Generali SpA

Welcome to the Generali Group
Please select your country

Our locations
                           

Interim Report as at March 31, 2015 – Press Release

QUARTERLY REPORT AS OF 31 MARCH 2015 – PRESS RELEASE¹

Strong first quarter delivers a further increase in operating profitability and a consistent development of total premiums

Operating result reaches € 1.3 billion, up 6%, the best quarterly result of the last 7 years, with strong growth in Life segment (+8.2%)

Premiums up to more than € 20 billion (+8.3%) driven by the Life business (+12.7%), led by exceptional increase in unit-linked products, reaching 24.5% of Life premiums. P&C premium income was stable

Life new business APE at € 1,429 million (+9.8%) driven by strong unit linked products (+39.8%)

High P&C technical margins with combined ratio at 93.3% (92.5% 1Q14), despite the higher impact of Nat Cat of 1.3 p.p.

Increase in net profit up to € 682 million (+3.3%)

Solvency I 168%; the pro-forma ratio – including the effects of the BSI sale – was 177% (164% at the end of 2014). Shareholders' equity grew by 12.5% to more than € 26 billion 

The Generali Group Chief Financial Officer, Alberto Minali, commented: “We close the first quarter of the year with particularly satisfying results in all our business segments both in terms of premium income as well as profitability. These results demonstrate the effectiveness of the initiatives we have adopted as part of the turnaround, which we have completed one year ahead of plan. We have improved the quality of our offering with products generating a high customer value, and have restructured the Group’s portfolio, where needed, helping the business focus on Generali core activities. On this robust foundation we are going to present Generali’s future strategic priorities, on May 27th”.

Milan - At a meeting chaired by Gabriele Galateri di Genola, the Assicurazioni Generali Board of Directors approved the consolidated results as of 31st March 2015.

Executive Summary

Generali closed the first quarter with improving operating results and strong production growth. Despite the difficult macroeconomic scenario and interest rates at record lows, the Group achieved an operating result of € 1.3 billion (+6.0%; € 1.2 billion 1Q14), thanks to the on-going implementation of strategic initiatives and the favourable trend on the financial markets.

The Life segment was the key driver behind the operating performance, with an operating result rising to € 823 million (+8.2%) thanks to the profitability on premium income and excellent investment management. In the P&C segment, the operating result was € 505 million, a decrease of € 24 million (-4.6%), due to the higher impact of catastrophe-related claims in Italy and the center of Europe (Germany and Austria) for approximately € 70 million.

First-quarter net profit came to € 682 million (€ 660 million 1Q14; +3.3%); without taking into account the one-off effect of discontinued operations, net profit increased by 10%.

The business initiatives launched over the last year and the strength of its distribution model enables the Group to record a strong growth in total premiums in the first quarter of 2015 to € 20.1 billion (+8.3%; € 18.4 billion 1Q14). The Life business was a particularly important premium driver (+12.7%), with strong growth in all main markets – Italy (+30.9%), Germany (+9%), France (+13.3%) and CEE (+6.5) – stemming from the excellent performance of unit-linked policies (+24.6%). Premium income in the P&C segment was steady at € 6.5 billion, with a positive performance of Non-Motor lines.

The Group’s business growth was accompanied by high profitability in both segments. In Life, new business value (NBV) was € 322 million, with high margins (NBM) at 22.5% (25.2% 1Q14). In P&C, technical margins remained at the same level of 2014, with a combined ratioat 93.3% (+0.7 p.p.), despite the higher impact of catastrophe-related claims for 1.3 p.p..

The performance of the financial markets in the first quarter enabled the Group to strengthen its capital position even further, with the Solvency I ratio at 168% (+12 p.p.; 156% FY 2014). Taking account of the sale of BSI, the pro-forma ratio came to 177%.
The Group shareholders' equity rose to € 26.1 billion (+12.5%) from € 23.2 billion at 31 December 2014.

