Assicurazioni Generali S.p.a. · MIL:G

Assicurazioni Generali — Investor Day (November 2013)

105 slides from Assicurazioni Generali's investor day presentation, Nov 27, 2013

Slide 2: Agenda of the Day
2 Agenda of the Day Time Speaker Page 10:00 M. Greco Reshaping Generali: discipline, simplicity and focus 3 10:20 N. Srinivasan Generali Investment Management: our pathway to excellence 10 10:50 Coffee break 11:10 C. Schildknecht Generali Operating Platform Strategy (GeOPS) 40 11:50 Morning Q&A sess
Slide 3: Reshaping Generali: discipline, simplicity and focus
3 Reshaping Generali: discipline, simplicity and focus Mario Greco, Group Chief Executive Officer © Generali London November 27, 2013 Investor Day
Slide 4: A revolution of discipline, simplicity and focus
4 A revolution of discipline, simplicity and focus The reshaping of Generali is proceeding at a rapid pace Key Promises Delivery status  60% of disposal target already € 4.0bn of Asset Disposals achieved  Minority acquisitions in core units Clear focus on core insurance business  Investment revie
Slide 5: A truly global business
5 A truly global business Germany France EMEA CEE LatAm Asia 3 visits 4 visits >10 visits 7 visits 3 visits 7 visits 29% of Group’s 18% of Group’s 16% of Group’s 5% of Group’s premiums 2% of Group’s premiums 2% of Group’s premiums premiums premiums One of the leading insurers, One of the leading for
Slide 6: A top-tier international management team is now fully operational
6 A top-tier international management team is now fully operational An international team better reflecting the profile of our group Group Management Committee Group CEO – M. Greco Functional Heads Regional Heads CinsO CFO CRO Germany France Balbinot Minali Panizza Meister Lombard Global CIO COO Ita
Slide 7: Focus on core business
7 Focus on core business Disposal process is well advanced with over €2.4billion achieved Exit Closing Proceeds Solvency 1 Operation multiple Date (€ bn) impact (historic) Migdal 4Q12 0.7 17x +2%pts. Banca Generali (12% placement) 2Q13 0.2 12x +1%pts. Generali USA Life Re 4Q13 0.7 15x +1%pts. Mexico
Slide 8: Focus on core business
8 Focus on core business We have removed complexity from our balance sheet ending an era of shareholder pacts Shareholder pact Exit Date Gemina April 2013 Prelios May 2013 NTV June 2013 September 2013 Telco (first part) Mediobanca September 2013 Agorà (SAVE) October 2013 RCS October 2013 Pirelli Nov
Slide 9: Reshaping Generali: a focus on costs, investments and operations
9 Reshaping Generali: a focus on costs, investments and operations Clear plans for delivering a reduced cost base, a more focused investment strategy and greater operational efficiency to drive profitability Target for Operating Operating RoE targetRoE Confirmed confirmed 13% 13% by by 2015 2015 I
Slide 10: Generali Investment Management: our pathway to excellence
Generali Investment Management: our pathway to excellence Nikhil Srinivasan, Group Chief Investment Officer © Generali London November 27, 2013 Investor Day
Slide 11: Key messages
41_84 80_84 103_84 104_84 114_84 120_84 123_84 124_84 11 Investment, Governance Key messages  € 497 bn high quality  Leadership team in place assets, conservatively invested  Cash being reduced.  Moving towards a more Portfolio being centralized structure with rationalized a clear value chain 
Slide 12: Agenda
12 Agenda - Where we started: investment portfolio and governance model Page 13 - Our direction: Page 23 a. Vision Page 23 b. Investment strategy Page 25 c. New Governance and Operational Model Page 32 - Closing remarks Page 39 © Generali London November 27, 2013 Investor Day
Slide 13: Where we started
13 Where we started Investment portfolio and governance model © Generali London November 27, 2013 Investor Day
Slide 14: 9M13 Investment portfolio: €497 bn AUM
14 Where we started 9M13 Investment portfolio: € 497 bn AUM Total portfolio Breakdown by region and asset class By Region(1) By Asset Class(1) (1) Data refers to Life and P&C portfolio only. © Generali London November 27, 2013 Investor Day
Slide 15: Asset allocation similar to peers
