Assicurazioni Generali

Earnings Release • Mar 16, 2017

GENERALI GROUP 2016 Results

The like for like change of written premiums, life net inflows, APE and NBV is on equivalent terms (on equivalent exchange rates and consolidation area).

• I. Business Overview Page 3 Philippe Donnet – Group CEO
• II. 2016 Group Financials Page 15 Luigi Lubelli – Group CFO

III. Backup Page 43

I. Business Overview

Philippe Donnet – Group CEO page 4

3

Key messages

Highest operating result ever

Strong cash generation and capital position supports 11% increase in dividends

Best in class performance and improving everywhere

Strong team in place, successfully accelerating the implementation of our plan

2016: Excellent performance in tough markets

BEST OPERATING RESULT IN OUR HISTORY… …DESPITE UNFAVOURABLE MARKETS

OPERATING RESULT (Euro m)

NET RESULT

10 YEAR GERMAN GOVT. BUND YIELD (%, Average through year)

EQUITY MARKET DEVELOPMENT

(% change from beginning of year)

Increased dividend supported by cash generation and capital strength

On track to deliver financial targets

KEY MID-TERM FINANCIAL TARGETS 2015-2018

> € 7 bn of cumulative Net Operating Cash (2015-2018) DELIVERY TO DATE 2015-2016

€ 3.5 bn

Delivered cumulatively as at end 2016

> € 5 bn

of cumulative dividends (2015-2018)

Delivered cumulatively as at end 2016

> 13% of Operating RoE on average (2015-2018)

delivered on average by end 2016

Best in class performance amongst peers

P&C COMBINED RATIO IMPROVES, REMAINS BEST IN CLASS

COST RATIOS CONFIRM LEADING EFFICIENCY

(1) Life Admin Ratio = Administrative costs / (Operating Result + Administrative costs)

All business units showing positive momentum

INCREASING LIFE MARGIN

EVEN BETTER COMBINED RATIO

STRONGLY GROWING CASH REMITTANCE

Our 2016 Investor Day commitments

(1) New business / portfolio guarantee and reserve mix targets by end 2018. Customer retention and brand preference targets by end 2019

2016 demonstrates consistent progress towards our goals

(1) On average of new business premium. (2) Weighted average covering 23 BUs

© Generali March 16, 2017 Results 2016

We will deliver our cost target one year ahead of plan

• Revised ambition to achieve cost savings target one year early
• − Mature market cost reduction of €200m to €5.3bn to be delivered by FY2018 (previously: FY2019)

A successful international insurance group

Uniquely positioned in Europe

Strong proprietary distribution

Excellent technical and operational capabilities

Momentum on innovation

• ~90% of business from Europe, the largest profit pool in the world
• Top 5 in 10 European markets out of 20
• Largest European proprietary distribution network
• Strong Direct presence in many markets
• Leading combined ratio
• Strong life margins with low guarantees
• Streamlined operations
• Leader in motor telematics
• Connected platform (car, home, health, life)
• Innovative partnerships

Key messages

Highest operating result ever

Strong cash generation and capital position supports 11% increase in dividends

Best in class performance and improving everywhere

Strong team in place, successfully accelerating the implementation of our plan

II. 2016 Group Financials

Luigi Lubelli – Group CFO

Profit & Loss and Balance Sheet page 16 Business review page 27

CFO – Key 2016 financials 16

Key 2016 financials at a glance

	FY15	FY16	D (LFL(1))
VOLUMES
Gross Written Premiums (Euro m)	74,165	70,513	-3.9%
Life	53,297	49,730	-6.3%
P&C	20,868	20,783	+2.1%
Life Net Inflows	14,920	12,049	-18.5%
PROFITABILITY
Operating result (Euro m)	4,785	4,830	+0.9%
Operating RoE	14.0%	13.5%	-0.5 pts
Net result (Euro m)	2,030	2,081	+2.5%
New Business Margin	21.0%	25.9%	+4.8%pts
Combined Ratio	93.1%	92.5%	-0.7%pts
CASH & DIVIDENDS
Net operating cash generation (Parent view, Euro m)	1,657	1,877	+13.3%
Dividend per share (Euro)	0.72	0.80	+11%
CAPITAL
Shareholders' equity	23,565	24,545	+4.2%
Solvency II ratio (regulatory view) (%)	171%	177%	+6%pts
Solvency II ratio (internal model view) (%)	202%	194%	-8%pts
March 16, 2017	Results 2016

