GENERALI GROUP
9M 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 written premiums, life net inflows, APE and NBV is on equivalent terms (on equivalent exchange rates and consolidation area).
© Generali
November 6, 2014
9M 2014 Results
2
Agenda
- Profit & Loss and Balance Sheet
Page 3
- Business review
Page 9
- Backup
Page 24
© Generali
November 6, 2014
9M 2014 Results
3
Agenda
I. Profit & Loss and Balance Sheet
© Generali
November 6, 2014
9M 2014 Results
Profit & Loss
4
Key 9M 2014 financials at a glance
 Operating Result: Strong positive development thanks to all business segments

Life: Positive performance with improved investment results and lower expenses

P&C: Increase driven by significantly better combined ratio

Costs: general expenses down 1%(1) year on year at €4.6bn despite higher activity
levels

Net Result: Stable reflecting gains from discontinued operations last year (Profit after tax
from continuing operations +7.5%(1))

Solvency I: Significant improvement of Solvency capital position thanks to successful
placement of subordinated bond and financial market development. 169% pro-forma for
disposal of BSI
9M13
9M14
LFL D
3Q13
3Q14
LFL D
Operating result (€ m)
3,259
3,677
+12.8%
964
1,164
+20.8%
Operating RoE(2)
9.5%
10.9%
+1.4%pts.
2.7%
3.5%
+0.8%pts.
Net result (€ m)
1,591
1,588
-0.1%
510
513
+0.6%
EPS (€)
1.03
1.02
-0.8%
0.33
0.33
-0.1%
Net operating EPS (€)
1.06
1.25
+17.5%
0.30
0.41
+34.6%
Shareholders’ equity(3)
19,778
22,538
+14.0%
Solvency I(3)
141%
160%
+19%pts.
November 6, 2014
9M 2014 Results
© Generali
(1) On like for like basis
(2) Not annualized
(3) Comparative data FY13
Profit & Loss
5
Operating result by segment
+12.8%
(€ m)
3,259
228
9M13
LIFE
49
157
3,677
11
(27)
P&C
FINANCIAL
SERVICES
HOLDING EXP.
CONS.AD
9M14
2,300
1,482
323
(290)
(137)
9M13
2,071
1,325
274
(264)
(148)
D
+11.0%
+11.8%
+17.8%
+10.2%
-7.4%
© Generali
November 6, 2014
9M 2014 Results
9M14
Profit & Loss
6
From operating result to net profit
(€ m)
Including:
- € 104 m: VOBA amortization
3,677
(7)
(606)
(299)
1,588
Including:
- € 564 m: Interest costs
OPERATING
RESULT
NON OPER.
INVESTMENT
INCOME
NON OPER.
HOLDING
EXPENSES
NET OTHER
NON OPER.
EXPENSES
(996)
(19)
INCOME TAXES
DISC.
OPERATIONS
MINORITIES
NET RESULT
(161)
9M14
3,677
(7)
(606)
(299)
(996)