15 Where we started Asset allocation similar to peers Others(3) Cash & cash equivalent Real estate  Asset allocation in line with our main peers  Exposure to high quality real estate Fixed income investments  High exposure to cash Equity(4) (1) (2) (2) (1) Asset Allocation at IFRS Value. Data ref
Slide 16: Fixed Income Portfolio
16 Where we started Fixed Income Portfolio(1) Total Portfolio € 266 bn Bond duration FY12 9M13 Life 6.7 7.3 P&C 3.7 4.0 Life duration Gap FY12 9M13 (1) Data refers to Life and P&C Portfolio only. 2.05 1.48 (2) Italian government bond exposure is 87% of BBB © Generali London November 27, 2013 Investo
Slide 17: Equity & Equity-like
17 Where we started Equity & Equity-like(1) Total portfolio (€ 16.6 bn) Alternatives (€ 2.8 bn) Equity (€ 9.7 bn) Life and Life and P&C P&C Equity Funds (€ 4.1 bn) Life and Listed and P&C Unlisted (1) Data refers to Life and P&C Portfolio only. © Generali London November 27, 2013 Investor Day
Slide 18: Asset Allocation: Real Estate as of 9M13
18 Where we started Asset Allocation: Real Estate (1) as of 9M13 Real Estate (€ 24.5 bn) Examples of 2013 investments City Location 24 Place d’Opera Retail/Office building in Place de L’Opera Paris (France) 40 ter Avenue de Suffren Retail building Lindencorso Berlin Retail/office/residential buildin
Slide 19: Consistent investment returns despite market volatility
19 Where we started Consistent investment returns despite market volatility (1) Current yield is defined as current income on total investments at IFRS Value, net of investment related expenses. (2) Annualized (3) Data refers to Life and P&C Portfolio only. © Generali London November 27, 2013 Invest
Slide 20: Investment portfolio: the main opportunities we identified
20 Where we started Investment portfolio: the main opportunities we identified Summary of diagnostic Identified improvement areas (…being addressed)  High proportion of cash and Italian government bonds  High exposure to financials Conservative investments,  High exposure to unlisted investments
Slide 21: Investment governance: decentralized and with local processes
21 Where we started Investment governance: decentralized and with local processes Decentralized investment governance Room for operating process harmonization  Different local organization structures and Corporate practices center  Limited group guidance (locally managed ALM)  Diverse mandates ac
Slide 22: However, AM rationalization had already started
22 Where we started However, AM rationalization had already started Generali Investments Europe and Generali Real Estate Excellent cost position Generali Investments Europe (GIE) Cost advantage over comparable  Set up in 2012 to consolidate public market investments in Europe insurance captive inve
Slide 24: Our vision and direction
24 Our direction Our vision and direction Our vision  ‘A world-class liability-driven investor...  Maximizing risk-adjusted investment return...  Executing through centralized investment process and specialized global implementation…  Running a cost-efficient model of primarily European Fixed In
Slide 26: The investment environment will remain challenging
26 Our direction The investment environment will remain challenging German, French and Italian bonds 10-year Yield (% p.a.)  Yields fallen to extreme lows, and are expected to remain low in the medium term  Risks and volatility increasing Euro Area Peripherals spread (bps)  Regulatory environment
Slide 27: Investment strategy
27 Our direction Investment strategy Portfolio Asset class strategy Portfolio action  Expansion in European private placement markets. Direct Fixed Income investments in loans with partners Fixed income  Increase secured credit exposure (e.g. commercial mortgage lending, securities lending, covere
Slide 28: Reduction of cash and Italian government bond exposure
28 Our direction Reduction of cash(1) and Italian government bond exposure  Total cash has been reduced by €10 bn in 2013 (-45%)  Cash target is €11 bn by year end  Gradual diversification out of Italian government bonds  Italian government bond exposure represents 57% of Italian liabilities. 
Slide 29: Replacement of unprofitable assets
29 Our direction Replacement of unprofitable assets Private Equity Unlisted Equity Funds  Total assets of € 2.1 bn  Total assets of € 1.6 bn  Total assets of € 18.1 bn (of which € 4.1 bn of equity  Individual investments  Individual investments funds and € 14.0 bn of mapped, under-performing be
