Generali Group 2006 Results

Transcription

1 Generali Group Results March March 21, 2007

2 Agenda 2 I. at a Glance V. Final Remarks II. Group Financials VI. Backup III. Life Review VII. Breakout Session IV. P&C Review

3 Agenda 3 I. at a Glance Strategic initiatives taken key data Proposed dividend Strategic Plan update

4 Strategic initiatives taken 4 Capital Optimisation: Minorities & Hybrid Growth and innovations: Acquisitions & J.V. Operational Improvement: Restructuring Initiatives AMB (Share: Increased to 85.05%) Generali Holding Vienna (Share: Increased to 100%) Generali Schweiz Holding (Share: Increased to 100%) Migdal (Share: Increased to 69.8%) Euro 4.8 bln of hybrid debt issued Acquisition of 98.44% of Toro Four key acquisitions in CEE growth markets: Acquisition of major ity shareholding in Delta Osiguranje, Serbia s largest private insurance company (Life and P&C) Acquisition of 100% of Libertas insurance company (Croatian life insurer) Acquisition of 51% of Garant Auto and Garant Life Acquisition of a 86% shareholding in Orel-G Holding, leading insurance player in Bulgaria Strategic expansion in India: JV agreement with Pantaloon Retail, leading retailer and set up of Future Generali JV (Life and P&C) Acquisition of Banca Unione di Credito, with AuM of CHF 4.6 billion (Private financial services provider in Switzerland) Simplification and rationalisation of corporate organisation and business structure in Italy Merger of Generali Vita and Assicurazioni Generali S.p.A. Integration of INA and Assitalia under the INA Assitalia brand name Integration of Italian activities of BSI into Banca Generali and IPO of Banca Generali Reorganisation of French activities Reorganisation of Asset Management activities

5 key data 5 RoEV normalised (%) Net result (Euro mln) pts ,919 2, % > 2,300 Target Target New business value (1) (Euro mln) P&C combined ratio (%) 826 1, % pts 97.2 Target (1) Life and asset gathering Target

6 Proposed dividend up nearly 40% 6 Dividend per share (Euro) CAGR +31.5% +39% % %

7 Strategic Plan update 7 Time-span of Business Plans to be aligned with the appointment of the Board and Senior executives Major issues to consider on our three strategic pillars Capital optimisation Operational improvement Growth & innovation Excess capital continues to build with an additional Euro 500 mln in Continue the focus on active capital management to enhance shareholder value creation Focus on relentless drive of operational improvement Raise our ambitions in this area Increasing focus on third age customers Serve clients with a broad range of income protection products (longevity and morbidity protection, healthcare) Focus on talent management A Strategic Plan update will be presented after the AGM

8 Agenda 8 II.Group Financials Operating result by segment From operating result to net result Shareholders equity Group Embedded Value & RoEV Capital adequacy Debt & leverage

9 Operating result by segment 9 Operating result (1) by segment (Euro mln) Life operating result 2, ,081.0 Changes (%) +11.8% P&C operating result 1, % Financial services operating result % Consolidation adjustments (73.6) (40.5) -81.7% Total operating result 3, , % A financial performance measure to evaluate the quality and the sustainability of the earnings from the ongoing segment activities and from the Generali Group core business (1) See backup for definition

10 From operating result to net result 10 (Euro mln) Total operating result Non operating investment income (1) % Interest expenses on financial debt (2) (369.1) (466.2) -26.3% Net other non operating expenses (3) Total non operating result 59.7 (126.3) % Income taxes attributable to policyholders (4) % Consolidated result of the period before taxes and minority interests Income taxes Minority interests Net result of the period FY 3,282.9 (131.6) 3,547.1 (1,136.9) (491.7) 1,918.6 FY 3,969.2 (116.9) 3,918.8 (1,056.4) (457.5) 2,404.8 Changes (%) +20.9% +11.2% +10.5% +7.1% +7.0% +25.3% (1) P&C net realised and unrealised gains on investments + life and financial services net realised and unrealised gains on strategic investments, net of policyholders share (2)The amount is net of the share attributable to the policyholders in Germany and Austria, equal to Euro 4.7 mln (Euro 4.8 mln at FY ) (3) Restructuring charges and other non-recurring income and expenses (4) The amount refers to the share attributable to the policyholders in Germany and Austria

11 IFRS Shareholders Equity roll forward 11 (Euro mln) +9.0% 2,409 (366) 15,207 13,947 (689) (94) Shareholders Equity FY05 Dividend paid in Change in FV of Inv. Assets YE Net Result Other Shareholders Equity FY06

12 Group Embedded Value 12 26,093 2, ,209 (286) 25,839 (138) 23,186 (2,907) (689) (1) EV Goodwill from acquisitions and other adjustments EV Dividend paid after adjustments (2) (2) YE net result Change of AFS res erve (3) Other BS changes Change of VIF (Life & AM), net adjustments Other off BS changes (2) EV YE (1) Af ter EEV methodology change; (2) Related to Toro, other acquisitions, minorities buy -out and share buy back; (3) Net of change in double counting Embedded Value Earnings (Euro mln) Embedded Value YE Opening Embedded Value (after adjustments (1) ) 25,839 23,186 ( p.s.) Return on Embedded Value RoEV 14.4% (4) Dividend paid in 689 Embedded Value Earnings 3, % RoEV normalised (5) (4) RoEV embedded value earnings on opening EV (5) RoEV Normalised is after cost of debt, before Tax and Inv estment Variances

