Assicurazioni Generali

Earnings Release • Mar 14, 2019

Informazione Regolamentata n. 0018-52-2019		Data/Ora Ricezione 14 Marzo 2019 07:30:08	MTA
Societa'	:	ASSICURAZIONI GENERALI
Identificativo Informazione Regolamentata	:	115063
Nome utilizzatore	:	ASSGENERN02 - AMENDOLAGINE
Tipologia	:	1.1
Data/Ora Ricezione	:	14 Marzo 2019 07:30:08
Data/Ora Inizio Diffusione presunta	:	14 Marzo 2019 07:30:10
Oggetto	:	31 December 2018	Generali Group consolidated results as at
Testo del comunicato

Vedi allegato.

14/03/2019 PRESS RELEASE

GENERALI GROUP CONSOLIDATED RESULTS AS AT 31 DECEMBER 2018¹

ALL 2015-2018 PLAN TARGETS EXCEEDED

• Cumulative Net Operating Cash at €8 billion (target > €7 billion)
• Cumulative Dividends at €5.1 billion ² (target > €5 billion)
• Average 2015 - 2018 Operating RoE at 13.4% (target >13%)

2018 ANNUAL RESULTS

STRONG NET PROFIT AT €2.3 BILLION (+9.4%), OPERATING RESULT AT €4.9 BILLION (+3%), PROPOSED DIVIDEND INCREASE BY 5.9% TO €0.90 PER SHARE

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• Operating result increased thanks to improvements in all Group business segments
• Life New Business Margin increase continues at 4.35%. Combined Ratio at 93% (+0.1 p.p.), the best among its peers even considering the impact of natural catastrophes and man-made claims
• Excellent Life net inflows of €11.4 billion (+5.2%). Life technical reserves up to €343 billion (+2.2%). Total gross premiums of €66.7 billion, up by 4.9% thanks to improvements in both Life and Property & Casualty segments
• Net result in Asset Management increased by 24% to €235 million
• Capital position enhanced with a Regulatory Solvency Ratio of 216% (207% at FY2017; +9 p.p.)
• Proposed dividend per share of €0.90, up by 5.9% (€0.85 in FY2017)

¹The changes in Life net inflows and premiums are compared on the same basis; that is, considering the same exchange rates and scope of consolidation consistent with IFRS 5. The changes in Operating Result, Investments/Assets Under Management and Operating RoE are calculated by re-determining, in application of IFRS 5, the comparative data for 2017 following the disposals that are closed or disposals pending closure. The 2017 data relating to new business are at a historic perimeter ratio; that is, they do not exclude companies being divested.

²Also inclusive of the dividend proposed for 2018, submitted for approval to the Shareholders' Meeting to be held on 7 May 2019.

Generali Group CEO, Philippe Donnet, declared: "With the results presented today, Assicurazioni Generali has completed the 2015-18 strategic plan exceeding all the targets and successfully concluding its industrial turnaround. This was accomplished even considering the difficult macro scenario, confirming our ability to execute and create sustainable value for all stakeholders. For this achievement, the merit goes to the dedication of everyone who works for Generali in 50 countries all over the world as well as to our distribution network and to all of the Group's partners. Further, in 2018 -- when we posted strong growth in net profit -- Generali confirmed its position as the leader in technical performance with the best New Business Margin and Combined Ratio compared to its direct peers. As of January 1, the whole Group is committed to implementing the new plan 'Generali 2021' whose objective is to generate increasing value for our shareholders through investing in profitable growth, innovation and digital transformation of our business. Our ambition is to be life-time partners for our customers."

Milan – At a meeting chaired by Gabriele Galateri di Genola, the Assicurazioni Generali Board of Directors approved the consolidated financial statements and the Parent Company's draft financial statements for the year 2018.

EXECUTIVE SUMMARY

Thanks to the results achieved in 2018, the Group completed the 2015-2018 strategic plan having exceeded all of its targets and is best positioned to pursue the targets announced in its new strategy presented during its Investor Day on 21 November 2018.

In 2018, the Group's operating result increased by 3% to €4,857 million as a result of the contribution of all business segments. The average 2015-2018 Operating RoE was 13.4%, exceeding the strategic target (>13%).

The non-operating result came to €-1,361 million (€- 1,109 million in FY 2017), due in particular to impairments on equity investments and lower net realised gains, which reflects the planned strategy of supporting future returns of our own investments.

The net profit of €2,309 million (+ 9.4%) reflects the improvement in the operating result as well as the contribution from discontinued operations or disposals.

Life net cash inflows amounted to €11,369 million (+5.2%), one of the best levels in the industry, benefitting in particular from final quarter growth. Life technical reserves reached €343 billion (+2.2%).

Life new business margin improved by 0.26 p.p. to 4.35% thanks to the higher profit margins of risk products as well as savings products.

