Assicurazioni Generali S.p.a. · MIL:G

Assicurazioni Generali — 9M 2013 Earnings Presentation

63 slides from Assicurazioni Generali's earnings presentation, Nov 7, 2013

  1. Slide 1: Generali Group 9M 2013 Results

    Generali Group 9M 2013 Results November 7, 2013

  2. Slide 2: Agenda

    Agenda 2 I. Overview Page 3 II. Group financials Page 5 III. Final remarks Page 24 IV. Backup Page 26 Assicurazioni Generali Group – 9M 2013 results

  3. Slide 3: I. 9M 2013 results overview

    Agenda 3 I. 9M 2013 results overview 9M 2013 results at a glance Following the announcement of the sale of related stake, Generali Banorte and Generali US Life RE qualified as a “non-current asset held for sale and discontinued operations”. The like for like change of written premiums and net cash i

  4. Slide 4: 9M 2013 results at a glance

    I. OVERVIEW 9M 2013 results at a glance 4 Operating result (Euro m) Net result (Euro m) +6.2%(1) +40.4% 1,591 3,292 3,361 1,133 9M12 9M13 9M12 9M13 (1) On like for like basis Shareholders’ equity (Euro m) Solvency I ratio (%) 152% at October 24 +1.1% -2%pts. 19,013 19,223 145 143 01/01/13(2) 9M13 01

  5. Slide 5: II. Group financials

    Agenda 5 II. Group financials Profit & loss review Life and P&C segment profitability Balance sheet and solvency I Assicurazioni Generali Group – 9M 2013 results

  6. Slide 6: Revenue development by segment

    II. GROUP FINANCIALS Revenue development by segment 6 Gross written premiums (Euro m) (Euro m) Contribution from US 9M12 Life Reassurance and excluding Like for Mexican operations 9M12 9M13 Mexico & US like ∆ Life Re +0.6%(2) 50,945 49,053 Gross written 1,552 50,945 49,393 49,053 +0.6% premiums 49,3

  7. Slide 7: Operating result by segment

    II. GROUP FINANCIALS Operating result by segment 7 9M13 total operating result (Euro m) Like for like  Life 2,071 -2.0% operating result 2,114 2,196 P&C 1,339 operating result +20.3% 1,113 1,158 Financial services 367 +14.8% operating result 320 Operating holding -268 +21.0% expenses -221 Consolida

  8. Slide 8: Focus on non operating result

    II. GROUP FINANCIALS Focus on non operating result 8 (Euro m) Non operating investment income (Euro m) Like for 9M12 9M13 92 26 like  333 (95) (304) Non operating (304) 26 n.m. investment income 9M12 9M13 Non operating (496) (597) +20.4% holding expenses Of which: interest costs (493) (564) +14.4%

  9. Slide 9: From operating result to net result

    II. GROUP FINANCIALS From operating result to net result 9 (Euro m) Net income (Euro m) 9M12 9M13  Total operating result 3,292 3,361 +6.2%(1) Non operating result (1,046) (889) -14.9%(1) +40.4% Consolidated result before 2,246 2,473 +16.7%(1) taxes and minorities 1,591 Income taxes (869) (738) -15

  10. Slide 10: II. Group financials

    Agenda 10 II. Group financials Profit & loss review Life and P&C segment profitability Balance sheet and solvency I Assicurazioni Generali Group – 9M 2013 results

  11. Slide 11: Life business development

    II. GROUP FINANCIALS Life business development 11 Gross written premiums (Euro m) Net technical reserves(2) (Euro bn) +0.9%(1) +3.4%(1) 33,500 32,808 313.8 7.5 3.0 320.9 53.6 56.6 (3.4) 260.2 264.3 Change in Unit 9M13 9M12 9M13 FY12 perimeter Traditional Linked Traditional Unit linked Net inflows by