13 Key Performance Indicators: RoEV and RoEC 13 Return on Capital (Euro bln) P&C L&H AM Economic Capital Dividend Excess Capital (net of dividend) Available Capital Subordinated Debt Cost of Senior Debt -189 Embedded Value (normalised) 23,186 25,839 3, % 13.1% Tax and Investment variances % 1.4% RoEV ( before EEV change) 12.3% 14.4% Further Inv. variances (1) 2.1% - Return on Embedded Value 3, % 14.4% Comments Figures allow for all extraordinary operations since 1 January (buy back, buy out, Toro and other acquisitions, subordinated debt including Euro 2 bln issued Feb 2007) Return on Economic Capital well in excess of Cost of Capital Driven by improvement in combined ratio and life NBV, achieved in spite of lower life risk discount rates Positive investment variances (1) Following EEV methodology adoption YE Capital (pro-forma) 6,726 17, , ,861 29,587-6,401 YE Capital 6,843 18,960 1,132 26, ,350 32,240-6,401 earnings 1,224 1, , , YE Returns 13.8% 11.9% 12.4% 12.4% 3.5% 11.9% YE Returns 18.2% 11.2% 14.9% 13.2% 4.1% 11.7% 3.9%

14 Capital adequacy at YE 14 Capital Allocation: Available Capital 32.2 bln Economic Capital Life & Health Euro 19.0 bln (59%) Asset Management Euro 1.1 bln (4%) Property & Casualty Euro 6.8 bln (21%) Proposed dividend (2) Euro 1.0 bln (3%) Property & Casualty 39% net earned premiums Life & Health 3.4% life technical reserves plus value of in force Asset Management 0.5% assets under management plus value of in force Definition of excess capital (1) (Euro bln) YE Excess Capital Euro 4.3 bln (13%) Embedded Value Subordinated Debt Available Capital 32.2 Economic Capital + proposed dividend (2) 27.9 Excess Capital 4.3 (1) All f igures shown including Euro 2 bln subordinated debt issued February 2007 (2) To be paid in May 2007

15 Financial debt and leverage 15 Leverage ratio (1) (%) Mid-term range % 25% Financial debt and EV including minorities at YE06 (Euro bln) Hybrid Subordinated Senior & Short Term instruments YE04 1H05 YE05 1H06 YE EV including Minorities Leverage ratio does not give credit for equity component of debt Current regulations (Solvency I) do not give Tier 1 capital treatment for hybrid / deeply subordinated debt Financial strength ratings S&P AA Moody s Aa3 FITCH AA Stable outlook Negative outlook Stable outlook AMBest A+ Stable outlook (1) Leverage ratio is defined as: [ Total Financial Debt ] / [ Total Financial Debt + Embedded Value including Minorities ] (2) Hybrid debt includes the Euro 2 bln issue of February 2007, issued to repay the bridge loan for Toro acquisition

16 Agenda 16 III. Life Review Operating result Life EEV Country analysis

17 Life operating result 17 Life operating result (Euro mln) +11.8% result by market (%) Italy 53.6% Germany 8.3% 2,081 2,327 France 15.0% Spain 3.0% CEE 0.4% RoW 19.7%

18 Life EV key numbers 18 Life Embedded Value (Euro mln) Value of New Business (Euro mln) 17,188 Life RoEV 13.7% 20, % 925 APE (1) (Euro mln) Margins on APE (%) +11.8% +1.4 pts. 3,738 4, (1) Annual Premium Equivalent: New regular premiums + 10% of single premiums

19 Life EV: Annual Premium Equivalent 19 Double digit increase of APE, with annual premiums +20% (Euro mln) APE 11.8% APE increase, 8.9% on a like for like basis Italy 1,309 1,353 % 3.4% Italy: Strong focus on APE annual premiums (+10.6% on a like for like basis) in a negative market Germany: APE increase 10.1% on a like for like Germany % basis France RoE , % 19.1% France: Unit Linked APE up 35% RoE: Significant APE growth in Spain, CEE and UK RoW: Significant growth from Mexico and Israel, RoW Total 337 3, , % 11.8% more than compensating for the maxi single premium in China

20 Life EV: New Business Value % increase in NBV (Euro +150 mln) and margins on APE over 22% (Euro mln) Italy Germany France RoE RoW Total NBV % 11.2% 51.6% 15.1% 35.0% 3.1% 19.3% Margins on APE pts. 29.8% 32.1% 2.3% 12.7% 14.7% 1.9% 13.3% 14.1% 0.8% 25.0% 28.3% 3.3% 14.2% 13.8% -0.4% 20.7% 22.1% 1.4% Strong growth in NBV, except RoW (effect of maxi single premium in China): NBV increases by 14.2% on a like for like basis Profitability up 1.4pts. due to: Italy: Quality of production Germany: Improved NBV movement (Euro mln) (5) economic environment France: Increased weight of Unit Linked RoE: Increased profitability in Austria and Switzerland Perimeter Exchange Volume Profitability