(19)
(161)
1,588
9M13
3,259
(1)
(594)
(301)
(719)
150
(205)
1,591
D
+12.8%
n.m.
+2.1%
-0.4%
+38.6%
n.m.
-21.1%
-0.1%
© Generali
November 6, 2014
9M 2014 Results
Balance Sheet
7
Shareholders’ equity
Shareholders’ equity rollforward (€ m)
+14.0%
3,177
1,588
22,538
(701)
19,778
(1,304)
Including:
- € 635 m: GPH buyout
- € 130 m: GDH squeeze out
- € 492 m: defined benefit plan
SHAREHOLDERS'
EQUITY FY13
Δ in AFS RESERVE
9M 2014 NET
RESULTS
DIVIDEND
OTHER
Change in AFS reserve (€ m)
3,246
193
5,678
IMPACT BOND
INVESTMENTS
OTHER
AFS RESERVE 9M14
2,501
(262)
AFS RESERVE FY13
© Generali
IMPACT EQUITY
INVESTMENT
November 6, 2014
9M 2014 Results
SHAREHOLDERS
EQUITY 9M14
Capital
8
Solvency I
Solvency I rollforward (%)
 Significant improvement of Solvency capital position despite the
impact of remaining GPH minorities acquisition, driven by:
Solvency I ratio sensitivities (%)
 Result of the period
Total ratio
30.09.2014
 Successful placement of subordinated bond
 Financial market development
Equities -30%
160
150
 Impact of BSI disposal (+9%pts.) expected to close by 1H15
+19%pts.
141%
10%pts.
(3%pts.)
SOLVENCY I FY13
REQUIRED
MARGIN GROWTH
5%pts
15%pts
Interest rate
+100bps
160%
Interest rate 100bps
177
(8%pts.)
M&A (1)
CONSOLIDATED
RESULT
SUBORDINATED
DEBT
FINANCIAL
MARKETS AND
OTHER
Credit spread +
100bps
153
Real estate -10%
156
SOLVENCY I 9M14
(2)
(1) Including disposal of Fata Danni (+1%pts.), acquisition of the 24% minorities of GPH (-7%pts.) and of 4% minorities squeeze out of GDH (-1%pts.)
(2) For interim closings, no accrued dividends are deducted from available margin
© Generali
142
November 6, 2014
9M 2014 Results
9
Agenda
II. Business review
© Generali
November 6, 2014
9M 2014 Results
Life Insurance
10
Life key financial indicators
(€ m)
9M13
9M14
LFL D
3Q13
3Q14
LFL D
Gross written premiums
32,801
35,728
+9.6%
9,685
11,536
+19.5%
Net inflows
6,515
9,118
+41.7%
1,580
3,193
+102.8%
Life operating result
2,071
2,300
+11.0%
591
748
+26.7%
62
61
-1
21
24
+3
3,211
3,666
+12.7%
908
1,146
+23.3%
New Business Value
670
934
+42.0%
197
283
+42.2%
Margins on APE (%)
20.9%
25.5%
+5.3%
21.7%
24.7%
+3.3%
Life operating ratio on
investments (bps)(1)
APE
(1) Not annualized
© Generali
November 6, 2014
9M 2014 Results
Life Insurance
11
Life Operating result by driver

