GENERALI GROUP 9M 2015 Results
Please note that prior year’s figures have been restated throughout the whole presentation to reflect the new perimeter of the Group.
Net income, Shareholders’ Equity, Solvency I, Life Value KPIs, Embedded Value are not adjusted for disposed entities.
The like for like change of written premiums, life net inflows, APE and NBV is on equivalent terms (on equivalent exchange rates and consolidation area).
© Generali
November 5, 2015 9M 2015 Results
Agenda
I. Profit & Loss and Balance Sheet Page 3
II. Business Review Page 10
III. Backup Page 24
2
© Generali
November 5, 2015 9M 2015 Results
Agenda
I. Profit & Loss and Balance Sheet
3
© Generali
November 5, 2015 9M 2015 Results
Net Result: Increasing 9%, to €1.7bn, already surpassing full year 2014. Driven by the further improved
operating performance of the period and the lower interest expenses on financial debt
Operating Result: Continued to increase thanks to both Life business (+4%) and P&C business (+5%)
Life: Growing operating result despite weaker market conditions. High net flows especially in unit linked, with
strongly improving new business margin in 3Q
P&C: Further improvement in combined ratio, despite higher Nat Cat
Shareholders’ equity: Slightly decreasing compared to year end, due to market effects, dividend paid,
and deconsolidation of BSI
Economic Solvency: Up 10%pts from year end to 196%
Key 9M 2015 financials at a glance
Profit & Loss 4
9M14 9M15 LFL D 3Q14 3Q15 LFL D
Operating result (Euro m) 3,668 3,840 +4.7% 1,170 1,061 -9.3%
Net result (Euro m) 1,588 1,727 +8.7% 513 420 -18.2%
EPS (Euro) 1.02 1.11 +8.7% 0.33 0.27 -18.2%
Operating RoE(1) 13.0% 13.9% +0.9%pts
Shareholders’ equity(2) 23,204 22,764 -1.9%
Economic Solvency(2) 186% 196% +10%pts.
(1) The annualized operating RoE is calculated on a rolling basis, as the sum of the last four quarterly operating RoE ratios. (2) Comparative data FY14
© Generali
November 5, 2015 9M 2015 Results
3,668 88 42 3,840
9M14 Life P&C Holding & Otherbusinesses
Cons. Adj 9M15
Operating result by segment
Profit & Loss
5
+4.7% (Euro m)
9M 15 2,338 1,605 56 (159)
9M 14 2,251 1,530 87 (200)
D +3.9% +4.8% -36.4% -20.8%
74
(32)
© Generali
November 5, 2015 9M 2015 Results
From operating result to net profit
Profit & Loss
6
3,840 247
(554)
(559)
(1,041) (35) (171)
1,727
Operating
Result
Non Oper.
Investment
Income
Non Oper.
Holding
Expenses
Net Other
Non Oper.
Expenses
Taxes Disc.
Operations
Minorities Net
Result
Including: -€ 513 m: Interest costs
Including: -€ 213 m: Restructuring costs
-€ 99 m: VOBA amortisation
-€ 246 m: other non-recurring provisons
9M 15 3,840 247 (554) (559) (1,041) (35) (171) 1,727
9M 14 3,668 (18) (606) (300) (987) (8) (161) 1,588
D +4.7% n.m. -8.6% +86.6% +5.5% n.m. +5.9% +8.7%
(Euro m)
© Generali
November 5, 2015 9M 2015 Results
Shareholders’ equity rollforward (Euro m)
Shareholders’ equity
Balance Sheet 7
Change in AFS reserve (Euro m)
Shareholders’ equity sensitivities (Euro bn)
Equities
-30%
Interest rate
+100bps
Interest rate
-100bps
Credit spread
+100bps
-1.7
-3.0
2.3
-0.7
-1.9%
23,204 22,764
(1,059) (934) (174)
1,727
Shareholders'Equity FY14
Δ in AFS Reserve
9M 2015 NetResults
Dividend Other Shareholders'Equity 9M15
(957) (114)
6,498 12 5,440
AFS Reserve FY14 Impact BondInvestment
Impact EquityInvestments
Other AFS Reserve 9M15
© Generali
November 5, 2015 9M 2015 Results
Solvency I
Capital 8
+10%pts.
