Generali Group 1Q 2009 Results

Generali Group
1Q 2009 Results

Milan, May 13, 2009

Agenda 2

I. Overview

II. Group financials

III. Final remarks

IV. Backup

Assicurazioni Generali Group – 1Q 2009 results

Agenda 3

I. Overview
1Q 2009 results at a glance


I. OVERVIEW

1Q 2009 results at a glance 4

(Euro m)

1Q 2008 1Q 2009 Δ historical (%)

Operating Result 1,155 1,009 -12.7%

Net Result 910 104 -88.6%

FY 2008 1Q 2009 Δ historical (%)

Shareholders’ Equity 11,313 11,013 -2.7%


Agenda 5

II. Group financials
Profit & loss review

Shareholders’ equity

Life & P&C profitability


II. GROUP FINANCIALS

Revenues development by segment 6

1Q 1Q ∆ historical ∆ like for like(1)
2008 2009 (%) (%)
(Euro m)

Gross written premiums 18,429 18,479 +0.3 -2.7

Life(2) 12,058 11,889 -1.4 -3.7

P&C 6,371 6,590 3.4 -0.8

(1) Calculated considering equivalent exchange rates and scope of consolidation
(2) Including investment contracts for Euro 606.6 m in 1Q 2009 and Euro 410.3 m in 1Q 2008



Operating result by segment 7

Operating result by segment (Euro m)

historical (%)
Life 562.9
-4.0
586.1
operating result
P&C 448.9
-21.1
operating result 568.7
Financial services 92.4
+2.9
operating result 89.8
Operating holding -62.7
+12.0
expenses -71.2
Consolidation -32.5 Impairments: -80.4
adjustments -18.0 Euro 1 bn

1,008.9
Total -12.7
1,155.3
operating result

1Q09
(1)
1Q08
(1) 1Q 2008 operating result has been restated to conform to the current definition of the operating result (refer to the Appendix of the Consolidated Report Methodology
Note on Alternative Performance Measures)



From operating result to net result 8

(1)
(Euro m) 1Q 2008 1Q 2009 (%)
Total operating result 1,155.3 1,008.9 -12.7
Non operating investment income 341.3 (521.8)
Of which impairments (25.8) (513.1)

Non-operating holding expenses (171.8) (172.4)
Interest expenses on financial debt (166.3) (165.2)

Other non-operating holding expenses (5.5) (7.2)

Net other non operating expenses (15.4) (93.7)
Total non operating result 154.1 (787.8) n.m.
Consolidated result of the period before taxes 1,309.4 221.1 -83.1
and minority interests

Income taxes (314.9) (62.3)
Minority interests (84.2) (55.1)
Net result of the period 910.3 103.8 -88.6
(1) 1Q 2008 operating result has been restated to conform to the current definition of the operating result (refer to Appendix to the Consolidated Report ‘Methodology
Note on Alternative Performance Measures)



IFRS Shareholders’ equity roll forward 9

IFRS Shareholders’ equity roll forward (Euro m)

-2.7%

104
11,313
11,013
(43)
(107) (132) (122)

Shareholders’ Δ in AFS 1Q 2009 Δ Currency Δ Cash Flow Other Shareholders’
Equity FY08 Reserve Net Result Translation Hedge Reserve Equity 1Q09
Reserve
Change in AFS reserve (Euro m)

196

(1,106) (257) (46) (1,213)

Impact Equity Impact Bond
AFS Reserve Other AFS Reserve
Investments Investments 1Q09
FY08



Investment(1) portfolio 10

Own investments (Euro 286.1 bn)

Other(2)
Fixed income
In this macro economic
81.7% 6.6%
environment, the risk profile of our
investments remains prudent
Government bonds represent
56.5% of total bond portfolio
Real Estate(3)
Equity exposure net of hedging:
5.1%
4.7%
No further commitments in
Alternative Investments expected in
the short term
Equity
6.6%

(1) Own investments Including own capital and insurance funds (i.e. unit linked excluded)
(2) Including investments in subsidiaries, associated companies and JVs, derivatives,
receivables from banks or customers
(3) Including real estate mutual funds



Life & Health: New Business Annual Premium Equivalent 11

Limited APE contraction: -6.0% on a like for like basis, net of 2008 “Riester-step” in Germany