Life segment: strong premium growth and excellent operating profitability

  • Operating result at € 823 million (+8.2%), despite record-low interest rates, driven by the growth in the net investment result
  • Premiums come to €13.7 billion (+12.7%); excellent performance in Italy (+30.9%) and France (+13.3%). Progress on all business lines
  • Net cash inflow amounts to € 4.3 billion (+49.1%)
  • Life new business APE at € 1,429 million (+9.8%) driven by strong unit linked sales (+39.8%)
  • New business value (NBV) amounts to € 322 million (€ 320 million 1Q14), with new business margins (NBM) at 22.5% (25.2% 1Q14) among the highest in the industry

Life premium income rose to € 13,666 million² (+12.7%), thanks to the growth of all business lines. Specifically, unit-linked contracts show significant growth (+24.6%) reaching 24.5% of direct premiums, in line with the strategy to focus on products with low capital absorption. The performance of the other business lines was positive too: savings lines improved by 9.4% and protection policy products by 9.9%.
Excellent results achieved in Italy, with a premium income of € 4,913 million, showing an increase of 30.9%, driven by strong growth in savings policies (+17.8%) and unit-linked products, which almost tripled compared to last year. Given this performance, the business mix continues to rely on these products, whose share of the overall portfolio has doubled, reaching 17.3% of total premiums. Unit-linked policies also drove growth in the Group’s other main countries: total premiums in France rose by 13.3%, thanks also to the positive contribution from savings policies, while Germany and the CEE countries reported improvements of 9% and 6.5% respectively and supported by the positive performance in protection policy products.
Premiums in the EMEA area overall decreased by 13.3% due to the contraction in Ireland, whose premiums in the first quarter of last year were characterized by a strong surge in single-premium products. Conversely, a very positive performance in Austria (+13.4%) and Switzerland (+15.6%) was noted in the the EMEA area, thanks to the contribution of savings policies.

Net cash inflow – the difference between collected premiums and outflows for payments and surrenders – amounted to € 4,306 million, an improvement of 49.1%, which was substantially driven by the strong performances of Italy, France and Germany.

New business in terms of APE grew by 9.8% to € 1,429 million driven by the excellent development of unit linked (+39.8%) and protection business (+27.8%) developments. Strong progress in single premiums (+24.6%) as a result of positive performance in the Group’s three core markets of Italy, France and Germany; annual premiums, which accounted for 54.5% of the first quarter’s new business, were stable.
Despite the worsened financial conditions due to the negative impact of the decline in interest rates, the NBM profitability (margin on APE) remained at good level (22.5%), only slightly declining (-2,9 p.p.) following the traditional savings business trend, partially mitigated by a re-calibration of guarantees for policyholders and the improved business mix.
New business value was € 322 million (-2.6%).

The operating result of the Life segment was € 823 million, an increase of 8.2% (€ 761 million 1Q14). In detail, this excellent performance benefitted from the growth in the net investment result, thanks to the increased contribution of the current income and net realised gains on bonds taking advantage of the positive trend of the financial markets. The technical margin was also a positive contributing factor, sustained by net cash inflow, counterbalanced by the increase in acquisition and administration expense, in line with the effect of written premiums.

(in millions of euro) 31/03/2015 31/03/2014
Operating result 823 761
Technical margin 1,385 1,363
Net investment result 678 538
Insurance management expense and other operating items -1,240 -1,141

P&C segment: high technical profitability and solid premium income

  • Operating result at € 505 million (-4.6%), reflecting the higher impact of catastrophe events in Italy and centrer of Europe for approximately € 70 million
  • Despite the effect of catastrophe-related claims, the combined ratio stood at 93.3% (92.5% 1Q14)
  • Premiums steady at € 6,483 million

Premiums in the P&C segment totalled € 6,483 million (+0.1%) remaining at the same levels of the same period of last year, despite the still challenging market situation. Performance varied among the Group countries. Downturns were reported in Italy (-3.9%) and France (-4%), while premium remained practically unchanged in Germany (-0.9%); CEE countries (+2.6%) and the EMEA area (+1.6%) reported a positive performance.
Premiums in the Motor line decreased by 2.6%, largely as a result of the performances in Italy and France (down by 9.2% and 7.9% respectively); Italy was affected by competitive market pressures, while the slowdown in France reflected the effect of portfolio restructuring measures, largely with regard to fleets. A small improvement was achieved in Non-Motor lines (+0.9%), which accounted for 58% of the direct P&C policy, with differences in performance among the main Group markets.