Slide 30: Illustration: Private Equity
30 Our direction Illustration: Private Equity Where we started Our direction  Too many funds  Centralized team and process  Europe is 70% of portfolio  New investments to be geographically / sectorially diversified  Very low IRR (4%)  Target is double digit IRR  Highly - compensated external
Slide 31: Exposure to new asset classes: Senior Loans
31 Our direction Exposure to new asset classes : Senior Loans Loans Risk Return Our approach, ambition, and progress  Ongoing bank re-trenching process creating structural funding gaps across Europe. Institutional investors expected to substantially fill those gaps.  Primary investment spots: CRE
Slide 32: New Governance and Operational Model
32 Our direction New Governance and Operational Model © Generali London November 27, 2013 Investor Day
Slide 33: Investment Governance & organization: main initiatives and results
33 Our direction Investment Governance & organization: main initiatives and results Area Main results to date Governance  The Board has given a green-light to a project to consider centralisation of investment activities in GIM (Generali Investment Management)  GIE (Generali Investments Europe) fu
Slide 34: New investment governance project
34 Our direction New investment governance project From... ...To Key benefits  Clear separation of investment Corporate Corporate management from asset center center management  Professionalized IM decisions, in line with the best industry standards Countries Countries  Clearer investment roles a
Slide 35: Generali Investment Management (GIM) organizational setup
35 Our direction Generali Investment Management (GIM) organizational setup Efficient organization and new high-caliber leadership team to enable transformation  Value chain centralized and clear separation between Investment and Asset Management  Pivotal roles assigned through external hire with r
Slide 36: Group Asset Liability Management (ALM)
36 Our direction Group Asset Liability Management (ALM) Inputs Constraints Outcome Liabilities  Cash flow profile  Minimum guarantees  Profit-sharing rules  Duration Optimal asset allocation Economic scenarios  Capital budget and based on  Interest rates risk appetite  Economic risk/return 
Slide 37: 2-year industrial transformation roadmap
37 Our direction 2-year industrial transformation roadmap 1 2 2013 3 4 5 1 2 2014 3 4 5 1 2 2015 3 4 5 Governance  Investment Committees in main markets  Regulatory approval in main markets Organization  New roles, KPIs, procedures  New hires and internal transfers Investment process & Ops  Har
Slide 39: Closing remarks
39 Closing Remarks Closing remarks  ‘A world-class liability-driven investor...  Maximizing risk-adjusted investment return... Our vision  Executing through centralized investment process and specialized global implementation… P ursue excellence  Running a cost-efficient model on European FI and
Slide 40: Generali Operating Platform Strategy (GeOPS)
Generali Operating Platform Strategy (GeOPS) Carsten Schildknecht, Group Chief Operating Officer © Generali London November 27, 2013 Investor Day
Slide 41: Agenda
41 Agenda - Trends and strategic imperatives Page 42 - Delivering operational excellence Page 47 - Enabling client & distribution and commercial excellence Page 60 - Securing execution and building capabilities Page 65 - Wrap-up Page 69 © Generali London November 27, 2013 Investor Day
Slide 42: Trends and strategic imperatives
42 Trends and strategic imperatives © Generali London November 27, 2013 Investor Day
Slide 43: Key trends will fundamentally change the industry
43 Trends and strategic imperatives Key trends will fundamentally change the industry ... Key trends Challenging macroeconomic Change in customer behavior Increasing sophistication of and regulatory environment and distribution channels product design and delivery Online sales of high-tech & Global
Slide 44: ... with clear implications for insurers
44 Trends and strategic imperatives ... with clear implications for insurers Key trends Challenging Change in customer Increasing sophistication macroeconomic and behavior and of product design regulatory environment distribution channels and delivery ▪ Pressures on margins and ▪ Need to modularize
