generali group 2011 results
DESCRIPTION
TRANSCRIPT
March 2006
Generali Group
2011 Results
Milan, March xxx, 2010March 21, 2012
Assicurazioni Generali Group – FY 2011 results
2Agenda
IV. Backup
III. Group financials
Raffaele Agrusti - CFO
II. Insurance operations
Sergio Balbinot - Managing Director
I. FY 2011 results overview
Giovanni Perissinotto - Group CEO
Page 3
Page 8
Page 12
Page 36
Assicurazioni Generali Group – FY 2011 results
3Agenda
I. FY 2011 results overview
Giovanni Perissinotto - Group CEO
Assicurazioni Generali Group – FY 2011 results
4
Life operating result (Euro m)
Financial services operating result (Euro m) Net result (Euro m)
2011: at the bottom of the crisis
I. FY 2011 RESULTS OVERVIEW
P&C operating result (Euro m)
FY11FY10
-16.0%� Large impairments on
Greek government
bonds affecting Life
operating result
� Top market Life net
inflows (Euro 5.8 bn),
despite a difficult
environment FY11FY10
+38.3%� Strong P&C
operating result
driven by improved
technical profitability
� Combined ratio at
96.5%; almost
reached 96% mid
term target
342354
-3.3%
� Resilient financial
services operating
result
� Third parties AuM
increase (+3.4%)(1)
during 2011
1,702
856
FY11FY10
-49.7%
� Net result strongly
affected by
impairments on
Greek government
bonds, Telco and
equity portfolio
(1) On like for like basis
FY11FY10
1,128
1,561
3,0262,542
Assicurazioni Generali Group – FY 2011 results
5
141%160%
126% 124%
Restoring capital adequacy
118%132%
117%132%
(1) Calculation based on new ISVAP’s rule
2011(1)2010 March 01
2012
I. FY 2011 RESULTS OVERVIEW
� Solvency ratios recovery during first months of 2012 mainly thanks to narrowing spreads on
Italian government debt
20112010 March 01
2012
Regulatory solvency I ratio (%) Economic solvency ratio (%)
9M11 9M11
Assicurazioni Generali Group – FY 2011 results
62011 proposed cash dividend
Cash dividend per share (Euro)
0.20
0.450.35
0.430.33
0.15
0.54
0.28
0.75
0.90
200620042002 20052003 20082007 2009
(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 2011 RESULTS OVERVIEW
2010
Payout ratio
36.4%41.1%41.6%
24.6%
41.8%39.7%35.9%
41.7%41.5%
2011
Assicurazioni Generali Group – FY 2011 results
7Outlook on operating result
I. FY 2012 RESULTS OVERVIEW
Outlook 2011
Outlook 2012
Life and total
operating result
affected by additional
impairment on Greek
bonds in the last part
of the year
10% average growth
on like for like
Mid term
operating result
ambition
> Euro 5 bn
Min. Max. Actual
Life 2.7 3.2 2.5
P&C 1.3 1.7 1.6
Total 4.0 4.7 3.9
Min. Max.
Life 2.4 2.8
P&C 1.5 1.9
Total 3.9 4.5
(Euro bn)
Assicurazioni Generali Group – FY 2011 results
8Agenda
II. Insurance operations
Sergio Balbinot - Managing Director
Assicurazioni Generali Group – FY 2011 results
9Main industrial results
Net Inflows(Euro bn)
GWP(Euro bn)
Loss ratio(%)
16.1
Life P&C
(1) Including investment contracts
Combined ratio(%)
II. INSURANCE OPERATIONS
GWP(1)
(Euro bn)
5.8
51.1 46.4
NBM(%)
FY10 FY11
FY10 FY11
FY10 FY11
19.7 20.4
FY10 FY11
FY10 FY11
FY10 FY11
22.822.1
69.071.3
96.598.8
Assicurazioni Generali Group – FY 2011 results
10
Germany
Non Life� Motor profitability improvement:
� GWP +3.4%
� Current year loss ratio -4.7%pts
� Strong performance of
Non-Motor retail business: GWP +3.2%
Strategic overview: focus on core European markets
Italy
Life� Single premiums drop (APE -20.0%) but
positive annual premiums performance
(APE +7.7%)
� More favourable product mix drives
NBM increase
� Confirmed positive Life net inflows:
Euro 1,085 m
NBM
�
Premiums
�
COR�
Operational efficiency� Strict cost management: stable administration
expense ratio
Life� Market outperformance in a tough
environment:
Pure Life: -2.2% vs. mkt -4.8%
� Strong Net Inflows: Euro 3,433 m
� high performance multichannel
distribution
Non Life� Confirmed market outperformance:
CoR -4.0%pts better than the market
� Good GWP development:
Motor (+1.2%) and Non-Motor (+2.7%)
�
�
Net Inflows
NBM
�
�Premiums
COR
Operational efficiency� Further general expenses reduction: Euro -11 m
II. INSURANCE OPERATIONS
�Net Inflows
Assicurazioni Generali Group – FY 2011 results
11
France CEE
Non Life� Tariffs increases:
� Motor >5%
� Household +10%
� Health +6%
� Corporate + 5%
Strategic overview: focus on core European markets
�
NBM
�
Net inflows
Operational efficiency
� Claims factory set up and industrialization complete; enlarged network of external experts (Non Life)
� Reduction in Non Life acquisition and administration expense ratios
Life
� APE: Czech Republic +2.1%,
Hungary -0.3%
� NBM among the highest in the
area: 35.8%
Non Life� Net loss ratio among the lowest in the
market: 54.5%
� MTPL initiatives and innovations in
Ceska, selective underwriting approach
for fleets in Slovakia and Czech
Republic
�
Net Inflows
NBM
Operational efficiency� General expense reduction (4% in Ceska)
� Strong focus on claims fraud detection
II. INSURANCE OPERATIONS
Premiums
COR�
� �Premiums
COR�
�
Life� On-going product mix improvement:
UL share at 17%(1) (mkt 14%);Individual Protection +4%;Individual Pensions +9%
� NBM among highest in the market: 13.7%
� Leadership via Internet (> Euro 1 bn) and IFAs
(1) UL share on individual savings
Assicurazioni Generali Group – FY 2011 results
12Agenda
III. Group Financials
Raffaele Agrusti - CFO
Profit & loss review
Life, P&C and financial segment profitability
Balance sheet and capital
Assicurazioni Generali Group – FY 2011 results
13Revenue development by segment
III. GROUP FINANCIALS
(1) Including investment contracts for Euro 3,187 m in FY11
(2) For the definitions refer to the related section in the backup
(3) On like for like basis
FY10 FY11 ∆ historical∆ like
for like
Gross written
premiums73,188 69,159 -5.5% -5.5%
Life(1) 51,098 46,394 -9.2% -9.3%
P&C 22,090 22,765 +3.1% +3.2%
Life APE(2) 5,333 4,787 -10.2% -9.0%
FY11FY10
-5.5%(3)
-9.0%(3)
Gross written premiums (Euro m)
Life APE (Euro m)
(Euro m)
FY11FY10
Assicurazioni Generali Group – FY 2011 results
14
Consolidation
adjustments
Total
operating result
Financial services
operating result
P&C
operating result
Operating holding
expenses
Life
operating result
2,542
1,561
342
-294
-222
3,928
3,026
1,128
354
-288
-143
4,077
FY11 total operating result (Euro m)
Operating result by segment
FY11
FY10
-55.6%
-3.7%
-3.4%
+38.3%
-2.0%
-16.0%
�
III. GROUP FINANCIALS
(1) For details, please see slide n. 63 in the back up
Net impact from impairments of:
•Greek gov. bonds: ~Euro 378 m(1)
•Telco: ~Euro 30 m
Assicurazioni Generali Group – FY 2011 results
15Focus on non operating result
FY10 FY11 �
Non operating
investment income6 (941) n.m.
Non operating
holding expenses(726) (680) +6.4%
Net other
Non operating
expenses
(479) (392) +18.2%
Total
Non operating
result
(1,200) (2,013) -67.8%
(1)
III. GROUP FINANCIALS
(941)
6
(71)(575)
(300)
Non operating investment income (Euro m)
FY11FY10
∆ Euro m
Net realised
gains
Net impair-ments
Fair Value thr.
P&L
FY 11 180 (1,087) (34)
FY 10 480 (512) 37
∆ % -62.5% +112.3% n.m.
(1) Including interest expenses on financial debt
(2) For details, please see slide n. 63 in the back up
(Euro m)
Net impact from impairments of:
•Greek gov. bonds: ~Euro 309 m(2)
•Telco: ~Euro 186 m
Assicurazioni Generali Group – FY 2011 results
16
(Euro m) FY10 FY11 �
Total operating result 4,077 3,928 -3.7%
Non operating result (1,200) (2,013) -67.8%
Consolidated result before
taxes and minorities
2,877 1,914 -33.5%
Income taxes (909) (762) +16.2%
Result for discontinued
operations (Intesa Vita)
51 0 n.m.
