Assicurazioni Generali S.p.a. · MIL:G
Assicurazioni Generali — Investor Day (May 2015)
100 slides from Assicurazioni Generali's investor day presentation, May 27, 2015
Slide 1: Generali Investor Day
Generali Investor Day London – May 27, 2015
Slide 2: Agenda of the Day
2 Agenda of the Day 10:30 Mario Greco Page 3 Group CEO 11:00 Isabelle Conner Page 23 Group CMO 11:30 Carsten Schildknecht Page 48 Group COO 12:00 Lunch 13:30 Alberto Minali Page 71 Group CFO 14:00 Mario Greco – Closing remarks Group CEO 14:05 Q&A Session 15:30 END © Generali London May 27, 2015 Inv
Slide 3: Introductory remarks
Introductory remarks Mario Greco, Group Chief Executive Officer
Slide 4: Initial turnaround priorities delivered one year early
4 Initial turnaround priorities delivered one year early Organizational Head office established and matrix organization introduced and governance New Group Management Committee issues addressed New regional structure based on 3 main countries (Italy, Germany and France) and 4 regions (EMEA, CE
Slide 5: Our financial performance has been revived
5 Our financial performance has been revived Strong improvements in profitability, capitalization and dividends Key financial targets achieved one year ahead of plan 2011 2014 Operating RoE % 9.6 13.2 Solvency I % 117 164 Debt interest cover (x) 4.0 5.3 Dividend per share (€) 0.20 0.60 © General
Slide 6: Operating performance is strong, and in line or better than benchmarks
6 Operating performance is strong, and in line or better than benchmarks Life operating margins P&C combined ratio (Operating result in bps of average reserves) (%) 120 102% 100 100% 80 98% 60 96% 40 94% 20 92% 0 90% 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Generali Main peers Generali Main
Slide 7: Our capital position is solid
7 Our capital position is solid Internal Economic Capital Model Based on SII principles Further progress to be made December 2014 ratio at 186% Initial SII application will be on a partial perimeter © Generali London May 27, 2015 Inv estor Day
Slide 8: Since end of 2014 we started developing our new journey
8 Since end of 2014 we started developing our new journey Strategy and 3 year business plan developed 100% internally: Team of ≈ 40 young talents coming from the whole group Senior management steering 5 months of very exciting work © Generali London May 27, 2015 Inv estor Day
Slide 9: Our new strategy
9 Our new strategy Starting from a solid base… … we want to develop Retail 50 million customers in Europe Best insights on customers Leader Recognized leadership in the A distinctive brand in Europe European retail space Stronger relationship with distributors Strong partnerships with ou
Slide 10: And we will deliver by end 2018
10 And we will deliver by end 2018 > Euro 7 billion (vs. Euro 1.2 billion in 2014) of cumulative Net Operating Cash (2015-2018) > Euro 5 billion (vs. Euro 0.9 billion in 2014) of cumulative Dividends (2015-2018) Total Gross Expense Reductions of (i.e. additional 500 million vs. old plan) Euro 1.5 bi
Slide 11: The strategy builds on our strengths in retail
11 The strategy builds on our strengths in retail… A strong, European retail centred franchise, with powerful distribution Life Insurance Reserves (FY14, % of total) 11% Group business 89% Individual business ~90% of our business is retail/SME P&C gross premiums (FY14, % of total) Powerful distr
Slide 12: … and in Europe
12 … and in Europe Europe is the biggest insurance market … and in Europe Generali is positioned in the world… as market leader (% of worldwide premiums) 7 35 Other Europe Italy #1 28 Germany #2 Asia France #4(1) 30 North America CEE #3 …where today we already have strong (1) Of traditional players
Slide 13: Financial market and regulatory challenges are widely understood
13 Financial market and regulatory challenges are widely understood… Weak economic Ultra-low growth interest G-SII Fiscal / political risk rates Financial Solvency II market volatility Consumer protection Long-dated life ZZR guarantees © Generali London May 27, 2015 Inv estor Day
Slide 14: …but we also face a revolution in customer behaviour
14 …but we also face a revolution in customer behaviour Increasingly Decreasing loyalty demanding Demand for transparency customers Expectation for multi-access Dissatisfaction with “one size fits all” offerings Distribution Challenges in selling traditional products models Often mono-pr
Slide 15: Time for a revolution