Italy: positive development in traditional annual
(Euro m)
Historical Like for like(1)
1Q 1Q premiums offset by a planned decrease in low
% %
2008 2009
margin single premium products sold via
-9.6 -9.6
Italy 334 301
Financial Advisors channel.
France: slowdown of unit-linked business
-7.4 -7.2
France 355 329 partially offset by positive development of
traditional single premium business (+4.4%).
Germany: normalizing the impact of one-off
-24.7 -30.4
Germany 369 278
“Riester-step” effect in 2008, APE decreases by
only -1.2%.
-26.1 -6.7
CEE 49 37
CEE: negative performance (-6.7% on a like for
like basis) due to adverse market conditions.
-2.5 -4.4
RoW 258 251 Rest of World: excellent growth in Far East and
USA (respectively +116.4% and +28.3% on a like
for like basis) offsetting negative development in
-12.4 -13.5
Total 1,365 1,196
other countries.

(1) Neutralizing impacts of variations in exchange rates and scope of consolidation



Life profitability 12

Life operating result (Euro m) Life Operating result by market (Euro m)
1Q 2008 1Q 2009 %

Italy 310.6 273.0 -12.1
-4.0%
France 164.5 103.5 -37.1

586.1 Germany 71.2 49.5 -30.5
562.9

n.a.(1)
CEE 5.4 93.0

RoW 34.4 43.9 +27.9

1Q08 1Q09 Total 586.1 562.9 -4.0

(1) +79.3% on like for like basis

(EUR m) FY 2008 1Q 2009 %
+0.3
Life Net Tech. Reserves(2) 283,305 284,259
+1.1
traditional 241,433 243,982
linked 41,872 40,277 -3.8
(2) Including investment contracts

1Q09 net inflow(3) amount to Euro 3.2 bn
(3) Net inflow: premiums written in the period less surrenders and maturity. It does not include revaluation of mathematical reserves



P&C Gross Written Premiums 13

We preserved production despite challenging markets

Italy: continuing negative trend in motor business
(Euro m)
(decrease of new vehicles matriculations around
Like for like(1)
Historical
% %
1Q2008 1Q 2009 19% in first quarter); confirmed dynamism in retail
lines but middle market and corporate lines
Italy 1,800.0 1,702.6 -5.4 -5.4
affected by negative economic situation
France: in-the-market premium growth, despite
France 1,147.0 1,164.0 1.5 1.5
continued pruning in non profitable motor portfolios
(-3.3%), offset by solid growth in all non-motor
lines of business, particularly retail (Personal
Germany 1,329.7 1,311.5 -1.4 -1.4
+3.9%, Accident & health +3.8%) and middle
segment
CEE 308.2 575.4 86.7 0.1 Germany: slight decrease due to seasonal
concentration of motor renewal campaign affected
by further strong price competition (-4,2%). Steady
RoW 1,786.3 1,836.7 2.8 2.4
growth trend (+1,8%) in profitable non-motor lines,
despite economic recession
Total 6,371.2 6,590.1 3.4 -0.8




P&C profitability – net combined ratio 14

Combined ratio (%) Combined ratio by country (%)

+3.2 pts.
%pts
1Q 2008 1Q 2009
96.3
2.8 Italy(1) 91.0 96.7 +5.7
0.4
93.1

France 95.8 100.6 +4.8
27.1 27.5

Germany 95.7 96.5 +0.8

CEE 94.9 85.9 -9.0
66.0 68.8

RoW 92.0 96.7 +4.7

Loss
1Q08 Expense 1Q09
ratio
ratio
Total 93.1 96.3 +3.2
Loss ratio Expense ratio
(1) Excluding foreign branches



P&C profitability – operating result 15

P&C operating result (Euro m) P&C Operating result by market (Euro m)

1Q 2009 ∆%
1Q 2008
Italy 212.0 109.9 -48.1
-21.1%
France 96.9 51.6 -46.8

Germany 67.2 66.4 -1.1
568.7
448.9
n.a.(1)
CEE 21.6 106.8

RoW 171.1 114.1 -33.3
1Q08 1Q09

Total 568.7 448.9 -21.1



Agenda 16

III. Final Remarks


III. FINAL REMARKS

Final remarks 17

Proactive tariff management to preserve P&C profitability

Prudent investment policy, with careful monitoring of market evolution

Strong focus on operational improvement and efficiency programs


Agenda 18

IV. Backup


IV. BACK UP

1Q09 total gross written premiums 19

Gross Life Written Premiums(1) Gross P&C Written Premiums
(Euro m) Total Gross Written Premiums

