Assicurazioni Generali S.p.a. · MIL:G

Assicurazioni Generali — Q1 2013 Earnings Presentation

58 slides from Assicurazioni Generali's earnings presentation, May 10, 2013

  1. Slide 1: Generali Group 1Q 2013 Results

    Generali Group 1Q 2013 Results May 10, 2013

  2. Slide 2: Agenda

    Agenda 2 I. Overview Page 3 II. Group financials Page 5 III. Final remarks Page 24 IV. Backup Page 26 Assicurazioni Generali Group – 1Q 2013 results

  3. Slide 3: I. Overview

    Agenda 3 I. Overview 1Q 2013 results at a glance Assicurazioni Generali Group – 1Q 2013 results

  4. Slide 4: 1Q 2013 results at a glance

    I. OVERVIEW 1Q 2013 results at a glance 4 Operating result (Euro m) Net result (Euro m) +8.0% +6.3% 1,328 567 603 1,230 1Q12 1Q13 1Q12 1Q13 Shareholders’ equity (Euro m) Solvency I ratio (%) -1.2%(1) -7%pts.(1) 19,013 145 18,775 138 01/01/13 1Q13 01/01/13 1Q13 (1) FY12 shareholders’ equity was resta

  5. Slide 5: II. Group financials

    Agenda 5 II. Group financials Profit & loss review Life and P&C segment profitability Balance sheet and solvency I Assicurazioni Generali Group – 1Q 2013 results

  6. Slide 6: Revenue development by segment

    II. GROUP FINANCIALS Revenue development by segment 6 Gross written premiums (Euro m) (Euro m) Historical Like for 1Q12 1Q13 ∆ like ∆ -2.6%(2) Gross written 19,814 19,145 -3.4% -2.6% premiums 19.814 19.145 Life(1) 12,815 12,282 -4.2% -4.7% 1Q12 1Q13 P&C 6,999 6,863 -1.9% +1.5% (1) Including investme

  7. Slide 7: Operating result by segment

    II. GROUP FINANCIALS Operating result by segment 7 1Q13 total operating result (Euro m)  Life 797 -2.6% operating result 819 P&C 520 operating result +26.6% 411 Financial services 119 -6.1% operating result 126 Operating holding -83 expenses +12.2% -74 Consolidation -25 adjustments -52 -52.4% 1,328

  8. Slide 8: Focus on non operating result

    II. GROUP FINANCIALS Focus on non operating result 8 (Euro m) Non operating investment income (Euro m) 1Q12 1Q13  87 (54) (25) (25) (18) Non operating (25) (18) -29.2% investment income Non operating 1Q12 (163) (187) +15.2% 1Q13 holding expenses Of which: interest costs (162) (187) +15.9% Net other

  9. Slide 9: From operating result to net result

    II. GROUP FINANCIALS From operating result to net result 9 (Euro m) Net income (Euro m) 1Q12 1Q13  Total operating result 1,230 1,328 +8.0% Non operating result (266) (286) +7.5% +6.3% Consolidated result before 964 1,042 +8.1% taxes and minorities Income taxes(1) (334) (370) +10.8% 603 567 Result

  10. Slide 10: II. Group financials

    Agenda 10 II. Group financials Profit & loss review Life and P&C segment profitability Balance sheet and solvency I Assicurazioni Generali Group – 1Q 2013 results

  11. Slide 11: Life business development

    II. GROUP FINANCIALS Life business development 11 Gross written premiums (Euro m) Net technical reserves(2) (Euro bn) -4.7%(1) +1.4% 313.8 2.9 1.6 318.3 53.6 55.1 12.815 12.282 260.2 263.1 1Q12 1Q13 FY12 Traditional Unit 1Q13 Linked Traditional Unit linked Net inflows by country (Euro m) Country 1Q1

  12. Slide 12: Life profitability – Operating result

    II. GROUP FINANCIALS Life profitability – Operating result 12 Stable life operating profitability in a challenging financial environment Life Operating Result by driver(1) (Euro m) 1Q12 1Q13  Technical Margin 1,543 1,544 +0.1% Investment Result 554 517 -6.8% Expenses (1,279) (1,264) -1.2% Operating