Life segment premiums reached €46,084 million (+5.7%), confirming the growth witnessed during the course of the year.

P&C premiums totalled €20,607 million (+3.3%), confirming the development witnessed during the year thanks to positive trends in both business lines. The combined ratio, substantially stable at 93%, remained the best among peers in the market. The total premiums of the Group amount to €66,691 million, an increase of 4.9%.

In line with what was announced in 2017 and 2018, the net result of the Generali Asset Management unit increased by 24% to €235 million thanks to the acceleration of its business in Europe and the first fruits of its global expansion.

The Group's solid solvency is confirmed with a Regulatory Solvency Ratio³ of 216%, up by 9 p.p. despite financial market performance.

³ Starting from 31 December 2018, the Economic Solvency Ratio, which represented the economic vision of the Group's capital and is calculated by applying the internal model to the entire scope of the Group, will no longer be published because the difference between the regulatory and economic views has narrowed, given the reduced number of entities still in the approval phase (Austria for the health business and Spain).

DIVIDEND PER SHARE

The dividend per share that will be proposed at the upcoming Shareholders' Meeting is €0.90, up by €0.05 cents per share (+5.9%) compared to the previous year (€0.85 FY2017). The payout ratio is 61.2% (63% in 2017).

The total dividend relating to outstanding shares is €1,413 million. The dividend payment date is May 22, while shareholders will be entitled to receive the dividend on May 21. The coupon date is May 20.

LIFE SEGMENT

• Net cash inflows at €11.4 billion (+5.2%) and premiums up to €46.1 million (+5.7%)
• New business margin rises to 4.35% and new business value (NBV) at €1,877 million, in line with the objective of creating long-term value
• Operating result up to €3.1 billion (+2.8%)

Life net cash inflows came to €11,369 million (+5.2%), with quarterly performance building upon the growth witnessed at nine months. These trends enabled Life technical reserves to grow by 2.2% to €343.4 billion. The growth witnessed in the course of the year was confirmed by Life segment premiums, which reached

€46,084 million (+5.7%). In terms of the business lines, savings policies increased 5.7%, reflecting particularly the positive trend in Italy (+8.2% thanks to actions undertaken on the existing collective policy portfolio for €1.2 billion), Asia (+23.8%) and France (+1.3%). Unit-linked inflows were also up by 1.8% due to excellent performance in Germany and France. Protection and health products posted an increase of 10.7%, confirming overall growth in the countries in which the Group operates.

New business in terms of present value of new business premiums (PVNBP) amounted to €43,202 million, down by 1.8%. With respect to the business lines, the protection product business rose by 2.1% in all areas of Group with the exception of Germany. The unit-linked business was down (-1.5% as a result of the performance posted in Italy and Germany), as was the savings product business (-3.7%), in line with the Group strategy aiming to reduce guaranteed business.

New business margins (margin on PVNBP) improved by 0.26 p.p. to 4.35% (4.01% at 31 December 2017), thanks to higher profit margins on risk products (+0.51 p.p.), primarily due to improvements in France and Spain, as well as savings products (+0.29 p.p.), positively impacted by the continuous reduction in financial guarantees as well as the improving economic environment.

Following these actions, the new business value (NBV) rose by 4.3% to €1,877 million (€1,820 million at 31 December 2017).

The operating result of the Life segment came to €3,067 million, up by 2.8% compared to €2,982 million at the end of 2017, thanks to technical margin trends net of insurance and other operating expenses. The investment result was down due to greater impairments on financial instruments, particularly in the final quarter of the year.

(€ million of Euro)		Operating result			NBV
	31/12/2018	31/12/2017	Change	31/12/2018	31/12/2017	Change
Italy	1,284	1,246	+3.0%	978	903	8.3%
France	585	607	-3.6%	219	211	4.1%
Germany	424	420	+0.9%	228	243	-6.2%
Austria, EEC & Russia	306	291	+5.3%	143	147	-3.2%
International	497	540	+7.9%	310	317	4.5%
Group Holding and other companies*	-30	-121	+75,5%	0	0	-
Total	3,067	2,982	+2.8%	1,877	1,820	4.3%

(*) The operating result figure also includes inter-segment eliminations.

PROPERTY&CASUALTY SEGMENT

• Premiums up to €20.6 billion (+3.3%) in the motor (+3.4%) and non-motor (+2.7%) segments.
• Combined Ratio at 93% (+0.1 p.p.), the best among peers
• Operating result increase to €2 billion (+2.5%)

P&C segment premiums confirmed the development witnessed during the year, reaching €20,607 million, up by 3.3% thanks to positive trends in both business lines.