15 Time for a revolution We have the scale to succeed We have a large customer base We have more data than anyone could dream of We are fast, agile, connected Euro 1.25 billion total It will be a new game on: New Chief Data investment by 2018 Officer position Customer service and loyal
Slide 16: All actions to generate more cash are embedded in the strategy
16 All actions to generate more cash are embedded in the strategy ...bringing Discipline, Simplicity and Focus to the task Build on success in selling distinct but strain-efficient life products Optimize life in-force cash generation Embed value added and fee based services into our offers Improve c
Slide 17: Restructuring of Italy is a remarkable success
17 Restructuring of Italy is a remarkable success From… …to Networks, 10 brands 3 brands brands and products Redundant and fragmented product Simple and best-practice offering among different companies based products (80 products, -70%) (270 products) Operations 3 platforms with 280 applic
Slide 18: Business results in Italy
18 Business results in Italy While deeply restructuring the business, Italy has consistently delivered outstanding results over the last 3 years: Operating results CoR GWP P&C Euro bn % Euro bn Life 2.1 96 6.0 1.6 1.4 92 6.8 6.2 89 17.4 12.3 13.3 2012 2013 2014 2012 2013 2014 2012 2013 2014 © Genera
Slide 19: Generali Deutschland will also begin a similar, radical reshaping
19 Generali Deutschland will also begin a similar, radical reshaping… Our German business is relevant for our results #2 8.8% €693m Market ranking Market share 2014 op. result Resilient performance Diversified distribution power AachenMunchener (AM) /DVAG most powerful sales network Cosmos u
Slide 20: …to become a simpler, leaner, customer focused organization
20 …to become a simpler, leaner, customer focused organization From… …to Business Multiple companies Organizational integration of the German Holding model & requiring heavy layer of with Generali Versicherungen and Generali Leben governance coordination Severe reduction of overhead functions
Slide 21: Cultural change is fundamental
21 Cultural change is fundamental Radical shift in mindset and culture required to deliver the change Performance Define new performance management and reward systems culture aligned to strategic objectives Redefine our competency model Customer Instill client oriented mindset throughout the o
Slide 22: Clear financial ambitions
22 Clear financial ambitions Cash & Net Operating Cash generation of Euro 7 billion in total by Dividends 2018 (Cumulative 2015-2018) Progressive, sustainable dividends, Euro 5 billion in total by 2018 Funding Maintain pace of gross cost savings at Euro 250 million, transformation cumulative e
Slide 23: Transforming a 184-year old brand into a 21st century retail leader
Transforming a 184-year old brand into a 21st century retail leader Isabelle M. Conner – Chief Marketing Officer
Slide 24: Becoming Retail leader means putting our Customers at the centre
Delighting our Customers to Deliv er Increased Persistency 24 Becoming Retail leader means putting our Customers at the centre Know their customers better than anyone else What it takes to become a Design seamless client Retail Leader? experiences Deliver consistently © Generali London May 27, 2015
Slide 25: The insurance industry is far from excellence in customer delight
Delighting our Customers to Deliv er Increased Persistency 25 The insurance industry is far from excellence in customer delight… % of respondents Very satisfied 12 15 13 Satisfied 19 Neutral 34 Unsatisfied 28 25 Very unsatisfied 44 34 35 30 38 22 26 20 10 21 14 9 5 12 15 4 5 8 Research Purchase Modi
Slide 26: Customers are frustrated
Delighting our Customers to Deliv er Increased Persistency 26 Customers are frustrated… The top painpoints are the same all across Europe 1. “Language is full of jargon” 2. “I don’t know exactly what’s covered” 3. “Too complex and difficult to understand” 4. “Slow and inflexible” 5. “Cold and distan
Slide 27: Industry churn rates are high
Delighting our Customers to Deliv er Increased Persistency 27 It’s no surprise customers are leaving – Industry churn rates are high ~20% Churn rate in European Insurance market © Generali London May 27, 2015 Inv estor Day
Slide 28: A virtuous cycle to deliver improved retention
Delighting our Customers to Deliv er Increased Persistency 28 A virtuous cycle to deliver improved retention, driving value and growth From a “vicious cycle”… …to a “virtuous cycle” High Churn High persistency Focus on products Focus on customer Scarce customer needs interaction Simpler and
Slide 29: LISTEN and ACT!
