generali group 9m 2013 results
DESCRIPTION
TRANSCRIPT
November 7, 2013
Generali Group
9M 2013 Results
2
Assicurazioni Generali Group – 9M 2013 results
Agenda
I. Overview
II. Group financials
III. Final remarks
IV. Backup
Page 3
Page 5
Page 24
Page 26
3 Agenda
I. 9M 2013 results overview
9M 2013 results at a glance
Assicurazioni Generali Group – 9M 2013 results
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 inflows is on equivalent terms (on equivalent exchange rates and consolidation area).
The like for like change of operating results and own investments is calculated excluding Generali Banorte and Generali US Life RE from the
comparative period.
4
Assicurazioni Generali Group – 9M 2013 results
Operating result (Euro m)
3,292 3,361
+6.2%(1)
9M12 9M13
9M 2013 results at a glance
I. OVERVIEW
01/01/13(2) 9M13
Solvency I ratio (%)
145 143
(1) On like for like basis
Net result (Euro m)
1,591
1,133
+40.4%
9M12 9M13
Shareholders’ equity (Euro m)
9M13 01/01/13(2)
19,013 19,223
(2) FY12 shareholders’ equity was restated including the effects of revised IAS 19
+1.1%
-2%pts.
152% at October 24
5
Assicurazioni Generali Group – 9M 2013 results
Agenda
II. Group financials
Profit & loss review
Life and P&C segment profitability
Balance sheet and solvency I
6
Assicurazioni Generali Group – 9M 2013 results
Revenue development by segment
II. GROUP FINANCIALS
(1) Including investment contracts (Euro 2,549 m in 9M13, Euro 2,669 m in 9M12)
(2) On like for like basis
9M12
9M12
excluding
Mexico & US
Life Re
9M13 Like for
like ∆
Gross written
premiums 50,945 49,393 49,053 +0.6%
Life(1) 33,500 32,354 32,808 +0.9%
P&C 17,444 17,039 16,245 +0.1%
(Euro m)
50,945 49,053
9M13 9M12
+0.6%(2)
Gross written premiums (Euro m)
49,393
1,552
Contribution from US
Life Reassurance and
Mexican operations
7
Assicurazioni Generali Group – 9M 2013 results
Consolidation
adjustments
Total
operating result
Financial services
operating result
P&C
operating result
Operating holding
expenses
Life
operating result
367
-268
-149
320
-221
-161
3,361
1,339
2,071
3,292
1,158
2,196
9M13 total operating result (Euro m)
Operating result by segment
9M13
9M12
-7.9%
+6.2%
+14.8%
+20.3%
+21.0%
-2.0%
Like for like
II. GROUP FINANCIALS
Contribution from US
Life Reassurance and
Mexican operations(1)
(1) The contribution for 9M12 life operating result was Euro 82 m, for 9M12 P&C operating result was Euro 45 m and for total operating result was Euro 128 m
1,113
2,114
3,164
8
Assicurazioni Generali Group – 9M 2013 results
Focus on non operating result
9M12 9M13 Like for
like
Non operating
investment income (304) 26 n.m.
Non operating
holding expenses (496) (597) +20.4%
Of which: interest costs (493) (564) +14.4%
Net other
Non operating
expenses
(246) (318) +29.3%
Of which: VOBA
amortization (138) (132) -4.4%%
Total
Non operating
result
(1,046) (889) -14.9%
II. GROUP FINANCIALS
(Euro m)
(304)
26333
92
(95)
Non operating investment income (Euro m)
9M13 9M12
(Euro m)
Net realised
gains
Net impair-ments
Fair Value thr. P&L
9M 13 381 (280) (75)
9M 12 48 (372) 20
Δ(1) n.m. -24.7% n.m.
(1) On like for like basis
9
Assicurazioni Generali Group – 9M 2013 results
9M12 9M13
Total operating result 3,292 3,361 +6.2%(1)
Non operating result (1,046) (889) -14.9%(1)
Consolidated result before
taxes and minorities
2,246 2,473 +16.7%(1)
Income taxes (869) (738) -15.1%
Result for discontinued
operations
(22) 60 n.m.