  12. Slide 12: Life profitability – Operating result

    II. GROUP FINANCIALS Life profitability – Operating result 12 Life operating profitability hit by low interest rate environment Life Operating Result by driver (Euro m) 9M12 9M13  Like for like Technical Margin 4,365 4,264 +0.4% Investment Result 1,498 1,443 -1.2% Expenses (3,667) (3,636) +1.2% Ope

  13. Slide 13: Life investment strategy and yields

    II. GROUP FINANCIALS Life investment strategy and yields 13 Life segment own investments (%) +1.9%(1)  Current profitability remains affected by a low Euro 277.0 bn Euro 278.6 bn reinvestment yield environment 2.1% 2.0%  Reduction in Cash and cash equivalents, that have been 4.7% 3.4% 3.5% 3.6% de

  14. Slide 14: Life new business value and profitability

    II. GROUP FINANCIALS Life new business value and profitability 14  APE increases (+1.1%), with positive development of unit linked (+11.3%) and protection business (+7.7%);  Profitability improves to 20.9% thanks to the improved product mix and to the lower guarantees offered on saving business Ma

  15. Slide 15: P&C gross written premiums

    II. GROUP FINANCIALS P&C gross written premiums 15  Slightly positive performance of Motor lines, thanks in particular to the excellent performance in Germany  Non Motor lines remained stable, despite negative trends in Italy and France that offset the good performance in Germany  Commercial unde

  16. Slide 16: P&C profitability – Operating result

    II. GROUP FINANCIALS P&C profitability – Operating result 16 Confirmed strong P&C operating profitability driven by excellent technical results P&C Operating Result by driver (Euro m) 9M12 9M13  like for like Technical Result 490 699 +52.0% Investment Result 798 789 +0.7% Other (130) (149) +14.9% O

  17. Slide 17: P&C profitability – Net combined ratio (1/2)

    II. GROUP FINANCIALS P&C profitability – Net combined ratio (1/2) 17 Combined ratio (%) Combined ratio by country -1.6%pts. 9M12 9M13  96.6% 95.1% Italy 97.6% 91.5% -6.1%pts. (0.4) (1.1) France 98.5% 98.4% -0.1%pts. 27.2 26.7 Germany 94.9% 95.9% +1.0%pts. CEE 90.4% 89.3% -1.1%pts. 69.5 68.3 RoE 96.

  18. Slide 18: P&C profitability – Net combined ratio (2/2)

    II. GROUP FINANCIALS P&C profitability – Net combined ratio (2/2) 18 Loss ratio (%) -1.1%pts.  Current loss ratio still improving, 69.5 -0.8 +0.5 -0.8 68.3 both in Motor and non-Motor  Positive development of prior years confirmed, returning to more normal Current NAT Prior level in Q3 9M12 year C

  19. Slide 19: P&C investment strategy and yields

    II. GROUP FINANCIALS P&C investment strategy and yields 19 P&C segment own investments (%) -1.3%(1)  Higher incidence of Equities mainly due to positive Euro 38.0 bn Euro 37.2 bn market performance and tactical acquisitions 1.6% 1.4% 8.0% 7.5%  Increased exposure to corporate bonds to improve the

  20. Slide 20: Financial segment

    II. GROUP FINANCIALS Financial segment 20 Operating result (Euro m) Net fees and commissions (Euro m) +14.8% +3.3% 367 320 621 641 9M12 9M13 9M12 9M13 Third party AUM(1) (Euro bn) Cost/income ratio (%) +3.7% -1.9%pts. 96.4 99.9 67.9 66.0 FY12 9M13 9M12 9M13 (1) Including only third party AUM related

  21. Slide 21: II. Group financials

    Agenda 21 II. Group financials Profit & loss review Life and P&C segment profitability Balance sheet and solvency I Assicurazioni Generali Group – 9M 2013 results

