Fitch Rates Assicurazioni Generali's Tier 2 Subordinated Notes 'A-'

About this update from Assicurazioni Generali S.p.a.

Fitch Ratings has assigned Assicurazioni Generali S.p.A.'s (Generali) EUR750 million subordinated Tier 2 notes an 'A-' rating. The rating is two notches below Generali's 'A+' Issuer Default Rating (IDR), comprising one notch each for 'below-average' recovery prospects and 'moderate' non-performance risk, in line with Fitch's notching criteria. Key Rating Drivers The subordinated notes have a maturity of 11 years and carry a fixed coupon. They rank junior to senior notes and equally with senior subordinated securities. This level of subordination results in Fitch's 'below-average' baseline recovery assumption. The notes include a mandatory interest deferral feature, which would be triggered if the group is not able to meet the applicable solvency capital requirement. Fitch regards this feature as leading to 'moderate' non-performance risk under its criteria. The notes qualify as Tier 2 regulatory capital under Solvency II and are therefore treated as 100% capital in Fitch's Prism Global Model. However, as they are a dated instrument, we treat them as 100% debt in our financial leverage ratio calculation. We view the issue as neutral to Generali's capitalisation and leverage as we expect the group to use the proceeds to refinance part of about EUR1.75 billion outstanding subordinated notes that mature in 2027. Consequently, we view the increase in financial leverage from the issue to be only temporary. Fitch expects Generali's fixed-charge coverage to remain strong and commensurate with its ratings. The issue extends Generali's maturity profile and underlines the group's strong financial flexibility. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The notes will be downgraded if Generali's IDR is downgraded. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade The notes will be upgraded if Generali's IDR is upgraded. Date of Relevant Committee05 November 2025 REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The principal sources of information used in the analysis are described in the Applicable Criteria. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, eithe...

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