Minorities (222) (205) -8.0%
Net result 1,133 1,591 +40.4%
II. GROUP FINANCIALS
Net income (Euro m)
1,133
1,591
+40.4%
9M13 9M12
From operating result to net result
(Euro m)
(1) On like for like basis
10
Assicurazioni Generali Group – 9M 2013 results
Agenda
II. Group financials
Profit & loss review
Life and P&C segment profitability
Balance sheet and solvency I
11
Assicurazioni Generali Group – 9M 2013 results
Life business development
Gross written premiums (Euro m)
33,500 32,808
+0.9%(1)
II. GROUP FINANCIALS
9M12 9M13
(1) On like for like basis
(2) Including liabilities related to investment contracts
Net technical reserves(2) (Euro bn)
Country 9M12 9M13
Italy (535) 787
France (1,949) 67
Germany 3,333 3,635
CEE 282 424
RoE (611) 1,163
RoW 623 400
TOTAL 1,142 6,477
Net inflows by country (Euro m)
Italy: Positive development thanks to significant
decrease of outflows, in particular maturities
France: Positive trend due the significant drop
in surrenders
Germany: Confirms good development thanks
to the positive development of volumes
Rest of Europe: 9M12 negatively influenced by
the decision not to renew a large Group contract
with low profitability
9M13 FY12 Traditional Unit
Linked
+3.4%(1)
Traditional Unit linked
260.2 264.3
53.6 56.6
7.5
(3.4)
3.0313.8 320.9
Change in perimeter
12
Assicurazioni Generali Group – 9M 2013 results
Life profitability – Operating result
(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%
Operating Result 2,196 2,071 -2.0%
Life operating profitability hit by low interest rate environment
Life Operating Result by driver
Life operating ratio on
Investments 0.70% 0.62%
II. GROUP FINANCIALS
Life operating
result 9M12
Δ Technical margin Δ Investment result Δ Expenses Life operating
result 9M13
2,196 2,071 31
(101) (55)
13
Assicurazioni Generali Group – 9M 2013 results
Life investment strategy and yields
Current
return
Fixed
income
Equity Real
Estate
9M12 9M13 9M12 9M13 9M12 9M13
Euro m 7,006 6,929 372 343 544 538
% 3.2 2.9 2.9 2.7 5.6 5.4
43.0% 42.9%
33.9% 35.0%
8.4% 8.4%
4.5% 4.8% 3.5% 3.6% 4.7% 3.4% 2.1% 2.0%
FY12 9M13
Other
Cash & cashequivalent
Real estate
Equity
Other fixedincome
Corporatebonds
Governmentbonds
Life segment own investments (%)
Euro 277.0 bn Euro 278.6 bn
II. GROUP FINANCIALS
Current profitability remains affected by a low
reinvestment yield environment
Reduction in Cash and cash equivalents, that have been
deployed in more profitable investments
Increased exposure to corporate bonds to improve the
overall return and diversification of the investment
portfolio
+1.9%(1)
(1) On like for like basis
14 Life new business value and profitability
II. GROUP FINANCIALS
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
(Euro m) APEMargin on APE
(NBM)NBV
9M12 9M13Like for like
9M12 9M13 9M12 9M13
Like for like
Italy 1,106 1,235 11.6% 21.2% 17.8% 234 219 -5.3%
France 742 573 -22.7% 12.4% 13.2% 92 76 -17.8%
Germany 621 724 15.6% 19.8% 24.9% 123 181 45.7%
CEE 108 126 -14.1% 35.2% 44.5% 38 56 6.6%
RoE 447 440 -1.2% 22.6% 25.7% 101 113 12.9%
RoW 159 113 2.3% 40.7% 22.6% 65 25 -10.4%
Total 3,184 3,211 1.1% 20.5% 20.9% 653 670 7.3%
9M13 amounts include the contributions from USA and MEXICO only for 1Q13. Such contributions, as well as other perimeter and FX rates changes, are neutralized in the like for like variation.
Assicurazioni Generali Group – 9M 2013 results
15
Assicurazioni Generali Group – 9M 2013 results
P&C gross written premiums
(Euro m) 9M12 9M13 Like for like
Italy 4,963 4,690 -5.6%
France 3,231 2,752 -5.6%
Germany 2,687 2,804 +4.4%
CEE 1,820 1,465 -1.1%
RoE 3,542 3,541 +0.6%
RoW 1,202 993 +42.4%
Total 17,444 16,245 +0.1%
II. GROUP FINANCIALS
(1) On like for like basis
Gross written premiums (Euro m)
17.444 16.245
9M13 9M12
+0.1%(1)
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 under pressure mainly in Spain, Italy and France, due to the difficult economic environment
16
Assicurazioni Generali Group – 9M 2013 results
P&C profitability – Operating result
(Euro m) 9M12 9M13 like for like
Technical Result 490 699 +52.0%
Investment Result 798 789 +0.7%
Other (130) (149) +14.9%
Operating Result 1,158 1,339 +20.3%
P&C Operating Result by driver
P&C operating ratio on Investments 3.24% 3.57%
Confirmed strong P&C operating profitability driven by excellent technical results
II. GROUP FINANCIALS
P&C operating
result 9M12
Δ Technical result Δ Investment result Δ Other P&C Operating
result 9M13
1,158 1,339
(9) (19)
209
17
Assicurazioni Generali Group – 9M 2013 results
P&C profitability – Net combined ratio (1/2)
(0.4) (1.1)
9M13 9M12
Combined ratio (%)
Expense
ratio
Loss
ratio
-1.6%pts.
II. GROUP FINANCIALS
Combined ratio by country
9M12
9M13
Italy 97.6% 91.5% -6.1%pts.
France 98.5% 98.4% -0.1%pts.
Germany 94.9% 95.9% +1.0%pts.
CEE 90.4% 89.3% -1.1%pts.
RoE 96.3% 95.8% -0.5%pts.
RoW 97.7% 105.7% +8.0%pts.
Total 96.6% 95.1% -1.6%pts.
26.7
68.3
27.2
69.5
95.1% 96.6%
Loss ratio Expense ratio
18
Assicurazioni Generali Group – FY 2009 results
5.9
21.3
0.0 -0,55.9
20.9
P&C profitability – Net combined ratio (2/2)
9M13 69.9 2.5 -4.1 68.3
9M12 70.8 2.0 -3.3 69.5
60
62
64
66
68
70
72
II. GROUP FINANCIALS
Loss ratio (%)
9M13 9M12
69.5 68.3 -0.8 +0.5 -0.8
Current
year
NAT
CAT
Prior
years
9M13 9M12 Δ Admin Δ Acq.