The operating result in the P&C segment, at € 505 million, was down by 4.6%, reflecting the impact of catastrophe events of approximately € 100 million, specifically the storms in Italy and the center of Europe (Germany and Austria) in March. The impact of catastrophe events in 1Q14 had been lower at approximately € 30 million. The effect of catastrophe events led to a reduction in the technical result; this was counterbalanced only in part by the increase in the investment result and other components in the P&C operating result.

The overall combined ratio (CoR) was 93.3% (+0,7p.p.): the loss ratio continued to decrease to 65.3% (-0.2% p.p.), despite the impact of catastrophes of almost € 100 million, equivalent to 1.9 p.p. (0.6 p.p. in 1Q14.). In particular, the current year loss ratio not related to nat cat claims decreased by 1.4 p.p. thanks to the achieved improvement largely in Non-Motor lines. The prior-years contribution was stable at 4.2%, in the context of the customary Group reserving policy. The expense ratio grew to 28% (+0.9% p.p.) as a result of higher acquisition and administration expenses in Germany and the increase in the expense ratio in France after the reduction in premiums.
Specifically, the combined ratio further improved in Italy to 89.3% (-1.3 p.p.) and in France to 100.3% (-2.9 p.p.). Germany was stable at 93.8% (-0.2 p.p.). The CoR of the CEE countries was 83.7% (+1.9 p.p.), confirming the area as the Group’s best performer in terms of technical profitability.

(in millions of euro) 31/03/2015 31/03/2014
Operating result 505 529
Technical margin 288 345
Net Investment result 234 229
Other operating items -18 -45

Holding and other businesses segment

The “Holding and other businesses” segment includes the activities carried out by Group companies in the financial advisory and asset management sector (financial segment), the costs incurred for the management, coordination and financing of the business, and other activities that the Group considers subsidiary to its core insurance business.

The overall operating result of the “Holding and other businesses” segment was € 54 million (€ 24 million 1Q14). The financial segment made a very positive contribution, with an important increase in its operating result to € 149 million (€ 95 million 1Q14) thanks to the support of Banca Generali. The growth of the financial segment was largely attributable to net operating income from financial activities, which benefitted from significant over-performance commissions.
Overall performance also reflected the increase in holding operating costs at € -116 million (€ -96 million at 1Q14) for investments in a number of strategic Head Office IT upgrade projects, relating in part to the transition to the new Solvency II regime.

From the operating result to Group earnings

The non-operating result was € -206 million, an improvement from the same period of last year (€ -224 million in 1Q14).
Specifically, the result for investments rose to € 140 million (€126 million in 1Q14) due to higher net realised gains on the bond portfolio assisted by the favourable situation on the financial markets.
Non-operating holding costs decreased to € -187 million (€ -209 million in 1Q14) given the reduction in interest expenses on financial debt from € -196 million to € -172 million in the first quarter of 2015; the decrease was driven by the debt-optimisation measures taken by the Group in 2014.
Net other non-operating costs totalled € -159 million (€ -141 in 1Q14). They consisted largely of € -32 million for amortisation of the acquisitions portfolio (€ -35 million in 1Q14), € -39 million for restructuring costs (€ -16 million in 1Q14) and € -49 million for other non-recurring provisions (€ -45 million in 1Q14).

Consequently, earnings before tax increased to € 1,120 million (+9%).

The tax rate was 29.2%, substantially in line with 2014 (29.4% in 1Q14). The result of discontinued operations was € -20 million (€ +22 million in 1Q 2014) and includes the price adjustment and legal expenses relating to the sale of BSI. Earnings attributable to minority interests, corresponding to a minority rateof 10.5% (9.8% in 1Q14), reflected the excellent performance of Banca Generali.

Earnings for the period attributable to the Group were therefore € 682 million, an increase of 3.3% from € 660 million in 1Q14.

Shareholders' equity and Group Solvency

Capital and reserves attributable to the Group amounted to € 26,098 million at 31 March 2015 compared to € 23,204 million at 31 December 2014.