(1) Constant perimeter and exchange rates

VOLUMES

Key 2016 financials at a glance – Main drivers

GROSS WRITTEN PREMIUMS reflect disciplined product offering, and in a challenging environment for Unit Linked at the beginning of the year, more than offset by improving margins. Growth in P&C driven by Motor across many geographies

• PROFITABILITY OPERATING RESULT improves to its highest level ever, due to both Life and P&C. Improving technical results more than over-compensate pressure from declining investment income
• OPERATING ROE remains above target level, slightly lower vs. 2015 reflecting the growth in the equity base and temporarily higher interest costs due to pre-financing operations

• NET RESULT increases reflecting the higher operating performance

• NET OPERATING CASH GENERATION significantly higher, due to improved remittances from the operating companies to the parent

• DIVIDEND PER SHARE continues to grow, to Euro 0.80 per share, taking us a step further towards our 2018 target, and equivalent to a dividend yield of 5.6% based on year end closing price

CASH & DIVIDENDS

SOLVENCY II RATIO: Regulatory Solvency II ratio improves, reflecting the successful application to bring the French Life business within the scope of the Internal model. The gap between this and the internal model view consequently significantly narrows, from 31p.p. to 17p.p

CFO – Profit & Loss 18

Operating result by segment

(Euro m)			Including: (€ 62 m): Banca Generali (€ (€	57 m): Other Businesses (lower gains) 30 m): Higher Operating Holding Expenses	+0.9%
4,785	162	58	(150)	(25)	4,830
FY15	Life	P&C	Holding & Other businesses	Cons. Adj	FY16
FY 16	3,127	2,044	(91)	(251)	4,830
FY 15	2,965	1,987	59	(226)	4,785
D	+5.5%	+2.9%	n.m.	+11.1%	+0.9%

From operating result to net profit

(Euro m)

Total dividends paid by operations

(1) Net Operating Result = Operating profit by country, after deduction of taxes at normal national rates, and minority interest.

(2) Excluding parent company reinsurance result

(3) The amounts indicate the remittance towards dividend payments expected from each country. Occasionally, for capital management purposes, liquidity may be upstreamed by other means, such as loan repayments

© Generali March 16, 2017 Results 2016

Net Operating Cash Generation

Net Operating Cash Generation (Euro bn)

Dividends paid by subsidiaries 2,019

Result of reinsurance (1) 336

Interest & holding expenses (1)	(698)	(730)
Net Operating Cash generation	1,657	1,877
Group dividend paid / proposed	1.1	1.2
Coverage ratio	1.5x	1.5x

2016

2,435

171

• Strong momentum in dividends from all main countries
• 13% increase in Net Operating Cash generation, supporting growth in dividend paid
• Group dividend coverage ratio stable at 1.5x

(1) Operating results, net of normalised taxes and minorities

2015

Shareholders' equity CFO – Balance Sheet 22

CFO – Solvency 2

Solvency II: Regulatory View & Internal Model View

Eligible own funds vs. Required capital

(Euro bn)

Key sensitivities (Internal Model View) (%)

23

Solvency II: Internal Model View CFO – Solvency 2

Strong development, driven by organic capital generation

(1) Eligible Own Funds in excess of Solvency Capital Requirement (full internal model view)

24

High quality capital mix

Tiering of Solvency II Capital (FY16)

	Generali Regulatory view
	Euro bn	% of total
Tier 1	35.6	86%
Unrestricted Tier 1	31.8	77%
Restricted Tier 1 (Hybrid)	3.7	9%
Tier 2	5.4	13%
Tier 3	0.2	0%
Total Own Funds	41.2	100%

Regulatory SCR covered 1.4x by Unrestricted Tier 1

Applicable Solvency II limits (FY16)

	Solvency II limits	FY16 Generali Regulatory view
Restricted Tier 1	< 20% of total Tier 1	9% of total Tier 1
Tier 2 + Tier 3	< 50% of SCR	24% of SCR
Tier 3	< 15% of SCR	1% of SCR