YoY YoY
YoY %
GWP increase % weight GWP increase % weight
Country GWP increase weight

(2) (2)
(2)

1,703 -5.4 9.2
Italy 4,991 -8.1 27.0 3,288 -9.5 17.8

1,164 +1.5 6.3
France 4,319 -5.5 23.4 3,155 -7.9 17.1

1,312 -1.4 7.1
Germany 4,344 +4.1 23.5 3,032 +6.6 16.4

575 +0.1 3.1
Eastern Europe 939 -1.4 5.1 364 -3.6 2.0

RoW 3,886 +0.8 21.0 1,836 2.4 9.9
2,050 -0.7 11.1

Of which: Of which: Of which:

Spain 842 +1.0 4.6 485 -4.2 2.6
357 +8.8 1.9

Austria 766 +0.7 4.1 476 +0.8 2.6
289 +0.6 1.6

Switzerland 510 -0.6 2.8 308 +1.9 1.7
203 -4.2 1.1

11,889 -3.7 64.3
Total 18,479 -2.7 100.0 6,590 -0.8 35.7
(1) Including investment contracts


IV. BACK UP

Life premiums by country & business line 20

Life 1Q09
(Euro m) Unit/index
Traditional linked Health Group Total
Italy 79.0% 11.7% 0.0% 9.3% 3,265.1

France 78.3% 9.0% 6.5% 6.2% 3,116.3

Germany 50.7% 25.0% 16.9% 7.4% 3,031.5

Eastern Europe 68.0% 19.6% 10.5% 1.9% 363.9

RoW 41.7% 18.5% 7.1% 32.7% 1,899.6
Of which:

Spain 48.5% 1.4% 0.0% 50.1% 356.8

Austria 50.5% 29.3% 19.0% 1.1% 286.2

Switzerland 21.7% 76.9% 1.2% 0.2% 202.5

Total life gross 65.1% 15.8% 7.6% 11.6% 11,676.4
direct premiums


IV. BACK UP

P&C premiums by country & business line 21

P&C 1Q09
(Euro m) Accident/ Other
(1)
Motor Health personal Commercial Total
Italy 47.3% 18.2% 11.6% 22.8% 1,678.3

France 28.8% 11.0% 34.2% 26.1% 1,102.8

Germany 49.6% 9.5% 31.4% 9.5% 1,310.0

Eastern Europe 54.4% 9.0% 13.8% 22.8% 570.9

RoW 44.0% 13.5% 12.9% 29.5% 1,789.2
Of which:

Spain 29.0% 14.8% 16.0% 40.2% 485.3

Austria 43.6% 8.6% 13.4% 34.5% 456.3

Switzerland 59.1% 24.7% 16.1% 0.2% 305.6

Total P&C gross 44.3% 13.1% 20.0% 22.5% 6,451.1
direct premiums
(1) Including fleets


IV. BACK UP

Life & Health: New Business Annual Premium Equivalent 22

Historical Like for like(1)
%
(Euro m) %
1Q 2008 1Q 2009
-9.6 -9.6
Italy 334 301

-7.4 -7.2
France 355 329

-24.7 -30.4
Germany 369 278

-26.1 -6.7
CEE 49 37

-2.5 -4.4
RoW 258 251

of which: Spain 34 36 +6.3 +6.3

of which: Austria 21 19 -8.4 -8.4

of which: Switzerland 19 20 +1.5 -2.2

-12.4 -13.5
Total 1,365 1,196

(1) Neutralizing impacts of variations in exchange rates and scope of consolidation


IV. BACK UP

Ratios 23

Life – Expense ratio (%) P&C – Combined ratio (%)

96.3
93.1
Expense
27.5
27.1
ratio

Loss
11.3 11.1 68.8
66.0
ratio

1Q08 1Q09 1Q08 1Q09

Total – Expense ratio (%)

16.0
15.8

1Q08 1Q09


IV. BACK UP

Ratios by country 24

P&C ratios by ITA FRA GER CEE SPA AUT SWI Consolidated
country (%)
Loss ratio

1Q09 74.8 73.4 67.4 56.0 67.0 67.1 70.1 68.8

1Q08 69.2 69.4 65.9 63.6 61.7 68.2 71.7 66.0

Expense ratio

1Q09 21.9 27.1 29.1 29.8 24.1 31.3 25.0 27.5
1Q08 21.8 26.3 29.8 31.3 23.0 31.4 23.8 27.1

Combined ratio

1Q09 96.7 100.6 96.5 85.9 91.1 98.4 95.1 96.3

1Q08 91.0 95.8 95.7 94.9 84.7 99.6 95.5 93.1

Life expense ratios by country (%)

