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GENERALI
The power of Discipline, Simplicity and Focus

Generali

March 25, 2014

Morgan Stanley 10 Annual European Financials Conference

Agenda

- Our revolution of discipline, simplicity and focus

- Measuring our success - Business performance & outlook

Page
Page

3
9

Page 17

Please note that prior years figures have been restated throughout the whole presentation to reflect the new perimeter of th e Group. Net income, Shareholders Equity, Solvency I, Life Value KPIs, Embedded Value, Economic Solvency are not adjusted for dispose d entities. The like for like change of written premiums, life net inflows, APE and NBV is on equivalent terms (on equivalent exchange rates and consolidation area).
Generali March 25, 2014 Morgan Stanley 10 Annual European Financials Conference

Agenda

I. Our revolution of discipline, simplicity and focus

Generali

March 25, 2014

Morgan Stanley 10 Annual European Financials Conference

Our revolution of discipline, simplicity and focus

A strong global Group

More than 60 countries in the world

Over 500 billion Euro of AUM
*Source: 2013 Fortune Global 500 ranking
Generali

65 million customers

One of the worlds 50 largest companies* 66 billion Euro of premiums, over 70% from outside Italy

77,000 employees
March 25, 2014

Morgan Stanley 10 Annual European Financials Conference

Our revolution of discipline, simplicity and focus

Key business highlights 2013

5 year average CEE combined ratio
Acquisition of outstanding minorities announced January 2013 A major force in the region (#4 insurance group, with ~6% market share) Full management control from April 2013
100% 95% 90% 85% 2009 2010 2011 2012 2013
Combined Ratio, Group Combined Ratio, CEE

89.6%

CEE

New management acted quickly to protect or improve profitability

Consistently excellent combined ratio, also in 2013 despite significantly higher Nat Cat

Acquisition of outstanding minorities of Generali Asia (controlling Philippines, Thailand, and Indonesia) announced November 2013 Limited overall size in the region, but

CAGR in Asia Gross Premiums

+20%

Asia

Gross premium growth ~20%, approaching 1bn

Biggest non-Chinese company in China, contributing 656 m of premiums and 25m of operating profit in FY13 Indonesia second largest market, approaching 100 m of premiums following a doubling of volumes(1) in FY13
2011 2012 2013 981 676 819

(1) At constant exchange rates

Generali March 25, 2014 Morgan Stanley 10 Annual European Financials Conference

Our revolution of discipline, simplicity and focus

Key business highlights 2013

Life insurance: Share of unit linked & protection premiums Acquisition of outstanding minorities announced July 2013 #2 player in the German market Leadership position in protection and unit linked Taking market share in a hardening motor market (premiums +4.8% YoY, +10% in Motor), with combined ratio better than market average
50% 28% 22% Savings Protection Unit linked

50%

Germany

Leading market positions (#1 in Life and Non-Motor P&C; #2 in Motor P&C)

Operating profit

Creation of Generali Italia achieved, through merger of Generali, INA, and Toro
Rolling out of Generali IT platform to former INA and Toro networks Product simplification underway (70% reduction in number of products) Integration complete by mid 2016

+16%
1,599 1,376
431 591

Italy

Generali

945

1.008

Significant improvement in Insurance profitability already in 2013 (+16%) Another good year for Banca Generali, operating profit +16%
March 25, 2014

2012
Operating profit, Life

2013
Operating profit, P&C

Morgan Stanley 10 Annual European Financials Conference

Our revolution of discipline, simplicity and focus

Focus on core business

Disposal process is well advanced with over 2.4billion achieved

Operation

Closing Date

Proceeds ( bn)

Exit multiple (historic)

Solvency 1 impact

Migdal

4Q12

0.7

17x

+2%pts.

Banca Generali (12% placement) Generali USA Life Re

2Q13

0.2

12x

+1%pts.

4Q13

0.7

15x

+1%pts.

Mexico

4Q13

0.6

18x

+4%pts.

Fata

2014

0.2

15.5x

+1%pts.

Cumulative Total

2.4

+9%pts.

Generali

March 25, 2014

Morgan Stanley 10 Annual European Financials Conference

Our revolution of discipline, simplicity and focus

Focus on core business

Minority buy-outs: Creating a simpler, more effective organisation

% of FY13 operating profit(1)

Ownership status end 2012

Expected Ownership status end 2014

Italy

38%

100%

100%

Germany
France CEE

14%
13% 10%

93%
100% 51%

100%
100% 100%

In addition to disposing of assets, we have committed ~2.9 bn to buy out the minorities in some of our major operations Full ownership is critical for us to reap the benefits of a simpler and more effective organisation

(1) % of FY13 insurance operating profit (Life + P&C)

Generali March 25, 2014 Morgan Stanley 10 Annual European Financials Conference

Agenda

II. Measuring our success

Generali

March 25, 2014

Morgan Stanley 10 Annual European Financials Conference

Measuring our success

10

Overview of our key 2015 targets

Enhance profitability

Key Profitability Levers Free cash flow

Cost savings (Op Ex)