21 Life EV movement 21 Return on EV at 13.7% with EV earnings amounting to Euro 2,515 mln (Euro mln) Toro acquisition and mi norities buyout in G ermany, Switzerland, Austria and Israel 17,188 1,312 (117) EV earnings (92) 925 1, Increas e in int erest rates and positi ve performanc e of st oc k mar kets (127) Capital movements in Life EV perimeter incl uding divi dends 20,772 Strengt hening of Eur o agai nst US Dollar, Israeli Shekel, Mexican Peso and Swiss Franc Value at FY05 Change in perimeter Exchange rate f luctuation Model Change New business v alue at point of sale Unwinding Economic exp. v ar. / ch. in ass. Operating experience variance Change in operating assumptions Capital movement Value at FY06 Value at FY05 17,188 Value at FY05 after change in perimeter/exch. rate 18,384 EV earnings 2,515 Return on EV 13.7% VIF Discount rate up 54bp to 6.79% Risk free up 52bp to 4.1%, due to increase in interest rates Risk margin stable at 2.69% (2.67% in )

22 Life EV: Return on EV 22 Good returns in most countries (Euro mln) EV RoEV RoEV performance Main factors Italy 11.5%: Economic variance limited by fee based business component Italy Germany France RoE 8,774 1,483 2,670 2,834 9,922 2,122 3,620 3, % 21.2% 16.7% 16.8% Germany 21.2%: Excellent RoEV driven by strong NBV growth and positive impact from increased interest rates France 16.7%: Positive operating variance due to switch from traditional to Unit Linked business RoE 16.8%: Strong NBV and positive economic and operating variances (expenses and taxation) RoW Total 1,427 17,188 1,436 20, % 13.7% RoW 6.4%: Negative operating experience due to strengthening of competition in Mexican pension business

23 Value of Asset Gathering 23 Value of In-Force Business (Euro mln) Value of New Business (Euro mln) % +56.1% % % Assets under management (Euro bln) Value of Business In- Force in % of AUM % +39bp New inflows (Euro bln) Value of New Business in % of New inflows % +37bp Assumptions 10 year local govt. Bond Discount rate Equit y return Expense inflation Taxation Asset Gathering 3.77% 6.61% 6.68% 1.67% 23.9% Retail asset gathering busi ness relates to the group's two primary asset gatherers, BSI and Banca Generali. The v alue of in-force asset gathering business in BSI is the present v alue of the proj ected stream of future after-tax profits that are expected to be generated by the priv ate banking contracts which are in force at the v aluation da te. For Banca Generali, the v alue of in-force business is the present v alue of the proj ected stream of distribution margins that are expected to arise associated with the insurance and asset manage ment products managed, together wi th fee income, net of costs, expected to emerge in group asset management companies associated with these produc ts. New asset management business comprises the amount of new mone y collected, net of swi tches wi thin di fferent classes of asset manage ment products. The v alue added by new business allows for the actual acquisition costs i ncurred, using end-year assumptions, incl uding proj ected future inv estment returns in the year of sale. Valuation according to traditi onal EV and rev iewed by Tilli nghast.

24 Italian Life operations: highlights 24 Positive APE growth (+3.4%) despite negative market trends, driven by profitable annual & recurrent premium production Robust APE growth of proprietary channels (+8.2%) 24.2% decrease in APE of lower margin Bancassurance channel after years of strong growth Share of Life GWP: 38.8% Expense ratio increases to 7.4% driven by higher weight of acquisition costs (+1pts), due to lower volumes of group life business and commercial push of more expensive high margin annual premium production GWP (Euro bln) -7.6% (1) Life operating result (Euro mln) +1.4% Market share (%) Generali Group (1) ,230 1,247 Allianz Group Unipol Poste Italiane 7.9 n.a. (1) -9.0% on like f or like basis Aviva (1) mar ket s hare does incl udes Toro group for t he full year Source: ANIA and Generali esti mates; calculated on gross direct written premiums

25 International Life operations: highlights 25 Germany Share of Life GWP: 23.4% GWP (Euro bln) (1) +4.7% on like f or like basis Life operating result (Euro mln) +5.2% (1) +7.8% Leadership in New production (APE): Very strong Riester year: +202% (351,000 new polices to reach 1.2 mln portfolio) Single premium far above market: +57.9% (Mkt +35.1%) Term life: Leading 26.4% market share Universal life: Increase by +65% Corporate pension: +13.5% Leader in Unit Linked recurrent premium new production (22.3% market share) Life expense ratio: 15.0% (-0.4 pts) France GWP (Euro bln) % 10.4 Life operating result (Euro mln) % 348 Successful completion of merger activities Increased quality of portfolio mix: Strong growth in Unit Linked (+39%) now representing 30% of portfolio High risk product share (14% of portfolio) Good progress in internet sales and private wealth management Share of Life GWP: 22.5% Life expense ratio among the best (7.2%) despite one-off restructuring & advertising costs (1) On épargne / retreite portfolio

26 International Life operations: highlights 26 Spain Share of Life GWP: 2.6% GWP (Euro bln) 0.8 Life operating result (Euro mln) +40.1p.p % Premium growth enhanced by further strengthening in group saving SPE (+75.3%, of which Euro mln Centro Asegurador) Significant growth (+10.4%) in non SPE premiums, driven by traditional agents channel (+16.8%) and particularly focused on individual term (+12.5%), group life (+20.5%) and Unit Linked (+11.8%) Operating result improvement driven by both better mortality and higher investment income CEE GWP (Euro bln) +29.9p.p. (1) Life operating result (Euro mln) +5.5% Double digit organic growth obtained through Successful multi channel strategy Innovative Unit Linked products (SK, CZ, PL, HU) Recent acquisitions with large market share in Life (Serbia 19%; Bulgaria 10% Ukraine 11%) Share of Life GWP: 1.0% (1) +25.6% on like f or like basis 9 9 In Poland within top 3 performers in pension funds financial return since 2000

