Assicurazioni Generali S p A : Investor Day

Agenda

Generali 2021 Strategy updatePhilippe Donnet Group Chief Executive Officer

Accelerating Generali's strategic	Frédéric de Courtois	Group General Manager
transformation

Generali	Lucia Silva
ESG approach	Bruno Servant

Group Head of Sustainability and Social Responsibility

Head of Group Investment Management Solutions

Break

Investments & Asset Management:	Timothy Ryan
Delivering in a challenging context

Group Chief Investment Officer

and CEO Asset & Wealth Management

Financial strength and resilience	Cristiano Borean	Group Chief Financial Officer
Closing remarks	Philippe Donnet	Group Chief Executive Officer
Q&A session

1

GENERALI 2021

STRATEGY UPDATE

PHILIPPE DONNET

Group Chief Executive Officer

Generali 2021 strategy validated

RESILIENT FINANCIAL

Effectively navigating the COVID-19 crisis by leveraging Generali's core

PERFORMANCEstrengths: clearly defined strategy, focus on technical excellence and

well-diversified business model

PROACTIVE AND	Decisive actions taken to protect shareholder value and better serve
DECISIVE EXECUTION	customers in line with Generali's Lifetime Partner promise

GENERALI 2021	Strategic plan underpinned by a set of core convictions that allow
CORE CONVICTIONS
Generali to capitalize on emerging trends and opportunities
REINFORCED

2021 EARNINGS PER SHARE TARGET CONFIRMED

COMMITTED TO DIVIDEND TARGET

3

Resilient financial performance underpinned by best-in-class, diversified operations

DIVERSIFIED BUSINESS MODEL WITH OPTIMIZED	ESTIMATED P&C COVID-19 CLAIMS EXPOSURE
c. € 100 million
RISK SELECTION MINIMIZES COVID-19 IMPACT
TOP-LINE RESILIENCE MAINTAINED DESPITE	P&C GWP	LIFE NET INFLOWS ON RESERVES
+3% YoY (flat like for like)	3% annualised
MARKET HEADWINDS
CONTINUED DELIVERY OF BEST-IN-CLASS	P&C COMBINED RATIO	LIFE NEW BUSINESS MARGIN
89.7%	4.10%
TECHNICAL PERFORMANCE
ASSET MANAGEMENT STRATEGY DELIVERING	EARNINGS GROWTH	EXTERNAL CUSTOMERS GROWTH
+32.8% YoY	32% of revenues (FY16: 6%)
GREATER REVENUE DIVERSIFICATION
STRONG BALANCE SHEET WITH ROBUST CAPITAL	SOLVENCY II RATIO	NET HOLDING CASH FLOW
203%	AHEAD OF PLAN
BUFFERS AND SOLID CASH REMITTANCES

Results as of September 2020

4

Full commitment to Generali 2021 financial targets

FINANCIAL TARGETS	CURRENT STATUS

PROFITABLE GROWTH

CAPITAL MANAGEMENT

AND FINANCIAL OPTIMIZATION

INNOVATION AND DIGITAL TRANSFORMATION

6% - 8%

EPS CAGR RANGE1

2018 - 2021

€4.5 - 5.0 billion

CUMULATIVE DIVIDENDS

2019 - 2021

55% - 65%

DIVIDEND PAY-OUT RANGE2

>11.5%

AVERAGE RETURN ON EQUITY3

2019 - 2021

ON TRACK

ON TRACK

SUBJECT TO

REGULATORY ENVIRONMENT

2019 and 2021e ROE >11.5%

X 2020 impact of COVID-19 and one-offs

	1.	3 year CAGR; adjusted for impact of gains and losses related to disposals
5	2.	Adjusted for impact of gains and losses related to disposals
3.	Based on IFRS Equity excluding OCI and on total net result

Decisive actions to successfully deliver Generali 2021 plan

Extensive portfolio review to identify, quantify and mitigate direct business impacts

Effective capital and liquidity management actions to optimize remittances and cash utilization

Accelerated expense reduction plans to protect profitability margins

ALM actions to further de-risk the balance sheet and strengthen resilience against volatile markets

Proactive approach to protect Generali employees while minimizing business disruption

6

Core convictions underpinning Generali 2021 reinforced

CONVICTIONS	CURRENT CONTEXT	STRATEGIC ACTIONS
EUROPEAN MARKETS	▪ Strong ECB response and framework for fiscal stimulus	REINFORCE LEADERSHIP
REMAIN ATTRACTIVE	▪ Wave of consolidation and M&A opportunities expected	THANKS TO GENERALI 2021

RETAIL AND SMEs

DRIVING PROFITABLE GROWTH

• Greater propensity for household savings
• Increased awareness of insurance needs, notably in areas of Health and Protection

EFFECTIVELY COMBINE INSURANCE LEADERSHIP

INTEGRATED P&C,	▪ Customers increasingly seeking integrated protection
LIFE AND ASSET	and savings solutions as interest rates likely to remain
MANAGEMENT	lower for (even) longer

WITH GROWING AM PROPOSITION

DISTRIBUTION	▪ Increasing customer demand for omni-channel solutions,
ENHANCED BY DIGITAL	blending digital and physical offers

ACCELERATE PACE OF DIGITAL TRANSFORMATION ACROSS PROPRIETARY AGENT NETWORK

7

Generali's Lifetime Partner ambition underpins strategy

"A LIFETIME PARTNER TO ITS CUSTOMERS, OFFERING INNOVATIVE, PERSONALIZED

SOLUTIONS THANKS TO ITS UNMATCHED DISTRIBUTION NETWORK"

STRATEGIC PRIORITIES & PROGRESS

BEST IN CLASS OFFER USING DIGITAL AND DATA ANALYTICS

SEAMLESSLY CONNECT GENERALI, AGENTS AND CUSTOMERS

STRENGTHEN GENERALI BRAND TO ENSURE 1ST CHOICE IN KEY MARKETS

• New generation of digitally-born products bundled with a range of personalized value added services
• 3.8 million1 customers registered online,
  of which 61%1 are active mobile and web hub users
• 82%2 of agents are now fully remote and digitally enabled
• Record increase in Relationship Net Promoter Score

1. Q3 2020 figures
2. HY 2020 figures

8

Generali 2021 driven by empowered people, strong brand and commitment to sustainability

EMPOWERED PEOPLE

• Creating a highly engaged, customer-centric and innovation culture
• Covid-19reinforces need for simple, agile and adaptive organization

STRONG BRAND

• Building a consistent and distinctive brand experience
• Generali's Global Lifetime Partner Brand Campaign launched

SUSTAINABILITY COMMITMENT

• Long-termgrowth by integrating sustainability into business
• Delivering on targets aligned to Charter of Sustainability targets and Climate Strategy

9

Providing immediate support and longer term solutions for all stakeholders

€100M INTERNATIONAL	▪ Deployed across more than 25 different countries in addition to Business Unit funding
EXTRAORDINARY FUND	▪ Generali employees and top management contributed

• Provided digital tools and protective gear to ensure business continuity

AGENTS & DISTRIBUTORS

• Supported with loans, subsidies and prizes; paying loyalty benefits and claims
• Extended coverage, assistance and policy terms

CLIENTS

• Expanded remote medical consultation and public health information services
• Free life insurance for healthcare workers

COMMUNITIES

• Equipped The Human Safety Net partners to operate virtually

PROMOTING INDUSTRY-WIDE	▪ Pandemic Risk Pool, a European solution to address the protection gap
SOLUTIONS	▪ European Alliance for Green Recovery and supporting ambitious energy transition policies

10

M&A and partnerships accelerate the strategy

STRATEGIC PRIORITY

STATUS UPDATE

CLEARLY DEFINED M&A CRITERIA

• Financial attractiveness
• Strategic fit
• Execution risk

REINFORCE LEADERSHIP IN EUROPE

ADRIATIC SLOVENICA AND CONCORDIA

• #2 player in the Slovenian insurance market
• Consolidated Generali presence in Polish insurance market

