Assicurazioni Generali S.p.a. · MIL:G
Assicurazioni Generali — FY2023 Earnings Presentation
81 slides from Assicurazioni Generali's earnings presentation, Mar 12, 2024
Slide 1: Generali Group 2023 Results
GENERALI GROUP 2023 RESULTS The like for like changes on written premiums, Life net cash inflows, PVBNP, NBV and NBM are on equivalent terms (on equivalent exchange rates and consolidation area). Starting from 1Q23 the bancassurance JVs of Cattolica (Vera and BCC companies) are considered a ‘disposa
Slide 2: Agenda
2 AGENDA 01 Strategy overview 02 Group financials 03 Backup 04
Slide 3: Strategy Overview
STRATEGY OVERVIEW Philippe Donnet Group CEO
Slide 4: Fully on track to deliver Lifetime Partner 24 plan
4 FULLY ON TRACK TO DELIVER “LIFETIME PARTNER 24: DRIVING GROWTH” PLAN Record Operating and Adjusted Net Result supported by all business lines. Further positive impact in 2024 from acquisitions of Liberty Seguros and Conning Holdings P&C driving both top-line and Operating Result despite significan
Slide 5: Record Operating and Adjusted Net Result
5 RECORD OPERATING AND ADJUSTED NET RESULT Operating Result (€ m) Adjusted Net Result¹ (€ m) Solvency Ratio (%) +7.9% +14.1% -1 p.p. 6,879 3,575 221 220 6,374 3,133 2022 2023 2022 2023 2022 2023 P&C Premiums² (€ m) Life New Business Margin² (%) P&C Combined Ratio (%) +12.0% +9 bps -1.4 p.p. 31,120 5
Slide 6: Operating Result growth highlights Group's successful transformation
6 OPERATING RESULT GROWTH HIGHLIGHTS GROUP’S SUCCESSFUL TRANSFORMATION Operating Result (€ m)1 ▪ Focus on profitable growth, with Operating Result vastly outpacing GWP increase ▪ Life: Shift from capital intensive to 6,879 capital light products 6,374 5,208 5,852 4,830 4,895 4,857 5,192 ▪ P&C: Stren
Slide 7: Excellent progress towards Plan's financial targets
7 EXCELLENT PROGRESS TOWARDS PLAN’S FINANCIAL TARGETS Financial targets Current status Progression 2022 2023 2024 6% – 8% EPS CAGR RANGE¹ 2021 - 2024 14.2% ON TRACK > €8.5 billion 2022 2023 2024 CUMULATIVE NET HOLDING CASH FLOW² €5.8 bn cumulative 2022-2023 ON TRACK 2022 - 2024 € bn 2.9 2.9 2022
Slide 8: 2022-2024 cumulative dividend target reached
8 2022-2024 CUMULATIVE DIVIDEND TARGET REACHED THANKS TO STRONG EARNINGS GROWTH Dividend per share (€) 1.47 ▪ Proposed dividend per share 10% higher than the one distributed last year ▪ 2022-2024 cumulative dividend target achieved at 5.5 billion² 0.46¹ 1.07 1.16 1.28² 1.01 ▪ AGM: April 24th, 2024 0
Slide 9: Increasingly effective tariff strengthening measures in P&C
9 INCREASINGLY EFFECTIVE TARIFF STRENGTHENING MEASURES IN P&C 2023 P&C Gross Direct Premiums (%) Price effect Change in average annual 2023 vs 2022 2022 vs 2021 Motor premium Non-Motor Retail and SME: (84%) Retail and SME2,3 +6.1% +3.3% Accident, Health and Disability of which: Corporate & Commercia
Slide 10: Continued progress towards Lifetime Partner customer loyalty targets
10 CONTINUED PROGRESS TOWARDS LIFETIME PARTNER CUSTOMER LOYALTY TARGETS #1 Position R-NPS¹ Multi-holding customers² 21.5 Generali 19.5 Peer 1 Peer 2 17.8 Peer 3 17.4 51.3% 50.0% 47.8% 44.9% 2021 2022 2023 2024 TARGET Lifetime Partner ambition built upon three customer promises Personalised Value Pro
Slide 11: Sustainability at the heart of all our activities