Delighting our Customers to Deliv er Increased Persistency 29 Our starting point: our large, existing customer base 72 Million Clients LISTEN and ACT! © Generali London May 27, 2015 Inv estor Day
Slide 30: Net Promoter Score categorises clients
Delighting our Customers to Deliv er Increased Persistency 30 Net Promoter Score helps us categorise our clients into promoters, passives and detractors 1 How likely would you be to recommend Generali to your friends, colleagues and family members? 2 …and why? Detractors Promoters tell us where conf
Slide 31: NPS is a mind-set shift
Delighting our Customers to Deliv er Increased Persistency 31 For us, NPS is not just a metric, it’s an approach NPS is a mind-set shift Key differentiators of NPS at Generali Local CEO Cross-functional ‘Closing the People Strategic is the driver team Loop’ link “What’s important Dedicated Cross-
Slide 32: Generali's Transactional NPS (T-NPS) in action
Delighting our Customers to Deliv er Increased Persistency 32 Generali's Transactional NPS (T-NPS) in action Customer has an Operational Customer completes experience with Closed Loop Medallia the survey Generali (1 on 1 calls) Triggers a Survey Invite E-Mail Alert Customer Customers have better exp
Slide 33: We have decisively rolled out the program since December 2014
Delighting our Customers to Deliv er Increased Persistency 33 We have decisively rolled out the program since December 2014 11.5million customers in scope 20 Touch points are live Purchase Motor Claims Agent France Call to support Non Payment Home Claims France Switzerland Purchase Claims Life Matur
Slide 34: Senior country leaders on the transformation
Delighting our Customers to Deliver Increased Persistency 34 We’ve embarked on a massive transformation, let’s hear from our senior country leaders © Generali London May 27, 2015 Inv estor Day
Slide 35: Examples of actions taken so far
Delighting our Customers to Deliver Increased Persistency 35 Examples of actions taken so far Claims & Renewal Action Problems with external repair services 1 Coaching external repair professionals on customer service Lack of info around premium increases 2 Improve customer information at renewal La
Slide 36: Delighted Customers bring substantial value
Delighting our Customers to Deliv er Increased Persistency 36 Delighted Customers bring substantial value Stay longer (higher retention) Buy more Less likely to shop around Are less price sensitive Refer Generali to others Increased retention = Higher profits, and more cash © Generali London May 27,
Slide 37: What do our customers demand?
Delighting our Customers to Deliv er Increased Persistency 37 Customers are clear about what they expect What do our customers demand? © Generali London May 27, 2015 Inv estor Day
Slide 38: Leading retail brands deliver consistently superior client experiences
Delighting our Customers to Deliv er Increased Persistency 38 Leading retail brands deliver consistently superior client experiences Today brands are ‘owned’ and shaped by customers © Generali London May 27, 2015 Inv estor Day Presentation Title
Slide 39: New, distinctive Brand Positioning: Simpler, Smarter
Delighting our Customers to Deliv er Increased Persistency 39 New, distinctive Brand Positioning to attract customers and differentiate AUTHENTIC RELEVANT DISTINCTIVE Company DNA Customer Needs Competitive Landscape Delivered Desired Differentiated by employees by clients on the market Simpler, Smar
Slide 40: Our new normal
Delighting our Customers to Deliver Increased Persistency 40 ‘Simpler, Smarter’ Our new normal © Generali London May 27, 2015 Inv estor Day
Slide 41: Simpler, Smarter experience: Consideration phase
Delighting our Customers to Deliv er Increased Persistency 41 Let’s look at a Simpler, Smarter life insurance experience starting with the ‘Consideration’ phase Recommendation from family/friends Find an agent on web or social/ Visit the website Simpler, Smarter Client Register my Experience needs R
Slide 42: The Purchase touchpoint
Delighting our Customers to Deliv er Increased Persistency 42 … followed by the ‘Purchase’ touchpoint - Single customer view - Instant pricing - Needs assessment tools CONTACT PREFERENCE Pre-arranged medical check Welcome call Simpler, Smarter Purchase Client Experience Simpler language Products tai
Slide 43: Simpler, Smarter Customer and Distributor Experience
43 We must deliver a “Simpler, Smarter” Customer and Distributor Experience at each touchpoint, product and channel Distributors Annual performance report - Needs re- assessment tools Annual performance report Agent visit & Maturity notice: Use New contracting Online reports Personalized next steps
Slide 44: Design a Simpler, Smarter Generali Mobile Experience
Delighting our Customers to Deliv er Increased Persistency 44 Design a Simpler, Smarter Generali Mobile Experience © Generali London May 27, 2015 Inv estor Day
