Generali Group consolidated result as of December 31, 2013

  • Operating result rose to more than €4.2 bln (+5.3%)
  • Net result €1.915 bln (€94 mln FY12), the highest of the last 6 years
  • Dividend per share €0.45, more than doubled (€0.20 FY12)
  • Strong improvement in cash generation. Net Free Surplus up to €2.1 bln (+38%), already above the 2015 target


Significant progress made towards 2015 targets:

  • Operating RoE increased by 80 bps to 12.1% (2015 target: >13%)
  • Solvency I ratio approximately 150% as of end of February, on track with the >160% 2015 target (141% FY13)
  • Debt reduced by €500 mln with an 80 bp improvement of the debt leverage ratio to 39.6% (2015 target: <35%)


Improved operating results in Life (+4.3%) and P&C (+3.5%). Stable premium income at ?6 bln


The Generali Group CEO, Mario Greco, said: “2013 has been a fundamental year for the turnaround of Generali and the results confirm that we are on track, or ahead, of the targets in our strategic plan. For the first time, after many years, our net result derives entirely from our business operations rather than being impacted by one-off items.


During the year we have made deep changes to the Group. In particular, we have disposed of ?.4 billion of non-core assets and acquired minorities in strategic areas for ?.5 billion. We have strengthened the management structure and simplified the Group’s governance, which is now in line with international best practice. Over 2013, we generated a total shareholder return of 26%. These results and the more than doubling of our dividend confirm we are on the right track. We are aware that a lot still needs to be done to reach the targets we set ourselves. In 2014 the debt will be reduced further and significant cost savings will be achieved. We estimate to improve the operating result and the net profit further, in line with the plan that aims to gradually increase the profitability for our shareholders.”


Milan – At a meeting chaired by Gabriele Galateri di Genola, the Board of Directors of Generali has approved the consolidated financial statements and the parent company’s draft financial statements for 2013.


2013 has been the first year of the Group’s three-year turnaround plan during which Generali has taken steps towards the rebuilding of profitability and capital solidity. The Group has also re-focused on its core insurance business, through the disposal of non-core businesses and the investment to acquire full control of strategic activities. Furthermore, it has strengthened its governance by creating a simpler and more effective organization.


The progress achieved over the year in the turnaround of the business allowed the Group to register a boost in profitability despite an uncertain economic recovery, low interest rates and high natural catastrophe losses. Generali closed the year with an operating result of ?,207 million (+5.3%; ?,994 mln FY12) reflecting growth in all the lines of business.


These results helped Generali reach a net result of ?,915 million (?4 mln FY12), derived entirely from operating performance, the highest of the last 6 years. Taking into account the proceeds of disposals and the gain on the Group’s stake in the Bank of Italy2 which have been offset by extraordinary negative impacts on Telco (-?89 mln), BSI (-?17 mln) and other items, the overall impact of these one-offs is broadly neutral.


A dividend per share of ?.45, more than doubled relative to last year (?.20 FY12), will be proposed to shareholders at the AGM by the Board of Directors. The total dividend on outstanding shares will amount to ?00,592,977.35. The dividend will be paid on May 22, 2014 and the record date will be May 21, 2014. Shares will trade ex-dividend as from May 19, 2014.


In the Life business, premium income was stable at ?5,115 million (+0.2%) with an improved business mix oriented towards products with higher margin. The new business contribution showed improved profitability with a New Business Margin at 21% (19.2% FY12), driving the significant rise in the operating result to ?,645 million (+4.3%).


In the P&C business, premiums were broadly stable (?0,940 mln; -0.6%) despite the challenging economic environment in some of the Group’s core markets. The Combined Ratio improved further to 95.6% (-0.2 p.p.) despite natural catastrophes accounting for 2.3 percentage points (1.5 p.p. in 2012), leading to a growth of the operating result of 3.5% to ?,616 million.


In the financial segment, third-party assets expanded by +3.8% to ?04,346 mln supporting the 5.4% increase of the Group’s total Assets Under Management to ?08 billion. The operating result was up by 18.4% to ?83 million.


These results were supported by a solid capital position with a 4% increase in Generali’s shareholders’ equity to ?9,778 million over the year.