Quality of capital far in excess of Solvency II requirements: Euro ~10bn of headroom against maximum limits

II. 2016 Group Financials

Luigi Lubelli – Group CFO

Profit & Loss and Balance Sheet page 16

Business review page 27

Cost development – Delivery against 2013 target

OpEX Cost development – full perimeter (Euro bn)

We fully delivered against our 2013 commitment to:

• Create €1bn of gross savings by 2016
• Keep nominal costs flat compared to the 2012 baseline, after funding inflation and investments

In future, we will deliver nominal reductions in mature markets

OpEX Cost development – Mature markets (1) (Euro bn)

• Significant net reduction already achieved across regions in mature markets
• We will deliver one year early our target of 200m reduction in mature markets to 5.3bn(2)

(1) Including Head Office; Like for Like view

(2) Original expectation as per November 2016 investor day was 5.3bn mature market OpEx in 2019. Now targeting achievement in 2018. Assuming constant currencies and perimeter.

28

Life key financial indicators

(Euro m)	FY15	FY16	LFL D
VOLUMES
Gross written premiums	53,297	49,730	-6.3%
Net inflows	14,920	12,049	-18.5%
APE	5,210	4,847	-6.6%
PROFITABILITY
Life operating result	2,965	3,127	+5.5%
Life operating ratio on investments (bps)	74	74	-
New Business Value	1,097	1,256	+14.6%
Margin on APE (%)	21.0%	25.9%	+4.8%pts

Life Operating result by driver

(Euro m)

FY 16	6,027	2,085	(4,985)
FY 15	5,909	2,260	(5,204)
D %	+2.0%	-7.7%	-4.2%

The improving technical margin and expense result more than offset the in investment result, which declines as a consequence of lower realized gains (down from the exceptionally high levels of FY15) and higher impairments

Life inflows and technical reserves(1)

(Euro m)

	FY15	FY16
Italy	7,646	7,197
France	1,147	438
Germany	2,997	1,560
CEE	589	501
EMEA	1,444	920
Americas	142	114
Asia	924	1,256
International	31	62
TOTAL	14,920	12,049

(1) Including liabilities related to investment contracts

+4.5%

Life new business analysis

• APE slowdown (-6.6%) as a consequence of the planned reduction in saving business (-9.7%). Positive trend in the Protection business (+12.4%).
• Further significant reduction of guarantees (from 0.60% at FY15 to 0.43% at FY16 in Euro area based on APE)
• Despite the worsening of the economic scenario, the excellent business mix and the lowering of guarantees strongly improved NBM(1) (+4.8%pts.) leading NBV at 1,256 m (+14.6%)

	APE		NBV			MARGIN ON APE
(Euro m)	FY15	FY16	LFL D	FY15	FY16	LFL D	FY15	FY16	LFL D
Italy	2,322	2,129	-8.3%	589	579	-1.8%	25.4%	27.2%	+1.8%pts
France	944	939	-0.4%	62	90	+37.0%	6.5%	9.6%	+2.6%pts
Germany	826	708	-14.2%	191	275	+44.3%	23.1%	38.8%	+15.7%pts
CEE	165	136	-16.8%	39	47	+21.2%	23.7%	34.8%	+10.9%pts
EMEA	645	544	-15.4%	174	212	+23.3%	27.0%	39.0%	+12.3%pts
Americas & Asia	308	391	32.8%	42	53	+33.2%	13.5%	13.5%	+0.0%pts
TOTAL	5,210	4,847	-6.6%	1,097	1,256	+14.6%	21.0%	25.9%	+4.8%pts

(1) Starting from 2016 the New Business methodology has been aligned with Solvency II framework in terms of Reference Rate and Required Capital. This change has a positive impact on NBM (+0.6%).

