Assicurazioni Generali S.p.A. · MIL:G
Assicurazioni Generali — H1 2023 Earnings Presentation
50 slides from Assicurazioni Generali's earnings presentation, August 2023
Slide 1: Generali Group First Half 2023 Results
GENERALI GROUP FIRST HALF 2023 RESULTS The like for like change of written premiums and Life net cash inflows is on equivalent terms (on equivalent exchange rates and consolidation area). Starting from 1Q23 the bancassurance JVs of Cattolica (Vera and BCC companies) are considered a ‘disposal group
Slide 2: Agenda
2 AGENDA 01 Strategy overview 02 Group financials 03 Backup 04
Slide 3: Strategy Overview
STRATEGY OVERVIEW PHILIPPE DONNET GROUP CHIEF EXECUTIVE OFFICER
Slide 4: Key Messages
4 KEY MESSAGES Increase in Gross Written Premiums driven by significant P&C growth Excellent growth in Operating Result and Adjusted earnings Extremely solid capital position, further supported by capital generation Key strategic acquisitions both in insurance and asset management Fully on track to
Slide 5: Strong growth in operating result and earnings, extremely solid capital position
5 STRONG GROWTH IN OPERATING RESULT AND EARNINGS, WITH EXTREMELY SOLID CAPITAL POSITION Operating Result (€ m) Adjusted Net Result¹ (€ m) Solvency Ratio (%) +28.0% +60.9% +7 p.p. 3,721 2,330 228 221 2,907 1,448 1H22 1H23 1H22 1H23 FY22 1H23 P&C Premiums² (€ m) Life New Business Margin² (%) P&C Combi
Slide 6: Key strategic acquisitions in insurance and asset management
6 KEY STRATEGIC ACQUISITIONS BOTH IN INSURANCE AND THE ASSET MANAGEMENT STRATEGIC RATIONALE ▪ Strengthen European leadership by driving sustainable growth in core Spanish and Portuguese markets and gaining access to Ireland LIBERTY ▪ Further scale P&C business through profitable and well-capitalised
Slide 7: Save the Date
7 SAVE THE DATE 30 JANUARY 2024 Investor Day Milan, Italy Auditorium Generali Tower and webcast
Slide 8: Group Financials
GROUP FINANCIALS CRISTIANO BOREAN GROUP CHIEF FINANCIAL OFFICER
Slide 9: 2023 First Half Results
9 2023 FIRST HALF RESULTS Volumes 1H22 1H23 D LFL¹ Gross Written Premiums (€ m) 40,458 42,237 +3.6% Life (€ m) 25,971 25,888 -0.3% P&C (€ m) 14,487 16,349 +10.6% Life Net Inflows (€ m) 5,856 (877) n.m. Profitability 1H22 1H23 D Operating Result (€ m) 2,907 3,721 +28.0% Adjusted Net Result (€ m) 1,44
Slide 10: Double-digit growth in operating result
10 DOUBLE-DIGIT GROWTH IN OPERATING RESULT € million +28.0% 855 6 25 (7) (66) 3,721 Impacted by a negative one-off experienced by the Global 2,907 Business Activities. Excluding this item, the Life Operating Result would have been broadly stable versus last year 1H22 Life P&C A&WM Holding & Other Co
Slide 11: Solid Life performance
11 SOLID LIFE PERFORMANCE VOLUMES (€ m) 1H22 1H23 D LFL¹ Gross Written Premiums 25,971 25,888 -0.3% Net Inflows 5,856 (877) n.m. PVNBP 24,919 21,424 -14.0% PROFITABILITY 1H22 1H23 D Life Operating Result (€ m) 1,879 1,813 -3.5% New Business Value (€ m) 1,370 1,245 -9.2%¹ New Business Margin (on PVNB
Slide 12: Life operating result impacted by a one-off item