SEGURADORAS UNIDAS

• #2 P&C player in the Portuguese insurance market
• Operating performance and synergies ahead of plan

CATTOLICA

• Strategic investment in high quality franchise
• Partnership agreements to deliver incremental value

INTEGRATION COMPLETED

INTEGRATION COMPLETED

STRATEGIC PARTNERSHIP

FULL ACCOUNTABILITY OF DELIVERY

ENHANCE

ASSET MANAGEMENT CAPABILITIES

LUMYNA CARVE-OUT AND SYCOMORE PARTNERSHIP

• Leadership in the Alternative UCITS and ESG areas

KD SKLADI AND UNION-POLAND

• Consolidated Generali presence in Slovenian and Polish markets

COMPLETED

INTEGRATED INTO CEE PLATFORM

INCREASE SERVICE- BASED REVENUES

ADVANCECARE	CONTRIBUTING
▪	Leading healthcare services platform in Portugal	TO BUSINESS
▪	Highly profitable capital-light fee business	DIVERSIFICATION

11

Clear strategic priorities to deliver Generali 2021 and beyond

Maintain disciplined approach to managing cash, capital and redeployment

Deliver strong results in Life and P&C leveraging best-in-class technical expertise

Further enhance multi-boutique asset management strategy

Increase customer preference while increasing digitalization of distribution channels

Relentless focus on expenses above planned 2021 target

EXECUTION UNDERPINNED

BY GENERALI'S LIFETIME PARTNER CUSTOMER AMBITION

12

ACCELERATING GENERALI'S STRATEGIC TRANSFORMATION

FRÉDÉRIC DE COURTOIS

Group General Manager

Generali's clearly defined strategic transformation priorities

PROFITABLE GROWTH

CAPITAL MANAGEMENT

AND FINANCIAL OPTIMIZATION

INNOVATION AND DIGITAL TRANSFORMATION

LEADERSHIP	Increasing technical sophistication and expertise generating best-in-class Life and P&C margins
IN PROFITABILITY
STRONG DELIVERY	Growing external customer base expected to deliver 2021 organic profit ambitions one year
IN ASSET MANAGEMENT	ahead of Plan
REINFORCING	Generali Lifetime Partner transformation delivering higher customer loyalty and accelerated digital
STRENGTH OF BRAND	capabilities
POWERFUL	Leveraging the strengths of Generali's Agent and Direct channels to deliver profitable growth
DISTRIBUTION MODEL
ACCELERATED
TRANSFORMATION	Relentless focus on expense reduction delivering additional € 100 million in savings by 2021
DRIVING PROFITABILITY
CAPITAL AND CASH	Strong and sustainable capital generation resulting in an increase of cash remittance
DISCIPLINE	to holding

14

Delivering profitable growth in Life and Pensions by capitalizing on macro trends

Increased customer savings trend, with household savings rate at all time high in the Euro area

Greater customer awareness of protection needs and biometric risks, as well as company's reputation and social commitments Growing demand for life-savings products, with Unit-Linked solutions expected to outperform

Unique opportunity in private pensions, with a growing demand for retirement products

FULLY ALIGNED TO GENERALI'S CORE STRENGTHS

Unmatched proprietary/

exclusive distribution network with integrated advisory capabilities

Best in class technical expertise, evidenced by market-leading technical margins

Comprehensive product proposition including AM solutions with ESG options, biometric riders and focus on seniors

15

Industry first mover in de-risking Savings business

STRATEGIC ACTIONS

CHANGING THE	#1 in Agents channel	#1 in UL AuM	Dominant
UL Retail NBP ratio	(€ 22.4 billion;	UL GWP ratio
BUSINESS MIX	(23% vs market 14%)1	36% UL AuM ratio vs 11% market)2	(53% compared
			to market 35%)1

MOVING AHEAD

Generali France reducing general account business and developing new Euro croissance offering (with 80% guarantee)

RESHAPING GUARANTEES

1st mover to maturity	1st mover among peers -
guarantees	main products with guarantee
	linked only to small part (less
	than 35%) of premiums
	(Exclusive channel).
	Overall average German Savings
	New Business guarantee at 0.11%1

1st mover to

negative guarantee

Leadership in

crediting

rate management

Generali Italy to further reshape portfolio by moving to whole life investment products with death guarantee only and hybrid solutions

PROACTIVE	Portfolio duration lengthening to mitigate interest rate risk
(from 8.4 to 9.9 years)3 and improved risk-adjusted asset allocation
ALM STRATEGY
to sustain portfolio yields

TARGETED	Landmark Generali Leben sale (€ 37 billion traditional reserves)
IN-FORCE DISPOSALS	Exit from high guaranteed businesses in Belgium and Netherlands

Greater investments into real assets with further geographical diversification and full ESG integration

Further significant in-force actions being evaluated

	1.	HY 2020 figures
16	2.	FY 2019 figures
3.	FY 2016 vs HY 2020 figures

Attractive and predictable P&C cash flows

2015-2019 P&C COMBINED RATIO & 1H 2020 TREND

Avg. Combined Ratio									Avg. Ex-Generali
104%
103%																		Strong competences in risk selection,
102%
101%																		prudent reinsurance and technical
100%
99%														Peer 4			excellence programs leveraging
98%																		data analytics
97%				Peer 1													Avg.
96%											Peer 3				Ex-Generali
95%						Peer 2
															Resilience of Generali P&C business
94%
93%			Generali														underpinned by limited exposure
92%																		to large accounts and diversified
91%
																	high-quality portfolio structure
90%
89%				Generali 1H2020
88%
0.0%	0.1%	0.2%	0.3%	0.4%	0.5%	0.6%	0.7%	0.8%	0.9%	1.0%	1.1%	2.5%	2.6%	2.7%
														Standard Deviation
		Size denotes P&C YE 2019 GWP			Trajectory denotes P&C 1H 2020 CoR
										Source: Company disclosure. Note: Large-Cap European peers include AXA, Allianz, Zurich and Aviva

17

Asset Management is growing revenues with strong margins that provides sustainable cash flows with low capital absorption

SUSTAINABLE PROFITS

BEST IN CLASS MARGINS AND GROWING REVENUES	54%
	OPERATING MARGIN1

GROWING	2020 TOTAL CASH CONTRIBUTION	93%
CASH MACHINE	> € 250 million	PAYOUT RATIO IN 20202

CAPITAL LIGHT	LOW CAPITAL ABSORPTION	2.6 BPS
BUSINESS	Required capital: c. € 140 million2	REQUIRED CAPITAL ON AUM1

1. 9M 2020 figures
2. Calculated on 2019 net profit (after minorities)

18

Customer and distributor experience excellence resulting in higher customer loyalty

LIFETIME PARTNER HALLMARKS DRIVE SUPERIOR RELATIONSHIP WITH CUSTOMERS

CUSTOMER

DISTRIBUTOR

HUMAN &	SIMPLE	DIFFERENTIATING	SEAMLESS	DIGITAL	MANAGEMENT	NEEDS' - BASED	PAPERLESS
CARING	LANGUAGE	VALUE	OMNICHANNEL	VISIBILITY	OF GENERATED	ADVISORY
EXPERIENCE		PROPOSITIONS	EXPERIENCE		LEADS

ON A JOURNEY TO BEST-IN-CLASS RELATIONSHIP NPS BY 2021

Generali is increasing Relationship NPS¹ faster than international peers with a growth of +7 points in Q3 2020 compared to Q1 2019

COMMITTED TO FURTHER IMPROVE CUSTOMER RETENTION

Generali is improving its customer retention with a growth of +2.7 p.p. in Q3 2020 compared to 2018