  13. Slide 13: Life investment strategy and yields

    II. GROUP FINANCIALS Life investment strategy and yields 13 Life segment own investments (%)  Increased attention to improve the diversification of the Euro 277.0 bn Euro 279.0 bn investments, especially in corporate bonds 2,1% 2,0%  Current profitability remains affected by a low 4,7% 5,4% 3,5% 3

  14. Slide 14: Life new business: value and profitability

    II. GROUP FINANCIALS Life new business: value and profitability 14  APE slowdown driven by one-off single premiums written in 1Q12 in France  Improved NBM thanks to more favourable product mix and lower guarantees  Solid NBV at 254 millions Margin on APE APE (NBM) NBV (Euro m) Historical Like for

  15. Slide 15: P&C gross written premiums

    II. GROUP FINANCIALS P&C gross written premiums 15  Strong development in Non Motor, driven by Personal Lines across the geographies due to the excellent performances of the distribution network  Growing competition in Motor in Italy, France and Spain  Commercial under pressure mainly in Spain an

  16. Slide 16: P&C profitability – Operating result

    II. GROUP FINANCIALS P&C profitability – Operating result 16 Confirmed strong P&C operating profitability driven by good technical results P&C Operating Result by driver(1) (Euro m) 1Q12 1Q13  Technical Result 221 331 +49.3% Investment Result 251 249 -0.8% Other (62) (60) -3.4% Operating Result 411

  17. Slide 17: P&C profitability – Net combined ratio (1/2)

    II. GROUP FINANCIALS P&C profitability – Net combined ratio (1/2) 17 Combined ratio (%) Combined ratio by country -1.8%pts. 1Q12 1Q13  95.4% Italy 95.0% 91.1% -3.9%pts. 93.6% (0.7) (1.1) France 97.2% 95.5% -1.7%pts. 27.9 27.2 Germany 95.5% 93.8% -1.7%pts. CEE 91.0% 84.6% -6.3%pts. 67.5 66.4 RoE 95.

  18. Slide 18: P&C profitability – Net combined ratio (2/2)

    II. GROUP FINANCIALS P&C profitability – Net combined ratio (2/2) 18 Loss ratio (%) -1.1%pts.  Particularly favorable quarter without 67.5 +0.3 66.4 significant Nat Cat event -0.8 -0.7  Current loss ratio still decreasing due to a continuous improvement in Current NAT Prior Motor frequency 1Q12 ye

  19. Slide 19: P&C investment strategy and yields

    II. GROUP FINANCIALS P&C investment strategy and yields 19 P&C segment own investments (%)  Strong focus on deploying the existing cash in the portfolio Euro 37.9 bn Euro 37.4 bn  Increased attention to improve the diversification of the 1,6% 1,4% investments, especially in corporate bonds 8,0% 7,

  20. Slide 20: Financial segment

    II. GROUP FINANCIALS Financial segment 20 Operating result (Euro m) Net fees and commissions (Euro m) -6.1% +0.2% 126 119 218 218 1Q12 1Q13 1Q12 1Q13 Third party AUM(1) (Euro bn) Cost/income ratio (%) +4.4% +2.1%pts. 96,4 100.8 64.5 66.6 FY12 1Q13 1Q12 1Q13 (1) Including only third party AUM related

  21. Slide 21: II. Group financials

    Agenda 21 II. Group financials Profit & loss review Life and P&C segment profitability Balance sheet and solvency I Assicurazioni Generali Group – 1Q 2013 results

  22. Slide 22: IFRS Shareholders' equity roll forward

    II. GROUP FINANCIALS IFRS Shareholders’ equity roll forward 22 (Euro m) -1.2% 19,828 19,013 603 18,775 (815) (184) (45) (611) Shareholders’ Impact from 01/01/2013 Δ in AFS 1Q 2013 Δ Currency Other (including Shareholders’ Equity FY12 revised IAS 19 Reserve Net Result Translation Euro 477 m Equity 1Q

  23. Slide 23: Solvency I update

    II. GROUP FINANCIALS Solvency I update 23 (Euro bn) Required margin Available margin Solvency I ratio 150% 145%(1) Main drivers Main drivers of of change change 138% 26.9 26.1 Available margin 25.0  Consolidated result: + 0.7 17.9 17.9  Financial markets and other 18.2 elements: - 0.3  GPH 25% mi

