Generali Group 1Q 2012 Results
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The document is the 1Q 2012 results presentation for Assicurazioni Generali Group. It provides an overview of the company's financial results for the first quarter of 2012, including highlights such as a 0.1% decrease in operating result compared to 1Q 2011, a 7.9% decrease in net result, and a 16.3% increase in shareholders' equity. It also reviews the company's profitability and business development by segment, including positive growth in life and P&C premiums, stable life operating results, and improved P&C technical results. The presentation provides additional financial details on topics such as the investment portfolio, IFRS equity, and Solvency I ratio.
Generali Group 1Q 2012 Results
- 1. Generali Group 1Q 2012 Results May 11, 2012
- 2. Agenda 2 I. Overview Page 3 II. Group financials Page 5 III. Final remarks Page 22 IV. Backup Page 24 Assicurazioni Generali Group – 1Q 2012 results
- 3. Agenda 3 I. Overview 1Q 2012 results at a glance Following the announcement of the sale of related stake, Migdal qualified as a non-current asset held for sale and discontinued operations. Therefore, in this presentation, Migdal is excluded from all 1Q12 figures, except as follows: net income; shareholders' equity; and the regulatory Solvency 1 margin. Except where specified, prior year figures have not been adjusted. Like for like comparisons are adjusted for the disposal of Migdal. See definition in the related section in the back-up. Assicurazioni Generali Group – 1Q 2012 results
- 4. I. OVERVIEW 1Q 2012 results at a glance 4 Operating result (Euro m) Combined ratio (%) -0.1%(1) -0.7%pts. 1Q11 1Q12 1Q11 1Q12 (1) On like for like basis Net result (Euro m) Shareholders’ equity (Euro m) -7.9% +16.3% 616 567 1Q11 1Q12 FY11 1Q12 Assicurazioni Generali Group – 1Q 2012 results
- 5. Agenda 5 II. Group financials Profit & loss review Life and P&C segment profitability Balance sheet and solvency I Assicurazioni Generali Group – 1Q 2012 results
- 6. II. GROUP FINANCIALS Revenue development by segment 6 Gross written premiums (Euro m) (Euro m) Like for 1Q11 1Q12 like ∆ Gross written 19,131 19,814 +6.1% +6.1% (2) premiums Life(1) 12,340 12,815 +6.9% 1Q11 1Q12 P&C 6,792 6,999 +4.7% (1) Including investment contracts (Euro 786 m in 1Q12, 755 in 1Q11) (2) On like for like basis Assicurazioni Generali Group – 1Q 2012 results
- 7. II. GROUP FINANCIALS Operating result by segment 7 1Q12 total operating result (Euro m) Like for like Life 819 operating result -4.2% 881 P&C 411 operating result +3.8% 393 Financial services 126 operating result +12.2% 115 Operating holding -74 expenses +0.3% -74 Consolidation -52 adjustments -59 -11.9% 1,230 Total -0.1% 1,256 operating result 1Q12 1Q11 Assicurazioni Generali Group – 1Q 2012 results
- 8. II. GROUP FINANCIALS Focus on non operating result 8 (Euro m) Non operating investment income (Euro m) 1Q11 1Q12 4 9 (1) (26) (39) Non operating (1) (26) n.m. investment income 1Q11 1Q12 (1) Non operating (163) (163) -0.2% holding expenses (Euro m) Net Net Fair Net other realised impair- Value thr. Non operating (59) (77) +31.4% gains ments P&L expenses 1Q 12 10 (52) 17 Total 1Q 11 49 (56) 6 Non operating (223) (266) +19.0% result Δ (39) (4) +11 (1) Including interest expenses on financial debt Assicurazioni Generali Group – 1Q 2012 results
- 9. II. GROUP FINANCIALS From operating result to net result 9 (Euro m) Net income (Euro m) 1Q11 1Q12 Total operating result 1,256 1,230 -0.1%(1) Non operating result (223) (266) +19.0% -7.9% Consolidated result before 1,032 964 -6.6% taxes and minorities Income taxes (330) (334) +1.3% Result for discontinued 0 14 n.m. operations Minorities (87) (77) -11.3% 1Q11 1Q12 Net result 616 567 -7.9% (1) On like for like basis Assicurazioni Generali Group – 1Q 2012 results