Slide 45: Generali's strategic imperatives for the operating platform
45 Trends and strategic imperatives Generali's strategic imperatives for the operating platform Value to clients and distribution partners “Client & distribution excellence” Discipline, focus & simplicity "Securing execution & building Efficiency Business insights capabilities" & cost reduction & de
Slide 46: Strategic imperatives guide the improvement of Generali's operating platform
46 Trends and strategic imperatives Strategic imperatives guide the improvement of Generali's operating platform Strategic imperatives Key elements for target operating platform  Industrialize processes and operating structure Efficiency and cost reduction  Increase flexibility and standardization
Slide 47: Delivering operational excellence
47 Delivering operational excellence © Generali London November 27, 2013 Investor Day
Slide 48: Our aspiration for Operational Excellence by 2016
48 Delivering operational excellence Our aspiration for Operational Excellence by 2016 “Operational excellence” Deliver gross savings of € 1 bn and achieve best-in-class expense ratios Target by 2016 €m P&C and others Life 600 400 Gross(1) cost savings Total of € 1,000 m savings  Competitive advant
Slide 49: Generali operations at a glance
49 Delivering operational excellence Generali operations at a glance “Operational excellence” A truly global footprint with differentiated requirements across platforms Operating platforms Clusters Examples Mature  Italy  Spain Generali operations: key facts  Germany  Switzerland markets  Franc
Slide 50: 2 wave program to deliver operational excellence
50 Delivering operational excellence 2 wave program to deliver operational excellence “Operational excellence” Additional programs  Targeted at structural changes and strategic cost position  To be launched as global programs with medium-term delivery OPEX program  Targeted at efficiency and expe
Slide 51: We have expanded the scope for OPEX, reaching a 2012 baseline of €6.9 bn
51 Delivering operational excellence We have expanded the scope for OPEX, reaching a 2012 baseline of € 6.9 bn .... “Operational excellence” Cost baseline 2012 € bn ▪ Administration and acquisition costs(1) € 4.8 bn ▪ Other expenses(2) € 1.1 bn ▪ Unallocated loss adjustment expenses(3) Jan 2013 Revi
Slide 52: ... and target gross savings equal to €1 bn by 2016
52 Delivering operational excellence ... and target gross savings equal to € 1 bn by 2016 “Operational excellence” Target gross savings(1) €m ▪ ~120 1,000 initiatives grouped in 9 750 400 programs 600 ongoing Life 300 ▪ 20% of savings captured by P&C and 600 450 YE 2013 others ▪ Initiatives launched
Slide 53: 9 programs launched to deliver OPEX
53 Delivering operational excellence 9 programs launched to deliver OPEX “Operational excellence” Gross savings(1) Breakdown of run-rate savings by program (€ m, percent of baseline) Total 1,000 Sales Support 150 Claims Management 40 Operations 100 Corporate Functions 130 Costs to achieve Premises &
Slide 54: All OPEX programs to be monitored with operational scorecard
54 Delivering operational excellence All OPEX programs to be monitored with operational scorecard “Operational excellence” Programs Key levers/actions Examples of key metrics to measure progress Sales Support  Process improvement ▪ Cost/claim, cost/application, cost/in-force policy  Increase of au
Slide 55: Premises & Facility Management
55 Delivering operational excellence Premises & Facility Management “Operational excellence” Local best practices to be rolled out across the Group Key Example: site consolidation in Paris dimensions From… …to Office buildings 26 buildings all over Paris 1 major site Benefits Off-prime location with
Slide 56: Information Systems
56 Delivering operational excellence Information Systems “Operational Benefits through streamlining of application landscape, improved sourcing excellence” as well as application sharing Key From… …to dimensions High number of redundant Largely redundant-free application Application applications acr
Slide 57: IT Infrastructure