27 Agenda 27 IV. P&C Review Revenues & operating result Combined ratios Country analysis

28 P&C premiums 28 Gross written premiums (Euro mln) P&C operating result (Euro mln) 17, % (1) +44.5% 18, (1) +2.9% on like for like basis premiums split (%) result by market (%) Retail 78% Commercial 22% Italy 19.3% Germany 16.3% RoW 21.7% France 22.0% CEE 4.4% Spain 16.4%

29 P&C profitability net combined ratio 29 Combined ratio (%) Breakdown by country(%) -1.6 pts. Italy (1) (0.4) (1.2) Germany France Aus tria Spain Switzerland CEE Israel RoW Expense Loss ratio ratio Target Total (1) Excluding foreign branches

30 Italian P&C operations: highlights 30 Share of P&C GWP: 34.1% GWP (Euro bln) P&C operating result (Euro mln) +17.3% (1) % (1) +3.3% on like f or like basis Overall combined ratio reduction of 0.5 pts (to 97.2%) driven by lower expense ratio Market beating growth in motor business (+2.1% like for like v.s. +1.3% market growth) Continuing satisfactory growth rates in profitable non motor lines up 4.6% driven by accident & health and by other retail business Genertel 11% growth rate in direct sales Combined ratios by company (1) (%) Generali (2) Market share (%) Generali Gr oup (1) Assitalia Fondiaria Sai Genertel Allianz Group Toro Group (12 months) Unipol Total Generali Group Italy (3) Reale Mutua (1) All ratios are IFRS compliant (2) Generali direct business combined ratio on like for like basis (3) figure is including 4t h quarter of Toro Group (1) mar ket s hare i ncludes T oro group f or the f ull year Source: ANIA and Generali esti mates; calculated on gross direct written premiums

31 International P&C operations: highlights 31 Germany Share of P&C GWP: 16.2% GWP (Euro bln) P&C operating result (Euro mln) +0.1% +23.9% Slight growth, in a declining market Business expanding in non-motor retail lines (+2.1%) thanks to innovation in products and effective segmentation CoR: -1.2 pts driven down by strong reduction in expense ratio (-1.5 pts) On going optimisation of claims management Move restructuring projects: Claims factory and shared services company set-up & ready to start France Share of P&C GWP: 19.1% GWP (Euro bln) P&C operating result (Euro mln) +2.1% +40.8% Successful completion of merger activities Growth notwithstanding planned reduced exposure in Corporate lines and completed pruning of ex C&Z portfolios Strategic expansion in profitable segments: SME, Accident & Health and Assistance CoR: -1.2 pts thanks to enhanced product mix / portfolio quality & loss ratio improvements

32 International P&C operations: highlights 32 Spain Share of P&C GWP: 7.8% GWP (Euro bln) P&C operating result (Euro mln) +5.9% +24.4% Remarkable growth in non motor lines (+7.8%), particularly homeowners and SMEs More moderate growth in motor (+2.4%) due to pricing pressures CoR: Decrease to 88.4% (-1.7 pts); due to -1.0 pts expense ratio improvement and -0.7 pts loss ratio improvement Decreased loss ratio in non-motor, stable in motor despite highly competitive market CEE Share of P&C GWP: 3.9% GWP (Euro bln) (1) +14.1% on like f or like bases P&C operating result (Euro mln) +21.6% (1) +32.9% Strong organic growth (+14.1%), even with reduced fronting (EU enlargement brought to corporate polices in foreign master programs) Acquisitions in Serbia & Ukraine with high growth potential in non-life; Bulgaria with unique know how & leading position in health Combined ratio: -2.7 pts; Loss ratio -1.3 pts notwithstanding floods and exceptional snow; expense ratio -1.4 pts due to increased economies of scale

33 Agenda 33 V. Final Remarks 2008 Strategic Plan update Toro acquisition update

34 Progress Report on Group Strategic Programs: Overview 34 Completed In progress Program Diagnostic Target Model design Pilot Implementation 1. Asset Management Scale-based Programs 2. Risk Management 3. IT Consolidation 4. Group Treasury (1) 5. Motor Tariff Skill-based Programs 6. Claims Management 7. Operational Excellence 8. Innovation Lab New Project announced in November Third age (1) Started pilot in Italy

35 Progress of Toro Group integration projects 35 Integration projects into Generali Group platforms Completed Asset Management HR Administration Group Purchasing Benefits from 2007 Started I. T. Risk Management & Underwriting Holding Benefits from 2007/08 Master Plan started Administration Claims Operations Benefits from 2008/09 Synergies Expected in mln Annual synergies expected at group level within 2007: Euro 60 mln Achieved 22mln Synergies already achieved in March: Euro 22mln Synergies to be re-assessed after the completion of all master plans and after TAR s decision concerning Nuova Tirrena.