12 LIFE OPERATING RESULT IMPACTED BY A ONE-OFF ITEM € million 1H22 1H23 D Key remarks Operating Insurance Service Result 1,461 1,391 -4.9% CSM Release 1,493 1,492 -0.1% • Decrease of the Operating Insurance Service Result driven Risk Adjustment release 76 75 -2.1% mainly by negative one-off in 1H23
Slide 13: Normalised CSM growth of 3% at 1H23
13 NORMALISED CSM GROWTH OF 3%¹ AT 1H23 € million² Key remarks 1,354 ▪ New Business CSM mainly driven by Italy, France and 1,541 852 Germany (725) (1,492) (468) ▪ Expected Return includes the effect of unwinding of discount and the systematic variance due to expected realization of real-world assump
Slide 14: Continued inflows in preferred lines of business
14 CONTINUED INFLOWS IN PREFERRED LINES OF BUSINESS € million Net inflows mix Net inflows mix by by Country Line of Business in 1H23 1H22 1H23 D LFL¹ Unit Linked Protection Savings Italy 1,121 (2,589) n.m. 2,786 2,565 France 1,128 (916) n.m. DACH 1,842 765 -59.0% International 1,718 1,821 +6.2% (6,2
Slide 15: Further increase in new business margin
15 FURTHER INCREASE IN NEW BUSINESS MARGIN New Business Margin PVNBP (€ m) NBV (€ m) * (on PVNBP) = 24,919 21,424 5.50% 5.81% 1,370 1,245 -14.0% +31 bps -9.2% 326 9,274 -5.1% 3.51% 4.52% +21.9% 396 Savings 8,769 524 Protection 6,215 -4.4% -13.0% 8.43% 9.27% 501 5,402 Unit Linked 9,430 -23.2% 521 7,2
Slide 16: PVNBP decline magnified by rising rates
16 PVNBP DECLINE MAGNIFIED BY RISING RATES 16 New Business Margin PVNBP (€ m) NBV (€ m) (on PVNBP) -14.0% -9.2% +39 bps +31 bps -10.0% -14.9% +139 bps -129 bps 1,245 -22.5% -43 bps 21,424 -15.1% 7.17% +4.2% 5.81% 5.54% 534 5.43% 7,446 -22.6% 4.46% +15.7% 5,224 5,678 -6.0% 308 233 3,076 171 Italy Fra
Slide 17: Life current return increasing
17 LIFE CURRENT RETURN INCREASING Life segment General Account (%) Current return¹ €m % 1H22 3,810 1.4% €297bn €293bn Fixed income 1H23 3,685 1.6% 2.0% 2.6% 1.6% 2.7% 8.6% 8.4% 1H22 474 2.1% Equity 7.5% 7.7% 1H23 1.3% 287 12.3% 12.6% Other 1H22 376 1.5% Cash & cash equivalent Real Estate² Real estat
Slide 18: Strong increase in P&C operating result
18 STRONG INCREASE IN P&C OPERATING RESULT VOLUMES (€ m) 1H22 1H23 D LFL¹ Gross Written Premiums 14,487 16,349 +10.6% o/w Direct Premiums Motor 5,237 5,706 +11.0% o/w Direct Premiums Non-Motor 8,672 10,041 +10.7% PROFITABILITY 1H22 1H23 D Combined Ratio discounted 97.0% 91.6% -5.4 p.p. Combined Rati
Slide 19: Continued strong growth in P&C volumes
19 CONTINUED STRONG GROWTH IN P&C VOLUMES 1H23 P&C Premiums (€ m)¹ 1H23 Motor and Non-Motor Premiums (€ m)² +10.7% +10.6% +11.0% Motor Non-Motor +18.4% +5.3% +6.2% +4.1% +11.7% +6.3% 16,349 10,041 +29.4% +5.0% +0.7% 5,706 4,275 +6.0% 4,646 +4.8% 3,951 2,596 2,590 2,382 +42.0% 1,903 +34.6% 1,564 1,58
Slide 20: Significant improvement in the combined ratio
20 SIGNIFICANT IMPROVEMENT IN THE COMBINED RATIO Expense Ratio (%) +0.9 p.p. Combined Ratio (%) 28.6 0.9 0.1 29.5 -5.4 p.p. 1.1 1.1 (0.1) 97.0 7.9 7.8 0.9 91.6 28.6 (6.3) 19.7 Acquisition Other operating 20.6 Admin and other 29.5 expenses expenses expenses CoR undiscounted 1H22 Δ Acquisition Δ Admin