  24. Slide 24: III. Final Remarks

    Agenda 24 III. Final Remarks Assicurazioni Generali Group – 1Q 2013 results

  25. Slide 25: Final remarks

    III. FINAL REMARKS Final remarks 25 Excellent underlying P&C performance Resilient Life profitability in a challenging market environment Prioritising reinvestment of excess cash Assicurazioni Generali Group – 1Q 2013 results

  26. Slide 26: IV. Backup

    Agenda 26 IV. Backup P&L Balance sheet Life Definitions Assicurazioni Generali Group – 1Q 2013 results

  27. Slide 27: IV. Backup

    Agenda 27 IV. Backup P&L Balance sheet Life Definitions Assicurazioni Generali Group – 1Q 2013 results

  28. Slide 28: 1Q13 Total gross written premiums

    IV. BACK UP 1Q13 Total gross written premiums 28 (1) (Euro m) Total gross written premiums Gross life written premiums Gross P&C written premiums YoY YoY YoY Weight on Weight on Weight on Country GWP % increase total GWP GWP % increase total GWP GWP % increase total GWP (2) (2) (2) Italy 4,647 -5.4%

  29. Slide 29: 1Q13 Life premiums by country and business line

    IV. BACK UP 1Q13 Life premiums by country and business line(1) 29 Savings and pension Protection Unit/Index linked Total YoY % YoY % YoY % YoY % GDP increase (2) GDP increase (2) GDP increase (2) GDP increase (2) (Euro mln) Italy 2,778 -6.1% 67 -9.2% 110 -18.8% 2,955 -6.7% France 1,308 -57.5% 444 -3

  30. Slide 30: 1Q13 P&C premiums by country and business line

    IV. BACK UP 1Q13 P&C premiums by country and business line 30 (1) Motor Personal Commercial Accident/Health Total YoY % YoY % YoY % YoY % YoY % GDP increase (2) GDP increase (2) GDP increase (2) GDP increase (2) GDP increase (2) (Euro mln) Italy 781 -6.5% 209 +1.5% 334 -4.7% 280 -5.2% 1,604 -4.9% Fr

  31. Slide 31: 1Q13 technical ratios

    IV. BACK UP 1Q13 technical ratios 31 Life - Expense ratio (%) P&C - Combined ratio (%) 95.4 93.6 Expense ratio 27.9 27.2 Loss 10.1 10.5 ratio 67.5 66.4 1Q12 1Q13 1Q12 1Q13 Total - Expense ratio (%) 15.4 15.6 1Q12 1Q13 Assicurazioni Generali Group – 1Q 2013 results

  32. Slide 32: 1Q13 combined ratio reconciliation

    IV. BACK UP 1Q13 combined ratio reconciliation 32 (Euro m) 1Q12 1Q13 A Net earned premiums (net of consolidation adjustments) 5,311 5,284 B Consolidated net claims 3,586 3,508 Consolidated acquisition costs 1,175 1,129 Consolidated administration costs 320 319 Non insurance activity related administ

  33. Slide 33: 1Q13 technical ratios by country

    IV. BACK UP 1Q13 technical ratios by country 33 (%) ITA FRA GER CEE RoE SPA AUT SWI RoW Consolidated P&C Loss ratio 1Q13 71.2% 69.3% 65.3% 52.7% 65.7% 63.6% 64.4% 70.3% 63.8% 66.4% 1Q12 74.5% 71.4% 66.7% 53.9% 66.4% 64.9% 65.1% 71.8% 56.8% 67.5% P&C Expense ratio 1Q13 19.9% 26.1% 28.5% 31.9% 29.6% 2

  34. Slide 34: Focus on operating result

    IV. BACK UP Focus on operating result 34 Operating result by country(1) (Euro m) Operating result breakdown(1) (Euro m) 1Q12 1Q13 ∆ 568 Italy 562 568 +1.0% 61 France 246 249 +1.2% 167 Germany 130 172 +32.0% 249 241 CEE 122 121 -0.3% 80 172 38 RoE 219 241 +9.9% 339 14 121 92 66 7 85 168 74 RoW 76 85