Development in the motor segment⁴ (+3.4%) is supported by the growth witnessed in ACEER⁵ (+5.7%), France (+4.2%), the Americas and Southern Europe (+19.2%). Although there was a recovery in Italy in the second part of the year, motor inflows in Italy fell by 1.7%, following the measures adopted to support retail portfolio profitability whose average premium remained substantially stable at year-end. As a result of these measures, the Combined Ratio motor for this market improved by 2.3 p.p.

Non motor premium inflows rose by 2.7% thanks to positive trends widespread throughout the area where the Group operates. Inflows increased in ACEER (+4.1%), France (+2.7%), Germany (+1.8%) and International (+7.2%) that was driven by Europ Assistance due to improvements in travel insurance and roadside assistance in mature markets.

The decline posted in Italy (-1.5%) can mainly be attributed to the downturn of the Global Corporate & Commercial lines and the health sector.

This segment's operating result, including of €342 million in catastrophe claims and around €290 million in man-made claims, rose by 2.5% to €1,992 million, primarily due to the investment result and the positive contribution of other operating items.

The Combined Ratio, the best among its peers, stood at 93% (+0.1 p.p. compared to 31 December 2017) despite 1.7 p.p. deriving from catastrophe claims and 1.5 p.p. following manmade claims.

This change in the combined ratio is entirely attributable to expense ratio performance, in particular to support non-motor premiums.

⁴ Details about motor and non–motor are supplied on direct business

⁵ Austria, Central - Eastern Europe and Russia

(€ millions of Euro)		Operating result		Combined ratio
	31/12/2018	31/12/2017	Change	31/12/2018	31/12/2017	Change
Italy	595	651	-8.5%	91%	90.0%	+0.9 pps
France	121	155	-21.9%	99.9%	98.4%	+1.4 pps
Germany	445	327	+26.5%	92.7%	92.6%	+0.2 pps
Austria, EEC & Russia	482	249	+4.9%	88.1%	87.8%	-1.0 pps
International	394	520	+37.1%	95.6%	96.2%	-2.3 pps
Group Holding and other companies (*)	-45	72	n.m.	76.5%	52.6%	+2,9 pps
Total	1,992	1,944	+2.5%	93%	92.8%	+0,1 pps

(*) The operating result figure also includes inter-segment eliminations

ASSET MANAGEMENT SEGMENT⁶

The Asset Management net result rose from €189 million in 2017 to €235 million in 2018 (+24%). This improvement was driven by capital deployed into real assets by Generali's insurance companies, net growth of external clients, improvements on cost efficiencies, and, to a lesser extent, the market share increase in Unit Linked of Generali Asset Management products.

HOLDING AND OTHER BUSINESSES SEGMENT

The operating result of the Holding and Other Business segment came to € -70 million, marking an improvement compared to €-163 million at 31 December 2017. In particular, the operating result of the financial and other businesses segment came to €397 million (€291 million at 31 December 2017). The increase of 36.3% mainly reflects the performance of Other businesses. The result of Banca Generali was down slightly to €233 million.

Net holding operating expenses totalled €-467 million (€-454 million as at 31 December 2017), reflecting the higher costs linked to discontinued operations in Germany, the implementing of the new asset management strategy and lower brand fee revenues.

⁶ The Asset Management segment includes the business carried out only by the Asset Management companies operating as part of the Generali Group. This segment operates as a provider of products and services for Generali Group insurance companies as well as third-party clients. The products include equity and fixed-income funds as well as alternative products.

OUTLOOK

The current economic growth trends are expected to slow down on the whole in 2019. In the Eurozone, GDP growth should fall to 1% from 1.9% in 2018. The European Central Bank will likely carefully monitor inflation to decide on when to implement the first rate hike, which could take place not before the half of 2020. In this context, the Group will continue with its portfolio rebalancing strategy to further strengthen profit margins in the Life segment with a more efficient capital allocation approach. In the P&C segment, premium inflows are expected to improve in the Generali Group's main geographical areas, with a considerable focus on high growth potential markets. In the Asset Management segment, actions will continue to identify investment opportunities and sources of income for all of its clients, at the same time managing risks through the expansion of the multi-boutique platform. The Group's investment policy will continue to be based on an asset allocation intended to consolidate current profit margins and guarantee consistency with liabilities towards policyholders.

APPROVAL OF A CAPITAL INCREASE TO IMPLEMENT THE LONG TERM INCENTIVE PLAN 2016

The Board of Directors also approved a capital increase for €4.435.531 to implement the "Long Term Incentive Plan 2016", having ascertained the occurrence of the conditions on which it was based. The execution of the resolution of the Board is subject to the authorization of the related amendments to the Articles of Association by IVASS.

SHARE PLAN FOR GENERALI GROUP EMPLOYEES

Moreover, the Board of Directors resolved to submit to the approval of the Annual Shareholders Meeting the proposal of a share plan for Generali Group employees, providing the opportunity to purchase at favourable conditions Company ordinary shares arising from a buy-back program for the purposes of the plan.

