Generali : Presentazione risultati 1H2022 IFRS 17/9 comparatives

IFRS 17/9

GROUP RESULTS 1H 2022 COMPARATIVES

2

KEY MESSAGES

Group 1H 2022 Operating Result broadly stable under the new accounting standards

Life Operating Result higher, unlocking the value of the in-force business

1H 2022 P&C Operating Result reflects specific inflation-related reserve strengthening

New Combined Ratio formula with no impact on P&C Operating Result

Simplified disclosure with significantly smaller Consolidation Adjustments

Shareholders' Equity more stable and € 8 bn higher than under IFRS 4

3

IFRS17/9 GROUP KEY FIGURES¹

• Operating Result decreases to € 2,907 m mainly due to P&C segment, mainly reflecting the inflation reserve strengthening
• Adjusted Net Result at € 1,448 m, neutralizing the impact, net of taxes and minorities, of € -534 m for the profit & loss on assets at FVTPL and € -50 m for hyperinflation effect (IAS 29)
• Adjusted EPS increases to € 0.92
• Net Result at € 864 m, reflecting the negative mark-to-market valuation of asset at FVTPL in the Non Operating Investment Result

€ million

1H 2022	IFRS 4 / IAS 39	IFRS 17/9	Δ
pro-forma
Operating Result2	3,099	2,907	(192)
Adjusted Net Result3	1,402	1,448	46
Adjusted EPS3 (€)	0.89	0.92	+0.03
Net Result	1,402	864	(538)

Group Shareholders' Equity

19,078

27,197

8,119

1. 2022 comparative data may be subject to change following the completion of audit process on 1H23 figures
2. Starting from 1Q 2023 the bancassurance JVs of Cattolica (Vera and BCC companies) are considered a 'disposal group held for sale' under IFRS 5 and therefore their results are reclassified in the 'Result of discontinued operations'. Consequently, both in IFRS 4 / IAS 39 and IFRS 17/9 the JVs contribution is included in the 'Result of discontinued operations'. The reconciliation between reported IFRS 4 / IAS 39 and the pro-forma figures is provided in the Annex
3. Adjusted Net Result and EPS definitions include adjustments for 1) profit or loss on assets at fair value through profit or loss (FVTPL) on non-participating business and shareholders' funds, 2) hyperinflation effect under IAS 29, 3) amortisation of intangibles related to M&A, 4) impact of gains and losses from acquisitions and disposals

4

OPERATING RESULT

€ million

		1H 2022					IFRS 4 /
						IAS 39		IFRS 17/9		Δ
								pro-forma
		Life					1,658				1,879		221
		P&C					1,284				998		(286)
		Asset & Wealth Management				503				491		(11)
		Holding & Other businesses				121				(149)		(271)
		Consolidation Adjustments				(467)				(311)		156
		Operating Result				3,099				2,907		(192)
				221										156
	3,099			(286)	(11)	(271)
															2,907
IFRS 4 / IAS	Life	P&C		A&WM		Holding &	Consolidation	IFRS 17/9
39 pro-forma								Other		Adjustments
										businesses

Key remarks

• Life: higher operating result unlocking the value of in-force and new business
• P&C: lower, mainly reflecting the inflation-related 2022 reserve strengthening, not affecting IFRS 4 numbers
• Asset & Wealth Management: slightly lower, mainly due to lower net realized gains from AFS instruments of Banca Generali
• Holding & Other businesses: fully controlled investment funds (i.e. Lion River, real estate funds) are now reported in look- through directly in the segments in which the investments are held
• Less Consolidation Adjustments, due to the look-through reporting of controlled investment funds

5

LIFE OPERATING RESULT

€ million

1H 2022	IFRS 4 / IAS 39
pro-forma
Technical margin	3,617
Operating Investment Result	921
Expenses	(2,879)
Life Operating Result	1,658

1H 2022	IFRS 17/9
CSM Release	1,493
Risk Adjustment release	76
Loss component	(59)
Experience variance and other technical result	(16)
Other operating income and expenses	(33)
Operating Insurance Service Result	1,461
Operating Investment Result	418
Life Operating Result	1,879

Key remarks

• Different accounting metrics, profit emergence and presentation:
• • Operating Insurance Service Result mainly supported by the CSM release
  • Operating Investment Result mostly coming from current income of portfolios under General Measurement Model and Shareholders'
    Equity funds

• Operating Result IFRS 17/9 vs IFRS 4 / IAS 39

221