Green, Social and Sustainability ILS

In 2021, Generali sponsored Lion III Re, a catastrophe bond and the first Insurance-Linked Security (ILS) issued by the Group featuring innovative green characteristics. The instrument matured in 2025. In the same year, Generali returned to the ILS market by sponsoring a new catastrophe bond issuance with distinctive ESG features, in line with the Generali Green, Social and Sustainability ILS Framework, which was updated in 2024 to reflect the evolution of market best practices and the Group’s commitment to sustainable finance.

The Framework is a fully integrated component of Generali’s Sustainable Financial Management and enables the transfer of insurance risk to institutional investors while incorporating green and social features in accordance with the following key principles: (i) an amount equivalent to the risk capital released through the transaction is allocated to eligible green, social and sustainable projects; (ii) proceeds from ILS issuances are invested in assets and financial instruments consistent with the objectives of the Framework; and (iii) dedicated reporting is provided on the allocation of resources and the underlying collateral assets.

The new transaction sponsored in 2025 further confirms Generali’s commitment to promoting innovative solutions that integrate ESG considerations into capital markets and alternative risk transfer strategies. In addition, the selection of key service providers continues to take into account their commitment to integrating sustainability into their business activities.