162
162
178
149
156
166
Real estate -10%
Credit spread + 100bps
Interest rate -100bps
Interest rate +100bps
Equities -30%
Total ratio 30.09.2015
156% 8%pts
(5%pts)
10%pts
(3%pts)
166%
Solvency IFY14
BSI DISPOSAL REQUIRED MARGINGROWTH
CONSOLIDATEDRESULT
FINANCIALMARKETS AND
OTHER
Solvency I9M15 (1)
Strong improvement of the Solvency capital position mainly
thanks to:
the closing of the sale of BSI to Banco BTG Pactual
the result of the period
Solvency I rollforward (%)
Solvency I ratio sensitivities (%)
(1) For interim closings, no accrued dividends are deducted from available margin
© Generali
November 5, 2015 9M 2015 Results
186% 8% 2% 196%
ESR FY14 ESR 9M15
Economic solvency
Pro-forma internal model ESR roll-forward
Capital
Increase in ESR mainly driven by the contribution of normalised earnings
9
+10 %pts.
(1) Eligible Own Funds (2) Solvency Capital Requirement
Change in
EOF(1)
Change in
SCR(2)
© Generali
November 5, 2015 9M 2015 Results
Agenda
II. Business Review
10
© Generali
November 5, 2015 9M 2015 Results
9M14 9M15 LFL D 3Q14 3Q15 LFL D
Gross written premiums 35,610 38,425 +7.0% 11,492 11,519 -0.6%
Net inflows 9,020 11,008 +20.6% 3,156 2,809 -12.7%
Life operating result 2,251 2,338 +3.9% 737 625 -15.2%
Life operating ratio on
investments (bps) 63 58 -5 20 16 -3
APE 3,666 3,784 +1.7% 1,146 1,077 -6.4%
New Business Value 934 757 -20.7% 283 283 -0.8%
Margin on APE (%) 25.5% 20.0% -5.6%pts. 24.7% 26.2% +1.5%pts.
Life key financial indicators
Life Insurance 11
(Euro m)
© Generali
November 5, 2015 9M 2015 Results
2,251
318 104
(335)
2,338
9M14 Technical Margin Investment result Expenses 9M15
Life Operating result by driver
Life Insurance 12
+3.9%
(Euro m)
9M 15 4,303 1,780 (3,745)
9M 14 3,985 1,676 (3,410)
D % +8.0% +6.2% +9.8%
Operating result up 3.9%:
Excellent technical margin thanks to higher risk result and unit linked fees
Improving investment result, thanks to higher current income
Expense result reflects higher acquisition costs, following increased volumes
New assets gathered of Euro 11bn in 9M15, which will generate additional operating profits in
future periods
© Generali
November 5, 2015 9M 2015 Results
Life inflows and technical reserves(1)
Life Insurance
(1) Including liabilities related to investment contracts
+4.7%
+7.4%
+4.0%
Unit linked
Traditional
(Euro m)
9M14 9M15
Italy 3,652 5,003
France 398 999
Germany 2,183 2,696
CEE 359 394
EMEA 2,194 1,260
Americas 89 105
Asia 125 514
International 20 36
TOTAL 9,020 11,008
Saving and
pension 24%
Protection 24%
Unit linked 53%
13
279.7 290.9
67.5 72.5
347.2 11.0
(4.3)
8.1 1.4 363.3
FY14 NetInflows
Loadings,Risk &
Surrender Result
Policyh. Shareof Invest. Result
ExchangeRate & Other
9M15
© Generali
November 5, 2015 9M 2015 Results
Life investment performance
Life Insurance 14
Euro 321 bn Euro 328 bn
(1) Not annualized
(2) Net of depreciation expenses
47.0 44.9
34.5 36.1
7.7 8.0
4.0 4.1 3.1 2.9 2.1 2.5 1.6 1.4
FY14 9M15
Other
Cash & cashequivalent
Real estate
Equity
Other fixedincome
Corporatebonds
Governmentbonds
Euro m %
Fixed income
9M14 7,075 2.7
9M15 7,291 2.5
Equity
9M14 386 3.0
9M15 287 2.1
Real Estate(1)
9M14 419 4.3
9M15 458 4.7
Total(2)
9M14 8,103 2.7
9M15 8,220 2.5
Life segment general account (%)
Current returns(1)
© Generali
November 5, 2015 9M 2015 Results
Life new business analysis
Life Insurance 15
APE NBV MARGIN ON APE
9M14 9M15 LFL D 9M14 9M15 LFL D 9M14 9M15 LFL D
Italy 1,706 1,619 -5.1% 474 406 -14.2% 27.8% 25.1% -2.7%pts.