1. Perimeter: Generali units in Europe, Asia, Argentina and Turkey.

The baseline was set at the Q1 2019 at the beginning of the Strategic Plan

19

Jeniot IoT proprietary platform enabling integrated services solutions

Since 2018 Jeniot has developed innovative services for urban mobility, intelligent homes, health and connected workplace

Jeniot provides services leveraging on a proprietary IoT platform which enables increase of fee-based revenue streams

SMART HOME

MOBILITY DEVICES	SMART PET
& SERVICES

BABY	WORKER
CARE	SAFETY

	SANITIZATION
AIR HEALTH	& THEFT
MONITORING	PROTECTION

1.5 M+ MANAGED DEVICES

• 55 M+ ANNUALREVENUES

1 PB+	DATA
MANAGED

10 BN+	ANNUAL KM
	REGISTERED

6 COUNTRIES SERVED

20

Proprietary network relationships powered by cutting-edge digital tools

DIGITALLY-ENABLED PHYSICAL DISTRIBUTION MODELS

GENERALI GROUP CAPABILITIES

CUSTOMER

MOBILE

& WEB HUB

START			4
		Lifetime
	2	7	Partner
	Continuous
1	Get in	Bond by human/	engagement	5
Touch/	functional Lock-in
Discover		Caring/ assistance
Buy

BEFORE	SERVICE	AFTER
SERVICE	EXPERIENCE	SERVICE
	8
	Ask for
	advice
9		6
Look Generali	3	New
Offer	needs
	Use of Generali
	services

PUBLIC

WEBSITEAGENT

HUB

AGENT HUB		INNOVATION IN INSURANCE
	AWARDS 2020
1	2	3	4	5
RECRUITING	DIGITAL	PRE-SALES	SALES	POST-SALES
& ONBOARDING	VISIBILITY
	& LEADS
Customer	Customer	Task	Performance	Campaigns
profile	search	management	dashboard

BUSINESS UNITS

ACTORS	CHANNELS
AGENT		GENERALI		AGENT'S APP

ILLUSTRATIVE

21

Leveraging the strengths of Generali's Agent and Direct channels

AGENT CHANNEL1		DIRECT CHANNEL
(GDWP Life and P&C, Europe2, € million)		(GDWP Life and P&C, Europe2, € million)

	1.7%
16,993	17,247
HY19	HY20

Italy's agent channel positive performance

(+2.6% in Life business at HY 2020)3

Germany exclusive channel resilient performance

(+2.0% in Life business at HY20)

France's agent channel growing above 3.0% both in Life and P&C

	2.0%
2,404	2,448

HY19HY20

Italy's Genertel excellent growth of +18.9%

Germany's CosmosDirekt +21.9%, outpacing Life market

ACEER direct operations growing by +12.5%4 in Non-Life, led by Poland and Hungary

	1.	Includes Agents, Employed salesforce and DVAG network
	2.	Includes Italy (excluding Cometa fund impact), Germany, France and ACEER; variation on a like for like basis
22	3.	Excluding Cometa fund impact
4.	At constant exchange rate

Accelerated business transformation to drive further profitability

NEW EXPENSE REDUCTION TARGET (Insurance Europe, € million)

300

	55	100
200	45

+50%	200
VS GENERALI 2021 TARGET

Generali 2021 expense reduction target	New ways of working	External services	New 2021 expense reduction target
		optimization
€ 200 million	In 2021 Generali will fully consolidate new ways
secured by disciplined execution	of working and further optimize external services delivering

of savings & transformation initiatives		€ 300 million expense reduction
€ 1 billion
	vs. 2018 baseline expenses
strategic investments confirmed

23

Cash redeployed to deliver profitable growth and attractive shareholder returns

DEBT REDUCTION

€ 1.5-2.0 billion

ALREADY

DELIVERED

DIVIDENDS

> € 10 bn

• 4.5-5.0 billion

		AHEAD
ON TRACK
OF PLAN
SUBJECT TO
REGULATORY ENVIRONMENT	CAPITAL REDEPLOYMENT

€ 3.0-4.0 billion

ON TRACK

UP TO € 2.5 BILLION LEFT

24

Accelerating delivery of Generali's strategy and transformation journey

Operating resilience underpinned by Generali's retail focused business model, leadership in technical profitability and digitally enabled propriety distribution capabilities

Generali 2021 strategy validated and reaffirmed; even more relevant in current market context

Well-positioned to capture the benefit from digitalization and new ways of working

EXECUTION UNDERPINNED

BY GENERALI'S LIFETIME PARTNER CUSTOMER AMBITION

25

GENERALI ESG APPROACH

LUCIA SILVA

Group Head of Sustainability and Social Responsibility

BRUNO SERVANT

Head of Group Investment Management Solutions

Creating long-term value with a clear pathway to sustainable business transformation

A CLEAR TRANSFORMATION	Generali has a clear purpose and a defined sustainability ambition, built on strong foundations
PATHWAY

FULLY INTEGRATED	Our Sustainability strategy is firmly embedded into our governance structure and driven by clear
AT ALL LEVELS	objectives and responsibilities

DEFINED STRATEGY	We are committed to meeting sustainability targets, driving engagement through flagship projects
and ensuring we deliver on our promises when it comes to climate change and supporting
& GOALS
the green economy

REAL PROGRESS	Generali is making good progress across all key strategic areas and is playing an active role
TO DATE	in creating an effective Responsible Consumer ecosystem

CLEAR COMMITMENT ON	We are a responsible investor and have established a strong framework to fully integrate
SUSTAINABLE INVESTMENT	sustainability into long-term investment strategies

27

The path to Generali's sustainable business transformation

OUR	To enable people to shape a safer future
PURPOSE	by caring for their lives and dreams

OUR	Pursuing long-term growth, integrating
SUSTAINABILITY	sustainability into our core business and acting
AMBITION	as Lifetime Partner to our stakeholders

	Integrated	Control functions
	governance driving
	looking at ESG
	sustainability
OUR
Remuneration
SUSTAINABILITY	Integrated
incentivizing
FOUNDATIONS	reporting
ESG targets

Engagement with our stakeholders

PROUD OF OUR

SUSTAINABLE

BUSINESS

INNOVATIONS

• Climate Change Strategy to promote a Just Transition1
• First European insurer to issue a Green bond and create a framework for Green Insurance-Linked Securities
• Champion Diversity and Inclusion focusing on gender, generations, culture and inclusion
• A global initiative to extend Generali's purpose to the most vulnerable
  in our communities

PART OF POWERFUL SUSTAINABILITY PLATFORMS

GREENRECOVERY

REBOOT & REBOOST our economics for a

sustainable future

• EU Alliance for a Green Recovery

RECOGNIZED AS A SUSTAINABLE PLAYER BY KEY INDICES AND OUR OWN PEOPLE

81% of our people see Generali as a

sustainable company

1. A transition towards a low-carbon economy which integrates the social dimension

28

Integrated governance driving sustainability at all organizational levels

BOARD

TOP

MANAGEMENT

	BODIES	KEY CHARACTERISTICS
			▪	61.5% independent board members
BOARD OF DIRECTORS	▪	38.5% female representation
			▪	Chair: Non-ExecutiveNon-CEO
CORPORATE GOVERNANCE	▪ Chaired by the Chairman of the Generali Board of Directors
SOCIAL & ENVIRONMENTAL	▪ Advisory, recommendatory and preparatory role for the Board of Directors
SUSTAINABILITY COMMITTEE	▪	5 non-executive members
			▪ Sponsored by Group CEO
SUSTAINABILITY	▪	Drives the strategic integration of sustainability