36 Agenda 36 VI. Backup Revenues & financials EEV Capital

37 Agenda 37 VI. Backup Revenues & financials EEV capital

38 FY06 premiums by country 38 Life Gross written premiums (%) Country Increase (1) weight on consolidated Euro 46,081 mln Market share Ranking P&C Gross P&C premiums (%) Country Increase (1) weight on consolidated Euro 18,445 mln Market share Ranking Italy % 1 Italy % 1 Germany % 2 Germany % 5 France (2) % 4 France % 5 Spain % 8 Spain % 4 Austria % 3 Austria % 3 Switzerland % - Switzerland % 6 Eastern Europe Eastern Europe Rest of Europe Rest of Europe Rest of World Rest of World To tal To tal (1) On homogeneous basis with constant exchange rates (2) Ranking among non banc assurance players (1) On homogeneous basis with constant exchange rates

39 Life Premiums by Country & Business Line 39 Life FY06 (Euro mln) Traditional Unit/index linked Health Group Investment contracts Total Italy 75.5% 17.9% 0.0% 5.0% 1.7% 17,512.0 Germany 53.2% 23.2% 17.1% 6.1% 0.4% 10,786.8 France 61.6% 25.3% 6.8% 5.8% 0.4% 10,229.7 Spain 30.5% 2.9% 0.0% 66.6% 0.0% 1,173.3 Aus tria 49.9% 28.7% 21.3% 0.0% 0.0% Switzerland 23.5% 64.0% 1.3% 2.6% 8.6% Eastern Europe 39.8% 33.6% 3.8% 2.0% 20.8% Other Europe 20.0% 6.9% 2.4% 26.1% 44.6% 1,270.7 Rest of World 23.9% 2.2% 7.5% 66.5% 0.0% 2,007.5 Total life gross direct premiums 60.2% 20.7% 6.5% 10.2% 2.5% 45,141.1

40 P&C Premiums by Country & Business Line 40 P&C FY06 (Euro mln) Motor Accident/ Health Personal Commercial Total Italy 43.2% 19.2% 11.0% 26.5% 6,227.2 Germany 39.8% 14.6% 36.7% 9.0% 2,989.5 France 32.6% 14.3% 31.8% 21.3% 3,280.5 Spain 37.9% 10.2% 17.3% 34.7% 1,416.9 Aus tria 49.8% 9.8% 26.3% 14.1% 1,254.6 Switzerland 51.8% 20.2% 24.7% 3.3% Eastern Europe 52.8% 6.4% 17.3% 23.4% Other Europe 41.9% 9.6% 13.4% 35.1% Rest of World 53.3% 9.1% 4.4% 33.3% Total P&C gross direct premiums 41.8% 14.8% 21.0% 22.4% 17,954.1 (1) Personal and commercial

41 Ratios 41 Life Expense ratio (%) P&C Combined ratio (%) Expense ratio Loss ratio FY05 FY06 FY05 FY06 Total Expense ratio (%) FY05 FY06

42 combined ratio reconciliation 42 (Euro mln) A Net earned premiums (net of consolidation adjustments) 16,314.5 B Consolidated net overall losses 11,325.1 Consolidated acquisition costs 3,360.3 Consolidated administration costs 1,116.9 Non insurance related administration costs (1) Insurance related consolidated administration costs 1,028.9 C B/A C/A (B+C)/A Total acquisition and insurance related administration costs Loss ratio Expense ratio Combined ratio 4, % 26.9% 96.3% (1) Administration expenses related to ser vice companies, real estates and other companies not belonging to P&C segment

43 Ratios by country 43 (%) ITA GER FRA SPA AUT SWI CEE ISR ROW Consolidated P&C Loss ratio FY FY P&C Expense ratio FY FY P&C Combined ratio FY FY Life expense ratio by country FY FY * 20.0* * Investment contracts are included

44 Reclassified P&L account 44 (Euro mln) Operating result Net earned premiums Net insurance benefits and claims Acquisition and administration costs Net fee and commission income and net income from financial service activities Operating income from investments Net other operating expenses Income taxes attributable to the policyholders (1) Non-operating result Non-operating income from investments (2) Interest expenses on financial debt (3) Net other non-operating expenses (2) Income taxes attributable to the policyholders (1) Earnings before taxes 3, ,918.8 Income taxes -1, ,056.4 Income taxes attributable to the policyholders (1) Income taxes attributable to the shareholders Consolidated result of the period 2, ,862.3 Result of the period attributable to minority interests Result of the period 1, ,404.8 (1) The amount refers to the share attributable to the policyholders in Germany and Austria (2) P&C net realised and unrealised gains on investments + life and financial services net realised and unrealised gains on strategic investments, net of policyholders share (3) The amount is net of the share attributable to the policyholders in Germany and Austria, equal to 4.7 mln Euro (4.8 mln at 31/12/) FY 3, , , , ,648.9 Total FY 3, , , , ,752.1

45 Reclassified P&L account FY 45 (Euro mln) Life Non life Financial Consolidation adjustments To tal Operating result 2, ,282.9 Net earned premiums 44, , ,082.4 Net insurance benefits and claims -52, , ,563.4 Acquisition and administration costs -4, , ,441.0 Net fee and commission income and net income from financial service activities Operating income from investments 14, , ,648.9 Net other operating expenses Income taxes attributable to the policyholders (1) Non-operating result Non-operating income from investments (2) Interest expenses on financial debt (3) Net other non-operating expenses (2) Income taxes attributable to the policyholders (1) Earnings before taxes 2, , ,547.1 (1) The amount refers to the share attributable to the policyholders in Germany and Austria (2) The amount is net of the share attributable to the policyholders (3) The amount is net of the share attributable to the policyholders in Germany and Austria, equal to 4.7 mln Euro (4.8 mln at 31/12/)