Slide 21: Resilient non-motor underwriting performance
21 RESILIENT NON-MOTOR UNDERWRITING PERFORMANCE Group CoR 1H22 1H23 D Motor 105.2% 94.6% -10.6 p.p. 1H23 Combined Ratio by Country Motor undiscounted 107.9% 97.9% -10.0 p.p. Non-Motor 92.4% 90.0% -2.3 p.p. Non-Motor undiscounted 93.5% 93.7% +0.3 p.p. Discounted Undiscounted -3.5 p.p. -0.9 p.p. -5.4
Slide 22: Tariff strengthening measures in P&C
22 TARIFF STRENGTHENING MEASURES IN P&C: IMPACT BECOMING MORE EVIDENT 1H23 P&C Gross Direct Premiums (%) Price effect: focus on main European Countries² Motor Change in average annual Non-Motor 1H23 vs 1H22 FY22 vs FY21⁶ premium Accident, Health and Disability Corporate & Commercial¹ Retail and SME³
Slide 23: Strong P&C operating result
23 STRONG P&C OPERATING RESULT € million +85.7% Key remarks 304 164 • Undiscounted Operating Insurance 542 Service Result increased in almost all (154) the countries in which the Group operates 2,696 2,650 1,853 • Higher Discounting mainly driven by increasing interest rates 998 • Rising Insurance F
Slide 24: P&C current return increasing
24 P&C CURRENT RETURN INCREASING P&C segment General Account (%) Current return¹ €m % 1H22 348 1.1% €45bn €47bn Fixed income 1H23 497 1.5% 6.5% 7.5% 1H22 128 3.9% 6.9% 7.2% Equity 1H23 125 3.8% 7.3% 6.7% 6.5% 7.2% 1H22 71 2.2% Other Real Estate² 14.1% 11.6% Cash & cash equivalent 1H23 74 2.3% Real e
Slide 25: A&WM supported by Banca Generali
25 A&WM SUPPORTED BY BANCA GENERALI Asset & Wealth Management (€ m) 1H22 1H23 Δ Operating Result 491 498 +1.3% o/w Asset Management 326 265 -18.9% o/w Wealth Management (Banca Generali Group)¹ 165 233 +41.2% Asset Management (€ m) 1H22 1H23 Δ Operating Revenues 545 517 -5.1% o/w management and other
Slide 26: Strong contribution from other businesses
26 STRONG CONTRIBUTION FROM OTHER BUSINESSES Holding & Other Businesses (€ m) 1H22 1H23 D Other Businesses¹ 110 154 +40.2% Operating Holding Expenses (259) (278) +7.5% Total (149) (125) -16.4% 1. It includes companies with an exclusive holding role, service companies and all the other companies that
Slide 27: From operating to net result
27 FROM OPERATING TO NET RESULT Components: Components: Restructuring costs: (€63m) € million Investment result from FVTPL and foreign currency: (€48m) Amortization of intangibles from business Net realized gains and losses: €371m combinations and bancassurance operations: (€19m) Net ECL and impairm
Slide 28: Shareholders' equity rollforward
28 SHAREHOLDERS’ EQUITY ROLLFORWARD € million +0.2% 2,243 (141) (269) (1,790) 26,650 26,693 Shareholders' Δ in OCI Dividend 1H23 Result Other Shareholders' Equity FY22 Equity 1H23 3,536 Changes in Other Comprehensive Income (2,160) (2,301) 29 (3,629) (42) (35) OCI Related to Related to Defined Forei
Slide 29: Extremely strong solvency supported by capital generation
29 EXTREMELY STRONG SOLVENCY SUPPORTED BY CAPITAL GENERATION € billion Excess Solvency II ratio Own Own (%) Funds SCR Funds1 FY22 46.4 21.1 25.4 221% Regulatory changes 0.2 0.0 0.1 +1 p.p. Normalized capital generation 2.7 (0.0) 2.7 +13 p.p. Economic variances 1.3 0.3 1.0 +3 p.p. Non-economic varian
