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November 11, 2011 Generali Group 9M 2011 Results

Generali Group 9M 2011 Results

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Page 1: Generali Group 9M  2011 Results

November 11, 2011

Generali Group

9M 2011 Results

Page 2: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

2Agenda

I. Overview

II. Group financials

III. Final remarks

IV. Backup

Page 3

Page 5

Page 22

Page 24

Page 3: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

3Agenda

I. Overview

9M 2011 results at a glance

Page 4: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

4

Impact from impairments of:

•Greek gov. bonds: ~Euro 329 m

•Telco: ~Euro 143 m

Operating result (Euro m)

3,133 3,100

-1.0%

9M10 9M11

Combined ratio (%)

98.8 96.6

-2.2%pts.

9M10 9M11

9M 2011 results at a glance

I. OVERVIEW

Net result (Euro m)

17,490

15,846

-9.4%

FY10 9M11

Shareholders’ equity (Euro m)

825

1,313 1,297

-37.1%

9M10 9M11

Page 5: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

5Agenda

II. Group financials

Profit & loss review

Shareholders’ equity

Life & P&C profitability

Page 6: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

6Revenue development by segment

II. GROUP FINANCIALS

(1) Including investment contracts for Euro 2,307 m in 9M11

(2) For the definitions refer to the related section within the backup

-7.5%

+2.1%

-7.9%

-4.8%

∆ like for like

(%)

1,027

4,931

10,543

15,474

3Q11

-7.6%

+2.3%

-7.7%

-4.6%

∆ historical

(%)

-2.5%3,535

Life annual

premium

equivalent(2)

-3.4%34,385Life(1)

-1.3%51,327

Gross written

premiums

3.5%16,942P&C

∆ like for like

(%)9M11(Euro m)

Page 7: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

7

Consolidation

adjustments

Consolidated

operating result

Financial services

operating result

P&C

operating result(1)

Operating holding

expenses

Life

operating result

1,978

1,204

279

(214)

(147)

3,100

2,302

882

277

(204)

(125)

3,133

315

405

68

(67)

(29)

734

296

74

(66)

(42)

997

692

+30.7%

-30.5%

-7.9%

+36.8%

-2.3%

-57.1%

3Q11

3Q10

9M11 operating result (Euro m)

Operating result by segment

II. GROUP FINANCIALS

9M11

9M10

3Q11 operating result (Euro m)

� (%)

-17.7%

-1.0%

+0.7%

+36.4%

-4.9%

-14.1%

� (%)

(1) As of FY10, there was a change in the definition of P&C Operating Result; all comparative figures have been consistently restated. Please refer ‘Methodological

note on alternative performance measures’ included in the Management Report

Page 8: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

8Focus on operating result

-1.0%3,1003,133Total operating

result

-17.7%(147)(125)Consolidation Adj.

-4.9%(214)(204)Op. holding expenses

-12.5%471538Germany

+26.8%351277CEE

+0.0%

-6.1%

+18.0%

-20.0%

+0.9%

255272RoW

3,4613,461Operating result(1)

658558RoE

409511France

1,3171,305Italy

9M119M10

(Euro m)

II. GROUP FINANCIALS

Operating result by country(1)

933

208 238110

300188

296

193 194

224

259

38

87

738

18

99

29

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

Page 9: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

9From operating result to net result

(742)(95)Non operating investment income

(714)(132)Income and exp. from other financial instruments

051Result from discontinued operations (Intesa Vita)

(496)(561)Non operating holding expenses

(228)(192)Minority interests

-22.3%1,6372,108Consolidated result of the period before taxes

and minority interests

(584)(654)Income taxes

-42.8%(1,464)(1,025)Total non operating result

(28)37 Income and exp. from fin. assets at FV thr. P&L

-1.0%3,1003,133Total operating result

-37.1%8251,313Net result of the period

(225)(368) Net other non operating expenses

�9M119M10(Euro m)

II. GROUP FINANCIALS

(1) Including interest expenses on financial debt

(1)

Page 10: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

10Investment portfolio

Own investments(1) at 30.09.11 (% on total)

(1)For the definitions refer to the related section within the backup. Starting from 9M 2011

Israeli participating portfolio has been reclassified in unit-linked business. Comparative figures

have been restated accordingly ((Euro 10.3 bn at FY10). For additional detail refer to the Basis

of presentation and accounting principles in Interim Report

II. GROUP FINANCIALS

� Continued strategic de-risking

program with cautious

approach on risky assets

� Preference for domestic

government bonds and high

quality, capital efficient

corporate bonds

� Tactical increase of liquidity

buffer to face current market

uncertainty and to catch market

opportunities

40.0% 39.8%

31.4% 30.9%

8.6% 8.8%

7.5% 5.8%4.9%4.8%

9.8%7.7%

FY10 9M11

Other

Real estate

Equity

Other fixed

income

Corporate

bonds

Governme

nt bonds

Euro 315.5 bnEuro 311.5 bn

+1.3%

Page 11: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

11

15,846

17,49029

(85)(699)(62)