Acq. costs
Adm. costs
26.7
Expense ratio (%)
Δ%pts
27.2
-1.1%pts.
-0.4%pts.
Assicurazioni Generali Group – 9M 2013 results
Current loss ratio still improving,
both in Motor and non-Motor
Positive development of prior years
confirmed, returning to more normal
level in Q3
Nat Cat affecting Q2 and Q3 2013
19
Assicurazioni Generali Group – 9M 2013 results
P&C investment strategy and yields
P&C segment own investments (%)
Euro 38.0 bn Euro 37.2 bn
Current
return
Fixed
income
Equity Real
Estate
9M12 9M13 9M12 9M13 9M12 9M13
Euro m 685 661 63 68 330 276
% 2.9 2.6 2.1 2.4 6.1 5.3
29.7% 30.2%
29.2% 31.3%
10.7% 6.8%
6.9% 9.0%
13.9% 13.9%
8.0% 7.5%
1.6% 1.4%
FY12 9M13
Other
Cash & cashequivalent
Real estate
Equity
Other fixed income
Corporate bonds
Government bonds
II. GROUP FINANCIALS
Higher incidence of Equities mainly due to positive
market performance and tactical acquisitions
Increased exposure to corporate bonds to improve the
overall return and diversification of the investment
portfolio
Current profitability remains affected by a low
reinvestment yield environment
+1.9%(1)
(1) On like for like basis
20
Assicurazioni Generali Group – 9M 2013 results
67.9 66.0
Financial segment
Operating result (Euro m)
Third party AUM(1) (Euro bn)
Net fees and commissions (Euro m)
320 367
9M13 9M12
+14.8%
621 641
9M13 9M12
+3.3%
96.4 99.9
9M13 FY12
+3.7% -1.9%pts.
9M13 9M12
Cost/income ratio (%)
II. GROUP FINANCIALS
(1) Including only third party AUM related to financial segment companies
21
Assicurazioni Generali Group – 9M 2013 results
Agenda
II. Group financials
Profit & loss review
Life and P&C segment profitability
Balance sheet and solvency I
22
19,828
(815)
19,01319,223
(440)
1,591
(128) 60(563)(311)
IFRS Shareholders’ equity roll forward
Shareholders’
Equity FY12
Impact from
revised IAS 19
01/01/2013 Δ in AFS
Reserve
9M 2013
Net Result
Δ Currency
Translation
Reserve
Δ Cash Flow
Hedge
Reserve
Dividend
paid
Other
(including
Euro 477 m
GPH 25%
minorities
buyout)
Shareholders’
Equity 9M13
+1.1%
(Euro m)
Change in AFS reserve (Euro m)
2,151
19
2,591
(732)272
AFS Reserve
FY12
Impact Equity Investments
Impact Bond Investments
Other AFS Reserve 9M13
II. GROUP FINANCIALS
Assicurazioni Generali Group – 9M 2013 results
23
Assicurazioni Generali Group – 9M 2013 results
17.9 17.9 18.2
26.9 26.1 26.0
Solvency I update
II. GROUP FINANCIALS
Required margin Available margin
01/01/13 FY12
145%(1)
(Euro bn)
9M13
143%
Solvency I ratio
(1) FY12 shareholders’ equity was restated including the effects of revised IAS 19
(2) Banca Generali and own shares placement, GDH 3% minorities buyout
Main drivers of change Main drivers of change
Available margin:
Consolidated result: +1.8
GPH 25% minorities buyout: - 1.3
Other M&A transactions(2) + 0.2
Eligible debt: - 0.2
Financial markets and other elements: - 0.6
Required Margin: + 0.2
150%
152% at October 24
24
Assicurazioni Generali Group – 9M 2013 results
III. Final Remarks
Agenda
25
Assicurazioni Generali Group – 9M 2013 results
Final remarks
III. FINAL REMARKS
Excellent underlying P&C performance
Resilient Life profitability in a challenging market environment
Progressing reinvestment of excess cash
26
IV. Backup
Agenda
P&L
Balance sheet
Life
Definitions
Assicurazioni Generali Group – 9M 2013 results
27
IV. Backup
Agenda
P&L
Balance sheet
Life
Definitions
Assicurazioni Generali Group – 9M 2013 results
28 9M13 Total gross written premiums
IV. BACK UP
(1) Including investment contracts
(2) On like for like basis with constant exchange rates
(Euro m)
YoY YoY YoY
% increase % increase % increase
(2) (2) (2)
Italy 13,910 +2.0% 28.4% 9,220 +6.4% 28.1% 4,690 -5.6% 28.9%
France 8,635 -18.0% 17.6% 5,883 -22.8% 17.9% 2,752 -5.6% 16.9%
Germany 14,082 +10.0% 28.7% 11,278 +11.5% 34.4% 2,804 +4.4% 17.3%
CEE 2,637 -1.3% 5.4% 1,172 -1.6% 3.6% 1,465 -1.1% 9.0%
RoE 7,801 +2.3% 15.9% 4,260 +3.8% 13.0% 3,541 +0.6% 21.8%
Of which:
Spain 1,700 -6.0% 3.5% 724 -1.9% 2.2% 976 -8.8% 6.0%
Austria 1,966 +0.8% 4.0% 845 -1.2% 2.6% 1,121 +2.3% 6.9%
Switzerland 1,373 -4.2% 2.8% 745 -7.9% 2.3% 628 +0.6% 3.9%
RoW 1,988 +29.4% 4.1% 995 +18.0% 3.0% 993 +42.4% 6.1%
Total 49,053 +0.6% 100.0% 32,808 +0.9% 100.0% 16,245 +0.1% 100.0%
Total gross written premiums Gross life written premiums(1)
Gross P&C written premiums
Country GWP
Weight on
total GWP GWP
Weight on
