Consolidated Results as of 31 December 2014 - Press Release

12 March 2015 - 07:30 price sensitive


2014 results mark early conclusion of Generali turnaround

All targets delivered one year in advance

Overall operating result rose to more than €4.5 bln (+10.8%), with excellent performances in both business segments

Operating RoE increased to 13.2% (vs 2015 target 13%)

Net result €1.7 bln (€1.9 bln FY13), which includes €0.4 bln of extraordinary one-offs (BSI sale and Ingosstrakh impairment); adjusted net result €2.1 bln

Proposed dividend per share of €0.60 (+33%; €0.45 FY13)

Gross written premiums exceeding €70 bln (+7.7%) thanks to growth of unit linked products in the Life segment

Continued focus on the Group’s solidity; Solvency I at 164%² (vs 2015 target 160%)

The Generali Group CEO, Mario Greco, said: “The transformation of Generali has been achieved, and on behalf of all our employees, I am proud to confirm that the targets set out in January 2013 have been met one year in advance. With this turnaround we have been able to generate €18 billion for our shareholders and are confident that we will deliver further value in the future. Today, Generali is focused on its core insurance business, more disciplined in the management of its balance sheet and capital, and more simple and transparent in its geographic presence and governance. The financial performance of our business over the past year, despite an unprecedented challenging market environment, reflects the commitment of our people around the world to keep our promise to customers and all of our stakeholders. Generali has never been on a more solid footing and ready to compete and win in today’s highly competitive markets. We are now preparing to begin a new chapter in our history and we look forward to presenting the next phase of our strategy in May”.

Milan - At a meeting chaired by Gabriele Galateri di Genola, the Generali Board of Directors has approved the consolidated financial statements and the parent company’s draft financial statements for 2014.


The Group closed the financial year with strong growth, completing its three-year 2015 turnaround plan, one year ahead of schedule. These strategic initiatives have enabled Generali to improve its profitability and rebuilt its capital strength.

Despite the challenging macroeconomic scenario and low interest rates, the Group profoundly transformed its financial and business profile in just two years. The implementation of the strategic plan also allowed the company to exceed its 2015 main profitability target one year ahead of schedule: operating RoE reached 13.2% at the end of the year (vs 13% 2015 target; 11.7% FY13).

The significant growth in operating performance in the Life segment (+15.2%) as well as in the P&C segment (+13.1%) pushed the overall operating result up to €4,508 million (+10.8%; €4,071 million FY13).

The net result at €1,670 mln (€1,915 mln FY13) includes approx. €400 million of extraordinary one-offs, taking into account the full charge of the BSI disposal and the impairment of Ingosstrakh. The adjusted net result without considering these extraordinary items is €2.1 billion.

On the production side, the launch of new products and business initiatives grew total premiums to €70,430 mln (+7.7%; €65.9 million FY13).The increasing results from the Life segment, was particularly successful in Italy, France and in EMEA.Growth has resumed in all lines of business and unit linked contracts have experienced a strong developed (+43%) in line with the strategy to focus on products with low capital absorption.New business in terms of APE has also showed a significant increase up to €5,163 million (+14.2%), accompanied by high profitability. New business value (NBV) experienced an increase of 33.7%.

In the P&C segment, premiums remained broadly stable (€20.617 million; +0.2%) despite the difficult economic situation that persists in several markets. The Group’s P&C business continues to be supported by high technical profitability with a combined ratio further improved to 93.8% (-1.9 p.p.) thanks to lower loss ratio and cost containment. The reserve ratio has increased to 154% (150% FY13).

These results are accompanied by a strengthened capital position which the Group continues to hold in a sharp focus. Shareholders’ equity grew 17% to €23.204 bln, while the Solvency I ratio has exceeded the 2015 target (160%), reaching 164% (on a pro-forma basis including the impact of the sale of BSI; 141% FY13).

DIVIDEND PER SHARE € 0.60 (+33%)

The dividend per share, to be proposed to the AGM, is €0.60; €0.15 higher (+33%) than last year (€0.45 FY13). The Payout ratio grew up to 55,9% from 36.6% in the the previous year.

The total dividend on outstanding shares amounts to €934.1 million. The dividend will be paid on 20th May 2015 and the record date will be 19th May 2015. Shares will trade ex-dividend as from 18th May 2015.


