Assicurazioni Generali S.p.a. · MIL:G
Assicurazioni Generali — H1 2021 Earnings Presentation
49 slides from Assicurazioni Generali's earnings presentation, Aug 3, 2021
Slide 1: GENERALI GROUP 2021 First Half Results
GENERALI GROUP 2021 First Half Results The like for like change of written premiums and life net cash inflows is on equivalent terms (on equivalent exchange rates and consolidation area). Operating result, Asset Under Management and Life technical provisions exclude assets under disposals or dispose
Slide 2: Agenda
2 Agenda I. Strategy Overview Page 3 Philippe Donnet – Group CEO III. 2021 First Half Group Financials Page 9 Cristiano Borean – Group CFO IV. Backup Page 32 © Generali August 3, 2021 2021 First Half Results
Slide 3: Agenda: Strategy Overview
3 Agenda I. Strategy Overview Philippe Donnet – Group CEO page 3 © Generali August 3, 2021 2021 First Half Results
Slide 4: Key messages
CEO – Strategy Overview 4 Key messages Excellent business profitability and extremely solid capital position M&A and partnerships accelerating ‘Generali 2021’ plan delivery Updated climate change strategy highlighting Generali’s on-going commitment to Sustainability Fully on track to deliver ‘Genera
Slide 5: Excellent business profitability and extremely solid capital position
CEO – Strategy Overview 5 Excellent business profitability and extremely solid capital position OPERATING RESULT P&C COMBINED RATIO LIFE NEW BUSINESS MARGIN (€ m) (%) (%) +10.4% +0.2 p.p. +0.73 p.p. 2,996 89.5 89.7 4.67 2,714 3.94 1H 2020 1H 2021 1H 2020 1H 2021 1H 2020 1H 2021 ADJUSTED NET RESULT (
Slide 6: M&A and partnerships accelerating "Generali 2021" plan delivery
CEO – Strategy Overview 6 M&A and partnerships accelerating “Generali 2021” plan delivery Strategic Priority Status Update INTEGRATION ADRIATIC SLOVENICA AND CONCORDIA COMPLETED SEGURADORAS UNIDAS INTEGRATION COMPLETED REINFORCE LEADERSHIP Clearly Defined IN EUROPE CATTOLICA STRATEGIC ▪ Voluntary te
Slide 7: Updated climate change strategy highlighting on-going commitment to sustainability
7 CEO – Strategy Overview Updated climate change strategy highlighting on-going commitment to sustainability Areas Programmes Details & Targets GREEN AND SUSTAINABLE ▪ € 8.5 – 9.5 billion in green and sustainable investments INVESTMENTS Investments & Finance ▪ € 500 million, sector first. € 2.2 bn o
Slide 8: Investor Day 2021: Presentation of the next three-year strategic plan
CEO – Strategy Overview 8 Investor Day 2021: Presentation of the next three-year strategic plan SAVE THE DATE December 15, 2021 Credits: Martino Lombezzi/Contrasto © Generali August 3, 2021 2021 First Half Results
Slide 9: Agenda: 2021 First Half Group Financials
9 Agenda III. 2021 First Half Group Financials Cristiano Borean – Group CFO page 9 © Generali August 3, 2021 2021 First Half Results
Slide 10: 2021 First Half results at a glance
CFO – At a glance 10 2021 First Half results at a glance dgffd 1H20 1H21 D (LFL) (1) VOLUMES Gross Written Premiums (€ m) 36,478 38,093 +5.5% Life (€ m) 24,645 25,791 +5.8% P&C (€ m) 11,833 12,301 +4.9% Life Net Inflows (€ m) 7,005 6,306 -8.6% Life Reserves (€ bn) (2) 384,729 393,403 +2.3% PROFITABI
Slide 11: Operating result growing thanks to business diversification
CFO – Profit & Loss 11 Operating result growing thanks to business diversification +10.4% (€ m) 212 2,996 74 87 2,714 (44) (46) 1H20 Life P&C AM Holding & Other Cons. Adj 1H21 businesses 1H 21 1,442 1,256 306 251 (259) 2,996 1H 20 1,369 1,302 219 38 (215) 2,714 D% +5.4% -3.6% +39.6% n.m. +20.6% +10.