total GWP GWP
Weight on
total GWP
Assicurazioni Generali Group – 9M 2013 results
29 9M13 Life premiums by country and business line(1)
IV. BACK UP
(1) Including investment contracts
(2) On like for like basis with constant exchange rates
GDPYoY %
increase(2) GDP
YoY %
increase(2) GDP
YoY %
increase(2) GDP
YoY %
increase(2)
Italy 8,423 +7.1% 159 -7.8% 373 -4.0% 8,955 +6.3%
France 3,468 -36.5% 1,287 -3.8% 913 +46.7% 5,668 -23.7%
Germany 5,698 +23.2% 3,077 +1.6% 2,503 +1.9% 11,278 +11.5%
CEE 636 -11.1% 185 +8.6% 350 +15.5% 1,172 -1.5%
RoE 1,514 -3.3% 672 +3.5% 2,054 +9.7% 4,241 +3.8%
Of which:
Spain 573 -1.8% 144 -3.3% 7 +17.7% 724 -1.9%
Austria 454 -2.0% 197 +4.9% 180 -6.2% 831 -1.4%
Switzerland 117 -14.8% 97 +3.4% 531 -8.1% 745 -7.9%
RoW 575 +14.6% 350 +13.3% 69 +150.6% 994 +18.7%
Total Life gross
direct premiums 20,315 -2.0% 5,730 +1.1% 6,262 +10.5% 32,307 +0.7%
(Euro mln)
Protection Unit/Index linkedSavings and pension Total
Assicurazioni Generali Group – 9M 2013 results
30 9M13 P&C premiums by country and business line
IV. BACK UP
(1) Including fleets
(2) On like for like basis with constant exchange rates
GDPYoY %
increase(2) GDP
YoY %
increase(2) GDP
YoY %
increase(2) GDP
YoY %
increase(2) GDP
YoY %
increase(2)
Italy 2,151 -9.6% 604 +1.6% 1,045 -4.4% 772 -5.1% 4,571 -6.3%
France 779 -8.6% 1,189 -4.2% 601 -5.8% 0 n.a. 2,569 -6.0%
Germany 1,141 +7.9% 1,033 +2.5% 223 +2.2% 402 +1.0% 2,800 +4.4%
CEE 695 -2.6% 265 +1.9% 392 -0.3% 80 -0.3% 1,432 -1.1%
RoE 1,304 +0.7% 814 +3.4% 720 -6.3% 568 +3.3% 3,405 +0.2%
Of which:
Spain 267 -8.4% 315 +1.8% 241 -20.1% 137 -1.7% 960 -7.9%
Austria 430 +1.0% 251 +2.1% 304 +2.9% 118 +3.3% 1,102 +2.0%
Switzerland 316 -1.9% 154 +3.5% 3 -7.1% 155 +4.3% 627 +0.9%
RoW 655 +49.9% 33 +145.7% 194 +27.2% 46 +92.4% 928 +48.0%
Total P&C gross
direct premiums 6,725 +0.4% 3,938 +0.9% 3,175 -2.5% 1,868 +0.2% 15,706 -0.1%
TotalAccident/Health
(Euro mln)
Motor (1) Personal Commercial
Assicurazioni Generali Group – 9M 2013 results
31 Life net inflows by country
IV. BACK UP
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 1,142 6,477 +605.6%
Assicurazioni Generali Group – 9M 2013 results
32
Loss
ratio
Expense
ratio
P&C - Combined ratio (%)
Total - Expense ratio (%)
69.5 68.3
27.2 26.7
9M13 9M12
9M13 9M12
9M13 9M12
96.6 95.1
9M13 technical ratios
IV. BACK UP
Life - Expense ratio (%)
16.4 16.1
11.111.2
Assicurazioni Generali Group – 9M 2013 results
33 9M13 combined ratio reconciliation
(1) Administration expenses related to service companies, real estates and other companies not belonging to P&C segment
(Euro m)
IV. BACK UP
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 administration costs(1) 56 33
Insurance activity related consolidated administration costs 927 893
C Total acquisition and administration costs 4,284 4,057
B/A Loss ratio 69.5% 68.3%
C/A Expense ratio 27.2% 26.7%
(B+C)/A Combined ratio 96.6% 95.1%
D Other technical items 40 48
A-B-C-D Technical result 490 699
Assicurazioni Generali Group – 9M 2013 results
34 9M13 technical ratios by country
IV. BACK UP
(%) ITA FRA GER CEE RoE SPA AUT SWI RoW Consolidated
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%
9M13 20.2% 27.3% 28.4% 31.8% 28.0% 27.9% 27.2% 24.5% 40.6% 26.7%
9M12 20.2% 26.7% 28.4% 37.8% 28.5% 28.1% 27.5% 26.0% 38.5% 27.2%
9M13 91.5% 98.4% 95.9% 89.3% 95.8% 93.8% 95.0% 95.1% 105.7% 95.1%
9M12 97.6% 98.5% 94.9% 90.4% 96.3% 94.0% 96.6% 96.0% 97.7% 96.6%
9M13 9.8% 12.8% 10.1% 18.0% 12.3% 4.9% 14.6% 19.2% 23.2% 11.1%
9M12 10.3% 9.0% 11.5% 19.9% 12.8% 4.8% 14.6% 18.8% 15.1% 11.2%
P&C Loss ratio
P&C Expense ratio
P&C Combined ratio
Life expense ratio by country
Assicurazioni Generali Group – 9M 2013 results
35 Focus on operating result
9M12
9M13 Like for
like ∆
Italy 1,432 1,590 11.0%
France 529 560 5.8%
Germany 463 490 6.0%
CEE 349 307 -12.1%
RoE 700 733 4.7%
RoW 201 98 33.4%
Operating result(1) 3,674 3,778 6.5%
Op. holding expenses (221) (268) +21.0%
Consolidation Adj. (161) (149) -7.9%
Total operating
result
3,292 3,361 +6.2%
Operating result by country(1) (Euro m)
883
405 248
129 333
74
517
155
208
159
274
26
190
34
19
127
-2 Italy France Germany CEE RoE RoW
Life P&C Financial
Operating result breakdown(1) (Euro m)
(1) Operating result = operating result of life, P&C and financial segments, before holding expenses and consolidation adjustments
