Assicurazioni Generali S.p.a. · MIL:G
Assicurazioni Generali — Q1 2011 Earnings Presentation
45 slides from Assicurazioni Generali's earnings presentation, May 13, 2011
Slide 1: Generali Group 1Q 2011 Results
Generali Group 1Q 2011 Results May 13, 2011
Slide 2: Agenda
Agenda 2 I. Overview Page 3 II. Group financials Page 5 III. Final remarks Page 20 IV. Backup Page 22 Assicurazioni Generali Group – 1Q 2011 results
Slide 3: I. Overview
Agenda 3 I. Overview 1Q 2011 results at a glance Assicurazioni Generali Group – 1Q 2011 results
Slide 4: 1Q 2011 results at a glance
I. OVERVIEW 1Q 2011 results at a glance 4 Net result (Euro m) Operating result (Euro m) +16.8% +6.6% 1,256 1,178 616 527 1Q10 1Q11 1Q10 1Q11 Shareholders’ equity (Euro m) Combined ratio (%) +1.3% -1.9%pts. 17,725 98.0 96.1 17,490 FY10 1Q11 1Q10 1Q11 Assicurazioni Generali Group – 1Q 2011 results
Slide 5: II. Group financials
Agenda 5 II. Group financials Profit & loss review Shareholders’ equity Life & P&C profitability Assicurazioni Generali Group – 1Q 2011 results
Slide 6: Revenue development by segment
II. GROUP FINANCIALS Revenue development by segment 6 1Q 1Q (Euro m) 2010 2011 ∆ historical ∆ like for like Gross written premiums 20,864 19,131 -8.3% -9.0% Life(1) 14,214 12,340 -13.2% -13.8% P&C 6,650 6,792 +2.1% +1.2% Life annual premium equivalent(2) 1,532 1,311 -14.4% -14.5% (1) Including inves
Slide 7: Operating result by segment
II. GROUP FINANCIALS Operating result by segment 7 Operating result by segment (Euro m) Life 881 operating result 866 +1.7% P&C 393 operating result 312 +26.0% Financial services 115 operating result 98 +16.7% Operating holding -74 -67 -10.4% expenses Consolidation -59 adjustments -91.3% -31 Total 1
Slide 8: Focus on operating result
II. GROUP FINANCIALS Focus on operating result 8 Operating result by country(1) Operating result breakdown(1) (Euro m) (Euro m) 1Q10 1Q11 ∆ Italy 472 495 +4.9% France 195 268 +37.3% Germany 161 169 +5.1% 35 CEE 152 142 -6.5% 106 RoE 178 248 +39.3% 2 70 49 RoW 118 67 -43.8% 354 11 8 71 55 Operating r
Slide 9: From operating result to net result
II. GROUP FINANCIALS From operating result to net result 9 (Euro m) 1Q10 1Q11 Total operating result 1,178 1,256 +6.6% Non operating investment income 24 (7) Income and exp. from fin. assets at FV thr. P&L 28 0 Income and exp. from other financial instruments (4) (7) (1) Non-operating holding expens
Slide 10: Investment portfolio
II. GROUP FINANCIALS Investment portfolio 10 Own investments(1) at 31.03.11 (% on total) Maintained stable asset +0.8% allocation with active portfolio management Euro 321.7 bn Euro 324.2 bn 7.3% 7.3% 4.9% 4.9% Other 8.5% 8.4% Preference for government 9.0% 9.0% Real estate bonds, representing 55.8%
Slide 11: IFRS Shareholders' equity roll forward
II. GROUP FINANCIALS IFRS Shareholders’ equity roll forward 11 (Euro m) +1.3% 616 14 17,725 17,490 (169) (35) (190) Shareholders’ ∆ in AFS 1Q 2011 ∆ Currency ∆ Cash Flow Other Shareholders’ Equity FY10 Reserve Net Result Translation Hedge Reserve Equity 1Q11 Reserve Change in AFS reserve (Euro m) 89
Slide 12: Solvency I update