Strong improvement driven by the investment result and decreasing expense ratio

Technical margin lower due to policyholder share of lower expenses, and lower risk result
+11.0%
© Generali
2,300
9M14
214
2,071
(€ m)
206
(190)
9M13
TECHNICAL MARGIN
INVESTMENT RESULT
EXPENSES
9M14
4,026
1,705
(3,430)
9M13
4,216
1,491
(3,636)
D%
-4.5%
+14.3%
-5.7%
November 6, 2014
9M 2014 Results
Life Insurance
12
Life inflows and technical reserves(1)
 Sharp increase in net inflows (+ 41.7%)
Life Inflows (€ m)
9M13
9M14
Italy
788
3,652
France
67
398
3,635
2,183
Germany

Excellent performance in Italy and EMEA

Recovery in France in 3rd quarter

Decrease in Germany due to contraction of cash-in
following planned reduction of single premiums
 Overall growth in reserves of 5.3% from end 2013 (of
which +11.3% increase in unit linked)
5.3%
(€ bn)
CEE
424
359
1,174
2,194
Lat. Am.
216
187
Asia
184
125
EMEA
325.3
1.3
10.6
9.1
(3.9)
58.9
65.6
276.8
266.4
International
TOTAL
26
20
6,515
9,118
FY13
NET INFLOWS
LOADINGS,
RISK &
SURRENDER
RESULT
POLICYH.
SHARE OF
INVEST.
RESULT
Unit linked
(1) Including liabilities related to investment contracts
© Generali
November 6, 2014
342.4
9M 2014 Results
EXCHANGE
RATES &
OTHER
Traditional
9M14
11.3%
3.9%
Life Insurance
13
Life investment performance
Life segment general account (%)
Euro 282.4 bn
Euro 314.1 bn
1.9%
3.8%
3.5%
4.7%
1.7%
2.3%
3.2%
4.1%
8.1%
34.6%
8.9%
35.0%
Current returns (not annualized)
Euro m
%
9M13
6,929
2.94
Real estate
9M14
7,143
2.72
Equity
9M13
343
2.73
9M14
386
2.98
9M13
449
4.53
9M14
442
4.42
9M13
7,976
2.90
9M14
8,178
2.74
Other
Cash & cash
equivalent
Fixed income
Equity
Other fixed
income
Corporate bonds
Real Estate
43.3%
44.9%
Government
bonds
Total
FY13
© Generali
(1)
9M14
(1)
(1) Net of depreciation expenses
November 6, 2014
9M 2014 Results
Life Insurance
14
Life new business analysis
 Excellent APE development (+12.7%) on account of good growth for both annual (+5.8%) and single
premiums (+23.1%)
 NBM improves (+5.3p.p. on homogeneous basis) on account of the reduction of guarantees offered (in Euro
area from 1.20% at 9M13 to 0.93% at 9M14) and of the higher profitability of unit linked business
 Solid NBV at Euro 934 m (+42.0%)
(€ m)
APE
NBV
Margin on APE (NBM)
9M13
9M14
LFL r
9M13
9M14
LFL r
1,235
1,706
+38.2%
219
474
+116.7%
France
573
627
+9.6%
76
77
Germany
724
608
-20.4%
181
CEE
126
103
-13.9%
EMEA
441
514
Lat. Am & Asia
112
3,211
Italy
Total
© Generali
9M14
LFL r
17.8%
27.8%
+10.1%
+1.7%
13.2%
12.2%
-0.9%
195
+2.7%
24.9%
32.1%
+7.2%
56
33
-24.9%
44.5%
31.9%
-4.7%
+12.2%
113
141
+22.2%
25.7%
27.4%
+2.2%
109
+10.9%
25
14
+53.0%
22.6%
13.3%
+3.7%
3,666
+12.7%
670
934
+42.0%
20.9%
25.5%
+5.3%
November 6, 2014
9M 2014 Results
9M13
P&C Insurance
15
P&C key financial Indicators
LFL D
9M13
9M14
Gross written premiums, of which:
15,915
15,564
-0.2%
4,439
4,395
+1.2%
6,549
8,827
6,319
8,748
+0.2%
+0.0%
1,857
2,422
1,803
2,442
+0.3%
+2.4%
95.0%
93.6%
-1.4%pts.
95.8%
95.0%
-0.7%pts.
2.5%
1.2%
-1.3%pts.
3.5%
1.0%
-2.5%pts.
425
448
Primary Motor
Primary Non Motor
Combined ratio (%)
Of which:
Nat Cat impact (%)
P&C operating result
© Generali
1,325
1,482
November 6, 2014
+11.8%
9M 2014 Results
3Q13
3Q14
LFL D
(€ m)
+5.4%
P&C Insurance
16
P&C Operating result by driver