46 Reclassified P&L account FY 46 (Euro mln) Life Non life Financial Consolidation adjustments To tal Operating result 2, , ,969.2 Net earned premiums 44, , ,383.3 Net insurance benefits and claims -50, , ,981.4 Acquisition and administration costs -4, , ,874.7 Net fee and commission income and net income from financial service activities Operating income from investments 14, , ,752.1 Net other operating expenses Income taxes attributable to the policyholders (1) Non-operating result Non-operating income from investments (2) Interest expenses on financial debt (3) Net other non-operating expenses (2) Income taxes attributable to the policyholders (1) Earnings before taxes 2, , ,918.8 (1) The amount refers to the share attributable to the policyholders in Germany and Austria (2) The amount is net of the share attributable to the policyholders (3) The amount is net of the share attributable to the policyholders in Germany and Austria, equal to 4.7 mln Euro (4.8 mln at 31/12/)

47 Consolidated balance sheet 47 Assets Liabilities (Euro bln) FY05 FY06 (Euro bln) FY05 FY06 Intangible assets Shareholders Equity (Group share) Investments Minority interests Cash Other credits Shareholders Equity Subordinated and financial liabilities Tangible assets Other assets (1) Technical reserves Other debts and allowances Other liabilities Total Assets Total Liabilities and Shareholders Equity (1) Including reins uranc e amounts of t echnical res erve

48 Investments 48 (Euro mln) FY05 % on total FY06 % on total Real Estate (1) 10, , Group Participations , Loans 41, , Held to maturity , Available for sale 189, , Financial Instruments at fair value through Profit and Loss 65, , Total investments 307, , (1) Excl uding real estate mutual funds

49 Financial services segment 49 Financial services segment: Operating result (Euro mln) +18.9% Italy 29.4% Germany 15.7% RoW 19.1% Switzerland 35.8% Financial services segment: Net fees and commissions (Euro mln) Third party AUM (Euro bln) +16.7% +9.2%

50 Assets Under Management Total Euro bln Third parties AUM 47.9 Unit Linked Available for sale 67.5% Loans 18.1% Real Estate (2) 4.0% Group participations 0.4% Held to maturity 0.4% Fixed income instruments 78.4% Other 4.5% Real Estate (3) 4.3% Equity 12.8% Fin. Instr. at fair value thr. P&L 9.7% Own Investments (1) (1) Own Invest ments exclude real est ate for own use. Wit h t his asset class Own Investments woul d amount to bln. (2) Excl uding real estate mutual funds (3) Including real estate mutual funds

51 Quality of bond portfolio 51 Bond Portfolio Composition By issuer (%) (Euro bln) By rating (%) Government 64.0 Corporate 36.0 AAA 44.7 AA 14.8 Not investment grade 0.3 Not rated 1.4 BBB 2.9 A 35.9

52 Agenda 52 VI. Backup Revenues & financials EEV Capital

53 Life EV: Assumptions 53 Economic and Financial Assumptions FY06 Italy Germany France RoE RoW 10y Government Bond 4.16% 3.95% 3.95% 3.99% 6.20% Equity Return 6.85% 6.85% 6.85% 6.71% 8.22% Property Return 5.10% 5.10% 5.10% 4.54% 6.47% Asset Mix (Bond-Eq-Pr-Oth) Expenses inflation 2.06% 1.85% 1.85% 1.76% 3.40% Taxation 26.1% 39.6% 34.4% 22.1% 33.9% Economic and Financial Assumptions FY05 Italy Germany France RoE RoW 10y Government Bond 3.49% 3.33% 3.33% 3.36% 6.68% Equity Return 6.23% 6.23% 6.23% 6.14% 8.71% Property Return 4.48% 4.48% 4.48% 4.01% 6.98% Asset Mix (Bond-Eq-Pr-Oth) Expenses inflation 1.79% 1.63% 1.63% 1.69% 3.19% Taxation 28.5% 39.0% 34.4% 22.4% 33.8%

54 Life EV: NBV movement 54 Total ( mln) Italy ( mln) (5) FY05 Perimeter Exch. Rate Volume Profitability FY06 Germany ( mln) FY05 Perimeter Exch. Rate Volume Profitability FY06 France ( mln) FY05 Perimeter Exch. Rate Volume Profitability FY06 FY05 Perimeter Exch. Rate Volume Profitability FY06 RoE ( mln) RoW ( mln) (1) (4) 27 (23) 49 FY05 Perimeter Exch. Rate Volume Profitability FY06 FY05 Perimeter Exch. Rate Volume Profitability FY06

55 Life EV: APE & Present Value New Business Premiums (PVNBP) 55 ( mln) APE Annual Premiums Single Premiums FY05 FY06 % FY05 FY06 % FY05 FY06 % Italy 1,309 1, % % 6,891 6, % Germany % % % France 966 1, % % 6,949 7, % RoE % % 1,206 1, % RoW % % 1, % Total 3,738 4, % 2,073 2, % 16,648 16, % ( mln) PVNBP Duration of Premiums Duration of Annual Premiums FY05 FY06 % FY05 FY06 FY05 FY06 Italy 11,550 11, % Germany 4,782 6, % France 9,004 9, % RoE 3,801 4, % RoW 2,882 2, % Total 32,020 34, %

56 Life EV: PVNBP & Margins on PVNBP 56 ( mln) PVNBP NBV Profitability on PVNBP FY05 FY06 % FY05 FY06 % FY05 FY06 pts Italy 11,550 11, % % 3.4% 3.8% 0.4% Germany 4,782 6, % % 1.6% 1.9% 0.3% France 9,004 9, % % 1.4% 1.5% 0.1% RoE 3,801 4, % % 3.5% 3.8% 0.3% RoW 2,882 2, % % 1.7% 2.1% 0.5% Total 32,020 34, % % 2.4% 2.7% 0.3%