Slide 30: Final remarks
30 FINAL REMARKS Rising Gross Written Premiums, driven by robust P&C volumes Excellent growth in Operating and Adjusted Net Result Strong P&C Operating Result, with continued improvement in the Combined Ratio Solid Life Operating Result with excellent New Business Margin Extremely robust capital pos
Slide 31: Backup
— BACKUP aon. GENERALI
Slide 32: 2Q23 Results (1/2)
32 2Q23 RESULTS (1/2) € million 2Q22 2Q23 D Gross Written Premiums 18,925 20,074 +6.2%¹ Life 12,281 12,650 +3.5%¹ P&C 6,644 7,424 +11.0%¹ o/w Direct Motor 2,314 2,504 +13.3%¹ o/w Direct Non-Motor 4,027 4,555 +9.1%¹ Life Net Inflows 2,177 (687) n.m.¹ Total Operating Result 1,417 1,901 +34.2% Life Ope
Slide 33: 2Q23 Results (2/2)
33 2Q23 RESULTS (2/2) € million 2Q22 2Q23 D Asset & Wealth Management Operating Result 233 265 +14.0% o/w Asset Management 154 142 -7.7% o/w Wealth Management (Banca Generali Group) 78 123 +56.5% Holding & Other Businesses Operating Result (39) (8) -79.5% Consolidation Adjustments (253) (251) -0.9%
Slide 34: Updated FY22 balance sheet figures
34 UPDATED FY22 BALANCE SHEET FIGURES € million FY22 IFRS 17/9 FY22 IFRS previously Change 17/9 updated reported Shareholders’ Equity attributable to the Group 27,064 (414) 26,650 CSM¹ 30,870 155 31,025 o/w Life CSM 30,052 155 30,207 Present Value of Future Cash Flow 358,020 380 358,400 ▪ Some figur
Slide 35: Reconciliation between IFRS equity and Solvency II own funds
35 RECONCILIATION BETWEEN IFRS EQUITY AND SOLVENCY II OWN FUNDS € billion 5.3 7.8 32.1 (1.8) (3.5) (0.9) (8.7) 2.3 45.8 49.2 26.7 29.0 (10.1) Shareholders' Minority Shareholders' Intangibles CSM Scope Valuation Net Deferred Excess of Subordinated Deductions & Foreseeable Group Own Equity 1H23 intere
Slide 36: P&C discounting
36 P&C DISCOUNTING ILLUSTRATIVE FIGURES Projections based on 1H23 experience and assuming stable future business/market conditions ▪ The Current Year discounting at each reporting period is calculated as CY¹ Discount FY22 1Q23 1H23 the impact of discounting the future expected undiscounted claims wi
Slide 37: P&C unwinding
37 P&C UNWINDING ILLUSTRATIVE FIGURES Projections based on 1H23 experience and assuming stable future business/market conditions LIC Locked² Locked-in forward rates AY¹ (FY22 weight) ▪ Throughout the years, the technical unwinding reflects the different FY22 FY23 FY24 weight and development of the l
Slide 38: Assets under management
38 ASSETS UNDER MANAGEMENT Breakdown by region and asset class (%) 9 Total Portfolio: €631 bn (%) 10 Italy 35 France By Region DACH International 25 Other 21 General account 28 56 Unit Linked 32 7 8 Third party Equity investments 16 Fixed income Real estate By Asset Class Cash & Cash Equivalent Othe
Slide 39: Fixed income portfolio by rating
39 FIXED INCOME PORTFOLIO BY RATING Covered Corporate Government Total Portfolio: €280 bn (%) €8 bn (%) €88 bn (%) €138 bn¹ (%) 31 5 13 6 16 23 8 3 30 29 40 40 20 55 Other fixed Income 53 Covered 11 21 Corporate non fin. Corporate fin. AAA AA A BBB Not Investment Grade Not Rated Government 49 Bond d