11 SUSTAINABILITY AT THE HEART OF ALL OUR ACTIVITIES¹ Carbon footprint of investment portfolio (EVIC)2 Premiums from insurance solutions with ESG components 3 98 tCO2e/€ m -46.2% vs 2019 (base year) € 20,815 m +7.4% (CAGR 2021-2023) New green and sustainable investments (2021-2023) Relationship NPS
Slide 12: Group Financials
GROUP FINANCIALS Cristiano Borean Group Chief Financial Officer
Slide 13: 2023 results in a nutshell
13 2023 RESULTS IN A NUTSHELL Volumes 2022 2023 D LFL¹ Gross Written Premiums (€ m) 79,019 82,466 +5.6% Life (€ m) 50,565 51,346 +2.0% P&C (€ m) 28,454 31,120 +12.0% Life Net Inflows (€ m) 7,863 (1,313) n.m. Profitability 2022 2023 D Operating Result (€ m) 6,374 6,879 +7.9% Adjusted Net Result (€ m)
Slide 14: 2023 results in a nutshell
14 2023 RESULTS IN A NUTSHELL • Continued increase in Gross Written Premiums (+5.6%) driven by strong P&C growth (+12.0%) • Ongoing positive Net Inflows in Protection and Unit Linked. Slowdown of Savings outflows in 4Q 2023 • Highest ever Operating Result at 6.9 bn (+7.9%) mainly led by P&C (+15.8%)
Slide 15: Strong growth in Operating Result
15 STRONG GROWTH IN OPERATING RESULT € million 19 +7.9% 396 47 62 (19) 6,879 6,374 2022 Life P&C A&WM Holding & Other Consolidation 2023 businesses Adjustments 2023 3,735 2,902 1,001 (320) (439) 2022 3,672 2,507 954 (339) (420) Δ +1.7% +15.8% +4.9% -5.7% +4.5%
Slide 16: Strong growth in Operating Result
16 STRONG GROWTH IN OPERATING RESULT • The y-o-y increase in Operating Result was supported by a positive contribution from all segments • Life Operating Result increased thanks to a higher CSM release, more than offsetting negative one-offs • P&C grew despite very significant Nat Cat losses, benefi
Slide 17: Solid Life performance
17 SOLID LIFE PERFORMANCE VOLUMES (€ m) 2022 2023 D LFL¹ Gross Written Premiums 50,565 51,346 +2.0% Net Inflows 7,863 (1,313) n.m. Present Value New Business Premiums (PVNBP) 44,449 40,300 -9.2% PROFITABILITY 2022 2023 D Life Operating Result (€ m) 3,672 3,735 +1.7% New Business Value (€ m) 2,528 2,
Slide 18: Life Operating Result solid despite one-off items
18 LIFE OPERATING RESULT SOLID DESPITE ONE-OFF ITEMS € million 2022 2023 D Operating Insurance Service Result 2,841 2,901 +2.1% CSM Release 2,889 3,035 +5.0% Risk Adjustment release 156 155 -0.9% Loss component (155) (149) -4.2% Experience variance and other technical result 6 (32) n.m. Other operat
Slide 19: Life Operating Result solid despite one-off items
19 LIFE OPERATING RESULT SOLID DESPITE ONE-OFF ITEMS • The Life Operating Insurance Service Result benefitted from higher CSM release, partially offset by negative one-offs • All key countries reported an increase in the Life Operating Insurance Service Result • The Life Operating Investment Result
Slide 20: Normalised CSM growth of 4.8% in 2023
20 NORMALISED CSM GROWTH OF 4.8% IN 2023 € million² Key sensitivities3 804 1,692 2,093 2,796 Equities +25% 2,189 (1,164) (3,035) (2,155) (391) Equities -25% (2,190) 34,336 370 Yield curve +50bps 30,207 30,911 497 (373) Yield curve -50bps (691) CSM New Expected Economic Operating CSM before CSM Chang
Slide 21: Normalised CSM growth of 4.8% in 2023
21 NORMALISED CSM GROWTH OF 4.8% IN 2023 • The normalized CSM growth was 4.8% thanks to the high quality of New Business CSM and a strong expected return, supported by the unwinding of discount net of the CSM release. For 2024 the expected return guidance of >4% is confirmed • The ratio CSM release/
