Generali SpA

Welcome to the Generali Group
Please select your country

Our locations
                           

Interim report as at September 30, 2014 - Press release

INTERIM REPORT AS AT SEPTEMBER 30, 2014 – PRESS RELEASE¹

Strong growth in the first half operating result, 2015 plan nearly complete

Operating result grows to € 3.7 bln (+12.8%), solid performance in all business segments

Net income at € 1.6 bln, in line with 9M13, with a growth of 7.5% excluding discontinued operations²

Business mix and new products drove total premiums to € 51.3 bln (+6.4%). In the Life segment (+9.6%), significant growth of linked products (+39%) and excellent performances in Italy and France

In the P&C segment high technical profitability with an improved combined ratio at 93.6% (95% 9M13)

Solvency I ratio at 160% (+19 pps since end of 2013) with acquisition of GPH minorities included. 169% on a pro forma basis after the BSI sale. Shareholders’ equity strengthened to € 22.5 bln (+14%)

The Group CFO of Generali, Alberto Minali, commented: “The solid 9-month results show that the Group’s operating performance and capital position are continuing to develop despite an adverse market scenario. These figures reflect the strategies we put in place to steer our offering towards higher-value products as well as our renewed focus on customers. As the Group works hard to fulfil the strategic plan, we expect the operating result at year-end to improve with respect to the previous year”.

Milan. The Board of Directors of Assicurazioni Generali, chaired by Gabriele Galateri di Genola, approved the consolidated results as at September 30, 2014.

Executive Summary

The Group’s strategic actions, based on the development of the core business and on its profitability, enabled Generali to improve its performance in all segments in the first nine months of the year. The Group - even in a still uncertain macro-economic environment characterised by persistently low interest rates - reached an increased operating result of € 3.7 billion as at September 30, 2014 (+12.8%; € 3.3 bln 9M13), with a strong upturn in the third quarter (+20.8%) if compared to the same period of 2013.

The net income reached € 1,588 million (€ 1,591 mln 9M13); the result was affected by some one-off effects of the first half of the year, especially the disposal of BSI, which generated a negative effect of € 113 million, compared to gains on disposals in the prior year. Net income after taxes from continuing operations showed an increase of 7.5%, thanks to the growth of the operating result.
The non-operating result amounted to € -912 million (€ -895 million 9M13). The performance was determined by net impairment losses registered in the first half of the year partially offset by greater realized gains.

In the Life segment premium profitability, positive financial management and cost control contributed to the increase of the operating result to € 2.3 billion (+11%). As for production, the launch of new products and the strength of the sales network led to a premium growth of 9.6%, reaching € 35.7 billion. An excellent trend was registered in Italy (+31.3%), in the EMEA area (+24.1%) and in France (+7.3%), showing a premium upturn thanks to the actions undertaken this year on the portfolio. Life Net Inflows increased strongly (+41.7%) to € 9.1 billion.
The new production in terms of Annual Premium Equivalent (APE) increased too (+12.7%), reaching € 3.7 billion. Thanks to an increase in production and profitability, the New Business Value (NBV) grew by 42 % reaching € 934 million, with the New Business Margin (NBM) increasing to 25.5% (20.9% 9M13).

In the P&C segment the operating result rose to € 1.5 billion (+11.8%), led by an excellent technical profitability. The loss ratio and costs decline improved the combined ratio (CoR) which reached 93.6% (-1.4 pps). Premiums remained stable at € 15.6 billion (-0.2%) even in a still challenging economic environment in several markets; the performance in Germany was good (+2.7%).

In the financial segment the operating result increased by 17.8% if compared to September 30, 2013 and reached € 323 million, driven by the performance of Banca Generali (+22.3%).

During the first nine months the strengthening of capital position resulted in a Solvency I ratio of 160% (+19 pps since the end of 2013), including the effects of the forthcoming acquisition of the remaining 24% of Generali PPF Holding which reduced the ratio by 7 percentage points. The surplus is worth € 11 billion. On a pro forma basis the Solvency I ratio reaches 169%, considering also the disposal of BSI.
The shareholders’ equity of the Group rose to € 22.5 billion (+14%) compared to € 19.8 billion at December 31, 2013, substantially benefitting from the positive economic results of the period and from the favourable performance of financial markets, which have contributed to an increase of the reserve for unrealized gains and losses on available-for-sale financial investments.