1,590
560 490 307
733
98
IV. BACK UP
Assicurazioni Generali Group – 9M 2013 results
36
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) (258)
Net IFRS Total Operating result 1,710 2,040 1,872 1,951
Average shareholder's equity (excluding
OCI(3)) 17,268 17,131 17,252 16,699
Operating RoE 9.9% 11.9% 10.8% 11.7%
Operating Return on Equity: calculation
(1) 9M13 Operating RoE not annualised
(2) Taxes based on mid-point of long term expected range of 33-36%
(3) For the definitions refer to the related section in the backup
(Euro m)
Assicurazioni Generali Group – 9M 2013 results
IV. BACK UP
37
2,196 2,071
Life operating result
Operating result (Euro m)
9M13 9M12
-2.0%(1)
Operating result by country (Euro m)
IV. BACK UP
9M12 9M13 Like for
like
Italy 991 883 -10.9%
France 348 405 +16.3%
Germany 236 248 +5.1%
CEE 136 129 -5.0%
RoE 335 333 -0.7%
Of which: %
Spain 88 82 -6.8%
Austria 51 57 +12.7%
Switzerland 90 103 +15.0%
RoW 150 74 +9.2%
Total 2,196 2,071 -2.0%
(1) On like for like basis
Assicurazioni Generali Group – 9M 2013 results
38 P&C operating result
9M13 9M12
+20.3%(1)
IV. BACK UP
9M12 9M13 Like for
like
Italy 275 517 +87.9%
France 181 155 -14.5%
Germany 187 208 +11.0%
CEE 195 159 -18.7%
RoE 267 274 +2.6%
Of which: %
Spain 114 117 +2.6%
Austria 67 83 +24.9%
Switzerland 38 40 +5.6%
RoW 53 26 +249.5%
Total 1,158 1,339 +20.3%
Operating result (Euro m) Operating result by country (Euro m)
(1) On like for like basis
Assicurazioni Generali Group – 9M 2013 results
1,158
1,339
39 Focus on impairments(1)
(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
Total net impairments 667 441 212 163 16 (4) 894 599
Of which
Operating net
impairments 509 319 0 0 13 0 522 319
Non operating net
impairments 158 122 212 163 3 (4) 372 280
(1) Net of reverse impairments
(2) Including subsidiaries and associated companies
IV. BACK UP
Assicurazioni Generali Group – 9M 2013 results
40 Focus on realised gains(1)
(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 Fixed Income 238 1,169 43 133 (1) 16 280 1,318
Realised gains 2,308 1,294 173 151 6 19 2,487 1,465
Realised losses (2,070) (125) (130) (18) (7) (3) (2,207) (146)
Net realized gains on Real Estate 70 52 72 101 0 0 142 154
Realised gains 76 59 76 117 0 0 153 176
Realised losses (7) (7) (4) (15) 0 0 (11) (22)
Net realized gains on Other(2) 11 20 26 1 (2) 2 35 24
Realised gains 11 35 26 6 1 2 38 43
Realised losses 0 (15) 0 (5) (3) 0 (3) (20)
Total net realized gains 443 1,629 121 306 (2) 136 561 2,069
Operating net realized gains 512 1,641 0 0 0 50 513 1,688
Non operating net realized gains (69) (11) 121 306 (2) 86 48 381
(1) Excluding financial instruments at fair value through profit and loss
(2) Including subsidiaries and associated companies
IV. BACK UP
Assicurazioni Generali Group – 9M 2013 results
41 Reclassified P&L account
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 service activities 590 592
Operating income from other financial instruments 8,325 9,545
Operating income from financial instruments at fair value through profit or loss 4,463 2,906
of which net income from fin. assets and liabilities where the risk is borne by the policyholders 3,409 2,278
Operating holding expenses (221) (268)
Net other operating expenses (253) (341)
Non-operating result (1,046) (889)
Non-operating income from other financial instruments (324) 101
Non-operating income from financial instruments at fair value through profit or loss 20 (75)
Non-operating holding expenses (496) (597)
Interest expenses on financial debt (493) (564)
Other non-operating holding expenses (3) (33)
Net other non-operating expenses (246) (318)
Earnings before taxes 2,246 2,473
Income taxes (869) (738)
Result from discontinued operations (22) 60
Consolidated result of the period 1,355 1,795
Result of the period attributable to minority interests (222) (205)
Result of the period 1,133 1,591
IV. BACK UP
Assicurazioni Generali Group – 9M 2013 results
42
(Euro m) Life Non life Financial(1)
Unallocated holding
expenses Consolidation
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) (10,949) - - (1) (46,972)
of which var. of provisions related to unit linked business (3,279) - - - - (3,279)
Acquisition and administration costs (3,555) (4,295) (637) - - (8,487)
Net fee and commission income and net income from financial service activities 70 - 621 - (101) 590
