Assicurazioni Generali S.p.a. · MIL:G
Assicurazioni Generali — FY2009 Earnings Presentation
93 slides from Assicurazioni Generali's earnings presentation, Mar 18, 2010
Slide 1: Generali Group 2009 Results
Generali Group 2009 Results Milan, March xxx,18, March 2010 2010 March 2006
Slide 2: Agenda
Agenda 2 I. Strategic Overview & 2009 at a Glance II. Group Financials III. Final Remarks IV. Backup Assicurazioni Generali Group – FY 2009 results
Slide 3: I. Strategic Overview & 2009 at a Glance
Agenda 3 I. Strategic Overview & 2009 at a Glance Assicurazioni Generali Group – FY 2009 results
Slide 4: 2009: solid results in a challenging environment
I. STRATEGIC OVERVIEW & 2009 AT A GLANCE 2009: solid results in a challenging environment 4 Premiums above Euro 70 bn (+6.2%) Life net inflows more than doubled at Euro 16 bn Shareholders’ Equity at Euro 16.7 bn (+47.2%) Net result at Euro 1,309 m (+ 52.1%) Cash dividend per share at Euro 0.35 (+133
Slide 5: Restoring profitability from 2H09
I. STRATEGIC OVERVIEW & 2009 AT A GLANCE Restoring profitability from 2H09 5 Operating result (Euro m) 2008 3,932 2009 530 905 3,676 Δ4Q +82.8%(1) 814 1,342 928 925 1,155 1,009 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY (1) Excluding Intesa Vita in 4Q08 and 4Q09, according to IFRS 5 treatment for discontinued op
Slide 6: A solid capital structure
I. STRATEGIC OVERVIEW & 2009 AT A GLANCE A solid capital structure 6 Shareholders’ Equity (Euro m) Solvency Margin (%) +24.8%(1) 123% FY08 16,652 177% 11,313 128% FY09 (1) 187% Solvency 1 FY08 FY09 Economic Solvency calibrated on AA rating (1) On like for like basis, considering the merger with Alle
Slide 7: Proposed cash dividend
I. STRATEGIC OVERVIEW & 2009 AT A GLANCE Proposed cash dividend 7 Cash dividend per share (Euro) 0.90 0.75 0.54 +133% 0.43 0.28 0.33 0.35 (1) 0.15 2002 2003 2004 2005 2006 2007 2008 2009 Payout 41.5% 41.7% 39.7% 41.8% 41.6% Ratio(2) 35.9% 24.6% (1) 2008 dividend included also Euro 0.63=dividend in s
Slide 8: 2009 IFRS Result allocation: Cash Dividend and Reinvestment
I. STRATEGIC OVERVIEW & 2009 AT A GLANCE 2009 IFRS Result allocation: Cash Dividend and Reinvestment 8 (Euro bn) 0.5 Cash Dividend payable in May 2010 1.5 Reinvestment in life business, generating 1.1 of IFRS Result 1.3 Additional Value Cost of investment in Life New -0.9 Business Additional Require
Slide 9: Outlook 2010: improving results
I. STRATEGIC OVERVIEW & 2009 AT A GLANCE Outlook 2010: improving results 9 Operating results outlook (Euro bn) Life Non Life Total(1) 4.2 max 3.7 3.6 min 2.5 2.6 max 2.2 min 1.8 max 1.3 1.4 min FY09 FY10E FY09 FY10E FY09 FY10E Natural catastrophes & financial market conditions can influence the expe
Slide 10: 2009: Creating value in a challenging environment
I. STRATEGIC OVERVIEW & 2009 AT A GLANCE 2009: Creating value in a challenging environment 10 2009 Strategic priorities Main deliverables 16.1 Life Net Inflows 7.0 +83.5%(1) (Euro bn) 286.4 Customer Process Life Net Technical 261.4 Reserves +9.6%(1) centricity efficiency (Euro bn) 21.7 Value creatio
Slide 11: Strategic overview: focus on our main geographies – Italy
I. STRATEGIC OVERVIEW & 2009 AT A GLANCE Strategic overview: focus on our main geographies – Italy 11 Further consolidation of operations, exploit innovative distribution opportunities, attention to portfolio protection 2009 Initiatives 2009 Results 2010 Actions Protection of portfolio through up-
Slide 12: Strategic overview: focus on our main geographies – France
I. STRATEGIC OVERVIEW & 2009 AT A GLANCE Strategic overview: focus on our main geographies – France 12 Enhance profitability through selective growth, technical discipline and efficiency measures 2009 Initiatives 2009 Results 2010 Actions Customer Leverage on multi-distribution competitive Life