Life Segment: increase in premiums and business profitability

  • Operating result at € 2.3 bln (+11%), even in a persistently low interest rate environment
  • Premiums increased to € 35.7 bln (+9.6%), driven by the strong development of linked products (+39%). Excellent performance in Italy; recovering production in France
  • Net inflows grew strongly by 41.7% to € 9.1 bln
  • Strong increase of New Business Value (NBV) to € 934 mln (+42%) and of NBM margins to 25.5% (20.9% 9M13)

The life segment’s operating result reached € 2,300 million, registering a growth of +11% (€ 2,071 milion 9M13). The performance benefitted in particular from the contraction of acquisition and administration costs, in line with the strategy of cost containment, which more than offset the reduction in the technical margin. The contribution of the financial margin was positive, thanks to greater current income and net realized gains on equities and bonds obtained by taking advantage of the favorable performance of the financial markets.

(€ million) 30/09/2014 30/09/2013 Third quarter 2014 Third quarter 2013
Life operating result 2,300 2,071 748 591
Technical margin 4,026 4,216 1,335 1,407
Net investment result 1,704 1,491 557 379
Total operating expenses -3,430 -3,636 -1,144 -1,196

Thanks to the positive performance of all business segments, life premiums reached € 35,728 million³ (+9.6%), registering a further improvement if compared to the first 6 months of the year. Linked contracts grew strongly (+39%), driven by the strategy of favouring insurance products with low capital absorption. Savings and protection policies have also increased, by 2.6% and 1% respectively.

With regard to the main countries where the Group operates, a very good performance – with premiums amounting to € 11,751 million (+31.3%; € 8,948 million 9M13) – was registered in Italy, where the excellent trend continued in all business lines, especially in savings and linked policies. A positive contribution came also from EMEA Countries (+24.1%), Ireland and Austria in particular. The performance of France further improved too if compared to the trend of the semester, with a growth of 7.3%.
In Germany, despite the positive performance of 3Q (+1.2%) premium income registered a 12% decline, attributable to the actions taken to steer production toward products with a higher profitability and a lower capital absorption. Asia (+25%) and International Operations (+8.7%) both continued to register a positive growth in premiums.

Thanks to the development of the production linked to the quality of the sales network and of the products offered by the Group, the life net inflows – i.e. the difference between earned premiums and cash outflows for payments and cash surrenders – increased by 41.7% to € 9,118 million.
New business in terms of APE evidenced an increase of 12.7% on equivalent terms to € 3,666 million due to the positive contribution from Italy (+38.2%), France (+9.6%) and EMEA (+12.2%), only partially offset by the contraction registered in Germany (-20.4%). Both annual premiums (+5.8%), which account for over 56% of new business in the first nine months of 2014 and single premiums (+23.1%) showed a positive performance.
The actions taken by the Group on portfolios led to an increase in profitability with NBM margins at 25.5% (20.9% 9M13). This improvement was facilitated by the recovery of traditional savings products benefitting from more profitable pricing of new products. As a result of higher volumes and improved profitability, the New Business Value (NBV) increased by 42% to € 934 million.

Property & Casualty Segment: further improvement in technical profitability and operating result

  • Operating result at € 1.5 bln (+11.8%) thanks to a decrease in the loss ratio and cost containment
  • Combined ratio at 93.6%, improved by 1.4 pp
  • Premium income stable at € 15.6 bln, sustained by Germany (+2.7%)

The property & casualty segment’s operating result reached € 1,482 million (+11.8%), also driven by the technical result (+21.6%) that reflects both the strategic actions implemented to further improve the current levels of operating efficiency and the effects of the measures taken to increase technical profitability. Catastrophic events, such as the storms that hit Central Europe in June and July, affected the result for approximately € 176 million (1.2 pp CoR). Investments’ result showed an improvement too, despite the current low level of interest rates.

(€ million) 30/09/2014 30/09/2013 Third quarter 2014 Third quarter 2013
Property&Casualty operating result 1.482 1.325 449 425
Technical margin 860 707 222 198
Investment result 770 757 270 257
Other operating items -147 -139 -43 -31

The decrease in the loss ratio to 66.8% (-1.4 pp), together with the steadiness of costs with an expense ratio at 26.8% (-0.1 pp), led to a further improvement of the overall combined ratio to 93.6% (-1.4 pp).In particular the current non catastrophic loss ratio decreased by 0.3 pp thanks to an improvement in the non-Motor line, while the Motor line is substantially stable. The effect from previous generations remains consistent with the Group’s reserving policy.

With respect to the single Countries where Generali operates, CoR significantly improved in Italy to 89.1% (91.6% 9M13), in Germany to 93.5% (95.9% 9M13) and in CEE Countries, which continue to have the best country CoR of the Group with a drop of 2.1 pps to 87.3% (89.5% 9M13). On the contrary, CoR increased in France to 105.4% (101 % 9M13), as it was affected by the impact of natural catastrophes (3.2 pps) and by the effects of portfolio restructuring strategies.

