In this number GENERALI GROUP NEWS Generali Group: consolidated results at 30th June 2009 Generali acquires a 30% stake in Chinese asset management company Guotai and signs a comprehensive cooperation agreement GENERALI ASIA REGIONAL NEWS Generali Asia hosted the Inaugural Executive Committee Meeting Generali Pilipinas sales force in Macau OUR ACTIVITIES: GENSOCIETY- GENCULTURE-GENSPORT Generali Thailand: Blood Donation on the National Life Insurance Day GENCURIOUS did u know that Did you know that Generali won the 2009 Investor Relations Magazine Awards? 1
GENERALI GROUP NEWS Generali Group: consolidated results at 30th June 2009 Venice, 31. At a meeting chaired by Antoine Bernheim, the Board of Directors of Assicurazioni Generali approved the consolidated financial statements at 30 June 2009. At the end of the first half the Group reported a net profit of 504 million, a significant improvement on the first-quarter result of 103.8 million, achieved through strong progress in the second quarter. This was thanks in particular to the recovery in Life premium growth and a further reduction in costs, making this the best result of the last four quarters hit by the economic and financial crisis. Net profit reflected the impact of additional gross impairments totaling approximately 1 billion arising from trends in the financial markets, a decrease in current financial income largely as a result of the decline in dividend income, and the downturn in the loss ratio which was affected by significant catastrophic events. Net profit for the first half was down 65.5% from 1,460 million in the year-earlier period. The faster growth in second-quarter Life premiums (+4.7% from the first quarter of 2009) and the steady trend in the non-motor premiums in the Non-Life business enabled the Group to keep first-half premiums substantially stable at 34,683 million at a time of economic recession (-1.5%; 36,792 million at 30 June 2008), thanks to the effectiveness of its distribution model and its geographical diversification. Commenting on the results, Assicurazioni Generali Chairman Antoine Bernheim said: We close this first half of the year - a period impacted in its early months by what is considered to have been the worst period of the financial crisis with confirmation of Generali s ability to respond effectively in a challenging environment. We have been rewarded for our geographic spread and for the effectiveness of our distribution model, our financial and management discipline, but above all for our determination to maintain a long term vision for our business. These strengths, in a period also marked by a number of significant natural disasters, have enabled us to deliver in the second quarter the best results since the beginning of the global financial crisis. We therefore look ahead with confidence to the full year in which our objective is to improve gross premiums and their profitability in the life business and to maintain positive core business margins in the Non-life business. We expect the second six months to remain challenging; however the Group has shown in the past both strength and flexibility in meeting its objectives even in testing times. Net profit at 504 million, up by 400 million from the end of March 2009 Premiums at 34.7 billion in line with the first half of 2008, despite the economic crisis. Life net inflows up to 7.1 billion (+6.5%) Solid capital position confirmed with shareholders equity at 11.6 billion, +5.4% from the end of March 2009 2
Generali Group: consolidated results at 30th June 2009 First-half premiums substantially stable, showing faster growth in the second quarter Total premiums 34.7 billion (-1.5%) Life premiums 23 billion (-1.9%), Non-Life premiums 11.6 billion (-0.9%) Life technical reserves 271 billion (+3.6% from end 2008) Positive Life premium performance in second quarter (+4.7% from the first quarter 2009) Significant contributions, in Life in particular, came from Germany, France and China Group efficiency improves Sharp reduction in administrative expenses and holding costs to 1.2 billion (-4.4%) High profitability in new Life production. Non-Life impacted in particular by extraordinary major events such as the Abruzzo earthquake and storms in Italy, France and Spain Life New Business Value 464 million from 568 million, with high margins on APE at 19.4% Combined ratio 97.9% from 94.6% Overall operating result 1.9 billion (-21%) Recovery in Life operating result in second quarter (+37% from the first quarter 2009) Solid capital position confirmed Embedded Value up to 23.1 billion; normalised RoEV at 12.5% Solvency I up 2 p.p. to 125% 3
