Generali Group 1Q 2010 results

Generali Group
1Q 2010 Results

Milan, May 12, 2010

Agenda 2

I. Overview

II. Group financials

III. Final remarks

IV. Backup

Assicurazioni Generali Group – 1Q 2010 results

Agenda 3

I. Overview
1Q 2010 results at a glance


I. OVERVIEW

1Q 2010 results at a glance 4

Life net inflows (Euro m) Operating result (Euro m)

+90.0%(1) +22.0%(2)

6,111
1,201
1,009
3,184

1Q09 1Q10 1Q09 1Q10

(1) On like for like basis (2) Excluding Intesa Vita, according to IFRS 5 treatment for discontinued
operations. On historical terms, the variations would be +19.1%

Net result (Euro m) Shareholders’ equity (Euro bn)

+407.7% +8.1%

18,002
16,652

527

104

1Q09 1Q10 FY09 1Q10


Agenda 5

II. Group financials
Profit & loss review

Shareholders’ equity

Life & P&C profitability


II. GROUP FINANCIALS

Revenue development by segment 6

1Q 1Q ∆ historical ∆ like for like
(Euro m)
2009 2010 (%) (%)

Gross written premiums 18,479 20,864 +12.9 +16.2

Life(1) 11,889 14,214 +19.6 +25.7

P&C 6,590 6,650 +0.9 +0.0

APE(2) 1,196 1,532 +28.1 +21.3

(1) Including investment contracts for Euro 1,274.0 m in 1Q10
(2) APE amounts are calculated with end of period perimeter and exchange rates – like for like variations neutralize impacts of variations of perimeter and exchange rates



Operating result by segment 7

Operating result by segment (Euro m)
(1)
(%)
Life 866
operating result 563 +60.8

P&C 335
operating result 449 -25.4

Financial services 98
operating result 92 +6.4

Operating holding -67
-63 -7.0
expenses
Consolidation -31
adjustments -33
+5.2

Total 1,201
+22.0
operating result 1,009

1Q10
1Q09
(1) Excluding Intesa Vita in 1Q09 and 1Q10, according to IFRS 5 treatment for discontinued operations. On historical terms, the variations would be +53.8% for the life operating
result and +19.1% for the consolidated operating result



Focus on operating result 8

Operating result by country(1) Operating result breakdown(1) (Euro m)
(Euro m)

1Q09 1Q10 ∆%
Italy 398 472 +26.1(2)
33
France 155 199 +28.8
89
Germany 128 162 +26.9

CEE 204 158 -22.7
2
RoE 188 190 +1.4
350 68 12 36
5
21 44 11
RoW 31 118 +275.0 94 19
130 129 111
Operating result(1) 1,104 1,299 +20.3(2) 59 88

Op. holding expenses 63 67 -7.0 Italy France Germany CEE RoE RoW

Consolidation Adj. 33 31 +5.2
Life P&C Financial
Total operating 1,009 1,201 +22.0(2)
result
(1) Operating result = operating result of life, P&C and financial segments, before holding expenses and consolidation adjustments
(2) On like for like basis



From operating result to net result 9

(Euro m) 1Q09 1Q10 (%)
Total operating result 1,009 1,201 +22.0(1)
Non operating investment income (522) 2
Non-operating holding expenses(2) (172) (193)
Net other non operating expenses (94) (105)
Total non operating result (788) (296) +62.4
Consolidated result of the period before taxes 221 905 +309.3
and minority interests

Income taxes (62) (295)
Result from discontinued operations (Intesa Vita) - 15
Minority interests (55) (99)
Net result of the period 104 527 +407.7
(1) Excluding Intesa Vita in 1Q09 and 1Q10, according to IFRS 5 treatment for discontinued operations. On historical terms, the variation would be +19.1%
(2) Including interest expenses on financial debt



IFRS Shareholders’ equity roll forward 10

IFRS Shareholders’ equity roll forward (Euro m)

+8.1%

527 294 42 18,002
16,652 512
(25)

Shareholders’ Δ in AFS 1Q 2010 Δ Currency Δ Cash Flow Other Shareholders’
Equity FY09 Reserve Net Result Translation Hedge Reserve Equity 1Q10
Reserve

Change in AFS reserve (Euro m)
412 5 1,241
730 94

AFS Reserve Impact Equity Impact Bond Other AFS Reserve
FY09 Investments Investments 1Q10