Gross written premiums of the property & casualty segment were stable at € 15,564 million (-0.2%), within a still challenging environment. In particular, the Motor line maintained last year’s trend (+0.2%) thanks to the good performance of Germany, that offset the decline registered in some more mature markets (Italy, France and Spain). The non-Motor line was stable, and the positive performance of the Commercial/Industrial lines (+1.3%) – benefitting from the good performance of Germany – offset the decline registered in the other lines.

Financial segment: operating result increasing to € 323 mln (+17.8%)

As at September 30, 2014 third-party assets managed by banks and asset management Group companies increased to € 39,054 million (€ 36,535 million at December 31, 2013).
The financial segment operating result grew to € 323 million (€ 274 million as at September 30, 2013) thanks to the good performance of Banca Generali. The net result increased, mainly benefitting from higher dividends and net commission income. Management costs and other costs and operating revenues registered a growth. Finally, the cost income ratio went from 50% (September 30, 2013) to 47.3%, especially thanks to the development of the net investment result.

Shareholders’ equity and Group Solvency

The shareholders’ equity attributable to the Group amounted to € 22,538 million as at September 30, 2014, compared to € 19,778 million as at December 31, 2013.
The 14% increase was mainly due to:

  • gains and losses on financial assets available for sale and other gains and losses recorded in shareholders’ equity, equal to € 2,725 million in the first nine months attributable to the favourable performance of the financial markets;
  • the result of the period attributable to the Group, equal to € 1,588 million;
  • the dividend distribution of € -701 million;
  • the negative effect on the Group’s capital due to the acquisition by PPF of the remaining share in Generali PPF Holding for € 584 million. 

The Group’s Solvency I amounted to 160% as at September 30, 2014 (141% at December 31, 2013). The 19 pps increase registered in the first nine months was essentially attributable to the profit of the period and to the favourable gains and losses on financial assets available for sale recorded in shareholders’ equity, as well as to the positive effects of the subordinated bond issued in April. The forthcoming acquisition of the remaining 24% of Generali PPF Holding had a negative influence instead.
The required margin increased to €18.3 billion as a result of the Life business development, while the available margin stood at € 29.3 billion. The surplus was therefore equal to € 11 billion.

Group Investment Policy

 

(in € million) 30/09/2014 30/06/2014 31/12/2013
  Total book value % of total Total book value % of total Total book value % of total
Equity instruments 17,453 4.9 17,497 5.0 17,467 5.4
Fixed income instruments 311,645 87.1 302,397 87.0 275,502 85.4
Land and buildings (investment properties) 15,110 4.2 14,943 4.3 14,937 4.6
Other investments 3,598 1.0 3,951 1.1 3,672 1.1
Cash and cash equivalents 9,825 2.7 8,741 2.5 10,968 3.4
Total 357,631 100.0 347,529 100.0 322,546 100.0
Investments back to unit and index-linked policies 65,636   63,490   59,116  
Total investments 423,267   411,019   381,663  

As at September 30, 2014 the Group’s total asset under management increased by 10.5%, reaching € 465.4 billion, comprising € 357.6 billion of Group's general account investments (+10.9%), € 65.6 billion of investments backing policies where the investment risk is borne by the policyholders (+11 %) and €42.1 billion of assets under management on behalf of third parties, substantially stable on equivalent terms if compared to the end of 2013.
The Group’s investments increased by 10.9%, mainly due to the bond portfolio that has benefited from both the increase in the market value – especially of government securities - and the reinvestment of premiums collected during the period especially in corporatestocks. A slight reduction in both the equity portfolio and the real estate investments weight was registered. Finally, the liquidity decreased significantly, in line with the Group’s investment policy, which will continue to be based on an asset allocation aimed at consolidating the current margins and bringing the liquidity back to pre-crisis levels.
As for fixed income investments, the investment strategy aims at portfolio diversification, both in government and corporate bonds, including private placements, to ensure an adequate profitability for policyholders and a satisfactory return on capital, while maintaining a controlled risk profile.
Equity exposure will be kept substantially stable, pursuing a strategy aimed at long-term capital appreciation. New investments in the real estate sector will be focused on new geographic areas (Asia, UK and Eastern Europe), where selective investments will be made. As for liquidity, efforts to reinvest in asset classes that ensure greater profitability will continue.

