Assicurazioni Generali S.p.a. · MIL:G

Assicurazioni Generali — 9M 2014 Earnings Presentation

38 slides from Assicurazioni Generali's earnings presentation, Nov 6, 2014

  1. Slide 1: GENERALI GROUP 9M 2014 Results

    GENERALI GROUP 9M 2014 Results Please note that prior year’s figures have been restated throughout the whole presentation to reflect the new perimeter of the Group. Net income, Shareholders’ Equity, Solvency I, Life Value KPIs are not adjusted for disposed entities. The like for like change of writt

  2. Slide 2: Agenda

    2 Agenda - Profit & Loss and Balance Sheet Page 3 - Business review Page 9 - Backup Page 24 © Generali November 6, 2014 9M 2014 Results

  3. Slide 3: I. Profit & Loss and Balance Sheet

    3 Agenda I. Profit & Loss and Balance Sheet © Generali November 6, 2014 9M 2014 Results

  4. Slide 4: Key 9M 2014 financials at a glance

    Profit & Loss 4 Key 9M 2014 financials at a glance  Operating Result: Strong positive development thanks to all business segments  Life: Positive performance with improved investment results and lower expenses  P&C: Increase driven by significantly better combined ratio  Costs: general expenses

  5. Slide 5: Operating result by segment

    Profit & Loss 5 Operating result by segment +12.8% (€ m) 49 3,677 157 3,259 228 11 (27) 9M13 LIFE P&C FINANCIAL HOLDING EXP. CONS.AD 9M14 SERVICES 9M14 2,300 1,482 323 (290) (137) 9M13 2,071 1,325 274 (264) (148) D +11.0% +11.8% +17.8% +10.2% -7.4% © Generali November 6, 2014 9M 2014 Results

  6. Slide 6: From operating result to net profit

    Profit & Loss 6 From operating result to net profit Including: 3,677 - € 104 m: VOBA amortization (€ m) (7) (606) (299) Including: 1,588 - € 564 m: Interest costs (19) (996) (161) OPERATING NON OPER. NON OPER. NET OTHER INCOME TAXES DISC. MINORITIES NET RESULT RESULT INVESTMENT HOLDING NON OPER. OPE

  7. Slide 7: Shareholders' equity

    Balance Sheet 7 Shareholders’ equity Shareholders’ equity rollforward (€ m) +14.0% 3,177 1,588 22,538 19,778 (701) (1,304) Including: - € 635 m: GPH buyout - € 130 m: GDH squeeze out - € 492 m: defined benefit plan SHAREHOLDERS' Δ in AFS RESERVE 9M 2014 NET DIVIDEND OTHER SHAREHOLDERS EQUITY FY13 RE

  8. Slide 8: Solvency I

    Capital 8 Solvency I Solvency I rollforward (%)  Significant improvement of Solvency capital position despite the impact of remaining GPH minorities acquisition, driven by: Solvency I ratio sensitivities (%)  Result of the period Total ratio 160  Successful placement of subordinated bond 30.09.20

  9. Slide 9: II. Business review

    9 Agenda II. Business review © Generali November 6, 2014 9M 2014 Results

  10. Slide 10: Life key financial indicators

    Life Insurance 10 Life key financial indicators (€ m) 9M13 9M14 LFL D 3Q13 3Q14 LFL D Gross written premiums 32,801 35,728 +9.6% 9,685 11,536 +19.5% Net inflows 6,515 9,118 +41.7% 1,580 3,193 +102.8% Life operating result 2,071 2,300 +11.0% 591 748 +26.7% Life operating ratio on 62 61 -1 21 24 +3 in

  11. Slide 11: Life Operating result by driver

    Life Insurance 11 Life Operating result by driver  Strong improvement driven by the investment result and decreasing expense ratio  Technical margin lower due to policyholder share of lower expenses, and lower risk result +11.0% 206 2,300 2,071 214 (€ m) (190) 9M13 TECHNICAL MARGIN INVESTMENT RESU

  12. Slide 12: Life inflows and technical reserves

    Life Insurance 12 Life inflows and technical reserves(1)  Sharp increase in net inflows (+ 41.7%)  Excellent performance in Italy and EMEA Life Inflows (€ m) 9M13 9M14  Recovery in France in 3rd quarter  Decrease in Germany due to contraction of cash-in Italy 788 3,652 following planned reductio