57 Delivering operational excellence IT Infrastructure “Operational excellence” Consolidation, centralization and standardization are currently underway Key From… …to dimensions 12 data centers in Europe 2 specialized data center sites Consolidation in Mogliano (Open Systems) and of Aachen (Mainfram
Slide 58: Procurement
58 Delivering operational excellence Procurement “Operational excellence” Optimization through centralized supplier management and expanded scope Spend categories From… …to Many suppliers across Europe 2-3 pan-European suppliers of Premises & Facility and no bundling of facility services facility ma
Slide 59: Additional programs to be launched in the medium term
59 Delivering operational excellence Additional programs to be launched in the medium term to further optimize the operating platform “Operational excellence” Medium term: additional programs  Simplification of offerings (particularly in smaller markets) Mature markets:  Lean management, straight-
Slide 60: Enabling client & distribution and commercial excellence
60 Enabling client & distribution and commercial excellence © Generali London November 27, 2013 Investor Day
Slide 61: Development path designed to build distinctive capabilities and technical assets
61 Enabling client & distribution and commercial excellence Development path designed to build distinctive capabilities and technical assets “Client & Distribution and Commercial excellence” Programs Immediate focus… …next stage of development All channels supported with state- Frontend(s) & …fully
Slide 62: CosmosDirekt
62 Enabling client & distribution and commercial excellence CosmosDirekt “Client & distribution excellence” Superior customer experience based on smart technology solution Easy to use, fast and Personal advice and Transparent and customer-tailored service when needed "tangible" ▪ Simple and customiz
Slide 63: Proama
63 Enabling client & distribution and commercial excellence Proama “Client & distribution excellence” Excellence in broker management through extensive use of technology Digitalized processes Sophisticated pricing Data-driven marketing  As first Polish insurer  Multidimensional & new risk  Advanc
Slide 64: Generali Spain
64 Enabling client & distribution and commercial excellence Generali Spain “Commercial excellence” Enhanced pricing and customer service through Telematics Advanced pricing Data-enabled support Transparency and and premium adjustment and fraud prevention customer service Premium vs. driving style 20
Slide 65: Securing execution and building capabilities
65 Securing execution and building capabilities © Generali London November 27, 2013 Investor Day
Slide 66: 4 initiatives to secure execution and build capabilities
66 Securing execution and building capabilities 4 initiatives to secure execution and build capabilities 1 Establish management team and governance 2 Build COO functional capabilities 3 Attract and develop top talent Align and mobilize 4 organization © Generali London November 27, 2013 Investor Day
Slide 67: Group Operating Committee
67 Securing execution and building capabilities 1 Group Operating Committee A key mechanism to transform operating platform Group Operating Committee Group COO – C. Schildknecht BU COOs COO Functional Heads COO COO COO Information IT Italy Germany France Systems Infrastructure Operations & Premises
Slide 68: Transformation supported by capability building, talent management and mobilization
68 Securing execution and building capabilities Transformation supported by capability building, talent management and broad mobilization 2 Functional capabilities 3 Talent management 4 Mobilization  Introduce consistent COO  Attract and develop  Develop and spread a organization across top-tier
Slide 70: Re-engineered operating platform will position Generali for profitable growth
70 Wrap-up Re-engineered operating platform will position Generali for profitable growth Strategic imperatives Strategic answers  OPEX program up and running, targeting € 1 bn cost savings in 2016 “Operational Efficiency and – € 200 m already captured in 2013 excellence” cost reduction – Initiative
Slide 71: Securing our targets
Securing our targets Alberto Minali, Group Chief Financial Officer © Generali London November 27, 2013 Investor Day
