Assicurazioni Generali

Earnings Release • Jul 29, 2016

GENERALI GROUP 2016 First Half 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 4

II. 2015 Group Financials Page 11

III. Backup Page 31

Agenda

Philippe Donnet – Group CEO

Alberto Minali – General Manager & Group CFO

I. Business Overview

Philippe Donnet – Group CEO page 4

3

The Group restored a solid foundation in recent years, with great success

• Governance Group Management Committee established
• "One group" modus operandi
• Focused on core insurance business

Capital Resilient and strong capital position rebuilt

• Profitability Significant improvement in Operating RoE
• Strong focus on technical excellence and costs
• Completed Italy Restructuring, Germany in progress

Customer and distributor centricity

• A more customer / distributor focused, innovative organisation
• Key investments and partnerships (e.g. Vitality, MyDrive)

In the current environment, we need to move faster

Improve operating performance

Turnaround the operating machine

• Simplify, rationalize, digitalize, automate processes
• Committed to invest in modernisation and transformation
• More aggressive on cost savings

Improve our
footprint

• Focus resources where we can have:
• Relevant size
• Good profitability

Enhance core insurance capabilities

• Best in class pricing, risk selection, claims management in P&C
• Disciplined product offering and inforce management in Life

Long term value creation

Rebalance portfolio structure

Diversification of our profit sources, through exploitation of profitable opportunities in P&C, Health, Unit Linked, Protection; Increase fee based revenues

Innovation and customer/ distributor focus

• Distinctive and innovative products
• Responsive to customer needs
• Maximise potential of our distributors

Brand

Improve visibility and leverage power of our brand

We have the right team to deliver: Simpler, Smarter and Faster

Execution will differentiate us

We must execute faster

• Obsessive attention to efficiency
• Higher vigilance on performance
• Increased effectiveness of reporting lines
• Empowered CEOs

Final remarks

• Our strategy will be accelerated: execution will make the difference
• Full update and delivery proof points at upcoming Investor Day
• Our results and technical performance are solid: on track to deliver our promises

II. 2016 First Half Group Financials

Alberto Minali – General Manager & Group CFO

Profit & Loss and Balance Sheet page 11

Business review page 18

Key First Half 2016 financials at a glance

• Operating Result: Lower by 10.5%, mainly due to the decision to realise a lower level gains in current market conditions, compared to the relatively high level of last year. Strong technical performance in both Life and P&C
• Net Result: Follows the trend of the operating result (-9.9%)
• Operating RoE: Annualised operating RoE at 12.9%
• Solvency II ratio (internal model view): Resilient at 188% despite market volatility

	1H15	1H16	D	2Q15	2Q16	D
Operating result (Euro m)	2,779	2,487	-10.5%	1,453	1,323	-8.9%
Operating RoE 1	14.1%	12.9%	-1.3%pts.	4.3%	3.8%	-0.5%pts.
Net result (Euro m)	1,307	1,178	-9.9%	626	590	-5.7%
EPS (Euro)	0.84	0.76	-9.9%	0.40	0.38	-5.7%
Shareholders' equity 2	23,565	24,562	+4.2%
Solvency II ratio (internal model view) (%) 2	202%	188%	-14%pts.

1. The annualized operating RoE is calculated on a rolling basis, as the sum of the last four quarter operating ROE ratios

2. Comparative data FY15

Profit & Loss 12

Operating result by segment

From operating result to net profit

Shareholders' equity Balance Sheet 14

2.0

Solvency 2

Solvency II: Internal Model View & Regulatory view

Eligible own funds vs. Required capital

(Internal model view, Euro bn)

Eligible own funds vs. Required capital

(Regulatory view, Euro bn)

• 1. Official Regulatory Ratio submitted to the Supervisor according to the timeline of SII Pillar III reporting process
• 1. Preliminary Regulatory Ratio

Solvency II: Internal Model View

Resilient development in a volatile market, with strong organic capital generation

	Excess Own Funds1 (Euro bn)	Solvency II ratio (%)
FY 2015	20.9	202%
Perimeter & FX	0.0	+0%pts.
Normalised capital generation	1.5	+8%pts.
Variances and other movements	(3.9)	-22%pts.
1H 2016	18.5	188%

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

16

II. 2016 First Half Group Financials

Alberto Minali – General Manager & Group CFO

Profit & Loss and Balance Sheet page 11

Business review page 18

Life key financial indicators

(Euro m)

	1H15	1H16	LFL D	2Q15	2Q16	LFL D
Gross written premiums	26,906	25,816	-3.5%	13,240	12,385	-5.8%
Net inflows	8,200	7,523	-7.3%	3,894	2,977	-22.5%
Life operating result	1,713	1,653	-3.5%	890	897	+0.8%
Life operating ratio on investments (bps)	43	40	-3	22	21	-1
APE	2,707	2,571	-4.5%	1,278	1,250	-1.8%
New Business Value	474	656	+38.4%	152	295	+97.7%
Margin on APE (%)	17.5%	25.5%	+7.9%pts.	11.9%	23.6%	+11.7%pts.