Minorities (316) (297) +6.0%
Net result 1,702 856 -49.7%
III. GROUP FINANCIALS
Net income (Euro m)
Impact from impairments of:
•Greek gov. bonds: ~Euro 472 m(1)
•Telco: ~Euro 307 m
• AFS equities: ~Euro 239 m
(1) For details, please see slides n. 63 in the back up
856
1,702
-49.7%
FY11FY10
From operating result to net result
Assicurazioni Generali Group – FY 2011 results
17Agenda
III. Group Financials
Profit & loss review
Life, P&C and financial segment profitability
Balance sheet and capital
Assicurazioni Generali Group – FY 2011 results
18
III. GROUP FINANCIALS
Life gross written premiums (Euro m)
46,39451,098
FY11FY10
Life net inflows by country(2) (Euro m)
-9.3%(1)Country FY10 FY11
Italy 1,790 1,085
France 4,444 (2,061)
Germany 4,923 3,433
CEE 534 475
RoE 2,823 1,473
RoW 1,619 1,441
TOTAL 16,133 5,846(1) On like for like basis
(2) For the definitions refer to the related section in the backup
Life business development
�
��
��
��
Assicurazioni Generali Group – FY 2011 results
19Life profitability - Operating result
(Euro m) FY10 FY11 �
Technical Margin 5,996 6,225 +3.8%
Investment Result 2,382 1,715 -28.0%
Expenses (5,352) (5,398) -0.9%
Operating Result 3,026 2,542 -16.0%
Life operating profitability affected by financial environment
Life Operating Result by driver(1)
Life operating
ratio on
Investments
0.97% 0.80%
2,542
229
(46)
(667)
3,026
FY11
Exp.
Inv.R
Tech.M
FY10
III. GROUP FINANCIALS
(1) For the definitions refer to the related section in the backup
0.93%
0.68%
0.89%0.97%
0.80%
FY10FY08 FY09 FY11FY07
Assicurazioni Generali Group – FY 2011 results
20Life net technical provisions(1)
III. GROUP FINANCIALS
(Euro bn)
+5.3% CAGR
257.4 261.4286.4
313.3 316.6
FY09 FY10 FY11FY08
(2.7)
5.9313.3 316.6
FY11FY10 Traditional UnitLinked
FY 2011 258.3 58.3
FY 2010 252.4 61.0
∆% +2.3% -4.4%
FY07
(Euro bn)
316.6313.3
(1.1)
4.85.8
(6.2)
Life net
technical
provisions
FY11
+1.0%
Life net
technical
provisions
FY10
Policyh.
share of
invest.
result
Loadings, risk
and surrender
result
(to P&L)
Net
inflows
Exchange
rates
and other
(19.7)
44.6
5.8
(19.1)
Ratios on life net technical provisions (average of the year) of:
Net inflows Surrenders
FY 2011 1.9% 6.2%
FY 2010 5.4% 4.6%
Cash in Cash out Net inflows
Surrenders
(1) Life net technical provisions including investment contracts and excluding Intesa Vita; starting from 9M 2011 Israeli participating portfolio has been reclassified in unit-
linked business. Comparative figures have been restated accordingly.
(38.8)
Assicurazioni Generali Group – FY 2011 results
21Life investment strategy and yields(1)
Current
return(1)
Fixed
income
Equity Real
Estate(2)
FY10 FY11 FY10 FY11 FY10 FY11
Euro m 9,483 9,736 617 628 603 696
% 4.4 4.5 3.2 3.8 7.3 7.3
43.7%39.6%
32.8%33.5%
7.5%8.6%
7.3%5.3%
3.3%3.9%
2.7% 6.8%
2.7% 2.4%
FY10 FY11
Other
Cash & cash
equivalent
Real estate
Equity
Other fixed income
Corporate bonds
Government
bonds
Life segment own investments(1) (%)
Euro 258.7 bn Euro 254.6 bn
(1) For the definitions refer to the related section in the backup; starting from 9M 2011 Israeli participating portfolio has been reclassified in unit-linked business.
Comparative figures have been restated accordingly.
(2) Real estate current returns are gross of related expenses
III. GROUP FINANCIALS
� Reduced cross-border exposure to peripheral
European government bonds
� Preference for covered bonds within corporate
bonds segment
� Further gradual strategic increase of real estate
exposure
� Tactical increase of liquidity buffer to face market
volatility and to catch investment opportunities
Assicurazioni Generali Group – FY 2011 results
22
Assicurazioni Generali Group – FY 2011 results
Life new business value and profitability
III. GROUP FINANCIALS
(Euro m) APE Margins on APE NBV
FY10 FY11Historical
�
Like for like �
FY10 FY11 ∆ %pts FY10 FY11Historical
�
Like for like �
Italy 1,766 1,715 -2.9% -2.9% 18.4% 21.8% +3.3% 326 374 +14.7% +14.8%
France 1,172 939 -19.8% -19.8% 12.5% 13.7% +1.2% 146 128 -12.4% -12.4%
Germany 976 908 -7.0% -7.0% 17.7% 18.3% +0.6% 173 166 -3.9% -3.9%
CEE 172 147 -14.5% -8.9% 32.3% 35.8% +3.4% 56 52 -5.5% +0.0%
RoE 792 657 -17.1% -17.4% 24.9% 20.4% -4.5% 197 134 -32.1% -32.5%
RoW 455 421 -7.4% +7.0% 33.5% 28.8% -4.7% 153 121 -20.4% -11.9%
Total 5,333 4,787 -10.2% -9.0% 19.7% 20.4% +0.7% 1,050 976 -7.1% -5.6%
� APE slowdown (-9.0%) driven by single premiums drop (-24.8% vs. high 2010 production), partly offset
by positive annual premiums performance (+2.7%)
� Solid NBM (20.4%) thanks to improved product/business mix and rigorous pricing
� NBV resilient at Euro 976 m
Assicurazioni Generali Group – FY 2011 results
23Focus on new business guarantees
Total APE by type of guarantee
NIL
29%
Matched
3%
At maturity
21%
Yearly basis >0
34%
YE 2010
Eurozone Average Guarantee(2): 1.5%
� Yearly basis: 1.4%
� At maturity: 1.9%
NIL
26%
Matched
3%
At maturity
22%
Yearly basis >0
33%
YE 2011
Eurozone Average Guarantee(2): 1.5%
� Yearly basis: 1.4%
� At maturity: 1.9%
III. GROUP FINANCIALS
Yearly basis =0
14%
Yearly basis =0
17%
� Stable average guarantee, with an increased weight of low-capital intensive types of guarantee(1)
(1) Excluding yearly basis guarantee > 0
(2) Weighted on APE
Assicurazioni Generali Group – FY 2011 results
24P&C gross written premiums
(Euro m) FY10 FY11Historical
�
Like for like�
Italy 7,440 7,501 +0.8% +0.8%
France 3,892 4,057 +4.2% +4.2%
Germany 2,998 3,062 +2.2% +2.2%
CEE 2,246 2,261 +0.7% +1.3%
RoE 4,203 4,330 +3.0% +1.6%
RoW 1,312 1,555 +18.6% +23.8%
Total 22,090 22,765 +3.1% +3.2%
III. GROUP FINANCIALS
� Motor and Non Motor retail are driving the very positive premium development, boosted by selected
pricing policy
� Motor is growing in Italy, France and Germany thanks to the increase in average portfolio premium
� Commercial suffers from economic environment, mainly in Italy and Spain, while CEE over
performing
P&C gross written premiums (Euro m)
22,76522,090
FY11FY10
+3.2%(1)
(1) On like for like basis
Assicurazioni Generali Group – FY 2011 results
25P&C profitability - Operating result
(Euro m) FY10 FY11 ����
Technical Result 184 669 +263.2%
Investment Result 1,196 1,120 -6.3%
Other (252) (229) +9.2%
Operating Result 1,128 1,561 +38.3%
P&C Operating Result by driver(1)
P&C operating ratio on
Investments3.07% 4.32%
1,561
485
(76)
23
1,128
FY11
FY10
Tech.R
Inv.R
Other
Strong increase of P&C operating result driven by technical profitability
III. GROUP FINANCIALS
(1) For the definitions refer to the related section in the backup
Assicurazioni Generali Group – FY 2011 results
26
(2.3)
0.1
P&C profitability - Net combined ratio (1/2)
FY11FY10
Combined ratio (%) Combined ratio by country (%)
96.598.8
Loss ratio Expense ratio
FY10 FY11 ∆
Italy 99.6% 96.8% -2.8%pts.
France 101.3% 98.7% -2.6%pts.
Germany 95.2% 94.4% -0.8%pts.
CEE 93.2% 89.5% -3.7%pts.
RoE 99.3% 96.4% -2.9%pts.
RoW 101.6% 104.2% +2.6%pts.
Total 98.8% 96.5% -2.3%pts.
-2.3%pts.
� Expense
ratio
� Loss
ratio
27.6
69.0
27.5
71.3
III. GROUP FINANCIALS
Assicurazioni Generali Group – FY 2011 results
27
+0.10.0
21.5
6.0
21.6
6.0
P&C profitability - Net combined ratio (2/2)
FY11 71.6 0.9 -3.5 69.0
FY10 73.3 1.9 -3.9 71.3
III. GROUP FINANCIALS
Loss ratio (%)
FY11FY10
71.369.0
-1.7-1.0 +0.4
Current
year(1)
NAT
CAT
Prior
years
FY11FY10 ∆ Admin. ∆ Acq.
