Assicurazioni Generali S.p.a. · MIL:G
Assicurazioni Generali — 9M 2011 Earnings Presentation
54 slides from Assicurazioni Generali's earnings presentation, Nov 11, 2011
Slide 1: Generali Group 9M 2011 Results
Generali Group 9M 2011 Results November 11, 2011
Slide 2: Agenda
Agenda 2 I. Overview Page 3 II. Group financials Page 5 III. Final remarks Page 22 IV. Backup Page 24 Assicurazioni Generali Group – 9M 2011 results
Slide 3: I. Overview
Agenda 3 I. Overview 9M 2011 results at a glance Assicurazioni Generali Group – 9M 2011 results
Slide 4: 9M 2011 results at a glance
I. OVERVIEW 9M 2011 results at a glance 4 Operating result (Euro m) Combined ratio (%) -1.0% -2.2%pts. 98.8 96.6 3,133 3,100 9M10 9M11 9M10 9M11 Net result (Euro m) Shareholders’ equity (Euro m) Impact from impairments of: -37.1% •Greek gov. bonds: ~Euro 329 m -9.4% •Telco: ~Euro 143 m 1,313 1,297 1
Slide 5: II. Group financials
Agenda 5 II. Group financials Profit & loss review Shareholders’ equity Life & P&C profitability Assicurazioni Generali Group – 9M 2011 results
Slide 6: Revenue development by segment
II. GROUP FINANCIALS Revenue development by segment 6 ∆ historical ∆ like for like ∆ like for like (Euro m) 9M11 (%) (%) 3Q11 (%) Gross written premiums 51,327 -4.6% -4.8% 15,474 -1.3% Life(1) 34,385 -7.7% -7.9% 10,543 -3.4% P&C 16,942 +2.3% +2.1% 4,931 3.5% Life annual premium equivalent(2) 3,535 -
Slide 7: Operating result by segment
II. GROUP FINANCIALS Operating result by segment 7 9M11 operating result (Euro m) 3Q11 operating result (Euro m) (%) (%) Life 1,978 315 operating result 2,302 -14.1% 734 -57.1% P&C 1,204 405 operating result(1) +36.4% +36.8% 882 296 Financial services 279 68 operating result +0.7% -7.9% 277 74 Opera
Slide 8: Focus on operating result
II. GROUP FINANCIALS Focus on operating result 8 Operating result by country(1) Operating result breakdown(1) (Euro m) (Euro m) 9M10 9M11 ∆ Italy 1,305 1,317 +0.9% 87 France 511 409 -20.0% 296 Germany 538 471 -12.5% CEE 277 351 +26.8% 99 RoE 558 658 +18.0% 933 38 259 7 RoW 272 255 -6.1% 193 194 18 2
Slide 9: From operating result to net result
II. GROUP FINANCIALS From operating result to net result 9 (Euro m) 9M10 9M11 Total operating result 3,133 3,100 -1.0% Non operating investment income (95) (742) Income and exp. from fin. assets at FV thr. P&L 37 (28) Income and exp. from other financial instruments (132) (714) (1) Non operating hol
Slide 10: Investment portfolio
II. GROUP FINANCIALS Investment portfolio 10 Own investments(1) at 30.09.11 (% on total) +1.3% Continued strategic de-risking Euro 311.5 bn Euro 315.5 bn program with cautious approach on risky assets 7.7% 9.8% 4.8% 4.9% 7.5% Other 5.8% 8.6% 8.8% Real estate Preference for domestic Equity government
Slide 11: IFRS Shareholders' equity roll forward
II. GROUP FINANCIALS IFRS Shareholders’ equity roll forward 11 (Euro m) -9.4% 17,490 825 29 (62) 15,846 (1,652) (699) (85) Shareholders’ ∆ in AFS 9M 2011 ∆ Currency ∆ Cash Flow Dividend Other Shareholders’ Equity FY10 Reserve Net Result Translation Hedge Equity 9M11 Reserve Reserve Change in AFS res
Slide 12: Solvency I according to Italian regulation
II. GROUP FINANCIALS Solvency I according to Italian regulation 12 (Euro bn) Required margin Available margin 132% Main drivers of change 118% Available margin Consolidated result: + 1.1 Financial markets and other elements: - 1.7 Double counting of AFS losses due to - 1.3 Italian regulation(1) Requ
Slide 13: Solvency I: double counting of AFS losses
II. GROUP FINANCIALS Solvency I: double counting of AFS losses 13 Example on double counting of AFS The strong reduction of the Regulatory losses Solvency I ratio in 3Q11(Euro 1.3 bn; Already included in 7%pts) is due to a negative one - off Negative AFS reserve shareholders’ equity and in effect de