Life Operating result by driver

1H 16	2,979	1,149	(2,475)
1H 15	2,868	1,374	(2,529)
D %	+3.9%	-16.4%	-2.1%

Decreasing investment result due to lower net realized gains, down from the exceptionally high levels of 1H15

Partially offset by improving technical margin and expense result

Life inflows and technical reserves¹

(Euro m)

	1H15	1H16
Italy	3,919	3,948
France	721	332
Germany	2,031	1,468
CEE	240	265
EMEA	947	536
Americas	75	54
Asia	220	879
International	47	41
TOTAL	8,200	7,523

1. Including liabilities related to investment contracts

+2.0%

Life new business analysis

• APE decline (-4.5%), mainly due to the uncertain market situation, leading to a decrease of unit linked business (-23.2%) and a slight increase of saving business (+0.6%). Protection business reverses the trend of the first quarter registering an increase in the first half of 8.2%
• Strong improvement of NBM¹ (+7.9%pts.) driven by the Group products steering actions, the decrease of Euro area guarantees and, in respect of 1H15, an improved financial environment
• Further marked reduction of the level of guarantees (in Euro area from 0.60% at FY15 to 0.44% at 1H16)

(Euro m)		APE			NBV			MARGIN ON APE
	1H15	1H16	LFL D	1H15	1H16	LFL D	1H15	1H16	LFL D
Italy	1,159	1,155	-0.3%	258	330	+28.0%	22.3%	28.6%	+6.3%pts.
France	535	477	-10.7%	18	54	+161.6%	3.4%	11.4%	+7.5%pts.
Germany	448	367	-18.1%	73	135	+84.4%	16.4%	36.8%	+20.5%pts.
CEE	87	70	-19.5%	21	23	+10.3%	23.6%	32.8%	+8.9%pts.
EMEA	348	279	-19.4%	83	96	+17.8%	23.8%	34.6%	+10.9%pts.
Americas & Asia	131	224	+86.4%	21	17	-13.5%	15.9%	7.4%	-8.5%pts.
TOTAL	2,707	2,571	-4.5%	474	656	+38.4%	17.5%	25.5%	+7.9%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	%
	1H15	4,867	1.7
Fixed income	1H16	4,805	1.6
	1H15	220	1.6
Equity	1H16	385	2.9
Real Estate1	1H15	300	3.0
	1H16	335	2.9
Total1	1H15	5,500	1.7
	1H16	5,614	1.6

1. Net of depreciation expenses

P&C key financial Indicators

(Euro m)

	1H15	1H16	LFL D	2Q15	2Q16	LFL D
Gross written premiums, of which:	11,266	11,131	+1.3%	4,783	4,820	+3.9%
Primary Motor	4,498	4,363	+2.3%	1,827	1,832	+6.9%
Primary Non Motor	6,391	6,359	+0.1%	2,767	2,762	+0.8%
Combined ratio (%)	92.6%	92.3%	-0.3%pts.	92.0%	92.7%	+0.7%pts.
Nat Cat impact (%)	1.4%	1.3%	-0.1%pts.	0.9%	2.6%	+1.7%pts.
P&C operating result	1,103	1,042	-5.6%	598	544	-9.1%

P&C Operating result by driver

1H 16	681	488	(127)
1H 15	644	529	(70)
D %	5.6%	-7.8%	80.4%

• Positive technical performance with a further improving combined ratio to 92.3% (-0.3%pts)
• Decreasing investment result due to lower interest rate environment
• Other component development mainly due to some non-recurring positive effects in 1H15

P&C gross written premiums trends

(Euro m)

	1H15	1H16	LFL 
Italy	2,927	2,815	-3.8%
France	1,380	1,368	-0.9%
Germany	2,144	2,133	-0.5%
CEE	1,015	1,033	+2.3%
EMEA	2,585	2,640	+3.1%
Americas	597	462	+19.8%
Asia	59	78	+33.6%
International	559	602	+7.7%
Total	11,266	11,131	+1.3%

Overall premiums growth (+1.3%), mainly due to Motor (+2.3%):

• Italy declines -3.8% both in Motor (-6.1%, due to the exit of some large fleet contracts) and Non Motor (-2.3% due to both Accident & Health and SMEs)
• -0.9% decline in France due to both Motor (-0.8%, due to decreasing level of average premium) and Non Motor (-1.3%, soft market conditions in Commercial)
• Germany declines -0.5%, due to Non Motor (-1.3%, due to portfolio pruning activities) that more than offset the increase in Motor (+0.7%)
• CEE grows +2.3%, due a positive Motor (+4.3%) and a stable Non Motor (+0.1%)