Acq. costs
Adm. costs
27.6
Expense ratio (%)
Reserving ratio (%)
FY11FY10
-2.6%pts
27.5
(1) Excluding natural catastrophes
-2.3%pts
+0.1%pts
148.8% 146.2%
� Remarkable improvement of current
year loss ratio driven by strict pricing
and underwriting discipline in Motor,
especially in Italy
� 2011 nat cat impact more benign in the
Group geographies than 2010
� Confirmed positive prior years
development and prudent reserving
policy
Assicurazioni Generali Group – FY 2011 results
28P&C investment strategy and yields(1)
P&C segment own investments(1) (%)
Euro 36.4 bn Euro 35.0 bn
Current
return(1)
Fixed
income
Equity Real
Estate(2)
FY10 FY11 FY10 FY11 FY10 FY11
Euro m 846 887 118 104 533 497
% 3.8 3.9 2.6 2.8 8.7 8.6
25.9% 27.6%
26.9%27.3%
7.3%8.6%
11.0%9.2%
1.8%
17.5% 15.7%
8.7% 9.9%
2.6%
FY10 FY11
Other
Cash & cash
equivalent
Real estate
Equity
Other fixed income
Corporate bonds
Government
bonds
III. GROUP FINANCIALS
� Continuing gradual strategic de-risking of portfolios
by reducing exposure to equity and real estate
� Accurate selection of sovereign risk in the portfolio
management
� Maintained strong current profitability despite
challenging market conditions
� Focus on liquidity of assets
(1) For the definitions refer to the related section in the backup; starting from 9M 2011 Israeli participating portfolio has been reclassified in unit-linked business.
Comparative figures have been restated accordingly.
(2) Real estate current returns are gross of related expenses
Assicurazioni Generali Group – FY 2011 results
29
73.2%70.5%
Financial segment
Operating result (Euro m)
Third party AUM(1) (Euro bn)
Net fees and commissions (Euro m)
342354
FY11FY10
-3.4%
859894
FY11FY10
-3.9%
88.293.0
FY11FY10
+3.4%(2) +2.7%pts
FY11FY10
Cost/income ratio (%)
III. GROUP FINANCIALS
(1) Including only third party AUM related to financial segment companies
(2) On like for like basis. On historical basis, the variation is -5.1%
Assicurazioni Generali Group – FY 2011 results
30Agenda
III. Group Financials
Profit & loss review
Life, P&C and financial segment profitability
Balance sheet and capital
Assicurazioni Generali Group – FY 2011 results
31
0.9
1.0
(0.1)
1.9
1.3
(0.7)
1.0
1.2
(0.1)
Total expected cash flow generation 2011
(1) Expected profit based on EV calculations (see slide 89)
(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
CapitalFree Cash Flow
before dividend
Holding exp.(3)
Free Cash Flow
III. GROUP FINANCIALS
Free Cash
Flow
Assicurazioni Generali Group – FY 2011 results
32
17,490
15,486
(1,971)
856 58
(109)(699) (139)
IFRS Shareholders’ equity roll forward
Shareholders’
Equity FY10
∆ in AFS
Reserve
FY 2011
Net Result
∆ Currency
Translation
Reserve
∆ Cash Flow
Hedge
Reserve
Dividend Other Shareholders’
Equity FY11
-11.5%
III. GROUP FINANCIALS
(Euro m)
Change in AFS reserve (Euro m)
(184)
(94) (2,156)
(659)
(1,218)
AFS Reserve
FY10
Impact Equity Investments
Impact Bond Investments
Other AFS Reserve FY11
Assicurazioni Generali Group – FY 2011 results
33
16.9 17.820.8
22.3
Solvency I according to Italian regulation
III. GROUP FINANCIALS
Required margin Available margin
FY11FY10
132% 117%
(Euro bn)
Main drivers of change
(1) Proposed dividend for Shareholders: Euro 0.3 bn; proposed dividend for Minorities: Euro 0.2 bn
(2) The new rule allows the exclusion of AFS losses related to government bonds in the calculation of the cap on locally admitted unrealized gains on real estate
Available margin
� Consolidated result:
� Proposed dividends(1):
� Financial markets and other elements:
� Cap on locally admitted unrealized
gains on real estate(2):
Required Margin
� Growth of life technical provisions and
financial sector capital requirements:
+ 1.2
- 0.5
- 1.6
- 0.5
+ 0.9
Assicurazioni Generali Group – FY 2011 results
34
3,576
26,968
(7,414)(699)
22,431
EV FY 10 EV earnings Investment and Tax
Variances
2010 Cash Dividend EV FY 11
Group Embedded Value roll-forward
(1) For the definitions refer to the related section in the backup
III. GROUP FINANCIALS
Return on Embedded Value
RoEV (1)13.3% Normalised RoEV (1) -14.2%
Group Embedded Value
14.6€ Group EV per share
Group EV FY11
Including:
� 4.5 bn due to spread widening and drop of stock market
� 2.4 bn due to the decrease in interest rates
Robust return on embedded value,
driven by positive combined ratio at
96.5% and Life NBV of Euro 976 m
(Euro m)
Assicurazioni Generali Group – FY 2011 results
35Economic Solvency
� Economic Solvency Ratio based on Group Internal Model calibrated on 1year VAR at 99.95% confidence level
� The ratio based on a 99.5% confidence level (consistent with a BBB rating) would be about 159%
Available
Capital
Group
Risk Capital
33.6
(Euro bn)
Available
Capital
Group
Risk Capital
Sub.
Debt
Group
AC
Group
RAC
Group
RAC
29.0
23.2(3)
20.6
Economic Solvency Ratio
ESR = 124%(2)(3)ESR = 160%(1)
(1) ESR FY10 = AC FY10 (net of dividend 2010 equal to 0.7bn) divided by Risk Capital FY10
(2) ESR FY11 = AC FY11 (net of dividend 2011 equal to 0.3bn) divided by Risk Capital FY11
(3) Preliminary figures
III. GROUP FINANCIALS
FY10 FY11
99,5%
Conf. Level
Group
RAC 15.7
ESR 210%
99,5%
Conf. Level
Group
RAC 18.0
ESR 159%
Group
AC
Assicurazioni Generali Group – FY 2011 results
36
IV. Backup
Agenda
P&L
Balance sheet
Life
Capital
Sustainability
Definitions
Assicurazioni Generali Group – FY 2011 results
37
IV. Backup
Agenda
P&L
Balance sheet
Life
Capital
Sustainability
Definitions
Assicurazioni Generali Group – FY 2011 results
38FY11 Total gross written premiums
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Euro (m) Total gross written premiums Gross life written premiums(1) Gross P&C written premiums
Country GWP
YoY
% increase
Weight on
consoli-
dated GWP
YoY
% increase
Weight on
consoli-
dated GWP
YoY
% increase
Weight on
consoli-
dated
(2) (2) (2)
Italy 20,212 -4.8% 29.2% 12,711 -7.9% 18.4% 7,501 +0.8% 10.8%
France 13,064 -14.5% 18.9% 9,007 -20.9% 13.0% 4,057 +4.2% 5.9%
Germany 16,597 -0.9% 24.0% 13,534 -1.6% 19.6% 3,062 +2.2% 4.4%
CEE 3,938 -2.0% 5.7% 1,678 -6.2% 2.4% 2,261 +1.3% 3.3%
RoE 9,916 -10.4% 14.3% 5,587 -18.0% 8.1% 4,330 +1.6% 6.3%
Of which:
Spain 2,426 +5.8% 3.5% 1,052 +14.3% 1.5% 1,374 +0.2% 2.0%
Austria 2,538 +1.1% 3.7% 1,194 +2.5% 1.7% 1,344 -0.1% 1.9%
Switzerland 1,760 +0.8% 2.5% 1,102 +0.5% 1.6% 658 +1.2% 1.0%
RoW 5,433 +11.2% 7.9% 3,877 +6.8% 5.6% 1,555 +23.8% 2.2%
Total 69,159 -5.5% 100.0% 46,394 -9.3% 67.1% 22,765 +3.2% 32.9%
(1) Including investment contracts
(2) On like for like basis with constant exchange rates
Assicurazioni Generali Group – FY 2011 results
39Life premiums by country & business line
Life FY11
(Euro m)
Savings and
protection
Unit/index
linked Health Group Total
Italy 85.2% 2.0% 0.0% 12.8% 12,324
France 68.0% 14.3% 10.2% 7.5% 8,795
Germany 51.6% 24.0% 17.7% 6.6% 13,533
CEE 60.8% 26.7% 11.2% 1.3% 1,677
RoE 35.4% 46.1% 4.8% 13.7% 5,558
Of which:
Spain 65.0% 1.3% 0.0% 33.8% 1,051
Austria 57.0% 23.5% 19.6% 0.0% 1,177
Switzerland 24.7% 74.3% 0.8% 0.2% 1,102
RoW 28.8% 14.6% 4.8% 51.8% 3,114
Total life gross
direct premiums
60.8% 18.3% 8.7% 12.3% 45,002
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Assicurazioni Generali Group – FY 2011 results
40P&C premiums by country & business line
P&C FY11
(Euro m) Motor(1)Accident/
Health Personal Commercial Total
Italy 44.4% 17.9% 11.7% 26.1% 7,356
France 29.4% 12.6% 38.0% 20.0% 3,785
Germany 35.7% 15.4% 39.6% 9.2% 3,059
CEE 45.5% 13.9% 15.7% 24.9% 2,220
RoE 37.2% 15.6% 23.8% 23.4% 4,174
Of which:
Spain 27.5% 12.8% 28.9% 30.8% 1,338
Austria 39.7% 10.8% 23.5% 26.0% 1,325
Switzerland 48.1% 22.9% 28.5% 0.5% 656
RoW 58.1% 7.6% 3.7% 30.5% 1,499
Total P&C gross
direct premiums
40.3% 15.1% 22.2% 22.4% 22,092
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(1) Including fleets
Assicurazioni Generali Group – FY 2011 results
41
Loss
ratio
Expense
ratio
P&C – Combined ratio (%)
Total – Expense ratio (%)
71.3 69.0
27.5 27.6
15.3 16.6
10.4 11.6
FY11FY10
FY11FY10
FY11FY10
98.8 96.5
Ratios
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Life – Expense ratio (%)
Assicurazioni Generali Group – FY 2011 results
42FY11 combined ratio reconciliation
A Net earned premiums (net of consolidation adjustments) 20,662.5
B Consolidated net insurance benefits and claims 14,247.4
Consolidated acquisition costs 4,461.9