COMMITTEE

▪ 13 executive members including heads of Group functions and country CEOs

OPERATIONAL

LEVEL

RESPONSIBLE INVESTMENT COMMITTEE

GROUP ENGAGEMENT COMMITTEE

INTEGRATED REPORTING LAB

RESPONSIBLE BUSINESS LAB

• Specific committees and working groups with cross-functional composition and expertise
• In charge of delivering the strategic view of Sustainability
• Providing technical input to ensure appropriate implementation of the strategy

GENERALI IS INTEGRATING STRATEGIC SUSTAINABILITY OBJECTIVES

INTO TOP MANAGEMENT REMUNERATION SCHEMES

29

A clear sustainability strategy and defined goals

1. GENERALI 2021

New 2021 strategy goals aligned with the Charter of Sustainability Commitments:

▪ Sustainability KPIs:	▪ Flagship projects :
− + € 4.5 billion in new green and sustainable investments	− Responsible Consumer to create distinctive and customized product offering
− 7- 9% GWP growth in Green and Social Products	for responsible consumers
− EnterPRIZE to award the best sustainable SMEs
	− The Human Safety Net expand Generali global community support initiative
	in and beyond existing 18 countries

2. CLIMATE STRATEGY

Positioning on carbon intensive business		Supporting the "green" economy		Reducing direct impacts
▪ Underwriting: not insuring any new coal and tar sands-		▪ Underwriting:		▪ Reduce our greenhouse gas emissions by 20% by 2020
related customer; no increase of minimal insurance		- Increase green offering for retail and SMEs market		(base year 2013)
exposure to coal-related activities (0.1% of P&C GWP)
			▪ Increase purchases of green power
▪ Investments: no new investment in coal and tar sands-		- Community of Experts for underwriting risks of the
	renewable energy sector
related issuers; gradual divestment of € 2 billion exposure
to coal-related issuers		▪ Investments: € 4.5 billion in new green and sustainable
▪ Engagement to support transition to a low carbon		investments
economy		Green innovation in our financial management

Issuing of two green bonds and definition of a framework for green Insurance Linked Securities

Managing climate-relatedrisk: definition of a framework for climate change risks management

Transparency and reporting: disclosure on how we manage climate-related risks and opportunities

30

Sustainability integration brings tangible progress in all areas

1,414 AGMs

About € 35 billion

attended in 2019

80%

• 4 billion

investments with dedicated ESG mandates

90% of employees in remote working

32%

reskilled employees as of 1H 2020

82%

Engagement Index in 2019

of direct listed investment covered by ESG analysis

77%

D&I Index in 2019

46	active in 22 countries
partners collaborating
as of 1H 2020	as of 1H 2020

of new green and sustainable investments as of 1H 2020

-20%

in GHG emissions in 2019 vs 2013

Giving visibility to sustainable SMEs

• 15.3 billion

GWP from green and social products in 2019

+7 Relationship NPS1

as at Q3 2020

Decarbonization of the P&C underwriting portfolio

99%

purchased green power in 2019

1. Delta vs Q1 2019 baseline

31

Becoming a Lifetime partner for Responsible Consumers

THE RESPONSIBLE

CONSUMER ECOSYSTEM

GREEN		RESPONSIBLE
0.7%	0.3%	CONSUMER

SOCIAL

78.7%

2.3%

Pollution

39.2%

Risk reduction

• 1.4 billion

Other					Products aimed
SUSTAINABLE		GREEN
		at targeted
	INVESTMENT		& SOCIAL
		clients/
	SOLUTIONS		PRODUCTS
58.2%		events
Mobility		2019

• 13.9 billion

Products promoting responsible behaviour

		€ 15.3 billion	19.0%
0.1%	1.5%	GWP green and social products	Health
products providing
Efficiency	Renewable energy		payout or services
		Agence Bas
		Carbone

32

Clear commitments taken on Investments

OUR CONVICTION ON RESPONSIBLE INVESTMENTS (RI)

Proactive integration of Environmental, Social and Governance (ESG) factors into the investment process, across all asset classes, will support the Group to achieve

both long-term financial returns and social good,

while reinforcing our risk management approach

INITIATIVES ON RESPONSIBLE INVESTMENTS SUPPORTED

2011	UN Principles for Responsible Investing
2018	G7 Investor Leadership Network

2020	UN-convened Net Zero Asset Owner Alliance

IMPLEMENTATION THROUGH A MIX OF RI APPROACHES / STRATEGIES

33

Strong framework for Sustainable Investing

Strong commitment on Sustainability in creating long-term for stakeholders

As Asset Owner (with delegated Asset Management) investments play a key role in implementing such commitment

ASSET OWNER

Group insurance companies

Integrating Sustainability

into long-term /liability-driven

investment strategy:

Enhancing long-term performance

Managing Sustainability Risk/Opportunity

ASSET MANAGEMENT

Generali

Global

Infrastructure

Generali Investments Partners

Generali Insurance Asset Management

Generali Investments CEE

(under Solvency 2 framework)	INSURANCE ASSETS		THIRD PARTY CLIENTS
		Implementing Group specific policies		Offering valuable Sustainable
		on Responsible investments		solutions / products to clients

PORTFOLIO KEY FEATURES

DEDICATED RESOURCES

▪	General Account		All asset classes: ▪	Traditional liquid (Equity, Credit, Sovereign)	▪	Direct investments (including Mandates and Funds reserved)
▪	Own / shared risk		▪	Real Assets (RE, PD, PE)	▪	Indirect investment (Third Party Asset Managers & Funds)

More than 50 ESG-dedicatedpeople to Responsible Investments including ESG analysts, voting and engagement specialists, dedicated SRI portfolio managers and actively involved in communication with markets, identified key reference persons among portfolio managers and credit analyst teams

34

Comprehensive ESG coverage of our investments

Weight of ESG

ACTIVE OWNERSHIP

in Investment	▪ Encouraging ESG practices in investee companies
decisions	▪	Voting at AGM (1,414 meetings attended and 18,472 resolutions in 2019)
	▪	Dialogue with investee companies on ESG topics

IMPACT & THEMATIC INVESTMENT

• € 4.5 billion new Green & Sustainable and Infrastructure Investments by 2021: already achieved € 4 billion of target ahead of schedule
• € 1 billion sustainable investments - Covid-19 EU Recovery Plan (June 2020)

ESG INTEGRATION

• ESG criteria for selecting direct investment in liquid Corporates and Sovereigns:
• • 80% of investments covered by ESG analysis
  • € 35 billion of dedicated ESG mandates
• New Real Estate Guidelines embedding Sustainability
• Infrastructure debt investments covered by ESG assessment and contribution to UN SDGs (€ 1 billion)
• Selection of new 3rd party AuM based on ESG screening criteria

EXCLUSION POLICIES

• Cover direct listed investments
• Unethical Behaviors and breach of UN Global Compact
• Controversial business sectors (unconventional weapons)
• Risky activities for the environment (coal, tar sands)

35

Direct investments: c. € 300 billion AuM as of June 2020 (c. %80 General account investments)

Indirect investments (Funds): Selection of new funds aligned with Group's ESG convictions

Value creation through a clear Sustainability Strategy

SUSTAINABILITY	A clear strategy allows us to capitalise on the growing number
LEADERSHIP	of sustainability related opportunities

DISCIPLINED FOCUS	This approach supports our value creation for shareholders
ON VALUE CREATION	and all stakeholders, in line with our Lifetime Partner commitment

LONG TERM VIEW

Sustainability is key to ensuring Generali's success now and in the future

36

INVESTMENTS & ASSET MANAGEMENT: DELIVERING IN A CHALLENGING CONTEXT

TIMOTHY RYAN

Group Chief Investment Officer and CEO Asset & Wealth Management

Investments, Asset & Wealth Management Business Unit highlights

INSURANCE			WEALTH MANAGEMENT
INVESTMENTS	ASSET MANAGEMENT		BANCA GENERALI
▪	Maintaining good spread on	▪ Confirming targets for 2021		▪ Record level of assets
	assets yields vs liability costs	▪ Strong development of external		▪ Robust net inflows, also in 2020,
▪	Steady development of Real	customers business		with high quality mix
	Assets investments
▪	Leveraging the 2020 context to	▪ Strong discipline on costs		▪ Growing revenues despite
▪ Attractive return on investments		financial market and context
	accelerate strategic initiatives
			on boutiques		▪ Solid capital position