Significant events in the period and after 30 September 2014

Generali has been recognized by rating agencies for its strategy aimed at improving the Group’s economic viability and capital strength
In late March the rating agency Standard & Poor's affirmed its A- rating of Generali, thus resolving the CreditWatch initiated following last year’s review of the evaluation criteria linked to government debt securities (“Rating Above the Sovereign”). Generali passed Standard & Poor's extreme stress test, clearly demonstrating its ability to maintain a positive solvency even in a highly distressed scenario.
In February the rating agency Fitch affirmed the Insurer Financial Strength rating of Assicurazioni Generali at A- and on May 2 it upgraded Generali’s outlook from negative to stable. The agency confirmed Generali’s rating in July and it also reaffirmed the Company’s senior and subordinated notes at BBB+ and BBB-, respectively.
In February the rating agency Moody's upgraded Generali’s outlook from negative to stable and confirmed the Insurance Strength Rating at Baa1.
Finally, in October the rating agency Am Best upgraded Assicurazioni Generali’s outlook from negative to stable and confirmed its Financial Strength rating at A (Excellent). The rating demonstrates the Group’s strong business position, sound operating performance and increasing capitalization, while the outlook upgrade reflects the stabilization of the Italian macroeconomic and financial environment and the success of Generali’s strategic plan.

The Group has undertaken important actions to optimize its debt and strengthen its financial Solidity
In January 2014, Assicurazioni Generali issued a senior bond for a total amount of € 1,250 million, underwritten for approximately 90% by foreign institutional investors. The issuance proceeds were used to refinance part of the Group's senior debt maturing in 2014, amounting to € 2,250 million, in line with the Group’s funding strategy. In May a senior bond - amounting to € 1,500 million - was reimbursed. The remaining maturities of 2014 will be funded by internal resources.
In April 2014, Generali also placed a fixed rate 12-year subordinated bond for an overall amount of € 1 billion. The issuance, paying a 4.125% coupon, was directed to institutional investors and has attracted orders for more than 7 times the target. The issuance was used to both strengthen the regulatory capital position following the non-eligibility of the € 500 million subordinated loan issued in 2008 and reimbursed in April this year, and to refinance the senior debt due in 2015, at a lower cost for the Group.
Assicurazioni Generali announced today a buyback operation of three hybrid bonds. The operation, which will be covered by a new hybrid issuance, aims to refinance efficiently the Group’s debt maturing between June 2016 and February 2017, in line with the objective of reducing interest expenses over the next years to optimize its regulatory capital structure. The general terms of the tender offer to buy-back have also been disclosed through the press release shared with the market and made available on the Company website at www.generali.com.

Generali has successfully optimized its protection against catastrophic events with the first cat bond covering storm damages in Europe
In April 2014, Assicurazioni Generali became the first Italian sponsor to enter the Insurance Linked Securities (ILS) market to optimize its protection against catastrophes. This operation also represents the first ever 144A indemnity catastrophe bond placement on European windstorm. The innovative transaction provides Generali with a per occurrence cover in respect of losses from Europe windstorms over a three year period. The demand from capital market investors has allowed the protection provided to Generali to be upsized to € 190 million with a fixed premium of 2.25% per annum.

Generali Deutschland Holding minorities squeeze-out concluded
In May, the Company registered, with the German Commercial Register, the resolution taken on December 4, 2013 by the Extraordinary General Meeting of GDH’s shareholders, approving the squeeze-out of Generali Deutschland Holding’s minorities. After the registration of the shareholders’ resolution, all the shares held by the minority shareholders in GDH were transferred to Assicurazioni Generali and the shares of Generali Deutschland were delisted. This transaction resulted in a reduction in the equity of the Group of € 130 million.

Disposal of Fata Assicurazioni Danni completed
In June 2014 Generali completed the sale of 100% of Fata Assicurazioni Danni S.p.A. for a total consideration of € 194.7 million before tax, after a price adjustment procedure, thus allowing the Generali Group to further strengthen its liquidity and capital position and to improve the Solvency I ratio by 0.7 percentage points. The transaction resulted in a gain of € 54 million.

Telco demerger approved
In June 2014 Generali resolved to exercise the demerger option from Telco S.p.A. The Group will complete the demerger by the deadline of February 28, 2015 or earlier, at the conclusion of the necessary formalities with the relevant authorities. The demerger from Telco is in line with the Group's strategy to actively manage its assets and will allow a greater ease in managing the investment itself. This operation has had no impact on the economic, capital and financial position of the Group in the first nine months of the year.

Agreement for the sale of BSI to BTG Pactual signed
In July 2014 Generali signed an agreement to sell its entire interest in the BSI Group for a total of € 1.24 billion. This operation allows a greater focus on the core insurance business and will help improve the Solvency I ratio by approximately 9 percentage points. Pending the release of the necessary regulatory approvals, at September 30, 2014 the participation in BSI Group is classified as a disposal group held for sale. Following the application of IFRS 5, the operation resulted in an impairment loss in the income statement for the period of € 113 million.