Slide 72: Agenda
72 Agenda - Target framework and external backdrop Page 73 - Focus on returns Page 77 - Cash flow Page 84 - Capital Page 87 - Debt leverage Page 92 - Key takeaways Page 96 © Generali London November 27, 2013 Investor Day
Slide 73: Target framework and external backdrop
73 Target framework and external backdrop © Generali London November 27, 2013 Investor Day
Slide 74: We confirm or enhance our key 2015 targets
74 Target framework and external backdrop We confirm or enhance our key 2015 targets Enhance profitability Key  Cost savings (Op Ex) Ongoing projects Profitability (expected combined benefit  Technical Excellence(1) by 2015: ~ €1.6bn(2)) Levers Free cash Expected net free surplus  > € 2 bn Confi
Slide 75: Quarterly business review process
75 Target framework and external backdrop Quarterly business review process A tight process to manage delivery of our targets is critical… A new toolkit designed to assign and manage Country delivery of our strategic and financial targets: CFO COO CEO Quarterly deep-dive: & local team  Every major
Slide 76: The external backdrop
76 Target framework and external backdrop The external backdrop …against a still very challenging backdrop Low reinvestment rates endure Economic growth remains elusive (Germany & Italy 10 Yr Govt Yield) Euroland GDP, QoQ %  “Risk free”  Economic growth remains remains very depressed weak in Europ
Slide 78: Operating RoE is our key target
78 Focus on returns Operating RoE is our key target Returns Targets Cash flow Capital RoE is our key target: Cross-cycle >13% to be achieved by 2015 Leverage The macro environment and the need for stronger capitalisation will weigh on returns… Expense inflation, likely weakening in some insurance m
Slide 79: Operational and Technical excellence
79 Focus on returns Operational and Technical excellence Returns Targets Cash flow Capital COO and CInsO initiatives are the bedrock of our profit improvement targets Leverage Expected benefits by Sources of improvement 2015 (1) €0.8 bn As detailed by our COO today P&C Claims Distribution & Life in-
Slide 80: Further initiatives: Group P&C Reinsurance Strategy
80 Focus on returns Further initiatives: Group P&C Reinsurance Strategy Returns Targets Cash flow Capital Consolidation of Treaty, Optimization of Facultative Leverage New Reinsurance Model implemented in 2013 Key benefits Treaty  Capitalise on the Group’s diversification, scale, Treaty reinsuranc
Slide 81: Further initiatives: Group P&C Reinsurance Strategy - catastrophe protection
81 Focus on returns Further initiatives: Group P&C Reinsurance Strategy Returns Targets Cash flow Capital Catastrophe protection Leverage Natural Events Group Cat Programme Natural Events 2013 Key Exposures at 1:250 years return 2013 Group Cat Programme per-event (€ m) period (OEP, € bn, gross) Rete
Slide 82: Further initiatives: Group Treasury Program
82 Focus on returns Further initiatives: Group Treasury Program Returns Targets Cash flow Capital The Group’s substantial liquidity (€ 12.2 bn(1)) can be significantly better managed Leverage through an integrated approach Group Treasury Framework Advantages Collection Concentration Management  Cas
Slide 83: Further initiatives: Group Treasury Program benefits
83 Focus on returns Further initiatives: Group Treasury Program Returns Targets Cash flow Capital Expected benefits to earnings, leverage, governance, and risk control Leverage  Surplus cash above operating requirements can contribute to de- Balance Sheet leveraging Optimization & Yield Enhancement
Slide 85: Group Free Cash Flow
85 Focus on cash flow Group Free Cash Flow Returns Targets Cash flow Capital Our cashflow management framework Leverage Head Office Business Units Capital budgeting process is a Specific BU dividend target fundamental part of the Group taking into account: Planning activity: FCF generation Earning
Slide 86: 2015 Group Free Cash Flow
86 Focus on cash flow 2015 Group Free Cash Flow Returns Targets Cash flow Capital We focus on turning “Free surplus” into real cash Leverage From expected surplus to remitted cash (€ bn)  On track to deliver 2015 expected free ~ 3.0 surplus generation > € 2 bn: Remitted to ~ 2.25 2015 expected free