The 12.5% increase arose largely as follows:

  • from net gains of € 2,083 million on available-for-sale financial assets thanks to the favourable trend on the financial markets;
  • from the result of the period attributable to the Group for € 682 million;
  • from the change of € 391 million in the reserve for currency translation differences, due in particular to the appreciation of the Swiss Franc.

The above effects were partly offset by actuarial losses of € 250 million on pension liabilities, arising from low interest rates.

The Group Solvency I ratio at 31 March 2015 was 168% (156% at 31 December 2014). Including the sale of BSI, the pro-forma ratio was 177%.
The required solvency margin was € 19.1 billion (€ 18.6 billion at 31 December 2014), largely owing to the exchange-rate effect arising from the appreciation of the Swiss Franc and, to a lesser extent, to the growth of the Life business. The available margin was € 32 billion (€ 29 billion at 31 December 2014), mainly thanks to earnings for the period and the positive trend in gains or losses on available-for-sale financial assets. The surplus was therefore € 12.9 billion (€ 10.4 billion at 31 December 2014).

Group investment policy

(in € million) 31/03/2015 % of total 31/12/2014 % of total
Equity instruments 19,493 5.1% 17,610 4.8%
Fixed-income instruments 337,410 87.7% 318,884 87.3%
Investment property 14,946 3.9% 14,872 4.1%
Other investments 3,295 0.9% 3,662 1.0%
Cash and cash equivalents 9,405 2.4% 10,223 2.8%
Total investments  384,549 100.0%  365,250 100.0% 
Financial assets relating to unit- and index-linked contracts 74,733   67,707  
Total investments  459,282   432,957  

Group total Assets under Management rose by 6.5% to € 510.9 billion at 31 March 2015. Specifically, total investments amounted to € 459.3 billion, while third-party assets under management amounted to € 51.6 billion.
Total investments, at € 384.5 billion, were up 5.3%, an increase largely driven by the bond portfolio, which benefited from the increase in value determined by interest-rate trends, and from the reinvestment of the period’s premium income in corporate in particular instruments. The value of the equity portfolio also increased, mainly due to the price effect. Real estate investments were substantially stable.
Cash and cash equivalents decreased, in line with the Group investment policy, which, as in the previous financial year, will continue to be based on an asset allocation strategy aimed at consolidating current margins and minimising liquidity.

The investment strategy for fixed-income investments aims at portfolio diversification, in both government bonds, where the European core rates are at record lows, and corporate bonds, including private placements and guaranteed loans. The objective is to ensure adequate returns for policyholders and a satisfactory return on capital, while maintaining a controlled risk profile.
Equity exposure will be kept substantially stable, through geographical and sector rotation targeting regions and sectors with higher growth than Europe.

New real estate investments will selectively focus on new geographical areas such as Asia, the UK and Eastern Europe, in order to improve the overall portfolio diversification. The Group will also implement a more active portfolio management approach to improve the overall profitability.

Significant events within the period and after 31 March 2015

Generali finalizes the acquisition of Generali PPF Holding
In January, the Generali Group reached 100% ownership of Generali PPF Holding B.V. (GPH) by acquiring the remaining 24% minority shareholding held by PPF Group, in line with the agreements signed in January 2013. With the acquisition of the full ownership of GPH, the holding company operating in Central Eastern Europe and one of the largest insurers on that market, the company changed its name to Generali CEE Holding B.V.
The acquisition of the remaining shares of GPH was completed under the terms previously announced to the market, for a final price of € 1,245.5 million.

S&P withdraws rating at Generali’s request
On 13 February 2015, at Generali’s request, Standard & Poor’s withdrew its ratings on the Group. Consequently, Generali will no longer have an S&P rating. The decision, taken after a thorough strategic review including consultation with investors and other stakeholders, is based on the inflexibility of S&P’s criteria to take into account the significant improvement of the Group’s financial solidity achieved in the last two years. Furthermore, the mechanical link to the sovereign rating applied by S&P does not give merit to the Group’s high level of diversification nor the benefits of its broad geographical presence. In line with industry norms, Generali will remain rated by three major rating agencies: Moody’s (Baa1), Fitch (A-) and A.M. Best (A).