The Manager in charge of preparing the company's financial reports, Cristiano Borean, declares, pursuant to paragraph 2, article 154 bis of the Consolidated Law on Finance, that the accounting information in this press release corresponds to the document results, books and accounting entries.

THE GENERALI GROUP

Generali is an independent Italian insurance group, with a strong international presence. Established in 1831, it is one of the largest global insurance providers, present in 50 countries and with 2018 total premium income of more than € 66 billion. With nearly 71,000 employees serving 61 million customers, the Group has a leading position in Western Europe and an increasingly significant presence in the markets of Central and Eastern Europe as well as in Asia.

GROUP'S BALANCE SHEET AND INCOME STATEMENT

BALANCE SHEET

Assets

References:	(€ million)	31/12/2018	31/12/2017
	1 INTANGIBLE ASSETS	8,745	8,784
4	1.1 Goodwill	6,680	6,679
19	1.2 Other intangible assets	2,065	2,105
	2 TANGIBLE ASSETS	3,768	4,075
20	2.1 Land and buildings (self used)	2,505	2,606
20	2.2 Other tangible assets	1,263	1,469
14	3 AMOUNTS CEDED TO REINSURERS FROM INSURANCE PROVISIONS	4,009	4,294
39, 40, 41,	4 INVESTMENTS	412,228	471,233
42 11	4.1 Land and buildings (investment properties)	13,650	12,993
3	4.2 Investments in subsidiaries, associated companies and joint ventures	1,320	1,171
7	4.3 Held to maturity investments	2,171	2,267
8	4.4 Loans and receivables	31,815	40,262
9	4.5 Available for sale financial assets	283,773	320,641
10	4.6 Financial assets at fair value through profit or loss	79,500	93,897
	of which financial assets where the investment risk is borne by the policyholders and related to pension funds	65,789	75,372
21	5 RECEIVABLES	11,127	11,686
	5.1 Receivables arising out of direct insurance operations	7,130	7,238
	5.2 Receivables arising out of reinsurance operations	1,481	1,441
	5.3 Other receivables	2,515	3,007
22	6 OTHER ASSETS	69,253	30,170
	6.1 Non-current assets or disposal groups classified as held for sale	55,914	16,146
15	6.2 Deferred acquisition costs	2,143	2,119
	6.3 Deferred tax assets	2,345	2,091
	6.4 Tax receivables	3,021	2,961
	6.5 Other assets	5,830	6,853
12	7 CASH AND CASH EQUIVALENTS	6,697	6,849
	TOTAL ASSETS	515,827	537,091

Equity and liabilities
References:	(€ million)	31/12/2018	31/12/2017
16	1 SHAREHOLDERS' EQUITY	24,643	26,177
	1.1 Shareholders' equity attributable to the Group	23,601	25,079
	1.1.1 Share capital	1,565	1,562
	1.1.2 Other equity instruments	0	0
	1.1.3 Capital reserves	7,107	7,098
	1.1.4 Revenue reserves and other reserves	10,035	9,209
	1.1.5 (Own shares)	-7	-8
	1.1.6 Reserve for currency translation differences	-146	-115
	1.1.7 Reserve for unrealized gains and losses on available for sale	3,454	6,279
	financial assets 1.1.8 Reserve for other unrealized gains and losses through equity	-716	-1,055
	1.1.9 Result of the period attributable to the Group	2,309	2,110
	1.2 Shareholders' equity attributable to minority interests	1,042	1,098
	1.2.1 Share capital and reserves	904	915
	1.2.2 Reserve for unrealized gains and losses through equity	-50	-3
	1.2.3 Result of the period attributable to minority interests	189	185
23	2 OTHER PROVISIONS	1,816	1,950
13	3 INSURANCE PROVISIONS	377,828	430,489
	of which insurance provisions for policies where the investment risk is borne by the policyholders and related to pension funds	63,149	67,997
	4 FINANCIAL LIABILITIES	38,540	42,326
17	4.1 Financial liabilities at fair value through profit or loss	4,159	8,935
	of which financial liabilities where the investment risk is borne by the policyholders and related to pension funds	2,754	7,360
18	4.2 Other financial liabilities	34,382	33,391
	of which subordinated liabilities	8,124	8,379
24	5 PAYABLES	9,287	10,494
	5.1 Payables arising out of direct insurance operations	3,424	3,602
	5.2 Payables arising out of reinsurance operations	658	848
	5.3 Other payables	5,205	6,043
25	6 OTHER LIABILITIES	63,713	25,653
	6.1 Liabilities directly associated with non-current assets and disposal	54,883	15,745
	groups classified as held for sale 6.2 Deferred tax liabilities	1,789	2,642
	6.3 Tax payables	1,728	1,487
	6.4 Other liabilities	5,313	5,779
	TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	515,827	537,091