II. GROUP FINANCIALS Solvency I update 12 (Euro bn) Required margin Available margin Solvency I ratio 140%(1) 140%(1) 23.6 23.9 16.9 17.0 FY10 1Q11 (1) Including off balance sheet unrealized gains on real estate, 8%pts of which subject to authorities’ authorization Assicurazioni Generali Group – 1Q
Slide 13: Life profitability – operating result
II. GROUP FINANCIALS Life profitability – operating result 13 Resilient life operating result Life Operating Result by driver(1) 1Q10 1Q11 1Q10 866 (Euro m) Technical Margin 1,564 1,600 +2.3% Tech.M 36 Investment Result 643 644 +0.3% Inv.R 2 Expenses (1,340) (1,363) -1.7% Exp. (23) Operating Result
Slide 14: Life business development
II. GROUP FINANCIALS Life business development 14 Life gross written premiums (Euro m) Life net technical reserves(2) (Euro m) -13.8%(1) +0.7% 313.3 2.1 0.0 315.5 14,214 12,340 ∆ 1Q10 1Q11 FY10 Traditional Unit Linked 1Q11 Life net inflows by country(3) (Euro m) Country 1Q10 1Q11 ∆(1) 1Q 2011 265.0
Slide 15: Life New Business Annual Premium Equivalent
II. GROUP FINANCIALS Life New Business Annual Premium Equivalent 15 Solid APE (over 1.3 bn), with stable annual premiums and year on year downturn entirely explained by the strong single premiums production registered in the 1st quarter 2010. (Euro m) APE 1Q 1Q Historical Like for like 2010 2011 Ita
Slide 16: P&C profitability - operating result
II. GROUP FINANCIALS P&C profitability - operating result 16 Restoring P&C technical profitability P&C Operating Result by driver(1) (Euro m) 1Q10 1Q11 1Q10 312 Technical Result 92 185 +100.3% Tech.R 93 Investment Result 267 263 -1.6% Inv.R (4) Other Other (48) (55) -14.8% (7) Operating Result 312 3
Slide 17: P&C Gross Written Premiums
II. GROUP FINANCIALS P&C Gross Written Premiums 17 In Motor, confirmation of premium recovery in Italy and France, first signs of recovery also in Germany Retail Non Motor growing across the geographies Commercial business under competitive pressure, especially in Italy and Spain Historical Like for
Slide 18: P&C profitability (1/2)
II. GROUP FINANCIALS P&C profitability (1/2) 18 Combined ratio (%) Combined ratio by country (%) -1.9%pts. 1Q10 1Q11 98.0 0.0 96.1 Italy 97.6% 96.2% -1.4%pts. (1.9) France 99.0% 98.2% -0.8%pts. 27.8 27.8 Germany 99.5% 95.3% -4.2%pts. CEE 87.1% 87.6% +0.5%pts 70.2 68.3 RoE 101.2% 96.7% -4.5%pts. RoW
Slide 19: P&C profitability – Net combined ratio (2/2)
II. GROUP FINANCIALS P&C profitability – Net combined ratio (2/2) 19 Loss ratio (%) Reserving ratio (%) -1.9%pts -8%pts 70.2 -0.9 -1.9 +1.0 68.3 509% 501% Current NAT Prior 1Q 2010 year(1) CAT years 1Q 2011 1Q 2011 70.6 0.4 -2.7 68.3 1Q 2010 1Q 2011 1Q 2010 71.5 2.3 -3.6 70.2 (1) Excluding natural c
Slide 20: III. Final Remarks
Agenda 20 III. Final Remarks Assicurazioni Generali Group – 1Q 2011 results
Slide 21: Final remarks
III. FINAL REMARKS Final remarks 21 Solid underlying development of revenues Excellent level of life operating result confirmed Improvement of non life technical profitability on track Investment policy focused on sustaining current returns Assicurazioni Generali Group – 1Q 2011 results