• Strong contribution from multi- boutique to over-performances
• Leveraging fully ESG integration

38

New investment framework delivers greater flexibility while preserving risk discipline

DECEMBER 2016 ASSET PORTFOLIO¹		HY 2020 ASSET PORTFOLIO¹
Total AUM: € 406 billion		Total AUM: € 404 billion

Cash &

Others

Real Assets

3.7%

Equity 7.5%

3.6%

42.4%

Corporate Bonds & Other Fixed Income²

Government Bonds

42.9%

Cash &

Others Government

Bonds

Real Assets	6.3%
10.1%	44.3%
Equity
4.1%

35.3%

Corporate Bonds

& Other Fixed Income²

• A transformed investment framework based on:
• • Capital efficiency
  • Risk adjusted returns
  • Stochastic modeling
• Expected credit losses budget framework implemented
• Concentration limits on illiquid assets set based on:
• • Forward-lookingcompany liquidity ratios
  • Liquidity haircuts applicable to different instruments

1. Sum of General Accounts Investments book values and fair value of Real Estate assets including self-use and inventories
2. Including mortgage loans, policy loans, time deposits other than cash equivalents, indirect investments in Fixed Income

39

Tangible results delivered with enhanced yields and improved asset-liability duration

ATTRACTIVE SPREAD ON LIFE GUARANTEES BOOK

ACTIVE MANAGEMENT

OF NEW BUSINESS PROFITABILITY

SPREAD ABOVE		SPREAD ABOVE
AVG. IN-FORCE GUARANTEE	AVG. NEW BUSINESS GUARANTEE
BPS		BPS
157	186	158	195

20171201920172019

LIFE	P&C
Years	Years

DISCIPLINED ALM MANAGEMENT		+1.5				+0.5
UNDERPINNED BY LENGTHENING OF ASSET		9.9			5.9
DURATION	8.4			5.4
	2016		1H 20	2016		1H 20

IMPROVED ASSET ALLOCATION THROUGH HIGHER EXPOSURE TO REAL ASSETS

REAL ASSET SHARE			REAL ASSET EXPOSURE
% AUM			€ billion
						+10.4
	+2.6
			10.1	30	41
7.5
2016			1H 20	2016		1H 20

GENERALI'S DISCIPLINED INVESTMENT APPROACH CREATING VALUE FOR ITS CUSTOMERS

1. The 2017 figure does not reflect the methodological refinement applied in 2019

40

Improved investment resilience throughout YTD 2020

LOWER RATING DOWNGRADES VS THE MARKET AND DE-RISKING OF EQUITY PORTFOLIO

PUBLIC CREDIT DOWNGRADES

(Generali portfolio vs European Index1, from investment to non-investment grade)

	GENERALI		INDEX1
Generali AuM: € 130 billion
		15%
0.9%	2.3%

NOMINAL EQUITY EXPOSURE

(€ billion, net sales on direct equities and funds)

Q2 2020

Q3 2020

-1.3

-3.1

• € 4.4 billion sold representing 31% of initial portfolio

A GEOGRAPHICAL DIVERSIFIED REAL ESTATE PORTFOLIO FOCUSED ON PRIME LOCATION AND TENANTS

Long term strategy focused on core European cities and assets

• c. 70% of the portfolio in prime European locations
• c. € 1.3 billion sales of non core assets in 2017-2019

Reinforced relationships with c. 1,700 tenants during CoViD crisis

• One off impact of -3% on passing rent from review of contractual agreements

YIELDS	3.2%		5.0%
ANNUALIZED	on market value	on book value
CHANGE	2018	2019	2020
OF VALUE	+3.3%	+5.5%	+/- 0%
MARKET VALUE	2018	2019	Sept 2020
(€ billion)	26.5	29.2	29.7

1. Reference period: 29 February - 2 October 2020. Perimeter of the analysis: General Account including funds,

excluding covered bonds and unit-linked. Reference index: BofA/ICE EUR

41

Private Equity: a well diversified portfolio, with growing commitments to capture market opportunities

OVERVIEW¹

(€ billion)

13.6

		6.3
	Commitment	NAV²
PERFORMANCES
CUMULATED DIVIDENDS³	TOTAL VALUE PAID IN³
2017-2020
€ 757 million	1.37 X

COMMITMENT BY VINTAGE

(€ billion)

						Secondary
3.00	2.50	2.85	2.85			Primary
			2.18
		1.32	1.35
				0.89
		1.53	1.50	1.28	0.24
1994	2013	2017	2018	2019		9M 2020
2012	2016

BREAKDOWN BY GEOGRAPHY

24% Asia

U.S.A. 41%

35% Europe

	1.	Data as of 9M 2020
	2.	Net Asset Value - net of expected future performance fees
	3.	Paid to Generali Insurance companies
42	4.	Calculated as ratio of distributed capital and NAV over funded capital

Translating market challenges into opportunities

GLOBAL MARKETS CONTEXT	GENERALI PRIORITIES GOING FORWARD

▪ Lower for longer interest rates

▪ Increase investments in Real Assets

▪ Tighter credit spreads

▪ Accelerate geographical diversification

▪ Increased desynchronization of Equity markets

▪ Leverage ESG / SRI in all asset classes

▪ Real Estate with multiple challenges

▪ Use innovation to enhance the value chain

and opportunities

▪ Further use capabilities in alpha-strategies

▪ Growing needs to finance real economies

▪ Restructuring on in-force and new business

43

Increase Real Assets by € 15 billion in the next three years

INCREASE SHARE OF REAL ASSETS
OF THE WHOLE PORTFOLIO…				…BY ALLOCATING 20% OF FUTURE CASH FLOWS
	Today	2023 Ambition
						20%
10%			13%

• € 15 billion

90%	87%	80%
		Real Assets Investments / Private Assets		Public assets

PLANNED KEY ACTIONS

• Expand Real Estate in terms of location (U.K., U.S.A. and Asia) as well as sectors, including residential and debt
• Leverage boutiques' specialized expertise in key areas such as Infrastructure Debt and Equity, Private Credit and Private Equity

44

Mitigating low interest rates impact by leveraging on proven real assets, alpha strategies and ESG excess returns

PRIVATE

EQUITY

LIQUID α

STRATEGIES

ESG STRATEGIES

ASSET MANAGERS

Happy @ Work

Sélection Responsable

SRI European Equity

SRI Ageing Population

RETURNS

∆ RETURN vs EQUITY

+ 3.3%¹

1-Y PERFORMANCE vs BENCHMARK³

+ 8.6%

1-Y PERFORMANCE vs BENCHMARK³

+ 7.6%

VALUE OF EXCESS RETURN²

+ € 210 million

+ € 250 million

+ € 55 million

LEVERAGING OUR ASSET MANAGEMENT BOUTIQUES EXPERTISE TO BETTER SERVE CLIENTS

	1.	Public Market Equivalent multiple using the Morgan Stanley World Index - as of September 2020
45	2.	On General Account Investments, For policyholders and shareholders, before taxes
3.	Data as of 23rd October 2020, source Morningstar

Significant growth of Asset Management since strategy launch in May 2017

SIGNIFICANT GROWTH OF REVENUES…

(€ million)
				>910
			>230
		103
482	91
Revenues	Realignment	M&A	Organic	Forecast
FY 2016	of Group	1st year impact	Growth	revenues
	General			2020
	Accounts
	fees