Life investment breakdown and performance

Life segment general account

(%) Current returns

		Euro m	%
Fixed income	FY15	9,877	3.4
	FY16	9,801	3.2
Equity	FY15	416	3.0
	FY16	520	3.9
Real Estate(1)	FY15	526	5.5
	FY16	543	5.7
Total(1)	FY15	11,112	3.4
	FY16	11,186	3.2

(1) Net of depreciation expenses

Guarantees

Current return vs existing portfolio guarantee (%)

Reinvestment return vs average new business guarantee (based on premiums) (%)

P&C key financial Indicators

(Euro m)	FY15	FY16	LFL D
VOLUMES
Gross written premiums, of which:	20,868	20,783	+2.1%
Primary Motor	8,129	8,023	+4.3%
Primary Non Motor	12,009	12,009	+0.5%
PROFITABILITY
Combined ratio (%)	93.1%	92.5%	-0.7%pts
Nat Cat impact (%)	1.6%	1.5%	-0.1%pts
P&C operating result	1,987	2,044	+2.9%
March 16, 2017 © Generali	Results 2016

P&C Operating result by driver

(Euro m)

FY 16	1,396	945	(297)
FY 15	1,213	1,015	(242)
D %	+15.0%	-6.9%	+22.8%

• Positive technical performance with an improved combined ratio to 92.5% (-0.7%pts.)
• Decreased investment result due to continued low interest rate environment
• Lower result from other reflects some one-off positive effects in 2015

P&C gross written premiums trends

(Euro m)	FY15	FY16	LFL (1)	Of which: Primary Motor(2) LFL 	Of which: Primary Non-Motor(2) LFL 
Italy	5,947	5,701	-4.1%	-5.2%	-3.6%
France	2,538	2,514	-0.9%	-0.6%	-0.4%
Germany	3,608	3,651	+1.2%	+2.3%	+0.6%
CEE	1,976	2,041	+3.8%	+7.1%	+0.4%
EMEA	4,410	4,539	+3.4%	+4.8%	+3.2%
Americas	1,156	971	+27.1%	+33.7%	+6.2%
Asia	128	198	+54.6%	+31.3%	+15.5%
International	1,106	1,168	+5.6%	n.m.	+8.6%
Total	20,868	20,783	+2.1%	+4.3%	+0.5%

(1) Constant perimeter and exchange rates

(2) Direct premiums only – excluding reinsurance accepted

Combined ratio by country

(%)

	FY15	FY16	
Italy	89.1%	89.9%	+0.9%pts
France	100.2%	99.4%	-0.8%pts
Germany	92.4%	90.0%	-2.5%pts
CEE	90.1%	89.5%	-0.6%pts
EMEA	95.2%	93.3%	-1.9%pts
Americas	106.1%	102.7%	-3.5%pts
Asia	94.4%	100.5%	+6.1%pts
International Operations	85.9%	90.0%	+4.2%pts
Total	93.1%	92.5%	-0.7%pts

• Combined ratio at an excellent level in Italy, though higher than last year due to higher acquisition expenses (mainly linked to Non Motor) and a decline in average Motor premium
• Further improvement in France, returning to full year underwriting profitability in 2016
• Strong improvement in Germany thanks to better expense ratio (following restructuring actions) and lower Nat Cat losses (-0.3%pts. in respect of FY15)
• Combined ratio in CEE improves due to lower expense ratio (due to decreasing acquisition and administration costs)

Combined ratio analysis

P&C investment breakdown and performance

P&C segment general account

(%) Current returns

Focus on Holding & Other businesses segment

(Euro m)

	FY15	FY16	
Financial	434	370	-14.7%
of which Banca Generali(1)	252	190	-24.5%
Operating holding expenses	(429)	(459)	+7.0%
Other businesses(2)	55	(2)	n.m.
Total	59	(91)	n.m.

(1) Banca Generali's operating contribution as per Generali's view

(2) Including pure financial holdings, international service activities and any other non-core businesses

Final remarks

Highest operating result ever

Strong cash generation and capital position supports 11% increase in dividends

Best in class performance and improving everywhere

Strong team in place, successfully accelerating the implementation of our plan

Agenda

III. Backup

•	Cost
	Investments	46 page
	Financial debt	53 page
	Life EV	56 page
	Solvency 2	59 page

OpEx cost reconciliation

Reconciliation of general expenses from IFRS view to OpEx view (Euro bn)

Agenda

III. Backup

	Cost	44 page
•	Investments	46 page
	Financial debt	53 page
	Life EV	56 page
	Solvency 2	59 page

Assets under management

Fixed Income Portfolio(1)

(1) Rating changes in comparison with previous period reflect net sales as well as market movements; moreover further variations in some rating classes – mainly AAA - are due to a changed methodology in the rating attribution process, which foresees the use of internal rating when lower than the external one.

