Core Insights - Italy's largest insurer Generali will begin offering banking products to its 1.9 million clients from its Alleanza Assicurazioni unit through its private banking division, Banca Generali [1] Company Summary - Generali is expanding its service offerings by integrating banking products into its insurance client base [1] - The initiative targets the 1.9 million clients of Alleanza Assicurazioni, indicating a strategic move to enhance customer engagement and cross-selling opportunities [1] Industry Summary - The move reflects a growing trend in the insurance industry to diversify services and provide comprehensive financial solutions to clients [1] - By leveraging its private banking arm, Generali aims to strengthen its competitive position in the financial services market [1]

Financial Data and Key Metrics Changes - The operating result reached €7.3 billion and the adjusted net result was €3.8 billion for the full year, marking new record highs [5] - The Life segment achieved net flows close to €10 billion at year-end 2024, driven by protection and unit-linked lines [6][8] - The Property & Casualty (P&C) segment saw a 7.7% increase in gross written premiums, with an improved undiscounted combined ratio below 96% [9][10] - The total assets under management grew by 32% to €863 billion, with the operating result of the Asset & Wealth Management segment increasing by almost 23% to €1.2 billion [15] Business Line Data and Key Metrics Changes - In the Life segment, the share of reserves related to capital-light products reached 71% at year-end [8] - The Health & Accident segment accounted for around 22% of the group's overall gross written premiums, indicating a focus on profitable growth [12] - The undiscounted loss ratio in P&C improved by 1.4 percentage points, showcasing strong performance [10] Market Data and Key Metrics Changes - The company reported a strong performance in both motor and non-motor lines across all main markets [9] - The demand for protection products in the Health & Accident segment continued to accelerate, contributing to overall growth [12] Company Strategy and Development Direction - The conclusion of the "Lifetime Partner 24: Driving Growth" plan was marked by over-delivery against all financial targets, with a new strategic plan "Lifetime Partner 27: Driving Excellence" focusing on sustainability [5][18] - The company aims to leverage its strong distribution network and enhance the use of data and artificial intelligence to capture growth opportunities [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong position and the ability to deliver profitable growth opportunities in the future [11] - The focus on cash and capital optimization will continue, with plans for a dividend increase and a share buyback program [17] Other Important Information - The company plans to propose a dividend per share of €1.43, a nearly 12% year-on-year increase, along with a €500 million share buyback [17] - The company emphasized its commitment to responsible investment and corporate citizenship [18] Q&A Session Summary Question: Performance in P&C and future expectations - Management noted that the undiscounted combined ratio is currently at 98%, indicating a strong basis for future performance, with expectations for further improvement in 2025 [28][76] Question: Life investment margin and sustainability - The Life investment result is expected to be around €900 million for 2025, with adjustments for various factors including local IFRS 17 adoption in China [62][88] Question: Cash outlook and management actions - Management expects capital management actions in 2025 to be around €400 million to €450 million, including contributions from Italy and Austria [32][33] Question: New business margin and growth - The new business margin is projected to improve to 5.4% under the new definition, with a path to reach the 6% target requiring careful management of product mix and distribution [46][68] Question: Government bond purchases - The company is looking to increase purchases of Italian government bonds (BTPs) in line with its investment policy, despite a decrease in overall exposure [55][92] Question: Solvency II position and share buyback - The Solvency II ratio is expected to remain stable, with the proposed share buyback not yet factored into the current ratio [138]

Core Viewpoint - Generali and Groupe BPCE are forming a joint venture in asset management, creating a significant European player with 1.9 trillion euros ($1.979 trillion) in assets under management [1][3]. Group 1: Joint Venture Details - The joint venture will be equally owned by Generali and BPCE, each holding a 50% stake [1][4]. - It will rank ninth globally and second in Europe by assets under management, with an estimated revenue of 4.1 billion euros for 2023 [3][6]. - The combined entity will focus on fixed income and equity strategies, targeting clients in France, Italy, and the U.S. [3]. Group 2: Leadership and Structure - Woody Bradford, CEO of Generali's investment division, will lead the new venture, while BPCE's CEO Nicolas Namias will serve as chairman [4]. - The deal is expected to close by early 2026, pending regulatory approvals [4]. Group 3: Financial Commitments and Synergies - Generali has committed 15 billion euros in seed capital for the new platform [7]. - The estimated value of the joint venture, including assets and activities, is 9.5 billion euros, with pretax synergies projected at 210 million euros over five years [6]. Group 4: Industry Context - This merger reflects ongoing consolidation in the asset management sector, with recent notable transactions including BNP Paribas acquiring AXA Investment Managers for 5.1 billion euros [5]. - Analysts suggest that the asset management industry is evolving, with scale becoming increasingly important [6][8].