1Q09 9.3 7.1 15.3 20.0 4.3 13.7 20.9 11.1

1Q08 9.2 6.8 17.3 26.2 4.4 15.0 22.9 11.3


IV. BACK UP

Combined ratio reconciliation 25

(Euro m)

1Q 2008 1Q 2009
A Net earned premiums (net of consolidation adjustments) 4,780.0 5,012.7

B Consolidated net claims 3,156.8 3,449.1

Consolidated acquisition costs 1,011.7 1,076.3

Consolidated administration costs 303.8 316.2
Non insurance activity related administration costs(1) 22.3 15.5
Insurance activity related consolidated administration costs 281.5 300.7

C Total acquisition and administration costs 1,293.2 1,377.0

B/A Loss ratio 66.0% 68.8%
C/A Expense ratio 27.1% 27.5%
(B+C)/A Combined ratio 93.1% 96.3%
(1) Administration expenses related to service companies, real estate and other companies not belonging to P&C segment


IV. BACK UP

Operating result by country 26

Life operating result by market (Euro m) P&C operating result by market (Euro m)
1Q08 1Q09 %
1Q08 1Q09 %

Italy 212.0 109.9 -48.2
Italy 310.4 273.0 -12.0

France 96.9 51.6 -46.7
France 164.5 103.5 -37.1

Germany 67.2 66.4 -1.2
Germany 71.2 49.5 -30.5

n.a.(1)
CEE 21.6 106.8
n.a.(1)
CEE 5.4 93.0

RoW 171.0 114.2 -33.2
RoW 34.6 43.9 +26.9

Of which:
Of which:

Spain 71.2 53.1 -25.4
Spain 23.1 24.6 +6.5

Austria 14.8 13.5 -8.8
Austria 3.1 4.5 +48.0

Switzerland 17.6 10.5 -40.4
Switzerland 2.3 13.0 +456.8

Total 568.7 448.9 -21.1
Total 586.1 562.9 -4.0



IV. BACK UP

Reclassified P&L account 27

(Euro m) Total
1Q 2008 1Q 2009
Operating result(1) 1,155.3 1,008.9
Net earned premiums 16,257.2 16,129.1
Net insurance benefits and claims (11,436.1) (13,216.6)
Acquisition and administration costs (2,787.7) (2,842.2)
Net fee and commission income and net income from financial service activities 184.8 149.9
Operating income from investments (840.4) 961.7
Operating holding expenses (71.2) (62.7)
Net other operating expenses (151.2) (110.2)
Non-operating result(1) 154.1 (787.8)
Non-operating income from investments 341.3 (521.8)
Non-operating holding expenses (171.8) (172.4)
Interest expenses on financial debt (166.3) (165.2)
Other non-operating holding expenses (5.5) (7.2)
Net other non-operating expenses (15.4) (93.7)
Earnings before taxes 1,309.4 221.1
Income taxes (314.9) (62.3)
Consolidated result of the period 994.5 158.9
Result of the period attributable to minority interests (84.2) (55.1)
Group result of the period 910.3 103.8
(1) Refer to the Methodological note on alternative performance measures included in the Consolidated Quarterly Report


IV. BACK UP

Reclassified P&L account by segment – 1Q 2008 28

Unallocated
holding Consolidation
(Euro m) Life Non life Financial(2) expenses adjustments Total

586.1 568.7 89.8 (71.2) (18.0) 1,155.3
Operating result(1)
11,477.1 4,780.1 0.0 - - 16,257.2
Net earned premiums
(8,279.4) (3,156.7) 0.0 - - (11,436.1)
Net insurance benefits and claims
(1,314.1) (1,315.5) (157.9) - (0.2) (2,787.7)
Acquisition and administration costs
Net fee and commission income and net
23.8 0.0 172.9 - (12.0) 184.8
income from financial service activities
(1,281.0) 346.3 90.5 - 3.8 (840.4)
Operating income from investments
- - - (71.2) - (71.2)
Operating holding expenses
(40.3) (85.4) (15.8) - (9.7) (151.2)
Net other operating expenses
(15.9) 344.8 (2.9) (171.8) - 154.1
Non-operating result(1)
1.1 332.5 7.8 - - 341.3
Non-operating income from investments
- - - (171.8) - (171.8)
Non-operating holding expenses
(17.0) 12.3 (10.7) - - (15.4)
Net other non-operating expenses
570.2 913.4 86.8 (243.0) (18.0) 1,309.4
Earnings before taxes
(2) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Quarterly Report