825

(1,652)

IFRS Shareholders’ equity roll forward

Dividend∆ Currency

Translation

Reserve

9M 2011

Net Result

Other Shareholders’

Equity 9M11

∆ Cash Flow

Hedge

Reserve

∆ in AFS

Reserve

Shareholders’

Equity FY10

-9.4%

II. GROUP FINANCIALS

(Euro m)

Change in AFS reserve (Euro m)

(1,836)(75)

(184)

(736)

(841)

Other AFS Reserve 9M11

Impact Bond Investments

Impact Equity Investments

AFS Reserve

FY10

Page 12: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

12

Assicurazioni Generali Group – 9M 2011 results

Solvency I according to Italian regulation

II. GROUP FINANCIALS

Required margin Available margin

9M11FY10

132% 118%

(Euro bn)

Main drivers of change

(1) Deduction on already authorized unrealized gains on real estates due to negative AFS Reserve; refer to slide 13.

Available margin

� Consolidated result:

� Financial markets and other elements:

� Double counting of AFS losses due to

Italian regulation(1)

Required Margin

� Increase in required margin due

to growing life technical provisions:

+ 1.1

- 1.7

- 1.3

+ 0.4

Page 13: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

13

II. GROUP FINANCIALS

The strong reduction of the Regulatory

Solvency I ratio in 3Q11(Euro 1.3 bn;

7%pts) is due to a negative one - off

effect deriving from the application of

current regulatory requirements under

Solvency 1 as defined by Italian rules,

and specifically referring to the

admissible amount of unrealized gains

on real estate investments.

The inclusion of locally admitted

unrealized gains on real estate

investments is limited by the Italian

regulation on Group Solvency Margin

to the lower of:

- all off balance sheet unrealized gains

on real estate (see bullet B)

- the locally admitted unrealized gains

on real estate (see bullet C) ;- the sum of all off balance sheet unrealized gains on real estate and the available for sale reserve (if negative) (see bullet D)

Example on double counting of AFS

losses

(1,000)Double counting effect of negative

AFS reserve = (D) – (C)

2,000UCG on real estate admissible in

Group solvency margin =

min { (B); (C); (D) }

2,000Filter = max { (A) + (B); 0 }

3,000

UCG on real estate locally admitted

and included in local solvency

margins

5,000

Off balance sheet unrealised capital

gains (UCG) on real estate

(3,000)AFS reserve

Negative AFS reserve(educational example)

(A)

(B)

(C)

(D)

Already included in shareholders’ equity and in reduction of Group available margin

The negative AFS reserve, reduces admissible UCG on real estate implying a negative double counting

Solvency I: double counting of AFS losses

Page 14: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

14

16.9 17.3

23.6 23.6

Pro forma Solvency I update

II. GROUP FINANCIALS

Required margin Available margin

9M11FY10

140%(1) 137%(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:

� Financial markets and other elements:

� Impact from the potential application of

the “anti crisis regulation”

Required Margin

� Increase in required margin due

to growing life technical provisions:

+ 1.1

- 1.7

+ 0.7

+ 0.4

Pro forma Solvency I update without double counting of AFS losses and with Italian “anti crisis

regulation”

(2) Including off balance sheet unrealized gains on real estate (8%pts of which subject to local authorities’ authorization; 7%pts of which already locally admitted) and 4%pts

positive impact from the potential application of the “anti crisis regulation” only related to Eurozone Government bonds held by Italian companies as durable investment

Page 15: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

15Life profitability – operating result

-14.1%

+0.6%

-24.6%

+1.8%

1,9782,302Operating Result

(3,888)(3,911)Expenses

1,3081,735Investment Result

4,5584,478Technical Margin

9M119M10(Euro m)

Life operating profitability affected by current financial environment

Life Operating Result by driver(1)

1,978

23

(426)

80

2,302

9M11

Exp.