Financial Data and Key Metrics Changes - The operating result in the Life segment for Q3 2024 increased by almost 11% compared to Q3 2023, with a CSM growth of nearly €500 million despite around €100 million of negative operating variances mainly related to lapses [18][31] - Investment results for the quarter reached €266 million, reflecting over 20% year-on-year growth, influenced by non-recurring elements [18][19] - The undiscounted combined ratio improved to 96.3%, down by 1.4% compared to the previous year, indicating enhanced technical profitability [11][20] Business Line Data and Key Metrics Changes - In the Life segment, new business margin for Q3 was confirmed at 4.92%, with a 9% growth in new business volume and Protection growing by 11.5% [6][7] - The P&C business saw an annual average premium increase of 6.8%, with motor line premiums rising by 7.5% [10][38] - The attritional combined ratio showed improvement, supported by benign frequency and low severe bodily injury claims [11][12] Market Data and Key Metrics Changes - Italy returned to positive net collection in Q3, with expectations for positive net inflow by the end of 2024 [9] - The company noted a normalization of lapses in France to levels seen in 2022, while Italy experienced a decrease in lapses in the second half of the year [8] Company Strategy and Development Direction - The company aims to leverage attractive long-term growth opportunities in the Protection business, which generated over 40% of new business value in the past quarter [7] - A focus on pricing and technical excellence is expected to continue driving improvements in the combined ratio, with a target of below 96% by the end of 2024 [12][20] - The company is adjusting its natural catastrophe budget in response to recent adverse events, indicating a shift in strategy to manage volatility and pricing [13][59] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued improvement of technical profitability, despite cautioning against projecting the rate of improvement linearly into the future [12][30] - The management highlighted the impact of economic variances, with positive equity market performance contributing to a €405 million increase in economic variances for Q3 [32] - The company anticipates a slight decrease in new business margins in Q4 due to typical year-end dynamics [75] Other Important Information - The company is actively supporting the Spanish Red Cross following recent tragic events in Spain, reflecting its commitment to corporate social responsibility [15] - Restructuring costs are expected to decline significantly in 2024 compared to 2023, with ongoing efforts to enhance operational efficiency [63] Q&A Session Summary Question: Insights on P&C attritional and Life CSM variances - Management indicated that the benign frequency and disinflation trends are expected to continue, with a projected improvement in technical profitability [30] - Economic variances for Q3 were approximately €400 million positive, driven by equity market performance, while operating variances were around €112 million negative, primarily due to lapses [31][32] Question: Update on Life investment results and new business margin - The investment results included non-recurring items, with the new business margin impacted by commercial actions in Italy contributing 30 to 40 basis points [36][37] Question: Nat cat budget and pricing outlook - Management acknowledged the need for adjustments in the nat cat budget due to increased frequency and severity of events, while also indicating potential for further price increases [58][59] Question: Restructuring costs and future outlook - Restructuring costs for 2024 are expected to be about half of the 2023 levels, with ongoing efficiency measures in place [63] Question: Solvency ratio details - The numerator for the Solvency ratio is €48.9 billion and the denominator is €23.4 billion, resulting in a ratio of 209% [67] Question: Cash flow and investment income trajectory - The company reported operating cash of approximately €3.7 billion to €3.8 billion, with expectations for continued growth in investment income [47][65] Question: Nat cat reinstatement premiums and impairments - Reinstatement premiums for Q3 were around €15 million, while expected impairments on real estate investments are estimated between €25 million to €50 million [86][87]