France 627 730 +17.1% 77 42 -45.4% 12.2% 5.7% -6.5%pts.
Germany 608 628 +2.1% 195 130 -34.2% 32.1% 20.7% -11.5%pts.
CEE 103 123 -1.0% 33 29 -26.7% 31.9% 23.8% -8.4%pts.
EMEA 514 481 -8.0% 141 119 -19.6% 27.4% 24.8% -3.6%pts.
Americas & Asia 109 204 +58.1% 14 30 +70.2% 13.3% 14.9% 1.1%pts.
TOTAL 3,666 3,784 +1.7% 934 757 -20.7% 25.5% 20.0% -5.6%pts.
(Euro m)
APE growth (+1.7%) driven by unit linked (+23.9%) and protection business (+21.0%), while saving
business shows a 10.0% decline.
Very strong improvement NBM in Q3 (to 26.2%), driving the 9M15 margin to 20.0%:
Better product mix and a further marked reduction of level of guarantees (in Euro area from 0.93% 9M14 to 0.65%
9M15) are positive factors
Overall economic variances for the year to date remain negative, but 3Q showed a notable improvement vs. 2Q
Embedded profitability of new business almost double the existing book
© Generali
November 5, 2015 9M 2015 Results
P&C key financial Indicators
P&C Insurance
16
9M14 9M15 LFL D 3Q14 3Q15 LFL D
Gross written premiums, of which: 15,564 15,775 +0.8% 4,395 4,509 +2.4%
Primary Motor 6,319 6,333 -0.9% 1,803 1,835 +1.1%
Primary Non Motor 8,748 8,915 +1.7% 2,442 2,524 +3.6%
Combined ratio (%) 93.4% 92.7% -0.8%pts. 94.6% 92.7% -1.9%pts.
Nat Cat impact (%) 1.2% 1.6% +0.4%pts. 1.0% 1.9% +0.9%pts.
P&C operating result 1,530 1,605 +4.8% 452 501 +11.0%
(Euro m)
© Generali
November 5, 2015 9M 2015 Results
1,530 104
(21) (9)
1,605
9M14 Technical Result Investment result Other 9M15
P&C Operating result by driver
P&C Insurance 17
+4.8%
(Euro m)
9M 15 981 768 (144)
9M 14 877 789 (135)
D % +11.8% -2.6% +6.5%
Operating result up 4.8%
Excellent technical performance thanks to the decline in the loss ratio, despite higher Nat Cat
impact, much more than offsetting slight decline in investment result
© Generali
November 5, 2015 9M 2015 Results
9M14 9M15 LFL
Italy 4,155 4,035 -2.9%
France 2,002 1,985 -0.9%
Germany 2,881 2,910 +1.0%
CEE 1,446 1,504 +3.9%
EMEA 3,394 3,541 +1.7%
Americas 773 879 +8.6%
Asia 78 91 +15.1%
International 835 831 +4.3%
Total 15,564 15,775 +0.8%
P&C gross written premiums trends
P&C Insurance
18
(Euro m)
Overall increase of premiums (+0.8%), benefitting from
positive development in 3Q15 (+2.4%)
2.9% decline in Italy due to competitive environment in
Motor (-8.4%). Significant mitigation from 1.1% increase
in the larger Non Motor book
Decline in France due to Motor, partially offset by the
increase in Non Motor (continuation of recovery in
Personal lines). Good development in the 3rd quarter
(+3.1%)
Improvement in Germany and CEE, thanks to Motor and
Non Motor in both regions
© Generali
November 5, 2015 9M 2015 Results
66.6 65.6
26.8
0.2
27.0
(1.0)
93.4 92.7
9M14 Δ Expense ratio Δ Loss ratio 9M15
26.8 27.0
21.0
0.1
21.1
5.8
0.2
6.0
9M14 Δ Admin Δ Acq. 9M15
Combined ratio analysis
P&C Insurance
19
Loss ratio
Expense ratio
66.6
(1.0)
0.4
(0.3)
65.6
9M14 Current year NATCAT Prior years 9M15
Combined ratio (%)
-0.8%pts.