Inv.R

Tech.M

9M10

II. GROUP FINANCIALS

(1) For the definitions refer to the related section within the backup

0.620.74

Life quarterly

operating ratio

on investments

Page 16: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

16Life business development

61.0252.4FY 2010

-6.0%+2.5%∆%

57.3258.79M2011

Life net technical reserves(2) (Euro m)Life gross written premiums (Euro m)

Life net inflows by country(3) (Euro m)

9M11FY10 Traditional Unit Linked

-49.8%1,1992,304RoE

-7.1%1,0981,201RoW

-48.8%

+19.7%

-23.7%

-88.0%

-64.7%

∆(1)

6,49612,622TOTAL

364297CEE

2,8683,760Germany

4233,518France

5441,542Italy

9M119M10Country

34,38537,272

-7.9%(1)

313.36.3

(3.7)

316.0

+0.8%

II. GROUP FINANCIALS

9M10 9M11

(1) On like for like basis

(2) Including investment contracts; starting from 9M 2011 Israeli participating portfolio has been reclassified in unit-linked business. Comparative figures have been restated accordingly ((Euro 10.3 bn at FY10). For additional detail refer to the Basis of presentation and accounting principles in Interim Report.

(3) For the definitions refer to the related section within the backup

Page 17: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

17

Assicurazioni Generali Group – 9M 2011 results

Life New Business Annual Premium Equivalent

II. GROUP FINANCIALS

(Euro m) APE

9M

2010

9M

2011Historical

Like for like�

Italy 1,177 1,197 +1.8% +1.8%

France 899 738 -17.9% -18.0%

Germany 729 671 -8.0% -8.0%

CEE 122 111 -9.0% -4.1%

RoE 594 488 -17.7% -18.5%

RoW 307 330 +7.5% +8.8%

Total 3,827 3,535 -7.6% -7.5%

APE over Euro 3.5 bn, with annual premiums (+3.6%) representing 61.7% of total APE and driving

the recovery of the year-on-year variation (from -9.4% at 1H to -7.5% at 9M)

Page 18: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

18P&C profitability - operating result

����

+36.4%

+16.4%

-5.1%

+221.6%

1,204882Operating Result

(136)(164)Other

848893Investment Result

492153Technical Result

9M119M10(Euro m)

P&C Operating Result by driver(1)

1,204

28

(45)

339

882

9M11

9M10

Tech.R

Inv.R

Other

Strong increase of P&C operating result driven by technical profitability

II. GROUP FINANCIALS

(1) For the definitions refer to the related section within the backup

3.30%2.39%P&C quarterly operating

ratio on investments

Page 19: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

19

Assicurazioni Generali Group – 9M 2011 results

P&C Gross Written Premiums

II. GROUP FINANCIALS

(Euro m) 9M10 9M11Historical

Like for like�

Italy 4,969 4,975 +0.1% +0.1%

France 3,077 3,181 +3.4% +3.4%

Germany 2,468 2,500 +1.3% +1.3%

CEE 1,712 1,728 +1.0% +0.1%

RoE 3,330 3,424 +2.8% +1.0%

RoW 1,002 1,134 +13.2% +17.9%

Total 16,557 16,942 +2.3% +2.1%

� Motor and Non-Motor retail are the main drivers of the positive premium development

� Motor recovering in most of the European markets, while Spain and CEE still in a competitive

pricing environment

� Non-Motor Commercial recovering in selected markets, with CEE over performing

Page 20: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

20P&C profitability (1/2)

(2.1)(0.1)

9M119M10

Combined ratio (%)

� Expense

ratio

� Loss

ratio

-2.2%pts.

II. GROUP FINANCIALS

Combined ratio by country

-3.3%pts.96.6%99.9%RoE

-6.6%pts.88.7%95.2%CEE

+1.7%pts.102.6%100.9%RoW

-1.5%pts.98.8%100.3%France

-2.2%pts.

-0.1%pts.

-2.1%pts.

96.6%98.8%Total

95.6%95.7%Germany

96.8%98.9%Italy

9M119M10

27.2

69.4

27.3

71.5

96.698.8

Loss ratio Expense ratio

Page 21: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

21

Assicurazioni Generali Group – 9M 2011 results Assicurazioni Generali Group – FY 2009 results

21.3

5.9

21.2

6.0

P&C profitability – Net combined ratio (2/2)

9M11 71.6 0.6 -2.9 69.4

9M10 73.2 2.1 -3.8 71.5

II. GROUP FINANCIALS

Loss ratio (%)

9M119M10

71.5 69.4-1.6 -1.5 +1.0

Current

year(1)

NAT

CAT

Prior

years

9M119M10 ∆ Admin ∆ Acq.

