Core Insights - Italy's market regulator has concluded that there is no evidence of a secret agreement between Monte dei Paschi di Siena and its shareholders regarding control over Mediobanca and insurer Generali [1] Group 1 - The investigation by Italy's market regulator focused on potential collusion among shareholders of Monte dei Paschi di Siena [1] - The absence of evidence suggests that concerns regarding manipulation of control over Mediobanca and Generali may be unfounded [1] - This finding could impact investor sentiment and regulatory scrutiny surrounding Monte dei Paschi di Siena and its associated entities [1]

Generali, BFF Bank and France’s BPCE have progressed to the next stage of the bidding process to acquire GamaLife from Apax Partners, reported Reuters, citing two familiar sources. Apax Partners is aiming for a valuation close to €600m for the European life insurance consolidator. Buy-out group Apax Partners expects to receive binding offers in the coming weeks, with the goal of reaching an agreement in early 2026, the sources said. BFF, BPCE and Generali declined to provide comments, reported Reuters. ...

Core Insights - Fitch Ratings assessed large European composite insurers as having 'Strong' to 'Very Strong' profitability, supported by diversified earnings sources that provide stability through cycles [1] Group 1: Financial Performance - Financial performance improved in 2024, driven by a favorable market environment in life insurance and improved pricing relative to inflation in non-life [2] - On average, non-life combined ratios were stable, with a consistent contribution from natural catastrophe losses [2] Group 2: Capital Position - Insurers maintain very strong capital positions, with all having very strong Solvency II or Swiss Solvency Test ratios at end-2024 and end-H1'25 [3] - Strong earnings and positive market effects offset higher capital repatriation to shareholders for most companies [3] - Fitch scored the peers as 'Extremely Strong' or 'Very Strong' on its Prism Global model at end-2024, supported by sustained operating capital generation, although Generali's score fell marginally to 'Strong' [3] Group 3: Financial Leverage - Financial leverage ratios ranged from 17% to 25% at end-2024, with expectations for stability or slight decline by end-2025 as companies do not plan to increase leverage [4] Group 4: Company Profiles - Company profile scores for large European composite insurers were either 'aa+' or 'aa', reflecting leading franchises in core markets, large operating scale, and extensive diversification by geography and business line [5] Group 5: Asset Management - The insurers' asset allocation is considered conservative, with high credit quality fixed-income securities accounting for most invested assets [5] - The agency views the peers' asset/liability management as disciplined and sophisticated, with reduced interest rate risk exposure in life portfolios [6] - Non-life reserving practices are considered prudent, with favorable prior-year reserve developments for at least the past three years [6] Group 6: Insurance Financial Strength Ratings - For Insurance Financial Strength ratings, AXA, Allianz, and Zurich are rated AA with a stable outlook; Aviva and Generali are rated A- with a stable outlook; MAPFRE is rated A+ with a positive outlook [7]

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]