Slide 13: Strategic overview: focus on our main geographies – Germany
I. STRATEGIC OVERVIEW & 2009 AT A GLANCE Strategic overview: focus on our main geographies – Germany 13 Delivering our promises in efficiency enhancement and exploiting the outstanding distribution power 2009 Initiatives 2009 Results 2010 Actions Customer Exploit distribution competitive advantage
Slide 14: Strategic overview: focus on our main markets – CEE
I. STRATEGIC OVERVIEW & 2009 AT A GLANCE Strategic overview: focus on our main markets – CEE 14 High profitability. Growth above market. The region confirms untapped potential Initiatives 2009 Results 2009 Actions 2010 Customer Focus on Client retention Total GWP: +1.4%vs market decrease (- In
Slide 15: Strategic overview: focus on growth options – China
I. STRATEGIC OVERVIEW & 2009 AT A GLANCE Strategic overview: focus on growth options – China 15 Pursuing a sustainable growth 2009 Initiatives 2009 Results 2010 Actions Life GWP growth: +113% (vs. 10.4% of Customer Re-focus on traditional products to respond to foreign JV’s) Re-balance of Indi
Slide 16: Update on Group programs and country initiatives (2007-2009 Strategic Plan)
I. STRATEGIC OVERVIEW & 2009 AT A GLANCE Update on Group programs and country initiatives (2007-2009 Strategic Plan) 16 Benefits Achieved Impact on Target Actual Technical Investment General (Euro m) at FY09 at FY09 margin income expenses Group programs 835 904 466(1) 177(2) 261(3) Country initiativ
Slide 17: II. Group Financials
Agenda 17 II. Group Financials Profit & loss review Shareholders equity & Solvency I Life & P&C profitability RoEV Capital update Assicurazioni Generali Group – FY 2009 results
Slide 18: Revenue development by segment
II. GROUP FINANCIALS Revenue development by segment 18 (Euro m) FY09 ∆ like for like (%) 4Q09 ∆ like for like (%) Gross written premiums 70,530 +6.2 20,252 +20.1 Life(1) 48,894 +9.5 14,764 +30.9 P&C 21,636 -0.5 5,488 -1.7 Life annual premium equivalent(2) 5,188 +3.8 1,622 +29.2 (1) Including investm
Slide 19: Operating result by segment
II. GROUP FINANCIALS Operating result by segment 19 FY09 operating result (Euro m) 4Q09 operating result (Euro m) U (%)(1) U (%)(2) Life 2,451 611 operating result 1,980 +34.2 10 n.a. P&C 1,300 229 -38.6 -49.7 operating result 2,118 455 Financial services 432 90 +30.3 +0.8 operating result 332 89 Op
Slide 20: Focus on operating result
II. GROUP FINANCIALS Focus on operating result 20 Operating result by country(1) Operating result breakdown(1) (Euro m) (Euro m) FY08 FY09 ∆% Italy 1,758 1,188 -25.9(2) 118 60 France 688 704 +2.3 Germany 505 551 +8.9 6 200 CEE 591 653 +10.5 20 243 1,010 50 RoE 781 823 +5.3 336 358 259 RoW 106 264 +1
Slide 21: From operating result to net result
II. GROUP FINANCIALS From operating result to net result 21 (Euro m) FY08 FY09 U (%) Total operating result 3,932 3,676 -2.7(1) Non operating investment income (1,204) (526) (2) Non-operating holding expenses (701) (737) Net other non operating expenses (491) (245) Total non operating result (2,396)
Slide 22: Net result without IFRS accounting mismatch
II. GROUP FINANCIALS Net result without IFRS accounting mismatch 22 AFS reserve (Euro m) IFRS accounting mismatch: Recovery of 1H09 impaired assets reported in AFS reserve (Euro 186 m) 730 Unrealised gains on hedged AFS equities (Euro 138 m) 324 Net result w.o. IFRS accounting mismatch (Euro m)
Slide 23: Focus on non operating items: non operating investment income
II. GROUP FINANCIALS Focus on non operating items: non operating investment income 23 Non operating investment income (Euro m) 1,216 (139) (526) (1,204) (399) Δ Euro m Net realised Net Fair Value FY08 gains imparments thr. P&L FY09 FY09 392 (694) (225) FY08 791 (1,910) (86) Δ% -50.4% +63.7% -162.9%