Acq. costs

Adm. costs

27.2

Expense ratio (%)

∆%pts

Reserving ratio (%)

9M119M10

-3.6%pts

27.3

(1) Excluding natural catastrophes

-2.1%pts

-0.1%pts

200.7% 197.1%

� Improved current year loss ratio, thanks

to strong pricing discipline in Motor

specifically in Italy and France

� Nat cat experience particularly benign in

the Group geographies

� Confirmed positive prior years’

development and prudent reserving

policy

Page 22: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

22

III. Final Remarks

Agenda

Page 23: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

23Final remarks

III. FINAL REMARKS

Net result affected by one-off negative impacts related to

current financial environment

Good technical profitability in Life and P&C

Investment strategy based on a prudent approach

Confirmed lower end of range for 2011 Operating Result outlook

Page 24: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

24

IV. Backup

P&L and Balance Sheet

Definitions

Page 25: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

25

IV. Backup

P&L and Balance Sheet

Definitions

Page 26: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

269M11 total gross written premiums

7.9+10.2%4,051RoW

Of which:

14.7-12.3%7,551RoE

20.5-10.6%10,517France

Total Gross Written Premiums(Euro m)

100.0-4.8%51,327Total

2.7+0.2%1,375Switzerland

3.9+1.3%1,995Austria

3.5+5.2%1,822Spain

5.8+0.3%2,997Eastern Europe

24.1-0.6%12,350Germany

27.0-4.3%13,862Italy

% weight∆%(2)GWPCountry

5.7+7.4%2,917

19.2-1.1%9,850

Gross Life Written Premiums(1)

67.0-7.9%34,385

1.5-0.8%768

1.8+3.6%926

1.5+14.3%771

Of which:

8.0-20.9%4,126

2.5+0.6%1,269

14.3-15.6%7,336

17.3-6.6%8,887

% weight∆%(2)GWP

2.2+17.9%1,134

4.9+1.3%2,500

Gross P&C Written Premiums

33.0+2.1%16,942

1.2+1.5%607

2.1-0.6%1,069

2.0-0.7%1,051

Of which:

6.7+1.0%3,424

3.4+0.1%1,728

6.2+3.4%3,181

9.7+0.1%4,975

% weight∆%(2)GWP

(1) Including investment contracts

(2) On like for like basis with constant exchange rates

IV. BACK UP

Page 27: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

27Life Premiums by Country & Business Line

Life 9M11

Of which:

1,2691.4%11.0%24.9%62.7%CEE

Total life gross

direct premiums

33,44012.6%8.8%18.4%60.1%

2,36450.7%5.2%14.5%29.6%RoW

7680.2%0.9%75.0%24.0%Switzerland

9140.0%19.1%23.2%57.6%Austria

77138.6%0.0%1.2%60.2%Spain

4,10815.0%5.0%45.6%34.3%RoE

9,8506.9%18.4%24.8%50.0%Germany

7,1767.3%9.4%14.3%69.0%France

8,67313.7%0.0%2.0%84.4%Italy

TotalGroupHealth

Unit/index

linked

Savings and

protection

(Euro m)

IV. BACK UP

Page 28: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

28P&C Premiums by Country & Business Line

P&C 9M11

Of which:

1,02532.6%27.9%13.4%26.1%Spain

1,69525.8%15.8%12.5%45.9%CEE

21.5%

31.0%

0.5%

27.1%

23.7%

9.0%

21.4%

22.8%

Commercial

Total P&C gross

direct premiums

16,49222.3%14.1%42.1%

1,0963.9%5.8%59.3%RoW

60524.9%23.0%51.6%Switzerland

1,05522.6%10.5%39.8%Austria

3,31922.8%15.7%37.8%RoE

2,49737.4%14.0%39.7%Germany

2,97136.9%12.2%29.4%France

4,91611.8%16.7%48.8%Italy

TotalPersonal

Accident/

HealthMotor(1)

(Euro m)

(1) Including fleets

IV. BACK UP

Page 29: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

29

Assicurazioni Generali Group – 9M 2011 results

Life new business: APE

(Euro m) APE Annual Premiums Single Premiums

9M2010 9M2011Like for like

�% 9M2010 9M2011Like for like

�% 9M2010 9M2011Like for like

�%

Italy 1,177 1,197 +1.8% 703 795 +13.2% 4,743 4,023 -15.2%

France 899 738 -18.0% 219 215 -2.0% 6,798 5,228 -23.1%

Germany 729 671 -8.0% 538 487 -9.5% 1,911 1,839 -3.8%

CEE 122 111 -4.1% 101 94 -2.6% 203 165 -11.9%

RoE 594 488 -18.5% 309 326 +3.7% 2,842 1,622 -43.0%

Spain 84 89 +5.1% 39 39 +0.6% 452 493 +9.0%

Austria 74 85 +15.1% 54 65 +20.7% 198 198 -0.3%

Switzerland 61 58 -12.6% 56 54 -11.6% 53 44 -23.3%

RoW 307 330 +8.8% 239 266 +12.3% 687 648 -3.5%

Total 3,827 3,535 -7.5% 2,109 2,183 +3.6% 17,184 13,524 -21.2%

IV. BACK UP

Page 30: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

30Life net inflows by country

IV. BACK UP

Of which:

+63.9%(146)(404)Spain

+12.0%183163Austria

-16.2%357375Switzerland

-49.8%1,1992,304RoE

-7.1%1,0981,201RoW

-48.8%

+19.7%

-23.7%

-88.0%

-64.7%

Like for like ∆

6,49612,622TOTAL

364297CEE

2,8683,760Germany

4233,518France

5441,543Italy

9M119M10Country

Page 31: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

31

Loss

ratio

Expense

ratio

Life – Expense ratio (%) P&C – Combined ratio (%)

Total – Expense ratio (%)

69.471.5

27.3 27.2

15.4 16.3

11.310.4

9M119M10

9M119M10

9M119M10

98.8% 96.6%

Ratios

IV. BACK UP

Page 32: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

32Ratios by country

17.6

19.1

95.2

88.7

31.5

33.8

63.8

54.9

CEE

8.1

8.9

100.3

98.8

28.6

26.8

71.7

72.0

FRA

11.320.313.14.412.010.29M11

10.420.813.07.112.49.19M10

Life expense ratios by country (%)

Combined ratio

Expense ratio

Loss ratio

98.8

96.6

27.3

27.2

71.5

69.4

Consolidated

96.3

96.4

26.1

25.8

70.2

70.7

SWI

95.9

95.8

27.7

27.4

68.2

68.5

AUT

97.2

94.0

26.6

26.9

70.6

67.0

SPAGER

98.9

96.8

21.3

21.1

77.6

75.7

95.79M10

95.69M11

29.29M10

29.49M11

9M10

9M11

66.5

66.3

ITAP&C ratios by

country (%)

IV. BACK UP

Page 33: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

33Combined ratio reconciliation

492153Technical resultA-B-C-D

3534Other technical itemsD

9M119M10

98.8%

27.3%

71.5%

4,132

915

47

962

3,217

10,813

15,131

96.6%Combined ratio(B+C)/A

27.2%Expense ratioC/A

69.4%Loss ratioB/A

4,173Total acquisition and administration costsC

913Insurance activity related consolidated administration costs

46Non insurance activity related administration costs(1)

959Consolidated administration costs

3,260Consolidated acquisition costs

10,668Consolidated net claimsB

15,367Net earned premiums (net of consolidation adjustments)A

(1) Administration expenses related to service companies, real estate and other companies not belonging to P&C segment

(Euro m)

IV. BACK UP

Page 34: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

34Operating result by country

P&C operating result by market (Euro m)Life operating result by market (Euro m)

-6.9%188202RoW

-10.4%300335RoE

Of which:

-8.9%238262Germany

-42.5%208362France

-17.5%5264Austria

-19.5%110136CEE

1,978

101

80

933

9M11

+13.0%89Switzerland

-14.1%2,302Total

-3.0%82Spain

-7.0%1,004Italy

�9M10

+10.8%3834RoW

+86.2%259139RoE

Of which:

-18.3%194238Germany

+9.8%7367Austria

+82.6%224123CEE

1,204

35

112

193

296

9M11

+8.8%32Switzerland

+36.5%882Total

+32.3%84Spain

+36.3%142France

+43.1%207Italy

�9M10

IV. BACK UP

Page 35: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

35Reclassified P&L account

(714)(132)Non-operating income from other financial instruments

(4,146)1,777Of which net income from fin. assets and liabilities where the risk is borne by the policyholders

(4,105)3,025Operating income from financial instruments at fair value through profit or loss

051Result from discontinued operations (Intesa Vita)

(496)(561)Non-operating holding expenses

1,313

(192)

1,454

(654)

2,108

(368)

(22)

(540)

37

(1,025)

(267)

(204)

9,299

645

(8,554)

(48,798)

47,986

3,133

9M10

825Result of the period

(228)Result of the period attributable to minority interests

1,053Consolidated result of the period

(584)Income taxes

1,637Earnings before taxes

(225)Net other non-operating expenses

(12)Other non-operating holding expenses

(484)Interest expenses on financial debt

(28)Non-operating income from financial instruments at fair value through profit or loss

(1,464)Non-operating result

(210)Net other operating expenses

(214)Operating holding expenses

7,893Operating income from other financial instruments

694Net fee and commission income and net income from financial service activities

(8,609)Acquisition and administration costs

(39,040)Net insurance benefits and claims

46,692Net earned premiums

3,100Operating result

9M11

Total(Euro m)

IV. BACK UP

Page 36: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

36

37---37-Non-operating income from fin. instr.at fair value through profit or loss