  35. Slide 35: Life operating result

    IV. BACK UP Life operating result 35 Operating result (Euro m) Operating result by country (Euro m) 1Q12 1Q13  Italy 364 339 -6.7% -2.6% France 166 168 +1.3% Germany 84 92 +10.3% CEE 58 41 -28.8% 819 797 RoE 94 110 +16.6% Of which: Spain 26 26 +0.5% Austria 18 19 +7.1% Switzerland 34 35 +4.8% RoW 5

  36. Slide 36: P&C operating result

    IV. BACK UP P&C operating result 36 Operating result (Euro m) Operating result by country (Euro m) 1Q12 1Q13  Italy 138 167 +21.4% +26.6% France 80 80 +0.9% Germany 34 66 +91.8% CEE 59 74 +25.0% 520 RoE 76 92 +22.5% Of which: 411 Spain 44 45 +3.0% Austria 21 27 +26.5% Switzerland 11 12 +18.0% RoW 2

  37. Slide 37: Focus on impairments

    IV. BACK UP Focus on impairments(1) 37 (Euro m) Life P&C Financial Total Net impairments 1Q12 1Q13 1Q12 1Q13 1Q12 1Q13 1Q12 1Q13 Equity instruments 16 198 13 28 0 1 29 227 Fixed income 4 (12) 1 (4) 6 0 11 (17) Real estate 2 46 0 1 0 0 2 47 Other investments(2) 4 1 30 46 1 2 35 49 Total net impairmen

  38. Slide 38: Focus on realised gains

    IV. BACK UP Focus on realised gains(1) 38 (Euro m) Life P&C Financial Total 1Q12 1Q13 1Q12 1Q13 1Q12 1Q13 1Q12 1Q13 Net realized gains on Equities 84 173 (12) 22 0 33 72 227 Realised gains 188 204 37 28 0 33 225 265 Realised losses (104 (32) (49) (6) 0 0 (153) (38) Net realized gains on Fixed Income

  39. Slide 39: Reclassified P&L account

    IV. BACK UP Reclassified P&L account 39 Total (Euro m) 1Q12 1Q13 Total Operating result 1,230 1,328 Net earned premiums 17,082 16,194 Net insurance benefits and claims (18,981) (16,412) Acquisition and administration costs (2,930) (2,873) Net fee and commission income and net income from financial s

  40. Slide 40: Reclassified P&L account by segment – 1Q12

    IV. BACK UP Reclassified P&L account by segment – 1Q12 40 Unallocated holding Consolidation (Euro m) Life Non life Financial(1) expenses adjustments Total 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) (3,58

  41. Slide 41: Reclassified P&L account by segment – 1Q13

    IV. BACK UP Reclassified P&L account by segment – 1Q13 41 Unallocated holding Consolidation (Euro m) Life Non life Financial(1) expenses adjustments Total Total Operating result 797 520 119 (83) (25) 1,328 Net earned premiums 10,910 5,284 - - - 16,194 Net insurance benefits and claims (12,905) (3,50

  42. Slide 42: Focus on 1Q13 results

    IV. BACK UP Focus on 1Q13 results 42 (Euro m) 1Q13/ 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 1Q12 Life premiums(1) 11,503 10,543 12,009 12,815 10,415 10,271 13,309 12,282 -4.7% P&C premiums 5,219 4,931 5,823 6,999 5,419 5,027 5,359 6,863 +1.5% Total premiums 16,722 15,474 17,832 19,814 15,834 15,29

  43. Slide 43: IV. Backup

    Agenda 43 IV. Backup P&L Balance sheet Life Definitions Assicurazioni Generali Group – 1Q 2013 results

  44. Slide 44: Consolidated balance sheet

    IV. BACK UP Consolidated balance sheet 44 (Euro bn) FY12 1Q13 (Euro bn) FY12 1Q13 Shareholders’ Equity Intangible assets 9.9 9.8 (Group share) 19.8 18.8 Minority interests 2.7 1.9 Investments 374.1 376.0 Shareholders’ Equity 22.6 20.6 Cash 21.6 23.4 Operating debt 50.7 51.2 Other credits 11.1 13.1 F