Solvency I update 11

(Euro bn)
Required margin Available margin Solvency I ratio

128% 129%

21.6 22.3

16.9 17.3

FY09 1Q10(1)

(1) Estimated figures



Investments(1) 12

(Euro bn)

EXPOSURE TO PERIPHERAL EUROPE

GOVERNMENT BONDS
+4.1%
(Euro bn) Gross Net
453.4
435.6 Portugal 3.98 0.67

Spain 4.16 0.80

Third parties 89.0 Ireland 1.79 0.28
83.6
AUM Greece 4.08 0.81

Total 14.01 2.57
42.5 45.0
Unit Linked
Fixed income Other (4)
instruments (3) 4.1%
79.0%
Real Estate (5)
4.6%
“Own 319.4
309.5
Investments” (2) Equity
9.4%

Cash & equival.
2.8%
FY09 1Q10
(1) FY09 own investments restated in order to include cash and cash equivalents. The related weights of asset classes are: fixed income instruments 78.7%, real estate
4.7%, equity 9.0%, cash & cash equivalents 3.4%, other 4.2%
(2) “Own Investments” exclude real estate for own use. With this asset class “Own Investments” would amount to € 322.6 bn, compared to € 312.8 bn at FY09
(3) Including mortgage loans, policy loans, deposits under reinsurance business accepted, term deposits with credit institutions and other financial investments, other loans
(4) Including investments in subsidiaries, associated companies and JVs, derivatives, receivables from banks or customers
(5) Including real estate mutual funds



Life New Business Annual Premium Equivalent 13

Best first quarter ever for the Group, with APE exceeding 1.5 Euro bn

Excellent growth of APE from 1Q2009 to 1Q2010 (+21.3% on a like for like basis), driven by
the strong contribution of single premiums and the recovery of unit linked business

(Euro m) APE
1Q 1Q Historical Like for like
2009 2010 % %

Italy 301 466 +54.7 +34.6

France 329 413 +25.7 +25.7

Germany 278 266 -4.3 -5.2

CEE 37 40 +10.1 -0.5

RoE 135 221 +63.5 +56.6

RoW 116 125 +7.6 -0.4

Total 1,196 1,532 +28.1 +21.3



Strong growth in life business 14

Life gross written premiums (Euro bn) Life net technical reserves(2) (Euro m)

+25.7%(3) +3.4%

7.2 2.5 296.1
286.4
14.2
11.9
Δ

1Q09 1Q10 Traditional Unit
FY09 1Q10
Linked
1Q 2010 251.0 45.1
FY 2009 243.8 42.6
Δ% +2.9% +5.9%

Life net inflows by country(1) (Euro m) Life operating result (Euro m)
Country 1Q09 1Q10 Δ%(3)
+60.8%(3)
Italy (420) 883 n. a.

France 1,495 2,298 +53.7
866
Germany 1,207 1,203 -0.4 563

CEE 133 129 -8.4

TOTAL 3,184 6,111 +90.0 1Q09 1Q10
(1) Net inflow: premiums written in the period less surrenders and maturity. It does (2) Including investment contracts; excluding Intesa Vita in FY09 and 1Q10,
not include revaluation of mathematical reserves according to IFRS 5 treatment for discontinued operations
(3) On like for like basis


P&C Gross Written Premiums 15

First signs of premium recovery in Italy and France
Stable production thanks to geographical diversification
Growth in Retail Non-Motor; Motor and Commercial still under pressure

Historical Like for like(1)
(Euro m) 1Q09 1Q10 % %

Italy 1,703 1,715 +0.8 +0.8

France 1,164 1,223 +5.1 +5.0

Germany 1,312 1,292 -1.5 -1.5

CEE 565 613 +8.4 -1.6

RoE 1,508 1,489 -1.3 -1.8

RoW 339 319 -6.0 -5.2

Total 6,590 6,650 +0.9 +0.0
(1) Calculated considering equivalent exchange rates and scope of consolidation



P&C profitability (1/2) 16

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

+1.7%pts.
1Q 2009 1Q 2010 %pts
0.3 1.4 98.0
96.3 Italy 96.7 97.6 +0.9

France 100.6 99.0 -1.6
27.5 27.8
Germany 96.5 99.5(1) +3.0

CEE 85.9 87.1 +1.2

68.8 70.2
RoE 95.9 101.2 +5.3

RoW 95.2 96.6 +1.4
1Q09 Expense Loss 1Q10
ratio ratio
Total 96.3 98.0 +1.7
Loss ratio Expense ratio