- 10. Agenda 10 II. Group financials Profit & loss review Life and P&C segment profitability Balance sheet and solvency I Assicurazioni Generali Group – 1Q 2012 results
- 11. II. GROUP FINANCIALS Life business development 11 Gross written premiums (Euro m) Quarterly net inflows (Euro m) +6.9%(1) 1Q11 1Q12 Net technical reserves(2) (Euro bn) Net inflows by country (Euro m) +1.7% Country 1Q11 1Q12 316.6 301.5 1.7 3.4 306.6 Italy 157 (235) 58.3 47.9 51.3 15.1 France 554 (888) Δ Germany 1,095 994 258.3 253.6 255.3 CEE 116 106 RoE 489 533 FY11 Change FY11R Traditional Unit 1Q12 RoW 409 250 in scope Linked Traditional Unit linked TOTAL 2,819 760 (1) On like for like basis (2) Including liabilities related to investment contracts Assicurazioni Generali Group – 1Q 2012 results
- 12. II. GROUP FINANCIALS Life profitability - Operating result 12 Life operating profitability on investments remains at the top of the sector Life Operating Result by driver(1) Like for like (Euro m) 1Q11 1Q12 Technical Margin 1,600 1,543 +0.2% Investment Result 644 554 -8.1% Expenses (1,363) (1,279) -0.7% Operating Result 881 819 -4.2% Life quarterly operating ratio on 0.28% 0.27% investments (1) For the definitions refer to the related section in the backup Assicurazioni Generali Group – 1Q 2012 results
- 13. II. GROUP FINANCIALS Life New Business Annual Premium Equivalent 13 Solid APE production over 1.3 bn, with stable annual premiums (+0.6%) and strong single premiums increase (+14.0%) driven by France Annual Premium Equivalent (Euro m) Like for like (Euro m) 1Q11 1Q12 +6.0%(1) Italy 428 416 -2.8% France 294 432 +46.8% Germany 256 217 -15.2% CEE 40 39 -0.2% RoE 174 165 -6.3% 1Q11 1Q12 RoW 118 60 -1.1% Total 1,311 1,328 +6.0% (1) On like for like basis Assicurazioni Generali Group – 1Q 2012 results
- 14. II. GROUP FINANCIALS P&C gross written premiums 14 Premiums increased thanks to a favourable trend in both Motor and Non Motor lines Motor premiums improved (+3.8%) thanks to positive performances in particular in Italy, Germany, Spain and Latin America Non Motor business increased (+5.1%) pushed by all main lines of business Gross written premiums (Euro m) Like for like (Euro m) 1Q11 1Q12 +4.7%(1) Italy 1,701 1,708 +0.4% France 1,264 1,271 +0.5% Germany 1,325 1,383 +4.4% CEE 617 623 +4.4% RoE 1,501 1,598 +4.8% 1Q11 1Q12 RoW 384 415 +49.3% Total 6,792 6,999 +4.7% (1) On like for like basis Assicurazioni Generali Group – 1Q 2012 results
- 15. II. GROUP FINANCIALS P&C profitability - Operating result 15 Positive development of P&C operating result driven by technical profitability P&C Operating Result by driver(1) 1Q11 1Q12 Like for like (Euro m) Technical Result 185 222 +15.0% Tech.R Inv.R Investment Result 263 251 -2.7% Other Other (55) (62) +12.7% Operating Result 393 411 +3.8% P&C quarterly operating ratio 1.07% 1.15% on investments (1) For the definitions refer to the related section in the backup Assicurazioni Generali Group – 1Q 2012 results
- 16. II. GROUP FINANCIALS P&C profitability - Net combined ratio (1/2) 16 Combined ratio (%) Combined ratio by country -0.7%pts. 1Q11 1Q12 96.1 95.4 Italy 96.2% 95.0% -1.2%pts France 98.2% 97.2% -1.0%pts 27.8 27.9 Germany 95.3% 95.5% +0.2%pts CEE 87.6% 91.0% +3.4%pts 68.3 67.5 RoE 96.7% 95.6% -1.1%pts RoW 99.3% 96.5% -2.8%pts 1Q11 Expense Loss 1Q12 ratio ratio Total 96.1% 95.4% -0.7%pts Loss ratio Expense ratio Assicurazioni Generali Group – 1Q 2012 results
