Assicurazioni Generali S.p.a. · MIL:G
Assicurazioni Generali — Investor Day (2013)
23 slides from Assicurazioni Generali's investor day presentation, Jun 24, 2013
Slide 1: Towards industrial excellence
Towards industrial excellence Sergio Balbinot Group Chief Insurance Officer
Slide 2: Chief Insurance Officer: mission and guiding principles
Chief Insurance Officer: mission and guiding principles 2 Steers and controls the industrial performance of the Group The guiding principles 1 Outstanding technical performance Technical and operational excellence is an unchanged ambition 2 Operational excellence § The past: Governance and internal
Slide 3: Chief Insurance Officer: new organisation structure
Chief Insurance Officer: new organisation structure 3 Chief Insurance Officer Chief Technical Reinsurance, Officer Claims & Processes Bus.Perf. Global P&C P&C Sales & Treaty Treaty Cat Facultative Claims Global Life Op. Exc. Mgmt Units Retail Corporate Innovation reinsurance retrocession Modelling R
Slide 4: Strategic priorities
Strategic priorities 4 Strategic priorities How to achieve them § Structured performance review § Product excellence § Strengthening capabilities in all core areas of the business (technical, distribution) in order Raising the ü Group Guidelines (Life, P&C UW limits) to achieve the highest level of
Slide 5: The way towards industrial excellence
The way towards industrial excellence 5 Theroadmap The way towards industrial excellence § Increase life value and reduce capital absorption ü Rebalancing business mix Life ü Limit capital deployed on guarantees ü Disciplined approach for profit sharing and credit rates § Rebalance the mix towards P
Slide 6: Life trends: low interest rate environment with high volatility
Life trends: low interest rate environment with high volatility 6 German bund, 10 years Impacts on life market ▪ Current macro economic environment and low interest 5 4 rates impacting life business, both on volumes and on 3 (%) value 2 ▪ Increased competition from banks 1 0 2007 2008 2009 2010 2011
Slide 7: Life: evolution of our portfolio (1/2)
Life: evolution of our portfolio (1/2) 7 Increasing life reserves … … fuelled by positive net inflows (Euro bn) Single premiums Regular premiums (Euro bn) 293 295 16.1 16.1 268 246 134 135 106 120 7.0 5.8 141 148 159 160 1.1 2008 2009 2010 2011 2008 2009 2010 2011 9M12 Life reserves by country & typ
Slide 8: Life: evolution of our portfolio (2/2)
Life: evolution of our portfolio (2/2) 8 Reserve guarantee development (%) Highlights The way towards industrial excellence 3.20 3.00 ▪ Over the last 8 years 2.80 portfolio average guarantee 2.60 has reduced by about 90 bps ▪ The share of “at maturity” 2.40 2.20 guarantee has reached 11% 2.00 2003 2
Slide 9: Life: evolution of new business (1/2)
Life: evolution of new business (1/2) 9 APE development: stable regular premiums (Euro bn) 9M 2012 APE by country & product (Euro bn) (Euro bn) 16% 15% Group 69% 5.3 5.2 4.8 4.8 1.1 3% 2% 2.2 2.3 Single 1.8 1.7 3.4 3.2 0.7 9% 1.3 0.6 1.3 18% 95% 21% 0.4 29% 0.1 Regular 3.0 3.0 3.1 3.1 42% 45% 2.0 73
Slide 10: Life: evolution of new business (2/2)
Life: evolution of new business (2/2) 10 Increasing share of low capital intensive products APE by type of guarantee At maturity Matched Yearly basis>0 w/o guarantee Yearly basis=0 11% 19% 56.8% 21% 22% 67.3% 21% 67.7% Low capital 30% intensive 30% 19% 29% 26% products 3% 2% 12% 2% 3% 3% 15% 25% 14%
Slide 11: Life: our strategic priorities going forward
Life: our strategic priorities going forward 11 Profitability enhancement Key levers Key metrics Key metrics § Rebalance product mix § Riskiness/capital § Emphasis on both technical sources of profit absorption § Optimise product design and safeguarding financial margin in low interest § Profitabili
Slide 12: Life: new product approval example
Life: new product approval example 12 Guiding principle Assessment of life product by country (1) Generali Group Relative to group average Country 1 Better Country 2 Country 3 Worse Country 4 Country 5 Country 6 All new products approved by the Corporate Centre and the full range of products open fo
Slide 13: P&C: market trends
P&C: market trends 13 GDP evolution in Eurozone (%) Trends on P&C market 5 § The Eurozone GDP performance had a negative impact 0 on the market ü Commercial Lines technical performance has -5 2006 2007 2008 2009 2010 2011 deteriorated as companies are more price sensitive (seek to reduce costs) New
Slide 14: P&C: portfolio evolution
P&C: portfolio evolution 14 Not only growth but also focus on portfolio profitability GWP development Gross direct premiums by country (9M 2012) (Euro bn) (Euro bn) Motor 22.8 4.9 60% 41% Group 59% Non Motor 22.0 21.6 22.1 16.9 17.4 3.4 49% 3.0 2.7 28% 38% 40% 1.8 40% 1.1 51% 72% 62% 60% 60% 60% 40%
Slide 15: P&C: challenging operating environment for Motor
P&C: challenging operating environment for Motor 15 Pressure on Average premium … …largely compensated by Risk premium decrease (Euro) TPL Retail, Average premium development TPL Retail, Risk premium development Italy Italy Germany Germany 120 500 300 120 110 470 110 270 100 100 440 240 90 90 410 21
Slide 16: P&C: our priorities going forward
P&C: our priorities going forward 16 Create Value Improve current profitability Capture new opportunities § Pricing: greater sophistication in pricing (more discrimination of individual risk profiles) to spin a virtuous cycle of § Expand our presence § Increase weight portfolio cleaning and better o
Slide 17: P&C: we will focus on technical expertise
P&C: we will focus on technical expertise 17 Strong Group commitment to technical expertise § Extended scope by geography and LoB Technical initiatives based on new § Stringent application designing principles § Direct link with budget Pricing - key levers Claims management - key levers § Driver sel
Slide 18: Reinsurance centralisation: leveraging risk & capital management (1/2)
Reinsurance centralisation: leveraging risk & capital management (1/2) 18 Full centralisation and optimisation of treaty reinsurance, from 2013 Moving from local … … to Group protection Country view Group reinsurance view Group reinsurance Retention Market reinsurance The rationale The benefits Rein
Slide 19: Reinsurance centralisation: leveraging risk & capital management (2/2)
Reinsurance centralisation: leveraging risk & capital management (2/2) 19 New reinsurance structure … … maximising group efficiency § Internal reinsurance provided at market § Maximum efficiency and terms and conditions, in compliance diversification benefit with requirements of local regulators and
Slide 20: Aiming at client-centricity and channel excellence
Aiming at client-centricity and channel excellence 20 Client value maximisation Key levers § Strengthen retention § Mapping Group best practices in customer value management § Increase cross & up-selling § Identification of the drivers for extracting customer potential and Leverage on our most § Opt
Slide 21: Key take-aways
Key take-aways 21 Strong commitment on industrial excellence Raising the bar of Life and P&C technical ambition Increasing customer value Enhancing commercial effectiveness Assicurazioni Generali Group Investor Day
Slide 22: Final remarks
Final remarks Mario Greco Group Chief Executive Officer
Slide 23: Generali: our vision for 2015
Generali: our vision for 2015 23 Reshaped approach to maximise value creation 1 Focused on core insurance business, with greater contribution from P&C 2 Stronger capital position and disciplined balance sheet management 3 Superior customer acquisition and retention, with focus on retail and affluent