  22. Slide 22: IFRS Shareholders' equity roll forward

    II. GROUP FINANCIALS IFRS Shareholders’ equity roll forward 22 (Euro m) +1.1% 19,828 1,591 19,223 19,013 (128) 60 (815) (440) (311) (563) Shareholders’ Impact from 01/01/2013 Δ in AFS 9M 2013 Δ Currency Δ Cash Flow Dividend Other Shareholders’ Equity FY12 revised IAS 19 Reserve Net Result Translatio

  23. Slide 23: Solvency I update

    II. GROUP FINANCIALS Solvency I update 23 (Euro bn) Required margin Available margin Solvency I ratio 152% at October 24 Main drivers of change 150% 145%(1) Main drivers of change 143% 26.9 26.1 26.0 Available margin: 17.9 17.9 18.2  Consolidated result: +1.8  GPH 25% minorities buyout: - 1.3  Ot

  24. Slide 24: III. Final Remarks

    Agenda 24 III. Final Remarks Assicurazioni Generali Group – 9M 2013 results

  25. Slide 25: Final remarks

    III. FINAL REMARKS Final remarks 25 Excellent underlying P&C performance Resilient Life profitability in a challenging market environment Progressing reinvestment of excess cash Assicurazioni Generali Group – 9M 2013 results

  26. Slide 26: IV. Backup

    Agenda 26 IV. Backup P&L Balance sheet Life Definitions Assicurazioni Generali Group – 9M 2013 results

  27. Slide 27: IV. Backup

    Agenda 27 IV. Backup P&L Balance sheet Life Definitions Assicurazioni Generali Group – 9M 2013 results

  28. Slide 28: 9M13 Total gross written premiums

    IV. BACK UP 9M13 Total gross written premiums 28 (Euro m) Total gross written premiums Gross life written premiums(1) Gross P&C written premiums YoY YoY YoY Weight on Weight on Weight on Country GWP % increase total GWP GWP % increase total GWP GWP % increase total GWP (2) (2) (2) Italy 13,910 +2.0%

  29. Slide 29: 9M13 Life premiums by country and business line

    IV. BACK UP 9M13 Life premiums by country and business line(1) 29 Savings and pension Protection Unit/Index linked Total YoY % YoY % YoY % YoY % GDP (2) GDP (2) GDP (2) GDP (2) (Euro mln) increase increase increase increase Italy 8,423 +7.1% 159 -7.8% 373 -4.0% 8,955 +6.3% France 3,468 -36.5% 1,287

  30. Slide 30: 9M13 P&C premiums by country and business line

    IV. BACK UP 9M13 P&C premiums by country and business line 30 Motor (1) Personal Commercial Accident/Health Total YoY % YoY % YoY % YoY % YoY % GDP GDP GDP GDP GDP (Euro mln) increase(2) increase(2) increase(2) increase(2) increase (2) Italy 2,151 -9.6% 604 +1.6% 1,045 -4.4% 772 -5.1% 4,571 -6.3% Fr

  31. Slide 31: Life net inflows by country

    IV. BACK UP Life net inflows by country 31 Country 9M12 9M13 Like for like Δ Italy (535) 787 n.a. France (1,949) 67 n.a. Germany 3,333 3,635 +9.1% CEE 282 424 +68.1% RoE (611) 1,163 n.a. Of which: Spain (1,709) (141) -91.8% Austria 114 133 +15.8% Switzerland 476 410 -11.9% RoW 623 400 +36.2% TOTAL 1

  32. Slide 32: 9M13 technical ratios

    IV. BACK UP 9M13 technical ratios 32 Life - Expense ratio (%) P&C - Combined ratio (%) 96.6 95.1 Expense ratio 27.2 26.7 Loss 11.2 11.1 69.5 68.3 ratio 9M12 9M13 9M12 9M13 Total - Expense ratio (%) 16.4 16.1 9M12 9M13 Assicurazioni Generali Group – 9M 2013 results