Slide 12: Growth in Life volumes and strong technical margin
CFO – Life Insurance 12 Growth in Life volumes and strong technical margin (€ m) 1H20 1H21 LFL D VOLUMES Gross written premiums 24,645 25,791 +5.8% Net inflows 7,005 6,306 -8.6% PVNBP 22,521 24,516 +8.9% PROFITABILITY Life operating result 1,369 1,442 +5.4% Life operating ratio on investments (bps)
Slide 13: Sound growth of Life operating result
CFO – Life Insurance 13 Sound growth of Life operating result (€ m) +5.4% 232 94 ▪ Technical margin growth thanks to the shift 1,369 1,442 in our mix towards Protection and Unit Linked businesses (252) ▪ Investment result improving vs last year, which was impacted by negative financial market develo
Slide 14: Further improving the quality of life net inflows
CFO - Life Insurance 14 Further improving the quality of life net inflows 1H 2020 net inflows came from the Unit Linked contract with Cometa worth €1.5 bn in Italy. Excluding Cometa net inflows were up by 16.6% as at 1H 2021 NET INFLOW BY COUNTRY NET INFLOW MIX BY LOB (1H21) NET INFLOW DEVELOPMENT B
Slide 15: Life technical reserves growth thanks to net inflows and market moves
CFO – Life Insurance 15 Life technical reserves growth thanks to net inflows and market moves TOTAL LIFE RESERVES CAPITAL LIGHT RESERVES ON TOTAL (1) (€ bn) +2.3% (%) 6.3 9.5 393.4 384.7 (3.3) (3.9) 95.6 85.7 +11.5% 64.5% 62.7% -0.4% 299.0 297.8 FY20 Net Loadings, Policyholder share Exchange rate, 1
Slide 16: Excellent new business value generation
CFO – Life Insurance 16 Excellent new business value generation PVNBP (€ m) X MARGIN ON PVNBP = NEW BUSINESS VALUE (€ m) 22,521 24,516 X 3.94% 4.67% = 887 1,145 +8.9% TOTAL +0.73 4,01% p.p. 4,35% +29.3% 10,886 2.38% 2.20% 240 10,106 +7.7% Saving -0.6% 241 +25.5% 5,150 9.52% 10.23% 527 Protection 4,1
Slide 17: Strong growth in volumes coupled with high profitability
CFO – Life Insurance 17 Strong growth in volumes coupled with high profitability PVNBP MARGIN ON PVNBP +8.9% (%) (€ m) +1.94 p.p. -0.15 p.p. +0.73 p.p. 24,516 +1.36 p.p. -10.8% 8.16% 6.55% +17.0% +0.12 p.p. +0.18 p.p. 5.55% +21.6% 4.67% +50.5% 9,727 +20.9% 2,431 3.09% 2.81% 6,272 1,219 4,866 Italy F
Slide 18: Life investment return reflecting lower yields
CFO – Life Insurance 18 Life investment return reflecting lower yields Life segment general account Current returns (%) €358bn €344bn €m % 3.4 3.2 2.9 2.7 2.3 1H20 3,929 1.4% 2.9 Fixed income 3.9 4.1 1H21 3,773 1.2% 10.2 11.5 Other 1H20 235 1.6% Equity Cash & cash equivalent 28.4 28.9 1H21 183 1.3%
Slide 19: Strong growth in P&C volumes at excellent profitability
CFO – P&C Insurance 19 Strong growth in P&C volumes at excellent profitability (€ m) 1H20 1H21 LFL D VOLUMES Gross written premiums, of which: 11,833 12,301 +4.9% Primary Motor 4,400 4,520 +4.7% Primary Non Motor 6,957 7,273 +4.9% PROFITABILITY Combined ratio 89.5% 89.7% +0.2 p.p. Nat Cat impact 1.1
Slide 20: Growth in P&C volumes coupled with high technical profitability
CFO – P&C Insurance 20 Growth in P&C volumes coupled with high technical profitability Total variation due to: Primary Motor +4.7% GROSS WRITTEN PREMIUMS Primary Non-Motor +4.9% COMBINED RATIO (€ m) (%) +4.9% +0.3 p.p. +5.1 p.p. +0.2 p.p. -1.0 p.p. +0.0 p.p. 12,301 -3.0 p.p. 95.9 95.2 +0.1 p.p. +7.5
Slide 21: Strong P&C Combined Ratio notwithstanding higher Nat Cat impact
CFO – P&C Insurance 21 Strong P&C Combined Ratio notwithstanding higher Nat Cat impact Combined ratio (%) Expense ratio (%) +0.6 p.p. +0.2 p.p. 27.9 0.9 28.5 89.5 0.6 0.6 89.7 5.2 4.9 (0.3) (0.4) 27.9 28.5 22.7 23.6 Administr. costs Acquisition costs 1H20 Δ amm. Δ acq. 1H21 Loss ratio (%) 61.5 -0.4
Slide 22: P&C operating result remains at excellent levels
CFO – P&C Insurance 22 P&C operating result remains at excellent levels (€ m) -3.6% 1,302 1,256 (15) (25) (7) ▪ Technical result impacted by Nat Cat events in continental Europe ▪ Investment result decreasing due to lower net current income from bond and equity investments 1H20 Technical result Inve