Operating income from other fin. Instruments 7,314 764 297 - (51) 8,325
Operating income from fin. Instruments at fair value through profit or loss 4,322 35 106 - - 4,463
of which net income from fin.assets and liabilities where the risk is borne by the policyholders 3,409 - - - - 3,409
Operating holding expenses - - - (221) - (221)
Net other operating expenses (17) (160) (67) - (9) (253)
Non-operating result (341) (173) (26) (496) (11) (1,046)
Non-operating income from other fin.instr. (227) (91) (5) - (2) (324)
Non-operating income from fin. instr.at fair value through profit or loss - 20 - - - 20
Non-operating holding expenses - - - (496) - (496)
Net other non-operating expenses (114) (102) (21) - (9) (246)
Earnings before taxes 1,855 986 294 (717) (172) 2,246
Reclassified P&L account by segment – 9M12
IV. BACK UP
(1) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Report
Assicurazioni Generali Group – 9M 2013 results
43
(Euro m) Life Non life Financial(1)
Unallocated holding
expenses Consolidation
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) (10,369) - - - (45,782)
of which var. of provisions related to unit linked business (2,605) - - - - (2,605)
Acquisition and administration costs (3,487) (4,069) (628) - - (8,184)
Net fee and commission income and net income from financial service activities 61 - 641 - (110) 592
Operating income from other fin. Instruments 8,495 763 324 - (36) 9,545
Operating income from fin. Instruments at fair value through profit or loss 2,763 26 116 - - 2,906
of which net income from fin.assets and liabilities where the risk is borne by the policyholders 2,278 - - - - 2,278
Operating holding expenses - - - (268) - (268)
Net other operating expenses (67) (185) (86) - (3) (341)
Non-operating result (267) (79) 55 (597) - (889)
Non-operating income from other fin.instr. (133) 144 91 - - 101
Non-operating income from fin. instr.at fair value through profit or loss - (75) - - - (75)
Non-operating holding expenses - - - (597) - (597)
Net other non-operating expenses (134) (148) (36) - - (318)
Earnings before taxes 1,804 1,259 422 (864) (149) 2,473
Reclassified P&L account by segment – 9M13
IV. BACK UP
(1) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Report
Assicurazioni Generali Group – 9M 2013 results
44
IV. BACK UP
Focus on 3Q13 results
(1) Including investment contracts
(2) On like for like basis
(Euro m) 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
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 15,834 15,298 18,668 19,145 16,309 14,217 -2.0%
Life net inflows 1,678 (651) 760 (1,138) 1,515 2,399 2,913 2,109 1,566 +11.3%
Combined ratio % 96.7% 96.4% 95.4% 98.8% 95.7% 92.8% 93.6% 95.8% 95.9% +0.3%
Life operating result 315 564 819 832 545 462 797 683 591 +13.2%
P&C operating result 405 357 411 344 404 505 520 389 430 +11.7%
Financial operating result 68 63 126 85 109 88 119 153 95 -12.1%
Operating holding expenses
and cons. adj.(96) (155) (126) (148) (109) (128) (108) (176) (133) +21.8%
Total operating result 692 827 1,230 1,113 949 928 1,328 1,049 984 +8.5%
Net result 20 31 567 274 291 (1,043) 603 478 510 +75.2%
Assicurazioni Generali Group – 9M 2013 results
45
IV. Backup
Agenda
P&L
Balance sheet
Life
Definitions
Assicurazioni Generali Group – 9M 2013 results
46 Consolidated balance sheet
(1) Including reinsurance amounts of technical reserve, deferred tax assets, deferred acquisition costs and other assets
(Euro bn) FY12 9M13
Intangible assets 9.9 9.7
Investments
Cash
374.1
21.6
381.0
17.7
Other credits 11.1 12.1
Tangible assets 5.0 5.0
Other assets (1) 20.0 25.0
Total Assets 441.7 450.5
(Euro bn) FY12 9M13
Shareholders’ Equity
(Group share) 19.8 19.2
Minority interests 2.7 1.8
Shareholders’ Equity 22.6 21.1
Operating debt 50.7 50.2
Financial debt 13.2 12.7
Technical reserves 336.4 340.7
Payables and other
provisions 9.5 10.2
Other liabilities 9.4 15.6
Total Liabilities and
Shareholders’ Equity 441.7 450.5
IV. BACK UP
Assicurazioni Generali Group – 9M 2013 results
47 Assets under management
Unit Linked
Third parties AUM
IV. BACK UP
(1) For definitions refer to the related section in the backup
Assicurazioni Generali Group – 9M 2013 results
99.9
339.0
56.7
338.8
53.8
97.4
Fixed income
instruments
Other
Real Estate
Equity
“Own Investments”(1)
Cash & equival.