Slide 45: Mobile for clients
Delighting our Customers to Deliv er Increased Persistency 45 1 For clients Connectivity e.g. Telematics, Vitality My Policies Easy Payment Claims Tracking Design Generali Mobile Framework © Generali London May 27, 2015 Inv estor Day
Slide 46: Mobile for distributors
Delighting our Customers to Deliv er Increased Persistency 46 2 And distributors Web and mobile Social media Clients ov erview Lead Generation tools © Generali London May 27, 2015 Inv estor Day
Slide 47: Conclusion – Transforming a 184-year old brand
Delighting our Customers to Deliv er Increased Persistency 47 Conclusion – Transforming a 184-year old brand into a 21st century retail leader Becoming a Retail Leader using data & insights to deliver on customer preferences listen and act upon customer feedback consistently deliver a seamless
Slide 48: Generali Operating Platform Strategy
Generali Operating Platform Strategy Carsten Schildknecht – Group Chief Operating Officer
Slide 49: Agenda
49 Agenda Journey and achievements to date Objectives and program going forward Financial benefits and investments Wrap-up © Generali London May 27, 2015 Inv estor Day
Slide 50: Strong progress along all strategic imperatives
Journey and achievements to date 50 Strong progress along all strategic imperatives “Client & distribution excellence” Value to clients and distribution partners Euro 1 bn gross savings by 2016 Best-in-class solutions "Securing execution for clients and & building distributors capabilities" Da
Slide 51: Fully on track to meet Euro 1 bn savings target
Journey and achievements to date 51 Fully on track to meet Euro 1 bn savings target Gross BSI 1 bn 1 bn cost savings 750 780 (Euro m) 520 500 2014 2014 2015 2015 2016 2016 Target Act. Target FC Target FC Cost-to-achieve 720 (cumulated – 570 640 550 cash view) 290 310 (Euro m) 2014 2014 2015 2015 201
Slide 52: Strong contribution from all functions and programs
Journey and achievements to date 52 Strong contribution from all functions and programs as originally planned Already achieved until 2014 Remaining until 2016 TOTAL 0.5 bn 0.5 bn 1 bn Core 1 95 220 Operations Support & 2 70 140 Corporate services 3 Information Systems 60 120 4 IT Infrastructure 60 1
Slide 53: Agenda
53 Agenda Journey and achievements to date Objectives and program going forward Financial benefits and investments Wrap-up © Generali London May 27, 2015 Inv estor Day
Slide 54: Strong cost focus complemented with client and commercial excellence
Objectives and program going forward 54 Strong cost focus to be complemented with client & distribution as well as commercial excellence “Client & distribution Build “smarter & simpler” excellence” operating platform for distribution and clients “Operational “Commercial excellence” excellence” Furth
Slide 55: Transformation scope expanded
Objectives and program going forward 55 Transformation scope expanded Manufacturing A Outside OPEX perimeter & Investments Operations Core 1 Operations Newly launched and realigned programs Support & 2 Corporate services 3 Information Systems Details to follow 4 IT Infrastructure Expand scope of exi
Slide 56: Group Unit Linked fund platform
Objectives and program going forward A Group Unit Linked fund platform: example of initiative Manufacturing & Investments supporting product & service strategy Operations Business Unit Business Unit Business ..... 1 2 Unit n Benefits Capturing higher share of overall revenue pool Support UL volu
Slide 57: Industrialization & digitalization in core operations
Objectives and program going forward 1 Industrialization & digitalization in core operations Core Insurance Operations Industrialization Digitalization Product & service Accessibility simplification Benefits “Smarter Structural optimization Connectivity & simpler” customer journey Process improvem
Slide 58: Global e-payment platform
Objectives and program going forward 2 Simplifying and streamlining payments Support & Corporate by creating a global e-payment platform Services State of the art payment solutions for clients and agents Benefits Enhance convenience for clients and distributors Automate and accelerate payment pr
Slide 59: Transformation of IT Systems
Objectives and program going forward 3 Transformation of IT Systems required Information Systems to accelerate digitalization and industrialization Change: Change: Change vs. Run Front- vs. Back-end Single- vs X-country X-country Front-end Change <5% 25% From… 35% X-country Front-end 40% 20% …to Cha
Slide 60: IT Systems program tailored to architecture landscape
Objectives and program going forward 3 IT Systems program tailored to the specific challenges Information Systems of the architecture landscape Corporate Distribution Marketing Portfolio Claims functions FRONT-END CORE BACK-END (e.g. digital access, distributor portals and (e.g. claims handling) (e.