Slide 24: Focus on non operating items: interest expenses on financial debt
II. GROUP FINANCIALS Focus on non operating items: interest expenses on financial debt 24 Interest expenses on financial debt (Euro m) Total financial debt(1) (Euro 12.6 bn) Other Senior 707 13.8% 35.2% 668 26(2) 681 FY08 FY09 Average cost & maturity of financial debt(1) (%) FY08 FY09 Average cost (
Slide 25: A balanced investment portfolio
II. GROUP FINANCIALS A balanced investment(1) portfolio 25 Own investments (Euro 299.0 bn) at 31.12.09 Fixed income(2) Other(3) 81.5% 4.3% Government bonds represent 54.7% of total bond portfolio Real Estate High quality corporate bond 4.9% portfolio. 84.3% rated ≥ A Equity portfolio benefited
Slide 26: IFRS Shareholders' Equity roll forward
II. GROUP FINANCIALS IFRS Shareholders’ Equity roll forward 26 (Euro m) +24.8%(1) 1,309 16,652 2,531 (129) 1,835 11,313 (207) Shareholders’ Dividend paid in Change in AFS Alleanza FY 2009 Net Other Shareholders’ Equity FY08 2009(2) reserve minorities Result Equity FY09 Change in AFS reserve (Euro m)
Slide 27: Total comprehensive income
II. GROUP FINANCIALS Total comprehensive income(1) 27 (Euro m) 3,001 2,528 U Euro 611 +5.3 bn (182) (1,321) (1,534) (2,337) 1H08 9M08 FY08 1Q09 1H09 9M09 FY09 (1) Total Comprehensive Income = Change in shareholders’ equity during the period related to income and expenses recognized in profit or loss
Slide 28: Solvency I update
II. GROUP FINANCIALS Solvency I update(1) 28 (Euro bn) Required margin Available margin 123% Main drivers of change 128% Consolidated result: +11%pts 21.6 Proposed dividends: -4%pts 19.4 Financial markets: +7%pts 16.9 15.8 Increase in required margin due to strong life business growth: -9%pt
Slide 29: Life profitability - operating result
II. GROUP FINANCIALS Life profitability - operating result 29 Strong recovery of Operating result driven by investment driver Life Operating Result by driver FY08 FY09 U(%) (Euro m) FY08 1,827 Like for like (1) Like for like(1) Tech.M (89) Technical Margin 6,073 5,984 -1.5 Inv.R 622 Investment Resul
Slide 30: Strong growth in life business
II. GROUP FINANCIALS Strong growth in life business 30 Life gross written premiums (Euro bn) Life net technical reserves(2) (Euro m) +9.5%(3) +9.6% 9.4 286.4 15.7 261.4 46.8 48.9 Δ FY08 FY09 FY08 Traditional Unit Linked FY09 Life net inflows by country(1) (Euro m) Country FY08 FY09 Δ%(3) FY 2009 243
Slide 31: Life investment strategy and yields
II. GROUP FINANCIALS Life investment strategy and yields(1) 31 Bond duration remains stable at 6 Slight increase of the exposure to corporate bonds Increased equity exposure due to market rebound Preference for stocks with high dividend and/or exposed to emerging markets Life segment own inv
Slide 32: Life & Health EV: New business value and profitability
II. GROUP FINANCIALS Life & Health EV: New business value and profitability 32 Despite the difficult year APE increases by 3.8% on a like for like basis (+6.6% net of the extraordinary Riester production in Germany in 2008) New Business Value over 1.1 bn, despite the negative impact of the adopt
Slide 33: P&C profitability - operating result
II. GROUP FINANCIALS P&C profitability - operating result 33 P&C Operating result affected by loss ratio worsening and lower current yields P&C Operating Result by driver FY08 2,118 (Euro m) FY08 FY09 U(%) (280) Technical Result 554 274 -50.6 Tech.R Investment Result 1,702 1,252 -26.5 Inv.R (450) Ot
Slide 34: P&C Gross Written Premiums