5.1%
81.2%
4.5%
4.9%
3.4%
Total
Euro 490 bn
Total
Euro 497 bn
9M13 FY12
48 Investment yields(1)
(1) For definitions refer to the related section in the backup.
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 -0.1 8.6 2.1
P&C
Current 2.9 2.6 2.1 2.4 6.1 5.3 1.3 2.6 3.2 2.9
Total P&L 3.1 3.1 -1.8 3.4 3.9 4.0 1.8 1.6 2.5 2.9
Comprehensive 7.6 2.2 4.0 8.3 3.8 3.9 1.6 1.7 5.9 2.7
TOTAL
Current 3.1 2.9 2.7 2.7 5.7 5.4 0.9 1.1 3.0 2.8
Total P&L 3.3 3.4 1.1 5.7 3.9 3.5 1.3 0.2 3.0 3.2
Comprehensive 9.1 1.9 7.0 9.9 3.7 3.4 1.2 0.2 7.9 2.2
Fixed Income EquitiesInvestment
PropertiesOther Total
IV. BACK UP
Assicurazioni Generali Group – 9M 2013 results
49
19,22318,433
510213
35
0
37
(4)
IFRS Shareholders’ equity roll forward – Quarterly evolution
Shareholders’
Equity 1H2013
Δ in AFS
Reserve
3Q 2013
Net Result
Δ Currency
Translation
Reserve
Δ Cash Flow
Hedge Reserve
Dividend paid Other Shareholders’
Equity 9M13
+4.3%
(Euro m)
Change in AFS reserve (Euro m)
2,151381,938
(113)
288
AFS Reserve
1H13
Impact Equity Investments
Impact Bond Investments
Other AFS Reserve 9M13
Assicurazioni Generali Group – 9M 2013 results
IV. BACK UP
50 AFS reserve breakdown
(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
IV. BACK UP
Assicurazioni Generali Group – 9M 2013 results
51
18.1 18.2
25.1 26.0
Regulatory Solvency I development in 3Q13
9M13 1H13
139% 143%
(Euro bn)
Main drivers of change
IV. BACK UP
Available margin
Consolidated result:
Own shares placement:
GDH 3% minorities buyout
Financial markets and other elements:
Required Margin
+ 0.6
+ 0.2
- 0.2
+ 0.2
+ 0.1
Required margin Available margin Solvency I ratio
Assicurazioni Generali Group – 9M 2013 results
52
(12)
425
773
1,850
(344)
2,530
(307) (1,326)
681
196 (644)
1,032
270 (244)
1,308
3Q132Q131Q134Q123Q122Q121Q124Q113Q112Q111Q114Q103Q102Q101Q10
Total comprehensive income(1)
(Euro m)
3M10 6M10 9M10 12M10 3M11 6M11 9M11 12M11 3M12 6M12 9M12 12M12 3M13 6M13 9M13
1,308 1,064 2,096 1,452 270 466 (860) (1,166) 2,530 2,186 4,036 4,717 425 413 1.186
+4,000 m
-1,000 m
IV. BACK UP
(1) For definitions refer to the related section in the backup
Assicurazioni Generali Group – 9M 2013 results
53
IV. Backup
Agenda
P&L
Balance sheet
Life
Definitions
Assicurazioni Generali Group – 9M 2013 results
54 Life new business: APE
IV. BACK UP
Assicurazioni Generali Group – 9M 2013 results
(Euro m) APE Annual Premiums Single Premiums
9M12 9M13Like for like
9M12 9M13
Like for like
9M12 9M13
Like for like
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 -2.4% 2,119 3,207 50.5%
CEE 108 126 -14.1% 100 120 -11.8% 78 66 -41.2%
RoE 447 440 -1.2% 298 272 -8.3% 1,494 1,685 12.9%
Austria 73 66 -9.0% 57 50 -12.4% 160 164 3.0%
Spain 79 90 13.0% 33 38 15.0% 463 517 11.6%
Switzerland 70 44 -35.9% 63 43 -30.4% 75 14 -81.4%
RoW 159 113 2.3% 131 93 1.9% 279 198 5.8%
Total 3,184 3,211 1.1% 1,893 1,919 1.5% 12,906 12,921 0.7%
9M13 amounts include the contributions from USA and MEXICO only for 1Q13. Such contributions, as well as other perimeter and FX rates changes, are neutralized in the like for like variation.
