Assicurazioni Generali S.p.a. · MIL:G

Assicurazioni Generali — Q1 2014 Earnings Presentation

37 slides from Assicurazioni Generali's earnings presentation, May 15, 2014

  1. Slide 1: Generali Group 1Q 2014 Results

    GENERALI GROUP 1Q 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 10 - Backup Page 24 © Generali May 15, 2014 1Q 2014 Results

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

    3 Agenda I. Profit & Loss and Balance Sheet © Generali May 15, 2014 1Q 2014 Results

  4. Slide 4: Key 1Q 2014 financials at a glance

    Profit & Loss 4 Key 1Q 2014 financials at a glance  Operating Result: Stable at the high level of last year  Life: Steady despite low yield environment; strong net flows continue  P&C: Increasing thanks to higher technical and investment results  Net Result: Increasing mainly due to improvement

  5. Slide 5: Operating result by segment

    Profit & Loss 5 Operating result by segment +0.5% (€ m) 1,296 1,290 19 25 (1) (14) (22) 1Q13 LIFE P&C FINANCIAL HOLDING EXP. CONS.AD 1Q14 SERVICES 1Q14 779 516 144 (97) (47) 1Q13 781 498 119 (83) (25) D -0.2% +3.7% +21.0% +17.4% +87.5% © Generali May 15, 2014 1Q 2014 Results

  6. Slide 6: From operating result to net profit

    Profit & Loss 6 From operating result to net profit (€ m) 129 1,296 (210) (161) 1 660 (323) (72) OPERATING NON OPER. NON OPER. NET OTHER INCOME TAXES DISC. MINORITIES NET RESULT RESULT INVESTMENT HOLDING NON OPER. OPERATIONS INCOME EXPENSES EXPENSES 1Q14 1,296 129 (210) (161) (323) 1 (72) 660 1Q13 1

  7. Slide 7: Shareholders' equity

    Balance Sheet 7 Shareholders’ equity Shareholders’ equity rollforward (€ m) + 9.9% 660 21,741 1,344 19,778 (0) 0 (41) SHAREHOLDERS' Δ in AFS RESERVE 1Q 2014 NET RESULTS DIVIDEND OTHER SHAREHOLDERS EQUITY FY13 EQUITY 1Q14 Change in AFS reserve (€ m) 1,216 45 3,857 2,513 83 AFS RESERVE FY13 IMPACT EQU

  8. Slide 8: Solvency I

    Capital 8 Solvency I Solvency I rollforward (%) +11%pts. 7%pts 152% 141% 0%pts 4%pts SOLVENCY I FY13 REQUIRED MARGIN CONSOLIDATED RESULT FINANCIAL MARKETS AND SOLVENCY I 1Q14 (1) GROWTH OTHER (1) For interim closings, no accrued dividends are deducted from available margin. © Generali May 15, 2014 1

  9. Slide 9: Debt refinancing operations completed

    Leverage 9 Debt refinancing operations completed Financing until 2016 call dates completed; € 1 bn net reduction in debt levels by end 2015 (€ bn) 1.3 14.0 1.0 12.8 12.3 (0.5) 11.8 (2.3) (0.5) FY13 SENIOR BOND 1Q14 REPAYMENT OF SUB DEBT 2014 EXPECTED 2015 EXPECTED ISSUED JAN INELIGIBLE ISSUE MAY MAT

  10. Slide 10: II. Business review

    10 Agenda II. Business review © Generali May 15, 2014 1Q 2014 Results

  11. Slide 11: Life key financial indicators

    Life Insurance 11 Life key financial indicators (€ m) 1Q13 1Q14 LFL D Gross written premiums 11,860 12,061 +2.4% Net inflows 2,810 2,888 +4.3% Life operating result 781 779 -0.2% Life operating ratio on 24 22 -2 investments (bps) APE 1,213 1,270 +5.4% New Business Value 254 320 +35.2% Margins on APE

  12. Slide 12: Life Operating result by driver

    Life Insurance 12 Life Operating result by driver  Stable thanks to increasing investment result and decreasing expense ratio  Technical margin lower due to policyholder share of lower expenses, and lower risk result  Overall operating profit margin stable 22 bp of investments -0.2% 781 85 779 29