9M 15 68.4 1.6 -4.3 65.6
9M 14 69.4 1.2 -4.0 66.6
Expense ratio (%)
Loss ratio (%)
Acquisition costs
Administr. costs
+0.2%pts.
-1.0%pts.
© Generali
November 5, 2015 9M 2015 Results
Combined ratio by country
P&C Insurance 20
9M14 9M15 LFL
Italy 89.1% 89.4% +0.2%pts.
France 105.4% 99.3% -6.1%pts.
Germany 93.5% 91.6% -1.9%pts.
CEE 87.3% 86.5% -0.9%pts.
EMEA 94.5% 94.7% +0.2%pts.
Americas 107.7% 103.3% -4.5%pts.
Asia 96.6% 97.0% +0.4%pts.
International
Operations 81.2% 86.9% +5.7%pts.
Total 93.4% 92.7% -0.8%pts.
(%)
Combined ratio in Italy remains at an excellent level,
despite heavier Nat Cat impact (2.1%pts. against
0.9%pts. reported at 9M14) and highly competitive motor
market. Improvement in Non-Motor combined ratio is
offsetting the deteriorating trend seen in Motor
Improvement in France driven by 3.2%pts. improvement
in ex-Nat Cat combined ratio (reflecting success of
portfolio restructuring), and 2.9%pts. lower Nat Cat.
Combined ratio improving in Germany, despite Nat Cat
impact (3.2%pts. against 1.7%pts. in 9M14), thanks to
strong positive development in Non Motor
Improvement in CEE, despite higher Nat Cat (1.3%pts.
against 0.6%pts.)
© Generali
November 5, 2015 9M 2015 Results
P&C investment performance
P&C Insurance 21
Euro 39 bn Euro 39 bn
26.0 26.3
35.4 35.1
5.9 6.7
8.7 7.1
11.1 10.9
9.8 10.4
3.1 3.5
FY14 9M15
Other
Cash & cashequivalent
Real estate
Equity
Other fixedincome
Corporatebonds
Governmentbonds
Euro m %
Fixed income
9M14 645 2.6
9M15 626 2.4
Equity
9M14 99 2.9
9M15 87 2.7
Real Estate(1)
9M14 198 4.3
9M15 192 4.5
Total(2)
9M14 1013 2.7
9M15 959 2.5
P&C segment general account (%)
Current returns(1)
(1) Not annualized
(2) Net of depreciation expenses
© Generali
November 5, 2015 9M 2015 Results
9M14 9M15 LFL 3Q14 3Q15 LFL
Financial 291 319 +9.4% 91 74 -19.0%
of which Banca Generali(1) 176 205 +16.2% 51 33 -35.3%
Operating holding expenses (290) (358) +23.2% (94) (107) +14.5%
Other businesses(2) 86 95 +9.7% 24 18 -25.0%
Total 87 56 -36.4% 22 (15) n.m.