  • Excellent premium development (+11.2%), particularly in Italy (+30.7%); France (+10%) and EMEA countries (+21.1%)
  • New business in terms of APE growing (+14.2%), with NBM rising up to 24%

The operating result of the life segment grew by 15.2% to €2,978 million (€2,585 million FY13), driven by business profitability and increase in total premiums, as well as by the favourable trend in the net investment result and cost containment. Despite a challenging regulatory framework and the low yields environment, the result is almost back to the levels prior to the beginning of the financial crisis in 2008.

Life segment – Operating result
€ mln 31/12/2014 Δ
Italy 1,346 +30.7%
France 560 +6.1%
Germany 376 +10.5%
CEE countries 144 -16.2%
EMEA 470 +15.0%
LatAm 4 n.m.
Asia 49 +29.0%
International Operations 30 -56.5%
Total 2,978 +15.2%

The Group's premium income grew by 11.2% to €49,813 million driven by the positive performance in all business lines, and particularly supported by the strong increase in unit linked contracts (+43%). Savings lines (+4%) and protection policy products (+2.5%) also recorded a positive development. Italy’s contribution was highly valuable, with growth of more than 30% driven by the increase in single premiums (+60.5%). Premiums in France also picked up (+10%), thanks to actions undertaken on the portfolio, with excellent performances from savings products and unit linked policies. Business in EMEA countries grew as well (+21.1%) while, following a planned reduction in single policies (-25.9%) linked to the current low interest rates, Germany saw a reduction in premiums (-8.8%). Excellent performances were also recorded in LatAm (+26.6%), Asia (+19.1%) and International Operations (+11.4%).

Compared to last year, new business in terms of APE grew steadily (+14.2%), which was mainly driven by single premiums (+27.2%). The performances in terms of APE in Italy (+62.4%) and France (+17.8%) have been particularly positive. New business value (NBV) rose to €1,239 million (+33.7%), with improved profitability thanks to margins (NBM) equal to 24% (21% in 2013).

Life net inflows – the difference between payments received and payouts made – grew appreciably to €12,747 million, as the result of the positive trend in total premiums.


  • Technical profitability increased across all the Group's core markets. CEE countries confirm improved CoR at 87.7%
  • Premiums stable at €20.6 billion (+0.2%). Good performances in Germany and CEE countries

The P&C segment confirmed its high profitability with a growth in operating income (+13.1%) to €1,831 million (€1,619 FY13), above all due to the performance of the technical result.

P&C segment – Operating result and CoR
€ mln Operating result CoR
  31/12/2014 Δ 31/12/2014 Δ
Italy 720 +20.8% 89.2% -3.2 pp
France 32 n.m. 104.9% -0.6 pp
Germany 366 +25.2% 92.6% -3.1 pp
CEE countries 239 +1.1% 87.7% -1.0 pp
EMEA 402 +7.8% 95.5% -0.3 pp
LatAm -65 n.m. 113.3% +12.4 pp
Asia 3 n.m. 97.6% -22.4 pp
Int. Operations 133 +92.6% 83.8% -6.9 pp
Total 1,831 +13.1%  93.8% -1.9 pp

Combined ratio (CoR) further improved to 93.8% (-1.9 p.p.) led by the fall in the loss ratio (66.7% -1.8 p.p.) and the stability of the expense ratio (27.1% -0.1 p.p.). The CoR improved in all the Group's main markets. In Italy it fell by 3.2 p.p. to 89.2% (92.4% FY13), mainly due to the positive performance of the non-catastrophic current loss ratio. Technical profitability increased significantly in Germany, with CoR at 92.6% (-3.1 p.p.) thanks to the reduced weight of catastrophic events; performance in France also improved (-0,6 p.p.). The CEE countries have once again confirmed the outstanding performance of the Group with the CoR at 87.7% (-1 p.p.) of CEE countries once again confirmed itself as the the Group’s best.

Although the macroeconomic environment in many markets remains challenging, the premium income in the segment was stable at €20,617 million (+0.2%). The Motor line marked a slight growth (+0.8%), thanks to the good performances recorded in Germany and LatAm. The Non-Motor line grew in the Commercial/Industrial line (+1.7%), which compensated for a drop in Accident and Health products (-1.2%).
As far as the Group's main markets are concerned, total premiums slightly decreased (-2.9%) in Italy, due to the country’s economic situation. This had a particularly strong effect on the Motor line (-4.9%). Results in Germany, on the contrary, were remarkable (+3.3%), thanks to the performance of both the Motor and Non-motor lines. Premiums in France decreased (-6.5%), while written premiums grew by 1.3% in CEE countries, thanks both to the Motor (+2.5%) and Non-motor (+0.8%) lines.