(2) Italian government bond exposure is 78% of BBB

(3) Duration gap = duration of fixed income assets – duration of liabilities x (Best estimate liabilities/Market Value of fixed income assets)

Fixed Income Portfolio by country

50.0 13.1 20.1 7.8 9.0 Other fixed Income Covered Corporate non fin. Corporate fin. Government Total Portfolio Euro 349 bn (%)

Reinvestment yield	FY15	FY16
Life	2.5%	2.0%
P&C	2.1%	1.4%

3

Focus on exposure to Italian banks

Market value at 31.12.2016 (Euro m)	LIFE	P&C	TOTAL
Senior	1,574	370	1,943
Lower Tier 2	1,111	141	1,251
Upper Tier 2	130	3	133
Tier 1	300	5	305
Other Subordinated	27	2	29
Equity	141	397	537
Total	3,282	918	4,199

Equity & Equity-like

49 6 45 Alternative funds: Euro 5 bn (%) Equity funds: Euro 4 bn (%)

Life P&C H&O

Life P&C H&O

Asset Allocation: Real Estate(1)

Total Portfolio: Euro 25 bn(1)

• (1) Data, at fair value, includes investment properties, own use assets, properties inventory and Real Estate indirect investment
• (2) Detail referred to direct investments in real estate only

Agenda

III. Backup

	Cost	44 page
	Investments	46 page
•	Financial debt	53 page
	Life EV	56 page
	Solvency 2	59 page

Focus on financial debt

(1) The amount of financial debt as of 2015 December, 31, includes the subordinated bond issued in October 2015, for a nominal amount of Euro 1.25 bn, to refinance 2016 callable hybrid bonds

(2) The amount of financial debt as of 2016 December, 31, includes the subordinated bond issued in June 2016, for a nominal amount of Euro 850 m, to refinance 2017 callable hybrid bond

Financial debt breakdown by expiry date/call date

Senior Hybrid Subordinated

Agenda

III. Backup

	Cost	44 page
	Investments	46 page
	Financial debt	53 page
•	Life EV	56 page
	Solvency 2	59 page

Life EV(1) roll-forward

(Euro m)

Life embedded value earnings (Euro m) Return on Life embedded value

Adjusted embedded value FY15	30,154	4.1%	RoEV
Embedded value earnings	1,239
Normalised Operating EV earnings(3)	3,867	12.8%	Normalised Operating RoEV

(1) Calculated with methodology and assumptions compliant with "Market Consistent Embedded Value Principles" as defined by CFO Forum

(2) " Other variance " includes model changes, extraordinary expenses and residual variance

(3) "Normalised Operating EV earnings" defined as NBV + Expected contribution + Operating variance

(4) Contract Boundaries

FY16 Life Embedded Value sensitivities

Agenda

III. Backup

•	Solvency 2	59 page
	Life EV	56 page
	Financial debt	53 page
	Investments	46 page
	Cost	44 page

Focus on SCR

Reconciliation of IFRS equity to Solvency II Eligible Own Funds

Solvency II Eligible own funds

(FY16, Euro bn, Internal model view)

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, Luigi Lubelli, 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.

Next Events

Team

Spencer Horgan Head of Investor & Rating Agency Relations Spencer.Horgan@Generali.com +44 20 7265 6480

Stefano Burrino

Investor Relations Stefano.Burrino@Generali.com +39 040 671202

Emanuele Marciante

Credit & Rating Agency Relations Emanuele.Marciante@Generali.com +39 040 671347

Rodolfo Svara

Investor Relations Rodolfo.Svara@Generali.com +39 040 671823

Martina Vono Investor Relations Associate Martina.Vono@Generali.com +39 040 671548

Marta Porczynska

Event Coordinator Marta.Porczynska@Generali.com +39 040 671402

Anna Jagiello Event Coordinator Anna.Jagiello@Generali.com +39 040 671571

Assicurazioni Generali

P.za Duca degli Abruzzi 2 34132 Trieste, Italy

Fax: +39 040 671338 e-mail: ir@generali.com

www.generali.com

Thank you

GENERALI GROUP 2016 Results