Improving result reflecting better underwriting margins
+11.8%
13
152
1,325
(9)
(€ m)
© Generali
1,482
9M13
TECHNICAL MARGIN
INVESTMENT RESULT
OTHER
9M14
860
770
(147)
9M13
707
757
(139)
D%
+21.6%
+1.7%
+6.2%
November 6, 2014
9M 2014 Results
9M14
P&C Insurance
17
P&C gross written premiums trends
9M13
9M14
LFL r
Italy
4,304
4,155
-3.5%
France
2,162
2,002
-7.4%
Germany
2,804
2,881
+2.7%
CEE
1,498
1,446
+0.2%
EMEA
3,384
3,394
+0.3%
Lat Am
843
773
+23.2%
Asia
77
78
+3.1%
International
842
835
-0.9%
15,915
15,564
-0.2%
(€ m)
Total
© Generali
November 6, 2014
Overall stable premium development:
 Decline in Italy primarily driven by Motor. Growth
in Personal and Commercial lines offset by lower
premiums in Accident & Health
 Decline in France driven by a competitive market
environment and portfolio restructuring activities
 Improvement in Germany thanks both to Motor
and Non-Motor (driven by Personal and
Commercial)
 Sharp increase in Latin America (on like for like
basis), mainly driven by Argentina (reflecting
inflation effect)
9M 2014 Results
P&C Insurance
18
Combined ratio analysis
Expense ratio (%)
- 0.1%pts.
26.8
Combined ratio (%)
Administr.
costs
- 1.4%pts.
95.0
93.6
(0.1)
Acquisition
costs
5.9
26.8
(0.1)
5.8
21.0
20.9
Δ%pts
(1.4)
26.8
(0.0)
26.8
9M13
Δ Admin
Δ Acq.
9M14
Loss ratio (%)
- 1.4%pts.
68.2
68.2
66.8
(0.3)
9M13
9M13
Δ Expense ratio
Loss ratio
© Generali
Δ Loss ratio
9M14
Expense ratio
November 6, 2014
9M 2014 Results
0.2
66.8
(1.3)
Current year NAT CAT
Prior years
9M14
9M14
69.6
1.2
-4.0
66.8
9M13
69.8
2.5
-4.2
68.2
P&C Insurance
19
Combined ratio by country
COUNTRY
 Combined ratio improving in Italy, despite
Nat Cat impact (+0.9%pts.)
∆
9M13
9M14
Italy
91.6%
89.1%
-2.5%pts.
France
101.0%
105.4%
+4.4%pts.
Germany
95.9%
93.5%
-2.5%pts.
CEE
89.5%
87.3%
-2.1%pts.
EMEA
95.7%
94.5%
-1.2%pts.
Lat Am
103.8%
107.7%
+3.9%pts.
Asia
133.6%
96.6%
-37.0%pts.
International
90.4%
81.2%
-9.3%pts.
Total
95.0%
93.6%
-1.4%pts.
© Generali
November 6, 2014
 Combined Ratio in France strongly
impacted by Nat Cat (3.2%pts.) and
portfolio restructuring activities
 Germany and CEE, benefitting from
lower Nat Cat events (significant flood
losses in 2013)
9M 2014 Results
P&C Insurance
20
P&C investment performance
P&C segment general account (%)
Euro 37.7 bn
Current returns (not annualized)
Euro 39.7 bn
1.1%
10.0%
1.5%
8.7%
13.1%
12.6%
Other
Euro m
%
9M13
653
2.56
Fixed income
9.9%
10.0%
Cash & cash
equivalent
9M14
662
2.54
6.5%
9.9%
Real estate
9M13
67
2.40
9M14
100
2.62
9M13
232
4.48
9M14
212
4.28
9M13
1,040
2.82
9M14
1,021
2.61
Equity
Equity
30.2%
33.6%
Other fixed
income
Real Estate
Corporate
bonds
29.1%
FY13
© Generali
23.7%
(1)
Government
bonds
Total
9M14
(1)
(1) Net of depreciation expenses.
November 6, 2014
9M 2014 Results
Financial Segment
21
Financial segment key financial indicators
9M13
9M14
Operating result (€ m)
274
323
Net fees and commissions (€ m)
341
378
50.0%
47.3%
Cost / income ratio (%)
Third party AUM(1) (€ bn)
36.5
39.1
LFL D
3Q14
+17.8%
79
97
+22.8%
+10.8%
104
127
+21.8%
50.8%
47.4%
-2.7%pts.
+6.9%
(1) Comparative data FY13
© Generali
November 6, 2014
LFL D
3Q13
9M 2014 Results
-3.4%pts.
Final remarks
22
Final remarks
 Pro-forma Solvency I ratio at 169%, comfortably above
target level
 Strong improvement in operating result, driven by all
segments
 Continuing momentum in life volumes and inflows,
with improved mix
 Strong improvement in P&C profitability driven by
lower nat cat and improving underlying margins
© Generali
November 6, 2014
9M 2014 Results
Liability Management transaction
23
Liability Management transaction – Key elements
 Overview:
 Partial Cash Tender on 3 outstanding Hybrids:
Issuer
Generali Finance BV
Generali Finance BV
Generali Finance BV
Nominal value issued Currency
1,275 m
EUR
700 m
GBP
1,250 m
EUR
Coupon %
5.317
6.214
5.479
Issue date
16 June 2006
16 June 2006
8 February 2007
Maturity