GENERALI ACQUIRES A 30% STAKE IN CHINESE ASSET MANAGEMENT COMPANY GUOTAI AND SIGNS A COMPREHENSIVE COOPERATION AGREEMENT Trieste, Assicurazioni Generali has signed an agreement to acquire a 30% stake in the share capital of the Chinese asset management company Guotai AMC, the first established in China in 1998 and today one of the few authorized to manage all classes of assets. Among these assets, the supplementary pension plans for enterprises have been recently launched in China and the management of the related funds is reserved exclusively to the authorized asset management companies. Guotai AMC manages part of the assets of the NSSF National Social Security Fund, as well as the funds pertaining to the second pillar of the new social security system which introduced several voluntary pension plans based on contributions jointly made by employers and employees (the so-called Enterprise Annuities). Guotai AMC is also licensed to invest part of the assets in foreign instruments. Sergio Balbinot stated: The alliance with Guotai allows us to complement the range of insurance products already offered by our local companies as well as to realize the strategic plan of becoming one of the key players in China in providing supplementary pension plans for enterprises. To date, added Balbinot, the insurance license has permitted us to focus, within this sector, only on immediate annuity policies aimed at retirees. From now on, thanks to the license held by Guotai for Enterprise Annuities, Generali will be one of the few insurance groups able to complete the offer dedicated to the Chinese enterprises extending its operations to the largely unexplored segment of the supplementary pension plans for enterprises pertaining to the second pillar and aimed at the active population of workers of either State Owned or Private companies. The transaction is worth some 100 million and is subject to the approval of the relevant Chinese authorities With Guotai AMC, Generali will be able to expand its pension offer to the second pillar supplementary pension plans recently introduced in China. The potential market is estimated at up to 220 million workers. According to the estimates, only 5% of them currently contribute to a supplementary pension plan. Immediately operative the cooperation between the two companies: Generali and Guotai AMC agreed to cooperate in sharing know-how and best practices on technical and knowledge-based issues in the fields including pension products design,risk management, training and market research. Mr. Balbinot: We aim to be one of the key players in China providing supplementary pension schemes to enterprises 4
GENERALI ASIA REGIONAL NEWS Generali Asia hosted the Inaugural Executive Committee Meeting Hong Kong, SAR. The Inaugural Meeting of the Executive Committee Asia took place in Hong Kong on the 18th 19th June. The Executive Committee chaired by the Honorary Chairman Mr. G.N. Bajpai and formed of all Country Managers in Asia, Department Heads from the Generali Asia Regional Office in Hong Kong and with the honorable participation of representatives from the Head Office, was a two day platform for a structured dialogue and expertise sharing at regional level. Executive Committee Asia Hong Kong 18-19 June 2009 Executive Committee Asia Generali Pilipinas sales force in Macau Generali Pilipinas hosted a four-day conference for 71 delegates in Macau and Zhuhai for the excellent performance of its sales force as well as the exceptional contribution of its employees to the goals of the Company. Generali Pilipinas team 5
Our Activities GENSOCIETY GENCULTURE GENSPORT GENSOCIETY Generali Thailand: Blood Donation on the National Life Insurance Day Bangkok. On 31st July, Generali Thailand s staffs participated to the blood donation to the National Blood Centre of the Thai Red Cross Society. This donation was organized on the occasion of National Life Insurance Day and in the co-operation with Thai Life Assurance Association. Generali Thailand team One for All at the National Blood Centre, Thai Red Cross Society, Bangkok. 6
EVENT CALENDAR WHEN EVENT WHERE August 25th Executive Committee Generali Pilipinas Manila, Philippines GENCURIOUS did u know that Did you know that Generali won the 2009 Investor RelationS Magazine Awards? On June 23rd 2009, awards were assigned to best European Investor Relations teams by specialized newspaper IR Magazine. Assicurazioni Generali ranks first in the Italian ranking (it includes all industries). IR Magazine commissioned the research to an independent body, which interviewed about 700 portfolio managers and analysts: the results were checked and verified, then received by IR Magazine, which contacted the winning companies and published the rankings. 7