(3,574)----(3,574)of which var. of provisions related to unit linked business

1,777----1,777of which net income from fin.assets and liabilities where the risk is borne by the policyholders

3,025--86302,909Operating income from fin. Instruments at fair value through profit or loss

9,299(29)-2168638,249Operating income from other fin. Instruments

(765)

-

(561)

-

(561)

-

(204)

-

-

-

-

(204)

Unallocated holding expenses

(561)----Non-operating holding expenses

(204)----Operating holding expenses

2,108

(368)

(132)

(1,025)

(267)

645

(8,554)

(48,798)

47,986

3,133

Total

(120)

-

4

4

1

(98)

-

-

-

(124)

Consolidation adjustments

229

(47)

(1)

(48)

(16)

651

(660)

0

0

277

Financial(1)Non life

2,082

(132)

(88)

(220)

(70)

92

(3,747)

(37,985)

32,855

2,302

682Earnings before taxes

(189)Net other non-operating expenses

(48)Non-operating income from other fin.instr.

(200)Non-operating result

(182)Net other operating expenses

0Net fee and commission income and net income from financial service activities

(4,147)Acquisition and administration costs

(10,813)Net insurance benefits and claims

15,131Net earned premiums

882Operating result

Life(Euro m)

Reclassified P&L account by segment – 9M 2010

IV. BACK UP

(1) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Report

Page 37: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

37

(28)---(28)-Non-operating income from fin. instr.at fair value through profit or loss

2,997----2,997of which var. of provisions related to unit linked business

(4,147)----(4,147)of which net income from fin.assets and liabilities where the risk is borne by the policyholders

(4,105)--9324(4,222)Operating income from fin. Instruments at fair value through profit or loss

7,893(30)-2378246,862Operating income from other fin. Instruments

(711)

-

(496)

-

(497)

-

(214)

-

-

-

-

(214)

Unallocated holding expenses

(496)----Non-operating holding expenses

(214)----Operating holding expenses

1,637

(225)

(714)

(1,464)

(210)

694

(8,609)

(39,040)

46,692

3,100

Total

(149)

(2)

-

(2)

(12)

(89)

-

(15)

-

(147)

Consolidation adjustments

314

(42)

76

35

(17)

657

(691)

0

0

279

Financial(1)Non life

1,496

(92)

(390)

(482)

(24)

126

(3,732)

(28,357)

31,324

1,978

687Earnings before taxes

(89)Net other non-operating expenses

(400)Non-operating income from other fin.instr.

(517)Non-operating result

(157)Net other operating expenses

0Net fee and commission income and net income from financial service activities

(4,187)Acquisition and administration costs

(10,668)Net insurance benefits and claims

15,367Net earned premiums

1,204Operating result

Life(Euro m)

Reclassified P&L account by segment – 9M 2011

IV. BACK UP

(1) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Report

Page 38: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

38

Assicurazioni Generali Group – 9M 2011 results

Evolution of Group impairment triggers for equities AFS (1/2)

Up to HY11 closing, equities were considered as impaired in case of:

�“Prolonged” decline (continuous loss for 36 months) or

�“Significant” decline using a single threshold (decline higher than 50%) for all

equities classified as available for sale.

Starting from IIIQ 2011:

�Due to the extraordinary volatility of the financial market the “significant” decline

thresholds are determined separately by market sector based mainly on the relevant

volatility.

�No changes on the definition of “prolonged” decline applied.

�The evolution of the methodology allows a better diversification based on the specific

sector risk, while keeping the general threshold of 50% decline still valid.

IV. BACK UP

Page 39: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

39

Assicurazioni Generali Group – 9M 2011 results

Evolution of Group impairment triggers for equities AFS (2/2)

New impairment triggers applied

Impacts on profit and loss due to the new triggers

IV. BACK UP

FinancialConsumer

discretional Telecom Industrial Utilities Energy OthersTotal

average

Triggers 70% 37% 55% 51% 47% 59% 40% 50%

(1) Intesa SanPaolo shares

(2) Basic materials sector

Banks(1)

Others(2)

Total impact

A Amortised cost 1.726 150

B Fair value 679 81

C = B-A Gross unrealised losses -1.047 -69

C/A -61% -46%

Impact on EBT 270 -20 250

Unrealised losses

kept on AFS reserve

Additional

impairment booked

on P/L

Page 40: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

40

410

370

780

187

65

41

487

9M10

116

346

462

15

60

7

380

9M10

-

24

24

8

-

16

1

9M10

294

-

294

164

5

19

107

9M10

4598133319Other investments(2)

794

2,308

3,103

21

1,889

733

9M11

5

8

12

-

3

1

9M11

495

-

495

(1)