Financial Data and Key Metrics Changes - The operating result increased by 5.5%, with positive contributions from all segments [18] - The adjusted net result increased by 8% when excluding a €193 million net capital gain from the previous year [18] - The Solvency II ratio is estimated at 216%, including the impact of a €500 million share buyback [20] Business Line Data and Key Metrics Changes - In Life insurance, protection net inflows reached €1.5 billion, and unit-linked net flows were close to €1 billion [5] - The P&C business saw gross written premiums grow around 11%, or over 6% when excluding hyperinflation in Argentina [9] - The average premium in the retail and SME book increased by 6.3% compared to the previous year [9] Market Data and Key Metrics Changes - The first quarter volumes in China more than doubled year-on-year, increasing its weight in the group PVNBP from around 5% to over 8% [27] - The average guarantee of the European Life business has continued to decline [7] Company Strategy and Development Direction - The company plans to bundle solutions that address multiple customer needs within a single product [8] - There is a strong focus on new business underwriting discipline for Protection and Health businesses [7] - The strategy on pricing and technical excellence is yielding positive results, with a focus on profitable growth [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the group's ability to deliver solid growth and execute its strategic plan [16] - The company expects normalization of market conditions and a gradual scaling back of commercial incentives introduced last year [8] - Management anticipates that the new business margin will increase in the second quarter of 2024 as most factors normalize [29] Other Important Information - The integration of Liberty Seguros is expected to strengthen the platform as the company enters a new strategic cycle in 2025 [13] - The company experienced negligible rating downgrades in its investment portfolio [15] Q&A Session Summary Question: Premium growth in motor insurance - Management confirmed a 5.5% growth in motor premiums excluding Argentina, with effective price changes ahead of loss trends across various geographies [39][40] Question: New business margin outlook - Management indicated that while the new business margin may not immediately revert to normalized levels in Q2, it is expected to improve significantly in the second half of the year [44][46] Question: Operating variances in Q2 - Management noted that operating variances were slightly less than €200 million, with some one-off effects impacting the results [52] Question: Cash remittances and capital upstreaming - Management confirmed that around €4 billion of remittance from subsidiaries has been received, with some one-off capital synergies contributing to this figure [67] Question: Combined ratio guidance - Management reiterated guidance for the undiscounted combined ratio to be below 96%, factoring in the impact of Liberty Seguros [73][76] Question: Capital deployment in Non-Life - Management explained that capital deployment in P&C is ongoing, with a cautious approach to avoid surprises from changing loss trends [82] Question: Genertel strategy - Management clarified that the strategy for Genertel involves maintaining assets under management despite accepting lower margins to prevent lapses [98]

Financial Data and Key Metrics Changes - The company reported record operating results of €6.9 billion, an increase of 7.9% compared to 2022 [6] - Adjusted net results rose to a record level of €3.6 billion, reflecting a strong increase of 14.1% [6] - The growth of operating results has significantly outpaced top-line growth since 2016, indicating a successful transformation from a predominantly Life insurer to a diversified insurance and asset management group [7] Business Line Data and Key Metrics Changes - Property & Casualty (P&C) was the key driver of top-line growth, with both motor and non-motor lines performing positively [8] - The undiscounted attritional combined ratio improved, moving from 96.6% in the first nine months to 94.2% in Q4 2023, driven by tariff strengthening measures and reduced acquisition expenses [22] - Life business recorded positive net inflows close to €9 billion at the end of 2023, despite a challenging market environment [11] Market Data and Key Metrics Changes - The company confirmed its number one position in terms of relationship Net Promoted Score among peers, with over 50% of customers entrusting Generali to cover at least two of their insurance needs [9] - The company is experiencing strong pricing momentum across Europe, particularly in Germany and Italy, with double-digit price increases noted in motor insurance [74] Company Strategy and Development Direction - The company is focused on integrating sustainability into its operations and aims to enhance its insurance leadership in Europe while building a global asset management platform [5][16] - The management is committed to shareholder remuneration, proposing an increased dividend of €1.28 per share, which is over 10% higher than the previous year [12][13] - The company plans to implement a €500 million share buyback, subject to AGM approval, as part of its capital management strategy [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to positive net inflows in Life if market conditions improve throughout 2024 [11] - The company is focused on the successful delivery of its Lifetime Partner 24 driving growth strategy and is on track to achieve its remaining financial goals [16][17] - Management emphasized the importance of being close to customers as a key pillar of the company's strategy [10] Other Important Information - The company has been distributing a steadily growing dividend since 2016, with a cumulative dividend target of €5.5 billion achieved for 2022-2024 [13][14] - The management is increasingly shifting focus to the next strategic cycle, with Generali in a strong position as a diversified insurance and asset management player [17] Q&A Session Questions and Answers Question: Improvement in P&C underlying loss ratio - The underlying loss ratio improved in Q4 compared to the first nine months, with a decrease of 1.5 percentage points in the current year loss ratio, driven by technical measures and reduced acquisition expenses [21][22] Question: Contribution of Liberty Seguros to 2024 targets - The balance sheet of Liberty Seguros for 2023 is still pending approval, and the management is awaiting final figures to align with group figures [24] Question: Plans for reserving in Switzerland - The company has reached an agreement for prudent reserving in Switzerland, allowing for better predictability and reduced sensitivity to capital risks [27] Question: Balance of discounting and unwinding for 2024 - The expected discounting for 2024 is projected to be less than €800 million, while unwinding is expected to increase to €565 million [33] Question: Pricing momentum in Q1 - The pricing environment remains strong across Europe, with significant tariff increases planned, particularly in Germany [36][74] Question: Solvency implications of extreme scenarios - The company has reduced sensitivity to equity market fluctuations, with a potential 6 percentage point loss in Solvency for a 25% drop in equity [38] Question: Life operating results and loss components - The loss components in Life insurance are expected to remain in the low to mid double-digit range for 2024, with adjustments made for market performance [70][72] Question: Future dividend policy - The management is confident that the trend of shareholder-friendly capital management will continue, but specific future plans will be disclosed in early 2025 [49][56]