Slide 22: Continued inflows in preferred lines of business
22 CONTINUED INFLOWS IN PREFERRED LINES OF BUSINESS Net inflows mix by Line of Business in 2023 € million Net inflows mix by Country Unit Linked Protection Savings € million 2022 2023 4,357 4,552 Italy 1,170 (3,022) France 975 (1,685) DACH 2,823 761 (10,222) International 2,931 2,599 Group Holdings
Slide 23: Continued inflows in preferred lines of business
23 CONTINUED INFLOWS IN PREFERRED LINES OF BUSINESS • The Protection business grew driven by Italy and France, confirming its resilient performance • The Unit-Linked business continued to see positive net inflows, although showing a decreasing trend in Italy and France • Savings and Pension business
Slide 24: Further increase in New Business Margin
24 FURTHER INCREASE IN NEW BUSINESS MARGIN New Business Margin PVNBP (€ m) NBV (€ m) * (on PVNBP) = 44,449 40,300 5.69% 5.78% 2,528 2,331 -9.2% +9 bps -7.7% 17,190 17,459 716 +6.8% +2.0% 4.17% 4.38% 764 Savings 10,493 880 Protection -12.7% 9,166 8.39% 10.16% +5.9% 931 Unit Linked 16,767 -18.5% 13,67
Slide 25: Further increase in New Business Margin
25 FURTHER INCREASE IN NEW BUSINESS MARGIN • In terms of business mix, Savings business volumes increase was driven by Asia and Italy (where 2H reversed the trend recorded in 1H), partially offset by Germany • Protection New Business volumes recorded a slowdown (-12.7%), mainly attributable to Franc
Slide 26: PVNBP decline magnified by rising rates
26 PVNBP DECLINE MAGNIFIED BY RISING RATES 26 New Business Margin PVNBP (€ m) NBV (€ m) (on PVNBP) -9.2% -7.7% -5.7% +9 bps -30 bps -9.7% -59 bps 40,300 +99 bps -2.7% 2,331 -27.4% -21 bps 15,617 6.60% 6.40% -11.3% 1,030 5.78% -6.9% 5.45% +12.9% 10,115 4.57% +3.4% 9,199 5,227 462 502 334 Italy France
Slide 27: PVNBP decline magnified by rising rates
27 PVNBP DECLINE MAGNIFIED BY RISING RATES • Group New Business volumes expressed in Annual Premium Equivalent terms declined by -2.7% • Looking at the trends in the key geographies: • New Business Margin in Italy decreased mainly due to ad hoc initiatives to support the production. The decrease of
Slide 28: Life current return increasing
28 LIFE CURRENT RETURN INCREASING Life segment General Account (%) Current return¹ €m % €297bn €299bn 2022 7,496 2.8% Fixed income 2023 7,508 3.2% 2.6% 2.0% 2.1% 3.5% 8.6% 8.0% 2022 760 3.3% Equity 7.5% 7.3% 2023 521 2.3% 12.3% 12.9% Other 2022 851 3.4% Cash & cash equivalent Real Estate² Real estat
Slide 29: Life current return increasing
29 LIFE CURRENT RETURN INCREASING • Current income decreased during 2023 following lower contribution from equity investments (including -124 m in dividends from private equity), government bonds (mainly due to lower contribution from inflation-linked bonds) and overall reduction of exposure due to
Slide 30: Strong development in both P&C business lines
30 STRONG DEVELOPMENT IN BOTH P&C BUSINESS LINES VOLUMES (€ m) 2022 2023 D LFL¹ Gross Written Premiums 28,454 31,120 +12.0% o/w Direct Premiums Motor 9,915 10,599 +17.5% o/w Direct Premiums Non-Motor 17,254 19,055 +8.7% PROFITABILITY 2022 2023 D Combined Ratio discounted 95.4% 94.0% -1.4 p.p. Combin
Slide 31: Strong development in both P&C business lines
31 STRONG DEVELOPMENT IN BOTH P&C BUSINESS LINES • Excluding the contribution of Argentina, P&C GWP would have increased by 7.7% • Motor premiums grew thanks to Italy, France, CEE, and Argentina (also following adjustments for inflation). Without Argentina, Motor premiums would have grown by 6.3% •