Technical Excellence(1)

Ongoing projects
(expected combined benefit by 2015: ~ 1.6bn(2))

Expected net free surplus

Remittance ratio

> 2 bn
> 75%

Confirmed
New

Cross-cycle Operating RoE

Increase & improve capital base

Solvency 1 Other / economic measures > 160% AA equiv. Confirmed Confirmed

Capital

>13%
Achieved by 2015

Leverage
(1) As outlined in January
Generali

Interest cover Debt leverage

~ 7x < 35%

Confirmed New

(2) Gross, cumulative, also including Centralised reinsurance and Treasury benefits
March 25, 2014 Morgan Stanley 10 Annual European Financials Conference

Measuring our success

11

Targets: Progress in year 1

We are on track to meet 2015 targets despite market headwinds
Profitability improved: Operating RoE up 80bp Cash flow (Free surplus measure): Strongly improved, already exceeded 2015 target Solvency: ~150% at end February (>150% adjusting for ineligible subordinated debt) Leverage: Expected to fall this year as we repay debt, as committed in November, also further boosting interest cover

FY12
Operating RoE (%) Expected net free surplus ( bn) 11.3% 1.5

FY13
12.1% 2.1

D
+80bp +38%

2015 TARGETS
>13% > 2 bn

Debt leverage (%)

Interest cover (x) Solvency I (%)

40.4%
3.6x 145%

39.6%
4.2x 141%

-80bp
+0.5x -4%pts.

< 35%
~ 7x > 160%

~ 150% at end Feb(1)

(1) Before replacement of ineligible subordinated debt at year end
Generali March 25, 2014 Morgan Stanley 10 Annual European Financials Conference

Measuring our success

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Operating RoE is our key target

RoE is our key target: Cross-cycle >13% to be achieved by 2015
The macro environment and the need for stronger capitalisation will weigh on returns Expense inflation, likely weakening in some insurance markets, and low reinvestment rates will pressure returns Strengthening our solvency position will increase the denominator which we will more than compensate for, with clearly identified initiatives: Expense initiatives Technical Excellence initiatives Other group initiatives, e.g. Centralised Reinsurance, Centralised Treasury

Operating ROE walk to 2015 (%)

13%
12.1%

13%

FY13 Positive impact Negative impact

Inflation / insurance market / investment effects

Strengthening capital base

Expense initiatives(1) Technical Excellence Other initiatives + (1) programmes announced & expected M&A transactions

(1) After policyholder share, tax and minorities

Generali March 25, 2014 Morgan Stanley 10 Annual European Financials Conference

Measuring our success

13

The power of Discipline, Simplicity and Focus

We significantly increased our cost saving ambitions

Target gross savings(1) m

1,000
750 600 Life P&C and others 2015 Jan 2013 Investor Day
(1) Before the effect of inflation and growth investments

400

300

In November, we increased our planned cost saving ambitions, to total 1 bn by 2016

Technical Excellence and other initiatives are expected to generate a further 1 bn gross operating impact by 2016

450 2015

600

2016

November 2013 Investor Day

Generali

March 25, 2014

Morgan Stanley 10 Annual European Financials Conference

Measuring our success

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9 programs launched to deliver cost savings

Gross savings(1)
( m, percent of baseline)

Breakdown of run-rate savings by program

Total
750 1,000 Sales Support Claims Management 2014 2015 2016 Operations

1.000 150 40 100 130 80 120 130 250

450

520 200 2013

3%

7%

11%

14%

Corporate Functions

Costs to achieve
( m)
250 Annual 40 2013 Cumulated 2014 2015 2016 260 170

Premises & Facility Management

Information Systems IT Infrastructure Indirects(2) Thereof Procurement

40

290

550

720

(1) Before the effect of inflation and growth investments (2) Remaining non-compensation costs exclude Premises & Facility Management, Information Systems and IT Infrastructure
Generali March 25, 2014 Morgan Stanley 10 Annual European Financials Conference

Measuring our success

15

Solvency I
We remain on track to deliver our 2015 ambition of 160%
Key drivers: Organic retained earnings generation is the main contributor Completion of disposal programme & other capital optimisation measures offset cost of minority buy-outs Analysis does not take into account recent positive mark to market movements Solvency 1 ratio: updated walk to 2015
160% 160%

141%

FY13

Minority buyouts (GPH & GDH)

Refinancing of ineligible sub Retained capital (net of Completion of disposals and debt growth in requirements and further optimisation measures dividends)

Positive impact Negative impact

Generali

March 25, 2014

Morgan Stanley 10 Annual European Financials Conference

Measuring our success

16

Debt leverage
Financial leverage ratio evolution

41,6%

42,4% 42,4% 40,4% 39,6%

Average: 40.4%

38,4% 37,9%

< 35%

Slight improvement of the Leverage ratio Increase in the Interest Coverage ratio: Both measures expected to improve in 2014 due to announced debt reduction target 2015 targets on track

2007

2008

2009

2010

2011

2012

2013

2015

Inter. Cover. Ratio

8.7x

3.3x

4.1x

5.1x

4.0x

3.6x

4.2x

~ 7x

(1) After IAS 19 adjustment

Financial Leverage = Financial Debt / Financial Debt + Adjusted Shareholders Equity (2) Adjusted Shareholders Equity = Shareholders Equity gross of minorities excluding gains and losses included in Other Com prehensive Income (OCI).