The Holdings and other activities segment includes the activities carried out by Group companies in the financial advisory and asset management sectors, the costs incurred in the activity of managing, coordinating and financing the business, as well as other activities which the Group considers subsidiary to its core insurance business.

The financial segment made a positive contribution, recording a growth in operating income of 8.9% to reach €374 million (€343 million FY13) thanks to the support of Banca Generali. The growth in the financial segment can be mainly ascribed to the net operating income from financial activities, which benefited from greater net commissions. The overall operating result of the “Holdings and other activities” segment stands at €-5 million. This result was mainly determined by the increase in operating costs of the holding related to improvements in several Head Office projects, IT improvements, transition to the new Solvency regime and the reclassification of a real estate development from non-operating to operating result.


These are unprecedented times for the insurance industry, with interest rates at record lows, increasingly stricter rules for distribution, the implementation of the Solvency 2 directive and a softening P&C market. Over the past two years the group has re-established a solid financial footing and initiated a number of technical and operational excellence programmes to enable it to better serve and retain its customers. This work will continue over the coming months.

In light of the actions implemented, and notwithstanding the uncertain macroeconomic scenario, Generali expects for 2015 to strengthen the levels of operating performance achieved in 2014. The Group’s will present its new strategy for its next phase of development at the next Investor Day, on May 27th in London.


The Board of Directors called both the ordinary and the extraordinary Shareholders’ Meetings on April 28-29-30, 2015.
The ordinary Meeting will resolve on:

  • The approval of the Annual Report as of December 31, 2014, the net result allocation and the dividend distribution;
  • The appointment of a member of the Board of Directors;
  • The Remuneration Report;
  • The approval of the 2015 Long Term Incentive Plan (LTI);
  • The authorization to purchase and dispose a maximum of treasury shares in accordance to the 2015 Long Term Incentive Plan (LTI). 

The extraordinary Meeting will resolve on the proposal to delegate to the Board of Directors, pursuant to article 2443 of the Italian Civil Code, a free and divisible capital increase in accordance to the new Long Term Incentive Plan to a maximum of €8 million, for a period of 5 years from the date of the Meeting. Please note that up to this date the Company and its subsidiaries currently own 442,166 Generali shares, equal to 0.028% of the Company’s share capital. In addition, the extraordinary Meeting will resolve on, in light of the amendments as of December 31, 2014, as illustrated in the draft Annual Report, some variations to article 9.1 of the Company’s By-laws.

The full text of the proposals for resolution and the Board of Directors’ reports on the subjects of the agenda, together with the complete related documentation, will be made available at the Company’s legal office, as well as on the Company’s website and on the website of Borsa Italiana Spa (, according to the terms and modalities prescribed by law.

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.


The Generali Group is one of the largest global insurance providers with 2014 total premium income exceeding €70 billion. With 78,000 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.


From 7:30 (CET) the following documents are available on press release, pre-recorded video and related transcript, analyst presentation, integrated report and all related financial documents.

The analyst call is scheduled today at 12:00 (CET). The Group CEO Mario Greco and the Group CFO Alberto Minali will take part to the call.

Editors can follow the event dialling +39 02 3600 9869 (listen only).

Generali Corporate app provides the latest optimized package of institutional info for mobile device users. Download it free from the Apple and Android stores.

¹ Change in premiums, net inflows and APE is calculated on a like-for-like basis (on equivalent exchange rates and consolidation area). Changes in operating results and own investments are calculating excluding the disposed entities from the comparative period.
² Pro Forma calculating also BSI disposal.



(€ million) 31/12/2014 31/12/2013
   1.1 Goodwill 6,617 7,163
   1.2 Other intangible assets 1,983 2,189
2 TANGIBLE ASSETS 4,610 4,786
   2.1 Land and buildings (self used) 2,797 2,879
   2.2 Other tangible assets 1,814 1,907
4 INVESTMENTS 427,191 384,645
   4.1 Land and buildings (investment properties) 12,628 12,828
   4.2 Investments in subsidiaries, associated companies and joint ventures 1,284 1,407
   4.3 Held to maturity investments 2,940 4,115
4.4 Loans and receivables 50,780 63,371
4.5 Available for sale financial assets 276,498 230,031
4.6 Financial assets at fair value through profit or loss 83,061 72,893
of which financial assets where the investment risk is borne by the policyholders and related to pension funds 67,707 59,116
5 RECEIVABLES 12,057 10,915
   5.1 Receivables arising out of direct insurance operations 7,462 7,584
   5.2 Receivables arising out of reinsurance operations 1,143 1,082
   5.3 Other receivables 3,452 2,249
6 OTHER ASSETS 35,973 15,651
   6.1 Non-current assets or disposal groups classified as held for sale 21,304 653
   6.2 Deferred acquisition costs 1,958 1,957
   6.3 Deferred tax assets 2,715 2,807
   6.4 Tax receivables 2,825 2,866
   6.5 Other assets 7,172 7,368
TOTAL ASSETS 501,318 449,656