Total control of CityLife acquired
At the end of July the Group reached an agreement with Allianz to become sole owner of CityLife SpA, through the acquisition of the remaining 33% of the company that manages the largest urban development project in Milan. At the same time, Allianz will acquire the Isozaki tower and part of the residential district within the CityLife area. CityLife has also reached a binding agreement with the financial institutions financing the project to redefine some terms and conditions of the original deal.

Generali to reach 100% of Generali PPF Holding (GPH)
By January 2015 Generali will reach 100% ownership of GPH - the holding company operating in Central-Eastern Europe - following the option exercised by PPF for the disposal of its remaining 24% share, in line with the agreements signed on January 8, 2013. The acquisition of the remaining share will be completed according to the terms previously announced to the market – a consideration of approximately € 1,235 million(****). The operation has therefore had a negative impact on the Solvency I ratio of 7 pps.

Resignation of the Board member Paolo Scaroni
On October 2, the Indepedent Board member Paolo Scaroni, Chairman of the Remuneration Committee and member of the Appointments and Corporate Governance Committee of Generali, resigned from the Board. The extraordinary Shareholders’ Meeting, summoned on October 14, 2014 to decide on the reinstatement or possible revocation of Mr. Paolo Scaroni from the position of member of the Company’s Board of Directors, has therefore been revoked.

Outlook

In an expected macro-economic scenario characterized by a weak GDP recovery in the Euro area as well as in the USA, while uncertain in emerging markets, and by financial markets’ volatility, Life premium income is expected to rise, confirming at the same time a careful underwriting policy and the focus on products’ value.
In the P&C segment, actions to improve the operational efficiency, both in underwriting and claims management, will continue.
In light of the actions taken, despite the presence of a still uncertain macro-economic scenario and in line with its strategic objectives, the Group foresees an improvement in the overall operating result in 2014 and will strenuously work to complete the outstanding targets in its turnaround plan.

The Manager in charge of preparing the company’s financial reports, Alberto Minali, declares, pursuant to paragraph 2, article 154 bis of the Consolidated Law on Finance, that the accounting information in this press release corresponds to the document results, books and accounting entries.

DEFINITIONS AND GLOSSARY

Annual Premium Equivalent (APE) = the sum of the initial premiums on new annual-premium policies, plus one-tenth of premiums on new single-premium policies. This is the premium basis used to compute Life new business value.

New Business Value (NBV) = expected present value, on issue, of future profits arising from new Life business in the period, net of the cost of capital.

New Business Margin (NBM) = new production divided by APE.

Net premium income = earned premiums in the period, net of cash outflows.

Combined Ratio (COR) = loss ratio plus expense ratio (acquisition expenses + general expenses) divided by retained premiums.


Operating Result was obtained by reclassifying the components making up the pre-tax profit for the year in each line of business on the basis of the specific characteristics of each segment, and taking account of the recurring expenses of the holding.
In particular, all profit and loss items were considered, with the exception of net non-operating costs, i.e. results of discontinued operations, corporate restructuring costs, amortisation of portfolios acquired directly or through acquisition of control of insurance companies or companies in the financial sector (value of business acquired or VOBA) and other net non-recurring costs. The following are also considered as non-operating items: in the Life segment, realised gains and losses and net impairment losses on investments on which the policyholder’s profit sharing is not based on; in the Non-Life segment, all realised gains and losses and net impairment losses, including gains and losses of foreign currency; in the Financial segment, realised gains and losses and net impairment losses on strategic equity investments and investments. The total operating result does not include non-operating holding costs such as interest expense on borrowings and costs arising from implementation of parent company stock option plans and stock grants.

For a description of the alternative performance measures refer to the Methodology Note of the Group Annual Integrated Report.

The Group has availed itself of the option provided for by art. 70, paragraph 8, and art. 71, paragraph 1-bis of the Issuers' Regulations to waive the requirement to publish informative documents prescribed in relation to significant mergers, demergers, capital increase by contribution of assets, acquisitions or divestitures.

THE GENERALI GROUP

The Generali Group is one of the largest global insurance providers with 2013 total premium income of €66 billion. With 77 thousand employees worldwide serving 65 million clients in more than 60 countries, the Group occupies a leadership position on West European markets and an increasingly important place on markets in Central Eastern Europe and Asia.