Slide 32: Continued healthy growth in P&C volumes
32 CONTINUED HEALTHY GROWTH IN P&C VOLUMES 2023 P&C Premiums (€ m)¹ 2023 Motor and Non-Motor Premiums (€ m)² +8.7% +12.0% Motor Non-Motor +17.5% +5.7% +9.6% +5.8% +23.1% +6.2% +43.5% 19,055 31,120 +4.6% +4.9% +6.9% 5,333 +1.9% 4.917 8,790 +6.9% +23.4% 4,114 10,599 8,882 3,577 3,167 +23.5% 2,631 +7.5
Slide 33: Continued healthy growth in P&C volumes
33 CONTINUED HEALTHY GROWTH IN P&C VOLUMES • The driver of Italy’s top line growth was Non-Motor, which increased thanks to retail and corporate businesses while Motor’s positive performance was supported by individual and fleet lines • In France, Motor and Non-Motor performed well: both were driven
Slide 34: Focus on net combined ratio
34 FOCUS ON NET COMBINED RATIO Net Combined Ratio (%) -1.4 p.p. 95.4 1.4 0.7 94.0 (1.2) (1.1) (1.2) 28.5 29.2 Expense ratio Loss ratio 66.9 64.9 2022 CY attritional Nat Cat CY Prior Year Expense 2023 Loss Ratio undiscounted discounting Ratio undiscounted (ex Nat Cat) 2023 66.9% 3.7% (2.7%) (3.0%) 29
Slide 35: Focus on net combined ratio
35 FOCUS ON NET COMBINED RATIO • The reported COR improved by 1.4 p.p. despite 1,127 m undiscounted Nat Cat events thanks to: • the improvement in the attritional loss ratio, benefitting from tariff strengthening and other technical measures • higher Previous Year, also reflecting 2022 inflation-rel
Slide 36: Combined ratio improves for all countries except Italy due to Nat Cat
36 COMBINED RATIO IMPROVES FOR ALL COUNTRIES EXCEPT ITALY DUE TO NAT CAT 2023 Combined Ratio by Country compared to 2022 Discounted Undiscounted -0.3 p.p. +3.5 p.p. -1.4 p.p. -1.4 p.p. +2.9 p.p. -3.1 p.p. -1.9 p.p. -1.2 p.p. -4.5 p.p. -1.8 p.p. -1.6 p.p. 99.6% 98.1% 97.4% 96.7% 96.1% 94.0% 94.0% 96.
Slide 37: Combined ratio improves for all countries except Italy due to Nat Cat
37 COMBINED RATIO IMPROVES FOR ALL COUNTRIES EXCEPT ITALY DUE TO NAT CAT • The COR increase in Italy was entirely driven by higher natural catastrophe claims. The impact of Nat Cat losses was equal to 638 m in 2023, or 7.5 p.p. of COR, compared to 3.1 p.p. in 2022. During 2023 the undiscounted Curre
Slide 38: Double-digit growth in P&C Operating Result
38 DOUBLE-DIGIT GROWTH IN P&C OPERATING RESULT € million +15.8% 351 141 159 (255) 2,902 2,507 2022 Undiscounted Current Year Insurance Operating 2023 Operating Discounting Finance Investment Insurance Service Expenses Income Result 2023 993 814 (294) 1,389 2022 834 463 (39) 1,248 D +19.1% +75.9% n.m
Slide 39: Double-digit growth in P&C Operating Result
39 DOUBLE-DIGIT GROWTH IN P&C OPERATING RESULT • The Undiscounted Operating Insurance Service Result increased in particular in France, Germany and CEE, which were also negatively impacted by the inflation-related reserves strengthening in 2022. This trend was partially offset by the impact from Nat
Slide 40: P&C current return increasing
40 P&C CURRENT RETURN INCREASING P&C segment General Account (%) Current return¹ €m % 2022 793 2.5% €45bn €46bn Fixed income 2023 983 3.0% 6.5% 7.3% 2022 230 7.2% 6.9% 8.3% Equity 7.3% 6.8% 2023 191 5.9% 6.5% 6.8% Other 2022 148 4.6% 14.1% 11.0% Cash & cash equivalent Real Estate² 2023 152 4.7% Real
Slide 41: P&C current return increasing