Perpetual
Perpetual
Perpetual
Call date
16 June 2016
16 June 2016
8 February 2017
Purchase price
105.875 %
104.875 %
107.000 %
 New Issue of Euro denominated Perpetual Fixed/Floating Rate Notes
 Conditions & Features:
 The Cash Tender is conditional upon the successful completion of the New Issue
 Final acceptance amount in the Cash Tender capped at (no more than) the amount of Hybrids that can be purchased using the
proceeds raised in the New Issue; pro-ration at the Offeror’s discretion if cap is exceeded
 Fixed purchase prices in the Cash Tender and market standard bookbuilding process for the New Issue
 Priority allocation in the New Issue for holders tendering outstanding Hybrids
 Holders seeking priority allocation should request an Allocation Code from the dealer manager banks and include it in their
Tender Instruction and New Issue order, as described in the Tender Offer Memorandum
 Rationale:
 Extend economic duration (to call) of solvency capital instruments
 Efficiently manage capital structure ahead of Solvency II
 Take advantage of low rates environment to secure an attractive running cost for the New Issue
 Provide liquidity to investors
 Expect broadly neutral impact on financial leverage and solvency capital
 Timeline:
 Tender Period: Thursday 6th November to 5pm (CET) Thursday 13th November
 Results: After pricing of the New Issue, which will follow the Tender Period and be no later than 21st November
 Settlement: 5 business days after New Issue pricing for both the Cash Tender and New Issue
© Generali
November 6, 2014
9M 2014 Results
24
Agenda
II. Backup
- Investments
Page 25
- Financial debt
Page 30
© Generali
November 6, 2014
9M 2014 Results
25
Agenda
II. Backup
- Investments
Page 25
- Financial debt
Page 30
© Generali
November 6, 2014
9M 2014 Results
Investments
26
Assets under management
Total portfolio € 465 bn
Breakdown by region and asset class
Italy
4%
By Region
France
3%
10%
31%
Germany
CEE
29%
General account
Unit Linked
23%
9.1%
EMEA
RoW and other
operations
14.1%
76.8%
3%
Third party AUM
1%
4% 5%
Equity
Fixed income
Real estate
Cash & Cash Equivalent
By Asset Class
87%
© Generali
November 6, 2014
9M 2014 Results
Other
Investments
27
Fixed Income Portfolio
Corporate € 93 bn
Covered € 31 bn
Total Portfolio € 312 bn
1% 1%
10.0%
2% 0%
1%
7%
10.5%
Government € 155 bn (1)
10%
14%
4% 8%
10%
10%
46%
16.9%
37%
71%
34%
40%
12.9%
Other fixed Income
4%
Covered
Corporate non fin.
AAA
AA
A
Not Investment Grade
Not Rated
49.7%
Corporate fin.
Government
Fixed income duration
FY13
9M14
Life
7.2
8.0
P&C
4.0
4.6
(1) Italian government bond exposure is 84% of BBB
© Generali
BBB
November 6, 2014
9M 2014 Results
Investments
28
Equity & Equity-like
Total portfolio (€ 17 bn)
Equity (€ 10.9 bn)
Alternative investments (€ 2.7 bn)
Life, P&C and
Financial
21%
Life, P&C and
Financial
1%
24%
15%
14%
65%
Life
Life
P&C
P&C
Financial
75%
Financial
22%
63%
0%
Listed and
Unlisted
24%
Life, P&C and
Financial
Equity
Equity Funds
17%
Alternatives
Quoted
76%
Life
83%
Unquoted
P&C
Financial
© Generali
November 6, 2014
9M 2014 Results
Investments
29
Real Estate (1)
Total portfolio (€ 25 bn (1))
4%
6%
Breakdown by use (2)
Office
11%
Retail
15%
Residential
Breakdown by utilization (2)
64%
Logistic
15%
Other/Mixed
Investment
properties
Own use
Breakdown by country (2)
1%
85%
Italy
20%
37%
2%
France
Germany
16%
CEE
24%
RoE
RoW
(1) Data, at fair value, includes indirect investments, investment properties, own use assets and property inventory
(2) Detail referred to direct investments in real estate only
© Generali
November 6, 2014
9M 2014 Results
30
Agenda
II. Backup
- Investments
Page 25
- Financial debt
Page 30
© Generali
November 6, 2014
9M 2014 Results
Financial debt
31
Debt refinancing operations completed
Financing until 2016 call dates completed; € 1 bn net reduction in debt levels by end 2015
(€ bn)
1.0
1.3
12.8
12.9
(0.5)
FY13