  33. Slide 33: 9M13 combined ratio reconciliation

    IV. BACK UP 9M13 combined ratio reconciliation 33 (Euro m) 9M12 9M13 A Net earned premiums (net of consolidation adjustments) 15,763 15,173 B Consolidated net claims 10,949 10,369 Consolidated acquisition costs 3,358 3,164 Consolidated administration costs 983 926 Non insurance activity related admi

  34. Slide 34: 9M13 technical ratios by country

    IV. BACK UP 9M13 technical ratios by country 34 (%) ITA FRA GER CEE RoE SPA AUT SWI RoW Consolidated P&C Loss ratio 9M13 71.3% 71.1% 67.5% 57.5% 67.8% 65.9% 67.8% 70.6% 65.1% 68.3% 9M12 77.4% 71.8% 66.5% 52.6% 67.8% 65.9% 69.1% 70.0% 59.3% 69.5% P&C Expense ratio 9M13 20.2% 27.3% 28.4% 31.8% 28.0% 2

  35. Slide 35: Focus on operating result

    IV. BACK UP Focus on operating result 35 Operating result by country(1) (Euro m) Operating result breakdown(1) (Euro m) Like for 9M12 9M13 like ∆ 1,590 Italy 1,432 1,590 11.0% 190 France 529 560 5.8% 517 Germany 463 490 6.0% 733 CEE 349 307 -12.1% 560 490 127 RoE 700 733 4.7% 883 155 34 307 274 208

  36. Slide 36: Operating Return on Equity: calculation

    IV. BACK UP Operating Return on Equity: calculation 36 (Euro m) 9M 2013(1) FY 2012 FY 2011 FY 2010 Consolidated Operating result 3,361 4,219 3,928 4,077 Interest expenses on financial debt (564) (668) (646) (704) Operating taxes(2) (965) (1,225) (1,132) (1,163) Minority interest (123) (287) (278) (2

  37. Slide 37: Life operating result

    IV. BACK UP Life operating result 37 Operating result (Euro m) Operating result by country (Euro m) 9M12 9M13 Like for like  -2.0%(1) Italy 991 883 -10.9% France 348 405 +16.3% Germany 236 248 +5.1% 2,196 2,071 CEE 136 129 -5.0% RoE 335 333 -0.7% Of which: % Spain 88 82 -6.8% Austria 51 57 +12.7% S

  38. Slide 38: P&C operating result

    IV. BACK UP P&C operating result 38 Operating result (Euro m) Operating result by country (Euro m) 9M12 9M13 Like for like  +20.3%(1) Italy 275 517 +87.9% France 181 155 -14.5% Germany 187 208 +11.0% 1,339 CEE 195 159 -18.7% 1,158 RoE 267 274 +2.6% Of which: % Spain 114 117 +2.6% Austria 67 83 +24.

  39. Slide 39: Focus on impairments

    IV. BACK UP Focus on impairments(1) 39 (Euro m) Life P&C Financial Total Net impairments 9M12 9M13 9M12 9M13 9M12 9M13 9M12 9M13 Equity instruments 461 262 99 43 3 1 563 307 Fixed income 163 (18) 16 (4) 6 (1) 184 (23) Real estate 36 89 5 10 0 0 41 99 Other investments(2) 8 108 91 112 7 (4) 106 216 T

  40. Slide 40: Focus on realised gains

    IV. BACK UP Focus on realised gains(1) 40 (Euro m) Life P&C Financial Total 9M12 9M13 9M12 9M13 9M12 9M13 9M12 9M13 Net realized gains on Equities 124 387 (20) 72 1 118 105 573 Realised gains 443 478 82 95 1 118 526 687 Realised losses (319) (90) (102) (23) 0 0 (421) (114) Net realized gains on Fixe

  41. Slide 41: Reclassified P&L account

    IV. BACK UP Reclassified P&L account 41 Total (Euro m) 9M12 9M13 Total Operating result 3,292 3,361 Net earned premiums 45,847 44,893 Net insurance benefits and claims (46,972) (45,782) Acquisition and administration costs (8,487) (8,184) Net fee and commission income and net income from financial s