…AND PROFITS¹

(€ million)

Revenues	10 bps	17 bps
/ AuM
		>350

115

FY 2016

Forecast 2020

1. Net result after taxes, before minorities

46

Asset Management strategy is delivering for our clients

BROADER INVESTMENT STRATEGIES OFFERING

ADDITIONAL INVESTMENT STRATEGIES From 5 to 10 (+5) in Fixed Income

From 7 to 12 (+5) in Equity / Multi Assets From 2 to 19 (+17) in Real Assets and others

ACTIVE MANAGEMENT FUNDS	MORNINGSTAR	PERFOMANCE
POSTING STRONG PERFORMANCES	PERFORMANCE¹	vs BENCHMARK²
(1 YEAR PERFORMANCE)	67% Top quartiles	80% higher

HIGHER ASSET MANAGEMENT	#11 OUT OF 40 IN 2020
"Ranking of preferred Asset Management Firms
BRAND RECOGNITION
by European fund selectors" 3

SIGNIFICANT GROWTH OF EXTERNAL	NET REVENUES
CUSTOMERS SHARE	From 6% (FY 2016) to 32% (9M 2020)

	Source: Generali, Morningstar. Data as of October 2020
	1.	Percentage of AUM (scope: assets for which a comparison with the respective Morningstar category is available - AUM: € 34.3 billion)
47	2.	Percentage of AUM (scope: assets for which a comparison with the respective benchmark is available - AUM: € 27.4 billion)
3.	Source: Cerulli Associates, 2020

New smart-ups boutiques are already providing positive returns

PARTNER CONTRIBUTIONS

• Skilled investment team with strong track record
• Entrepreneurial mindset
• Alignment with clients
• Attractive performances

GENERALI GROUP CONTRIBUTION

• Strategic capital and support in product structuring
• Cost benefits from Generali economies of scale
• Generali network and global distribution capabilities to reach external clients
• Control functions framework and oversight

	Generali Global Infrastructure
LAUNCH DATE	December 2017		September 2018		December 2018
BREAK-EVEN YEAR	2020		2020		2020
ROI (ON 2020 EARNINGS)	11%		16%		13%

48

Newly acquired boutiques such as Lumyna driving external client growth

LUMYNA - ASSETS UNDER MANAGEMENT EXTERNAL CLIENTS

($ billion)

16.5

MARKET RECOGNITION

	Established market leader in Liquid
#1	Alternatives
▪ Partners with Best-in-Classthird-party

asset managers to offer innovative alternative investment strategies in public and private markets

7.4		"Best UCITS platform" at the
	HFM European Services Awards 2020
		▪ Winner 8 years in a row
		"Best Alternative UCITS Distribution
		Platform" in the HFR European
		Performance Awards 2020
December 2016	October 2020

23% RETURN ON INVESTED CAPITAL FOR LUMYNA

49

Maintaining a competitive edge on margins thanks to efficiency levers

OPERATING MARGIN¹

GENERALI VS PEERS²

% FY 2019 Data

52.0%
	30.5%	29.0%
Generali	Multi-Boutique	Insurance
	Asset Managers	Asset Managers

KEY LEVERS ON ASSET

MANAGEMENT EFFICIENCY

• Economies of scale
• Tight cost control - Zero Based techniques
• Centralized procurement
• Near-shoringof Middle & Back-office in Generali CEE
• Access to Generali Insurance distribution networks

1. Operating margin calculated as 1-cost income
2. Source: Companies' annual reports. Insurance Asset Managers median of four peers; Multi-Boutique Asset Managers: median of six peers

50

Relentless focus on control and fiduciary duties

GOVERNANCE	▪ Generali has a majority representation on all Boutique board of directors
▪ Highly experience board members with an average 26 years' industry experience
RISK	▪ Adoption and implementation of Generali Risk policies at all Boutiques
▪ Appointment of a Chief Risk Officer reporting to local board of directors and Group Risk Officer at all Boutiques
COMPLIANCE	▪ Adoption and implementation of Generali Compliance and Risk Assessment Policies at all Boutiques
▪ Appointment of a Compliance Officer reporting to local board of directors and Group Compliance at all Boutiques
AUDIT	▪ Adoption and implementation of Generali Group Audit policy at all Boutiques
▪ Systematic Audit performed by Group Investments Audit team, reporting to Board of Directors
	▪ Adoption and implementation of Generali financial policies at all Boutiques, ensuring a common
FINANCE	framework for monthly and quarterly reporting
	▪ Appointment of Local CFOs, with dotted line to Business Unit CFO

51

Confirming all our targets for 2021

		FY17	Forecast	Target
			2020	2021
	KPIs
	Net Result A.M. Global (€ million)	189	350	4001
Global
External Client Revenues		32%
Asset	6%	35%
(% of operating revenues)
Management

	Operating Margin (%)2	46%	52%
Asset	Net Result A.M. Europe (€ million)		>310
Management	152
(announced in May 2017)
Europe

> 45%

Target 2020

300

1. Including € 50 million from M&A
2. Calculated as 1-cost income

52

FINANCIAL STRENGTH

AND RESILIENCE

CRISTIANO BOREAN

Group Chief Financial Officer

Operational, capital and liquidity strength underpin delivery of Generali 2021 plan

FULL COMMITMENT TO GENERALI 2021 FINANCIAL TARGETS EVEN IN A CHALLENGING CONTEXT

Increased contribution from additional expense reduction and debt optimization

COMMITMENT TO TECHNICAL EXCELLENCE REAFFIRMED AND ACCELERATED PRODUCT REBALANCING

Resilient Life margins and unmatched combined ratio track record

OUTPERFORMANCE VS. DEBT OPTIMIZATION TARGETS, WITH FURTHER POTENTIAL OPPORTUNITIES

• 200 million reduction in gross interest expense and € 1.9 billion deleverage

STRONG AND RESILIENT CAPITAL POSITION

Robust Solvency II at Group and major BUs, even in further stress scenarios

SUCCESSFUL IMPLEMENTATION OF CASH & CAPITAL MANAGEMENT FRAMEWORK

Ahead of Generali 2021 plan on Net Holding Cash Flow

54

Full commitment to Generali 2021 financial targets

FINANCIAL TARGETS	CURRENT STATUS

PROFITABLE GROWTH

CAPITAL MANAGEMENT

AND FINANCIAL OPTIMIZATION

INNOVATION AND DIGITAL TRANSFORMATION

6% - 8%

EPS CAGR RANGE1

2018 - 2021

€4.5 - 5.0 billion

CUMULATIVE DIVIDENDS

2019 - 2021

55% - 65%

DIVIDEND PAY-OUT RANGE2

>11.5%

AVERAGE RETURN ON EQUITY3

2019 - 2021

ON TRACK

ON TRACK

SUBJECT TO

REGULATORY ENVIRONMENT

2019 and 2021e ROE >11.5%

X 2020 impact of COVID-19 and one-offs

	1.	3 year CAGR; adjusted for impact of gains and losses related to disposals
55	2.	Adjusted for impact of gains and losses related to disposals
3.	Based on IFRS Equity excluding OCI and on total net result

Delivery of EPS growth underpinned by increased contribution from expense reduction and debt optimization

COMPONENTS OF EARNINGS PER SHARE GROWTH

2018-2021 CAGR1	PROFITABLE	CAPITAL MANAGEMENT	INNOVATION AND
	GROWTH	AND FINANCIAL OPTIMIZATION	DIGITAL TRANSFORMATION

					ca. 2%	6-8%
Investor		ca. 2%	ca. 1%	>6%
Day 2018
ca. 2%	ca. 1%
Growth	Efficiency	Investments, Asset	Active debt	Total before	Capital	Total
and profitability		and Wealth Management	management	capital	redeployment
				redeployment
Update		=			=	ON TRACK
vs Investor
Day 2018