¹ The changes in premiums, Life Net Inflows and APE are on equivalent terms (at constant exchange rates and scope of consolidation). The changes in operating results, general account investments and assets under management on behalf of third parties exclude the BSI Group and Fata Danni from the comparative period since they were classified as discontinued operations. The balance sheet and profit and loss comparative figures have been restated accordingly.
² Net income after taxes excluding the one-off effect of discontinued operations (i.e. disposals BSI and Fata).
³ Including premiums of investments policies (€ 3,297 million).
(****) Subject to adjustments depending also on dividends paid by GPH until the closing.

APPENDIXES

(€ million) 30/09/2014 30/09/2013 Third quarter 2014 Third quarter 2013
Gross written premiums 51,292 48,716 15,931 14,124
     of which life segment 35,728 32,801 11,536 9,685
     of which property&casualty segment 15,564 15,915 4,395 4,439
Consolidated operating result 3,677 3,259 1,165 964
     of which life segment 2,300 2,071 748 591
     of which property&casualty segment 1,482 1,325 449 425
Result of the period 1,588 1,591 513 510

 
Financial highlights

(€ million) 30/09/2014 30/06/2014 31/12/2013
Total investments 423,267 411,019 381,662
Third parties asset under management 42,140 39,148 39,442
Shareholders’ equity attributable to the Group 22,538 22,125 19,778
Solvency I ratio 160% 162% 141%


(*) As anticipated above, the comparative data relating to operating results, own investments and third parties asset under management, together with the respective variations, were re-determined without BSI Group and Fata Danni, which are classified as discontinuous operations.

(€ million) 30/09/2014 30/06/2014 31/12/2013
1 INTANGIBLE ASSETS 8,525 8,540 9,352
1.1 Goodwill 6,620 6,620 7,163
1.2 Other intangible assets 1,905 1,921 2,189
2 TANGIBLE ASSETS 4,470 4,531 4,786
2.1 Land and buildings (self used) 2,695 2,725 2,879
2.2 Other tangible assets 1,775 1,806 1,907
3 AMOUNTS CEDED TO REINSURERS FROM INSURANCE PROVISIONS 4,724 4,780 4,875
4 INVESTMENTS 415,850 403,700 384,645
4.1 Land and buildings (investment properties) 12,919 12,681 12,828
4.2 Investments in subsidiaries, associated companies and joint ventures 1,309 1,287 1,407
4.3 Held to maturity investments 3,310 3,517 4,115
4.4 Loans and receivables 51,575 52,338 63,371
4.5 Available for sale financial assets 267,547 257,684 230,031
4.6 Financial assets at fair value through profit or loss 79,189 76,194 72,893
of which financial assets where the investment risk is borne by the policyholders and related to pension funds 65,636 63,490 59,116
5 RECEIVABLES 12,624 12,555 10,915
5.1 Receivables arising out of direct insurance operations 7,908 8,492 7,584
5.2 Receivables arising out of reinsurance operations 1,166 1,080 1,082
5.3 Other receivables 3,550 2,983 2,249
6 OTHER ASSETS 35,881 34,587 15,651
6.1 Non-current assets or disposal groups classified as held for sale 20,422 19,246 653
6.2 Deferred acquisition costs 1,985 1,974 1,957
6.3 Deferred tax assets 2,712 2,660 2,807
6.4 Tax receivables 3,049 3,107 2,866
6.5 Other assets 7,713 7,599 7,368
7 CASH AND CASH EQUIVALENTS 9,982 9,267 19,431
TOTAL ASSETS 492,057 477,960 449,656

 

 

(€ million) 30/09/2014 30/06/2014 31/12/2013
1 SHAREHOLDERS' EQUITY 23,441 23,696 21,405
1.1 Shareholders' equity attributable to the Group 22,538 22,125 19,778
1.1.1 Share capital and reserves 16,281 16,975 15,919
1.1.2 Reserve for unrealized gains and losses through equity 4,669 4,075 1,944
1.1.3 Result of the period 1,588 1,075 1,915
1.2 Shareholders' equity attributable to minority interests 904 1,571 1,627
2 OTHER PROVISIONS 1,711 1,691 1,768
3 INSURANCE PROVISIONS 376,884 367,704 345,752
of which insurance provisions for policies where the investment risk is borne by the policyholders and related to pension funds 50,184 49,035 45,809
4 FINANCIAL LIABILITIES 48,838 46,676 62,016
4.1 Financial liabilities at fair value through profit or loss 18,095 16,228 16,084
of which financial liabilities where the investment risk is borne by the policyholders and related to pension funds 15,508 14,572 13,227
4.2 Other financial liabilities 30,743 30,448 45,932
of which subordinated liabilities 8,133 8,085 7,612
5 PAYABLES 10,139 9,742 8,129
5.1 Payables arising out of direct insurance operations 3,510 3,604 3,190
5.2 Payables arising out of reinsurance operations 602 623 572
5.3 Other payables 6,027 5,515 4,367
6 OTHER LIABILITIES 31,044 28,451 10,586
6.1 Liabilities directly associated with non-current assets and disposal groups classified as held for sale 18,567 17,482 648
6.2 Deferred tax liabilities 3,357 3,095 2,338
6.3 Tax payables 2,049 1,605 1,607
6.4 Other liabilities 7,070 6,269 5,993
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 492,057 477,960 449,656