Generali, BSI reaches agreement with US Department of Justice
Generali announced that BSI, the Swiss private bank, had reached a Non-Prosecution Agreement (NPA) with the U.S. Department of Justice (DOJ), under which it resolved liability arising from its legacy US private banking business. BSI, which paid an amount of USD 211 million, was the first “Category 2” bank to reach an NPA agreement with the DOJ.
The agreement with the American Department of Justice is a further major step towards the finalisation of the BSI sale process, which will occur after receiving the required regulatory approvals.

Generali strengthens its international management team
In April, Generali strengthened its governance with the arrival of two new managers joining the Group to lead the Asia and the Americas areas respectively. Jack Howell is the new Asia Regional Officer responsible for Generali’s activities in China, Hong Kong, India, Indonesia, Japan, Philippines, Thailand, Vietnam, Malaysia and Singapore. In China, Generali is one of the leading foreign Life insurers. Jack Howell assumes the role held by Sergio Di Caro, who as from 1st January 2015 took over as Head of Generali Employee Benefits, the global market leader in this segment.
Antonio Cassio dos Santos joined the Group as Americas Regional Officer. Generali is amongst the leading foreign insurers in Latin America, operating in Brazil, Argentina, Colombia, Guatemala, Ecuador and Panama. The Group is also active in Northern America with the Generali U.S. Branch. Meanwhile, Jaime Anchustegui, previously LatAm Regional Officer, has been appointed EMEA Regional Officer, the area covering twelve markets between Europe, North Africa and the Middle East. Anchustegui succeeds Giovanni Liverani who - as announced in December 2014 - has been appointed CEO of Generali Deutschland as from 1st April.

Outlook

In a macroeconomic scenario that expects a return to GDP growth in the advanced economies, although with record low interest rates , Group Life premiums will keep reflecting a prudent underwriting policy and a stronger focus on low capital absorption and higher value products. Initiatives will continue to enhance the in-force portfolio and to drive selective growth of some business lines, such as protection policy products and unit-linked products.
In the P&C segment, the Group will continue in 2015 to implement measures relating to underwriting policy and claims management.
Given the presence of an uncertain macro-economic scenario and in line with its strategic objectives, in 2015 the Group will continue to undertake all actions aimed at improving the overall operating result. 

The Board of Directors verified that Mr. Flavio Cattaneo – appointed by the shareholders meeting held on April 30 – meets the independence requirements pursuant to Article 148, paragraph 3 of the Consolidated Financial Intermediation Act, as required by Articles 147-ter, paragraph 4, and 147-quater of the Consolidated Financial Intermediation Act, as well as the ones indicated by rules for insurance companies; furthermore the Board acknowledged the declaration of non -independence pursuant to Article 3 of the Self-Regulatory Code of Conduct for italian listed companies issued by Mr. Cattaneo himself at the time of his application in view of the aforementioned shareholders meeting.

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 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 earned premiums net of reinsurance.

Current year loss ratio = the ratio between:

  • current year incurred claims (excluding nat cat claims) + related claims management costs net of recoveries and reinsurance to
  • earned premiums net of reinsurance

Prior- years loss ratio = the ratio between:

  • prior years incurred claims + related claims management costs net of recoveries and reinsurance to
  • earned premiums net of reinsurance

Solvency I ratio = the ratio between available margin and required margin.

Equivalent consolidation area = refers to equivalent consolidation scope.

Equivalent terms = refer to equivalent exchange rates and equivalent consolidation scope. 

Operating result was obtained by reclassifying the components making up earnings before tax in each line of business on the basis of the specific characteristics of each segment, and taking account of recurring expense of the holding.
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 holding and other activities segment (value of business acquired or VOBA) and other net non-recurring costs. In the Life segment, the following are also considered as non-operating items: realised gains and losses on investments not considered in determining profits attributed to policyholders and net measurement losses that do not contribute to the formation of local technical reserves but exclusively in determining the deferred liability to policyholders for amounts not relating to policyholders and those on free assets. In the P&C segment, the following are considered as non-operating items: all realised and measurement gains and losses, including exchange-rate gains and losses. In the holding and other activities segment, the following are considered as non-operating items: realised gains and losses and non-recurring net measurement losses. The total operating result does not include non-operating holding costs such as interest expense on borrowings and costs arising from parent 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 2014 total premium income of more than € 70 billion. With 78,000 employees worldwide serving 72 million insured persons 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 Changes in premiums, net premium income and Annual Premium Equivalent (APE) are presented in equivalent terms (at constant exchange rates and scope of consolidation). Changes in operating results, own investments and third-party assets under management are presented excluding from the comparative period the BSI Group, classified as a discontinued operation, and the sold Argentinian companies. The comparative financial data and results of operations have been redetermined on a consistent basis.
² Including premiums relating to investment policies for € 926 million.