GROUP'S INCOME STATEMENT

References:	(€ million)	31/12/2018	31/12/2017
26	1.1 Net earned premiums	63,405	61,137
	1.1.1 Gross earned premiums	65,192	62,876
	1.1.2 Earned premiums ceded	-1,786	-1,739
27	1.2 Fee and commission income and income from financial service activities	1,028	1,002
28	1.3 Net income from financial instruments at fair value through profit or loss	-6,008	4,826
	of which net income from financial instruments where the investment risk is borne by the policyholders and related to pension funds	-5,835	3,849
29	1.4 Income from subsidiaries, associated companies and joint ventures	166	134
30	1.5 Income from other financial instruments and land and buildings (investment properties)	12,712	13,155
	1.5.1 Interest income	8,158	8,453
	1.5.2 Other income	2,250	2,065
	1.5.3 Realized gains	2,146	2,421
	1.5.4 Unrealized gains and reversal of impairment losses	157	216
31	1.6 Other income	3,397	3,164
	1 TOTAL INCOME	74,699	83,418
32	2.1 Net insurance benefits and claims	-52,032	-60,853
	2.1.1 Claims paid and change in insurance provisions	-53,239	-62,472
	2.1.2 Reinsurers' share	1,207	1,619
33	2.2 Fee and commission expenses and expenses from financial service activities	-576	-565
34	2.3 Expenses from subsidiaries, associated companies and joint ventures	-16	-17
35	2.4 Expenses from other financial instruments and land and buildings (investment properties)	-3,467	-2,667
	2.4.1 Interest expense	-1,010	-1,020
	2.4.2 Other expenses	-355	-337
	2.4.3 Realized losses	-680	-560
	2.4.4 Unrealized losses and impairment losses	-1,423	-750
36	2.5 Acquisition and administration costs	-10,682	-10,473
	2.5.1 Commissions and other acquisition costs	-8,015	-7,903
	2.5.2 Investment management expenses	-228	-150
	2.5.3 Other administration costs	-2,438	-2,420
37	2.6 Other expenses	-4,477	-5,332
	2 TOTAL EXPENSES	-71,250	-79,908
	EARNINGS BEFORE TAXES	3,450	3,511
38	3 Income taxes	-1,126	-1,147
	EARNINGS AFTER TAXES	2,324	2,364
	4 RESULT OF DISCONTINUED OPERATIONS	173	-68
	CONSOLIDATED RESULT OF THE PERIOD	2,497	2,295
	Result of the period attributable to the Group	2,309	2,110
	Result of the period attributable to minority interests	189	185
16	EARNINGS PER SHARE
	Basic earnings per share (€)	1.48	1.35
	From continuing operations	1.37	1.49
	Diluted earnings per share (€)	1.46	1.33
	From continuing operations	1.35	1.47

PARENT COMPANY'S BALANCE SHEET AND INCOME STATEMENT

BALANCE SHEET

(in thousands euro)

BALANCE SHEET ASSETS

			Year 2018		Year 2017
A.	SUBSCRIBED CAPITAL UNPAID			0	0
	of which called-up capital	0
B.	INTANGIBLE ASSETS
	1 . Acquisition commissions to be amortised
	0 a) life business
	0 b) non-life business	0
	2 . Other acquisition costs	0
	3 . Formation and development expenses	0
	4 . Goodwill	0
	5 . Other intangible assets	39,193		39,193	30,127
C.	INVESTMENTS
I	Land and Buildings 1 . Property used for own activities	304
	2 . Property used by third parties	97,192
	3 . Other properties	0
	4 . Other realty rights	0
	5 . Assets in progress and payments on account	2,371	99,866
I I	Investments in affiliated companies and other shareholdings
	1 . Interests in
	0 a) parent companies
	29,302,963 b) affiliated companies
	0 c) affiliates of parent companies
	213,247 d) associated companies
	17,238 e) other	29,533,448
	2 . Debt securities issued by
	0 a) parent companies
	0 b) affiliated companies
	0 c) affiliates of parent companies
	0 d) associated companies
	0 e) other	0
	3 . Loans to
	0 a) parent companies
	3,131,929 b) affiliated companies
	0 c) affiliates of parent companies 0 d) associated companies
	0 e) other	3,131,929	32,665,377
				39,193	30,127