- 17. II. GROUP FINANCIALS P&C profitability - Net combined ratio (2/2) 17 Loss ratio (%) Reserving ratio (%) -0.8%pts -3.4%pts (1) 68.3 -0.3 +0.3 -0.8 67.5 500.7% 487.1% 1Q11 Current NAT Prior 1Q12 year CAT years 1Q12 70.3 0.7 -3.5 67.5 1Q11 1Q12 1Q11 70.6 0.4 -2.7 68.3 (1) On an annualized basis Expense ratio (%) +0.1%pts Quality of pricing and underwriting 27.8 27.9 confirmed by the level of Current year 6.0 -0.2 +0.3 5.8 loss ratio across the geographies Nat cat impact derives from medium events in continental Europe largely 21.8 Δ%pts 22.1 Acq. costs within the expected range Adm. costs 1Q11 Δ Admin. Δ Acq. 1Q12 Assicurazioni Generali Group – 1Q 2012 results
- 18. Agenda 18 II. Group financials Profit & loss review Life and P&C segment profitability Balance sheet and solvency I Assicurazioni Generali Group – 1Q 2012 results
- 19. II. GROUP FINANCIALS Investment portfolio by segment 19 Life segment own investments(1) (%) P&C segment own investments(1) (%) Euro 249.3 bn Euro 261.3 bn Euro 34.4 bn Euro 36.4 bn (1) For the definitions refer to the related section in the backup. Starting from 1Q12, assets and liabilities of Group’s Israeli companies have been classified as “held for sale” and are therefore excluded. Comparative figures have been restated accordingly. Assicurazioni Generali Group – 1Q 2012 results
- 20. II. GROUP FINANCIALS IFRS Shareholders’ equity roll forward 20 (Euro m) +16.3% 567 55 1 18,002 1,907 (13) 15,486 Shareholders’ Δ in AFS 1Q 2012 Δ Currency Δ Cash Flow Other Shareholders’ Equity FY11 Reserve Net Result Translation Hedge Reserve Equity 1Q12 Reserve Change in AFS reserve (Euro m) 1,688 100 (249) 119 (2,156) AFS Reserve Impact Equity Impact Bond Other AFS Reserve FY11 Investments Investments 1Q12 Assicurazioni Generali Group – 1Q 2012 results
- 21. II. GROUP FINANCIALS Solvency I according to Italian regulation 21 (Euro bn) Required margin Available margin 117% Main drivers of change 133% Available margin Consolidated result: + 0.6 Financial markets and other elements: + 1.9 Cap on locally admitted unrealized gains on real estate: + 0.5 Required Margin + 0.2 FY11 1Q12 Assicurazioni Generali Group – 1Q 2012 results
- 22. Agenda 22 III. Final Remarks Assicurazioni Generali Group – 1Q 2012 results
- 23. III. FINAL REMARKS Final remarks 23 Focus on extracting further value from the existing operations Life profitability back to pre-crisis levels Excellent P&C performance in both profitability and growth Outlook of 2012 Operating Result confirmed Assicurazioni Generali Group – 1Q 2012 results
- 24. 24 IV. Backup P&L and Balance Sheet Definitions Assicurazioni Generali Group – 1Q 2012 results
- 25. 25 IV. Backup P&L and Balance Sheet Definitions Assicurazioni Generali Group – 1Q 2012 results
- 26. IV. BACK UP 1Q12 total gross written premiums 26 (Euro m) Total Gross Written Premiums Gross Life Written Premiums(1) Gross P&C Written Premiums Historical Like for % Historical Like for % Historical Like for % Country GWP ∆ like ∆ weight GWP ∆ like ∆ weight GWP ∆ like ∆ weight Italy 4,914 0.0 0.0 24.8 3,206 -0.2 -0.2 16.2 1,708 +0.4 +0.4 8.6 France 5,002 +19.4 +19.4 25.2 3,731 +27.5 +27.5 18.8 1,271 +0.6 +0.5 6.4 Germany 4,624 -0.8 -0.8 23.3 3,241 -2.9 -2.9 16.4 1,383 +4.4 +4.4 7.0 Eastern Europe 1,035 +0.2 +3.7 5.2 412 -1.0 +2.7 2.1 623 +1.0 +4.4 3.1 RoE 3,125 +6.0 +4.6 15.8 1,526 +5.6 +4.4 7.7 1,598 +6.5 +4.8 8.1 Of which: Of which: Of which: Spain 711 +3.4 +3.4 3.6 276 +1.9 +1.9 1.4 435 +4.3 +4.3 2.2 Austria 760 -9.4 -9.4 3.8 292 -22.1 -22.1 1.5 468 +0.9 +0.9 2.4 Switzerland 689 +12.0 +5.1 3.5 264 +10.6 +3.7 1.3 425 +13.0 +6.0 2.1 RoW 1,114 -19.7 +20.5 5.6 699 -30.3 +7.6 3.5 415 +8.1 +49.3 2.1 Total 19,814 +3.6 +6.1 100 12,815 +3.8 +6.9 64.7 6,999 +3.1 +4.7 35.3 (1) Including investment contracts Assicurazioni Generali Group – 1Q 2012 results
