9M10
Assicurazioni Generali Group – FY 2010 results
80
16.9 16.8
23.9 23.6
Solvency I update
(1) Including off balance sheet unrealized gains on real estate, 8%pts of which subject to authorities’ authorization
Required margin Available margin
FY10FY09
142%(1) 140%(1)
(Euro bn)
Main drivers of change
Available margin
� Consolidated result:
� Proposed dividends:
� Intesa Vita divestiture
� Financial markets and other elements:
Required Margin
� Intesa Vita divestiture
� Increase in required margin due to
strong life business growth:
+2.0
-0.8
-0.6
-0.9
-0.7
+0.6
IV. BACK UP
Assicurazioni Generali Group – FY 2010 results
81
140
127
128
153
135
132
Stress tests on Solvency I and Shareholders’ equity
Impact on proforma solvency I ratio
(%)
Impact on FY10 Shareholders’ equity (Euro
bn)
Total ratio FY10
Equities -30%
Interest rate +100bps
Interest rate -100bps
Credit spread +100bps
Real estate -10%
(2.1)
(2.0)
2.0
(0.9)
Equities -30%
Interest rate +100bps
Interest rate -100bps
Credit spread +100bps
(1) (1)
(1) Before hedging impact
IV. BACK UP
Assicurazioni Generali Group – FY 2010 results
82Total comprehensive income(1)
(1,031)
1,308
(644)
1,033
(245)
794
4591,916
(178)
(1,010)
181
(505)
4Q103Q101Q10 2Q104Q093Q092Q091Q094Q083Q082Q081Q08
(Euro m)
(1) For the definitions refer to the related section within the backup
1,452
FY10
2,096
9M10
1,308
1Q10
1,0632,9902,532616(178)(2,365)(1,354)(1,536)(1,031)
1H10FY099M091H091Q09FY089M081H081Q08
+3,000 m
-3,000 m
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Assicurazioni Generali Group – FY 2010 results
83AFS reserve breakdown
(166)(56)(779)Corporate
(396)281446Government
277475(621)Equity
(184)730(1,106)TOTAL
10129(152)Investment funds and other
(562)
FY10
225
FY09
(333)Fixed income instruments
FY08(Euro m)
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Assicurazioni Generali Group – FY 2010 results
84Financial debt schedule
0
500
1,000
1,500
2,000
2,500
2011 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 – FY 2010 results
85FY10 technical reserves
IV. BACK UP
313,34850,455262,893GROUP TOTAL
6,9151,3185,597CEE
84,73812,44972,289Germany
15,150
6,283
Linked
81,99366,843France
83,37177,088Italy
Life net technical reserves(1)
TOTALTraditional(Euro m)
(1) Including investment contracts for Euro 15,371 million
13,475
1,219
1,806
2,074
4,939
Motor
30,23616,761GROUP TOTAL
2,001782CEE
4,0842,278Germany
5,2143,140France
11,8486,910Italy
P&C net technical reserves
TOTALNon Motor(Euro m)
Assicurazioni Generali Group – FY 2010 results
86Operating ratio on investments(1)
IV. BACK UP
0.89
4.82
0.32
0.66
1.31
FY09 (%)
0.97
2.51
0.43
0.74
1.44
FY10 (%)
+0.09GROUP TOTAL
-2.31CEE
+0.11Germany
+0.09France
+0.13Italy
�(%pts.)
Life operating ratio on investments (%)
P&C operating ratio on investments (%)
3.58
11.90
4.29
4.64
0.44
FY09 (%)
3.07
6.82
5.01
2.78
1.63
FY10 (%)
-0.52GROUP TOTAL
-5.08CEE
+0.72Germany
-1.86France
+1.19Italy
�(%pts.)
(1) For the definitions refer to the related section within the backup
Assicurazioni Generali Group – FY 2010 results
87Number of shares(1)
34,420(34,420)-Change in scope
1,414,072,429
Weighted number of shares outstanding in year ending
12.31.2009 adjusted for the effects of all dilutive
potential ordinary shares.
1,540,850,443
Weighted number of shares outstanding in year ending
12.31.2010 adjusted for the effects of all dilutive
potential ordinary shares.