Consolidated administration costs 1,303.4
Non insurance related administration costs(1) 65.4
Insurance related consolidated administration costs 1,238.0
C Total acquisition and insurance related administration costs 5,699.9
B/A Loss ratio 69.0%
C/A Expense ratio 27.6%
(B+C)/A Combined ratio 96.5%
D Other technical items 45.8
A-B-C-D Technical result 669.4
(1) Administration expenses related to service companies, real estates and other companies not belonging to P&C segment
(Euro m)
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Assicurazioni Generali Group – FY 2011 results
43Ratios by country
(%) ITA FRA GER CEE RoE SPA AUT SWI RoW Consolidated
P&C Loss ratio
FY11 74.7 71.2 65.1 54.5 68.3 68.0 68.2 69.0 65.4 69.0
FY10 77.5 73.3 65.1 60.2 71.4 71.2 68.3 69.0 64.3 71.3
P&C Expense ratio
FY11 22.0 27.5 29.4 35.0 28.1 26.8 27.1 26.5 38.8 27.6
FY10 22.1 28.1 30.1 33.0 28.0 26.8 26.9 26.9 37.2 27.5
P&C Combined ratio
FY11 96.8 98.7 94.4 89.5 96.4 94.8 95.3 95.5 104.2 96.5
FY10 99.6 101.3 95.2 93.2 99.3 98.1 95.2 95.9 101.6 98.8
Life expense ratio by country
FY11 9.7 9.5 12.8 19.8 12.1 4.4 18.6 16.3 16.3 11.6
FY10 8.7 8.2 12.4 17.3 9.8 6.7 19.6 15.2 15.2 10.4
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Assicurazioni Generali Group – FY 2011 results
44Focus on operating result
(Euro m)
FY10 FY11 ∆
Italy 1,537 1,499 -2.5%
France 754 557 -26.2%
Germany 713 684 -4.1%
CEE 419 503 +20.1%
RoE 697 878 +26.0%
RoW 387 322 -16.8%
Operating result(1) 4,508 4,444 -1.4%
Op. holding expenses (288) (294) -2.0%
Consolidation Adj. (143) (222) -55.8%
Total operating
result
4,077 3,928 -3.7%
Operating result by country(1)
969
295378
195
444259
399
252259
286
335
29
131
10
46
22
98
35
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
1,499
557684
503
878
322
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Assicurazioni Generali Group – FY 2011 results
45
3,026
2,542
Life operating result
Life operating result (Euro m)
FY11FY10
-16.0%
Life Operating result by country (Euro m)
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(Euro m)
FY10 FY11 �
Italy 1,188 970 -18.4%
France 596 295 -50.5%
Germany 354 379 +6.9%
CEE 177 195 +10.3%
RoE 417 444 +6.5%
Of which:
Spain 110 114 +3.5%
Austria 64 61 -4.9%
Switzerland 128 116 -9.1%
RoW 293 259 -11.7%
Total 3,026 2,542 -16.0%
Assicurazioni Generali Group – FY 2011 results
46Life net inflows by country
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Country FY10 FY11 Like for like ∆
Italy 1,790 1,085 -39.4%
France 4,444 (2,061) n.m.
Germany 4,923 3,433 -30.3%
CEE 534 475 -12.0%
RoE 2,823 1,473 -49.9%
Of which:
Spain (522) (253) +51.6%
Austria 163 171 +4.8%
Switzerland 545 549 +0.7%
RoW 1,619 1,441 -8.9%
TOTAL 16,133 5,846 -64.0%
Assicurazioni Generali Group – FY 2011 results
47
1,128
1,560
P&C operating result
FY11FY10
+38.3%
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(Euro m)
FY10 FY11 �
Italy 206 399 +94.4%
France 149 252 +69.1%
Germany 308 259 -15.8%
CEE 218 286 +30.9%
RoE 199 335 +68.4%
Of which:
Spain 105 139 +32.0%
Austria 102 107 +5.5%
Switzerland 46 51 +11.3%
RoW 48 28 +40.6%
Total 1,128 1,561 +38.3%
P&C operating result (Euro m) P&C Operating result by country (Euro m)
Assicurazioni Generali Group – FY 2011 results
48Other operating and non operating costs by segment
Life Non Life Financial
(Euro m) FY10 FY11 FY10 FY11 FY10 FY11
TOTAL NET OPERATING EXPENSES (74.6) (47.3) (288.7) (259.3) (28.7) (39.7)
Restructuring costs (26.2) (32.6) (63.0) (39.0) (19.8) (12.9)
Other net non operating expenses(1) (84.1) (132.2) (244.1) (123.4) (36.7) (52.1)
TOTAL NET NON OPERATING EXPENSES (110.3) (164.9) (307.2) (162.4) (56.5) (64.9)
(1) Other non operating expenses include mainly amortization of VOBA
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Assicurazioni Generali Group – FY 2011 results
49
(Euro m) Life P&C Financial Total
FY10 FY11 FY10 FY11 FY10 FY11 FY10 FY11
Net impairments
Equity instruments 447 637 133 178 2 1 581 816
Fixed income 12 2,115 38 242 15 3 64 2,359
Real estate 20 16 (1) 8 - - 19 25
Other investments(2) 17 635 212 225 19 1 248 862
Total net impairments 496 3,403 381 653 35 6 913 4,062
Of which
Operating net
impairments366 2,967 - - 35 6 401 2,975
Non operating net
impairments130 436 381 653 - - 512 1,087
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Focus on impairments(1)
(1) Net of reverse impairments
(2) Including subsidiaries and associated companies, and receivables
Assicurazioni Generali Group – FY 2011 results
50
(Euro m) Life P&C Financial Total
FY10 FY11 FY10 FY11 FY10 FY11 FY10 FY11
Net realized gains
Equity instruments 473 119 157 (15) 1 1 631 105
Fixed income 1,322 1,419 131 18 14 3 1,468 1,440
Real estate 90 178 141 151 - - 231 329
Other investments(2) 10 160 (16) 90 (2) 79 (9) 329
Total net realized gains 1,896 1,876 412 244 13 83 2,321 2,203
Of which
Operating net realized
gains1,839 2,019 - - 15 4 1,854 2,023
Non operating net
realized gains57 (143) 412 244 (2) 79 467 180
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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, and receivables
Assicurazioni Generali Group – FY 2011 results
51Focus on non operating items: interest expenses on financial debt
645 646
59
FY10 FY11
Average cost (%) 5.36% 5.37%
Average maturity (years) 6.87 5.88
Total financial debt (Euro m)Interest expenses on financial debt (Euro m)
FY11FY10
Average cost & maturity of financial debt (%)
646704
(1)
36.5%36.1%
54.1%53.0%
9.5%10.9%
FY10 FY11
Senior Sub/Hybrid Other
12,21812,272
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(1) Net of interest expenses related to Euro 1,750 m senior bond repaid on 20/07/2010
Assicurazioni Generali Group – FY 2011 results
52Reclassified P&L account
(Euro m) Total
FY10 FY11
Total Operating result 4,077 3,928
Net earned premiums 65,727 62,739
Net insurance benefits and claims (67,720) (55,036)
Acquisition and administration costs (11,638) (11,807)
Net fee and commission income and net income from financial service activities 868 933
Operating income from other financial instruments 12,638 10,658
Operating income from financial instruments at fair value through profit or loss 4,880 (2,905)
of which net income from fin. assets and liabilities where the risk is borne by the policyholders 3,824 (3,158)
Operating holding expenses (288) (294)
Net other operating expenses (389) (360)
Non-operating result (1,200) (2,013)
Non-operating income from other financial instruments (32) (907)
Non-operating income from financial instruments at fair value through profit or loss 37 (34)
Non-operating holding expenses (726) (680)
Interest expenses on financial debt (704) (646)
Other non-operating holding expenses (22) (34)
Net other non-operating expenses (479) (392)
Earnings before taxes 2,877 1914
Income taxes (909) (762)
Result from discontinued operations (Intesa Vita) 51 -
Consolidated result of the period 2,018 1,153
Result of the period attributable to minority interests (316) (297)
Result of the period 1,702 856
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Assicurazioni Generali Group – FY 2011 results
53
(Euro m) Life Non life Financial(1)
Unallocated holding expenses
Consolidation adjustments Total
Total Operating result 3,026 1,128 354 (288) (143) 4,077
Net earned premiums 45,453 20,274 - - - 65,727
Net insurance benefits and claims (53,265) (14,451) - - (4) (67,720)
of which var. of provisions related to unit linked business (6,158) - - - - (6,158)
Acquisition and administration costs (5,137) (5,602) (900) - - (11,638)
Net fee and commission income and net income from financial service activities 109 - 894 - (135) 868
Operating income from other fin. Instruments 11,212 1,152 280 - (6) 12,638
Operating income from fin. Instruments at fair value through profit or loss 4,728 44 108 - - 4,880
of which net income from fin.assets and liabilities where the risk is borne by the policyholders 3,824 - - - - 3,824
Operating holding expenses - - - (288) - (288)
Net other operating expenses (75) (289) (28) - 3 (389)
Non-operating result (183) (239) (59) (726) 7 (1,200)
Non-operating income from other fin.instr. (73) 31 (3) - 13 (32)
Non-operating income from fin. instr.at fair value through profit or loss - 37 - - - 37
Non-operating holding expenses - - - (726) - (726)