(1) Excluding Nat Cat, the ratio would be 95.7%



P&C profitability (2/2) 17

Loss ratio (%) Reserving ratio (%)(1)

+0.9%pts
1.4 70.2
68.8
508.2 509.1

1Q09 Nat 1Q10 1Q10
1Q09
CAT

1Q 2010 2.3 70.2
1Q 2009 0.9 68.8 (1) On three months basis

Expense ratio (%) P&C operating result (Euro m)
27.5 0.0 0.4 27.8
6.0 6.0
-25.4%

21.5 21.9 Acq. costs
Δ%pts
449
Adm. costs 335

1Q09 Δ Admin Δ Acq. 1Q10 1Q09 1Q10



Global Added Value (GAV)(1) 18

GAV (Euro m) 2009 GAV breakdown (%)

+5.2% Shareholders(2)
13.9%
Employees
14,157 Community
12,635 31.1%
12,011 0.3%

Credit capital
providers(3)
10,0%

State
4.0%

2007 2008 2009 Agents & FAs
40.7%

(1) The Global Added Value (GAV) derives from the reclassification of the consolidated financial statements and expresses the wealth generated by Group operations over the
year for the various stakeholder categories. In practice, GAV is calculated as the difference between the value of goods and services provided by the company and the
value of the goods and services it acquires from third parties
(2) Consolidated result of the period (including minority interests)
(3) Total interest expense (including operating debt)


Agenda 19

III. Final Remarks


III. FINAL REMARKS

Final remarks 20

Business model strength confirmed in a challenging environment

Balanced operating result thanks to sound risk geographical diversification

Results confirm the effectiveness of cost saving initiatives

Non life benefits from repricing actions and high exposure to retail business

Confirmed focus on preserving current yields and protecting value of investments


Agenda 21

IV. Backup


IV. BACK UP

1Q10 total gross written premiums 22

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

Country GWP ∆%(2) % weight GWP ∆%(2) % weight GWP ∆%(2) % weight

(2) (2) (2)

Italy 5,394 +22.6 25.9 3,678 +36.4 17.6 1,715 +0.8 8.2

France 5,255 +21.7 25.2 4,033 +27.8 19.3 1,223 +5.0 5.9

Germany 4,450 +2.4 21.3 3,158 +4.2 15.1 1,292 -1.5 6.2

Eastern Europe 1,013 +0.1 4.9 400 +2.8 1.9 613 -1.6 2.9

RoE 3,437 +25.4 16.5 1,948 +58.9 9.3 1,489 -1.8 7.1

Of which: Of which: Of which:

Spain 686 -18.6 3.3 232 -34.9 1.1 453 -6.5 2.2

Austria 789 +3.1 3.8 322 +11.1 1.5 468 -1.8 2.2

Switzerland 548 +4.9 2.6 219 +5.8 1.1 328 +4.4 1.6

RoW 1,315 +14.9 6.3 997 +23.1 4.8 319 -5.2 1.5

Total 20,864 +16.2 100.0 14,214 +25.7 68.1 6,650 +0.0 31.9
(1) Including investment contracts
(2) Calculated considering equivalent exchange rates and scope of consolidation


IV. BACK UP

Life Premiums by Country & Business Line 23

Life 1Q10
(Euro m) Unit/index
Traditional linked Health Group Total
Italy 88.0% 1.5% 0.0% 10.5% 3,663

France 76.9% 12.7% 5.3% 5.0% 3,985

Germany 46.4% 23.9% 21.1% 8.6% 3,158

CEE 65.9% 22.1% 10.5% 1.5% 400

RoE 24.3% 58.4% 3.4% 13.8% 1,946
Of which:

Spain 54.9% 1.9% 0.0% 43.2% 232

Austria 53.6% 28.8% 17.7% 0.0% 320

Switzerland 20.2% 78.6% 1.0% 0.2% 219

RoW 33.3% 0.4% 10.0% 56.3% 841

Total life gross 62.7% 18.2% 7.7% 11.5% 13,993
direct premiums


IV. BACK UP

P&C Premiums by Country & Business Line 24

P&C 1Q10
(Euro m) Accident/
(1)
Motor Health Personal Commercial Total
Italy 47.8% 17.6% 11.8% 22.8% 1,686