Financial Performance - Generali Group achieved a record Operating Result of €6.879 billion, a 7.9% increase compared to €6.374 billion in 2022[6, 21] - The Adjusted Net Result grew by 14.1% to a record €3.575 billion, compared to €3.133 billion in 2022[6, 17] - The proposed dividend per share is €1.28, a 10.3% increase, leading to the achievement of the "LifeTime Partner 24" cumulative dividend target of €5.5 billion[5, 19, 10] - Gross Written Premiums increased by 5.6% to €82.466 billion, driven by strong P&C growth[16, 19] Business Segment Highlights - P&C Operating Result increased by 15.8% to €2.902 billion, compared to €2.507 billion in 2022, benefiting from higher discounting and volume growth[19, 21, 44] - P&C Gross Written Premiums increased by 12.0% to €31.120 billion[6, 16, 43] - Life Operating Result increased by 1.7% to €3.735 billion, driven by a higher CSM release, offsetting negative one-offs[21, 24] - Asset & Wealth Management Operating Result increased by 4.9% to €1.001 billion, supported by Banca Generali's strong performance[21, 61] Capital and Solvency - The Solvency 2 ratio stands at 220%, supported by 22 percentage points of normalized capital generation during the year[6, 19, 18] - Normalized CSM growth was 4.8%, supported by the unwinding of discount net of the CSM release[31] - Net Holding Cash Flow increased slightly by 1% to €2.936 billion, driven by higher remittance from subsidiaries[82] Sustainability - The carbon footprint of the investment portfolio decreased by 46.2% compared to the 2019 base year[13]

Financial Data and Key Metrics Changes - The company reported a strong and resilient performance with a top line growth in key areas, particularly non-motor P&C, which saw a 10.1% year-on-year growth [21][22] - The operating result for P&C increased from €1.43 billion a year ago to €2.15 billion for the first nine months of 2023, driven by several factors including a €350 million increase in the undiscounted operating insurance service result [23][24] - The adjusted net result for the first nine months of 2023 was €2.979 billion, reflecting a solid capital position with a solvency ratio at 224% [35][36] Business Line Data and Key Metrics Changes - In the Life segment, net inflows were reported at minus €1.2 billion, showing improvement compared to the previous quarter, attributed to lower surrenders [26][27] - The P&C business gross written premiums increased by 11.9% in Q3 2023, with an average premium increase of 6.9% compared to the same period last year [12][22] - The normalized CSM growth for Life was around 3.8% on a nine-month basis, with expectations for stronger new business CSM in Q4 [30] Market Data and Key Metrics Changes - The company maintained a strong position in the market with a Net Promoter Score confirming its number one position among peers [5] - The average premium in the retail and SME book increased by 6.9% year-on-year, reflecting broad-based improvement across the portfolio [12][22] - The company noted a gradual normalization of outflows in France and improvements in lapses in Italy, particularly in the bancassurance channel [9][26] Company Strategy and Development Direction - The company continues to focus on bundling solutions that address multiple customer needs within a single product, aligning with its lifetime partners ambition [11] - The strategy includes adapting pricing in response to claims inflation and frequency, particularly in the P&C segment [13][58] - The company is also enhancing its product offerings to remain competitive in the current market context [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain macro environment due to recent geopolitical developments and weather events affecting communities [4][6] - The company expressed confidence in its strategic direction and ability to deliver solid growth as it moves into the last quarter of the year [19] - Management highlighted the need to adapt pricing strategies in light of increasing claims frequency and severity, particularly regarding natural catastrophes [56][100] Other Important Information - The company reported a significant impact from natural catastrophes, with €875 million in undiscounted nat cat experience, of which €687 million occurred in Q3 [23][24] - The investment yield remained strong at 4.3% in Life and 4% in P&C, with a focus on maintaining a prudent approach to listed equity [16][18] - The company anticipates potential impairments in real estate assets due to market trends, which may impact non-operating investment results in Q4 [32] Q&A Session Summary Question: Insights on P&C loss ratio and guidance for combined ratio - Management noted an improvement in the current year loss ratio, excluding natural catastrophes, and confirmed ongoing efforts to reach the previous guidance of 95% for the combined ratio [38][41] Question: Clarification on discounting benefits and finance expenses - The guidance for discounting benefits for 2023 has been adjusted to €850 million to €900 million, with finance expenses expected to increase by around €200 million [45][46] Question: Changes in lapse assumptions and CSM variances - Management indicated marginal decreases in experience variances and noted that adjustments to assumptions may occur based on observed trends in lapse rates [46][113] Question: Long-term outlook for natural catastrophes and pricing strategies - Management acknowledged the increasing frequency of secondary perils and emphasized the need to adapt pricing strategies accordingly [56][58] Question: Impact of Life guarantee fund in Italy - The introduction of the Life guarantee fund is expected to have a net impact of €40 million over the next ten years if the law is approved as currently proposed [71] Question: Details on net inflows and performance in Italy and France - Management reported a positive trend in net inflows, with improvements in both Italy and France, indicating a reassuring normalization in the savings and pension business [84][90]