II. GROUP FINANCIALS P&C Gross Written Premiums 34 Stable premiums thanks to our strong and diversified distribution networks Growth in Non Motor business; decelerating Motor contraction Historical Like for like(1) (Euro m) FY08 FY09 U% U% Italy 7,495 7,353 -1.9 -1.9 France 3,730 3,754 +0.7 +0.7
Slide 35: P&C profitability – Net combined ratio (1/2)
II. GROUP FINANCIALS P&C profitability – Net combined ratio (1/2) 35 Combined ratio (%) Combined ratio by country (%) +1.9%pts. FY08 FY09 ∆ %pts. 1.9 98.3 96.4 (0.1) Italy 98.9 102.4 +3.5 27.2 27.2 France 97.9 99.0 +1.1 Germany 95.9 95.6 -0.3 71.1 CEE 84.6 87.9 +3.3 69.2 RoE 95.4 96.8 +1.4 FY08 U Ex
Slide 36: P&C profitability – Net combined ratio (2/2)
II. GROUP FINANCIALS P&C profitability – Net combined ratio (2/2) 36 Loss ratio (%) Reserving ratio (%) 71.1 4%pts 0.7 0.1 1.1 69.2 145% 149% Nat Prior Current FY08 CAT years year(1) FY09 FY 2009 1.3 -3.5 73.3 71.1 FY08 FY09 FY 2008 0.6 -3.6 72.2 69.2 (1) Excluding natural catastrophes Expense ratio
Slide 37: P&C investment strategy and yields
II. GROUP FINANCIALS P&C investment strategy and yields(1) 37 Enhancing current return: Lengthening duration strategy on government bonds from 4 to 4.6 years implemented in 2H09 improves current income by 16 bps Increase corporate bonds and BBB exposures in 2H09 produces a benefit on current inc
Slide 38: Financial segment
II. GROUP FINANCIALS Financial segment 38 Operating result (Euro m) Net fees and commissions (Euro m) +30.3% +12.6% 792 704 432 332 FY08 FY09 FY08 FY09 Third party AUM (Euro bn) Cost/income ratio (%) +21.9% -2.5%pts 83.6 68.6 66.2 63.7 FY08 FY09 FY08 FY09 Assicurazioni Generali Group – FY 2009 resul
Slide 39: Group Embedded Value roll-forward
II. GROUP FINANCIALS Group Embedded Value roll-forward 39 (Euro m) 3,061 (439) (207) 27,337 2,415 24,922 22,507 EV FY08 Extraordinary Opening Normalised Investment Cash EV FY09 Operations (2) EV 09 Earnings and Tax Dividend Variances 08 Return on embedded value Group embedded value Robust Group embe
Slide 40: From IFRS Equity to Group Embedded Value
II. GROUP FINANCIALS From IFRS Equity to Group Embedded Value 40 High level of Adjusted Net Asset Value, showing the strength of our tangible equity Limited volatility of our Embedded Value over time Quality of business justifies higher P/EV ratios 15,306 27,337 7,051 16,652 1,465 (6,848) 12,0
Slide 41: Economic Solvency and Capital Allocation
II. GROUP FINANCIALS Economic Solvency and Capital Allocation 41 Economic Solvency Coverage (ESC) Economic Capital (EC) (Euro bn) FY08 34.3 FY09 (Euro bn) FY08 FY09 27.9 Sub. EC Life 18.4 23.0 Debt Sub. Debt ESC 177%(1) ESC 187%(2) EC P&C 7.1 7.1 EC Financial 1.9 1.9 18.1 15.6 EC total 27.4 31.9 Gro
Slide 42: III. Final Remarks
Agenda 42 III. Final Remarks Assicurazioni Generali Group – FY 2009 results
Slide 43: 2009: solid results in a challenging environment
III. FINAL REMARKS 2009: solid results in a challenging environment 43 Premiums above Euro 70 bn (+6.2%) Life net inflows more than doubled at Euro 16 bn Shareholders’ Equity at Euro 16.7 bn (+47.2%) Net result at Euro 1,309 m (+ 52.1%) Cash dividend per share at Euro 0.35 (+133%) Embedded Value at
Slide 44: IV. Backup
Agenda 44 IV. Backup P&L Balance sheet Life & health MCEV Capital Assicurazioni Generali Group – FY 2009 results
Slide 45: IV. Backup
Agenda 45 IV. Backup P&L Balance sheet Life & health MCEV Capital Assicurazioni Generali Group – FY 2009 results
Slide 46: Outlook 2010
IV. BACK UP Outlook 2010 46 Operating results outlook (Euro bn) -13% / -25% 4.8 4.2 -4% / -19% 3.9 max 3.7 3.6 -10% / -30% min 2.7 2.6 2.5 max -7,7% 2.2 2.1 2.0 min 2.0 1.8 max 1.3 1.4 min FY07 FY08 FY09 FY10E FY07 FY08 FY09 FY10E FY07 FY08 FY09 FY10E Life Non Life Total(1) Natural catastrophes & fi
Slide 47: FY09 Total gross written premiums