57 Life EV movement Italy 57 ( mln) (27) (21) (567) 434 9, (6) 8,774 Value at FY05 Change in perimeter Exchange rate fluctuation Model Change New business: Value at point of sale Unwinding Economic exp. var. / ch. i n ass. Operating experience variance Change in operating assumptions Capital movement Value at FY06 Value at FY05 Value at FY05 after change in perimeter/exch. rate EV earnings Return on EV 8,774 9,410 1, %

58 Life EV movement Germany 58 ( mln) 210 (2) (10) (31) 2, (35) ,483 Value at FY05 Change in perimeter Exchange rate fluctuation Model Change New business: Value at point of sale Unwinding Economic exp. var. / ch. i n ass. Operating experience variance Change in operating assumptions Capital movement Value at FY06 Value at FY05 Value at FY05 after change in perimeter/exch. rate EV earnings Return on EV 1,483 1, %

59 Life EV movement France 59 ( mln) 503 3,620 2, (26) Value at FY05 Change in perimeter Exchange rate fluctuation Model Change New business: Value at point of sale Unwinding Economic exp. var. / ch. i n ass. Operating experience variance Change in operating assumptions Capital movement Value at FY06 Value at FY05 Value at FY05 after change in perimeter/exch. rate EV earnings Return on EV 2,670 2, %

60 Life EV movement Rest of Europe 60 ( mln) ,673 2, (17) 178 (23) Value at FY05 Change in perimeter Exchange rate fluctuation Model Change New business: Value at point of sale Unwinding Economic exp. var. / ch. i n ass. Operating experience variance Change in operating assumptions Capital movement Value at FY06 Value at FY05 Value at FY05 after change in perimeter/exch. rate EV earnings Return on EV 2,834 3, %

61 Life EV movement Rest of World 61 ( mln) 91 (100) (45) 12 (74) 1,427 (53) 49 1,436 Value at FY05 Change in perimeter Exchange rate fluctuation Model Change New business: Value at point of sale Unwinding Economic exp. var. / ch. i n ass. Operating experience variance Change in operating assumptions Capital movement Value at FY06 Value at FY05 Value at FY05 after change in perimeter/exch. rate EV earnings Return on EV 1,427 1, %

62 Life EV: ANAV reconciliation to IFRS equity 62 (mln) IFRS equity Net unrealised gains not in IFRS equity Goodwill, DAC and other adjustments Own shares Adjusted Net Asset Value In-force value (Life) Embedded Value Capital movements / change in perimeter /exchange rate fluctuation Embedded Value earnings FY05 8, , ,568 9,620 17,188 FY06 10, , ,473 11,299 20,772 1,069 2,515 Return on Embedded Value (RoEV) 13.7%

63 Life EV: Discount Rates 63 (%) VIF Discount Rate VIF Risk Free VIF Risk Margin FY05 FY06 pts. FY05 FY06 pts. FY05 FY06 pts. Italy 6.16% 6.85% 0.69% 3.33% 3.97% 0.64% 2.83% 2.88% 0.05% Germany 5.47% 5.75% 0.28% 3.47% 4.05% 0.58% 2.00% 1.70% -0.30% France 5.55% 6.39% 0.84% 3.47% 4.06% 0.59% 2.08% 2.33% 0.25% RoE 6.31% 7.04% 0.74% 3.22% 3.88% 0.66% 3.09% 3.16% 0.07% RoW 8.69% 8.29% -0.40% 5.79% 5.39% -0.40% 2.90% 2.90% 0.00% Total 6.25% 6.79% 0.54% 3.57% 4.10% 0.52% 2.67% 2.69% 0.02% (%) NBV Discount Rate NBV Risk Free NBV Risk Margin FY05 FY06 pts. FY05 FY06 pts. FY05 FY06 pts. Italy 5.72% 6.22% 0.50% 3.33% 3.98% 0.65% 2.38% 2.24% -0.15% Germany 5.39% 5.60% 0.21% 3.46% 4.04% 0.59% 1.93% 1.56% -0.38% France 5.46% 6.40% 0.94% 3.45% 4.05% 0.60% 2.00% 2.35% 0.34% RoE 6.17% 6.56% 0.39% 3.22% 3.88% 0.66% 2.95% 2.69% -0.26% RoW 8.80% 8.70% -0.10% 5.90% 5.80% -0.10% 2.90% 2.90% 0.00% Total 5.91% 6.37% 0.46% 3.51% 4.08% 0.57% 2.40% 2.29% -0.11%

64 Agenda 64 VI. Backup Revenues & financials EEV Capital

65 Life & Health Return on Economic Capital 65 Life and Health RoEC (Euro mln) Comments APE (1) of new business New business margin New business value Economic capital unwind Operational variances Result post tax Economic capital (opening) RoEC is based on beginning of year 3,738 4,178 Economic Capital 20.7% 22.1% Economic Capital (opening) is after buy out, Toro and other acquisitions Economic Capital unwind is equal to opening EC multiplied by opening RDR Operational variances relate to persistency, 1,727 1,947 mortality and expenses 14,534 17,386 RoEC slightly decreased because of the fall in the risk discount rate: Life and Health RoEC 11.9% 11.2% (%) RDR YE YE 6.25 (1) APE: new regular pr emiums plus 10% of single pr emiums