- 27. IV. BACK UP Life Premiums by Country & Business Line 27 (Euro m) Savings and Unit/index pension Protection linked Total Italy 2,960 74 135 3,169 France 3,076 359 239 3,675 Germany 1,433 1,031 776 3,241 CEE 247 60 105 412 RoE 554 286 683 1,522 Of which: Spain 194 80 2 276 Austria 159 63 68 290 Switzerland 51 29 184 264 RoW 301 202 5 508 Total life gross 8,571 2,011 1,944 12,526 direct premiums Assicurazioni Generali Group – 1Q 2012 results
- 28. IV. BACK UP P&C Premiums by Country & Business Line 28 (Euro m) Accident/ Motor(1) Personal Commercial Health Total Italy 835 206 351 296 1,687 France 337 420 315 127 1,198 Germany 686 433 128 135 1,382 CEE 257 91 169 95 612 RoE 605 305 348 306 1,563 Of which: Spain 110 110 122 81 422 Austria 177 90 156 42 465 Switzerland 231 73 2 117 423 RoW 224 5 108 45 383 Total P&C gross 2,944 1,458 1,419 1,004 6,824 direct premiums (1) Including fleets Assicurazioni Generali Group – 1Q 2012 results
- 29. IV. BACK UP Life new business: APE 29 (Euro m) APE Annual Premiums Single Premiums Historical Like for Historical Like for Historical Like for 1Q11 1Q12 like 1Q11 1Q12 like 1Q11 1Q12 like Italy 428 416 -2.8% -2.8% 268 258 -4.0% -4.0% 1,599 1,584 -0.9% -0.9% France 294 432 +46.8% +46.8% 79 134 +69.2% +69.2% 2,153 2,983 +38.5% +38.5% Germany 256 217 -15.2% -15.2% 197 168 -14.8% -14.8% 592 494 -16.6% -16.6% CEE 40 39 -3.3% -0.2% 34 34 +0.9% +4.2% 61 45 -26.8% -24.4% RoE 174 165 -5.5% -6.3% 121 109 -9.5% -10.5% 536 554 +3.4% +3.3% 32 29 -9.7% -9.7% Spain 16 13 -17.1% -17.1% 163 159 -2.4% -2.4% 45 24 -46.5% -46.5% Austria 35 19 -44.4% -44.4% 96 44 -54.0% -54.0% 17 24 +35.1% +25.2% Switzerland 16 22 +31.8% +22.2% 10 19 +88.2% +74.4% RoW 118 60 -49.3% -1.1% 96 50 -47.6% +1.5% 224 97 -56.7% -12.4% Total 1,311 1,328 +1.3% +6.0% 794 752 -5.3% +0.6% 5,165 5,757 +11.5% +14.0% Assicurazioni Generali Group – 1Q 2012 results
- 30. IV. BACK UP Life net inflows by country 30 Country 1Q11 1Q12 Like for like Δ Italy 157 (235) n.m. France 554 (888) n.m. Germany 1,095 934 -9.3% CEE 116 106 -5.5% RoE 489 534 7.3% Of which: Spain (31) (13) 56.7% Austria 127 25 -80.3% Switzerland 58 146 137.2% RoW 409 250 10.1% TOTAL 2,819 760 -71.4% Assicurazioni Generali Group – 1Q 2012 results
- 31. IV. BACK UP Ratios 31 Life - Expense ratio (%) P&C - Combined ratio (%) 96.1% 95.4% Expense ratio 27.8 27.9 Loss 10.9 10.1 ratio 68.3 67.5 1Q11 1Q12 1Q11 1Q12 Total - Expense ratio (%) 16.0 15.4 1Q11 1Q12 Assicurazioni Generali Group – 1Q 2012 results
- 32. IV. BACK UP Ratios by country 32 (%) ITA FRA GER CEE RoE SPA AUT SWI RoW Consolidated P&C Loss ratio 64.9 65.1 71.8 1Q12 74.5 71.4 66.7 53.9 66.4 56.8 67.5 1Q11 75.2 71.2 67.0 55.0 67.3 65.9 65.6 71.5 62.7 68.3 P&C Expense ratio 26.9 31.1 25.0 1Q12 20.5 25.8 28.8 37.1 29.2 39.7 27.9 1Q11 21.0 27.0 28.3 32.6 29.4 26.5 30.9 25.9 36.6 27.8 P&C Combined ratio 91.7 96.2 96.8 1Q12 95.0 97.2 95.5 91.0 95.6 96.5 95.4 1Q11 96.2 98.2 95.3 87.6 96.7 92.4 96.6 97.4 99.3 96.1 Life expense ratio by country 4.5 14.7 20.4 1Q12 9.7 6.4 12.7 19.1 11.9 14.3 10.1 1Q11 9.7 8.3 12.4 18.5 11.9 4.5 12.1 20.1 16.2 10.9 Assicurazioni Generali Group – 1Q 2012 results
- 33. IV. BACK UP Combined ratio reconciliation 33 (Euro m) 1Q11 1Q12 A Net earned premiums (net of consolidation adjustments) 5,165.0 5,310.5 B Consolidated net claims 3,527.8 3,586.0 Consolidated acquisition costs 1,128.2 1,174.8 Consolidated administration costs 324.3 320.3 Non insurance activity related administration costs(1) 16.8 13.6 Insurance activity related consolidated administration costs 307.5 306.6 C Total acquisition and administration costs 1,435.7 1,481.5 B/A Loss ratio 68.3 67.5 C/A Expense ratio 27.8 27.9 (B+C)/A Combined ratio 96.1 95.4 D Other technical items 16.7 21.5 A-B-C-D Technical result 184.7 221.5 (1) Administration expenses related to service companies, real estate and other companies not belonging to P&C segment Assicurazioni Generali Group – 1Q 2012 results