	Year 2018		Year 2017
C. INVESTMENTS (follows)
III Other financial investments
1 . Equities
15,760 a) quoted shares
11,877 b) unquoted shares
7,629 35,266 c) other interests
890,425 2 . Shares in common investment funds
3 . Debt securities and other fixed-income securities
1,807,391 a) quoted
15,907 b) unquoted
1,163 1,824,461 c) convertible bonds
4 . Loans
0 a) mortgage loans
350 b) loans on policies
393 743 c) other loans
0 5 . Participation in investment pools
142,060 6 . Deposits with credit institutions
9,337 7 . Other	2,902,292
I V Deposits with ceding companies	5,342,732	41,010,267	40,644,819
D. INVES TIMENTS FOR THE BENEFIT OF LIFE- AS S URANCE P OLICYHOLDERS WHO BEAR THE INVES TMENT RIS K AND RELATING TO THE ADMINIS TRATION OF P ENS ION FUNDS I - Investiments relating to contracts linked to investments funds and market index	228,850
I I - Investiments relating to the administration of pension funds	0	228,850	3,268,077
D.bis REINSURANCE AMOUNTS OF TECHNICAL PROVISIONS I NON-LIFE INSURANCE BUSINESS 131,011 1 . Provision for unearned premiums 408,834 2 . Provision for claims outstanding 0 3 . Provision for profit sharing and premium refunds 0 4 . Other technical provisions I I - LIFE INSURANCE BUSINESS 163,629 1 . Mathematical provision 25,294 2 . Unearned premium provision for supplementary coverage 362,127 3 . Provision for claims outstanding 751 4 . Provision for profit sharing and premium refunds 0 5 . Other provisions 6 . Provisions for policies where the investment risk is borne by the policyholders and relating	539,846
0 to the administration of pension funds	551,801	1,091,647	1,278,495
		42,369,957	45,221,517

				Year 2018		Year 2017
E.	RECEIVABLES
I	Receivables arising out of direct insurance operations
	1 . Policyholders
	a) for premiums - current year	130,069
	b) for premiums - previous years	16,807	146,876
	2 . Insurance intermediaries		6,125
	3 . Current accounts with insurance companies		1,921
	4 . Policyholders and third parties for recoveries		3,765	158,687
I I	Receivables arising out of reinsurance operations
	1 . Reinsurance companies		594,628
	2 . Reinsurance intermediaries		8,612	603,240
III	- Other receivables			1,075,749	1,837,675	1,849,551
F.	OTHER ASSETS
I	- Tangible assets and stocks
	1 . Furniture, office equipment, internal transport vehicles		2,113
	2 . Vehicles listed in public registers		1,169
	3 . Equipment and appliances		0
	4 . Stocks and other goods		447	3,729
I I	Cash at bank and in hand
	1 . Bank and postal deposits		757,285
	2 . Cheques and cash in hand		68	757,352
I V	Other
	1 . Deferred reinsurance items		5,640
	2 . Miscellaneous assets		199,302	204,942	966,024	1,002,013
G.	PREPAYMENTS AND ACCRUED INCOME
	1 . Interests			70,679
	2 . Rents			559
	3 . Other prepayments and accrued income			109,577	180,815	181,913
	TO	TAL ASSETS			45,354,471	48,254,994

BALANCE SHEET LIABILITIES AND SHAREHOLDERS' FUNDS

	Year 2018		Year 2017
A. SHAREHOLDERS' FUNDS
I - Subscribed capital or equivalent funds	1,565,165
I I - Share premium account	3,568,250
III - Revaluation reserve	2,010,835
I V - Legal reserve	313,033
V - Statutory reserve	0
VI - Reserve for parent company shares	0
VII - Other reserve	6,049,294
VIII - Profit or loss brought forward	0
I X - Profit or loss for the financial year	1,473,283
X - Negative reserve for own shares held	3,040	14,976,820	14,825,483
B. SUBORDINATED LIABILITIES		8,290,802	7,051,952
C. TECHNICAL PROVISIONS
I - NON-LIFE INSURANCE BUSINESS
402,756 1 Provision for unearned premiums
1,763,050 2 Provision for claims outstanding
0 3 Provision for profit sharing and premium refunds
0 4 Other provisions
467 5 Equalisation provision	2,166,273
I I - LIFE INSURANCE BUSINESS
5,375,367 1 . Mathematical provision
46,557 2 . Unearned premium provision for supplementary coverage
1,230,286 3 . Provision for claims outstanding
81,609 4 . Provision for profit sharing and premium refunds
19,671 5 . Other provisions	6,753,491	8,919,764	10,689,218
D. PROVISIONS FOR POLICIES WHERE THE INVESTMENT RISK IS BORNE BY THE
POLICYHOLDER AND RELATING TO THE ADMINISTRATION OF PENSION FUNDS
I Provisions relating to contracts linked to
investments funds and market index	225,895
I I Provisions relating to the administration of pension funds	0	225,895	3,265,804
		32,413,281	35,832,457