  42. Slide 42: Reclassified P&L account by segment – 9M12

    IV. BACK UP Reclassified P&L account by segment – 9M12 42 Unallocated holding Consolidation (Euro m) Life Non life Financial(1) expenses adjustments Total Total Operating result 2,196 1,158 320 (221) (161) 3,292 Net earned premiums 30,084 15,763 - - 0 45,847 Net insurance benefits and claims (36,023

  43. Slide 43: Reclassified P&L account by segment – 9M13

    IV. BACK UP Reclassified P&L account by segment – 9M13 43 Unallocated holding Consolidation (Euro m) Life Non life Financial(1) expenses adjustments Total Total Operating result 2,071 1,339 367 (268) (149) 3,361 Net earned premiums 29,720 15,173 - - - 44,893 Net insurance benefits and claims (35,413

  44. Slide 44: Focus on 3Q13 results

    IV. BACK UP Focus on 3Q13 results 44 (Euro m) 3Q13/ 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 Q312(2) Life premiums(1) 10,543 12,009 12,815 10,415 10,271 13,309 12,282 11,259 9,687 -2.2% P&C premiums 4,931 5,823 6,999 5,419 5,027 5,359 6,863 5,050 4,530 -1.5% Total premiums 15,474 17,832 19,814

  45. Slide 45: IV. Backup

    Agenda 45 IV. Backup P&L Balance sheet Life Definitions Assicurazioni Generali Group – 9M 2013 results

  46. Slide 46: Consolidated balance sheet

    IV. BACK UP Consolidated balance sheet 46 (Euro bn) FY12 9M13 (Euro bn) FY12 9M13 Shareholders’ Equity Intangible assets 9.9 9.7 (Group share) 19.8 19.2 Minority interests 2.7 1.8 Investments 374.1 381.0 Shareholders’ Equity 22.6 21.1 Cash 21.6 17.7 Operating debt 50.7 50.2 Other credits 11.1 12.1 F

  47. Slide 47: Assets under management

    IV. BACK UP Assets under management 47 Total Total Euro 490 bn Euro 497 bn 99.9 Third parties AUM 97.4 Unit Linked 53.8 56.7 Fixed income Other instruments 3.4% 81.2% Real Estate 4.5% 338.8 339.0 Equity 5.1% Cash & equival. 4.9% “Own Investments”(1) FY12 9M13 (1) For definitions refer to the related

  48. Slide 48: Investment yields

    IV. BACK UP Investment yields(1) 48 Investment Fixed Income Equities Other Total Properties Return (%) 9M12 9M13 9M12 9M13 9M12 9M13 9M12 9M13 9M12 9M13 LIFE Current 3.2 2.9 2.9 2.7 5.6 5.4 1.2 1.5 3.1 2.9 Total P&L 3.4 3.5 1.6 5.4 4.1 3.2 1.8 -0.1 3.2 3.3 Comprehensive 9.6 1.9 7.7 9.7 3.7 3.1 1.8 -

  49. Slide 49: IFRS Shareholders' equity roll forward – Quarterly evolution

    IV. BACK UP IFRS Shareholders’ equity roll forward – Quarterly evolution 49 (Euro m) +4.3% 510 37 35 19,223 18,433 213 (4) 0 Shareholders’ Δ in AFS 3Q 2013 Δ Currency Δ Cash Flow Dividend paid Other Shareholders’ Equity 1H2013 Reserve Net Result Translation Hedge Reserve Equity 9M13 Reserve Change i

  50. Slide 50: AFS reserve breakdown

    IV. BACK UP AFS reserve breakdown 50 (Euro m) FY12 1H13 9M13 Fixed income instruments 1,889 1,271 1,158 Government 1,111 764 665 Corporate 778 507 493 Equity 549 534 822 Investment funds and other 152 134 171 TOTAL 2,591 1,938 2,151 Assicurazioni Generali Group – 9M 2013 results