Slide 14: Pro forma Solvency I update
II. GROUP FINANCIALS Pro forma Solvency I update 14 Pro forma Solvency I update without double counting of AFS losses and with Italian “anti crisis regulation” (Euro bn) Required margin Available margin 140%(1) Main drivers of change 137%(2) Available margin 23.6 23.6 Consolidated result: + 1.1 Fina
Slide 15: Life profitability – operating result
II. GROUP FINANCIALS Life profitability – operating result 15 Life operating profitability affected by current financial environment Life Operating Result by driver(1) 9M10 9M11 9M10 2,302 (Euro m) Technical Margin 4,478 4,558 +1.8% Tech.M 80 Investment Result 1,735 1,308 -24.6% Inv.R (426) Expenses
Slide 16: Life business development
II. GROUP FINANCIALS Life business development 16 Life gross written premiums (Euro m) Life net technical reserves(2) (Euro m) -7.9%(1) +0.8% 6.3 313.3 316.0 (3.7) 37,272 34,385 ∆ 9M10 9M11 FY10 Traditional Unit Linked 9M11 Life net inflows by country(3) (Euro m) Country 9M10 9M11 ∆(1) 9M2011 258.7
Slide 17: Life New Business Annual Premium Equivalent
II. GROUP FINANCIALS Life New Business Annual Premium Equivalent 17 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) (Euro m) APE 9M 9M Historical Like for like 2010 2011 Italy
Slide 18: P&C profitability - operating result
II. GROUP FINANCIALS P&C profitability - operating result 18 Strong increase of P&C operating result driven by technical profitability P&C Operating Result by driver(1) (Euro m) 9M10 9M11 9M10 882 Technical Result 153 492 +221.6% Tech.R 339 Investment Result 893 848 -5.1% Inv.R (45) Other (164) (136
Slide 19: P&C Gross Written Premiums
II. GROUP FINANCIALS P&C Gross Written Premiums 19 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,
Slide 20: P&C profitability (1/2)
II. GROUP FINANCIALS P&C profitability (1/2) 20 Combined ratio (%) Combined ratio by country -2.2%pts. 9M10 9M11 98.8 96.6 Italy 98.9% 96.8% -2.1%pts. (0.1) (2.1) France 100.3% 98.8% -1.5%pts. 27.3 27.2 Germany 95.7% 95.6% -0.1%pts. CEE 95.2% 88.7% -6.6%pts. 71.5 69.4 RoE 99.9% 96.6% -3.3%pts. RoW 1
Slide 21: P&C profitability – Net combined ratio (2/2)
II. GROUP FINANCIALS P&C profitability – Net combined ratio (2/2) 21 Loss ratio (%) Reserving ratio (%) -2.1%pts -3.6%pts 71.5 -1.6 -1.5 +1.0 69.4 200.7% 197.1% Current NAT Prior 9M10 year(1) CAT years 9M11 9M10 9M11 9M11 71.6 0.6 -2.9 69.4 9M10 73.2 2.1 -3.8 71.5 (1) Excluding natural catastrophes
Slide 22: III. Final Remarks
Agenda 22 III. Final Remarks Assicurazioni Generali Group – 9M 2011 results
Slide 23: Final remarks
III. FINAL REMARKS Final remarks 23 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 Assicurazioni Gener
Slide 24: IV. Backup
24 IV. Backup P&L and Balance Sheet Definitions Assicurazioni Generali Group – 9M 2011 results
Slide 25: IV. Backup
25 IV. Backup P&L and Balance Sheet Definitions Assicurazioni Generali Group – 9M 2011 results
Slide 26: 9M11 total gross written premiums
IV. BACK UP 9M11 total gross written premiums 26 (Euro m) Total Gross Written Premiums Gross Life Written Premiums(1) Gross P&C Written Premiums Country GWP ∆%(2) % weight GWP ∆%(2) % weight GWP ∆%(2) % weight Italy 13,862 -4.3% 27.0 8,887 -6.6% 17.3 4,975 +0.1% 9.7 France 10,517 -10.6% 20.5 7,336 -
Slide 27: Life Premiums by Country & Business Line
IV. BACK UP Life Premiums by Country & Business Line 27 Life 9M11 (Euro m) Savings and Unit/index protection linked Health Group Total Italy 84.4% 2.0% 0.0% 13.7% 8,673 France 69.0% 14.3% 9.4% 7.3% 7,176 Germany 50.0% 24.8% 18.4% 6.9% 9,850 CEE 62.7% 24.9% 11.0% 1.4% 1,269 RoE 34.3% 45.6% 5.0% 15.0%