Slide 88: Capital management at Generali
88 Focus on capital Capital management at Generali Returns Targets Cash flow Capital A reminder of our thinking Leverage Capital management philosophy Internal view: Risk based; Risk appetite defined as “AA” type probability of default, based on a combination of rating and internal models External
Slide 89: Rebuilding capital
89 Focus on capital Rebuilding capital Returns Targets Cash flow Capital We are progressing towards target levels Leverage  Completion of our disposal program will deliver target level of solvency  We have flexibility on additional disposals, to cover any unforeseen adverse deviations  Confirmed
Slide 90: M&A: key objectives of the program
90 Focus on capital M&A Returns Targets Cash flow Capital The key objectives of the M&A program Leverage 3 key objectives for the disposal program  Improve solvency capital position  Generate cash flow to parent company to pay down debt  Regain strategic focus We have also deployed cash & solvenc
Slide 91: M&A: Overview of key transactions
91 Focus on capital M&A Returns Targets Cash flow Capital Overview of key transactions Leverage Consideration(1) Solvency Economic Improved Generates cash Improves (€ bn) I Solvency solvency? to repay debt? strategic focus? Disposals Consistency with disposal objectives Migdal 0.7 +2% +1%    12%
Slide 93: Debt leverage
93 Focus on debt leverage Debt leverage Returns Targets Cash flow Capital Financial leverage ratio evolution Leverage Average: 40.4%  New definition of Leverage Ratio based on Shareholders’ Equity excl. OCI(2) < 35%  Current level of leverage ratio ~40%, in line with past average  Leverage ratio
Slide 94: Capital & Leverage update
94 Capital & Leverage update Leverage Returns Targets Cash flow Capital Medium term debt structure evolution Leverage Current Debt mix mid Structure term evolution We will further optimise the mix of debt: Reduction of inefficient senior debt, including in 2014:  Sufficient internal resources < al
Slide 95: Update on Rating
95 Focus on debt leverage Update on Rating Returns Targets Cash flow Capital Leverage  During 2013, four negative reviews on Generali’s ratings were positively resolved (all with affirmations): − one credit watch on IFS rating (S&P) − three reviews on debt ratings (Moody’s, S&P and Fitch), related
Slide 97: Key takeaways
97 Key takeaways  2015 targets confirmed or upgraded despite a tough financial and macro environment  Today we have much more detail & confidence in them as a result of a significantly upgraded management process  We will continue to improve capitalisation, and the quality of our capital by decre
Slide 98: Final remarks
Final remarks Mario Greco, Group Chief Executive Officer © Generali London November 27, 2013 Investor Day
Slide 99: Customer focus: the technical excellence journey has started
99 Customer focus: the technical excellence journey has started Laying the foundations for greater profitability and increased shareholder returns 2016+ longer term 2014-15 ▪ Superior cash generation to increase dividends and invest for growth Now ▪ Deliver on our ambition ▪ Become the performance b
Slide 100: Our vision for Generali in 2015
100 Our vision for Generali in 2015  Focused on core insurance  Superior customer acquisition business, with greater and retention; focus on retail contribution from P&C and affluent space  Stronger capital position and  Consistent technical excellence disciplined balance sheet and tight control
Slide 101: Thank You
GENERALI Thank You.
Slide 102: Disclaimer
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 reco
Slide 103: Next events
Next events 13.03.2014 FY 2013 results reporting 30.04.2014 Annual general Meeting 31.07.2014 15.05.2014 1H 2014 results reporting 1Q 2014 results reporting 06.11.2014 9M 2014 results reporting 19.11.2014 2014 Investor Day © Generali London November 27, 2013 Investor Day
Slide 104: Investor Relations Team
Investor Relations Team Spencer HORGAN Marta Porczynska Head of Investor Relations Team assistant & event coordination Spencer_Horgan@Generali.com Marta_Porczynska@Generali.com +44 20 7265 6480 +39 040 671402 Stefano BURRINO Martina Vono Stefano_Burrino@Generali.com Team assistant & event coordinati