Slide 61: Agenda
62 Agenda Journey and achievements to date Objectives and program going forward Financial benefits and investments Wrap-up © Generali London May 27, 2015 Inv estor Day
Slide 62: All programs deliver tangible savings
Financial benefits and investments 63 All programs deliver tangible savings Forecasted until 2015 (Gross savings, Euro m) To be delivered 2016-18 Original 2012-16 Expansion 2017-18 TOTAL 780 m 220 m 1 bn 530 m Core Insurance 1 Operations 220 150 Support & Corporate 2 Services 140 60 Total 3 Informat
Slide 63: Savings to fund inflation & business transformation
Financial benefits and investments 64 Savings to fund inflation & business transformation Expense development (2015-18) (Euro m) 6,300 750 450 6,300 300 2015 FC OPEX Inflation Investments in 2018 Target gross savings business transformation and growth © Generali London May 27, 2015 Inv estor Day
Slide 64: Incremental Euro 1.25 bn to be re-invested
Financial benefits and investments 65 Over the next three years an incremental Euro 1.25 bn to be re-invested to accelerate Generali’s business transformation Incremental cumulative funding Expected investments (2015-18) (examples) Gross savings after Euro 900 m Innovate product offering inflati
Slide 65: Agenda
66 Agenda Journey and achievements to date Objectives and program going forward Financial benefits and investments Wrap-up © Generali London May 27, 2015 Inv estor Day
Slide 66: Key take aways
Wrap-up 67 Key take aways Fully on track to deliver vs the November 2013 ID targets: Euro 0.5 bn savings already delivered by YE 2014 Euro 1 bn savings target confirmed for 2016 Execution of operating platform strategy and transformation programs Strategy and program focus shifting towards
Slide 67: Thank you
A. GENERALI Thank you
Slide 68: Gross savings and CTA split by year
Financial benefits and investments 69 Gross savings and CTA split by year Incremental Already cumulated Original Gross Savings 2012-15 FC 2016 FC 2017 Plan 2018 Plan programs 1,000 1,000 1,000 780 220 0.6 780 CTA – cumulated (cash) 570 640 640 640 Expansion Gross Savings 530 until 2018 280 250 0.7 3
Slide 69: Incremental funding for business transformation by source and year
Financial benefits and investments 70 Incremental funding for business transformation by source and year (Euro m) 450 300 Gross savings after inflation 150 200 Re-direction of 100 discretionary/ IT change 50 Existing 2016 2017 2018 Incremental funding Per year 200 400 650 Cumulative 200 600 1,250 ©
Slide 70: Focus on Cash & Capital
Focus on Cash & Capital Alberto Minali, Group Chief Financial Officer
Slide 71: Agenda
72 Agenda External environment Solvency II & Capitalisation Cash generation & dividends Operating RoE Concluding remarks © Generali London May 27, 2015 Inv estor Day
Slide 72: The external environment remains challenging
External env ironment 73 The external environment remains challenging Government bond yields (10 Year, %) 7 Compression of interest rates and spreads 6 Weak economic growth in Europe 5 (though still substantial wealth) 4 Regulatory challenges 3 2 Consumers 1 Taxes 0 Competitive pressures
Slide 73: Low yields are pressuring investment returns
External env ironment 74 Low yields are pressuring investment returns… Life fixed income yields P&C fixed income yields (%) (%) 4.2 3.9 3.7 3.6 3.5 3.4 3.2 3.0 3.7 3.6 3.2 3.1 2.9 2.5 2.5 2.1 2012 2013 2014 Q1 2015 2012 2013 2014 Q1 2015 Gross current yield Reinvestment rate Current yields falling
Slide 74: Substantial stock of unrealised gains
External env ironment 75 … but they have generated a substantial stock of unrealised gains On balance sheet URGs: Euro 35.9 bn Off balance sheet URGs: Euro 12.3 bn (FY14, Euro bn, gross) (FY14, Euro bn, gross) 1.0 1.6 6.8 33.3 Total gross 5.4 URGs: €48.2bn Bonds Equities Other (incl Real estate Loan