Slide 23: P&C investment return reflecting lower yields
CFO – P&C Insurance 23 P&C investment return reflecting lower yields P&C segment general account Current returns (%) €40bn €41bn Euro m % 7.0 6.7 1H20 337 1.3% Fixed income 10.9 12.9 1H21 295 1.1% 9.4 9.2 Other 1H20 45 1.9% 4.1 4.8 Equity 8.5 Cash & cash equivalent 1H21 29 1.6% 9.2 Real estate 1H20
Slide 24: Asset Management Global KPIs
CFO – Asset Management 24 Asset Management Global KPIs 1H20 1H21 Target 2021 KPIs Net result A.M. Global (€ m) 164 226 >400 External Clients Revenues 32% 31% >35% (% of operating revenues) Operating Margin (%) (1) 52% 60% >45% (1) Calculated as (1- cost income ratio) © Generali August 3, 2021 2021 F
Slide 25: Asset Management Global growing nicely
CFO – Asset Management 25 Asset Management Global growing nicely 1H20 1H21 Δ% Key Financials (€ m) (1) Operating Revenues 421 506 20.3% o/w management and other fees 408 487 +19.3% o/w performance fees 12 19 +52.6% Operating Expenses (201) (200) -0.7% Operating Result 219 306 +39.6% Net result (Asse
Slide 26: Asset Management Global: revenues contribution and external clients AuM
CFO – Asset Management 26 Asset Management Global: revenues contribution and external clients AuM Breakdown of revenues by Breakdown of External client assets (€ bn) Asset Manager expertise Total revenues (1H21): €506 m (of which €157 m of 3rd-party revenes) AuM (as of December 2020) 104.0 LDI / Ins
Slide 27: Strong contribution from Financial and Other Businesses segment
CFO – Holding & Other businesses 27 Strong contribution from Financial and Other Businesses segment (€ m) 1H20 1H21 % Financial and Other Businesses 294 496 +68.4% of which Banca Generali (1) 177 214 +20.9% of which other businesses (2) 117 282 n.m. Operating holding expenses (256) (245) -4.3% Tota
Slide 28: From operating to net result
CFO – Profit & Loss 28 From operating to net result Including: Including: €158m: Net realised gains (€58m): Restructuring costs (€121m): Net impairments (€43m): VOBA amortization €12m: Fair Value through P&L (€156m): Other net non operating items (€ m) 2,996 48 Tax rate: 31.5% (286) (258) 0 1,540 (7
Slide 29: Shareholders' equity negatively impacted by change in AFS reserve
CFO – Balance Sheet 29 Shareholders’ equity negatively impacted by change in AFS reserve Shareholders’ equity rollforward (€ m) Shareholders’ equity sensitivities -5.4% (€ bn) 30,029 1,540 172 28,412 (1,014) (2,315) Equities -1.1 -25% Interest rate -2.8 Shareholders' equity Δ in 1H21 Net Result Divi
Slide 30: Strong capital generation drives Solvency up further
CFO – Solvency 2 30 Strong capital generation drives Solvency up further Excess Own Own Solvency II ratio Funds SCR Funds(1) (%) (€ bn) (€ bn) (€ bn) FY 2020 44.4 19.8 24.6 224% Regulatory changes (0.2) 0.3 (0.4) -4%pts Normalized capital generation 2.0 (0.0) 2.1 +11%pts Economic variances 2.4 0.3 2
Slide 31: Final remarks
CFO – Final remarks 31 Final remarks Results confirm profitable growth at excellent technical margin Extremely solid Solvency 2 supported by strong capital generation Disciplined execution of ‘Generali 2021’ © Generali August 3, 2021 2021 First Half Results
Slide 32: Backup: Costs
32 III. Backup • Costs page 32 Investments page 34 Financial debt page 41 Solvency 2 page 44 © Generali August 3, 2021 2021 First Half Results
Slide 33: Fully on track to deliver our €300 million total expense reduction target
33 Backup: Costs Fully on track to deliver our € 300 million total expense reduction target TOTAL EXPENSES REDUCTION AMBITION Insurance Europe (2), € billion € 300 million total expense reduction 6.4 (including Cost to Achieve (1)) in Insurance Europe by 6.3 ~ € 270 m restructuring/simplification of
Slide 34: Backup: Investments
34 III. Backup Costs page 32 • Investments page 34 Financial debt page 41 Solvency 2 page 44 © Generali August 3, 2021 2021 First Half Results
Slide 35: Assets under management