Focus on Holding & Other businesses segment Holding & Other businesses
22
(Euro m)
(1) Banca Generali’s operating contribution as per Generali’s view
(2) Including pure financial holdings, international service activities and any other non-core businesses
© Generali
November 5, 2015 9M 2015 Results
Final remarks
Final remarks 23
Life: Growing operating profit despite tough market conditions. Strong
net inflows, with > 50% unit linked. Rebound of new business margin in
3Q
P&C: Excellent CoR despite higher Nat Cat. Stable or improving in all
core markets
Net Result: At Euro 1.7 bn for the 9M, already surpassing FY14
level. Significant YoY improvement expected for FY15
Solvency: Strong at 196%, +10%pts compared to FY14
© Generali
November 5, 2015 9M 2015 Results
Agenda
III. Backup
24
Costs Page 25
Investments Page 27
Financial debt Page 33
© Generali
November 5, 2015 9M 2015 Results
9M15 Cost development
Back up: Focus on costs 25
Group operating expense development (OpEx view) (Euro bn)
Reconciliation of general expenses from IFRS view to OpEx view (9M15, Euro bn)
Increase in Operating costs at 9M reflecting adverse FX
trends and some timing differences through the year
We remain on track to keep FY15 nominal costs flat
on a constant FX basis, in line with our target
Acq.& Admin costs and Oper. Holding Expenses accounting
view (per segmental operating profit analysis)
Adjustments from accounting view
Adjusted general expense base (OpEx view)
4.0
3.7
0.6
(4.6)
0.7 0.2 4.7
Acq. & Admin. Costs and
Oper. Holding Expenses
Commissions & DAC
Claims settlemement
costs (included in
Net Ins. Benefit and
Claims)
Other items & adjustments
Total general expenses
(OpEx view)
Holding & other
Life
P&C
4.5 4.7
9M 14 9M 15
LFL ∆
2.0%
© Generali
November 5, 2015 9M 2015 Results
Agenda
III. Backup
26
Costs Page 25
Investments Page 27
Financial debt Page 33
© Generali
November 5, 2015 9M 2015 Results
27
Assets under management
Backup: Investments
75.3
14.7
10.0 Generalaccount
Unit Linked
Third partyinvestments
5
87
4 3
1 Equity
Fixed income
Real estate
Cash & Cash Equivalent
Other
By Asset Class
By Region
31
23
29
3
10 4 Italy
France
Germany
CEE
EMEA
RoW and other operations
Total Portfolio: Euro 494 bn (%)
Breakdown by region and asset class (%)
© Generali
November 5, 2015 9M 2015 Results
4 7
35
41
12 1
AAA AA A BBB Not Investment Grade Not Rated
68
16
9 4 1
1
13
34
4
46
2 0
Fixed Income Portfolio
Backup: Investments 28
(1) Italian government bond exposure is 82% of BBB
Bond duration FY14 9M15
Life 8.2 8.1
P&C 4.6 4.9
49.7
14.0
18.1
9.0
9.2
Other fixedIncome
Covered
Corporate nonfin.
Corporate fin.
Government
Total Portfolio Euro 323 bn (%)
Covered Euro 29 bn (%)
Corporate Euro 104 bn (%)
Government Euro 161 bn(1) (%)
© Generali
November 5, 2015 9M 2015 Results
14
13
18
2 12
40
Italy Germany France CEE USA Other
8
13
33
2
1
45 38
4 19
7
4
28
Fixed Income Portfolio by country
Backup: Investments 29
49.7
14.0
18.1
9.0
9.2
Other fixedIncome
Covered
Corporate nonfin.
Corporate fin.