Net other non-operating expenses (110) (307) (56) - (5) (479)
Earnings before taxes 2,843 889 295 (1,014) (136) 2,877
Reclassified P&L account by segment - FY 2010
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(1) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Report
Assicurazioni Generali Group – FY 2011 results
54
(Euro m) Life Non life Financial(1)Unallocated holding
expensesConsolidation
adjustments Total
Total Operating result 2,542 1,561 342 (294) (222) 3,928
Net earned premiums 42,076 20,662 - - - 62,739
Net insurance benefits and claims (40,770) (14,247) - - (19) (55,036)
of which var. of provisions related to unit linked business 2,132 - - - - 2,132
Acquisition and administration costs (5,176) (5,715) (915) - (1) (11,807)
Net fee and commission income and net income from financial service activities 178 - 859 - (104) 933
Operating income from other fin. Instruments 9,336 1,080 328 - (85) 10,658
Operating income from fin. Instruments at fair value through profit or loss (3,055) 41 109 - - (2,905)
of which net income from fin.assets and liabilities where the risk is borne by the policyholders (3,158) - - - - (3,158)
Operating holding expenses - - - (294) - (294)
Net other operating expenses (47) (259) (40) - (14) (360)
Non-operating result (744) (606) 16 (680) - (2,013)
Non-operating income from other fin.instr. (579) (409) 81 - - (907)
Non-operating income from fin. instr.at fair value through profit or loss - (34) - - - (34)
Non-operating holding expenses - - - (680) - (680)
Net other non-operating expenses (165) (162) (65) - - (392)
Earnings before taxes 1,798 955 357 (974) (222) 1,914
Reclassified P&L account by segment - FY 2011
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(1) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Report
Assicurazioni Generali Group – FY 2011 results
55
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11����4Q11/
����4Q10
Life premiums(1) 14,214 12,137 10,921 13,826 12,340 11,503 10,543 12,009 -13.0%(2)
P&C premiums 6,650 5,128 4,780 5,532 6,792 5,219 4,931 5,823 +6.1%(2)
Total premiums 20,864 17,265 15,700 19,359 19,131 16,722 15,474 17,832 -7.6%(2)
Life operating
result866 702 734 724 881 782 315 564 -22.2%
P&C operating
result312 274 296 246 393 406 405 356 +44.7%
Financial
operating result98 105 74 77 115 96 69 63 -17.9%
Other(3) (98) (123) (108) (103) (133) (131) (96) (156) -51.5%
Total operating
result1,178 958 997 944 1,256 1,153 693 826 -12.5%
Net result 527 346 440 389 616 190 20 31 -92.0%
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Focus on 4Q11 results
(1) Including investment contracts
(2) On like for like basis
(3) Including operating holding expenses and consolidation adjustments
(Euro m)
Assicurazioni Generali Group – FY 2011 results
56
IV. Backup
Agenda
P&L
Balance sheet
Life
Capital
Sustainability
Definitions
Assicurazioni Generali Group – FY 2011 results
57Consolidated balance sheet
(1) Including reinsurance amounts of technical reserve, deferred tax assets, deferred acquisition costs and other assets
Assets Liabilities
(Euro bn) FY10 FY11
Intangible assets 10.7 10.4
Investments
Cash
364.3
11.0
346.7
25.6
Other credits 11.5 11.3
Tangible assets 3.8 4.9
Other assets (1) 21.2 24.2
Total Assets 422.4 423.1
12.212.3Financial debt
(Euro bn) FY10 FY11
Shareholders’ Equity
(Group share) 17.5 15.5
Minority interests 2.6 2.6
Shareholders’ Equity 20.0 18.1
Operating debt 41.6 46.9
Technical reserves 329.6 325.0
Payables and other
provisions 9.1 9.0
Other liabilities 9.7 11.8
Total Liabilities and
Shareholders’ Equity 422.4 423.1
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Assicurazioni Generali Group – FY 2011 results
58
310.8
58.3
97.5
FY11 Assets Under Management
Total
Euro 466.6 bn
Fixed income
instruments
77.6%
Other
4.0%
Real Estate
4.9%
Equity
5.5%
Available for sale
56.5%
Loans
24.7%
Real Estate
4.2%
Group
participations
0.6%
Held to maturity
1.7%Fin. Instr. at fair
value thr. P&L
4.3%
Unit Linked
Third parties AUM
“Own Investments”(1)
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Esposizioni nette a
governativi di
Grecia, Spagna,
Portogallo e Irlanda
(1) For the definitions refer to the related section in the backup
Cash & equival.
7.9%
Cash & equival.
7.9%
Assicurazioni Generali Group – FY 2011 results
59
97.2
189.0
24.7
Total
Euro 310.8 bn
Fixed income instruments
75.5%
Of which bonds 53.0%
Of which loans 22.5%
Real estate
13.5%
Other
9.1%
Subs, ass. & JVs
2.0%
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FY11 Own Investments at amortized cost and fair value(1)
Fixed income instruments
88.9%
Of which bonds 84.6%
Equity
9.0%
Other
2.1%
Investments at amortized cost
Investments at fair value
(1) Excluding unit linked and third parties
Cash & equivalents
Assicurazioni Generali Group – FY 2011 results
60
(Euro m) Life P&C Financial Total(2)
Asset classes BV MV BV MV BV MV BV MV
Equity 13,415 13.415 3,218 3,218 465 465 17,098 17,098
Fixed income instruments 208,088 209,689 22,194 22,134 13,038 13,229 241,278 243,008
Government 100,784 102,388 9,642 9,678 3,329 3,306 113,755 115,372
Corporate 85,329 85,132 9,552 9,457 3,189 3,144 97,682 97,346
Other fixed income 21,976 22,169 3,000 2,998 6,520 6,779 29,841 30,291
Real estate 9,824 12,169 5,474 8,626 24 36 15,322 20,830
FY11 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 2011 results
61Quality of FY11 fixed income portfolio
% Current return
by segment
% Comprehensive
return by segment
Life 4.5 0.8
P&C 3.9 1.2
By issuer (%)
Fixed income portfolio composition (Euro 241.3 bn)
48.4 43.425.5
47.1
41.0 43.0
24.5
40.5
12.4
50.0
13.510.6
Life P&C Financials Total
Government Corporate Other fixed income
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Bond portfolio by rating (%)
32.2% 15.1% 39.0%10.1%
2.6%
1.0%
AAA AA A BBB NIG NR
Average bond portfolio
duration by segment (years) Life P&C
Government 7.0 5.3
Corporate 5.0 3.2
Assicurazioni Generali Group – FY 2011 results
62Focus on FY11 government bond portfolio
% Split by rating Total
AAA 32.1
AA 18.7
A 42.6
BBB 3.6
Not investment grade 2.9
Not rated 0.1
% Split by country Total
Of which
domestic
Italy 40.3 34.9
Germany 10.8 8.3
France 11.9 9.1
CEE 6.2 4.5
RoE 21.6 7.1
RoW 9.2 5.7
40%28%
12%
Life P&C Financial
(Euro 113.8 bn, 47.1% of total fixed income portfolio)
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% of segmental own investments% Split by accounting treatment
16.583.5
Amortized cost Fair Value
Assicurazioni Generali Group – FY 2011 results
63Focus on Greece Sovereign exposure
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� 1H11: Impairment of government bonds with maturities ≤ 2020 based on market values as of 30
June 2011
� 9M11: All Greek government bonds have been impaired based on market values at 30
September 2011
� FY11: All Greek government bonds have been impaired based on market values at 31 December
2011
(1) Haircut on nominal value of Greek bonds
(2) Net of policyholders’ participation and taxes
Period
Gross book
value
(A)
Gross
market
value
(B)
Gross
unrealised
losses
(C) = (A) - (B)
Net
unrealised
losses(2)
(D) = (E) + (F)
Operating Non
operating
Net impact (2)
(E)
June 2011 2,974 1,539 -1,435 -208 46.4% -1,002 -53,4 -142,1 -140 -68
September 2011 2,954 1,143 -1,812 -329 60.8% -1,812 -191,3 -273,6 -329 0
December 2011 2,954 675 -2,279 -686 76.1% -2,279 -378 -309 -472 0
BS before impairment
Gross
Impairment
BS after
impairment (2)
(F)
P&L impact
Haircut
% (1)
Assicurazioni Generali Group – FY 2011 results
64Peripheral government bond portfolio: focus on country exposure
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40.5%52.4%
3.4%3.7%
Italy
Germany
France
RoE
68.7%
3.1%7.4%
20.8%
Spain
Germany
France
RoE
64.9%
23.3%
0.4%
11.4% Italy
Germany
France
RoE
6.5%
86.7%
4.5% 2.3%
Italy
Germany
France
RoE
Italian government bonds (Euro 45.9 bn) Spanish government bonds (Euro 5.5 bn)
Portuguese government bonds (Euro 1.6 bn) Irish government bonds (Euro 1.6 bn)
Assicurazioni Generali Group – FY 2011 results
65Focus on FY11 corporate bond portfolio
% Split by rating Total
AAA 32.3
AA 10.9
A 34.8
BBB 17.7
Not investment grade 2.2
Not rated 2.1
% Split by industry Life P&C
Financials 36.5 49.3
Covered bonds 32.7 23.2
Utilities 6.9 4.9
ABS 2.5 4.2
Telecom 4.3 3.7
Industrial 5.0 4.5