Backup: Investments 35 Assets under management Total Portfolio: €672bn Breakdown by region and asset class (%) (%) 11 Italy 9 34 France 5 Germany By Region CEE 20 International General Other 22 account 26.1 Unit Linked 59.8 4 1 6 4 Third party Equity investments 14.1 Fixed income Real estate By Asse
Slide 36: Reconciliation with Group disclosure on external clients
Backup: Investments 36 Reconciliation with Group disclosure on external clients 1H21 Group External Clients Assets reconciliation (€ bn) 15.0 175.4 47.2 113.2 AM External Wealth Pension Funds Group External Client Assets Management¹ & Others² Clients Assets (1) Wealth Management corresponds to Banca
Slide 37: Fixed Income Portfolio
Backup: Investments 37 Fixed Income Portfolio Total Portfolio Covered Corporate Government €340bn €13bn €99bn €182bn (1) (%) (%) (%) (%) 1 13.4 30 8 14 1 5 Other fixed Income 3.8 0 1 28 30 37 41 Covered 21.4 60 58 Corporate non fin. 7.8 22 AAA AA A BBB Not Investment Grade Not Rated Corporate fin. 5
Slide 38: Fixed Income Portfolio by country
Backup: Investments 38 Fixed Income Portfolio by country Total Portfolio Covered Corporate Government €340bn €13bn €99bn €182bn (%) (%) (%) (%) 4 8 13.4 Other fixed 32 Income 30 18 38 3.8 42 49 Covered 21.4 11 0 2 0 16 9 19 1 19 2 Corporate non fin. 7.8 Italy France Germany CEE USA Other Corporate f
Slide 39: Equity & Equity-like
Backup: Investments 39 Equity & Equity-like Alternative funds: €10bn Total Portfolio: €24bn Equity: €9 bn (%) (%) (%) Life, P&C, AM and Life, P&C, AM and 04 19 Other 15 Other 2 0 Life Life P&C P&C 79 AM 41 38 AM 81 Other Other Equity funds: €5bn (%) Life, P&C, AM and Listed and 8 0 Other Unlisted 20
Slide 40: Asset Allocation: Real Estate
Backup: Investments 40 Asset Allocation: Real Estate (1) Total Portfolio: €31bn (1) Breakdown Office by use (2) 4 6 Residential (%) 17 Retail Breakdown Logistic by utilization (2) (%) Other/Mixed 11 63 14% Investment properties Own use Breakdown 1 Italy by country (2) 19 28 France (%) 86% Germany 4
Slide 41: Backup: Financial debt
41 III. Backup Costs page 32 Investments page 34 • Financial debt page 41 Solvency 2 page 44 © Generali August 3, 2021 2021 First Half Results
Slide 42: Focus on financial debt
Backup: Financial debt 42 Focus on financial debt Average cost & maturity of financial debt Total financial debt (%) (€) FY20 1H21 9.7bn 10.1bn Average cost (%) 4.94% 4.78% 213m 273m Subordinated/Hybrid 4.90% 4.70% Senior 5.13% 5.13% 8,155m 7,681m Average maturity (years) 5.8 5.6 Interest expenses o
Slide 43: Debt issuances breakdown by expiry date/call date
Backup: Financial debt 43 Debt issuances breakdown by expiry date/call date (Nominal value - € m) 8 1,750 1,000 1,510 769 1,250 850 750 500 600 500 415 1,250 195 - - - - - - - - - 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Green Bonds Sustainability Senior Hybrid Subordinated Bond ©
Slide 44: Backup: Solvency 2
44 III. Backup Costs page 32 Investments page 34 Financial debt page 41 • Solvency 2 page 44 © Generali August 3, 2021 2021 First Half Results
Slide 45: Focus on Solvency Capital Requirement
Backup: Solvency 2 45 Focus on Solvency Capital Requirement 1H21 SCR (€ bn, Regulatory view) Pre-diversification SCR by region AG & (%) Holdings International 8% 1H21 SCR before 13% 33.4 diversification Italy 34% ACEER Diversification 8.6 9% France 19% Germany Taxes 5.4 17% Pre-diversification SCR b
Slide 46: Disclaimer
46 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 r
Slide 47: Financial calendar
47 Financial calendar 11 November 2021 15 December 2021 9M 2021 Investor Day Results reporting 2019 © Generali August 3, 2021 2021 First Half Results
Slide 48: Contacts
48 Contacts Assicurazioni Generali Giulia Raffo Stefano Burrino Emanuele Marciante Group Head of Investor & Rating Investor Relations Credit & Rating Agency Relations Piazza Duca degli Abruzzi 2 Agency Relations 34132 Trieste, Italy giulia.raffo@generali.com stefano.burrino@generali.com emanuele.mar
Slide 49: GENERALI GROUP 2021 First Half Results
GENERALI GROUP 2021 First Half Results
Assicurazioni Generali — H1 2021 Earnings Presentation on 6ix