- 34. IV. BACK UP Focus on operating result 34 Operating result by country(1) (Euro m) Operating result breakdown(1) (Euro m) Like for 1Q11 1Q12 like ∆ Italy 497 561 +12.8% 59 France 266 246 -7.8% 138 Germany 169 132 -22.0% CEE 142 122 -14.2% 0 RoE 248 219 -11.7% 79 49 364 RoW 66 76 +88.8% 14 5 76 166 34 59 0 24 Operating result(1) 1,389 1,356 -0.6% 84 94 58 53 Op. holding expenses (74) (74) +0.3% Italy France Germany CEE RoE RoW Consolidation Adj. (59) (52) -11.9% Life P&C Financial Total operating 1,256 1,230 -0.1% result (1) Operating result = operating result of life, P&C and financial segments, before holding expenses and consolidation adjustments Assicurazioni Generali Group – 1Q 2012 results
- 35. IV. BACK UP Operating result by country 35 Life operating result by market (Euro m) P&C operating result by market (Euro m) 1Q11 1Q12 Like for 1Q11 1Q12 Like for like ∆ like ∆ Italy 354 364 +2.7% Italy 106 138 +29.7% France 196 166 -15.4% France 70 80 +13.4% Germany 103 84 -18.8% Germany 55 35 -37.3% CEE 58 58 -0.2% CEE 76 59 -22.7% RoE 128 94 -26.2% RoE 71 76 +6.0% Of which: Of which: Spain 28 26 -6.4% Spain 41 44 +6.2% Austria 19 18 -6.0% Austria 22 21 -1.8% Switzerland 42 34 -18.6% Switzerland 10 11 +9.2% RoW 42 53 n.m. RoW 14 24 +43.9% Total 881 819 -4.2% Total 393 411 +3.8% Assicurazioni Generali Group – 1Q 2012 results
- 36. IV. BACK UP Reclassified P&L account 36 (Euro m) Total 1Q11 1Q12 Operating result 1,256 1,230 Net earned premiums 16,463 17,082 Net insurance benefits and claims (15,311) (18,981) Acquisition and administration costs (2,969) (2,930) Net fee and commission income and net income from financial service activities 241 217 Operating income from other financial instruments 3,316 2,808 Operating income from financial instruments at fair value through profit or loss (284) 3,235 Of which net income from fin. assets and liabilities where the risk is borne by the policyholders (472) 2,609 Operating holding expenses (74) (74) Net other operating expenses (126) (126) Non-operating result (223) (266) Non-operating income from other financial instruments (7) (42) Non-operating income from financial instruments at fair value through profit or loss 6 17 Non-operating holding expenses (163) (163) Interest expenses on financial debt (160) (162) Other non-operating holding expenses (3) (1) Net other non-operating expenses (59) (77) Earnings before taxes 1,032 964 Income taxes (330) (334) Result from discontinued operations 0 14 Consolidated result of the period 703 644 Result of the period attributable to minority interests (87) (77) Result of the period 616 567 Assicurazioni Generali Group – 1Q 2012 results
- 37. IV. BACK UP Reclassified P&L account by segment - 1Q 2011 37 Unallocated holding Consolidation (Euro m) Life Non life Financial(1) expenses adjustments Total Operating result 881 393 115 (74) (59) 1,256 Net earned premiums 11,298 5,165 0 - - 16,463 Net insurance benefits and claims (11,769) (3,528) 0 - (14) (15,311) of which var. of provisions related to unit linked business (817) - - - - (817) Acquisition and administration costs (1,303) (1,440) (226) - - (2,969) Net fee and commission income and net income from financial service activities 36 0.0 233 - (29) 241 Operating income from other fin. Instruments 2,993 256 80 - (13) 3,316 Operating income from fin. Instruments at fair value through profit or loss (330) 7 39 - - (284) of which net income from fin.assets and liabilities where the risk is borne by the