APPENDIXES

Economic highlights
 

(€ million) 31/03/2015 31/03/2014
Gross written premiums 20,149 18,440
     of which life segment 13,666 12,025
     of which property&casualty segment 6,483 6,416
Consolidated operating result 1,326 1,251
     of which life segment 823 761
     of which property&casualty segment 505 529
Result of the period 682 660


Financial highlights

(€ million) 31/03/2015 31/12/2014
Total investments 459,282 432,957
Third parties asset under management 51,582 46,716
Shareholders’ equity attributable to the Group 26,098 23,204
Solvency I ratio 168% 156%


(*) 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, classified as discontinuous operations, and the Argentinian companies sold.

(€ million) 31/03/2015 31/12/2014
1 INTANGIBLE ASSETS 8,639 8,601
1.1 Goodwill 6,670 6,617
1.2 Other intangible assets 1,969 1,983
2 TANGIBLE ASSETS 4,731 4,610
2.1 Land and buildings (self used) 2,888 2,797
2.2 Other tangible assets 1,843 1,814
3 AMOUNTS CEDED TO REINSURERS FROM INSURANCE PROVISIONS 4,453 4,378
4 INVESTMENTS 455,503 427,191
4.1 Land and buildings (investment properties) 12,697 12,628
4.2 Investments in subsidiaries, associated companies and joint ventures 1,360 1,284
4.3 Held to maturity investments 2,376 2,940
4.4 Loans and receivables 50,211 50,780
4.5 Available for sale financial assets 297,365 276,498
4.6 Financial assets at fair value through profit or loss 91,494 83,061
of which financial assets where the investment risk is borne by the policyholders and related to pension funds 74,733 67,707
5 RECEIVABLES 14,360 12,057
5.1 Receivables arising out of direct insurance operations 8,414 7,462
5.2 Receivables arising out of reinsurance operations 1,086 1,143
5.3 Other receivables 4,859 3,452
6 OTHER ASSETS 40,569 35,973
6.1 Non-current assets or disposal groups classified as held for sale 23,510 21,304
6.2 Deferred acquisition costs 1,961 1,958
6.3 Deferred tax assets 4,253 2,715
6.4 Tax receivables 2,838 2,825
6.5 Other assets 8,007 7,172
7 CASH AND CASH EQUIVALENTS 7,676 8,508
TOTAL ASSETS 535,932 501,318

 

(€ million) 31/03/2015 31/12/2014
1 SHAREHOLDERS' EQUITY 27,239 24,185
1.1 Shareholders' equity attributable to the Group 26,098 23,204
1.1.1 Share capital 1,557 1,557
1.1.2 Other equity instruments 0 0
1.1.3 Capital reserves 7,098 7,098
1.1.4 Revenue reserves and other reserves 9,113 7,571
1.1.5 (Own shares) -8 -8
1.1.6 Reserve for currency translation differences 152 -239
1.1.7 Reserve for unrealized gains and losses on available for sale financial assets 8,581 6,498
1.1.8 Reserve for other unrealized gains and losses through equity -1,077 -943
1.1.9 Result of the period 682 1,670
1.2 Shareholders' equity attributable to minority interests 1,141 981
1.2.1 Share capital and reserves 868 706
1.2.2 Reserve for unrealized gains and losses through equity 194 93
1.2.3 Result of the period 80 182
2 OTHER PROVISIONS 1,753 1,751
3 INSURANCE PROVISIONS 410,435 386,202
of which insurance provisions for policies where the investment risk is borne by the policyholders and related to pension funds 58,044 51,674
4 FINANCIAL LIABILITIES 49,455 48,794
4.1 Financial liabilities at fair value through profit or loss 20,963 18,374
of which financial liabilities where the investment risk is borne by the policyholders and related to pension funds 16,952 15,886
4.2 Other financial liabilities 28,492 30,420
of which subordinated liabilities 8,422 8,315
5 PAYABLES 10,018 9,379
5.1 Payables arising out of direct insurance operations 3,312 3,553
5.2 Payables arising out of reinsurance operations 693 557
5.3 Other payables 6,013 5,270
6 OTHER LIABILITIES 37,033 31,007
6.1 Liabilities directly associated with non-current assets and disposal groups classified as held for sale 21,729 19,700
6.2 Deferred tax liabilities 5,833 3,706
6.3 Tax payables 2,142 1,420
6.4 Other liabilities 7,330 6,181
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 535,932 501,318