Slide 22: IV. Backup
22 IV. Backup P&L and Balance Sheet Definitions Assicurazioni Generali Group – 1Q 2011 results
Slide 23: IV. Backup
23 IV. Backup P&L and Balance Sheet Definitions Assicurazioni Generali Group – 1Q 2011 results
Slide 24: 1Q11 total gross written premiums
IV. BACK UP 1Q11 total gross written premiums 24 (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 Italy 4,912 -8.9 25.7 3,211 -12.7 16.8 1,701 -0.9 8.9 France 4,190 -20.3 21.9 2,927 -27.4
Slide 25: Life Premiums by Country & Business Line
IV. BACK UP Life Premiums by Country & Business Line 25 Life 1Q11 (Euro m) Savings and Unit/index protection linked Health Group Total Italy 85.4% 1.8% 0.0% 12.8% 3,170 France 66.8% 17.5% 8.3% 7.4% 2,874 Germany 48.8% 23.1% 19.2% 8.9% 3,338 CEE 64.0% 23.1% 11.2% 1.7% 416 RoE 37.5% 38.6% 4.7% 19.2% 1
Slide 26: P&C Premiums by Country & Business Line
IV. BACK UP P&C Premiums by Country & Business Line 26 P&C 1Q11 (Euro m) Accident/ (1) Motor Health Personal Commercial Total Italy 48.9% 17.9% 12.1% 21.2% 1,678 France 28.4% 11.2% 34.3% 26.1% 1,182 Germany 49.4% 9.7% 31.8% 9.1% 1,323 CEE 47.2% 10.4% 14.9% 27.5% 607 RoE 38.3% 18.4% 19.3% 24.0% 1,470
Slide 27: Life & health new business: APE
IV. BACK UP Life & health new business: APE 27 (Euro m) APE Annual Premiums Single Premiums Like for like Like for like Like for like 1Q2010 1Q2011 % 1Q2010 1Q2011 % 1Q2010 1Q2011 % Italy 466 428 -8.2% 254 268 +5.7% 2,127 1,599 -24.8% Germany 266 256 -3.8% 226 197 -12.9% 403 592 +46.9% France 413 29
Slide 28: Life net inflows by country
IV. BACK UP Life net inflows by country 28 Country 1Q10 1Q11 Like for like ∆ Italy 883 157 -82.3% France 2,298 554 -75.9% Germany 1,203 1,095 -8.9% CEE 129 116 -13.1% RoE 1,062 489 -54.0% Of which: Spain (103) (31) +70.3% Austria 58 127 +117.5% Switzerland 119 58 -57.4% Ireland 707 139 -80.3% RoW 53
Slide 29: Ratios
IV. BACK UP Ratios 29 Life – Expense ratio (%) P&C – Combined ratio (%) 98.0% 96.1% Expense 27.8 ratio 27.8 Loss 9.3 10.9 70.2 68.3 ratio 1Q10 1Q11 1Q10 1Q11 Total – Expense ratio (%) 14.2 16.0 1Q10 1Q11 Assicurazioni Generali Group – 1Q 2011 results
Slide 30: Ratios by country
IV. BACK UP Ratios by country 30 P&C ratios by ITA FRA GER CEE SPA AUT SWI Consolidated country (%) Loss ratio 1Q11 75.2 71.2 67.0 55.0 65.9 65.6 71.5 68.3 1Q10 75.8 71.9 70.8 57.2 73.1 66.0 71.2 70.2 Expense ratio 1Q11 21.0 27.0 28.3 32.6 26.5 30.9 25.9 27.8 1Q10 21.8 27.1 28.7 30.0 25.9 31.2 22.6
Slide 31: Combined ratio reconciliation
IV. BACK UP Combined ratio reconciliation 31 (Euro m) 1Q10 1Q11 A Net earned premiums (net of consolidation adjustments) 5,052 .5 5,165.0 B Consolidated net claims 3,544.6 3,527.8 Consolidated acquisition costs 1,104.6 1,128.2 Consolidated administration costs 315.9 324.3 Non insurance activity rela
Slide 32: Operating result by country
IV. BACK UP Operating result by country 32 Life operating result by market (Euro m) P&C operating result by market (Euro m) 1Q10 1Q11 1Q10 1Q11 Italy 350 354 +1.2% Italy 90 106 +18.7% France 130 196 +51.5% France 64 70 +9.9% Germany 129 103 -20.0% Germany 20 55 +173.6% CEE 59 58 -0.7% CEE 88 76 -13.