IV. BACK UP FY09 Total gross written premiums 47 Euro (m) Total gross written premiums Gross life written premiums(1) Gross P&C written premiums Weight on Weight on Weight on YoY consoli- YoY consoli- YoY consoli- Country GWP % increase dated GWP % increase dated GWP % increase dated (2) (2) (2) Ita
Slide 48: Life premiums by country & business line
IV. BACK UP Life premiums by country & business line 48 Life FY09 Unit/index (Euro m) Traditional linked Health Group Total Italy 87.3% 2.1% 0.0% 10.6% 12,656 France 76.4% 10.7% 6.5% 6.4% 12,204 Germany 50.6% 26.0% 16.6% 6.7% 12,228 CEE 70.0% 19.5% 9.3% 1.2% 1,672 RoE 29.8% 55.5% 3.7% 11.1% 6,809 Of
Slide 49: P&C premiums by country & business line
IV. BACK UP P&C premiums by country & business line 49 P&C FY09 Accident/ (1) (Euro m) Motor Health Personal Commercial Total Italy 43.2% 18.7% 11.3% 26.8% 7,271 France 29.9% 13.2% 38.6% 18.4% 3,541 Germany 36.8% 15.2% 38.6% 9.4% 3,031 CEE 54.6% 10.7% 14.0% 20.8% 2,182 RoE 41.0% 13.7% 18.7% 26.6% 4,
Slide 50: Ratios
IV. BACK UP Ratios 50 Life – Expense ratio (%) P&C – Combined ratio (%) 96.4 98.3 Expense 27.2 ratio 27.2 Loss 11.2 10.5 69.2 71.1 ratio FY08 FY09 FY08 FY09 Total – Expense ratio (%) 16.1 15.4 FY08 FY09 Assicurazioni Generali Group – FY 2009 results
Slide 51: FY09 combined ratio reconciliation
IV. BACK UP FY09 combined ratio reconciliation 51 (Euro m) A Net earned premiums (net of consolidation adjustments) 19,932.7 B Consolidated net insurance benefits and claims 14,176.7 Consolidated acquisition costs 4,197.2 Consolidated administration costs 1,290.8 Non insurance related administration
Slide 52: Ratios by country
IV. BACK UP Ratios by country 52 (%) ITA FRA GER CEE SPA AUT SWI Consolidated P&C Loss ratio FY09 79.9 70.8 65.6 58.1 69.5 68.9 64.8 71.1 FY08 75.8 70.5 65.1 55.5 69.8 68.5 65.1 69.2 P&C Expense ratio FY09 22.5 28.2 30.0 29.8 25.1 27.1 29.5 27.2 FY08 23.1 27.3 30.9 29.1 23.7 27.6 29.3 27.2 P&C Combi
Slide 53: Reclassified P&L account
IV. BACK UP Reclassified P&L account 53 (Euro m) Total FY 08 (1) FY 09 Operating result 3,932 3,676 Net earned premiums 61,982 64,036 Net insurance benefits and claims (44,540) (68,188) Acquisition and administration costs(2) (11,183) (11,166) Net fee and commission income and net income from financ
Slide 54: Reclassified P&L account by segment – FY08
IV. BACK UP Reclassified P&L account by segment – FY08 54 Unallo- cated holding Consolidation (Euro m) Life Non life Financial(1) expenses adjustments Total Operating result 1,980 2,118 332 (291) (206) 3,932 Net earned premiums 42,035 19,948 0 - - 61,982 Net insurance benefits and claims (30,788) (1
Slide 55: Reclassified P&L account by segment – FY09
IV. BACK UP Reclassified P&L account by segment – FY09 55 Unallo- cated holding Consolidation (Euro m) Life Non life Financial(1) expenses adjustments Total Operating result 2,451 1,300 432 (269) (239) 3,676 Net earned premiums 44,103 19,933 0 - - 64,036 Net insurance benefits and claims (54,001) (1
Slide 56: Life operating result
IV. BACK UP Life operating result 56 Life operating result (Euro m) Life Operating result by country (Euro m) (Euro m) FY08 FY09 U%(1) +34.2%(1) Italy 1,207 1,010 -4.2 France 346 455 +31.5 Germany 140 241 +72.1 2,451 CEE 125 297 +137.6 1,980 RoE 117 265 +126.5 Of which: Spain 100 89 -11.0 Austria 15
Slide 57: P&C operating result
IV. BACK UP P&C operating result 57 P&C operating result (Euro m) P&C Operating result by country (Euro m) (Euro m) FY08 FY09 U% -38.6% Italy 493 60 -87.8 France 332 243 -26.8 Germany 317 259 -18.3 CEE 450 336 -25.3 2,118 RoE 483 358 -25.9 Of which: 1,300 Spain 172 151 -12.2 Austria 106 92 -13.2 Swi
Slide 58: Other operating and non operating costs by segment