Government
Total Portfolio Euro 323 bn (%)
Covered Euro 29 bn (%)
Corporate Euro 104 bn (%)
Government Euro 161 bn (%)
© Generali
November 5, 2015 9M 2015 Results
76
19
5
Life
P&C
H&O
77
23
Quoted
Unquoted
67 5
28
Life
P&C
H&O
81
18 1
Life
P&C
H&O
55
21
24
Equity Equity Funds Alternatives
Equity & Equity-like
Backup: Investments
30
Life, P&C and
Financial
Life, P&C and
Financial
Life, P&C and
Financial
Listed and
Unlisted
Total Portfolio: Euro 18 bn (%)
Alternative funds: Euro 4.2 bn (%)
Equity: Euro 9.9 bn (%)
Equity funds: Euro 3.8 bn (%)
© Generali
November 5, 2015 9M 2015 Results
84
16
Investmentproperties
Own use
65
16
11 3 4
Office
Residential
Retail
Logistic
Other/Mixed
Asset Allocation: Real Estate(1)
Backup: Investments
31
35
17
25
2
19
2 Italy
Germany
France
CEE
RoE
RoW
(1) Data, at fair value, includes own use assets and property inventory (2) Detail referred to direct investment and self used properties only
Total Portfolio: Euro 24 bn(1)
Breakdown by use(2) (%)
Breakdown by country(2) (%)
Breakdown by utilization(2) (%)
© Generali
November 5, 2015 9M 2015 Results
Agenda
III. Backup
32
Costs Page 25
Investments Page 27
Financial debt Page 33
© Generali
November 5, 2015 9M 2015 Results
Focus on financial debt
Backup: Financial debt 33
3,477 2,983
8,315 8,418
460 462
FY14 9M15
Senior Sub/Hybrid Other
FY14 9M15
Average cost (%) 5.62% 5.67%
Subordinated/Hybrid 6.21% 6.22%
Senior 4.13% 4.17%
Average maturity
(years) 6.87 6.40
Euro 12,253 m (1) Euro 11,863 m
Total financial debt (Euro bn)
Average cost & maturity of financial debt (%)
(1) The amount of financial debt as of December, 31, includes the subordinated bond issued in May 2014 for a nominal amount of Euro 1 bn partly to refinance 2015
maturities
© Generali
November 5, 2015 9M 2015 Results
1,240
887
250
770
1,250
2,672
1,750
1,500 1,475
1,250
2016 2017 2018 2019 2020 2022 2024 2025 2026 2027
Senior Hybrid Subordinated
Financial debt breakdown by expiry date/call date
Backup: Financial debt
34
(Euro m)
New issue
launched 20
October 2015
Tier 2
Subordinated
32nc12
Callable bonds
refinanced
throught the new
issuance Tier 2
Subordinated
32nc12
© Generali
November 5, 2015 9M 2015 Results
Disclaimer
Certain of the statements contained herein are statements of future expectations and other forward-looking
statements.
These expectations are based on management's current views and assumptions and involve known and
unknown risks and uncertainties.
The user of such information should recognise that actual results, performance or events may differ
materially from such expectations because they relate to future events and circumstances which are
beyond our control including, among other things, general economic and sector conditions.
Neither Assicurazioni Generali S.p.A. nor any of its affiliates, directors, officers employees or agents owe
any duty of care towards any user of the information provided herein nor any obligation to update any
forward-looking information contained in this document.
The manager charged with preparing the company’s financial reports, Alberto Minali, 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.
35
© Generali
November 5, 2015 9M 2015 Results
36
Next events
18.03.2016
FY 2015 results reporting
28.04.2016
Annual General Meeting
12.05.2016
1Q 2016 results reporting
29.07.2016
1H 2016 results reporting
10.11.2016
9M 2016 results reporting
© Generali
November 5, 2015 9M 2015 Results
Team
Marta Porczynska
Team Assistant & Event Manager
+39 040 671402
Martina Vono
Team Assistant & Event Manager
+39 040 671548
Assicurazioni Generali
P.za Duca degli Abruzzi 2
34132 Trieste, Italy
Fax: +39 040 671338
e-mail: [email protected]
www.generali.com
Spencer Horgan
Head of Investor & Rating Agency Relations
+44 20 7265 6480
Stefano Burrino
Senior IR Manager
+39 040 671202
Emanuele Marciante
Senior IR Manager – Credit & Rating Agency Relations
+39 040 671347
Veronica Cherini
IR Manager
+39 040 671488
Rodolfo Svara
IR Manager
+39 040 671823
37
Thank you
38
GENERALI GROUP 9M 2015 Results