  45. Slide 45: 1Q13 Assets under management

    IV. BACK UP 1Q13 Assets under management 45 Total Euro 498.2 bn Third parties AUM 101.9 Unit Linked 55.6 Available for sale Loans Fixed income Other 62.9% 20.1% instruments 3.6% Real Estate 81.2% 3.7% Real Estate 4.4% Group 340.7 participations Equity 0.5% 4.5% Held to maturity Cash & equival. 2.3%

  46. Slide 46: Investment yields

    IV. BACK UP Investment yields(1) 46 Investment Fixed Income Equities Other Total Properties Return (%) 1Q12 1Q13 1Q12 1Q13 1Q12 1Q13 1Q12 1Q13 1Q12 1Q13 LIFE Current 1.1 1.0 0.5 0.1 2.0 1.9 0.3 0.4 1.0 0.9 Total P&L 1.2 1.2 1.9 1.0 1.4 1.1 0.8 -0.4 1.2 1.1 Comprehensive 5.2 0.8 8.3 1.4 2.3 1.0 0.8 -

  47. Slide 47: Total comprehensive income

    IV. BACK UP Total comprehensive income(1) 47 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 (Euro m) 681 1,850 +4,000 m 2,530 1,032 (344) 1,308 (644) (244) 196 425 270 (1,326) -1,000 m (307) 3M10 6M10 9M10 12M10 3M11 6M11 9M11 12M11 3M12 6M12 9M12 12M12 3M13 1,308 1,064 2,096 1,452

  48. Slide 48: AFS reserve breakdown

    IV. BACK UP AFS reserve breakdown 48 (Euro m) FY11 FY12 1Q13 Fixed income instruments (1,780) 1,889 1,631 Government (1,216) 1,111 860 Corporate (564) 778 770 Equity (382) 549 578 Investment funds and other 7 152 198 TOTAL (2,156) 2,591 2,406 Assicurazioni Generali Group – 1Q 2013 results

  49. Slide 49: IV. Backup

    Agenda 49 IV. Backup P&L Balance sheet Life Definitions Assicurazioni Generali Group – 1Q 2013 results

  50. Slide 50: Life new business: APE

    IV. BACK UP Life new business: APE 50 (Euro m) APE Annual Premiums Single Premiums Like for like Like for like Like for like 1Q12 1Q13  1Q12 1Q13  1Q12 1Q13  Italy 416 401 -3.7% 258 261 +1.4% 1,584 1,395 -11.9% France 432 248 -42.5% 134 112 -16.4% 2,983 1,367 -54.2% Germany 217 303 +39.7% 168 173

  51. Slide 51: IV. Backup

    51 IV. Backup P&L Balance sheet Life Definitions Assicurazioni Generali Group – 1Q 2013 results

  52. Slide 52: Definitions: P&L and balance sheet (1/2)

    IV. BACK UP Definitions: P&L and balance sheet (1/2) 52 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 (gross of investments related expenses) Total P&L return: = current return

  53. Slide 53: Definitions: P&L and balance sheet (2/2)

    IV. BACK UP Definitions: P&L and balance sheet (2/2) 53 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

  54. Slide 54: Definitions: Life new business value and profitability

    IV. BACK UP Definitions: Life new business value and profitability 54 Annual Premium is defined as new business annualised regular premiums plus 10% of single premiums Equivalent (APE) New Business Value is the present value, at point of sale, of the projected stream of after tax industrial profits

  55. Slide 55: What's next

    What’s next 55 August 2, 2013 - 1H 2013 Results November 8, 2013 - 9M 2013 Results November 27, 2013 - Investor Day Assicurazioni Generali Group – 1Q 2013 results

  56. Slide 56: Investor Relations Team

    Investor Relations Team 56 Spencer Horgan (Tel.: +44-20-72656480) Head of Investor Relations Email: spencer_horgan@generali.com Stefano Burrino (Tel.: +39-040-671202) Email: stefano_burrino@generali.com Emanuele Marciante (Tel.: +39-040-671347) Assicurazioni Generali Email: emanuele_marciante@genera

  57. Slide 57: Disclaimer

    Disclaimer 57 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 r

  58. Slide 58: Generali Group 1Q 2013 Results

    Generali Group 1Q 2013 Results May 10, 2013 March 2006

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