Slide 75: Agenda
76 Agenda External environment Solvency II & Capitalisation Cash generation & dividends Operating RoE Concluding remarks © Generali London May 27, 2015 Inv estor Day
Slide 76: Internal Capital Model - Update
Solv ency II & Capitalisation 77 Internal Capital Model - Update Current New Internal Model fully running and producing results as at FY14 status Available capital: Based on eligible own funds compliant with the latest Solvency II regulations Risk capital: Moved to a Full Loss Distribution Mod
Slide 77: Pro-forma internal model economic capital ratio 186%
Solv ency II & Capitalisation 78 Our new Internal Model is running, and shows us to be well capitalised Pro-forma internal model economic capital ratio 186% on new model as at 31 December 2014 (vs. 157% under old model) Impact Main areas of difference on Ratio Key market sensitivities Full allowance
Slide 78: Solvency II progress
Solv ency II & Capitalisation 79 Solvency II progress Initially, we will have partial internal model approval: Some country units will not be in the perimeter of the approved Internal Model, and instead use Standard Formula. Regulatory approval for Operational Risk under Internal Model will co
Slide 79: Debt leverage
Solv ency II & Capitalisation 80 Debt leverage Financial leverage evolution Reduction of Senior debt stock Leverage ratio, % 1.0%pt pre- by Euro 1.5 bn: 42.4 42.4 financing of Euro 1 bn of net reduction 2015 41.6 maturities Euro 500 m switched into 40.4 subordinated debt, improving Average: 39
Slide 80: Agenda
81 Agenda External environment Solvency II & Capitalisation Cash generation & dividends Operating RoE Concluding remarks © Generali London May 27, 2015 Inv estor Day
Slide 81: Cash is the biggest constraint to dividend growth
Cash generation & div idends 82 Cash is the biggest constraint to dividend growth Our strategic actions are therefore focused on increasing cash generation 2014 dividend payout (Euro 0.60 per share) is … 186 % €2.1bn €1.2bn 5% pts 45% 78% Internal Model Economic Adjusted Net Profit Net Cash Capital
Slide 82: Group Cash Flow
Cash generation & div idends 83 Group Cash Flow Reminder of 2014 generation by country (Euro bn) Gross expected Remitted free surplus cash Euro 1.2 bn of cash Italy 0.8 0.9 in 2014 + + Remain on track to reach ambition of Germany 0.5 0.3 Euro 1.5 bn cash in 2015 + + France 0.2 0.0 Stability ex
Slide 83: Increasing distributable profits at business unit level
Cash generation & div idends 84 Fundamental to increasing cash, is increasing distributable profits at business unit level Gross expected free FY14 New business strain Euro 1.5 bn surplus by source (Euro bn) Life inforce surplus generation 2.9 50/50 split of Life vs. Other sources of free Life new b
Slide 84: New business: clear economic benefits of shifting mix
Cash generation & div idends 85 New business: Clear economic benefits of shifting mix Protection & unit linked: Higher profitability and shorter payback than traditional savings 14 Least attractive Savings France Protection 12 Unit Linked France EMEA Size of bubble = FY14 Payback Period (FY14, years
Slide 85: Business mix is already moving significantly
Cash generation & div idends 86 Business mix is already moving significantly While guarantees on new traditional savings business continue to be reduced Life Insurance net inflows (FY14, %) Net inflows already biased towards 25% unit linked and protection Protection FY14 Total 53% Net inflows of
Slide 86: A case in point – Managing new business in Italy