  13. Slide 13: Life investment performance

    Life Insurance 13 Life investment performance Life segment general account (%) Current returns (not annualized) Euro 282.4 bn Euro 314.1 bn Euro m % 1.9% 1.7% 3.8% 2.3% Other 3.2% 3.5% 4.1% 4.7% 9M13 6,929 2.94 8.9% Cash & cash 8.1% equivalent Fixed income Real estate 9M14 7,143 2.72 35.0% Equity 9M

  14. Slide 14: Life new business analysis

    Life Insurance 14 Life new business analysis  Excellent APE development (+12.7%) on account of good growth for both annual (+5.8%) and single premiums (+23.1%)  NBM improves (+5.3p.p. on homogeneous basis) on account of the reduction of guarantees offered (in Euro area from 1.20% at 9M13 to 0.93%

  15. Slide 15: P&C key financial Indicators

    P&C Insurance 15 P&C key financial Indicators (€ m) 9M13 9M14 LFL D 3Q13 3Q14 LFL D Gross written premiums, of which: 15,915 15,564 -0.2% 4,439 4,395 +1.2% Primary Motor 6,549 6,319 +0.2% 1,857 1,803 +0.3% Primary Non Motor 8,827 8,748 +0.0% 2,422 2,442 +2.4% Combined ratio (%) 95.0% 93.6% -1.4%pts.

  16. Slide 16: P&C Operating result by driver

    P&C Insurance 16 P&C Operating result by driver  Improving result reflecting better underwriting margins +11.8% 152 13 1,482 1,325 (9) (€ m) 9M13 TECHNICAL MARGIN INVESTMENT RESULT OTHER 9M14 9M14 860 770 (147) 9M13 707 757 (139) D% +21.6% +1.7% +6.2% © Generali November 6, 2014 9M 2014 Results

  17. Slide 17: P&C gross written premiums trends

    P&C Insurance 17 P&C gross written premiums trends Overall stable premium development: (€ m) 9M13 9M14 LFL r  Decline in Italy primarily driven by Motor. Growth in Personal and Commercial lines offset by lower premiums in Accident & Health Italy 4,304 4,155 -3.5%  Decline in France driven by a com

  18. Slide 18: Combined ratio analysis

    P&C Insurance 18 Combined ratio analysis Expense ratio (%) - 0.1%pts. 26.8 26.8 Combined ratio (%) 5.9 (0.1) (0.0) 5.8 Administr. costs - 1.4%pts. 95.0 Acquisition 20.9 21.0 93.6 costs (0.1) (1.4) Δ%pts 26.8 26.8 9M13 Δ Admin Δ Acq. 9M14 Loss ratio (%) - 1.4%pts. 68.2 66.8 68.2 66.8 0.2 (0.3) (1.3)

  19. Slide 19: Combined ratio by country

    P&C Insurance 19 Combined ratio by country  Combined ratio improving in Italy, despite COUNTRY 9M13 9M14 ∆ Nat Cat impact (+0.9%pts.) Italy 91.6% 89.1% -2.5%pts.  Combined Ratio in France strongly France 101.0% 105.4% +4.4%pts. impacted by Nat Cat (3.2%pts.) and portfolio restructuring activities

  20. Slide 20: P&C investment performance

    P&C Insurance 20 P&C investment performance P&C segment general account (%) Current returns (not annualized) Euro 37.7 bn Euro 39.7 bn 1.1% 1.5% Euro m % 10.0% 8.7% 13.1% 12.6% Other 9M13 653 2.56 Fixed income 10.0% Cash & cash 9M14 662 2.54 9.9% equivalent 6.5% 9.9% Real estate 9M13 67 2.40 Equity

  21. Slide 21: Financial segment key financial indicators

    Financial Segment 21 Financial segment key financial indicators 9M13 9M14 LFL D 3Q13 3Q14 LFL D Operating result (€ m) 274 323 +17.8% 79 97 +22.8% Net fees and commissions (€ m) 341 378 +10.8% 104 127 +21.8% Cost / income ratio (%) 50.0% 47.3% -2.7%pts. 50.8% 47.4% -3.4%pts. Third party AUM(1) (€ bn

  22. Slide 22: Final remarks

    Final remarks 22 Final remarks  Pro-forma Solvency I ratio at 169%, comfortably above target level  Strong improvement in operating result, driven by all segments  Continuing momentum in life volumes and inflows, with improved mix  Strong improvement in P&C profitability driven by lower nat cat

  23. Slide 23: Liability Management transaction – Key elements

    Liability Management transaction 23 Liability Management transaction – Key elements  Overview:  Partial Cash Tender on 3 outstanding Hybrids: Issuer Nominal value issued Currency Coupon % Issue date Maturity Call date Purchase price Generali Finance BV 1,275 m EUR 5.317 16 June 2006 Perpetual 16 J