(€ million) 31/12/2014 31/12/2013
1 SHAREHOLDERS' EQUITY 24,185 21,404
 1.1 Shareholders' equity attributable to the Group 23,204 19,778
   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 7,571 7,276
   1.1.5 (Own shares) -8 -11
   1.1.6 Reserve for currency translation differences -239 -252
   1.1.7 Reserve for unrealized gains and losses on available for sale financial assets 6,498 2,501
   1.1.8 Reserve for other unrealized gains and losses through equity -943 -306
   1.1.9 Result of the period 1,670 1,915
 1.2 Shareholders' equity attributable to minority interests 981 1,627
   1.2.1 Share capital and reserves 706 1,434
   1.2.2 Reserve for unrealized gains and losses through equity 93 -34
   1.2.3 Result of the period 182 227
2 OTHER PROVISIONS 1,751 1,768
3 INSURANCE PROVISIONS 386,202 345,752
   of which insurance provisions for policies where the investment risk is borne by the policyholders and related to pension funds 51,674 45,809
   4.1 Financial liabilities at fair value through profit or loss 18,374 16,084
   of which financial liabilities where the investment risk is borne by the policyholders and related to pension funds 15,886 13,227
   4.2 Other financial liabilities 30,420 45,932
   of which subordinated liabilities 8,315 7,612
5 PAYABLES 9,379 8,129
   5.1 Payables arising out of direct insurance operations 3,553 3,190
   5.2 Payables arising out of reinsurance operations 557 572
   5.3 Other payables 5,270 4,367
6 OTHER LIABILITIES 31,007 10,586
   6.1 Liabilities directly associated with non-current assets and disposal groups classified as held for sale 19,700 648
   6.2 Deferred tax liabilities 3,706 2,338
   6.3 Tax payables 1,420 1,607
   6.4 Other liabilities 6,181 5,993


(€ million) 31/12/2014 31/12/2013
1.1 Net earned premiums 64,322 60,622
   1.1.1 Gross earned premiums 66,324 62,913
   1.1.2 Earned premiums ceded -2,003 -2,290
1.2 Fee and commission income and income from financial service activities 967 872
1.3 Net income from financial instruments at fair value through profit or loss 3,510 4,611
of which net income from financial instruments where the investment risk is borne by the policyholders and related to pension funds 3,293 4,103
1.4 Income from subsidiaries, associated companies and joint ventures 192 181
1.5 Income from other financial instruments and land and buildings (investment properties) 15,991 15,374
   1.5.1 Interest income 9,919 9,828
   1.5.2 Other income 2,117 1,882
   1.5.3 Realized gains 3,761 3,455
   1.5.4 Unrealized gains and reversal of impairment losses 194 208
   1.6 Other income 3,301 2,246
1 TOTAL INCOME 88,282 83,905
2.1 Net insurance benefits and claims -67,003 -63,101
   2.1.1 Claims paid and change in insurance provisions -68,280 -64,527
   2.1.2 Reinsurers' share 1,276 1,425
2.2 Fee and commission expenses and expenses from financial service activities -470 -468
2.3 Expenses from subsidiaries, associated companies and joint ventures -68 -294
2.4 Expenses from other financial instruments and land and buildings (investment properties) -3,461 -3,222
   2.4.1 Interest expense -1,298 -1,355
   2.4.2 Other expenses -421 -444
   2.4.3 Realized losses -435 -475
   2.4.4 Unrealized losses and impairment losses -1,307 -949
   2.5 Acquisition and administration costs -10,489 -10,518
   2.5.1 Commissions and other acquisition costs -7,884 -7,963
   2.5.2 Investment management expenses -103 -75
   2.5.3 Other administration costs -2,502 -2,480
   2.6 Other expenses -3,838 -3,888
2 TOTAL EXPENSES -85,329 -81,492
3 Income taxes -1,033 -757
   Result of the period attributable to the Group 1,670 1,915
   Result of the period attributable to minority interests 182 227
Basic earnings per share (€) 1.07 1.24
   from continuing operations 1.13 0.80
Diluted earnings per share (€) 1.07 1.24
   from continuing operations 1.13 0.80