© Generali
12.2
(1.5)
SENIOR BOND REPAYMENT SUB DEBT SENIOR DEBT
ISSUED JAN OF INELIGIBLE ISSUED MAY REPAYMENT
2014
LOAN
2014
MAY 2014
(0.8)
9M14
NOVEMBER
2014 SENIOR
MATURITIES
11.7
(0.5)
EXPECTED
FY14
2015
MATURITIES
EXPECTED
FY15
Advantage taken of market conditions to pre-finance until 2016 call dates:

€ 1.25 bn senior debt issued in January, with € 2.25 bn senior maturing this year (remainder financed from
internal resources, in excess of 1/3rd target)

€ 1.0 bn subordinated bond issued in May to 1) Replace € 500 m ineligible loan at year end, and 2) Prefinance 2015 maturities of € 0.5 bn.
Net € 1 bn improvement in debt position expected by 2015, with lower interest expenses ( € 60 m)
November 6, 2014
9M 2014 Results
Financial debt
32
Focus on financial debt
Average cost & maturity of financial debt (%)
Total financial debt (€ m)
€ 12,758 m
FY13
9M14
5.93%
5.71%
Subordinated/Hybrid
6.54%
6.41%
Senior
4.81%
4.26%
Average cost (%)
Average maturity (years)
5.27
€ 12,956 m(1)
678
603
7,612
8,133
4,468
4,220
FY13
9M14
5.71
Senior
Sub/Hybrid
Other
(1) The amount of financial debt as of September, 30, includes the subordinated bond issued in May 2014 for a nominal amount of € 1 bn to refinance part of the 2015 maturities
© Generali
November 6, 2014
9M 2014 Results
Financial debt
33
Financial debt
breakdown(1)
by expiry date/call date
(€ m)
2,635
2,177
1,750
1,449
1,268
1,250
770
750
500
250
2014
2015
2016
2017
Senior
2018
2019
Hybrid
2020
2022
2024
Subordinated
(1) This breakdown still takes into account the Senior bonds maturing in 2014 that will be reimboursed with internal resources and 2015 already refinanced.
© Generali
November 6, 2014
9M 2014 Results
2026
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.
© Generali
November 6, 2014
9M 2014 Results
35
Next events
19.11.2014
2014 Investor Day
12.03.2015
FY 2014 results reporting
30.04.2015
Annual General Meeting
14.05.2015
1Q 2015 results reporting
30.07.2015
1H 2015 results reporting
05.11.2015
9M 2015 results reporting
© Generali
November 6, 2014
9M 2014 Results
36
Team
Spencer Horgan
Marta Porczynska
Head of Investor & Rating Agency Relations
Team Assistant & Event Manager
[email protected]
[email protected]
+44 20 7265 6480
+39 040 671402
Stefano Burrino
Martina Vono
Senior IR Manager
Team Assistant & Event Manager
[email protected]
[email protected]
+39 040 671202
+39 040 671548
Emanuele Marciante
Senior IR Manager - Credit & Rating Agency Relations
[email protected]
+39 040 671347
Veronica Cherini
IR Manager
[email protected]
+39 040 671488
Assicurazioni Generali
P.za Duca degli Abruzzi 2
34132 Trieste, Italy
Fax: +39 040 671338
e-mail: [email protected]
www.generali.com
Rodolfo Svara
IR Manager
[email protected]
+39 040 671823
© Generali
November 6, 2014
9M 2014 Results
37
Thank you
© Generali
November 6, 2014
9M 2014 Results
GENERALI GROUP
9M 2014 Results
© Generali
November 6, 2014
9M 2014 Results