France 28.1% 11.4% 34.6% 26.0% 1,163

Germany 48.8% 9.7% 32.2% 9.4% 1,290

CEE 52.1% 9.5% 13.9% 24.5% 608

RoE 37.2% 17.3% 17.8% 27.6% 1,447
Of which:

Spain 24.0% 17.3% 22.0% 36.7% 438

Austria 38.4% 8.9% 16.6% 36.0% 460

Switzerland 55.5% 27.0% 17.1% 0.3% 327

RoW 61.4% 7.6% 4.5% 26.5% 315

Total P&C gross 43.2% 13.6% 21.1% 22.1% 6,509
direct premiums
(1) Including fleets


IV. BACK UP

Life New Business APE 25

(Euro m) New Business APE
1Q 2009 1Q 2010 % historical % like for like
Italy 301 466 +54.7 +34.6

France 329 413 +25.7 +25.7

Germany 278 266 -4.3 -5.2
CEE 37 40 +10.1 -0.5
RoE 135 221 +63.5 +56.6
of which Spain 36 29 -19.2 -19.2

of which Austria 19 28 +47.9 +18.7

of which Switzerland 20 19 -4.6 -10.0

RoW 116 125 +7.6 -0.4
Total 1,196 1,532 +28.1 +21.3


IV. BACK UP

Ratios 26

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

96.3 98.0
Expense
27.5 27.8
ratio

Loss
11.1 9.3 68.8 70.2
ratio

1Q09 1Q10 1Q09 1Q10

Total – Expense ratio (%)

16.0 14.2

1Q09 1Q10


IV. BACK UP

Ratios by country 27

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

1Q10 75.8 71.9 70.8 57.2 73.1 66.0 71.2 70.2

1Q09 74.8 73.4 67.4 56.0 67.0 67.1 70.1 68.8

Expense ratio

1Q10 21.8 27.1 28.7 30.0 25.9 31.2 22.6 27.8
1Q09 21.9 27.1 29.1 29.8 24.1 31.3 25.0 27.5

Combined ratio

1Q10 97.6 99.0 99.5(1) 87.1 99.0 97.3 93.8 98.0

1Q09 96.7 100.6 96.5 85.9 91.1 98.4 95.1 96.3

Life expense ratios by country (%)

1Q10 8.4 5.6 14.3 18.7 5.1 12.3 18.6 9.3

1Q09 10.8(2) 7.1 15.3 20.0 4.3 13.7 20.9 11.1
(1) Excluding Nat Cat, the ratio would be 95.7%
(2) Excluding Intesa Vita. On historical terms, the ratio would be 9.3%


IV. BACK UP

Combined ratio reconciliation 28

(Euro m)

1Q 2009 1Q 2010
A Net earned premiums (net of consolidation adjustments) 5,012.7 5,052.5

B Consolidated net claims 3,449.1 3,544.6

Consolidated acquisition costs 1,076.3 1,104.6

Consolidated administration costs 316.2 315.9
Non insurance activity related administration costs(1) 15.5 14.8
Insurance activity related consolidated administration costs 300.7 301.1

C Total acquisition and administration costs 1,377.0 1,405.7

B/A Loss ratio 68.8% 70.2%
C/A Expense ratio 27.5% 27.8%
(B+C)/A Combined ratio 96.3% 98.0%
(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 29

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

1Q09 1Q10 % 1Q09 1Q10 %

Italy 273 350 +40.7(1) Italy 110 89 -18.7

France 104 130 +25.2 France 52 68 +31.7

Germany 50 129 +160.4 Germany 66 21 -68.1

CEE 93 59 -37.1 CEE 107 94 -12.1

RoE 32 111 +245.6 RoE 99 44 -55.6

Of which: Of which:

Spain 25 27 +9.7 Spain 53 24 -55.2

Austria 5 14 +202.1 Austria 14 20 +46.6

Switzerland 13 28 +118.0 Switzerland 11 17 +58.5

RoW 12 88 +645.3 RoW 15 19 +22.0

Total 563 866 +60.8(1) Total 449 335 -25.4

(1) On like for like basis. On historical terms, the variations would be 28.2% for the
Italian life operating result and +53.8% for the consolidated life operating result