FROM OPERATING RESULT TO GROUP RESULT

(€ million) 30/09/2014 30/09/2013 Third quarter 2014 Third quarter 2013
Consolidated operating result 3,677 3,259 1,164 964
Net earned premiums 46,410 44,625 15,143 13,654
Net insurance benefits and claims −48,947 −45,591 −15,569 −14,391
Acquisition and administration costs −7,554 −7,747 −2,476 −2,458
Net fee and commission income and net income from financial service activities 342 292 114 87
Net operating income from financial instruments at fair value through profit or loss 3,790 2,822 812 995
Net operating income from other financial instruments 10,116 9,387 3,245 3,235
Interest income and other income 9,110 8,913 3,073 2,980
Net operating realized gains on other financial instruments and land and buildings (investment properties) 2,038 1,666 566 602
Net operating impairment losses on other financial instruments and land and buildings (investment properties) −205 −319 −96 −57
Interest expense on liabilities linked to operating activities −357 −401 −130 −126
Other expenses from other financial instruments and land and buildings (investment properties) −470 −472 −168 −164
Operating holding expenses −290 −264 −94 −99
Net other operating expenses(*) −189 −266 −10 −60
Consolidated non-operating result −912 −895 −259 −291
Net non-operating income from financial instruments at fair value through profit or loss −104 −74 −12 −36
Net non-operating income from other financial instruments(**) 97 74 80 58
Net non-operating realized gains on other financial instruments and land and buildings (investment properties) 587 348 207 173
Net non-operating impairment losses on other financial instruments and land and buildings (investment properties) −489 −275 −127 −115
Non-operating holding expenses −606 −594 −197 −199
Interest expenses on financial debt −564 −561 −181 −188
Other non-operating holding expenses −42 −33 −16 −11
Net other non-operating expenses(***) −299 −301 −130 −115
Earnings before taxes 2,764 2,364 905 673
Income taxes(*) −996 −719 −360 −115
Earnings after taxes 1,768 1,645 545 557
Profit or loss from discontinued operations −19 150 5 23
Consolidated result of the period 1,750 1,795 550 580
Result of the period attributable to the Group 1,588 1,591 513 510
Result of the period attributable to minority interests 161 205 37 70

(*) At 30 September 2014 the amount is net of operating taxes for € 48 million and of non-recurring taxes shared with the policyholders in Germany for € 22 million (at 30 September 2013  respectively for € 48 million e € 0,5 million).
(**) The amount is gross of interest expense on liabilities linked to financing activities.
(***) The amount is net of the share attributable to the policyholders in Germany and Austria.

Life segment indicators by country

(€ million) Gross written premiums Net cash inflow APE
  30/09/2014 30/09/2013 30/09/2014 30/09/2013 30/09/2014 30/09/2013
Italy 11,751 8,948 3,652 788 1,706 1,235
France 6,313 5,883 398 67 627 573
Germany 9,920 11,278 2,183 3,635 608 724
Central and Eastern Europe 1,095 1,172 359 424 103 126
EMEA 5,206 4,187 2,194 1,174 514 441
   Spain 684 724 −146 −141 82 90
   Austria 938 845 206 133 72 66
   Switzerland 761 745 390 410 39 44
   Other EMEA 2,823 1,872 1,744 773 321 241
Latin America 299 339 187 216 11 34
Asia 777 656 125 184 98 78
International Operations 368 338 20 26    
Total 35,728 32,801 9,118 6,515 3,666 3,211

Direct written premiums by line of business

(€ million) Savings and Pension Protection Unit/index linked Total
  30/09/2014 30/09/2013 30/09/2014 30/09/2013 30/09/2014 30/09/2013 30/09/2014 30/09/2013
Italy 9,907 8,418 170 157 1,673 373 11,751 8,948
France 3,778 3,468 1,191 1,287 1,039 913 6,008 5,668
Germany 4,219 5,698 3,122 3,077 2,578 2,503 9,920 11,278
Central and Eastern Europe 570 636 184 185 341 350 1,095 1,172
EMEA 1,541 1,457 666 656 2,981 2,054 5,188 4,168
   Spain 526 573 145 144 12 7 683 724
   Austria 528 454 216 197 181 180 925 831
   Switzerland 147 117 97 97 517 531 761 745
   Other EMEA 340 313 208 219 2,271 1,337 2,819 1,868
Latin America 138 162 160 176 0 0 298 338
Asia 513 414 191 174 74 69 777 656
International Operations 60 56 21 18 0 0 81 73
Total direct written premiums 20,725 20,308 5,706 5,730 8,687 6,262 35,118 32,300