196

167

9M11

295

2,301

2,596

22

1,690

565

9M11

Of which

Total net impairments

Total

Operating net

impairments

Equity instruments

Fixed income

Real estate

Financial

Non operating net

impairments

Net impairments

P&CLife(Euro m)

Focus on impairments(1)

(1) Net of reverse impairments

(2) Including subsidiaries and associated companies

IV. BACK UP

Page 41: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

41

274

1,280

1,554

2

119

928

504

9M10

29

1,266

1,295

10

42

820

423

9M10

(1)

14

14

(1)

-

13

1

9M10

246

-

246

(7)

77

96

80

9M10

17781(14)110Other investments(2)

80

1,468

1,549

146

813

413

9M11

81

3

84

-

2

1

9M11

94

-

94

73

21

14

9M11

(95)

1,465

1,370

73

790

397

9M11

Of which

Total net realized gains

Total

Operating net realized

gains

Equity instruments

Fixed income

Real estate

Financial

Non operating net

realized gains

Net realized gains

P&CLife(Euro m)

Focus on realised gains(1)

(1) Excluding financial instruments at fair value through profit and loss

(2) Including subsidiaries and associated companies

IV. BACK UP

Page 42: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

42

315.5

56.8

98.9

9M11 Assets Under Management

Total

Euro 471.2 bn

Fixed income

instruments

79.5%

Other

4.2%

Real Estate

4.9%

Equity

5.8%

Available for sale

59.3%

Loans

24.7%

Real Estate

4.2%

Group

participations

0.7%

Held to maturity

1.4%Fin. Instr. at fair

value thr. P&L

4.3%

Unit Linked

Third parties AUM

“Own Investments”(1)

IV. BACK UP

(1) For the definitions refer to the related section within the backup

Cash & equival.

5.5%

Cash & equival.

5.5%

Page 43: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

43

Assicurazioni Generali Group – 9M 2011 results Assicurazioni Generali Group – 9M 2011 results

Focus on Greece Sovereign exposure

IV. BACK UP

� 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 considering the new European Union restructuring plan

(1) Haircut on amortised cost of Greek bonds

(2) Net of policyholders’ partecipation 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

BS before impairment

Gross

Impairment

BS after

impairment (2)

(F)

P&L impact

Haircut

% (1)

Page 44: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

44Portfolios exposure on Peripheral Europe

11.6

1.2

1.7

5.7

3.0

Gross(1)(Euro bn) Net(2)

Portugal 0.5

Spain 2.2

Ireland 0.3

Greece(3) 0.2

Total 3.2

Exposure to peripheral Europe Government Bonds as at 30.09.2011

IV. BACK UP

(1) Nominal value

(2) Net of Policyholder’s participation and taxes, on going concern basis

(3) Post impairment

Page 45: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

45

Assicurazioni Generali Group – 9M 2011 results

Investment yields(1)(2)

Bonds and Loans Equities Investment

properties

Other Total

% return 9M10 9M11 9M10 9M11 9M10 9M11 9M10 9M11 9M10 9M11

LIFE

Current 3.3 3.3 2.5 3.0 5.1 5.4 1.6 2.0 3.2 3.3

Total P&L 3.8 2.7 3.4 0.7 4.9 6.0 2.5 1.5 3.8 2.7

Comprehensive 4.8 1.4 0.8 -14.4 5.6 6.1 2.5 1.5 4.5 0.5

NON LIFE

Current 2.9 2.9 2.2 2.2 6.5 6.4 1.6 2.1 3.3 3.3

Total P&L 3.5 2.1 1.0 -1.8 7.7 7.7 1.1 2.1 3.8 2.5

Comprehensive 4.5 1.4 -0.6 -9.5 7.7 7.7 1.1 2.1 4.2 1.3

TOTAL

Current 3.2 3.2 2.7 3.2 5.6 5.7 1.2 1.5 3.1 3.2

Total P&L 3.7 2.6 2.8 0.3 6.0 6.6 1.7 1.6 3.7 2.6

Comprehensive 4.7 1.4 0.5 -13.2 6.4 6.7 1.7 1.6 4.3 0.7

(1) For the definitions refer to the related section within the backup

IV. BACK UP

(2) Comparative numbers have been restated considering Israeli participating portfolio reclassification in unit-linked business.