FROM OPERATING RESULT TO GROUP RESULT

(€ million) 31/03/2015 31/12/2014
Consolidated operating result 1,326 1,251
Net earned premiums 17,572 15,497
Net insurance benefits and claims -22,821 -16,089
Acquisition and administration costs -2,706 -2,547
Net fee and commission income and net income from financial service activities 174 108
Operating investment result 9,326 4,469
Net operating income from financial instruments at fair value through profit or loss 5.571 958
Net operating income from other financial instruments 3,754 3,512
Interest income and other income 2,913 2,858
Net operating realized gains on other financial instruments and land and buildings (investment properties) 1.259 909
Net operating impairment losses on other financial instruments and land and buildings (investment properties) -158 -14
Interest expense on liabilities linked to operating activities -114 -104
Other expenses from other financial instruments and land and buildings (investment properties) -145 -138
Operating holding expenses -116 -96
Net other operating expenses(*) -103 -91
Consolidated non-operating result -206 -224
Non operating investment result 140 126
Net non-operating income from financial instruments at fair value through profit or loss -44 -67
Net non-operating income from other financial instruments(**) 185 193
Net non-operating realized gains on other financial instruments and land and buildings (investment properties) 258 252
Net non-operating impairment losses on other financial instruments and land and buildings (investment properties) -73 -60
Non-operating holding expenses -187 -209
Interest expenses on financial debt -172 -196
Other non-operating holding expenses -15 -13
Net other non-operating expenses(***) -159 -141
Earning before taxes 1,120 1,027
Income taxes(*) -338 -318
Earnings after taxes 781 709
Profit or loss from discontinued operations -20 22
Consolidated result of the period 761 732
Result of the period attributable to the Group 682 660
Result of the period attributable to minority interests 80 72


(*) At 31 March 2015 the amount is net of operating taxes for € 16 million and of non-recurring taxes shared with the policyholders in Germany for € 0.4 million (at 31 March 2014 respectively for € 16 million and € 6 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
  31/03/2015 31/03/2014 31/03/2015 31/03/2014 31/03/2015 31/03/2014
Italy 4,913 3,754 2,143 1,070 590 571
France 2,335 2,060 208 -224 303 222
Germany 3,688 3,385 1,064 821 238 204
Central and Eastern Europe 397 375 74 130 42 32
EMEA 1,732 1,951 588 949 185 198
   Spain 261 271 5 -50 32 31
   Austria 353 312 12 54 38 26
   Switzerland 321 243 164 116 20 13
   Other EMEA 796 1,125 406 829 95 128
LatAm 77 57 43 26 6 4
Asia 449 371 156 63 66 38
International Operations 74 73 29 23    
Total 13,666 12,025 4,306 2,857 1,429 1,270

 