Cash generation & div idends 87 A case in point – Managing new business in Italy Steps taken in Italy: Italian life new business profitability and strain (€m) Launch of hybrid products (e.g. Valore Futuro, Stile Libero, YellowLife) 641 2013 2014 Ongoing reduction in guarantees for traditional po
Slide 87: Life in-force free surplus generation: key levers
Cash generation & div idends 88 Life in-force free surplus generation: key levers Examples of available strategic actions to optimise in-force business Examples of initiatives Customers Surrenders & Surrender management through segmentation and data maturities analytics (FY14, B€) Refine maturit
Slide 88: Strategic actions in P&C to generate further operating results and cash
Cash generation & div idends 89 Strategic actions in P&C to generate further operating results and cash Examples of initiatives Customers Operating result Increase retention impact of 1 p.p. Simpler, smarter propositions retention Value added products & services >€20m Improved customer knowl
Slide 89: Indicative path to Euro 7 bn of net operating cash 2015-2018
Cash generation & div idends 90 Indicative path to Euro 7 bn of net operating cash 2015-2018 Strategic initiatives will much more than offset expected negative external pressures (inflation, lower investment returns, weakening P&C pricing) Additional upside to cash from improving remittance Euro
Slide 90: Agenda
91 Agenda External environment Solvency II & Capitalisation Cash generation & dividends Operating RoE Concluding remarks © Generali London May 27, 2015 Inv estor Day
Slide 91: Operating RoE
Operating RoE 92 We have a cash focus, but remain committed to our Operating RoE target… …despite significantly lower interest rates Operating ROE, rolling average trend 1 (%) 14 2.50 Improvement in operating Operating RoE Target 13% performance has moved 13 2.00 Operating RoE into our target 12 r
Slide 92: Internal actions to counter external pressures on Operating RoE
Operating RoE 93 Internal actions to counter external pressures on Operating RoE Positive factors Negative factors Life P&C Life P&C Cost saving and operational initiatives Falling investment returns Lack of underlying economic growth Strategic actions to boost retention (though still su
Slide 93: Agenda
94 Agenda External environment Solvency II & Capitalisation Cash generation & dividends Operating RoE Concluding remarks © Generali London May 27, 2015 Inv estor Day
Slide 94: Our targets – Summary of what we aim to achieve
Concluding remarks 95 Our targets – Summary of what we aim to achieve We are well positioned Excellent operating performance in both Life and P&C Well capitalised: FY14 Internal model economic capital ratio at 186% Identified strategic priorities for financial performance Clear product and bus
Slide 95: Summary of new financial targets
Concluding remarks 96 Summary of new financial targets Net Operating Euro >7 bn (cumulative 2015-2018) Cash generation Dividends Euro >5 bn (cumulative 2015-2018) Costs Further Euro 0.5bn gross savings to reach Euro 1.5bn by 2018 © Generali London May 27, 2015 Inv estor Day
Slide 96: Disclaimer
97 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 97: Next events
98 Next events 30 July 2015 1H 2015 results reporting 5 November 2015 9M 2015 results reporting © Generali London May 27, 2015 Inv estor Day
Slide 98: Investor Relations Team
99 Team Spencer Horgan Marta Porczynska Head of Investor & Rating Agency Relations Team Assistant & Event Manager Spencer.Horgan@Generali.com Marta.Porczynska@Generali.com +44 20 7265 6480 +39 040 671402 Stefano Burrino Martina Vono Senior IR Manager Team Assistant & Event Manager Stefano.Burrino@Ge
Slide 99: Thank you
A. GENERALI Thank you
Slide 100: Generali Investor Day
Generali Investor Day London – May 27, 2015