  24. Slide 24: II. Backup

    24 Agenda II. Backup - Investments Page 25 - Financial debt Page 30 © Generali November 6, 2014 9M 2014 Results

  25. Slide 25: II. Backup

    25 Agenda II. Backup - Investments Page 25 - Financial debt Page 30 © Generali November 6, 2014 9M 2014 Results

  26. Slide 26: Assets under management

    Investments 26 Assets under management Total portfolio € 465 bn Breakdown by region and asset class Italy 4% By Region France 3% 10% 31% Germany CEE 29% General account EMEA 9.1% 23% RoW and other operations 14.1% Unit Linked 76.8% 1% 3% Third party AUM 4% 5% Equity Fixed income Real estate By Asset

  27. Slide 27: Fixed Income Portfolio

    Investments 27 Fixed Income Portfolio Covered € 31 bn Corporate € 93 bn Government € 155 bn (1) Total Portfolio € 312 bn 1% 1% 1% 2% 0% 10.5% 7% 4% 8% 14% 10% 10% 10.0% 10% 16.9% 46% 37% 34% 71% 40% 12.9% Other fixed Income 4% Covered AAA AA A BBB Not Investment Grade Not Rated Corporate non fin. 49

  28. Slide 28: Equity & Equity-like

    Investments 28 Equity & Equity-like Total portfolio (€ 17 bn) Alternative investments (€ 2.7 bn) Equity (€ 10.9 bn) Life, P&C and Life, P&C and 1% 21% Financial Financial 24% 15% 14% 65% Life Life P&C 75% P&C Financial 22% Financial 63% 0% 17% 24% Listed and Unlisted Life, P&C and Equity Equity Fund

  29. Slide 29: Real Estate

    Investments 29 Real Estate (1) Total portfolio (€ 25 bn (1)) 4% 6% Breakdown by use (2) 11% Office Retail 15% Residential 64% Breakdown by utilization (2) Logistic 15% Other/Mixed Investment properties Own use 1% Breakdown by country (2) 85% 20% Italy France 2% 37% Germany 16% CEE RoE 24% RoW (1) Da

  30. Slide 30: II. Backup

    30 Agenda II. Backup - Investments Page 25 - Financial debt Page 30 © Generali November 6, 2014 9M 2014 Results

  31. Slide 31: Debt refinancing operations completed

    Financial debt 31 Debt refinancing operations completed Financing until 2016 call dates completed; € 1 bn net reduction in debt levels by end 2015 (€ bn) 1.3 1.0 12.8 12.9 12.2 (0.5) 11.7 (1.5) (0.8) (0.5) FY13 SENIOR BOND REPAYMENT SUB DEBT SENIOR DEBT 9M14 NOVEMBER EXPECTED 2015 EXPECTED ISSUED JA

  32. Slide 32: Focus on financial debt

    Financial debt 32 Focus on financial debt Average cost & maturity of financial debt (%) Total financial debt (€ m) € 12,758 m € 12,956 m(1) 678 603 FY13 9M14 Average cost (%) 5.93% 5.71% 7,612 8,133 Subordinated/Hybrid 6.54% 6.41% Senior 4.81% 4.26% 4,468 4,220 Average maturity (years) 5.27 5.71 FY1

  33. Slide 33: Financial debt breakdown by expiry date/call date

    Financial debt 33 Financial debt breakdown(1) by expiry date/call date (€ m) 2,635 2,177 1,750 1,449 1,268 1,250 750 770 500 250 2014 2015 2016 2017 2018 2019 2020 2022 2024 2026 Senior Hybrid Subordinated (1) This breakdown still takes into account the Senior bonds maturing in 2014 that will be rei

  34. Slide 34: 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

  35. Slide 35: Next events

    35 Next events 19.11.2014 2014 Investor Day 12.03.2015 FY 2014 results reporting 14.05.2015 30.04.2015 1Q 2015 results reporting Annual General Meeting 30.07.2015 1H 2015 results reporting 05.11.2015 9M 2015 results reporting © Generali November 6, 2014 9M 2014 Results

  36. Slide 36: Investor Relations Team

    36 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

  37. Slide 37: Thank you

    37 Thank you © Generali November 6, 2014 9M 2014 Results

  38. Slide 38: GENERALI GROUP

    GENERALI GROUP 9M 2014 Results © Generali November 6, 2014 9M 2014 Results

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