▪ Strong delivery in P&C	▪ Increased expense	▪ On track to deliver on	▪ Savings of gross	▪ 4-5%2018-2021	▪ Selective and
with best-in-class	reduction target	Global asset and	interest expense	CAGR1		disciplined approach
underwriting and	by € 100 million	wealth management	of € 200 million			to capital
limited COVID-19	to € 300 million with	strategy	(vs target of € 70-140			redeployment
impacts	further cost actions		million)		▪ Up to € 2.5 billion
	and new ways of
▪ Apart from the adverse	working in Insurance		▪ € 1.9 billion stock			still available
impact from	Europe		reduction from
Switzerland, resilient				repayment of bonds
Life underlying				already securing target
performance despite				of € 1.5-2.0 billion
rates headwinds
			1. Adjusted for impact of gains and losses related to disposals

56

Life: sustainable growth driven by Protection and Unit-Linked business

Active and progressive portfolio rebalancing: net inflows concentrated in preferred protection and unit-linked lines

Evolution of net inflows and total reserves (€ billion)

Savings

Protection

Unit Linked

Reserves

NET INFLOWS

8			160	4			110	6			110
								4			90
6											RESERVES
	Fondo						0
2		100	2			90			70
		Cometa
							2
4
											50
			40	0			70
											30
0			(20)	-2			50	-2			10
2018	2019	2020	2023	2018	2019	2020	2023	2018	2019	2020	2023
		Expected	Projection			Expected	Projection			Expected	Projection

Reshaping traditional savings: continuous decrease and reshaping of guarantees allowing to sustain financial margins even in the current low interest rate environment

Italy benefits from fee-based business and strong development of non-guaranteed savings business

Weight of Savings business on total reserve and average guarantee (%)		Savings with Guarantee		Savings w/o Guarantee		Guarantees

100%
2%			14%
80%
1.2%	1.1%
60%		1.0%
86%			0.9%
40%
20%				*
				0.7%
0%
2018	2019	2020	2023
			Expected	Projection

1.5%	100%					1.1%	100%
	80%					1.0%	80%
1.3%
		73%				0.9%
1.1%	60%				0.8%	60%
0.9%	40%	0.7%				0.7%	40%
0.7%	0.7%
			0.6%
0.7%	20%				0.6%	0.5%	20%
0.5%	0%	2018	2019	2020	2023	0.4%	0%
				Expected	Projection

1.9%	1.7%	2.0%

1.5%

1.6%

			1.1%	1.2%
				0.8%
47%
				0.4%
				0.0%
2018	2019	2020	2023
		Expected	Projection

*Illustrative level, associating a conservative 0% guarantee to the 14% business	Average guarantees allowing for the impact of the ZZR reference rate
without guarantee (i.e. with guarantee in case of death only)

57

Management of the Swiss Unit Linked with guarantees run-off portfolio

PORTFOLIO	▪	Regular premium closed portfolio with c. CHF 8 billion in-force reserves
	and 2.4% average guarantees at maturity (YE19), partially hedged
DESCRIPTION
▪	Product with high loadings and fees and with attached risk coverages

ILLUSTRATIVE CUMULATIVE CONTRIBUTION TO IFRS GUARANTEE RESERVE BEFORE PRODUCT TECHNICAL PROFITS & FEES

Path after increased contribution and acceleration

PROACTIVE CAPITAL MANAGEMENT ACTIONS BEING IMPLEMENTED

• Lengthening of the asset duration
• Dynamic hedging extension
• Capital increase of CHF 400 million in 4Q20 to provide an additional cushion in order to land to about 150% SST1 ratio as of current conditions

Path before increased contribution and acceleration

ACCOUNTING GROUP IFRS VIEW GUARANTEE RESERVE

• Guarantee reserve put aside progressively to finance in advance future cost of guarantees. (stock at YE19 CHF 1.3 billion)
• In view of lower interest rates and COVID-19 impact on equity markets:
• • More prudent financial assumptions
  • Accelerated reserving pattern
  • Future variances to be financed linearly in the next seven years

2020 Acceleration

Increased contribution

2019 2022 2025 2028 2031 2034 2037 2040 2043 2046 2049

CONTRIBUTION TO THE GUARANTEE RESERVE

(Group IFRS view), CHF billion

0.6

	▪ Solvency II already embeds the full economic view
	▪ Solvency II PVFP of the Unit Linked runoff portfolio, mainly in view
ECONOMIC	of the deteriorated market conditions moved from breakeven at YE18
VIEW	to CHF -0.6 billion at HY20 (CHF -1.1 billion decrease not considering
	guarantee reserves contributions)
	▪ Solvency II PVFP for the whole Swiss life business is slightly positive

0.4

0.3

0.2 0.2

2017	2018	2019	2020	2021
			Exp.	Exp.

1. Swiss Solvency Test

58

Commitment to maintaining technical excellence in P&C

GROSS WRITTEN PREMIUMS1 (€ billion; ∆ LFL2)

		20.7	20.6	21.5	16.6
		(+1.7%)	(+3.3%)	(+3.9%)	(+0.0%)
International & Other	26%	24%	24%	26%
Austria, CEE & Russia	17%	18%	20%	20%
France	12%	13%	13%	13%
Germany	18%	18%	18%	18%
Italy	27%	26%	26%	23%
		YE17	YE18	YE19	9M20
Share of Non Motor GWP	59.8%	60.7%	61.7%	60.7%

COMBINED RATIO1

(%)

• Leadership position in retail / SME segment with high quality, diversified portfolio
• Robust top-line growth, with a focus on high margin markets and products
• Consistent delivery of best-in-class CoR underpinned by disciplined underwriting across markets
• Continued actions to further drive technical excellence

100%

Italy

95%

France

90%

Germany

Austria, 85%

CEE &

Russia 80%

YE17

YE18

YE19

9M20

• • Claims management optimization
  • Technical pricing
  • Product design
• Strong reserving levels maintained

Group

92.8%

93.0%

92.6%

89.7%

1. Figures are presented on historical basis, without excluding asset disposals
2. Like for like comparison versus previous year

59

Successful delivery of debt optimization with a commitment to sustainability

INTEREST EXPENSE REDUCTION

Gross of tax (€ million)

FINANCIAL DEBT REDUCTION

(€ billion)

11.53

673

473

Plan Baseline	Exp YE 2021
Plan seline	End of January 020
2017

OVERACHIEVED

€ 200 million

reduction vs target

of € 70-140 million

9.68

ACHIEVED

€ 1.9 billion

debt reduction

already securing target

of € 1.5-2.0 billion

Plan Baseline	1
9M 2020
Plan eline	End of January 2020
2018

• Since the launch of Generali 2021 strategic plan, the Group has reduced its external debt position by € 1.9 billion2
• Average interest cost reduced from 5.71% at FY17 to 4.91% as of 9M20
• Development of the Green Bond Framework with the issuance of the 2 green bonds with maturities 2030 and 2031 backed mainly by Green Real Estate assets
• 1. The Adriatic Slovenica subordinated debt of € 50 million is not included, consistently with the Investor Day 2018 target definition.
  2. The c. €1.9 billion is composed by € 1.75 billion of nominal amount of bonds reimbursed and additional € 150 million debt reduction related to FX hedges on GBP debt reimbursed,

60	partly compensated by hedging derivatives MtM movements. The Adriatic Slovenica subordinated debt is not included, consistently with the Investor Day 2018 target definition.