41 P&C CURRENT RETURN INCREASING • Current income increased during 2023 thanks to the higher contribution from the fixed income portfolio, especially corporate bonds (benefiting from higher reinvestment yields) and higher remuneration on liquidity • In addition, the current income benefitted from th
Slide 42: A&WM supported by Banca Generali
42 A&WM SUPPORTED BY BANCA GENERALI Asset & Wealth Management (€ m) 2022 2023 Δ Operating Result 954 1,001 +4.9% o/w Asset Management 638 559 -12.3% o/w Wealth Management (Banca Generali Group)¹ 316 441 +39.6% Asset Management (€ m) 2022 2023 Δ Operating Revenues 1,117 1,089 -2.5% o/w management and
Slide 43: A&WM supported by Banca Generali
43 A&WM SUPPORTED BY BANCA GENERALI • The increase in Operating Result of the Banca Generali group was driven by recurring revenues and was also supported by the improvement in the interest margin and disciplined cost control. Total Net Inflows at Banca Generali in 2023 were +5.9 bn, confirming the
Slide 44: Growing contribution from other businesses
44 GROWING CONTRIBUTION FROM OTHER BUSINESSES Holding & Other Businesses (€ m) 2022 2023 D Other Businesses¹ 209 252 +20.7% Operating Holding Expenses (548) (572) +4.4% Total (339) (320) -5.7% 1. It includes companies with an exclusive holding role, service companies and all the other companies that
Slide 45: Growing contribution from other businesses
45 GROWING CONTRIBUTION FROM OTHER BUSINESSES • Other businesses increased thanks to the improved results of France, due to higher intragroup dividends and the strong performance of Planvital, the Pension Fund business in Chile • Operating Holding Expenses were up primarily reflecting higher personn
Slide 46: From Operating to Net Result
46 FROM OPERATING TO NET RESULT Components: Investment result from FVTPL and foreign currency: (€115m) € million Net realized gains and losses: €421m Components: Net ECL and impairment losses: (€241m) Restructuring costs: (€312m) Amortization of intangibles from business 64 combinations and bancassu
Slide 47: From Operating to Net Result
47 FROM OPERATING TO NET RESULT • The Net Non-Operating Investment Result from FVTPL and gains and losses on foreign currency significantly improved thanks to positive financial market trends. The vast majority of the volatility in the Non-Operating Investment Result stems from assets in non-VFA bus
Slide 48: From Net to Adjusted Net Result
48 FROM NET TO ADJUSTED NET RESULT € million 84 48 Weighted average number of shares (304) million 3,747 3,575 1,570 Net Net gains from P&L on assets Hyperinflation Adjusted 1,542 Result disposals¹ at FVTPL² effect³ Net Result 1,534 2023 3,747 (304) 84 48 3,575 2022 2023 Estimated 2024⁴ 2022 2,235 -
Slide 49: From Net to Adjusted Net Result
49 FROM NET TO ADJUSTED NET RESULT • The Adjusted Net Result neutralises these 4 elements: • the volatility stemming from the Mark to Market of assets at Fair Value Through Profit and Loss (FVTPL) held in non-participating business and shareholder funds. In 4Q 2023, the adjustment was +13 m • the P&
Slide 50: Strong capital management framework enables recurring remittance growth
50 STRONG CAPITAL MANAGEMENT FRAMEWORK ENABLES RECURRING REMITTANCE GROWTH Cash basis1 (€ million) Remittance from subsidiaries 3,621 3,395 180 381 168 160 • Higher remittance driven by steady growth 435 464 of recurrent component (>€ 0.1 billion) Other 205 Spain 185 CEE 600 630 • Well diversified a