Slide 33: Reclassified P&L account
IV. BACK UP Reclassified P&L account 33 (Euro m) Total 1Q10 1Q11 Operating result 1,178 1,256 Net earned premiums 17,800 16,463 Net insurance benefits and claims (18,286) (15,311) Acquisition and administration costs (2,914) (2,969) Net fee and commission income and net income from financial service
Slide 34: Reclassified P&L account by segment – 1Q 2010
IV. BACK UP Reclassified P&L account by segment – 1Q 2010 34 Unallocated holding Consolidation (Euro m) Life Non life Financial(1) expenses adjustments Total Operating result 866 312 98 (67) (31) 1,178 Net earned premiums 12,748 5,053 0 - - 17,800 Net insurance benefits and claims (14,741) (3,545) 0
Slide 35: Reclassified P&L account by segment – 1Q 2011
IV. BACK UP Reclassified P&L account by segment – 1Q 2011 35 Unallocated holding Consolidation (Euro m) Life Non life Financial(1) expenses adjustments Total Operating result 881 393 115 (74) (59) 1,256 Net earned premiums 11,298 5,165 0 - - 16,463 Net insurance benefits and claims (11,769) (3,528)
Slide 36: 1Q11 Assets Under Management
IV. BACK UP 1Q11 Assets Under Management 36 Total Euro 474.9 bn Esposizioni nette a governativi di Grecia, Spagna, Third parties AUM Portogallo e Irlanda 100.5 50.2 Unit Linked Available for sale Loans Fixed income Other 59.2% 23.8% instruments 3.7% Real Estate 79.3% 4.2% Real Estate Group 4.9% 324.
Slide 37: Investment yields
IV. BACK UP Investment yields(1) 37 Bonds and Loans Equities Investment Other Total properties % return 1Q10 1Q11 1Q10 1Q11 1Q10 1Q11 1Q10 1Q11 1Q10 1Q11 LIFE Current 1.1% 1.1% 0.1% 0.2% 1.8% 2.0% 0.5% 0.6% 1.0% 1.0% Total P&L 1.4% 1.1% 1.8% 1.5% 1.4% 1.6% 0.8% 0.3% 1.3% 1.2% Comprehensive 2.2% 0.3%
Slide 38: Total comprehensive income
IV. BACK UP Total comprehensive income(1) 38 (Euro m) 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 +3,000 m 1,916 459 1,033 794 1,308 (644) (245) 270 (178) 181 (1,031) (505) (1,010) -3,000 m 1Q08 1H08 9M08 FY08 1Q09 1H09 9M09 FY09 1Q10 1H10 9M10 FY10 1Q11 (1,031) (1,536) (1,354)
Slide 39: IV. Backup
39 IV. Backup P&L and Balance Sheet Definitions Assicurazioni Generali Group – 1Q 2011 results
Slide 40: Definitions: P&L and balance sheet (1/2)
IV. BACK UP Definitions: P&L and balance sheet (1/2) 40 Annual Premium is defined as new business annualised regular premiums plus 10% of single premiums. Equivalent (APE) Life Net Inflows Premiums inflows in the period less benefits paid to the policyholders. It does not include revaluation of math
Slide 41: Definitions: P&L and balance sheet (2/2)
IV. BACK UP Definitions: P&L and balance sheet (2/2) 41 Own Investments does not include unit/index linked investments and consist of the following asset class (*): i) Fixed income instruments include quoted and unquoted bonds, loans including deposits under reinsurance business accepted, term depos
Slide 42: What's next
What’s next 42 August 5, 2011 - 1H 2011 Results November 11, 2011 - 9M 2011 Results Assicurazioni Generali Group – 1Q 2011 results
Slide 43: Investor Relations Team
Investor Relations Team 43 Paola Buratti (Tel.: +39-040-671157) Head of Investor Relations Email: [email protected] Stefano Burrino (Tel.: +39-040-671202) Email: [email protected] Emanuele Marciante (Tel.: +39-040-671347) Assicurazioni Generali Email: emanuele_marciante@generali.
Slide 44: Disclaimer
Disclaimer 44 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 r
Slide 45: Generali Group 1Q 2011 Results
Generali Group 1Q 2011 Results May 13, 2011
Assicurazioni Generali — Q1 2011 Earnings Presentation on 6ix