---Stock options
Potential (dilutive) shares:
1,540,850,443
Weighted number of shares outstanding in year ending
12.31.2010
1,540,873,83715,999,4461,556,873,283shares outstanding at 12.31.2010
(2,106)2,106-Generali shares purchase
8,800-8,800Exercise of stock options
---Stock grant plan
---Capital increase
1,540,832,72316,031,7601,556,864,483shares outstanding at 12.31.2009
1,414,072,429
Weighted number of shares outstanding in year ending
12.31.2009
Shares
outstanding
(1-2)
Own
shares
(2)
Ordinary
Shares issued
(1)
(1) Calculation based on IAS 33
IV. BACK UP
Assicurazioni Generali Group – FY 2010 results
88Per share(1) indicators
IV. BACK UP
FY10(Euro)
17.5
8.4
11.4
0.45
1.10
Embedded Value per share(2)
ANAV per share(2)
Book Value per share(2)
Dividend per share
Earnings per share(1)
(1) Calculated on the basis of weighted shares outstanding during 2010 (1,540,850,443)
(2) Calculated on the basis of shares outstanding at 31.12.2010 (1,540,873,837)
Assicurazioni Generali Group – FY 2010 results
89
IV. Backup
Agenda
P&L
Balance sheet
Life
Capital
Sustainability
Definitions
Assicurazioni Generali Group – FY 2010 results
90
Assicurazioni Generali Group – FY 2010 results
Life EV roll-forward
Life & health embedded value earnings (Euro m) Return on embedded value
Life & health RoEV
Life & health Normalised RoEV
-4.2%Adjusted embedded value FY09 24,638
Embedded value earnings -1,024
Normalised EV earnings (1) 2,421
(Euro m)
23,68324,638 23,927313
1,426
488
1,050468
70 3,431
Perimeter,
FX
Adjusted
EV FY09NBV
Expected
contributionOperating
variance
Economic
varianceCapital
flow
EV FY10Model
changesEV FY09
9.8%
IV. BACK UP
( ) ( )
Of which -3.0 bn due to the extraordinary
widening of the spreads between government
bonds and swap rates, together with the
correlated drop of equity market in Italy
(1) Life normalised EV earnings defined as NBV + Expected contribution + Operating variance excluding extraordinary expenses (-14 m)
Assicurazioni Generali Group – FY 2010 results
91
-1.7
-5.5
-4.3
+4.0
-8.0
+4.2
-1.3
Assicurazioni Generali Group – FY 2010 results
FY10 Life Embedded Value Sensitivity
(%)
Equity Implied Volatility +25%
Risk Free Rate +100bps
Risk Free Rate -100bps
Equity +10%
Equity -10%
Zero Liquidity Premium
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Swaption Implied Volatility +25%
Life Embedded Value Euro 23,927 m
Assicurazioni Generali Group – FY 2010 results
92
Assicurazioni Generali Group – FY 2010 results
Life new business: APE
(Euro m) APE Annual Premiums Single Premiums
2009 2010Like for like
� 2009 2010Like for like
� 2009 2010Like for like
�
Italy 1,704 1,766 +3.6% 1,102 1,091 -1.0% 6,022 6,753 +12.1%
Germany 984 976 -0.9% 838 709 -15.4% 1,460 2,665 +82.5%
France 1,225 1,172 -4.4% 254 307 +20.6% 9,712 8,649 -11.0%
CEE 158 172 +5.3% 134 139 +0.1% 237 330 +34.9%
RoE 740 792 +4.0% 364 442 +15.3% 3,758 3,506 -7.5%
Austria 83 97 +8.7% 67 72 +2.6% 161 252 +31.1%
Spain 128 118 -7.3% 50 55 +9.7% 778 636 -18.2%
Switzerland 90 96 -10.5% 83 89 -9.7% 73 69 -20.1%
RoW 377 455 +7.3% 318 364 +1.7% 586 908 +37.8%
Total 5,188 5,333 +1.3% 3,011 3,052 -0.7% 21,775 22,810 +4.2%
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Assicurazioni Generali Group – FY 2010 results
93
Assicurazioni Generali Group – FY 2010 results
Life new business: Value and margins
IV. BACK UP
(Euro m) NBV
2009 2010Historical
�
Like for like �
Italy 486 326 -33.0% -33.0%
Germany 174 173 -0.7% -0.7%
France 127 146 +15.5% +15.5%
CEE 62 56 -10.1% -13.9%
RoE 173 197 +14.2% +8.6%
Austria 23 23 +0.2% -4.9%
Spain 30 28 -9.1% -9.2%
Switzerland 41 41 +0.4% -15.4%
RoW 106 153 +43.5% +29.3%
Total 1,128 1,050 -6.9% -8.8%
Margins on APE
2009 2010 ∆ pts
28.5% 18.4% -10.1%
17.7% 17.7% +0.0%
10.3% 12.5% +2.2%
39.1% 32.3% -6.8%
23.3% 24.9% +1.6%
27.2% 23.3% -3.9%
23.8% 23.3% -0.5%
45.2% 42.8% -2.4%
28.2% 33.5% +5.3%
21.7% 19.7% -2.0%
Margins on PVNBP
2009 2010 ∆ pts
3.3% 2.2% -1.2%
1.6% 1.7% +0.1%