Well-balanced debt maturity profile with opportunities for further improvement in cost

DEBT MATURITY PROFILE EVOLUTION

(€ million equivalent)

FY18												9M20
												Senior			average interest cost
												Hybrid
															of 6.4%
				2,000								Subordinated
						1,750		1,000									1,750		1,000				Green Bonds
						1,500									1,516
		1,250						1,250						769				1,250
										850										850
750			552																500	750	600
				31			390							185				386
																					-
2019	2020	2021	2022	2023	2024	2025	2026	2027	2028			2020	2021	2022	2023	2024	2025	2026	2027	2028	2029	2030	2031

• Proactive management of refinancing risk: the 2.6 billion debt maturity in 2022 has been reduced by 1.6 billion in 2019 through two liability management transactions 2019 and 2020:
• • This lengthened the average maturity from 5.3 years at YE18 to 5.9 years today
  • Final residual amount to be refinanced in 2022 gives flexibility in timing and potential capital management optimization actions
• Smoother and longer debt profile will help insulate the Group from financial markets volatility
• The group will maintain a proactive and opportunistic approach to manage its 2022-2024 senior and subordinated liabilities having an overall average interest cost of around 6.4%

61

Solvency still resilient to external shocks

MAJOR BUs1 SOLVENCY POSITION

(Regulatory, %)

THE MOVEMENTS BETWEEN	Expected impact of Internal Model extension to Operational Risk
FY2019 AND 9M2020
INCLUDE:	214	203
▪ Yield curve ≈ -45 bps
	150

▪ Equities ≈ -15%

With +125 bps of BTP spread, no activation of Italian country VA

• BTP spread ≈ -5 bps

▪ Corp. spreads ≈ +25 bps
343	324
STRESS SCENARIO	150
HYPOTHESIS ON 9M2020

• Yield curve -25 bps

▪ Equities -20%
▪ BTP spread +125 bps	228	189
	150
▪ Corp. spreads +125 bps
	YE19	9M20	9M20 Proforma
			stress scenario2

GROUP SOLVENCY POSITION

(%)

Expected impact of Internal Model extension to Operational Risk

224	203	150
YE19	9M20	9M20 Proforma
		stress scenario2

• Ability to manage capital position underpinned by capital management actions including asset duration lengthening and equity de-risking performed in the last months
• Solvency position supported by the strong capital generation, driven by Life New Business and Non Life Current Year Best Estimate result
• 1. Generali Italia and Generali Deutschland solo view; Generali France consolidated view
  2. Stress scenarios with the hypothesis presented on this slide

62

Capital flexibility and reinforced capital management framework ensure strong remittances

TOTAL REMITTANCE FROM OPERATING ENTITIES, SPLIT BY THEIR SOLVENCY II RATIO1, 2

2019	2020		2021E
2%	3%	15%	9%

34%	26%

>250%2

170% - 250%

<170%

64%

71%

76%

• Significant part of Group remittances originated from operating entities with very strong standalone solvency position
• Business units solvency position proved to be resilient to external shocks, providing a positive outlook on future remittance capacity in full compliance with the Group Risk Appetite Framework and Solvency II regulation
• Despite COVID-19 related external shocks, 100% of the expected Group remittance for 2020 has been secured, fueling the strong cash position of the Parent Company

	Coverage: 22 operating entities representing ca. 95% of intra-group remittances (excluding dividends paid by pure financial holdings, not regulated under Solvency II)
63	1.	Cash view remittances, compared to previous year's Year End solvency position
2.	Including intra-group dividends from Asset Management companies

Successful implementation of Capital Management and Cash Management Strategies

REMITTANCE	NET HOLDING CASH	NORMALIZED
FROM BUs	FLOW	CAPITAL
		GENERATION

> € 9.5 billion

> € 7 billion

> € 10.5 billion

(+35% on 3 years)

cumulative

ON TRACK		AHEAD OF GENERALI		ON TRACK
	2021 PLAN

CASH CENTRALIZATION STRATEGY

• Treasury centralization extension to new entities (incl. newly acquired entities) & new centralization levers enabled
• Enhanced further cash planning discipline and control

ON TRACK

• Optimized capital allocation processes across businesses resulted in improved capital and cash management at holding level
• Strong cash position even after deduction of dividend and of capital increase in Switzerland

64

Operational, capital and liquidity strength underpin delivery of Generali 2021 plan

Full commitment to Generali 2021 financial targets despite challenging context

Continued focus on technical excellence with accelerated product rebalancing

Outperformance vs. Debt optimization targets, with further potential opportunities

Strong and resilient capital position secures our commitment towards dividend distribution

Effective Cash & Capital Management framework to further enhance financial flexibility

65

CLOSING REMARKS

PHILIPPE DONNET

Group Chief Executive Officer

Q&A SESSION

ANNEXES

Disclaimer

Certain of the statements contained herein are statements of future expectations and other forward-looking statements.

These expectations are based on management's current views and assumptions and involve known and unknown risks and uncertainties.

The user of such information should recognise that actual results, performance or events may differ materially from such expectations because they relate to future events and circumstances which are beyond our control including, among other things, general economic and sector conditions.

Neither Assicurazioni Generali SpA nor any of its affiliates, directors, officers employees or agents owe any duty of care towards any user of the information provided herein nor any obligation to update any forward-looking information contained in this document.

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

The use by Assicurazioni Generali S.p.A. of any MSCI ESG Research LLC or its affiliates ("MSCI") data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of Assicurazioni Generali S.p.A. by MSCI. MSCI services and data are the property of MSCI or its information providers, and are provided 'as-is' and without warranty. MSCI names and logos are trademarks or service marks of MSCI.

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Team

Assicurazioni Generali	Giulia Raffo	Emanuele Marciante	Stefano Burrino
	Group Head of Investor & Rating Agency Relations	Credit & Rating Agency Relations	Investor Relations
Piazza Duca degli Abruzzi 2
34132 Trieste, Italy	[e-mail]	[e-mail]	[e-mail]
Fax: [phone]
[phone]		[phone]		[phone]
e-mail: [e-mail]
www.generali.com

Rodolfo Svara		Martina Vono		Marta Porczynska	Anna Jagiello
Investor & ESG Relations		Investor Relations Associate		Event Coordinator	Event Coordinator
[e-mail]		[e-mail]		[e-mail]	[e-mail]
[phone]	[phone]	[phone]		[phone]

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Glossary (1/2)

Acronym	Description
ACEER	Austria, Central and Eastern Europe and Russia
AUM	Total market value of all the financial assets which a financial institution manages on behalf of its clients and themselves including general accounts
(Assets Under Management)	investments, all Group Unit Linked, third party AuM
CAGR	Mean annual growth rate of an investment over a determined period of time longer than one year; it describes the rate at which an investment would
(Compound Annual Growth Rate)	have grown if it had grown at a steady rate
CoR	Loss ratio plus expense ratio (acquisition expenses + general expenses) divided by retained premiums
(Combined Ratio)
DPS	Dividend per Share
Earnings	Net Result
ESG	Environmental, Social and Governance
EPS	Earnings per Share
GDPR	The General Data Protection Regulation (GDPR) sets guidelines for the collection and processing of personal data of individuals within the European
(General Data Protection Regulation)	Union
GDWP	Gross written premiums of direct business
(Gross Direct Written Premium)
GWP	Gross written premiums of direct business and accepted by third parties
(Gross Written Premiums)
IoT	Internet of Things
M&A	Transactions in which the ownership of companies, other business organizations or their operating units are transferred or combined
(Mergers & Acquisitions)

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Glossary (2/2)

Acronym	Description
PP / p.p. / ppt	Percentage points
P&C	Property and Casualty lines of business
Relationship NPS	Management tool used to gauge the loyalty of a firm's customer relationships
RoE	Ratio between net profit and Equity
(Return on Equity)
SCR	Level of eligible own funds that enables insurance and reinsurance undertakings to absorb significant losses, giving reasonable assurance to
(Solvency Capital Requirement)	policyholders that payments will be
SME	Businesses whose personnel number falls below <250 people, and either turnover <50 million € or balance sheet total <43 million €
(Small - Medium Enterprises)
YTD	Year To Date

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