IV. BACK UP Other operating and non operating costs by segment 58 Life Non Life Financial (Euro m) FY08 FY09 FY08 FY09 FY08 FY09 TOTAL NET OPERATING EXPENSES (82.6) (83.4) (267.4) (271,7) (37.6) (51.8) Restructuring costs (13.1) (15.2) (66.8) (76.3) (60.8) (44.8) Other net non operating expenses(1)
Slide 59: Focus on impairments
IV. BACK UP Focus on impairments(1) 59 (Euro m) Life P&C Financial Total FY08 FY09 FY08 FY09 FY08 FY09 FY08 FY09 Net impairments Equity instruments 2,988 857 730 248 1 4 3,719 1,108 Fixed income 455 37 105 26 33 3 592 67 Real estate 59 240 12 27 - - 70 267 Other investments(2) 432 31 220 191 8 29 66
Slide 60: IV. Backup
Agenda 60 IV. Backup P&L Balance sheet Life & health MCEV Capital Assicurazioni Generali Group – FY 2009 results
Slide 61: Consolidated balance sheet
IV. BACK UP Consolidated balance sheet 61 Assets Liabilities (Euro bn) FY08 FY09 (Euro bn) FY08 FY09 Shareholders’ Equity Intangible assets 9.3 10.4 (Group share) 11.3 16.7 Investments 327.1 341.5 Minority interests 4.2 3.3 Shareholders’ Equity 15.5 20.0 Cash 10.5 10.5 Subordinated and financial lia
Slide 62: FY09 Assets Under Management
IV. BACK UP FY09 Assets Under Management 62 Total Euro 425 bn Esposizioni nette a Third parties AUM governativi di Grecia, Spagna, 83.6 Portogallo e Irlanda 42.5 Unit Linked Available for sale Loans Fixed income 59.0% 27.2% instruments(2) 81.5% Other(3) Real Estate (6) 4.3% 4.3% 299.0 Real Estate (4
Slide 63: FY09 Own Investments at amortized cost and fair value
IV. BACK UP FY09 Own Investments at amortized cost and fair value(1) 63 Total Euro 299 bn Fixed income instruments 82.9% Of which bonds 78.4% Equity 199.9 13.9% Fixed income instruments Other 78.6% 3.2% Of which bonds 56.1% Real estate Of which loans 22.5% 12.8% Other 6.6% 99.2 Investments at amorti
Slide 64: FY09 book value & market value of Own Investments
IV. BACK UP FY09 book value & market value of Own Investments(1) 64 (Euro m) Life P&C Financial Total(2) Asset classes BV MV BV MV BV MV BV MV Equity 22,948 22,948 4,598 4,598 335 335 27,881 27,881 Fixed income instruments 210,180 212,755 21,874 22,101 12,051 12,201 243,948 246,900 Government 105,76
Slide 65: Quality of FY09 fixed income portfolio
IV. BACK UP Quality of FY09 fixed income portfolio 65 Fixed income portfolio composition (Euro 243.9 bn) By issuer (%) Average bond portfolio 10.3 16.4 12.9 duration by segment (years) 39.4 53.4 39.4 44.6 Life 6.0 30.0 50.3 47.7 39.0 16.6 P&C 4.0 Life P&C Financials Total Government Corporate Other
Slide 66: Focus on FY09 government bond portfolio
IV. BACK UP Focus on FY09 government bond portfolio 66 (Euro 116.3 bn, 47.7% of total fixed income portfolio) % Split by rating Total % Split by country Total AAA 40.4 Italy 40.0 AA 51.6 Germany 17.0 A 3.9 France Limited net 8.9 exposure to BBB 3.1 RoE Portugal, Ireland, 28.6 Greece and Spain: Euro
Slide 67: Focus on FY09 corporate bond portfolio
IV. BACK UP Focus on FY09 corporate bond portfolio 67 (Euro 96.1 bn, 39.4% of total fixed income portfolio) % Split by rating Total % Split by industry Total AAA 29.3 Financials(1) 67.8 AA 17.5 Utilities 7.8 A 37.4 ABS 4.1 BBB 11.4 Telecom 3.8 Not investment grade 1.3 Industrial 4.0 Not rated 3.1 Ot
Slide 68: Focus on FY09 equity portfolio
IV. BACK UP Focus on FY09 equity portfolio 68 (Euro 27.9 bn) FY09 Group net equity exposure % split by industry Total 27.9 Financials 24.9 (0.3) Consumer 10.4 Telecom 8.8 7.4 Industrial 7.2 (18.8) (1.0) (0.3) Other 20.2 Gross Hedging Policyholders’ Taxes Minorities Net equity interests equity exposu
Slide 69: FY09 Group real estate assets (1/2)