1.1% 1.3% +0.3%
5.1% 4.3% -0.7%
2.6% 3.0% +0.5%
2.7% 2.3% -0.4%
2.7% 2.8% +0.1%
4.9% 4.0% -0.8%
3.3% 3.6% +0.3%
2.3% 2.2% -0.1%
Assicurazioni Generali Group – FY 2010 results
94
Assicurazioni Generali Group – FY 2010 results
Value of Asset Gathering
Value of In-force business (Euro m) Value of new business (Euro m)
20102009
+9.4%
20102009
-4.3%
2009 2010 %
New inflows
(Euro bn) 13.7 17.2 +25.4%
Value of new business
in % of New inflows 1.23 0.94 -29bp
2009 2010 %
Assets under
management (Euro bn) 53.9 62.7 +16.3%
Value of business In-
force in % of AUM 1.82 1.72 -10bp
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 fee 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
from 2008, the value arising in Banca Generali relating to insurance business has been considered as a look through in the Life Embedded Value. New asset management
business comprises the amount of new money collected, net of switches within different classes of asset management products. The value added by new business allows for
the actual acquisition costs incurred, using end-year assumptions, including projected future investment returns in the year of sale. Valuation according to traditional EV
methodology and reviewed by Towers Watson.
IV. BACK UP
1,075
983 168 161
Assicurazioni Generali Group – FY 2010 results
95
IV. Backup
P&L
Balance sheet
Life
Capital
Sustainability
Definitions
Assicurazioni Generali Group – FY 2010 results
96
Assicurazioni Generali Group – FY 2010 results
EBS results: Risk capital diversification
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Total diversification benefits at 33%
(1) Not under Internal Model refers to entities currently based on previous top-down model
(2) Based on preliminary figures
Group RAC at 99.95%
before diversification
Group diversification Group RAC at 99.95%
(Euro bn)
(10.0) (2)
20.6(2)
30.6(2)
33%
Not under IM(1) 2.0 / 7%
Operational 2.2 / 7%
Non-Life U/W 2.3 / 8%
Life U/W 3.3 / 11%
Credit &
Currency5.8 / 19%
Interest rate 4.3 / 14%
Real estate 3.7/ 12%
Equity 6.9 / 23%
Assicurazioni Generali Group – FY 2010 results
97FY10 reconciliation of life & health MCEV with group EV (EBS basis)
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26,968 3,041 23,927 Embedded Value (EBS basis)
14,026 1,075 12,951 In-force value (Life & AuM)
12,942 1,966 10,976 Adjusted Net Asset Value
(2,447) (0) (2,447) Unrealised Gains included in L&H VIF
1,347 1,347 -Fair Value adj, of P&C Liabilities
14 66 (52) MTM of Debt and Employee Benefit Plans
(3,509) (913) (2,596) Life DAC, VoBA and other adjustments
(6,992) (6,700) (292) Goodwill
7,040 3,165 3,875 MTM of Assets
17,490 5,002 12,488 IFRS equity
GROUP Other Life & Health
MCEV (Euro m)
Assicurazioni Generali Group – FY 2010 results
98
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P&L
Balance sheet
Life
Capital
Sustainability
Definitions
Assicurazioni Generali Group – FY 2010 results
99Generali in the Ethical Indices
• ECPI Ethical Index Euro
• ECPI Ethical Index Global
• FTSE ECPI Italia SRI: Leaders Index; Benchmarck Index
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Assicurazioni Generali Group – FY 2010 results
100Number of employees
Number of employees 2010 employees by area (%)
20102008 2009
+0.1%
84,063 85,322 85,368
France
10.4%
CEE
16.9%
Rest of World
16.9%
Germany
17.9%
Rest of
Europe 18.0%
Italy
19.9%
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Assicurazioni Generali Group – FY 2010 results
101Training
Average hours of training per capita
2010 average hours of training per capita
breakdown
+22.9%
20102008 2009
37.235.5
43.638.0
39.6
21.3
36.9
50.2
43.6
49.5
Italy France Germany CEE Rest of
Europe
Rest of
World
Generali
Group
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Assicurazioni Generali Group – FY 2010 results
102Allocation to the Community
Allocation to the community (Euro m) 2010 Allocation to the community by area
20102008 2009
+10.4%
38.141.2
45.5