policyholders (472) - - - - (472) Operating holding expenses - - - (74) - (74) Net other operating expenses (44) (67) (11) - (4) (126) Non-operating result (34) (18) (8) (163) - (223) Non-operating income from other fin.instr. (12) 4 1 - - (7) Non-operating income from fin. instr.at fair value through profit or loss 0 6 - - - (6) Non-operating holding expenses - - - (163) - (163) Net other non-operating expenses (23) (28) (8) - - (59) Earnings before taxes 847 375 107 (237) (59) 1,032 (1) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Report Assicurazioni Generali Group – 1Q 2012 results
- 38. IV. BACK UP Reclassified P&L account by segment - 1Q 2012 38 Unallocated holding Consolidation (Euro m) Life Non life Financial(1) expenses adjustments Total Operating result 819 411 127 (74) (52) 1,230 Net earned premiums 11,771 5,311 - - - 17,082 Net insurance benefits and claims (15,395) (3,586) - - - (18,981) of which var. of provisions related to unit linked business (2,666) - - - - (2,666) Acquisition and administration costs (1,237) (1,486) (208) - - (2,930) Net fee and commission income and net income from financial service activities 24 - 218 - (25) 217 Operating income from other fin. Instruments 2,482 244 106 - (24) 2,808 Operating income from fin. Instruments at fair value through profit or loss 3,185 7 42 - - 3,235 of which net income from fin.assets and liabilities where the risk is borne by the policyholders 2,609 - - - - 2,609 Operating holding expenses - - - (74) - (74) Net other operating expenses (12) (80) (30) - (4) (126) Non-operating result (72) (23) (9) (163) - (266) Non-operating income from other fin.instr. (34) (5) (3) - - (42) Non-operating income from fin. instr.at fair value through profit or loss - 17 - - - 17 Non-operating holding expenses - - - (163) - (163) Net other non-operating expenses (38) (34) (6) - - (77) Earnings before taxes 747 388 118 (237) (52) 964 (1) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Report Assicurazioni Generali Group – 1Q 2012 results
- 39. IV. BACK UP Focus on impairments(1) 39 (Euro m) Life P&C Financial Total Net impairments 1Q11 1Q12 1Q11 1Q12 1Q11 1Q12 1Q11 1Q12 Equity instruments 6 16 3 13 0 0 9 29 Fixed income 8 4 2 1 0 6 10 11 Real estate 0 2 (1) 0 0 0 (1) 2 Other investments(2) 6 4 50 30 1 1 57 35 Total net impairments 19 24 54 45 1 8 75 77 Of which Operating net 17 20 0 0 2 5 19 25 impairments Non operating net 2 4 54 45 (1) 3 56 52 impairments (1) Net of reverse impairments (2) Including subsidiaries and associated companies Assicurazioni Generali Group – 1Q 2012 results
- 40. IV. BACK UP Focus on realised gains(1) 40 (Euro m) Life P&C Financial Total Net realized gains 1Q11 1Q12 1Q11 1Q12 1Q11 1Q12 1Q11 1Q12 Net realized gains on Equities 349 84 31 (12) 2 0 408 72 Realised gains 489 206 67 37 7 4 562 247 Realised losses (140) (123) (36) (49) (4) (4) (181) (175) Net realized gains on Fixed Income 164 26 2 1 1 0 168 27 Realised gains 258 655 23 46 2 8 284 708 Realised losses (94) (628) (21) (45) (1) (8) (116) (681) Net realized gains on Real Estate 4 2 35 48 0 0 39 50 Realised gains 4 4 35 51 0 0 39 55 Realised losses 0 (2) 0 (4) 0 0 0 (5) Net realized gains on Other(2) 21 1 (10) 2 0 0 12 4 Realised gains 37 5 0 1 0 1 38 6 Realised losses (16) (3) (10) 1 0 (1) (26) (3) Total net realized gains 538 114 59 39 4 0 626 153 Of which Operating net realized gains 547 144 0 0 4 0 577 144 Non operating net realized gains (10) (30) 59 39 0 0 49 9 (1) Excluding financial instruments at fair value through profit and loss (2) Including subsidiaries and associated companies Assicurazioni Generali Group – 1Q 2012 results