 

(€ million) Operating result
  30/09/2014 30/09/2013
Italy 1,069 808
France 432 405
Germany 258 248
Central and Eastern Europe 143 129
EMEA 342 324
   Spain 88 82
   Austria 58 57
   Switzerland 111 103
   Other EMEA 85 81
Latin America 33 36
Asia 38 40
International Operations −16 81
Total 2,300 2,071

 Property and Casualty indicators by country

(€ million) Gross written premiums Operating result
  30/09/2014 30/09/2013 30/09/2014 30/09/2013
Italy 4,155 4,304 594 500
France 2,002 2,162 10 90
Germany 2,881 2,804 263 207
Central and Eastern Europe 1,446 1,498 183 161
EMEA 3,394 3,384 272 242
   Spain 962 976 131 117
   Austria 1,138 1,121 97 83
   Switzerland 619 628 50 40
   Other EMEA 675 659 −7 2
Latin America 773 843 1 24
Asia 78 77 2 −18
International Operations 835 842 157 120
Total 15,564 15,915 1,482 1,325

 Direct written premiums by line of business

(€ million) Motor Non motor Total
  30/09/2014 30/09/2013 30/09/2014 30/09/2013 30/09/2014 30/09/2013
Italy 1,865 1,975 2,210 2,256 4,074 4,231
France 719 779 1,246 1,335 1,965 2,114
Germany 1,172 1,141 1,705 1,659 2,877 2,800
Central and Eastern Europe 696 709 724 756 1,420 1,464
EMEA 1,292 1,290 2,029 2,029 3,321 3,319
   Spain 242 267 695 693 937 960
   Austria 440 430 683 672 1,123 1,102
   Switzerland 304 316 313 311 617 627
   Other EMEA 305 278 338 352 643 630
Latin America 567 646 202 193 769 838
Asia 7 9 56 58 63 67
International Operations 1 1 577 542 578 543
Total direct written premiums 6,319 6,549 8,748 8,827 15,067 15,377

 

(€ million) Personal Commercial/Industrial Accident/Health (*)
  30/09/2014 30/09/2013 30/09/2014 30/09/2013 30/09/2014 30/09/2013
Italy 513 547 1,010 954 687 755
France 748 734 498 601 0 0
Germany 1,074 1,033 237 223 393 402
Central and Eastern Europe 257 267 383 406 84 82
EMEA 809 812 667 664 552 553
   Spain 316 315 235 241 143 137
   Austria 256 251 306 304 120 118
   Switzerland 156 154 3 3 155 155
   Other 81 91 123 116 134 144
Latin America 14 24 168 148 20 20
Asia 0 6 25 26 32 26
International Operations 445 458 81 71 51 12
Total direct written premiums 3,860 3,881 3,069 3,094 1,819 1,852

 

(€ million) Combined ratio(*) Loss ratio Expense ratio
  30/09/2014 30/09/2013 30/09/2014 30/09/2013 30/09/2014 30/09/2013
Italy 89,1% 91,6% 67,9% 71,1% 21,3% 20,5%
France 105,4% 101,0% 78,0% 74,2% 27,4% 26,8%
Germany 93,5% 95,9% 65,2% 67,5% 28,3% 28,4%
Central and Eastern Europe 87,3% 89,5% 55,6% 57,4% 31,7% 32,1%
EMEA 94,5% 95,7% 66,6% 67,9% 27,9% 27,8%
   Spain 91,7% 93,8% 63,4% 65,9% 28,3% 27,9%
   Austria 94,2% 95,0% 67,3% 67,8% 26,9% 27,2%
   Switzerland 93,0% 95,1% 69,7% 70,6% 23,3% 24,5%
   Other 102,4% 101,7% 68,1% 69,2% 34,3% 32,5%
Latin America 107,7% 103,8% 69,9% 62,9% 37,9% 40,9%
Asia 96,6% 133,6% 55,6% 90,5% 41,0% 43,0%
International Operations 81,2% 90,4% 58,3% 66,1% 22,9% 24,3%
Total 93,6% 95,0% 66,8% 68,2% 26,8% 26,8%

Download

Interim Management Report as of 30 September 2014 – Press release 615 kb