IV. BACK UP FY09 Group real estate assets (1/2) 69 Country Total Inv. BV % of Total Inv. MV % of (Euro bn) the total (Euro bn) the total Italy 6.4 36% 9.6 41% France 4.0 22% 5.2 22% Germany 3.8 21% 3.9 16% CEE 0.1 1% 0.1 1% RoE(1) 3.5 20% 4.8 20% RoW(2) 0.1 1% 0.1 0% Total 17.9 100% 23.8 100% (1) Ro
Slide 70: FY09 Group real estate assets (2/2)
IV. BACK UP FY09 Group real estate assets (2/2) 70 Direct Investments in leader countries Country Area % of MV % of (sqm m) total area (Euro bn) Total MV Italy 2.3 34% 8.4 39% France 1.4 12% 5.2 24% Germany 1.2 17% 3.2 15% CEE 0.1 2% 0.1 1% RoE 1.8 26% 4.7 22% RoW 0.0 0% 0.1 0% Total 6.8 100% 21.8 1
Slide 71: Investment yields
IV. BACK UP Investment yields 71 Bonds and Loans Equities Investment properties (%) FY08 FY09 FY08 FY09 FY08 FY09 LIFE Current return(1) 4.8 4.5 4.1 3.1 4.8 4.8 Total P&L return(2) 4.0 5.5 -14.9 3.4 9.0 4.7 Comprehensive return(3) 4.4 6.9 -49.8 22.4 - - NON LIFE Current return(1) 4.9 4.0 4.3 3.5 5.0
Slide 72: IFRS Shareholders' equity roll forward
IV. BACK UP IFRS Shareholders’ equity roll forward 72 IFRS Shareholders’ equity roll forward (Euro m) +4.0%(1) 18 37 86 16,652 2,531 13,577 415 (11) 11,313 Shareholders’ Shareholders’ Δ in AFS 4Q 2009 Alleanza Δ Currency Δ Cash Flow Other Shareholders’ Equity FY08 Equity 9M09 Reserve Net Result mino
Slide 73: Stress tests on Solvency I and Shareholders' equity
IV. BACK UP Stress tests on Solvency I and Shareholders’ equity 73 Impact on regulatory solvency ratio Impact on FY09 Shareholders’ equity (Euro (%) bn) Total ratio FY09 128 (1) (1) Equities -30% 114 Equities -30% (2.3) Interest rate +100bps 117 Interest rate +100bps (1.8) Interest rate -100bps 139
Slide 74: AFS reserve breakdown
IV. BACK UP AFS reserve breakdown 74 (Euro m) FY08 1H09 FY09 Fixed income instruments (333) (454) 225 Government 446 (38) 281 Corporate (779) (416) (56) Equity (621) (263) 475 Investment funds and other (152) (172) 29 TOTAL (1,106) (889) 730 Assicurazioni Generali Group – FY 2009 results
Slide 75: Financial debt schedule
IV. BACK UP Financial debt schedule 75 Financial debt breakdown by expiry date/call date (Euro m) 2,500 2500 2,000 2000 1,500 1500 1,000 1000 500 500 00 (1) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2024 2026 Bonds Hybrid Subordinated Senior Loans (1) Pro forma including refin
Slide 76: FY09 technical reserves
IV. BACK UP FY09 technical reserves 76 (Euro m) Traditional Linked TOTAL Life net technical reserves(1) Italy 73,839 6,930 80,769 France 61,465 13,096 74,561 Germany 68,783 10,105 78,888 CEE 5,244 1,070 6,314 GROUP TOTAL 243,812 42,951 286,404 (1) Including investment contracts for € 11,404 million
Slide 77: Operating ratio on investments
IV. BACK UP Operating ratio on investments 77 Life operating ratio on investments (%) FY08 (%) FY09 (%) U(%pts.) Italy 1.2 1.3 0.1 France 0.5 0.7 0.2 Germany 0.2 0.3 0.1 CEE 2.9 4.8 2.0 GROUP TOTAL 0.7 0.9 0.2 P&C operating ratio on investments (%) FY08 (%) FY09 (%) U(%pts.) Italy 3.7 0.5 -3.2 Franc
Slide 78: Number of shares
IV. BACK UP Number of shares(1) 78 Ordinary Own Shares Shares issued shares outstanding (1) (2) (1-2) Weighted number of shares outstanding in year ending 12.31.2008 1,348,892,498 shares outstanding at 12.31.2008 1,410,113,747 64,176,653 1,345,937,094 Capital increase 146,746,842 - 146,746,842 Stock
Slide 79: Per share indicators
IV. BACK UP Per share(1) indicators 79 (Euro) FY09 Earnings per share(1) 0.93 Dividend per share 0.35 Book Value per share(2) 10.8 ANAV per share(2) 7.8 Embedded Value per share(2) 17.7 (1) Calculated on the basis of weighted shares outstanding during (1,414,072,429) (2) Calculated on the basis of s
Slide 80: IV. Backup
Agenda 80 IV. Backup P&L Balance sheet Life & health MCEV Capital Assicurazioni Generali Group – FY 2009 results