- 41. IV. BACK UP 1Q12 Assets Under Management 41 Total Euro 461.2 bn 89.0 Third parties AUM 51.7 Unit Linked Available for sale Loans Fixed income Other 60.0% 22.1% instruments 3.9% Real Estate 79.4% 4.0% Real Estate Group 4.7% 320.5 participations 0.5% Equity Held to maturity 5.3% 2.4% Fin. Instr. at fair value thr. P&L Cash & equival. “Own Investments”(1) Cash & equival. 4.3% 6.6% 6.6% (1) For the definitions refer to the related section in the backup Assicurazioni Generali Group – 1Q 2012 results
- 42. IV. BACK UP Investment yields(1) 42 Bonds and Loans Equities Investment Other Total properties % return 1Q11 1Q12 1Q11 1Q12 1Q11 1Q12 1Q11 1Q12 1Q11 1Q12 LIFE Current 1.1% 1.1% 0.3% 0.5% 2.0% 2.0% 0.6% 0.3% 1.1% 1.0% Total P&L 1.2% 1.2% 2.1% 1.9% 1.6% 1.4% 0.9% 0.8% 1.2% 1.2% Comprehensive 0.3% 5.2% 1.9% 8.3% 2.1% 2.3% 0.9% 0.8% 0.5% 4.8% NON LIFE Current 0.9% 1.0% 0.4% 0.4% 2.1% 2.1% 0.5% 0.2% 1.0% 1.0% Total P&L 0.9% 1.1% 1.1% -0.3% 1.8% 1.9% 0.5% 0.6% 0.9% 0.9% Comprehensive 0.7% 4.2% 3.2% 5.2% 1.9% 1.9% 0.5% 0.6% 1.0% 3.4% TOTAL Current 1.1% 1.1% 0.3% 0.5% 2.0% 2.0% 0.4% 0.3% 1.0% 1.0% Total P&L 1.1% 1.2% 2.0% 1.6% 1.7% 1.6% 0.5% 0.6% 1.2% 1.1% Comprehensive 0.3% 4.9% 2.3% 7.6% 2.0% 2.1% 0.5% 0.6% 0.6% 4.4% (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 numbers have been restated accordingly Assicurazioni Generali Group – 1Q 2012 results
- 43. IV. BACK UP Total comprehensive income(1) 43 (Euro m) 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 1,916 2,530 +3,000 m 1,033 459 1,308 (644) 794 196 (245) 270 (178) 181 (1,326) (1,031) (306) (505) (1,010) -3,000 m 1Q08 1H08 9M08 FY08 1Q09 1H09 9M09 FY09 1Q10 1H10 9M10 FY10 1Q11 1H11 9M11 FY11 1Q12 (1,031) (1,536) (1,354) (2,365) (178) 616 2,532 2,990 1,308 1,063 2,096 1,452 270 466 (860) (1.166) 2,530 (1) For the definitions refer to the related section in the backup Assicurazioni Generali Group – 1Q 2012 results
- 44. IV. BACK UP AFS reserve breakdown 44 (Euro m) FY10 FY11 1Q12 Fixed income instruments (562) (1,780) (93) Government (396) (1,216) (193) Corporate (166) (564) 100 Equity 277 (382) (263) Investment funds and other 101 7 107 TOTAL (184) (2,156) (249) Assicurazioni Generali Group – 1Q 2012 results
- 45. 45 IV. Backup P&L and Balance Sheet Definitions Assicurazioni Generali Group – 1Q 2012 results
- 46. IV. BACK UP Definitions: P&L and balance sheet (1/2) 46 Investments Returns are calculated on quarterly average asset base at IFRS book value and are defined as follows: Current return: interests, dividends and similar income Total P&L return: = current return + harvesting return (net realized gains, net impairments and net unrealized gains reported in P&L) Comprehensive return: i) for fair value investment (AFS, FVthPL) = current return + total change in fair value; ii) for investment at amortised cost (Real estates, loans, HtM) = Total P&L return Investment returns for Life segment include income from bonds and loans issued by Group companies and investments in consolidated subsidiaries backing policyholders’ liabilities Life Net Inflows Premiums inflows in the period less benefits paid to the policyholders. It does not include revaluation of mathematical reserves Life Operating Result consists of the following elements: i) "Technical Margin" includes loadings, risk result, surrender result; it is gross of acquisition and administration costs ii) "Investment Result" includes interests and dividends, interest expenses on operating debt, G/L on foreign currency and investment expenses, net of policyholder benefits; it includes also operating realised and unrealised G/L, net of policyholder benefits iii) "Expenses" include acquisition and administration costs and other net operating items (it does not consider any loading charged to policyholders) “Operating ratio on Investments” is calculated as Operating result on the average of Investments at book value Like for Like changes calculated considering equivalent exchange rates and scope of consolidation. For operating result, like for like comparisons on account of consolidation changes adjust for Migdal only Operating Result Operating result of life, P&C and financial segments, before holding expenses and consolidation adjustments Assicurazioni Generali Group – 1Q 2012 results