  51. Slide 51: Regulatory Solvency I development in 3Q13

    IV. BACK UP Regulatory Solvency I development in 3Q13 51 (Euro bn) Required margin Available margin Solvency I ratio 139% Main drivers of change 143% 25.1 26.0 Available margin 18.1  Consolidated result: + 0.6 18.2  Own shares placement: + 0.2  GDH 3% minorities buyout - 0.2  Financial markets a

  52. Slide 52: Total comprehensive income

    IV. BACK UP Total comprehensive income(1) 52 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 (Euro m) 681 1,850 +4,000 m 2,530 1,032 1,308 (344) 773 (644) 196 (244) 270 425 (12) (1,326) -1,000 m (307) 3M10 6M10 9M10 12M10 3M11 6M11 9M11 12M11 3M12 6M12 9M12 12M12 3M13 6M13

  53. Slide 53: IV. Backup

    Agenda 53 IV. Backup P&L Balance sheet Life Definitions Assicurazioni Generali Group – 9M 2013 results

  54. Slide 54: Life new business: APE

    IV. BACK UP Life new business: APE 54 (Euro m) APE Annual Premiums Single Premiums Like for like Like for like Like for like 9M12 9M13 9M12 9M13 9M12 9M13    Italy 1,106 1,235 11.6% 730 795 8.9% 3,765 4,401 16.9% France 742 573 -22.7% 225 237 5.4% 5,171 3,365 -34.9% Germany 621 724 15.6% 409 403

  55. Slide 55: IV. Backup

    Agenda 55 IV. Backup P&L Balance sheet Life Definitions Assicurazioni Generali Group – 9M 2013 results

  56. Slide 56: Definitions: P&L and balance sheet (1/3)

    IV. BACK UP Definitions: P&L and balance sheet (1/3) 56 Investments Returns are calculated on quarterly average asset base at IFRS book value and are defined as follows: Current return: interests, dividends and similar income (gross of investments related expenses) Total P&L return: = current return

  57. Slide 57: Definitions: P&L and balance sheet (2/3)

    IV. BACK UP Definitions: P&L and balance sheet (2/3) 57 Own Investments do not include unit/index linked investments and consist of the following asset class (*): i) Fixed income instruments as quoted and unquoted bonds, loans including deposits under reinsurance business accepted and term deposits

  58. Slide 58: Definitions: P&L and balance sheet (3/3)

    IV. BACK UP Definitions: P&L and balance sheet (3/3) 58 Operating RoE Operating Return on Equity indicates the return in terms of Operating Result on Group Shareholders’ Equity. It is calculated according to the following ratio: Total Operating Result adjusted to include: - interest expenses on fina

  59. Slide 59: Definitions: Life APE and NBV

    IV. BACK UP Definitions: Life APE and NBV 59 Annual Premium is defined as new business annualised regular premiums plus 10% of single premiums Equivalent (APE) New Business Value is the present value, at the point of sale, of the projected stream of after tax industrial profits expected to be (NBV)

  60. Slide 60: What's next

    What’s next 60 November 27, 2013 - Investor Day Assicurazioni Generali Group – 9M 2013 results

  61. Slide 61: Investor Relations Team

    Investor Relations Team 61 Spencer Horgan (Tel.: +44-20-72656480) Head of Investor Relations Email: spencer_horgan@generali.com Stefano Burrino (Tel.: +39-040-671202) Email: stefano_burrino@generali.com Emanuele Marciante (Tel.: +39-040-671347) Email: emanuele_marciante@generali.com Assicurazioni Ge

  62. Slide 62: Disclaimer

    Disclaimer 62 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

  63. Slide 63: Generali Group 9M 2013 Results

    Generali Group 9M 2013 Results November 7, 2013 March 2006

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