Slide 51: Net Holding Cash Flow ahead of target thanks to higher remittance
51 NET HOLDING CASH FLOW AHEAD OF TARGET THANKS TO HIGHER REMITTANCE Cash basis1 (€ million) 2022 2023 Remittance from subsidiaries 3,395 3,621 (Re)insurance Cash Flow 119 275 Interest & holding expenses (614) (960) Net Holding Cash Flow (market view) 2,900 2,936 Group dividend² (€ bn) 1.8 2.0 Divid
Slide 52: Net Holding Cash Flow ahead of target thanks to higher remittance
52 NET HOLDING CASH FLOW AHEAD OF TARGET THANKS TO HIGHER REMITTANCE ▪ Net Holding Cash Flow increases slightly by 1% compared to 2022 mainly driven by the compensation between: • Higher remittance driven by steady growth of recurring component and by positive contribution from Capital Management ac
Slide 53: Shareholders' equity rollforward
53 SHAREHOLDERS’ EQUITY ROLLFORWARD € million 65 +8.7% 3,747 296 (1,790) 28,968 26,650 Shareholders' Δ in OCI Dividend 2023 Other Shareholders' Equity 2022 Result Equity 2023 9,885 Changes in Other Comprehensive Income (2,160) (1,863) 88 (9,301) (157) (219) OCI Related to Related to Defined Foreign
Slide 54: Solvency ratio
54 SOLVENCY RATIO Eligible own funds vs. Required capital € billion Key sensitivities 221% 220% 6 p.p. Equities +25% 5 p.p. (6 p.p.) Equities -25% (6 p.p.) 2 p.p. 46.4 49.0 Yield curve +50bps 4 p.p. (3 p.p.) Yield curve -50bps (5 p.p.) 21.1 22.3 (1 p.p.) Corp spread +50bps (1 p.p.) 2022 2023 (6 p.p.
Slide 55: Solvency ratio
55 SOLVENCY RATIO • Over the last few years, we have reduced the Solvency 2 ratio volatility, in particular working on 4 key levers: • increasing weight of capital light products in Life • increased diversification through P&C, Unit Linked and Protection • lower weight of BTPs with a gradually short
Slide 56: Strong solvency supported by capital generation
56 STRONG SOLVENCY SUPPORTED BY CAPITAL GENERATION € billion Excess Solvency II ratio Own Own (%) Funds SCR Funds1 2022 46.4 21.1 25.4 221% Regulatory changes (0.1) 0.2 (0.3) -3 p.p. Normalized capital generation 4.5 (0.1) 4.6 +22 p.p. Economic variances 0.5 0.8 (0.3) -6 p.p. Non-economic variances
Slide 57: Strong solvency supported by capital generation
57 STRONG SOLVENCY SUPPORTED BY CAPITAL GENERATION • Stable and solid Solvency ratio with an excellent capital generation, thanks to the contribution of both Life and P&C segments, as well as benefitting from higher unwinding • Economic variances were -6 p.p., due to drop of interest in 4Q 2023; equ
Slide 58: 2023 capital generation at €4.6 billion
58 2023 CAPITAL GENERATION AT €4.6 BILLION Total normalized Own Funds SCR¹ capital generation (€ bn) (€ bn) (€ bn) Life 2.3 1.6 (1.4) 1.5 4.0 P&C 1.0 0.0 1.0 Holdings & Financial (0.4) 0.0 (0.4) Total Normalized 2.9 1.6 4.5 0.1 4.6 Capital Generation Life new business Other capital generation driver
Slide 59: 2023 capital generation at €4.6 billion
59 2023 CAPITAL GENERATION AT €4.6 BILLION • Positive contributions from Life New Business Value (with improved margin mitigating the contraction of volumes) and also from P&C despite the high Nat Cat impact • Benefit from higher unwinding rate (thanks to increase of interest rates from FY 2021 to F
Slide 60: Final remarks