Other 12.1 10.2
(Euro 97.7 bn, 40.5% of total fixed income portfolio)
33.666.4
Amortized cost Fair Value
34% 27%12%
Life P&C Financial
% of segmental own investments% Split by accounting treatment
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Assicurazioni Generali Group – FY 2011 results
66Focus on FY11 covered bond & financial corporate bond portfolios
% Split by rating Total
AAA 87.3
AA 8.3
A 3.8
BBB 0.3
Not investment grade 0.3
Not rated 0.0
(Covered bonds: Euro 30.1 bn)
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% Split by country Total
Italy 3.7
Germany 34.5
France 21.8
CEE 1.1
RoE 38.2
RoW 0.7
% Split by rating Total
AAA 9.1
AA 13.0
A 52.7
BBB 20.5
Not investment grade 3.6
Not rated 1.1
(Financial corporate bonds: Euro 38.4 bn)
% Split by country Total
Italy 13.6
Germany 20.7
France 12.7
CEE 1.8
RoE 31.9
RoW 19.3
Assicurazioni Generali Group – FY 2011 results
67
Assicurazioni Generali Group – FY 2011 results Assicurazioni Generali Group – FY 2011 results
5.4
17.1
(0.3)(0.6)(10.8)
0.0
Focus on FY11 equity portfolio
% split by industry Life P&C
Financials 16.5 27.4
Consumer 10.3 7.8
Utilities 6.9 5.4
Industrial 6.0 7.1
Other 16.2 19.5
Funds 44.2 32.7
5% 9% 2%
Life P&C Financial
% Current return
by segment
% Comprehensive
return by segment
Life 3.8 -12.5
P&C 2.8 -7.9
(Euro 17.1 bn)
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% of total own investments
FY11 Group net equity exposure
Gross
equity
exposure
Hedging Policyholders’
interests
Taxes Minorities Net
equity
exposure
Assicurazioni Generali Group – FY 2011 results
68FY11 Group real estate assets (1/2)
100%24.4100%18.4Total
2%0.42%0.4RoW(2)
18%4.517%3.1RoE(1)
1%0.21%0.2CEE
16%4.022%4.0Germany
23%5.523%4.2France
40%9.835%6.5Italy
% of
the total
Total MV
(Euro bn)
% of
the total
Total BV
(Euro bn)Country
Investment properties vs self use Yield on investment properties
Self Use
14.5 %
Investment
properties
85.5 %
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(1) RoE includes Austria, Spain, Switzerland, Belgium and Netherlands
(2) RoW includes Israel, Latin America, Far East and US
7.3%Life
8.6%
Total
P&C
% Current return by segment
Assicurazioni Generali Group – FY 2011 results
69FY11 Group real estate assets (2/2)
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100%22.1100%6.9Total
2%0.41%0.1RoW
20%4.519%1.3RoE
1%0.22%0.1CEE
15%3.218%1.3Germany
24%5.323%1.6France
38%8.537%2.5Italy
% of
Total MV
MV
(Euro bn)
% of
total area
Area
(sqm m)Country
Residential 10%
Retail 15%
Logistic 3%
Other 7%Office 65%
Direct Investments in leader countries
Assicurazioni Generali Group – FY 2011 results
70Investment yields(1)
Bonds and Loans Equities Investment
properties
Other Total
% return FY10 FY11 FY10 FY11 FY10 FY11 FY10 FY11 FY10 FY11
LIFE
Current 4.4 4.5 3.2 3.8 7.3 7.3 2.1 2.8 4.3 4.5
Total P&L 5.0 4.0 4.6 -0.4 8.2 9.0 1.6 -0.3 5.0 3.7
Comprehensive 2.6 0.8 3.7 -12.5 8.6 8.7 1.6 -0.3 2.8 0.2
NON LIFE
Current 3.8 3.9 2.6 2.8 8.7 8.6 2.9 1.9 4.4 4.3
Total P&L 4.6 3.0 2.4 -3.2 11.0 11.1 1.9 3.5 5.3 3.8
Comprehensive 3.2 1.2 0.8 -7.9 11.2 11.1 1.9 3.5 4.3 2.2
TOTAL
Current 4.3 4.4 3.1 3.6 7.8 7.7 1.8 2.0 4.2 4.3
Total P&L 4.9 3.9 4.3 -0.7 9.3 9.7 1.2 0.5 4.9 3.7
Comprehensive 2.6 0.9 3.2 -11.2 9.6 9.5 1.2 0.5 3.0 0.6
(1) For the definitions refer to the related section in the backup
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Assicurazioni Generali Group – FY 2011 results
714Q11 IFRS Shareholders’ equity roll forward
15.48615,846
17,490
(54)(48)
2931
(319)
-2.3%
IFRS Shareholders’ equity roll forward (Euro m)
Shareholders’
Equity FY10
Shareholders‘
Equity 9M11
∆ in AFS
Reserve
4Q 2011
Net Result
∆ Currency
Translation
Reserve
∆ Cash Flow
Hedge
Reserve
Other Shareholders’
Equity FY11
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Change in AFS reserve (Euro m)
(19)(1.836)
(2.156)
182
(482)
AFS Reserve
9M11
Impact Equity Investments
Impact Bond Investments
Other AFS Reserve FY11
Assicurazioni Generali Group – FY 2011 results
72
16.9 17.8
23.6 23.8
Pro forma Solvency I update
Required margin Available margin
FY11FY10
140%(1) 134%(2)
(Euro bn)
Main drivers of change
(1) Including off balance sheet unrealized gains on real estate, 8%pts of which subject to local authorities’ authorization.
Available margin
� Consolidated result:
� Proposed dividends(3):
� Financial markets and other elements:
� Impact from the potential application of
the “anti crisis regulation”
Required Margin
� Growth of life technical provisions and
financial sector capital requirements:
+ 1.2
- 0.5
- 1.6
+ 1.1
+ 0.9
Pro forma Solvency I update without cap on locally admitted unrealized gains on real estate and
with Italian “anti crisis regulation”
(2) Including off balance sheet unrealized gains on real estate (7%pts of which subject to local authorities’ authorization; 3%pts of which already locally admitted but capped) and
6%pts positive impact from the potential application of the “anti crisis regulation” only related to European Union Government bonds held by Italian companies as durable
investment
(3) Proposed dividend for Shareholders: Euro 0.3 bn; proposed dividend for Minorities: Euro 0.2 bn
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Assicurazioni Generali Group – FY 2011 results
73
17.3 17.820.4 20.8
Regulatory Solvency I development in 4Q11
Required margin Available margin
FY119M11
118% 117%
(Euro bn)
Main drivers of change
Available margin
� Change in rules on cap on locally
admitted unrealized gains on real
estate(1):
� Consolidated result:
� Proposed dividends:
Required Margin
� Growth of financial sector capital
requirements:
+ 0.8
+ 0.1
- 0.5
+ 0.5
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(1) The rule allows the exclusion of AFS losses related to government bonds in the calculation of the cap on locally admitted unrealized gains on real estate. With the current
rule, Solvency I ratio as at 9M11 would have been 122%
Assicurazioni Generali Group – FY 2011 results
74
132
122
123
141
137
128
Stress tests on Solvency I and Shareholders’ equity
Impact on regulatory solvency I ratio (%) Impact on Shareholders’ equity (Euro bn)
Total ratio 01.03.2012
Equities -30%
Interest rate +100bps
Interest rate -100bps
Credit spread +100bps
Real estate -10%
(1.6)
(1.9)
1.9
(0.8)
Equities -30%
Interest rate +100bps
Interest rate -100bps
Credit spread +100bps
(1) (1)
(1) Before hedging impact
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Assicurazioni Generali Group – FY 2011 results
75Total comprehensive income(1)
1,308
(1,031)
270
(306)(1,326)
196
(505)
181
(1,010)
(178)
1,916
459
794 (245)
1,033
(644)
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
(Euro m)
(1) For the definitions refer to the related section in the backup
1Q08 1H08 9M08 FY08 1Q09 1H09 9M09 FY09 1Q10 1H10 9M10 FY10 1Q11 1H11 9M11 FY11
(1,031) (1,536) (1,354) (2,365) (178) 616 2,532 2,990 1,308 1,063 2,096 1,452 270 466 (860) (1.166)
+3,000 m
-3,000 m
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Assicurazioni Generali Group – FY 2011 results
76AFS reserve breakdown
(Euro m) FY09 FY10 FY11
Fixed income instruments 225 (562) (1,780)
Government 281 (396) (1,216)
Corporate (56) (166) (564)
Equity 475 277 (382)
Investment funds and other 29 101 7
TOTAL 730 (184) (2,156)
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Assicurazioni Generali Group – FY 2011 results
77Financial debt schedule
0
500
1,000
1,500
2,000
2,500
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)
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Assicurazioni Generali Group – FY 2011 results
78FY11 technical reserves
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(Euro m) Traditional Linked TOTAL
Life net technical reserves(1)
Italy 79,863 5,692 85,555
France 66,401 13,115 79,516
Germany 74,897 12,051 86,948
CEE 5,505 1,259 6,764
GROUP TOTAL 258,311 58,253 316,564
(1) Including investment contracts for Euro 15,670 million
(Euro m) Motor Non Motor TOTAL
P&C net technical reserves
Italy 4,910 6,862 11,772
France 2,165 3,306 5,472
Germany 1,797 2,285 4,082
CEE 1,203 838 2,041
GROUP TOTAL 13,602 17,002 30,604
Assicurazioni Generali Group – FY 2011 results
79Operating ratio on investments(1)
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FY10 (%) FY11 (%) �(%pts.)