IV. BACK UP

Reclassified P&L account by segment – 1Q 2009 29

Unallocated
holding Consolidation
(Euro m) Life Non life Financial(2) expenses adjustments Total

562.9 448.9 92.4 (62.7) (32.5) 1,008.9
Operating result(1)
11,116.4 5,012.7 0.0 - - 16,129.1
Net earned premiums
(9,767.5) (3,449.1) 0.0 - - (13,216.6)
Net insurance benefits and claims
(1,281.8) (1,392.5) (167.9) - - (2,842.2)
Acquisition and administration costs
Net fee and commission income and net
7.5 (0.1) 166.0 - (23.5) 149.9
income from financial service activities
532.9 316.1 122.1 - (9.4) 961.7
Operating income from investments
- - - (62.7) - (62.7)
Operating holding expenses
(44.6) (38.2) (27.8) - 0.3 (110.2)
Net other operating expenses
(112.2) (484.4) (18.8) (172.4) - (787.8)
Non-operating result(1)
(82.0) (439.8) (0.1) - - (521.8)
Non-operating income from investments
- - - (172.4) - (172.4)
Non-operating holding expenses
(30.3) (44.6) (18.7) - - (93.7)
Net other non-operating expenses
450.6 (35.5) 73.6 (235.0) (32.5) 221.1
Earnings before taxes
(2) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Quarterly Report


IV. BACK UP

Investments 30

FY08 % on total 1Q09 % on total
(Euro m)
Real Estate(1) 12,473 3.8 12,383 3.8

Group Participations 2,568 0.8 2,555 0.8

Loans(2) 69,193 21.2 85,476 26.2

Held to maturity 1,798 0.5 1,974 0.6

Available for sale 173,701 53.1 159,668 48.9

Fin. Instr. at fair value thr. P&L 67,402 20.6 64,386 19.7

Total investments 327,135 100.0 326,431 100.0
(1) Excluding real estate mutual funds
(2) € 14.7 bn corporate bonds (which have A average rating, are listed in an inactive market and Generali Group has the intention and the ability to hold for a
foreseeable future) were transferred from mainly “Available for Sale” category to “Loans” category


IV. BACK UP

Assets Under Management 31

(Euro bn)

-0.5%
395.8 393.7
Third parties
68.6 67.2
AUM

Unit Linked 41.4 40.4

Fixed income
Other (3)
instruments (2)
6.6%
81.7%

286.1
285.8
“Own Real Estate (4)
Investments” (1) 5.1%

Equity
6.6%

FY08 1Q09

(1) “Own Investments” exclude real estate for own use. With this asset class “Own Investments” would amount to € 289.4 bn, compared to € 289.0 bn at the end of 2008
(2) Including mortgage loans, policy loans, deposits under reinsurance business accepted, term deposits with credit institutions and other financial investments, other loans
(3) Including investments in subsidiaries, associated companies and JVs, derivatives, receivables from banks or customers
(4) Including real estate mutual funds


What’s next 32

July 31, 2009 - 1H 2009 Results (Conference call presentation)

November 5, 2009 – 9M 2009 Results (Conference call presentation)


Investor Relations Team 33

Paola Buratti
Head of Investor Relations
(Tel.: +39-040-671157)
Email: paola_buratti@generali.com

Stefano Burrino (Tel.: +39-040-671202) Emanuele Marciante (Tel.: +39-040-671347)
IR Manager IR Manager
Email: stefano_burrino@generali.com Email: emanuele_marciante@generali.com

Veronica Cherini (Tel.: +39-040-671488) Nicoletta Mendes (Tel.: +39-040-671402)
Jr. IR Manager Team Assistant
Email: veronica_cherini@generali.com Email: nicoletta_mendes@generali.com

Tel.: +39 040 671402
Assicurazioni Generali
Fax: +39 040 671338
P.za Duca degli Abruzzi 2
e-mail: generali_ir@generali.com
34132 Trieste, Italy

www.generali.com


Disclaimer 34

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, Raffaele Agrusti,
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 Group 1Q 2009 Results

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Generali Group 1Q 2009 Results