Financial Data and Key Metrics Changes - Gross written premiums increased to €42.2 billion, up by 3.6% compared to the first half of 2022, driven by a 10.6% growth in the Property & Casualty segment [7][8] - Operating results rose to over €3.7 billion, a 28% increase from the first half of 2022, with the Property & Casualty segment's operating results increasing by 85.7% to €1.85 billion [10][11] - Adjusted net results increased to over €2.3 billion, up by nearly 61% from the first half of 2022, translating into a 64.6% rise in adjusted earnings per share [13][14] - The solvency ratio improved to 228%, up from 221% at the end of 2022, reflecting robust capital generation [15] Business Line Data and Key Metrics Changes - In the Property & Casualty segment, non-motor premiums grew by 10.7%, with Europ Assistance premiums increasing by 44% due to growth in the travel business [8] - Life's net inflows were negative at €877 million, with positive inflows in unit-linked and protection products, partially offsetting outflows from savings [9] - The operating results of the Asset & Wealth Management segment rose to €498 million, up by 1.3%, with Banca Generali improving by 41.2% [12] Market Data and Key Metrics Changes - The combined ratio improved by 5.4 percentage points to 91.6%, driven by a lower loss ratio [11] - The company confirmed strong growth in various geographies, with significant price increases in the motor line across major markets [30][42] Company Strategy and Development Direction - The company announced two key acquisitions aimed at strengthening its market position in insurance and asset management, including Liberty Seguros and Conning Holdings Limited [16][18] - The strategic plan "Lifetime Partner 24" is on track to meet all key financial targets set in December 2021, with ongoing updates planned [20][21] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience and profitability of the company, emphasizing the strong financial position and diversified profit sources [6][10] - The management expressed confidence in the ongoing execution of the strategic plan and the positive outlook for the second half of the year, particularly regarding tariff increases and improved profitability [20][70] Other Important Information - The company is focused on maintaining profitability through ongoing tariff adjustments and managing claims inflation, particularly in the material damage sector [68][70] - The integration of recent acquisitions is expected to enhance operational efficiency and market presence [19][86] Q&A Session All Questions and Answers Question: Inquiry on P&C combined ratio and outlook - The underlying combined ratio has deteriorated slightly, with expectations for improvement in the second half due to tariff increases and operational adjustments [22][30] Question: Lapse rates in Life insurance - The lapse rates in France and Italy have been addressed with a forward-looking measure, with management observing a slight improvement in the second quarter [26][32] Question: Operating capital generation and remittances - The company confirmed strong capital generation, with expectations for cash conversion payouts to remain valid in the new operating capital generation environment [22][28] Question: Solvency II ratio impact from lapse assumptions - A significant portion of the negative impact on the Solvency II ratio was attributed to changes in lapse assumptions, with ongoing monitoring of the situation [38][40] Question: Tariff changes by country - Management confirmed that tariff changes are being implemented across all geographies, with specific increases noted in Germany and Italy [42][44] Question: Dividend growth and future plans - The company is committed to growing dividends consistently in line with its strategic plan, with a focus on maintaining a strong capital position [80][81] Question: Outlook on combined ratio and investment income - The company is managing towards a 95% combined ratio, with expectations for stability in investment income despite potential fluctuations in discounting effects [97][101]

| --- | --- | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...