66 Property & Casualty Return on Economic Capital 66 Property & casualty RoEC (Euro mln) Comments Net Earned Premiums Net Combined Ratio Insurance Result 15, % , % 600 Normalised investment income is net of investment administration expenses, and includes Toro (annualized) RoEC improves by 4.4 p.p. as a result of further improvement in technical result Other technical income/outgo Net Technical Result (from first 9 months of Toro) RoEC is based on beginning of year Economic Capital (adjusted for Toro) Normalised investment income 1,196 1,336 Net Result pre tax Normalised tax 1, , Normalised assumptions: Result post tax 901 1,270 P&C RoEC (before minorities) P&C RoEC (after minorities) 13.8% 13.8% 18.3% 18.2% (%) Tax rate Inv. Return P&C

67 Reconciliation of Life EEV with Group EV 67 (Euro bln) Life EEV Other (1) Group IFRS equity Net unrealised gains not in IFRS equity Goodwill, DAC and other adjustments Own shares Adjusted Net Asset Value In-force value (Life & AuM) Embedded Subordinated Debt (including 2 bn issued Jan 07) Group Available Capital (1) Other includes Holdings, Non Life and Financial Services

68 Reconciliation of RoEV 68 Return on Embedded Value (%) 2004 EEV impact to VIF EEV impact future dividend reversed Property & Casualty Life & Health Asset Management RoEC normalised Excess Capital RoEV normalised Cost of Debt Tax & In v. Variances RoEV

69 Agenda 69 VII. Breakout Session

70 Generali Group operating result 70 Generali Group definition Operating Result* A financial performance measure to evaluate the quality and the sustainability of the earnings from the ongoing segment activities and from the Generali Group core business * Attestation of compliance w ith the basis of preparation disclosed in the MD&A report w ill be released by Pw C

71 Generali Group operating result 71 The operating result is based on the new business approach on the P&L segment reporting Substantial reduction of the consolidation adjustments: Both dividends received by non-life and financial companies and paid by companies of other segments, and realized gains and losses on intra-segment transactions are eliminated within the non-life and financial segments Interest income and expense on loans between Group companies belonging to different segments are eliminated within each segments The main consolidation adjustment not pushed back regards: Dividends received by the operating life companies and paid by the non-life and financial companies

72 Generali Group operating result 72 Operating result Premiums, claims, adm. & acquisition costs, commissions Current income (interest & dividend) Net realised gains Realised gains and losses on inv. in subs, ass, JV and strategic investments Realised gains and losses on other fin. instrum. and investment properties Net impairment losses and net unrealised gains Net impairment losses on inv. in subs, ass, JV and strategic investments Net impairment losses and net unrealised gains on other fin. instrum. and investment properties Interest expenses Life Non Operating operating (1) (1) Operating Non Life Non operating Operating Financial Non operating Interest expenses on operation dept Interest expenses on financial dept (1) Other income and expenses Income and expenses not recurring (Restructuring charges, Result of non current assets held for sale, ) Other income and expenses (1) Assicurazioni (1) Net of policyholders benefits Generali Gr oup FY res ults

73 From operating result to net result 73 (Euro mln) Total operating result Non operating investment income (1) % Interest expenses on financial debt (2) (369.1) (466.2) -26.3% Net other non operating expenses (3) Total non operating result 59.7 (126.3) % Income taxes attributable to policyholders (4) % Consolidated result of the period before taxes and minority interests Income taxes Minority interests Net result of the period FY 3,282.9 (131.6) 3,547.1 (1,136.9) (491.7) 1,918.6 FY 3,969.2 (116.9) 3,918.8 (1,056.4) (457.5) 2,404.8 Changes (%) +20.9% +11.2% +10.5% +7.1% +7.0% +25.3% (1) P&C net realised and unrealised gains on investments + life and financial services net realised and unrealised gains on strategic investments, net of policyholders share (2)The amount is net of the share attributable to the policyholders in Germany and Austria, equal to Euro 4.7 mln (Euro 4.8 mln at FY ) (3) Restructuring charges and other non-recurring income and expenses (4) The amount refers to the share attributable to the policyholders in Germany and Austria

74 Operating result by segment 74 (Euro mln) Operating Life Non Life Financial Consolidation adjustments Total FY 2, ,282.9 FY 2, , ,969.2 Changes Non operating Life Non Life Financial Consolidation adjustments Total Policyholders taxes Life Total Total Life Non Life Financial Consolidation adjustments Total 2, , , , , , Taxes Total -1, , Net before minorities Minorities Net 2, , , ,

75 Life operating result 75 (Euro mln) FY FY Changes Life operating result Italy 1, , Germany France Spain Swiss Austria RoW Total 2, ,

76 P&C operating result 76 (Euro mln) FY FY Changes P&C operating result Italy Germany France Spain Swiss Austria RoW Total ,

77 Disclosure further enhancing 77 FINANCIAL STATEMENTS PRESENTATION Substantial reduction of consolidation adjustments from 3Q06 results Further disclosure on geographical segments from FY06 results Introduction of operating results from FY06 results FURTHER ENHANCING DURING 2007 Fast closing delivery during 2007 EEV: market consistent approach from FY07 results Economic Balance Sheet with bottom up approach from FY07 results Financial Statements: introduction of a Holding segment from FY07 results

78 Disclaimer 78 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 SpA 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.

79 Generali Group Results March March 21, 2007