Slide 28: P&C Premiums by Country & Business Line
IV. BACK UP P&C Premiums by Country & Business Line 28 P&C 9M11 (Euro m) Accident/ (1) Motor Health Personal Commercial Total Italy 48.8% 16.7% 11.8% 22.8% 4,916 France 29.4% 12.2% 36.9% 21.4% 2,971 Germany 39.7% 14.0% 37.4% 9.0% 2,497 CEE 45.9% 12.5% 15.8% 25.8% 1,695 RoE 37.8% 15.7% 22.8% 23.7% 3,
Slide 29: Life new business: APE
IV. BACK UP Life new business: APE 29 (Euro m) APE Annual Premiums Single Premiums Like for like Like for like Like for like 9M2010 9M2011 % 9M2010 9M2011 % 9M2010 9M2011 % 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 67
Slide 30: Life net inflows by country
IV. BACK UP Life net inflows by country 30 Country 9M10 9M11 Like for like ∆ Italy 1,543 544 -64.7% France 3,518 423 -88.0% Germany 3,760 2,868 -23.7% CEE 297 364 +19.7% RoE 2,304 1,199 -49.8% Of which: Spain (404) (146) +63.9% Austria 163 183 +12.0% Switzerland 375 357 -16.2% RoW 1,201 1,098 -7.1%
Slide 31: Ratios
IV. BACK UP Ratios 31 Life – Expense ratio (%) P&C – Combined ratio (%) 98.8% 96.6% Expense 27.3 ratio 27.2 Loss 10.4 11.3 71.5 69.4 ratio 9M10 9M11 9M10 9M11 Total – Expense ratio (%) 15.4 16.3 9M10 9M11 Assicurazioni Generali Group – 9M 2011 results
Slide 32: Ratios by country
IV. BACK UP Ratios by country 32 P&C ratios by ITA FRA GER CEE SPA AUT SWI Consolidated country (%) Loss ratio 9M11 75.7 72.0 66.3 54.9 67.0 68.5 70.7 69.4 9M10 77.6 71.7 66.5 63.8 70.6 68.2 70.2 71.5 Expense ratio 9M11 21.1 26.8 29.4 33.8 26.9 27.4 25.8 27.2 9M10 21.3 28.6 29.2 31.5 26.6 27.7 26.1
Slide 33: Combined ratio reconciliation
IV. BACK UP Combined ratio reconciliation 33 (Euro m) 9M10 9M11 A Net earned premiums (net of consolidation adjustments) 15,131 15,367 B Consolidated net claims 10,813 10,668 Consolidated acquisition costs 3,217 3,260 Consolidated administration costs 962 959 Non insurance activity related administr
Slide 34: Operating result by country
IV. BACK UP Operating result by country 34 Life operating result by market (Euro m) P&C operating result by market (Euro m) 9M10 9M11 9M10 9M11 Italy 1,004 933 -7.0% Italy 207 296 +43.1% France 362 208 -42.5% France 142 193 +36.3% Germany 262 238 -8.9% Germany 238 194 -18.3% CEE 136 110 -19.5% CEE 1
Slide 35: Reclassified P&L account
IV. BACK UP Reclassified P&L account 35 (Euro m) Total 9M10 9M11 Operating result 3,133 3,100 Net earned premiums 47,986 46,692 Net insurance benefits and claims (48,798) (39,040) Acquisition and administration costs (8,554) (8,609) Net fee and commission income and net income from financial service
Slide 36: Reclassified P&L account by segment – 9M 2010
IV. BACK UP Reclassified P&L account by segment – 9M 2010 36 Unallocated holding Consolidation (Euro m) Life Non life Financial(1) expenses adjustments Total Operating result 2,302 882 277 (204) (124) 3,133 Net earned premiums 32,855 15,131 0 - - 47,986 Net insurance benefits and claims (37,985) (10
Slide 37: Reclassified P&L account by segment – 9M 2011
IV. BACK UP Reclassified P&L account by segment – 9M 2011 37 Unallocated holding Consolidation (Euro m) Life Non life Financial(1) expenses adjustments Total Operating result 1,978 1,204 279 (214) (147) 3,100 Net earned premiums 31,324 15,367 0 - - 46,692 Net insurance benefits and claims (28,357) (
Slide 38: Evolution of Group impairment triggers for equities AFS (1/2)
IV. BACK UP Evolution of Group impairment triggers for equities AFS (1/2) 38 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 classifie
Slide 39: Evolution of Group impairment triggers for equities AFS (2/2)
IV. BACK UP Evolution of Group impairment triggers for equities AFS (2/2) 39 New impairment triggers applied Consumer Total Financial discretional Telecom Industrial Utilities Energy Others average Triggers 70% 37% 55% 51% 47% 59% 40% 50% Impacts on profit and loss due to the new triggers (1) (2) Ba