France
5.2%
CEE
11.5%
Rest of World
6.9%
Germany
21.0%
Rest of
Europe 19.1%
Italy
36.2%
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Assicurazioni Generali Group – FY 2010 results
103
-40.3%31.5%Environmentally friendly paper quota
-47.9%27.3%Renewable sources quota
-76.3%69.5%Selective waste collection quota
-0.3%18.818.9Per capita water consumption
(cubic meters)
+2.8%72,267.470,321.0Paper consumption (quintals)
+3.2%5,150.84,989.5Per capita electrical energy consumption (kWh)
Change20102009
Environmental data(1)
(1) The data refers to the Environmental Management System (EMS) of the Generali Group. At present, a set of buildings in six countries (Italy,
Austria, France, Germany, Spain and Switzerland) is included in the EMS.
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Assicurazioni Generali Group – FY 2010 results
104
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P&L
Balance sheet
Life
Capital
Sustainability
Definitions
Assicurazioni Generali Group – FY 2010 results
105Definitions: P&L and balance sheet (1/2)
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Operating result of life, P&C and financial segments, before holding expenses and consolidation adjustmentsOperating Result
Premiums inflows in the period less benefits paid to the policyholders. It does not include revaluation of
mathematical reserves
Life Net Inflows
calculated considering equivalent exchange rates and scope of consolidationLike for Like changes
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
Life Operating Result
are calculated on quarterly average asset base at IFRS book value and are defined as follows:
Current return: interest, 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), net of investment expenses
Comprehensive return:
i) for fair value investment (AFS, FVthPL) = current return + total change in fair value, net of investment expenses;
ii) for investment at amortised cost (Real estates, loans, HtM) = Total P&L return
Investment returns for Life segment income from bonds and loans issued by Group companies and
investments in consolidated subsidiaries backing policyholders’ liabilities.
Investments Returns
Assicurazioni Generali Group – FY 2010 results
106
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.”
Total Operating Result
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 Comprehensive
Income
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
P&C Operating Result
does not include unit/index linked investments and consist of the following asset class (*):
i) Fixed income instruments include quoted and unquoted bonds, loans including deposits under reinsurance business
accepted, term deposits with credit institutions;
ii) Equity-like instruments include 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 include 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. They are net of consolidation adjustments.
Own Investments
Definitions: P&L and balance sheet (2/2)
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Assicurazioni Generali Group – FY 2010 results
107Definitions: Life EV (1/2)
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is an actuarially determined estimate of the value of a company, excluding any value attributable to future new
business. With reference to the covered business, and to the relevant consolidation perimeter (i.e. the
operating life, health and pension companies of the group), the EV is equal to the sum of the Adjusted Net
Asset Value and the Value In-Force.
Life Embedded Value
(EV)
is defined as the rate that makes equal to zero the present value of new business distributable profits
(therefore allowing for new business first year strain and required capital absorption) calculated using “real-
world” best estimate assumptions.
Internal Rate of Return
(IRR)
correspond to the difference between the closing and the opening EV, excluding adjustments to opening EV
and capital movements.