60 FINAL REMARKS Undiscounted Current Year Attritional Combined Ratio showing the positive impact from implemented technical measures Ongoing positive net inflows in Protection and Unit Linked, slowdown of Savings outflows Solid Life Operating Result with excellent New Business Margin Healthy cash g
Slide 61: Backup
BACKUP
Slide 62: Quarterly results (1/3)
62 QUARTERLY RESULTS (1/3) € million 4Q22 4Q23 D Gross Written Premiums 21,075 22,004 +8.1%¹ Life 13,650 14,328 +5.1%¹ P&C 7,425 7,676 +13.6%¹ o/w Direct Motor 2,333 2,450 +31.5%¹ o/w Direct Non-Motor 4,683 4,793 +5.2%¹ Life Net Inflows 833 (119) n.m.¹ Total Operating Result 2,003 1,779 -11.2% Life
Slide 63: Quarterly results (2/3)
63 QUARTERLY RESULTS (2/3) € million 4Q22 4Q23 D P&C Operating Result 1,073 748 -30.3% Combined Ratio 89.9% 93.1% +3.3 p.p. Loss Ratio 61.7% 64.7% +3.0 p.p. Current year Loss Ratio 67.7% 68.4% +0.8 p.p. Current year Loss Ratio undiscounted (ex Nat Cat) 68.3% 65.7% -2.5 p.p. Nat Cat losses undiscount
Slide 64: Quarterly results (3/3)
64 QUARTERLY RESULTS (3/3) € million 4Q22 4Q23 D Asset & Wealth Management Operating Result 254 273 +7.7% o/w Asset Management 180 172 -4.1% o/w Wealth Management (Banca Generali Group) 74 101 +36.6% Holding & Other Businesses Operating Result (90) (104) +15.9% o/w Other Businesses 57 53 -7.2% o/w O
Slide 65: Reconciliation between IFRS equity and Solvency 2 own funds
65 RECONCILIATION BETWEEN IFRS EQUITY AND SOLVENCY 2 OWN FUNDS € billion 3.7 8.5 31.8 (2.3) (4.0) (2.0) (8.0) 2.3 46.5 49.0 29.0 31.3 (10.0) Shareholders' Minority Shareholders' Intangibles CSM Scope Valuation Net Excess of Subordinated Deductions & Foreseeable Group Equity interests Equity 2023 dif
Slide 66: P&C discounting and LIC unwinding
66 P&C DISCOUNTING AND LIC UNWINDING Accident Year Locked-in forward rates LIC Locked 2022 1H23 2023 (2023 2022 2023 2024 weight)² CY Net Claims Reserves €9.2bn €6.1bn €9.8bn Prior -0.3% 0.0% 0.3% 22% Duration (y) 2.5 2.4 2.3 2017 0.6% 0.9% 1.2% 3% Discount rate 2.2% 3.5% 3.4% 2018 0.7% 0.9% 1.1% 4%
Slide 67: Cost to income ratio: further progression toward 2024 target
67 COST TO INCOME RATIO: FURTHER PROGRESSION TOWARD 2024 TARGET Cost General Expenses of Cost to Income ratio (%)2 insurance perimeter €8.2bn¹ Insurance perimeter¹ -0.3 p.p. Earnings before Taxes and 2024 Target: before General Expenses, improve by excluding: 2.5 – 3 p.p.3 • P&C Discounting and Insu
Slide 68: Assets under management
68 ASSETS UNDER MANAGEMENT Breakdown by region and asset class (%) Total Portfolio: €656 bn (%) 9 11 Italy 35 France By Region DACH 25 International Other General account 20 29 55 Unit Linked Third party investments 52 7 Equity 8 Fixed income 16 Real estate By Asset Class Cash & Cash Equivalent Othe
Slide 69: Fixed income portfolio by rating
69 FIXED INCOME PORTFOLIO BY RATING Covered Corporate Government Total Portfolio: €281 bn (%) €8 bn (%) €89 bn (%) €137 bn¹ (%) 17 1 3 6 31 7 13 6 3 37 29 41 31 20 55 Other fixed Income 52 Covered 12 24 Corporate non fin. Corporate fin. AAA AA A BBB Not Investment Grade Not Rated Government 49 Bond
Slide 70: Fixed income portfolio by country
70 FIXED INCOME PORTFOLIO BY COUNTRY Covered Corporate Government Total Portfolio: €281 bn (%) €8 bn (%) €89 bn (%) €137 bn (%) 17 2 7 17 28 3 27 44 9 20 54 65 1 Other fixed Income 15 20 16 Covered 1 9 2 12 Corporate non fin. Corporate fin. Italy France Germany CEE USA Other Government 49 Traditiona
Slide 71: Equity & equity-like