Slide 40: Focus on impairments
IV. BACK UP Focus on impairments(1) 40 (Euro m) Life P&C Financial Total 9M10 9M11 9M10 9M11 9M10 9M11 9M10 9M11 Net impairments Equity instruments 380 565 107 167 1 1 487 733 Fixed income 7 1,690 19 196 16 3 41 1,889 Real estate 60 22 5 (1) - - 65 21 Other investments(2) 15 319 164 133 8 8 187 459
Slide 41: Focus on realised gains
IV. BACK UP Focus on realised gains(1) 41 (Euro m) Life P&C Financial Total 9M10 9M11 9M10 9M11 9M10 9M11 9M10 9M11 Net realized gains Equity instruments 423 397 80 14 1 1 504 413 Fixed income 820 790 96 21 13 2 928 813 Real estate 42 73 77 73 - - 119 146 Other investments(2) 10 110 (7) (14) (1) 81
Slide 42: 9M11 Assets Under Management
IV. BACK UP 9M11 Assets Under Management 42 Total Euro 471.2 bn 98.9 Third parties AUM 56.8 Unit Linked Available for sale Loans Fixed income Other 59.3% 24.7% instruments 4.2% Real Estate 79.5% 4.2% Real Estate Group 4.9% participations 315.5 0.7% Equity Held to maturity 5.8% 1.4% Fin. Instr. at fa
Slide 43: Focus on Greece Sovereign exposure
IV. BACK UP Focus on Greece Sovereign exposure 43 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 pla
Slide 44: Portfolios exposure on Peripheral Europe
IV. BACK UP Portfolios exposure on Peripheral Europe 44 Exposure to peripheral Europe Government Bonds as at 30.09.2011 (Euro bn) Gross(1) Net(2) Portugal 3.0 0.5 Spain 5.7 2.2 Ireland 1.7 0.3 Greece(3) 1.2 0.2 Total 11.6 3.2 (1) Nominal value (2) Net of Policyholder’s participation and taxes, on go
Slide 45: Investment yields
IV. BACK UP Investment yields(1)(2) 45 Bonds and Loans Equities Investment Other Total properties % 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
Slide 46: IFRS Shareholders' equity roll forward
IV. BACK UP IFRS Shareholders’ equity roll forward 46 (Euro m) -8.0% 17,231 15,846 27 20 (1,304) (68) (59) Shareholders’ ∆ in AFS 3Q 2011 ∆ Currency ∆ Cash Flow Other Shareholders’ Equity 1H11 Reserve Net Result Translation Hedge Reserve Equity 9M11 Reserve Change in AFS reserve (Euro m) (532) (721)
Slide 47: Total comprehensive income
IV. BACK UP Total comprehensive income(1) 47 (Euro m) 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 +3,000 m 1,916 459 1,033 1,308 (644) 794 196 (245) 270 (178) 181 (1,326) (1,031) (505) (1,010) -3,000 m 1Q08 1H08 9M08 FY08 1Q09 1H09 9M09 FY09 1Q10 1H10 9M10 FY10 1Q11 1H
Slide 48: IV. Backup
48 IV. Backup P&L and Balance Sheet Definitions Assicurazioni Generali Group – 9M 2011 results
Slide 49: Definitions: P&L and balance sheet (1/3)
IV. BACK UP Definitions: P&L and balance sheet (1/3) 49 Annual Premium is defined as new business annualised regular premiums plus 10% of single premiums. Equivalent (APE) Life Net Inflows Premiums inflows in the period less benefits paid to the policyholders. It does not include revaluation of math
Slide 50: Definitions: P&L and balance sheet (2/3)
IV. BACK UP Definitions: P&L and balance sheet (2/3) 50 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 depos
Slide 51: Definitions: P&L and balance sheet (3/3)
IV. BACK UP Definitions: P&L and balance sheet (3/3) 51 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 equi
Slide 52: Investor Relations Team
Investor Relations Team 52 Paola Buratti (Tel.: +39-040-671157) Head of Investor Relations Email: paola_buratti@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.
Slide 53: Disclaimer
Disclaimer 53 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 54: Generali Group 9M 2011 Results
Generali Group 9M 2011 Results November 11, 2011
Assicurazioni Generali — 9M 2011 Earnings Presentation on 6ix