- 47. IV. BACK UP Definitions: P&L and balance sheet (2/2) 47 Own Investments do not include unit/index linked investments and consist of the following asset class (*): i) Fixed income instruments as quoted and unquoted bonds, loans including deposits under reinsurance business accepted and term deposits with credit institutions ii) Equity-like instruments as quoted and unquoted equities and alternative investments iii) Real estate investments excluding own used properties iv) Cash and cash equivalent including Repo and Reverse repo v) Other investments as investments in non-consolidated subsidiaries, derivatives, receivables from banks or customers (*) Investment fund units are allocated to each asset class on a look through basis Own investments for life segment include bonds and loans issued by Group companies and investments in consolidated subsidiaries backing policyholders’ liabilities. P&C Operating Result consists of the following elements: I) "Technical Result" is net of acquisition and administration costs ii) "Investment Result" includes interests and dividends, interest expenses on operating debt and investment expenses iii) “Other" includes other net operating items not considered in Technical Result and in Investment Result “Operating ratio on Investments” is calculated as Operating result on the average of Investments at book value Total Comprehensive Change in shareholders’ equity during the period related to income and expenses recognized in profit or loss Income or directly in shareholders’ equity resulting from transactions and events other than transactions with equity Owners. Total Operating Result Operating result of life, P&C and financial segments, after holding expenses and consolidation adjustments. Operating result is a non-GAAP indicator and may differ from similar measure presented by other companies. Management uses this non-GAAP measure as key indicator in assessing Generali’s performance and believes that the presentation of these KPI provide useful and relevant information's to shareholders and users on Generali’s performance. Please refer to the ‘Methodological note on alternative performance measures’ included in the Management Report for details on operating result methodology.” Assicurazioni Generali Group – 1Q 2012 results
- 48. Investor Relations Team 48 Salvatore Colotti (Tel.: +39-040-671317) Head of Investor Relations & Head of Life Technical Department Email: salvatore_colotti@generali.com Stefano Burrino (Tel.: +39-040-671202) Email: stefano_burrino@generali.com Emanuele Marciante (Tel.: +39-040-671347) Assicurazioni Generali Email: emanuele_marciante@generali.com P.za Duca degli Abruzzi 2 34132 Trieste, Italy Veronica Cherini (Tel.: +39-040-671488) Email: veronica_cherini@generali.com Fax: +39 040 671338 e-mail: generali_ir@generali.com Rodolfo Svara (Tel.: +39-040-671823) Email: rodolfo_svara@generali.com www.generali.com Marta Porczynska (Tel.: +39-040-671402) IR Events Email: marta_porczynska@generali.com Assicurazioni Generali Group – 1Q 2012 results
- 49. Disclaimer 49 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. Assicurazioni Generali Group – 1Q 2012 results
- 50. Generali Group 1Q 2012 Results May 11, 2012