Assicurazioni Generali S.p.A. (OTCPK:ARZGF) Q4 2024 Results Conference Call March 13, 2025 7:00 AM ET Company Participants Fabio Cleva - Head, Investor and Rating Agencies Relations Philippe Donnet - Group Chief Executive Officer Marco Sesana - General Manager Giulio Terzariol - Chief Executive Officer, Insurance Cristiano Borean - Group Chief Financial Officer Conference Call Participants David Barma - Bank of America Andrew Baker - Goldman Sachs Michael Huttner - Berenberg Farooq Hanif - JPMorgan Iain Pea ...

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]

Assicurazioni Generali S.p.A. (OTCPK:ARZGF) Q4 2023 Earnings Conference Call March 12, 2024 7:00 AM ET Company Participants Fabio Cleva - Head, Investor & Rating Agency Relations Philippe Donnet - Group Chief Executive Officer Cristiano Borean - Group Chief Financial Officer Marco Sesana - Group General Manager Conference Call Participants David Barma - Bank of America Michael Huttner - Berenberg Peter Eliot - Kepler Cheuvreux William Hawkins - KBW Farooq Hanif - JPMorgan Will Hardcastle - UBS Steven Haywoo ...

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Assicurazioni Generali S.p.A. (OTCPK:ARZGF) Q3 2023 Earnings Conference Call November 17, 2023 6:00 AM ET Company Participants Fabio Cleva - Head of Investor & Rating Agency Relations Marco Sesana - Group General Manager Cristiano Borean - Group Chief Financial Officer Conference Call Participants David Barma - BofA Securities Farooq Hanif - JPMorgan Peter Eliot - Kepler Cheuvreux Michael Huttner - Berenberg Andrew Ritchie - Bernstein Autonomous William Hawkins - KBW Gian Luca Ferrari - Mediobanca Ashik ...

Assicurazioni Generali S.p.A. (OTCPK:ARZGF) Q2 2023 Earnings Conference Call August 9, 2023 10:00 AM ET Company Participants Fabio Cleva - Head of Investor & Rating Agency Relations Philippe Donnet - Group Chief Executive Officer Marco Sesana - Group General Manager Cristiano Borean - Group Chief Financial Officer Conference Call Participants David Barma - Bank of America Steven Haywood - HSBC Peter Eliot - Kepler Cheuvreux Farooq Hanif - JPMorgan Michael Huttner - Berenberg William Hawkins - KBW Iain Pearc ...

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Financial Data and Key Metrics Changes - The company reported an operating result of over €1.8 billion, marking a 22% year-on-year increase [28] - The adjusted net result improved from €821 million to €1.23 billion, reflecting diversified profit sources [31] - The life operating result was €924 million, almost 10% higher than the previous year under IFRS 4 [44] Business Line Data and Key Metrics Changes - In the Life segment, protection reached €1.3 billion, while unit-linked products achieved €1.4 billion [9] - The P&C business saw a 10% increase in gross written premiums compared to the previous year, driven mainly by non-motor lines [17] - Non-motor gross written premium growth was 12.1% in Q1 2023, continuing the trend from 2022 [32] Market Data and Key Metrics Changes - The company increased its client base to 69 million, adding almost 1 million clients [5] - The average premium in the retail and SME book increased from 3.3% to 6.3% by the end of Q1 2023 [18] - The combined ratio for P&C was 90.7%, which is 5.6 percentage points lower than the previous year [36] Company Strategy and Development Direction - The company aims to become a lifetime partner to customers, focusing on improving advisory services and digital policy distribution [5][7] - The strategy remains unchanged despite rising interest rates, with a focus on new business underwriting discipline and capital-light products [14] - The company is adapting its product offerings to meet changing customer appetites, including recalibrating premium allocations [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic plan despite geopolitical pressures and volatile financial markets [4] - The company noted a moderate increase in lapses, particularly in bancassurance channels, but highlighted a positive trend in retention initiatives [10][11] - The management expects continued growth in the protection business, leveraging increased customer awareness post-COVID-19 [15] Other Important Information - The company has a strong solvency position at 227%, up from 221% at year-end 2022 [54] - The real estate exposure is around €35 billion, with a low vacancy rate of close to 10% [24] Q&A Session Summary Question: Can you provide insights on the Life Q1 operating profit and any one-off items? - The Life CSM release was €743 million, with a lower loss component of €10 million compared to €66 million in the previous year [57] Question: What is driving the increase in the P&C expense ratio? - The increase is mainly due to higher acquisition expenses from the growth of non-motor business and integration costs from newly consolidated businesses [59] Question: Can you elaborate on the extra costs in Asset Management? - The costs are related to investments in regulatory requirements and operational improvements, with expectations of a deceleration in cost increases later in the year [61] Question: What are the group's natural catastrophe retention and reinsurance arrangements? - The company has reinsurance protection operating in excess of €200 million for flood losses, with a maximum coverage of €2.4 billion [66] Question: What initiatives are in place to recapture outflows in Life products? - Initiatives include offering additional products and launching new segregated funds to attract customers [68] Question: What is the outlook for the discount benefit and insurance finance expenses? - The discount benefit is expected to decline, while insurance finance expenses will increase, with a projected €200 million increase in 2024 [100]