Generali

March 25, 2014

Morgan Stanley 10 Annual European Financials Conference

17

Agenda

III. Business performance & Outlook

Generali

March 25, 2014

Morgan Stanley 10 Annual European Financials Conference

Business performance & outlook

18

The power of Discipline, Simplicity and Focus

Satisfactory results allow normalisation of dividend policy
Progress on disposals and recovering profitability
Disposals achieved vs. target

Improving capital position

Shareholders equity
16,7 17,5 19,0 15,5 19,8

Dividend policy starting to normalise

1.6bn
Outstanding

2.4bn
Announced / Completed

Dividend per share

0,45 0.45(1)

0,35
2009 2010 2011 2012 2013 0,20 0,20

Net Profit (bn)

1,9 1,7 1,3 0,9

Solvency I Ratio
>150% 145% 132% 117% 2009 2010 2011 2012 2013

142%

141%

(1) Proposed

0,1 2009
Generali

2010

2011

2012

2013

2009

2010

2011

2012

2013 Current

March 25, 2014

Morgan Stanley 10 Annual European Financials Conference

Business performance & outlook

19

2014: Transformation and delivery

Our revolution of simplicty, discipline and focus will continue at pace
Priorities and expectations for 2014

The path as we laid out in November

Completion of minority acquisitions in Central and Eastern Europe and Germany Further reduce leverage with retiring of at least 700 m of debt, and continue working towards our Solvency target Delivery of 300 m in cost savings, as part of our 1 bn promise by 2016 Further capitalise on our strong position in Direct, where we are already a market leader with > 4 bn of premiums Exploit technical excellence in P&C to maximise competitive advantage and rebalance business and in Life to optimise risk and return Further reduction in liquidity, diversification of investment portfolio, and exit of pacts Major progress of restructuring in Italy

Generali March 25, 2014

Morgan Stanley 10 Annual European Financials Conference

Business performance & outlook

20

Our vision for Generali in 2015

Focused on core insurance business, with greater

Superior customer acquisition and retention; focus on retail and affluent space

contribution from P&C

Stronger capital position and disciplined balance sheet management

Consistent technical excellence

and tight control of costs

The mission is to deliver top quartile shareholder returns and profitability

Generali Generali March 25, 2014 Morgan Stanley 10 Annual European Financials Conference

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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 recognise that actual results, performance or events may differ materially from such expectations because they relate to future events and circumstances which are beyond our control including, among other things, general economic and sector conditions. Neither Assicurazioni Generali S.p.A. nor any of its affiliates, directors, officers employees or agents owe any duty of care towards any user of the information provided herein nor any obligation to update any forward-looking information contained in this document.

The manager charged with preparing the companys financial reports, Alberto Minali, declares, pursuant to paragraph 2 of article 154-bis of the Consolidated Law on Financial Intermediation, that the accounting information contained in this presentation corresponds to document results, books and accounts records.

Generali

March 25, 2014

Morgan Stanley 10 Annual European Financials Conference

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Next events

30.04.2014 Annual general Meeting 15.05.2014 1Q 2014 results reporting 31.07.2014 1H 2014 results reporting

06.11.2014 9M 2014 results reporting 19.11.2014 2014 Investor Day

Generali

March 25, 2014

Morgan Stanley 10 Annual European Financials Conference

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Team

Spencer HORGAN
Head of Investor Relations Spencer.Horgan@Generali.com

Marta PORCZYNSKA
Team assistant & event coordination Marta.Porczynska@Generali.com

+44 20 7265 6480

+39 040 671402

Stefano BURRINO
Stefano.Burrino@Generali.com +39 040 671202

Martina VONO
Team assistant & event coordination Martina.Vono@Generali.com +39 040 671548

Emanuele MARCIANTE
Emanuele.Marciante@Generali.com +39 040 671347

Veronica CHERINI
Veronica.Cherini@Generali.com +39 040 671488

Assicurazioni Generali P.za Duca degli Abruzzi 2 34132 Trieste, Italy Fax: +39 040 671338 e-mail: ir@generali.com

Rodolfo SVARA
Rodolfo.Svara@Generali.com
+39 040 671823

www.generali.com

Generali

March 25, 2014

Morgan Stanley 10 Annual European Financials Conference

24

Thank you

Generali

March 25, 2014

Morgan Stanley 10 Annual European Financials Conference

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GENERALI
The power of Discipline, Simplicity and Focus

Generali

March 25, 2014

Morgan Stanley 10 Annual European Financials Conference