55
IV. Backup
Agenda
P&L
Balance sheet
Life
Definitions
Assicurazioni Generali Group – 9M 2013 results
56 Definitions: P&L and balance sheet (1/3)
IV. BACK UP
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 + harvesting return (net realized gains, net impairments and net unrealized
gains reported in P&L) – investments related expenses
Comprehensive return:
i) for fair value investment (AFS, FVthPL) = current return + total change in fair value;
ii) for investment at amortised cost (Real estates, loans, HtM) = Total P&L return
Investment returns for Life segment include income from bonds and loans issued by Group companies and
investments in consolidated subsidiaries backing policyholders’ liabilities
Life Net Inflows Premiums inflows in the period less benefits paid to the policyholders. It does not include revaluation of
mathematical reserves
Life Operating Result consists of the following elements:
i) "Technical Margin" includes loadings, risk result, surrender result; it is gross of acquisition and administration costs
ii) "Investment Result" includes interests and dividends, interest expenses on operating debt, G/L on foreign currency
and investment expenses, net of policyholder benefits; it includes also operating realised and unrealised G/L, net of
policyholder benefits
iii) "Expenses" include acquisition and administration costs and other net operating items (it does not consider any
loading charged to policyholders)
“Operating ratio on Investments” is calculated as Operating result on the average of Investments at book
value
Like for Like changes The change of written premiums, net cash inflow, APE and NBV is on equivalent terms (on equivalent
exchange rates and consolidation area). The change of operating results, AUM and technical reserves is
calculated excluding Generali Banorte and Generali US Life RE from the comparative period
Operating Result Operating result of life, P&C and financial segments, before holding expenses and consolidation adjustments
Assicurazioni Generali Group – 9M 2013 results
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 with credit institutions
ii) Equity-like instruments as quoted and unquoted equities and alternative investments
iii) Real estate investments excluding own used properties
iv) Cash and cash equivalent including Repo and Reverse repo
v) Other investments as investments in non-consolidated subsidiaries, derivatives, receivables from banks or customers
(*) Investment fund units are allocated to each asset class on a look through basis
Own investments for life segment include bonds and loans issued by Group companies and investments in
consolidated subsidiaries backing policyholders’ liabilities.
P&C Operating Result consists of the following elements:
I) "Technical Result" is net of acquisition and administration costs
ii) "Investment Result" includes interests and dividends, interest expenses on operating debt and investment expenses
iii) “Other" includes other net operating items not considered in Technical Result and in Investment Result
“Operating ratio on Investments” is calculated as Operating result on the average of Investments at book
value
Total Comprehensive
Income
Change in shareholders’ equity during the period related to income and expenses recognized in profit or loss
or directly in shareholders’ equity resulting from transactions and events other than transactions with equity
Owners.
Total Operating Result Operating result of life, P&C and financial segments, after holding expenses and consolidation adjustments.
Operating result is a non-GAAP indicator and may differ from similar measure presented by other companies.
Management uses this non-GAAP measure as key indicator in assessing Generali’s performance and believes
that the presentation of these KPI provide useful and relevant information's to shareholders and users on
Generali’s performance. Please refer to the ‘Methodological note on alternative performance measures’
included in the Management Report for details on operating result methodology.”
Definitions: P&L and balance sheet (2/3)
IV. BACK UP
Assicurazioni Generali Group – 9M 2013 results
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 financial debt;
˗ income taxes based on a mid-term expected tax rate as assumed in 2015 Target;
- minorities interests.
Average Group Shareholders’ Equity at the beginning and at the end of each period of valuation, ex-cluding
gains and losses included in Other Comprehensive Income (OCI).
Other Comprehensive
Income (OCI)
Other Comprehensive Income includes net unrealized gains and losses on AFS investments, foreign currency
translation differences, net unrealized gains and losses on hedging derivatives.
Definitions: P&L and balance sheet (3/3)
IV. BACK UP
Assicurazioni Generali Group – 9M 2013 results
59 Definitions: Life APE and NBV
IV. BACK UP
Annual Premium
Equivalent (APE)
is defined as new business annualised regular premiums plus 10% of single premiums
New Business Value
(NBV)
is the present value, at the point of sale, of the projected stream of after tax industrial profits expected to be
generated by the covered new business written in the period, taking into account the actual acquisition costs
incurred in the period of sale, after allowance for:
the cost of financial guarantees and options granted to policyholders
the frictional costs of setting up and holding the required capital
the cost of non hedgeable risks
NBV is defined as the sum of quarterly NBV, calculated with beginning of period economic and operating
assumptions
New Business Margin
(NBM)
is defined as the New Business Value divided by Annual Premium Equivalent
Assicurazioni Generali Group – 9M 2013 results
60
Assicurazioni Generali Group – 9M 2013 results
What’s next
November 27, 2013 - Investor Day
61 Investor Relations Team
Spencer Horgan (Tel.: +44-20-72656480) Head of Investor Relations
Email: [email protected]
Stefano Burrino (Tel.: +39-040-671202)
Email: [email protected]
Emanuele Marciante (Tel.: +39-040-671347)
Email: [email protected]
Veronica Cherini (Tel.: +39-040-671488)
Email: [email protected]
Rodolfo Svara (Tel.: +39-040-671823) Email: [email protected]
Marta Porczynska (Tel.: +39-040-671402) IR Events
Email: [email protected]
Martina Vono (Tel.: +39-040-671548) IR Events
Email: [email protected]
Assicurazioni Generali
P.za Duca degli Abruzzi 2
34132 Trieste, Italy
Fax: +39 040 671338
e-mail: [email protected]
www.generali.com
Assicurazioni Generali Group – 9M 2013 results
62 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 recognise that actual results, performance or events
may differ materially from such expectations because they relate to future events and
circumstances which are beyond our control including, among other things, general
economic and sector conditions.
Neither Assicurazioni Generali S.p.A. nor any of its affiliates, directors, officers
employees or agents owe any duty of care towards any user of the information provided
herein nor any obligation to update any forward-looking information contained in this
document.
The manager charged with preparing the company’s financial reports, Alberto Minali,
declares, pursuant to paragraph 2 of article 154-bis of the Consolidated Law on Financial
Intermediation, that the accounting information contained in this presentation
corresponds to document results, books and accounts records.
Assicurazioni Generali Group – 9M 2013 results
March 2006 November 7, 2013
Generali Group
9M 2013 Results