Italy 1.44 1.21 -0.23
France 0.74 0.36 -0.38
Germany 0.43 0.44 +0.01
CEE 2.51 2.63 +0.12
GROUP TOTAL 0.97 0.80 -0.17
Life operating ratio on investments (%)
P&C operating ratio on investments (%)
FY10 (%) FY11 (%) �(%pts.)
Italy 1.63 3.34 +1.70
France 2.78 4.73 +1.95
Germany 5.01 4.45 -0.56
CEE 6.82 8.53 +1.71
GROUP TOTAL 3.07 4.32 +1.25
(1) For the definitions refer to the related section in the backup
Assicurazioni Generali Group – FY 2011 results
80Number of shares(1)
Ordinary
Shares issued
(1)
Own
shares
(2)
Shares
outstanding
(1-2)
Weighted number of shares outstanding in year ending
12.31.2010 1,540,850,443
shares outstanding at 12.31.2010 1,556,873,283 15,999,446 1,540,873,837
Capital increase - - -
Stock grant plan - - -
Exercise of stock options - - -
Generali shares purchase - (1,976) 1,976
Change in scope - - -
shares outstanding at 12.31.2011 1,556,873,283 15,997,470 1,540,875,813
Weighted number of shares outstanding in year ending
12.31.2011 1,540,875,154
Potential (dilutive) shares:
Stock options - - -
Weighted number of shares outstanding in year ending
12.31.2011 adjusted for the effects of all dilutive
potential ordinary shares. 1,540,875,154
Weighted number of shares outstanding in year ending
12.31.2010 adjusted for the effects of all dilutive
potential ordinary shares. 1,540,850,443
(1) Calculation based on IAS 33
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Assicurazioni Generali Group – FY 2011 results
81Per share(1) indicators
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(Euro) FY11
Earnings per share(1) 0.55
Dividend per share 0.20
Book Value per share(2) 10.1
ANAV per share(2) 8.5
Embedded Value per share(2) 14.6
(1) Calculated on the basis of weighted shares outstanding during 2011 (1.540.875.154)
(2) Calculated on the basis of shares outstanding at 31.12.2011 (1.540.875.813)
Assicurazioni Generali Group – FY 2011 results
82
IV. Backup
Agenda
P&L
Balance sheet
Life
Capital
Sustainability
Definitions
Assicurazioni Generali Group – FY 2011 results
83
7,224
23,927 24,341
19,372561
2601,580
194976609
Life & health EV roll-forward
Life & health embedded value earnings (Euro m) Return on embedded value
Life & health RoEV
Life & health Normalised RoEV
-18.1%Adjusted embedded value FY10 24,341
Embedded value earnings -4,408
Normalised EV earnings (1) 2,858
(Euro m)
Perimeter,
FX
Adjusted
EV FY10NBV
Expected
contributionOperating
variance
Economic
varianceCapital
flow
EV FY11Model
changesEV FY10
11.7%
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( )
Including:
-2.3 bn due to interest rate decrease
-4.3 bn due to spread widening and
equity market drop
(1) Life normalised EV earnings defined as NBV + Expected contribution + Operating variance excluding extraordinary expenses (-43 m)
( )
( )
Assicurazioni Generali Group – FY 2011 results
84FY11 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 19,372 m
-1.2
-35.1
-4.8
+4.8
-17.2
+12.2
-3.8
Assicurazioni Generali Group – FY 2011 results
85Life new business: APE
(Euro m) APE Annual Premiums Single Premiums
2010 2011Like for like
� 2010 2011Like for like
� 2010 2011Like for like
�
Italy 1,766 1,715 -2.9% 1,091 1,175 +7.7% 6,753 5,404 -20.0%
France 1,172 939 -19.8% 307 320 +4.5% 8,649 6,187 -28.5%
Germany 976 908 -7.0% 709 675 -4.8% 2,665 2,324 -12.8%
CEE 172 147 -8.9% 139 126 -3.8% 330 210 -30.5%
RoE 792 657 -17.4% 442 432 -2.9% 3,506 2,254 -35.7%
Austria 97 104 +7.0% 72 81 +12.1% 252 232 -7.9%
Spain 118 126 +6.2% 55 56 +2.1% 636 698 +9.7%
Switzerland 96 85 -13.5% 89 78 -14.1% 69 67 -5.4%
RoW 455 421 +7.0% 364 366 +10.7% 908 553 -12.3%
Total 5,333 4,787 -9.0% 3,052 3,094 +2.7% 22,810 16,933 -24.8%
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Assicurazioni Generali Group – FY 2011 results
86Life new business: value and margins
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(Euro m) NBV
2010 2011Historical
�
Like for like �
Italy 326 374 +14.7% +14.8%
France 146 128 -12.4% -12.4%
Germany 173 166 -3.9% -3.9%
CEE 56 52 -5.5% +0.0%
RoE 197 134 -32.1% -32.5%
Austria 23 15 -36.0% -36.0%
Spain 28 21 -24.5% -24.5%
Switzerland 41 16 -60.6% -61.8%
RoW 153 121 -20.4% -11.9%
Total 1,050 976 -7.1% -5.6%
Margins on APE
2010 2011 ∆ %pts
18.4% 21.8% +3.3%
12.5% 13.7% +1.2%
17.7% 18.3% +0.6%
32.3% 35.8% +3.4%
24.9% 20.4% -4.5%
23.3% 14.0% -9.4%
23.3% 16.6% -6.8%
42.8% 18.9% -23.9%
33.5% 28.8% -4.7%
19.7% 20.4% +0.7%
Margins on PVNBP
2010 2011 ∆ %pts
2.2% 2.6% +0.4%
1.3% 1.4% +0.1%
1.7% 1.7% +0.0%
4.3% 5.0% +0.6%
3.0% 2.6% -0.5%
2.3% 1.3% -1.1%
2.8% 2.0% -0.9%
4.0% 1.7% -2.3%
3.6% 3.0% -0.6%
2.2% 2.3% +0.1%
Assicurazioni Generali Group – FY 2011 results
87Value of asset gathering
Value of In-force business (Euro m) Value of new business (Euro m)
20112010
+3.9%
20112010
+28.3%
2010 2011 %
New inflows
(Euro bn) 17.2 24.3 +41.6%
Value of new business
in % of New inflows 0.94 0.85 -9bps
2010 2011 %
Assets under
management (Euro bn) 62.7 65.3 +4.2%
Value of business In-
force in % of AUM 1.72 1.71 -1bp
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.