71 EQUITY & EQUITY-LIKE Alternative Funds: €14 bn (%) Equity: €6 bn (%) 1 Total Portfolio: €25 bn (%) 14 12 Life 15 Life P&C P&C AM Other Other 25 84 82 56 Equity Funds: €5 bn (%) 18 Quoted and Unquoted1 (%) 2 Equity Equity Funds Alternatives Quoted 42 Life Unquoted P&C 58 Other 98 1. Total Equity &
Slide 72: Asset allocation: real estate
72 ASSET ALLOCATION: REAL ESTATE Total Portfolio: €33 bn1 Breakdown by Country (%) • Leverage: approximately 20% on RE funds 0 21 France • Occupancy rate: Net vacancy rate of 4.3%² 29 Italy 4 Germany CEE 14 Rest of Europe Breakdown by Utilisation³ Rest of World Investment Properties Own Use 31 86% 1
Slide 73: Reconciliation with Group disclosure on external clients
73 RECONCILIATION WITH GROUP DISCLOSURE ON EXTERNAL CLIENTS € billion 23 62 189 105 AM External Wealth Pension Funds Group External Client Assets Management & Others Clients Assets
Slide 74: Focus on financial debt
74 FOCUS ON FINANCIAL DEBT Average cost, maturity and interest Total financial debt expenses on financial debt € million Senior Subordinated / Hybrid Other 2022 2023 10,965 10,277 Average cost (%) 4.27% 4.39% 157 154 Subordinated/Hybrid 4.09% 4.25% Senior 5.13% 5.13% 8,358 9,040 Average maturity (ye
Slide 75: Debt issuances breakdown by expiry date
75 DEBT ISSUANCES BREAKDOWN BY EXPIRY DATE NOMINAL VALUE (€ m) Senior Hybrid Subordinated 8 1,750 1,000 1,750 500 1,011 1,000 850 750 500 600 500 404 - 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Green bonds Sustainability Green bonds bond Note: In January 2024 the Group has concluded the plac
Slide 76: High quality capital mix: Tier 1 capital 86% of total
76 HIGH QUALITY CAPITAL MIX: TIER 1 CAPITAL 86% OF TOTAL Tiering of Solvency capital Applicable Solvency limits 2023 Solvency II 2023 limits Generali € bn % of total Tier 1 42.0 86% Restricted Tier 1 < 20% 4% of total Tier 1 of total Tier 1 Unrestricted Tier 1 40.6 83% < 50% 34% Restricted Tier 1 1.
Slide 77: Focus on Solvency capital requirement
77 FOCUS ON SOLVENCY CAPITAL REQUIREMENT € billion Pre-diversification SCR by region (%) 2023 SCR before 9% 34.0 diversification AG & Holdings 20% 35% Italy DACH Diversification 8.2 France 18% International 18% Taxes 4.9 Pre-diversification SCR by type of risk (%) 2023 SCR excl. 23% 20.9 Other regim
Slide 78: What's next in 2024
78 WHAT’S NEXT IN 2024 Corporate Events April, 24 May, 21 August, 9 November, 15 ANNUAL 1Q24 1H24 9M24 GENERAL RESULTS RESULTS RESULTS MEETING Morgan Stanley UniCredit Mediobanca Goldman Sachs Bank of America JP Morgan European Italian Italian European Merrill Lynch European Financials Investment CE
Slide 79: Contacts
79 CONTACTS Assicurazioni Generali Piazza Duca degli Abruzzi 2 34132 Trieste, Italy Fax: +39 040 671338 e-mail: ir@generali.com generali.com Fabio Cleva Stefano Burrino Emanuele Marciante Group Head of Investor Investor Relations Credit & Rating Agency Relations & Rating Agency Relations fabio.cleva
Slide 80: Disclaimer
80 DISCLAIMER Certain of the statements contained herein are statements of The manager in charge of preparing the Company’s financial future expectations and other forward-looking statements. reports, Cristiano Borean, declares - pursuant to paragraph 2, article 154-bis of the Consolidated Law on Fi
Slide 81: Generali
_ io. GENERALI aon. GENERALI
Assicurazioni Generali — FY2023 Earnings Presentation on 6ix