• Increase in total premiums of 10.1% to € 13.8 bn
  • Combined ratio at good level despite high natural catastrophe claims
  • Improvement of net investment income in low-interest environment

Cologne - In the first nine months of 2013, the Generali Deutschland Group achieved a net profit of € 333 m (Q1-3 2012: € 342 m; 2012 figures in brackets hereafter), despite a high claims expenditure of € 137 m (net of reinsurance) for natural disasters caused by floods, storms and hailstorms. The net profit of the first three quarters of the year 2013 thus remains within the target corridor for the current business year. A major contribution to this result went from the substantial 15.2% improvement of net investment income. The Generali Deutschland Group includes, among others, Generali Versicherungen, AachenMünchener, CosmosDirekt and Central Krankenversicherung.

As at September 30, 2013, the Group witnessed a premium development above the market average. The total premiums of direct business rose by 10.1% to
€ 13,767 m. This development is primarily attributable to the life insurers of the Generali Deutschland Group which achieved an overall premium growth of 15.1% due to a rise in single premium income. The premium income of the property and casualty insurers also witnessed a strong 4.4% growth. Despite the high level of claims due to natural perils, the combined ratio stood at the healthy level of 95.9% and again was very good compared to the market.

In a persistently difficult environment of financial markets, investment income (net) also saw a substantial increase to € 3,141 m (2,762 m). This was primarily due to a higher level of realized capital gains from the disposal of investments.

"The first nine months were affected by extraordinary claims caused by natural perils. Nevertheless we kept our successful course and achieved profitable growth. Thanks to our financial strength and our positive technical business we proceed from the assumption that we will reach our ambitious targets also for the full year 2013", said Dietmar Meister, Chief Executive Officer of Generali Deutschland Holding.

Strong premium growth in life insurance
In direct business, thelife insurersof the Group achieved total premiums, including savings portions and the premiums of investment contracts, of € 9,354 m. This equals a substantial 15.1% increase compared to the first nine months of 2012. The slight decrease in regular premium new business from € 524 m to 510 m was more than offset by single premium new business which rose substantially from € 2,290 m to 3,464 m. This strong growth was primarily attributable to increases of business due to the pension products "Flexibles Vorsorgekonto" of Cosmos Lebensversicherung and "3-Phasen-Rente" of Generali Lebensversicherung. The share of capitalization products in new business was reduced, as planned. All in all, the new business in terms of APE (Annual Premium Equivalent1) rose markedly by 13.8% to € 857 m.

In the first nine months of 2013, the business development inhealth insurancecontinued to be marked by the strategic reorientation of Central. Compared to the first three quarters of 2012, premium income decreased by 4.9% to € 1,616 m. Strong growth was achieved in new business with supplementary covers. In this context, the early market positioning of Central regarding the "Pflege-Bahr" long-term care product had a particularly positive impact.

Combined ratio at good level despite high natural catastrophe claims
Theproperty and casualty insurersof Generali Deutschland witnessed strong growth in the first nine months of the year 2013: Thanks to the Group's distribution strength and due to a strong demand for newly developed innovative products, the gross premiums written of direct business increased by 4.4% to € 2,800 m.

Apart from the strongly grown portfolio of insurance contracts, the increased net claims expenditure in the first nine months of 2013 is in particular attributable to the substantial level of claims caused by floods, storms and hailstorms which amounted to € 137 m (net of reinsurance). Claims and benefits rose to € 1,688 m (1,604 m). Nevertheless the combined ratio of 95.9% is only slightly above the previous year's level (95.2%). This is due to the positive impact of premium growth and a lower expenditure for major individual claims and frost damage. Compared to the market, the combined ratio thus remains at a very good level.

Substantial improvement of net investment income
In a persistent environment of low interest rates, Generali Deutschland was in a position to strongly increase its investment income (net) as at September 30, 2013 by 15.2% to € 3,141 m, mainly by means of realized capital gains."Thanks to our good net investment income we continue to be able to achieve a comparatively attractive net yield for our customers which at the moment is at about 4%", explains Dr. Torsten Utecht, Chief Financial Officer of Generali Deutschland Holding."In the interest of our customers, however, further political action would be required in the future in order to better maintain the profitability of investments in a low-interest environment. Currently the additional interest reserve, which has to be set up in line with the accounting principles of the German commercial code, requires, in fact, the realization of a higher level of capital gains", Utecht continues. As far as new investments are concerned, the Group maintains its balanced risk-return strategy. The focus is on corporate bonds and on the issuers of high-quality supra-national bonds.

Thanks to its good position in technical business, Generali Deutschland is confident to achieve its ambitious targets for the full year. Provided there are no further extraordinary claims in the course of the year and investment income is not subject to major adverse impacts, Generali Deutschland maintains its profit target for the Group.

The advantages of being part of a strong national and international Group and the diversity of brands and distribution channels are the foundations for a sustainable and successful development of the Generali Deutschland Group. On the basis of the longstanding strategic partnership with Deutsche Vermögensberatung and its about 37,000 financial advisors as well as the advisory strength of its sales networks and distribution partners, the Group expects to further expand its primary market position in Germany in the retail and small to medium-sized commercial segments.

Under IFRS, according to the German regulation, technical items of the Balance Sheet and Statement of Comprehensive Income are presented based on US-GAAP.

The Group Interim Announcement within the second half of 2013 is available on the Internet at www.generali-deutschland.de(Investor Relations/Reports)

1market standard to determine new business premium income, equalling regular premiums plus 10% of single premiums

Forward-looking statements
To the extent this Release includes prognoses or expectations or forward-looking statements, these may involve known and unknown risks as well as uncertainties. The actual results and developments may therefore differ materially from the stated prognoses or expectations. Besides other reasons not specified here, deviations may be the result of changes of the overall economy or of the competitive situation, especially in core activities or core markets. Deviations may also result from the extent and the frequency of claims, lapse ratios, mortality or morbidity rates or tendencies. The developments of financial markets and of exchange rates of foreign currencies as well as amendments of national and international law, particularly in respect of tax rules, may have an influence. Terrorist attacks and their consequences may increase the probability and the extent of deviations. The company is under no obligation to update the statements made in this Release.

Generali Deutschland Group
With a premium income of about € 17.2 bn and over 13.5 million customers, the Generali Deutschland Group is the second-largest primary insurance group in the German market. The Generali Deutschland Group includes companies such as Generali Versicherungen, AachenMünchener, CosmosDirekt, Central Krankenversicherung, Advocard Rechtsschutzversicherung, Deutsche Bausparkasse Badenia and Dialog as well as the Group-owned service providers Generali Deutschland Informatik Services, Generali Deutschland Services, Generali Deutschland Schadenmanagement and Generali Deutschland SicherungsManagement.

Contact

Generali Deutschland Holding AG
Dr. Andrea Timmesfeld
Head of Corporate Communication
Tunisstrasse 19-23
50667 Cologne (Germany)

Phone: +49 (0) 221 4203-1116
Fax: +49 (0) 221 4203-3830
E-Mail:presse@generali.de
http://www.generali-deutschland.de

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