Assicurazioni Generali — Investor Day (November 2013) on 6ix

Assicurazioni Generali — Investor Day (November 2013)

Slide 1: Generali Investor Day

Slide 2: Agenda of the Day

Slide 3: Reshaping Generali: discipline, simplicity and focus

Slide 4: A revolution of discipline, simplicity and focus

Slide 5: A truly global business

Slide 6: A top-tier international management team is now fully operational

Slide 7: Focus on core business

Slide 8: Focus on core business

Slide 9: Reshaping Generali: a focus on costs, investments and operations

Slide 10: Generali Investment Management: our pathway to excellence

Slide 11: Key messages

Slide 12: Agenda

Slide 13: Where we started

Slide 14: 9M13 Investment portfolio: €497 bn AUM

Slide 15: Asset allocation similar to peers

Slide 16: Fixed Income Portfolio

Slide 17: Equity & Equity-like

Slide 18: Asset Allocation: Real Estate as of 9M13

Slide 19: Consistent investment returns despite market volatility

Slide 20: Investment portfolio: the main opportunities we identified

Slide 21: Investment governance: decentralized and with local processes

Slide 22: However, AM rationalization had already started

Slide 23: Our direction: Vision

Slide 24: Our vision and direction

Slide 25: Investment strategy

Slide 26: The investment environment will remain challenging

Slide 27: Investment strategy

Slide 28: Reduction of cash and Italian government bond exposure

Slide 29: Replacement of unprofitable assets

Slide 30: Illustration: Private Equity

Slide 31: Exposure to new asset classes: Senior Loans

Slide 32: New Governance and Operational Model

Slide 33: Investment Governance & organization: main initiatives and results

Slide 34: New investment governance project

Slide 35: Generali Investment Management (GIM) organizational setup

Slide 36: Group Asset Liability Management (ALM)

Slide 37: 2-year industrial transformation roadmap

Slide 38: Closing Remarks

Slide 39: Closing remarks

Slide 40: Generali Operating Platform Strategy (GeOPS)

Slide 41: Agenda

Slide 42: Trends and strategic imperatives

Slide 43: Key trends will fundamentally change the industry

Slide 44: ... with clear implications for insurers

Slide 45: Generali's strategic imperatives for the operating platform

Slide 46: Strategic imperatives guide the improvement of Generali's operating platform

Slide 47: Delivering operational excellence

Slide 48: Our aspiration for Operational Excellence by 2016

Slide 49: Generali operations at a glance

Slide 50: 2 wave program to deliver operational excellence

Slide 51: We have expanded the scope for OPEX, reaching a 2012 baseline of €6.9 bn

Slide 52: ... and target gross savings equal to €1 bn by 2016

Slide 53: 9 programs launched to deliver OPEX

Slide 54: All OPEX programs to be monitored with operational scorecard

Slide 55: Premises & Facility Management

Slide 56: Information Systems

Slide 57: IT Infrastructure

Slide 58: Procurement

Slide 59: Additional programs to be launched in the medium term

Slide 60: Enabling client & distribution and commercial excellence

Slide 61: Development path designed to build distinctive capabilities and technical assets

Slide 62: CosmosDirekt

Slide 63: Proama

Slide 64: Generali Spain

Slide 65: Securing execution and building capabilities

Slide 66: 4 initiatives to secure execution and build capabilities

Slide 67: Group Operating Committee

Slide 68: Transformation supported by capability building, talent management and mobilization

Slide 69: Wrap-up

Slide 70: Re-engineered operating platform will position Generali for profitable growth

Slide 71: Securing our targets

Slide 72: Agenda

Slide 73: Target framework and external backdrop

Slide 74: We confirm or enhance our key 2015 targets

Slide 75: Quarterly business review process

Slide 76: The external backdrop

Slide 77: Focus on returns

Slide 78: Operating RoE is our key target

Slide 79: Operational and Technical excellence