		Year 2018		Year 2017
E. PROVISIONS FOR OTHER RISKS AND CHARGES
1 Provision for pensions and similar obligations		0
2 Provisions for taxation		34,656
3 Other provisions		97,492	132,149	102,420
F. DEPOSITS RECEIVED FROM REINSURERS			518,396	331,210
G. PAYABLES
I - Payables arising out of direct insurance operations
1 . Insurance intermediaries	12,127
2 . Current accounts with insurance companies	6,598
3 . Premium deposits and premiums due to policyholders	10,807
4 . Guarantee funds in favour of policyholders	0	29,532
I I Payables arising out of reinsurance operations
1 . Reinsurance companies	200,103
2 . Reinsurance intermediaries	43,452	243,555
III - Bond issues		3,127,770
I V - Amounts owed to credit institutions		989,806
V - Loans guaranteed by mortgages		0
VI - Other financial liabilities		4,780,159
VII - Provisions for severance pay		2,395
VIII - Other Payables
1 . Premium taxes	5,453
2 . Other tax liabilities	27,816
3 . Social security	3,633
4 . Sundry creditors	2,302,638	2,339,541
I X - Other liabilities
1 . Deferred reinsurance items	3,641
2 . Commissions for premiums in course of collection	19,668
3 . Miscellaneous liabilities	437,242	460,550	11,973,307	11,684,798
			45,037,132	47,950,886
		Year 2018		Year 2017
H. ACCRUALS AND DEFERRED INCOME
1 Interests		271,980
2 Rents		1,911
3 Other accruals and deferred income		43,448	317,339	304,109
TO TAL LIABILITIES AND SHAREHO		LDERS' FUNDS	45,354,471	48,254,994

PROFIT AND LOSS ACCOUNT

(in thousands euro)

PROFIT AND LOSS ACCOUNT

					Year 2018	Year 2017
	I.	TECHNICAL ACCOUNT - NON-LIFE INSURANCE BUSINESS
1.		EARNED PREMIUMS, NET OF REINSURANCE:
	a)	Gross premiums written		1,679,800
	b)	(-) Outward reinsurance premiums		545,300
	c)	Change in the gross provision for unearned premiums		32,811
	d)	Change in the provision for unearned premiums, reinsurers' share		5,388	1,107,077	1,170,817
2.		(+) ALLOCATED INVESTMENT RETURN TRANSFERRED FROM THE NON-TECHNICAL ACCOUNT (ITEM III. 6)			138,861	137,629
3.		OTHER TECHNICAL INCOME, NET OF REINSURANCE			891	574
4.		CLAIMS INCURRED, NET OF RECOVERIES AND REINSURANCE
	a)	Claims paid
		aa) Gross amount	847,138
		bb) (-) Reinsurers' share	222,078	625,060
	b)	Recoveries net of reinsurance
		aa) Gross amount bb) (-) Reinsurers' share	2,077 2,224	-147
	c)	Change in the provision for claims outstanding
		aa) Gross amount	164,743
		bb) (-) Reinsurers' share	-9,434	174,177	799,384	823,519
5.		CHANGE IN OTHER TECHNICAL PROVISIONS, NET OF REINSURANCE			0	0
6.		PREMIUM REFUNDS AND PROFIT SHARING, NET OF REINSURANCE			41	41
7.		OPERATING EXPENSES
	a)	Acquisition commissions		204,038
	b)	Other acquisition costs		28,870
	c)	Change in commissions and other acquisition costs
		to be amortised		0
	d)	Collecting commissions		793
	e)	Other administrative expenses		54,935
	f )	(-) Reinsurance commissions and profit sharing		58,799	229,836	252,728
8.		OTHER TECHNICAL CHARGES, NET OF REINSURANCE			10,834	9,691
9.		CHANGE IN THE EQUALISATION PROVISION			153	116
		10. BALANCE O N THE TECHNICAL ACCO UNT FO R NO N-LIFE BUSINESS			206,581	222,924