  13. Slide 13: Life inflows and technical reserves

    Life Insurance 13 Life inflows and technical reserves(1)  Increase in net inflows (+4.3%) (€ m) 1Q13 1Q14  Notable improvements in Italy and EMEA Italy 212 1,070  Decrease in Germany due to planned reduction of single premiums France 70 (224)  Overall growth in reserves of 1.5% Germany 1,494 821

  14. Slide 14: Life investment performance

    Life Insurance 14 Life investment performance Life segment own investments (%) Current returns (not annualized) Euro 282.4 bn Euro 294.6 bn Euro m % 1.9% 1.9% 3.8% 3.0% Other 3.5% 3.4% 4.7% 4.4% Cash & cash 1Q13 2,225 0.96 8.1% 8.9% equivalent Fixed income Real estate 1Q14 2,274 0.91 Equity 1Q13 17

  15. Slide 15: Life new business analysis

    Life Insurance 15 Life new business analysis  Positive development of APE (+5.4%) with good progressions of both annual and single premiums.  NBM improves (+5.2%pts. on homogeneous basis) thanks to the more favourable economic assumptions and to the further reduction of guarantees in Euro area (fr

  16. Slide 16: P&C key financial Indicators

    P&C Insurance 16 P&C key financial Indicators (€ m) 1Q13 1Q14 LFL D Gross written premiums, of which: 6,555 6,416 -0.1% Primary Motor 2,797 2,702 +0.0% Primary Non Motor 3,575 3,569 +0.8% Combined ratio (%) 93.6% 92.7% -0.8%pts. Of which: 0.0% 0.6% +0.6%pts. Nat Cat impact (%) P&C operating result 4

  17. Slide 17: P&C Operating result by driver

    P&C Insurance 17 P&C Operating result by driver  Improving result, despite higher Nat Cat impact, reflecting better underlying underwriting margins +3.7% 4 1 516 498 14 (€ m) 1Q13 TECHNICAL MARGIN INVESTMENT RESULT OTHER 1Q14 1Q14 336 234 (54) 1Q13 323 230 (55) D% +4.2% +1.7% -1.6% © Generali May 1

  18. Slide 18: P&C gross written premiums trends

    P&C Insurance 18 P&C gross written premiums trends Overall stable premium development: (€ m) 1Q13 1Q14 LFL r  Decline in Italy primarily driven by Motor. Also Non-Motor decreased due to Commercial and Accident/Health that more than offset Italy 1,524 1,464 -4.0% improvement in Personal lines 869 

  19. Slide 19: Combined ratio analysis

    P&C Insurance 19 Combined ratio analysis Expense ratio (%) - 0.4%pts. 27.4 27.0 Combined ratio (%) 5.9 (0.2) (0.2) 5.7 Administr. costs - 0.8%pts. 21.6 21.3 93.6 92.7 Acquisition costs (0.4) (0.4) Δ%pts 27.4 27.0 1Q13 Δ Admin Δ Acq. 1Q14 Loss ratio (%) - 0.4%pts. 66.1 65.7 66.1 65.7 0.6 (0.3) (0.8)

  20. Slide 20: Combined ratio by country

    P&C Insurance 20 Combined ratio by country  Combined Ratio still improving in Italy, COUNTRY 1Q13 1Q14 ∆ thanks to current year loss ratio, despite Nat Cat impact (+0.9%pts.) Italy 92.0% 90.6% -1.5%pts. France 97.2% 103.1% +6.0%pts.  Nat Cat strongly impact Combined Ratio in France (+2.7%pts.) Ger

  21. Slide 21: P&C investment performance

    P&C Insurance 21 P&C investment performance P&C segment own investments (%) Current returns (not annualized) Euro 37.7 bn Euro 40.3 bn 1.1% 0.9% Euro m % 10.0% 12.1% 13.1% Other 1Q13 212 0.83 12.3% Fixed income Cash & cash 1Q14 219 0.85 9.9% 8.8% equivalent 6.5% Real estate 1Q13 12 0.46 10.6% Equity

  22. Slide 22: Financial segment key financial indicators

    Financial Segment 22 Financial segment key financial indicators 1Q13 1Q14 LFL D Operating result (€ m) 119 144 +21.0% Net fees and commissions (€ m) 218 227 +4.2% Cost / income ratio (%) 66.6% 61.9% -4.7%pts Third party AUM(1) (€ bn) 104.3 104.3 -0.1% (1) Comparative data FY13 © Generali May 15, 201