Slide 40: Fixed income portfolio by country
40 FIXED INCOME PORTFOLIO BY COUNTRY Covered Corporate Government Total Portfolio: €280 bn (%) €8 bn (%) €88 bn (%) €138 bn (%) 16 2 8 26 30 3 17 42 20 54 Other fixed Income 9 64 16 2 17 Covered 11 1 9 2 Corporate non fin. Corporate fin. Italy France Germany CEE USA Other Government 49 Traditional f
Slide 41: Equity & equity-like
41 EQUITY & EQUITY-LIKE Alternative funds: €14 bn (%) Equity: € 8bn (%) 1 Total Portfolio: €26 bn (%) 1 15 14 Life Life P&C P&C AM Other Other 29 83 84 53 Equity funds: €5 bn (%) Quoted and unquoted¹ 19 4 Equity Equity Funds Alternatives Quoted Life 47 Unquoted 53 P&C Other 96 1. Total Equity & Equi
Slide 42: Asset allocation: real estate
42 ASSET ALLOCATION: REAL ESTATE¹ Total Portfolio: €35 bn¹ Breakdown by accounting method² (%) Breakdown by utilization² (%) 29 At amortised cost 11 At fair value Investment through profit or properties 71 loss Own use Breakdown by country² (%) 89 1 21 Italy 36 France Germany 4 CEE 13 RoE RoW 25 1.
Slide 43: Reconciliation with Group disclosure on external clients
43 RECONCILIATION WITH GROUP DISCLOSURE ON EXTERNAL CLIENTS 18.4 € billion 57.1 178.8 103.3 AM External Wealth Pension Funds Group External Client Assets Management & Others Clients Assets
Slide 44: Focus on financial debt
44 FOCUS ON FINANCIAL DEBT Average cost, maturity and interest Total financial debt expenses on financial debt € million Senior Subordinated / Hybrid Other FY22 1H23 10,289 10,505 Average cost (%) 4.27% 4.31% 166 146 Subordinated/Hybrid 4.09% 4.14% Senior 5.13% 5.13% 8,358 8,549 Average maturity (ye
Slide 45: Debt issuances breakdown by expiry date
45 DEBT ISSUANCES BREAKDOWN BY EXPIRY DATE NOMINAL VALUE (€ m) Senior Hybrid Subordinated 8 1.750 1.000 1.750 500 1.011 850 750 500 600 500 500 408 100 7 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Green bonds Sustainability Green bond bond
Slide 46: Focus on solvency capital requirement
46 FOCUS ON SOLVENCY CAPITAL REQUIREMENT € billion Pre-diversification SCR by region (%) 1H23 SCR before 9% 34.3 diversification 19% AG & Holdings 36% Italy DACH Diversification 9.2 France 17% International 19% Taxes 4.9 Pre-diversification SCR by type of risk (%) 2022 SCR excl. 20.1 22% Other regim
Slide 47: Meet our management
47 MEET OUR MANAGEMENT 9M 2023 Investor New York London Results Day 12 September 2023 20-21 September 2023 17 November 30 January 2023 2024 Barclays Global BofA Global Financial Research Services Financials Conference Conference
Slide 48: Contacts
48 CONTACTS Assicurazioni Generali Piazza Duca degli Abruzzi 2 34132 Trieste, Italy Fax: +39 040 671338 e-mail: [email protected] generali.com Fabio Cleva Stefano Burrino Emanuele Marciante Group Head of Investor Investor Relations Credit & Rating Agency Relations & Rating Agency Relations fabio.cleva
Slide 49: Disclaimer
49 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 r
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