IV. BACK UP

Reclassified P&L account 30

(Euro m) Total
1Q 2009 1Q 2010
Operating result(1) 1,009 1,201
Net earned premiums 16,129 17,800
Net insurance benefits and claims (13,217) (18,286)
Acquisition and administration costs (2,831) (2,914)
Net fee and commission income and net income from financial service activities 150 214
Operating income from investments 951 4,560
Operating holding expenses (63) (67)
Net other operating expenses (110) (106)
Non-operating result(1) (788) (296)
Non-operating income from investments (522) 2
Non-operating holding expenses (172) (193)
Interest expenses on financial debt (165) (185)
Other non-operating holding expenses (7) (8)
Net other non-operating expenses (94) (105)
Earnings before taxes 221 905
Income taxes (62) (295)
Result from discontinued operations (Intesa Vita) - 15
Consolidated result of the period 159 626
Result of the period attributable to minority interests (55) (99)
Group result of the period 104 527
(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 2009 31

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

Operating result(1) 563 449 92 (63) (33) 1,009
Net earned premiums 11,116 5,013 0 - - 16,129
Net insurance benefits and claims (9,768) (3449) 0 - - (13,217)
Acquisition and administration costs (1,281) (1,382) (168) - - (2,831)
Net fee and commission income and net
income from financial service activities 8 0 166 - (24) 150
Operating income from investments 533 306 122 - (10) 951
Operating holding expenses - - - (63) - (63)
Net other operating expenses (45) (38) (28) - 1 (110)
Non-operating result(1) (112) (484) (19) (172) - (788)
Non-operating income from investments (82) (440) 0 - - (522)
Non-operating holding expenses - - - (172) - (172)
Net other non-operating expenses (30) (45) (19) - - (94)
Earnings before taxes 451 (36) 74 (235) (33) 221
(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 2010 32

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

Operating result(1) 866 335 98 (67) (31) 1,201
Net earned premiums 12,748 5,053 0 - - 17,800
Net insurance benefits and claims (14,741) (3,545) 0 - - (18,286)
Acquisition and administration costs (1,297) (1,410) (207) - - (2,914)
Net fee and commission income and net
income from financial service activities 29 0 209 - (25) 214
Operating income from investments 4,160 290 116 - (6) 4,560
Operating holding expenses - - - (67) - (67)
Net other operating expenses (34) (53) (20) - - (106)
Non-operating result(1) (17) (73) (14) (193) - (296)
Non-operating income from investments 18 (16) 0 - - 2
Non-operating holding expenses - - - (193) - (193)
Net other non-operating expenses (34) (57) (14) - - (105)
Earnings before taxes 849 262 84 (260) (30) 905
(2) Not reclassified according to the new layout based on operating margins and presented in the Consolidated Quarterly Report


IV. BACK UP

Total comprehensive income(1)(2) 33

(Euro m)

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10

+3,000 m 1,916 459

1,308
794

(178)
181
(1,031)
(505)
(1,010)
-3,000 m

1Q08 1H08 9M08 FY08 1Q09 1H09 9M09 FY09 1Q10
(1,031) (1,536) (1,354) (2,365) (178) 616 2,532 2,990 1,308

(1) 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
(2) According to new definition applied in annual report 2009, some residual change in equity components (FY09: Euro 11 m, FY08: Euro 28 m) were reclassified outside the
other comprehensive income as transactions with equity holders. Comparative information was restated accordingly


Investor Relations Team 34

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

Stefano Burrino (Tel.: +39-040-671202)
Email: stefano_burrino@generali.com

Emanuele Marciante (Tel.: +39-040-671347) Assicurazioni Generali
Email: emanuele_marciante@generali.com P.za Duca degli Abruzzi 2
34132 Trieste, Italy
Veronica Cherini (Tel.: +39-040-671488)
Email: veronica_cherini@generali.com
Fax: +39 040 671338
e-mail: generali_ir@generali.com
Rodolfo Svara (Tel.: +39-040-671823)
Email: rodolfo_svara@generali.com

www.generali.com
Nicoletta Mendes (Tel.: +39-040-671402)
IR Events
Email: nicoletta_mendes@generali.com


Disclaimer 35

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 2010 results

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