Combined ratio analysis

Combined ratio by country

(%)

	1H15	1H16	LFL 
Italy	88.7%	88.6%	-0.1%pts.
France	99.2%	100.1%	+0.9%pts.
Germany	92.5%	91.4%	-1.1%pts.
CEE	85.4%	90.8%	+5.4%pts.
EMEA	94.1%	94.7%	+0.6%pts.
Americas	104.7%	101.5%	-3.2%pts.
Asia	92.7%	103.9%	+11.1%pts.
International Operations	88.6%	84.7%	-3.9%pts.
Total	92.6%	92.3%	-0.3%pts.

• Combined ratio stable in Italy, mainly thanks to the substantially absence of Nat Cat impact (in 1H15 the impact was 2.6%pts.)
• Combined ratio in France affected by Nat Cat losses in 2Q (+2.6%pts compared to 1H15)
• Strong improvement in Germany, despite higher Nat Cat, impact, due to positive developments both in Motor and Non Motor
• Combined ratio increase in CEE mainly due to negative market developments in Poland and Czech Republic, as well as higher Nat Cat impact (+0.6%pts in respect of 1H15)

P&C investment breakdown and performance

P&C segment general account

(%) Current returns

Focus on Holding & Other businesses segment

(Euro m)

	1H15	1H16		2Q15	2Q16	
Financial	245	173	-29.6%	96	84	-12.9%
Generali1 of which Banca	172	84	-51.2%	57	44	-21.9%
Operating holding expenses	(251)	(238)	-5.2%	(135)	(126)	-6.5%
Other businesses2	77	(37)	n.m.	56	(22)	n.m.
Total	71	(102)	n.m.	17	(64)	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

Very strong technical results in both Life and P&C, showing the benefits of our strategy

Solvency position proves resilient, at 188% despite the market turmoil

On track to deliver our promises, despite the worsened environment

Agenda

III. Backup

• Cost	32 page
Investments	34 page
Financial debt	40 page
Solvency 2	43 page

1H16 Cost development

Group operating expense development (OpEx view) (Euro bn)

3.2 3.1 1H 15 1H 16

Overall costs slightly decreased vs previous year and in line with Target

Reconciliation of general expenses from IFRS view to OpEx view

(1H16, Euro bn)

• Adjustments from accounting view
• Adjusted general expense base (OpEx view)

Agenda

III. Backup

	Cost	32 page
•	Investments	34 page
	Financial debt	40 page
	Solvency 2	43 page

Assets under management

Fixed Income Portfolio

51.5 13.1 18.9 8.0 8.6 Other fixed Income Covered Corporate non fin. Corporate fin. Government Total Portfolio Euro 350 bn (%)

3 6 35 43 ^{11 1} AAA AA A BBB Not Investment Grade Not Rated 67 17 9 6 0 0 12 32 5 49 2 0 Covered Euro 28 bn (%) Corporate Euro 112 bn (%) Government Euro 180 bn¹ (%)

Bond duration	FY15	1H16
Life	8.0	8.6
P&C	5.0	5.4

1. Italian government bond exposure is 80% of BBB

Fixed Income Portfolio by country

Equity & Equity-like

Alternative funds: Euro 5 bn (%)

84

Total Portfolio: Euro 17 bn

Equity: Euro 9 bn (%)

Asset Allocation: Real Estate

Total Portfolio: Euro 24 bn¹

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

Agenda

III. Backup

	Cost	32 page
	Investments	34 page
•	Financial debt	40 page
	Solvency 2	43 page

Focus on financial debt

1. The amounts of financial debt includes the subordinated bond issued in October 2015, for a nominal amount of Euro 1.25 bn, to refinance June 2016 callable hybrid bonds

2. The amounts of financial debt includes the subordinated bond issued in June 2016, for a nominal amount of Euro 850 m, to refinance February 2017 callable hybrid bonds

Financial debt breakdown by expiry date/call date

Agenda

III. Backup

•	Solvency 2	43 page
	Financial debt	40 page
	Investments	34 page
	Cost	32 page

Reconciliation of IFRS equity to Solvency II Eligible Own Funds

Solvency II Eligible own funds

(1H16, Euro bn)

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, Alberto Minali, 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

Veronica Cherini

Investor Relations Veronica.Cherini@Generali.com +39 040 671488

Rodolfo Svara

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

Martina Vono

Investor Relations Associate Martina.Vono@Generali.com +39 040 67154

Marta Porczynska

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

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 First Half Results