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1,117
1,075161
206
Assicurazioni Generali Group – FY 2011 results
88Investment in life new business
1st year P&L impact
In % of NBP
-1.0
3.8%
Capital absorption
In % of NBP
-0.7
2.8%
1st year strain
In % of NBP
-1.7
6.6%
New Business Value
NBM
1.05
19.7%
Internal Rate of Return 13.9%
Payback period 6.5 years
New Business Value
NBM
0.98
20.4%
Internal Rate of Return 12.6%
Payback period 7.4 years
2010 2011
1st year P&L impact
In % of NBP
-1.0
4.9%
Capital absorption
In % of NBP
-0.8
3.8%
1st year strain
In % of NBP
-1.7
8.7%
(Euro bn)
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Assicurazioni Generali Group – FY 2011 results
89Expected Life cash flow generation
Life & Savings expected free cash flows (Euro m)
2,151
1,034 879
629 459
(990)(987)
2,130
(720)(760)
Existing Run Off
2011
New Business
2011
Free Cashflow
2011
Existing Run Off
2010
New Business
2010
Free Cashflow
2010
Capital
Profit
2011 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+
2011 New Business
Expected undiscounted cash flows
-2,000
-1,500
-1,000
-500
0
500
1,000
1,500
2,000
Year 0 Years
1-5
Years
6-10
Years
11-15
Years
16-20
Years
21-25
Years
26-30
Years
31+
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Assicurazioni Generali Group – FY 2011 results
90
IV. Backup
P&L
Balance sheet
Life
Capital
Sustainability
Definitions
Assicurazioni Generali Group – FY 2011 results
91
Group Risk
Capital
€23.2 bn
EBS results: risk capital diversification and capital allocation
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Total diversification benefits at 23%
(1) Not under Internal Model refers to entities currently based on previous top-down model
(2) Based on preliminary figures
(Euro bn)
(6.9) (2)
30.1(2)
23%
Group RAC at 99.95%
before diversification
Not under IM(1) 2.1
Operational
Non-Life U/W
Life U/W
Credit &
Currency
Interest rate
Real estate
Equity
7%
2.1 / 7%
/
2.6 / 8%
3.3 / 11%
7.0 / 23%
4.4 / 15%
2.9 / 10%
5.9 / 19%
23.2(2)
Group RAC
at 99.95%
Group
diversification
Geographic breakdown
Breakdown of Group risk capital
after diversification
Property & Casualty: Resulting at
34.0% of Net Earned Premiums
Life & Health: Resulting at 4.9%
of Net Technical Provisions
Financial: Resulting at 1.6% of
AuM
Italy
41%
Germany
12%
France
22%
Other
25%
Assicurazioni Generali Group – FY 2011 results
92FY11 reconciliation of life & health MCEV with group EV (EBS basis)
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(Euro m)Life & Health
MCEV Other GROUP
IFRS equity 11,107 4,379 15,486
MTM of Assets 3,386 2,876 6,262
Goodwill (633) (6,761) (7,394)
Life DAC, VoBA and other adjustments (2,652) (840) (3,491)
MTM of Debt and Employee Benefit Plans (87) 1,021 934
Fair Value adj, of P&C Liabilities - 1,268 1,268
Unrealised Gains included in L&H VIF 17 0 17
Adjusted Net Asset Value 11,138 1,943 13,081
In-force value (Life & AuM) 8,233 1,117 9,350
Embedded Value (EBS basis) 19,372 3,060 22,431
Assicurazioni Generali Group – FY 2011 results
93
6,262
12,401
5,767
15,486(10,886)
29,030
IFRS equity MtM of Assets MtM of Liab. GW & Oth. Intang. Sub.Debt incl. AC Available Capital
From IFRS Equity to Available Capital
(Euro m)
(Euro m)
Increase of 13,544 due to:
�+ 18,663 impact of unrealised gains and losses on
Assets and Financial Liabilities and Fair Value
adjustments on Technical Provisions;
�- 10,886 elimination of Goodwill and Intangible
Assets;
�+ 5,767 inclusion of Fair Value of Subordinated
Debt.
+ 13,544
29,030
(6,313) (1,402)
1,117 22,431
Available
Capital
Adj. For
Sub. Debt
CoC AuM VIF Group EV
FY11
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Assicurazioni Generali Group – FY 2011 results
94
IV. Backup
P&L
Balance sheet
Life
Capital
Sustainability
Definitions
Assicurazioni Generali Group – FY 2011 results
95Generali in the ethical indices
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Assicurazioni Generali Group – FY 2011 results
96Global Added Value (GAV)
GAV (Euro m) 2011 GAV breakdown (%)
20112009 2010
-6.6%
12,63513,633
12,737
Employees
33.5%
State
5.1%
Shareholders
4.8%
Agents & FAs
42.1%
Credit capital
providers(1)
9.8%
Group
4.3%
Community
0.4%
(1) Total interest expense (including operating debt)
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Assicurazioni Generali Group – FY 2011 results
97Number of employees
Number of employees 2011 number of employees by area (%)
20112009 2010
-3.9%
85,322 85,36881,997
France
10.8%
CEE
16.5%
Rest of World
15.6%
Germany
18.4%
Rest of
Europe 17.9%
Italy
20.7%
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Assicurazioni Generali Group – FY 2011 results
98Training
Hours of per capita training 2011 hours of per capita training by area
-2.5%
20112009 2010
31.7
41.1 40.1
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Assicurazioni Generali Group – FY 2011 results
99Allocation to the community
Allocation to the community (Euro m) 2011 allocation to the community by area (%)
20112009 2010
+7.9%
41.2
45.5 49.1
France
3.7%
CEE
12.2%
Rest of World
5.3%
Germany
17.7%
Rest of
Europe 20.6%
Italy
40.5%
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Assicurazioni Generali Group – FY 2011 results
100
2010 2011 Change
Per capita electrical energy consumption (kWh) 5,192 4,831 -7.0%
Renewable sources quota 56.9% 69.0% -
Paper consumption (quintals) 71,288 71,314 0.0%
Environmentally friendly paper quota 47.5% 65.8% -
Per capita water consumption
(cubic meters)21 19 -8.7%
Selective waste collection quota 78.0% 75.4% -
Environmental data(1)
(1) Data refers to the Environmental Management System (EMS) of the Generali Group. A set of buildings in six countries (Italy, Austria, France, Germany, Spain and
Switzerland) is currently included in the EMS
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Assicurazioni Generali Group – FY 2011 results
101
2010 2011 Change
Total emissions of CO2 equivalent97,739 92,273 -5.6%
Total emissions of CO2 equivalent - Scope 1
(Direct emissions produced by heating systems
and the corporate fleet of cars)
20,342 18,216 -10.5%
Total emissions of CO2 equivalent - Scope 2
(Indirect emissions from energy consumption,
associated with the use of electrical energy and
district heating)
55,201 51,944 -5.9%
Total emissions of CO2 equivalent - Scope 3
(Indirect emissions not from energy consumption,
connected to the employee work journeys)
22,195 22,113 -0.4%
Environmental data(1)
(1) Data refers to the Environmental Management System (EMS) of the Generali Group
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Assicurazioni Generali Group – FY 2011 results
102
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P&L
Balance sheet
Life
Capital
Sustainability
Definitions
Assicurazioni Generali Group – FY 2011 results
103Definitions: P&L and balance sheet (1/2)
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Investments Returns are calculated on quarterly average asset base at IFRS book value and are defined as follows:
Current return: interests, dividends and similar income
Total P&L return: = current return + harvesting return (net realized gains, net impairments and net unrealized
gains reported in P&L)
Comprehensive return:
i) for fair value investment (AFS, FVthPL) = current return + total change in fair value;
ii) for investment at amortised cost (Real estates, loans, HtM) = Total P&L return
Investment returns for Life segment 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 calculated considering equivalent exchange rates and scope of consolidation
Operating Result Operating result of life, P&C and financial segments, before holding expenses and consolidation adjustments
Assicurazioni Generali Group – FY 2011 results
104
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. They are net of consolidation adjustments.
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)
IV. BACK UP
Assicurazioni Generali Group – FY 2011 results
105Definitions: Life EV (1/2)
IV. BACK UP
Adjusted Net Asset
Value (ANAV)
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.
Annual Premium
Equivalent (APE)
is defined as new business annualised regular premiums plus 10% of single premiums.
Embedded Value
Earnings
correspond to the difference between the closing and the opening EV, excluding adjustments to opening EV
and capital movements.
Internal Rate of Return
(IRR)
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.
Life Embedded Value
(EV)
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.
Assicurazioni Generali Group – FY 2011 results
106Definitions: Life EV (2/2)
IV. BACK UP
New Business Value
(NBV)
is the present value, at the point of sale, of the projected stream of after tax industrial profits expected to be
generated by the covered new business written in the year, taking into account the actual acquisition costs
incurred in the year of sale, after allowance for:
� the cost of financial guarantees and options granted to policyholders
� the frictional costs of setting up and holding the required capital
� the cost of non hedgeable risks
NBV is calculated according to year-end economic and operating assumptions
Normalised Embedded
Value Earnings
correspond to Embedded Value Earnings, net of economic variances and extraordinary expenses.
Payback Period 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
Present Value of New
Business Premiums
(PVNBP)
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
Value In-Force (VIF) 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
Assicurazioni Generali Group – FY 2011 results
107Definitions: Group EV (1/2)
IV. BACK UP
Available Capital (AC) It is internally defined as the sum of:
� the excess of market value of assets over market value of liabilities
� subordinated liabilities
Economic Balance
Sheet (EBS)
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) value of all assets and liabilities, of available capital and risk capital, both at entity and
Group level.
Embedded Value (EV) 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.
Normalised RoEV Annualised and normalised earnings on opening Embedded Value
Risk Capital or Risk
adjusted capital (RAC)
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.
RoEV Embedded Value earnings on opening Embedded Value
Assicurazioni Generali Group – FY 2011 results
108What’s next
April 28, 2012 - General Shareholders’ Meeting
May 11, 2012 - 1Q 2012 Results
August 2, 2012 - 1H 2012 Results
November 9, 2012 - 9M 2012 Results
Assicurazioni Generali Group – FY 2011 results
109Investor Relations Team
Salvatore Colotti (Tel.: +39-040-671317)
Head of Investor Relations & Head of Life Technical Department
Email: [email protected]
Stefano Burrino (Tel.: +39-040-671202)
Email: [email protected]
Emanuele Marciante (Tel.: +39-040-671347)
Email: [email protected]
Veronica Cherini (Tel.: +39-040-671488)
Email: [email protected]
Rodolfo Svara (Tel.: +39-040-671823)
Email: [email protected]
Marta Porczynska (Tel.: +39-040-671402)
IR Events
Email: [email protected]
Assicurazioni Generali
P.za Duca degli Abruzzi 2
34132 Trieste, Italy
Fax: +39 040 671338
e-mail: [email protected]
www.generali.com
Assicurazioni Generali Group – FY 2011 results
110Disclaimer
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
2011 Results
Milan, March xxx, 2010March 21, 2012