  23. Slide 23: Final remarks

    Final remarks 23 Final remarks  Solvency significantly improved: optimistic to achieve our balance sheet restructuring plans early  Solid operating result despite low yield environment  Net profit up, as non-operating result improves © Generali May 15, 2014 1Q 2014 Results

  24. Slide 24: III. Backup

    24 Agenda II. Backup - Investments Page 25 - Financial debt Page 30 © Generali May 15, 2014 1Q 2014 Results

  25. Slide 25: Backup: Investments

    25 Agenda II. Backup - Investments Page 25 - Financial debt Page 30 © Generali May 15, 2014 1Q 2014 Results

  26. Slide 26: Assets under management

    Investments 26 Assets under management Total portfolio € 525 bn Breakdown by region and asset class Italy 9% By Region France 3% 10% 30% Germany CEE 28% Own investments 22% EMEA 20.4% RoW and other operations Unit Linked 68.0% 11.5% 3% Third party AUM 5% 5% Equity 4% Fixed income Real estate By Asse

  27. Slide 27: Fixed Income Portfolio

    Investments 27 Fixed Income Portfolio Covered € 33 bn Corporate € 83 bn Government € 146 bn (1) Total Portfolio € 296 bn 1% 2% 2% 2% 0% 11.5% 6% 5% 8% 13% 8% 11% 11.0% 11% 15.9% 48% 34% 69% 38% 39% 12.1% Other fixed Income 3% 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 (€ 17.2 bn) Alternative investments (€ 3.0 bn) Equity (€ 10.6 bn) Life, P&C and Life, P&C and 21% Financial Financial 2% 23% 17% 14% 65% Life Life P&C 75% P&C Financial Financial 21% 61% 0% 16% 20% Listed and Unlisted Life, P&C and Equity Equity Fu

  29. Slide 29: Real Estate

    Investments 29 Real Estate (1) Total portfolio (€ 24.8 bn (1)) 5% 3% Breakdown by use (2) 11% Office Residential 17% Retail 64% Breakdown by utilization (2) Logistic 16% Other/Mixed Investment properties Own use 1% Breakdown by country (2) 84% 20% Italy France 1% 37% Germany 16% CEE RoE 25% RoW (1)

  30. Slide 30: Backup: Financial debt

    30 Agenda II. Backup - Investments Page 25 - Financial debt Page 30 © Generali May 15, 2014 1Q 2014 Results

  31. Slide 31: Focus on financial debt

    Financial debt 31 Focus on financial debt Average cost & maturity of financial debt (%) Total financial debt (€ m) € 13,988 m(1) 652 € 12,758 m FY13 1Q14 678 7,627 Average cost (%) 5.93% 5.66% 7,612 Subordinated/Hybrid 6.54% 6.54% Senior 4.81% 4.39% 5,708 4,468 Average maturity (years) 5.27 5.10 FY1

  32. Slide 32: Financial debt breakdown by expiry date/call date

    Financial debt 32 Financial debt breakdown(1) by expiry date/call date (€ m) 2,600 2,250 2,200 1,750 1,423 1,265 1,250 750 770 500 2014 2015 2016 2017 2018 2019 2020 2022 2024 2026 Senior Hybrid Subordinated (1) This breakdown takes into account the new senior and subordinated issuances of January a

  33. Slide 33: 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

  34. Slide 34: Next events

    34 Next events 31.07.2014 1H 2014 results reporting 06.11.2014 9M 2014 results reporting 19.11.2014 2014 Investor Day © Generali May 15, 2014 1Q 2014 Results

  35. Slide 35: Investor Relations Team

    35 Team Spencer HORGAN Marta PORCZYNSKA Head of Investor Relations Team assistant & event coordination Spencer.Horgan@Generali.com Marta.Porczynska@Generali.com +44 20 7265 6480 +39 040 671402 Stefano BURRINO Martina VONO Stefano.Burrino@Generali.com Team assistant & event coordination +39 040 67120

  36. Slide 36: Thank you

    36 Thank you © Generali May 15, 2014 1Q 2014 Results

  37. Slide 37: Generali Group

    GENERALI GROUP 1Q 2014 Results © Generali May 15, 2014 1Q 2014 Results

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