Page 46: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

46IFRS Shareholders’ equity roll forward

∆ Currency

Translation

Reserve

3Q 2011

Net Result

Other Shareholders’

Equity 9M11

∆ Cash Flow

Hedge Reserve

∆ in AFS

Reserve

Shareholders’

Equity 1H11

-8.0%

(Euro m)

Change in AFS reserve (Euro m)

(1836)(96)

(532)

(487)(721)

Other AFS Reserve 9M11

Impact Bond Investments

Impact Equity Investments

AFS Reserve

1H11

17,231 15,846

(59)(68)

2720

(1,304)

IV. BACK UP

Page 47: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

47Total comprehensive income(1)

1,308

(1,031)

270

(1,326)

196

(505)

181

(1,010)

(178)

1,916 459

794 (245)

1,033

(644)

3Q111Q11 2Q114Q103Q101Q10 2Q104Q093Q092Q091Q094Q083Q082Q081Q08

(Euro m)

(1) For the definitions refer to the related section within the backup

(860)

9M11

466

1H11

270

1Q11

1,452

FY10

2,096

9M10

1,308

1Q10

1,0632,9902,532616(178)(2,365)(1,354)(1,536)(1,031)

1H10FY099M091H091Q09FY089M081H081Q08

+3,000 m

-3,000 m

IV. BACK UP

Page 48: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

48

IV. Backup

P&L and Balance Sheet

Definitions

Page 49: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

49Definitions: P&L and balance sheet (1/3)

IV. BACK UP

Operating result of life, P&C and financial segments, before holding expenses and consolidation adjustmentsOperating Result

Premiums inflows in the period less benefits paid to the policyholders. It does not include revaluation of

mathematical reserves

Life Net Inflows

calculated considering equivalent exchange rates and scope of consolidationLike for Like changes

consists of the following elements:

i) "Technical Margin" includes loadings, risk result, surrender result; it is gross of acquisition and administration costs

ii) "Investment Result" includes interests and dividends, interest expenses on operating debt, G/L on foreign currency

and investment expenses, net of policyholder benefits; it includes also operating realised and unrealised G/L, net of

policyholder benefits

iii) "Expenses" include acquisition and administration costs and other net operating items (it does not consider any

loading charged to policyholders)

“Operating ratio on Investments” is calculated as Operating result on the average of Investments at book

value

Life Operating Result

is defined as new business annualised regular premiums plus 10% of single premiums.Annual Premium

Equivalent (APE)

Page 50: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

50

Assicurazioni Generali Group – 9M 2011 results

Own Investments does not include unit/index linked investments and consist of the following asset class (*):

i) Fixed income instruments include quoted and unquoted bonds, loans including deposits under reinsurance business

accepted, term deposits with credit institutions;

ii) Equity-like instruments include quoted and unquoted equities and alternative investments;

iii) Real estate investments excluding own used properties;

iv) Cash and cash equivalent including Repo and Reverse repo

v) Other investments include investments in non-consolidated subsidiaries, derivatives, receivables from banks or

customers

(*) Investment fund units are allocated to each asset class on a look through basis,

Own investments (beside for life segment where they include bonds and loans issued by Group companies

and investments in consolidated subsidiaries backing policyholders’ liabilities) 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 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 (2/3)

IV. BACK UP

Page 51: Generali Group 9M  2011 Results

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51

Assicurazioni Generali Group – 9M 2011 results

Change in shareholders’ equity during the period related to income and expenses recognized in profit or loss

or directly in shareholders’ equity resulting from transactions and events other than transactions with equity

Owners.

Total Comprehensive

Income

Investments Returns are calculated on quarterly average asset base at IFRS book value and are defined as follows:

Current return: interest, dividends and similar income

Total P&L return: = current return + harvesting return (net realized gains, net impairments and net unrealized

gains reported in P&L)

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 include income from bonds and loans issued by Group companies and

investments in consolidated subsidiaries backing policyholders’ liabilities.

Definitions: P&L and balance sheet (3/3)

IV. BACK UP

Page 52: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

52Investor Relations Team

Paola Buratti (Tel.: +39-040-671157)

Head of Investor Relations

Email: [email protected]

Stefano Burrino (Tel.: +39-040-671202)

Email: [email protected]

Emanuele Marciante (Tel.: +39-040-671347)

Email: [email protected]

Veronica Cherini (Tel.: +39-040-671488)

Email: [email protected]

Rodolfo Svara (Tel.: +39-040-671823)

Email: [email protected]

Marta Porczynska (Tel.: +39-040-671402)

IR Events

Email: [email protected]

Assicurazioni Generali

P.za Duca degli Abruzzi 2

34132 Trieste, Italy

Fax: +39 040 671338

e-mail: [email protected]

www.generali.com

Page 53: Generali Group 9M  2011 Results

Assicurazioni Generali Group – 9M 2011 results

53Disclaimer

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, 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.

Page 54: Generali Group 9M  2011 Results

November 11, 2011

Generali Group

9M 2011 Results