Slide 81: Life & health EV roll-forward
IV. BACK UP Life & health EV roll-forward 81 (Euro m) of which -653m due to the of which 1,489m related to adoption of swap curve in Italy Economic Capital 1,538 276 23,683 1,128 ( 158 ) 2,023 21,765 ( 865 ) 19,817 ( 75 ) EV FY08 Model Perimeter, Adjusted Expected Operating Economic Capital EV FY09
Slide 82: FY09 Life Embedded Value sensitivity
IV. BACK UP FY09 Life Embedded Value sensitivity 82 Life Embedded Value Euro 23,683 m (%) Risk Free Rate +100bps 5.1% Risk Free Rate -100bps -10.4% Equity +10% 3.7% Equity -10% -4.1% Zero Liquidity Premium -4.4% Equity Implied Volatility +25% -1.5% Swaption Implied Volatility +25% -1.5% Assicurazion
Slide 83: Life & health new business: APE
IV. BACK UP Life & health new business: APE 83 (Euro m) APE Annual Premiums Single Premiums Like for like Like for like Like for like FY08 FY09 U% FY08 FY09 U% FY08 FY09 U% Italy 1,534 1,704 -1.2 916 1,102 -2.3 6,175 6,022 0.9 Germany 1,091 984 -10.7 994 838 -16.5 964 1,460 50.0 France 1,056 1,225 1
Slide 84: Life & health new business: Value and margins
IV. BACK UP Life & health new business: Value and margins 84 (Euro m) NBV Margins on APE Margins on PVNBP Historical Like for like FY08 FY09 U% U% FY08 FY09 ∆% pts FY08 FY09 ∆ %pts Italy 360 486 35.1 -5.6 23.5% 28.5% 5.1 2.8% 3.3% 0.6 Germany 184 174 -5.6 -6.6 16.9% 17.7% 0.8 1.7% 1.6% -0.2 France 1
Slide 85: Value of asset gathering
IV. BACK UP Value of asset gathering 85 Value of In-force business (Euro m) Value of new business (Euro m) 996 -1.3% 983 159 +6.1% 168 FY08 FY09 FY08 FY09 FY08 FY09 U FY08 FY09 U Assets under New inflows management (Euro bn) 52.1 53.9 +3.4% (Euro bn) 14.0 13.7 -2.5% Value of business In- Value of ne
Slide 86: IV. Backup
86 IV. Backup P&L Balance sheet Life & health MCEV Capital Assicurazioni Generali Group – FY 2009 results
Slide 87: Key performance indicators: RoEC and RoEV
IV. BACK UP Key performance indicators: RoEC and RoEV 87 Net of taxes and minorities (Euro m) FY08 FY09 FY09 Returns Returns Earnings Property & Casualty 19.3% 14.3% 1,023 Life & Health 15.0% 11.9% 2,459 Asset Management (Third Party) 7.5% 9.9% 188 Corporate segment -176 Return on Economic Capital 1
Slide 88: FY09 reconciliation of life & health MCEV with group EV (EBS basis)
IV. BACK UP FY09 reconciliation of life & health MCEV with group EV (EBS basis) 88 Life & Health (Euro m) Other GROUP MCEV IFRS equity 11.128 5.524 16.652 MTM of Assets 3.734 3.318 7.051 Goodwill (299) (6.549) (6.848) Life DAC, VoBA and other adjustments (2.378) (924) (3.301) MTM of Debt and Employe
Slide 89: EBS results: Risk capital diversification
IV. BACK UP EBS results: Risk capital diversification 89 Diversification Breakdown of Total diversification benefit at 32% considering both diversification Group risk capital within Business Units and Group diversification after diversification (Euro bn) Diversification Geographic breakdown within b
Slide 90: What's next
What’s next 90 April 24, 2010 – General Shareholders’ Meeting May 12, 2010 - 1Q 2010 Results August 5, 2010 - 1H 2010 Results November 11, 2010 - 9M 2010 Results Assicurazioni Generali Group – FY 2009 results
Slide 91: Investor Relations Team
Investor Relations Team 91 Paola Buratti (Tel.: +39-040-671157) Head of Investor Relations Email: paola_buratti@generali.com Stefano Burrino (Tel.: +39-040-671202) Email: stefano_burrino@generali.com Emanuele Marciante (Tel.: +39-040-671347) Assicurazioni Generali Email: emanuele_marciante@generali.
Slide 92: Disclaimer
Disclaimer 92 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 93: Generali Group 2009 Results
Generali Group 2009 Results March 18, 2010 March 2006
Assicurazioni Generali — FY2009 Earnings Presentation on 6ix