Direct written premiums by line of business

(€ million) Savings and Pension Protection Unit/index linked Total
  31/03/2015 31/03/2014 31/03/2015 31/03/2014 31/03/2015 31/03/2014 31/03/2015 31/03/2014
Italy 4,000 3,395 62 64 852 294 4,913 3,754
France 1,322 1,218 416 404 490 341 2,228 1,963
Germany 1,376 1,465 1,325 1,153 987 766 3,688 3,385
Central and Eastern Europe 185 198 65 61 146 116 397 375
EMEA 615 532 308 319 805 1,097 1,728 1,947
   Spain 176 190 78 75 7 5 261 270
   Austria 216 176 74 70 60 63 351 309
   Switzerland 102 44 38 34 181 166 321 243
   Other EMEA 121 122 118 139 557 863 795 1,124
LatAm 7 6 70 50 0 0 77 56
Asia 291 264 130 86 29 21 449 371
International Operations 36 27 12 8 0 0 47 35
Total direct written premiums 7,831 7,104 2,387 2,146 3,310 2,636 13,528 11,886

 

(€ million) Operating result
  31/03/2015 31/03/2014
Italy 399 339
France 145 138
Germany 90 74
Central and Eastern Europe 60 53
EMEA 97 134
   Spain 30 28
   Austria 19 22
   Switzerland 32 46
   Other EMEA 15 37
LatAm 13 -4
Asia 38 15
International Operations -17 13
Total 823 761


Property and Casualty indicators by country

 

(€ million) Gross written premiums Operating result
  31/03/2015 31/03/2014 31/03/2015 31/03/2014
Italy 1,407 1,464 160 175
France 834 869 33 16
Germany 1,447 1,460 99 78
Central and Eastern Europe 526 515 74 76
EMEA 1,638 1,553 100 97
   Spain 400 388 33 46
   Austria 498 488 45 37
   Switzerland 473 421 17 15
   Other EMEA 267 256 5 -1
LatAm 318 274 -10 15
Asia 33 24 -2 -1
International Operations 281 257 51 73
Total 6,483 6,416 505 529



Direct written premiums by line of business

 

(€ million) Motor Non motor Total
  31/03/2015 31/03/2014 31/03/2015 31/03/2014 31/03/2015 31/03/2014
Italy 615 677 772 771 1,387 1,448
France 260 283 552 570 812 852
Germany 695 707 750 751 1,445 1,458
Central and Eastern Europe 249 243 268 265 517 508
EMEA 620 590 983 938 1,602 1,527
   Spain 94 87 288 289 383 375
   Austria 185 183 305 303 491 486
   Switzerland 239 218 232 202 472 420
   Other EMEA 101 102 156 145 258 246
LatAm 229 200 87 74 317 274
Asia 3 2 23 18 26 21
International Operations 0 0 189 182 189 182
Total direct written premiums 2,671 2,702 3,624 3,569 6,295 6,271

 

(€ million) Combined ratio* Loss ratio Expense ratio
  31/03/2015 31/03/2014 31/03/2015 31/03/2014 31/03/2015 31/03/2014
Italy 89.3% 90.6% 68.8% 70.2% 20.5% 20.4%
France 100.3% 103.1% 73.2% 77.0% 27.0% 26.1%
Germany 93.8% 94.0% 64.5% 65.6% 29.3% 28.5%
Central and Eastern Europe 83.7% 81.8% 51,8% 49.7% 31.9% 32.1%
EMEA 95.0% 94.9% 66.7% 66.3% 28.3% 28.6%
   Spain 95.3% 91.7% 67.2% 63.4% 28.1% 28.4%
   Austria 93.4% 94.3% 65.8% 65.9% 27.6% 28.4%
   Switzerland 93.5% 94.9% 69.6% 72.2% 23.9% 22.7%
   Other EMEA 99.7% 102.5% 64.5% 66.9% 35.2% 35.7%
LatAm 106.4% 102.0% 65.4% 64.4% 41.1% 37.7%
Asia 112.7% 110.0% 63.8% 63.6% 48.9% 46.4%
International Operations 88.7% 76.2% 63.8% 53.5% 24.9% 22.6%
Total 93.3% 92.5% 65.3% 65.5% 28.0% 27.0%

 
(*) CAT claims impacted on the Group combined ratio for 1.9 pps of which 2.6 pps in Italy,5.9 pps in Germany and 1.7 pps in Austria (At 31 March 2014 CAT claims impacted on the Group combined ratio for 0.6 pps, of which 0.9 pps in Italy and 2.7 pps in France).

Download

Interim Management Report as of 31 March 2015 – Press release 602 kb