Embedded Value
Earnings
corresponds to the consolidated market value of the assets backing the shareholders’ funds, net of taxes and
policyholder interests on any unrealised capital gains and losses, after the elimination of goodwill and DAC, net
of other adjustments required to maintain consistency with the valuation of the in-force business, and before
the payment of dividends from profits of the year.
Adjusted Net Asset
Value (ANAV)
is defined as new business annualised regular premiums plus 10% of single premiums.Annual Premium
Equivalent (APE)
Assicurazioni Generali Group – FY 2010 results
108Definitions: Life EV (2/2)
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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 calculated according to year-end economic and operating assumptions.
New Business Value
(NBV)
correspond to Embedded Value Earnings, net of economic variances and extraordinary expenses.Normalised Embedded
Value Earnings
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 (VIF)
is defined as the present value of the future new business premiums, calculated using year-end assumptions
for lapses and other exits and discounted to point of sale using the reference rates.
Present Value of New
Business Premiums
(PVNBP)
is the period of time (in years, from issue date) required to recover the cost of the initial investment in new
business (i.e. new business first year strain and required capital absorption) calculated by means of a
deterministic projection based on “real-world” best estimate assumptions.
Payback Period
Assicurazioni Generali Group – FY 2010 results
109Definitions: Group EV
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Embedded Value earnings on opening Embedded ValueRoEV
Annualised and normalised earnings on opening Embedded ValueNormalised RoEV
Within the EBS framework of the Generali Group, it is the capital necessary to absorb the maximum loss of
available capital, identified according to a 1-year value-at-risk approach, at a specified confidence level
consistent with the risk appetite (defined at 99,5% for Solvency II purposes and at higher level for Group
internal and rating purposes). It corresponds to the SCR calculated with the internal model.
Risk Capital or Risk
adjusted capital (RAC)
An estimate of the value to shareholders of a book of insurance business at a given date, consisting of the
following components:
� Free surplus allocated to the covered business;
� Required capital, less the cost of holding required capital;
� Value of future shareholder cash flows from in-force covered business.
The embedded value concept is applicable to general insurance, although it is more commonly encountered in
the life and health context. The value of renewals of existing contracts is included, but the value of future new
contracts is excluded.
Embedded Value (EV)
I) General definition: Balance sheet statement based on one of those accounting approaches using market-
consistent values for all current assets and current obligations relating to in-force business, including off-
balance sheet items.
II) Within the Generali Group: common Group framework (methodology, models and tools) to assess and
report market (or fair) values of all assets and liabilities, of available capital and risk capital, both at entity
and Group level.
Economic Balance
Sheet (EBS)
It is internally defined as the available financial resources covering the totality of risks of an insurance
company, business unit or group. It is equal to the sum of Embedded Value and Hybrid Capital (Subordinated
Debt). It corresponds to the Basic own funds.
Available Capital (AC)
Assicurazioni Generali Group – FY 2010 results
110What’s next
April 30, 2011 - General Shareholders’ Meeting
May 12, 2011 - 1Q 2011 Results
August 3, 2011 - 1H 2011 Results
November 9, 2011 - 9M 2011 Results
Assicurazioni Generali Group – FY 2010 results
111Investor Relations Team
Paola Buratti (Tel.: +39-040-671157)
Head of Investor Relations
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 – FY 2010 results
112Disclaimer
Certain of the statements contained herein are statements of future expectations and other
forward-looking statements.
These expectations are based on management's current views and assumptions and involve
known and unknown risks and uncertainties.
The user of such information should recognise that actual results, performance or events
may differ materially from such expectations because they relate to future events and
circumstances which are beyond our control including, among other things, general economic
and sector conditions.
Neither Assicurazioni Generali S.p.A. nor any of its affiliates, directors, officers employees or
agents owe any duty of care towards any user of the information provided herein nor any
obligation to update any forward-looking information contained in this document.
The manager in charge of preparing the company’s financial reports, Raffaele Agrusti,
declares, pursuant to paragraph 2 of article 154-bis of the Consolidated Law on Financial
Intermediation, that the accounting information contained in this presentation corresponds to
document results, books and accounts records.
March 2006
Generali Group
2010 Results
Milan, March xxx, 2010March 16, 2011