					Year 2018	Year 2017
	II.	TECHNICAL ACCOUNT - LIFE ASSURANCE BUSINESS
1.		PREMIUMS WRITTEN, NET OF REINSURANCE
	a)	Gross premiums written		1,630,876
	b)	(-) Outward reinsurance premiums		421,732	1,209,144	1,344,757
2.	a)	INVESTMENT INCOME: From partecipating interests		1,010,117
			(of which, income from Group companies)	1,006,300
	b)	From other investments
		aa) income from land and buildings	0
		bb) from other investments	279,690	279,690
			(of which, income from Group companies)	209,128
	c)	Value re-adjustments on investment		2,278
	d)	Gains on the realisationof investments		1,587
			(of which, income from Group companies)	0	1,293,672	1,339,406
3.			INCOME AND UNREALISED GAINS ON INVESTMENTS FOR THE BENEFIT OF POLICYHOLDERS WHO BEAR
			THE INVESTMENT RISK AND ON INVESTMENT RELATING TO THE ADMINISTRATION OF PENSION FUNDS		3,095	93,674
4.		OTHER TECHNICAL INCOME, NET OF REINSURANCE			18,628	16,836
5.		CLAIMS INCURRED, NET OF REINSURANCE
	a)	Claims paid
		aa) gross amount	1,765,013
		bb) (-) reinsurers' share	285,299	1,479,714
	b)	Change in the provision for claims outstanding aa) gross amount	89,072
		bb) (-) reinsurers' share	31,051	58,021	1,537,735	1,982,335
6.		CHANGE IN THE PROVISION FOR POLICY LIABILITIES AND IN OTHER
	a)	TECHNICAL PROVISIONS, NET OF REINSURANCE Provisions for policy liabilities
		aa) gross amount	-483,765
		bb) (-) reinsurers' share	-8,063	-475,702
	b)	Change in the provision for claims outstanding
		aa) gross amount	15,503
		bb) (-) reinsurers' share	1,489	14,014
	c)	Other provisions
		aa) gross amount	6,130
		bb) (-) reinsurers' share	0	6,130
	d)	Provisions for policies where the investment risk is borne by the shareholders
		and relating to the administration of pension funds
		aa) gross amount	-5,933
		bb) (-) reinsurers' share	0	-5,933	-461,490	-658,729

	Year 2018	Year 2017
7. PREMIUM REFUNDS AND PROFIT-SHARING, NET OF REINSURANCE	72,507	46,664
8. OPERATING EXPENSES
219,044 a) Acquisition commissions
10,397 b) Other acquisition costs
c) Change in commissions and other acquisition costs 0 to be amortised
0 d) Collecting commissions
47,716 e) Other administrative expenses
72,349 f ) (-) Reinsurance commissions and profit sharing	204,807	213,774
9. INVESTMENT CHARGES
15,735 a) Investment administration charges, including interest
26,779 b) Value adjustments on investments
748 c) Losses on the realisation of investments	43,263	21,566
10. EXPENSES AND UNREALISED LOSSES ON INVESTMENTS FOR THE BENEFIT OF POLICYHOLDERS
WHO BEAR THE INVESTMENT RISK AND ON INVESTMENT RELATING TO THE ADMINISTRATION OF PENSION FUNDS	20,650	3,190
11. OTHER TECHNICAL CHARGES, NET OF REINSURANCE	720	8,173
12. (-) ALLOCATED INVESTMENT RETURN TRANSFERRED TO THE NON-TECHNICAL ACCOUNT (item III. 4)	759,761	729,570
13. BALANCE O N THE TECHNICAL ACCO UNT FO R LIFE BUSINESS (item III.2)	346,586	448,130
III. NON TECHNICAL ACCOUNT
1. BALANCE ON THE TECHNICAL ACCOUNT FOR NON-LIFE BUSINESS (Item I.10)	206,581	222,924
2. BALANCE ON THE TECHNICAL ACCOUNT FOR LIFE BUSINESS (Item I.13)	346,586	448,130
3. NON-LIFE INVESTMENT INCOME
1,143,261 a) From partecipating interests
1,141,954 (of which, income from Group companies)
b) From other investments
4,543 aa) income from land and buildings
84,843 89,386 bb) from other investments
68,112 (of which, income from Group companies)
1,989 c) Value re-adjustments on investment
14,262 d) Gains on the realisationof investments
0 (of which, income from Group companies)	1,248,898	1,120,346

	Year 2018		Year 2017
4. (+) ALLOCATED INVESTMENT RETURN TRANSFERRED FROM
THE LIFE TECHNICAL ACCOUNT (item iI. 2)		759,761	729,570
5. INVESTMENT CHARGES FOR NON-LIFE BUSINESS
16,737 a) Investment administration charges, including interest
38,277 b) Value adjustments on investments
4,501 c) Losses on realisation of investments		59,515	78,648
6. (-) ALLOCATED INVESTMENT RETURN TRANSFERRED TO THE NON-LIFE TECHNICAL ACCOUNT (item I. 2)		138,861	137,629
7. OTHER INCOME		281,096	398,403
8. OTHER CHARGES		1,508,703	1,631,104
9. RESULT FRO M O RDINARY ACTIVITY		1,135,844	1,071,991
10. EXTRAORDINARY INCOME		238,793	254,534
11. EXTRAORDINARY CHARGES		48,153	43,557
12. EXTRAO RDINARY PRO FIT O R LO SS		190,641	210,977
13. RESULT BEFO RE TAXATIO N		1,326,485	1,282,969
14. INCOME TAXES		-146,798	-121,491
15. PRO FIT (LO SS) FO R THE YEAR		1,473,283	1,404,459