Parent Company Statements
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PARENT COMPANY STATEMENTS 2006 175TH year PARENT COMPANY STATEMENTS APPROVED BY THE SHAREHOLDERS’ MEETING OF 28 APRIL 2007 2006 175TH year The pictures contained in this issue refer to offices of Generali Group companies in Eastern Europe Registered Office and Central Head Office in Trieste Head Office for Italian Operations in Mogliano Veneto Capital (fully paid in) Euro 1,277,997,026.00 Fiscal code and Trieste Companies Register 00079760328 Authorized to transact insurance business Per Article 65 of RDL April 29, 1923 No. 966 CHAIRMAN Antoine Bernheim VICE- CHAIRMAN Gabriele Galateri di Genola MANAGING DIRECTORS Sergio Balbinot (*) / Giovanni Perissinotto (*) (*) He acts also as General Manager DIRECTORS Luigi Arturo Bianchi / Ana Patricia Botin (**) Directors who, together with the Chairman, Francesco Gaetano Caltagirone / Diego Della Valle Vice-Chairman and Managing Directors, Leonardo Del Vecchio / Loïc Hennekinne / Petr Kellner form the Executive Committee Klaus-Peter Müller / Alberto Nicola Nagel (**) / Alessandro Pedersoli Lorenzo Pellicioli (**) / Reinfried Pohl / Kai Uwe Ricke Vittorio Ripa di Meana (**) / Paolo Scaroni / Claude Tendil GENERAL COUNCIL Giorgio Davide Adler / José Ramón Álvarez Rendueles Comprising, besides the below listed elective José Maria Amusátegui de la Cierva / Francesco Maria Attaguile Members, the Members of the Board of Raymond Barre / Claude Bébéar / Kenneth J. Bialkin / Giacomo Costa Directors and the General Managers Maurizio De Tilla / Enrico Filippi / Carlos Fitz-James Stuart y Martínez de Irujo Albert Frère / Roberto Gonzales Barrera / Georges Hervet Dietrich Karner / Khoon Chen Kuok / Stefano Micossi Benedetto Orsini / Arturo Romanin Jacur Guido Schmidt-Chiari / Theo Waigel / Wilhelm Winterstein BOARD OF AUDITORS Gianfranco Barbato, Chairman Paolo D’Agnolo / Gaetano Terrin Giuseppe Alessio Vernì (substitute) / Paolo Bruno (substitute) GENERAL MANAGER Raffaele Agrusti DEPUTY GENERAL MANAGERS Mel Carvill / Claudio Cominelli / Lodovico Floriani / Aldo Minucci (***) Secretary of the Board of Directors Vittorio Rispoli (***) CORPORATE BODIES AS OF 28 APRIL 2007 TABLE OF CONTENTS Chairman’s letter Report Company highlights ____________________________________________________________________________________________ 14 Economic and insurance market developments ______________________________________________________ 15 The Generali Group’s identity ________________________________________________________________________________ 18 The Group’s strategy for growth __________________________________________________________________________ 19 Part A – Information on the operations of Assicurazioni Generali S.p.A. ______________________ 23 Appendix to the Report ______________________________________________________________________________________ 61 Balance sheet and profit and loss account ________________________________________________________ 65 Notes on the accounts Foreword __________________________________________________________________________________________________________ 95 Part A – Evaluation criteria __________________________________________________________________________________ 95 Part B – Information on the balance sheet and the profit and the loss account ____________ 103 Part C – Other information __________________________________________________________________________________ 169 Appendixes to the Notes on the accounts ________________________________________________________ 177 Securities and urban real estate on which revaluations have been carried out ________________________________________________________________________________________ 265 Companies in which an unquoted shareholding (which is higher than 10%) is held ____________________________________________________________________ 282 Board of Auditors’ report ____________________________________________________________________________________ 345 Independent Auditor’s report and Actuary’s report ____________________________________________ 353 CHAIRMAN’S LETTER Dear Shareholders, The financial statements for 2006, which we are about to approve, are especially meaningful for our Group. The year 2006 marks the 175th anniversary of the foundation of Assicurazioni Generali, and we are celebrating this milestone with the most outstanding annual financial statements in the history of our Company. I am not saying this in the sense of resting on our laurels, but as a source of inspiration, so that in the years to come we will continue to strive for and achieve increasingly ambitious objectives, consolidating our position of excellence on an international level in the future. Our success is the outcome of expertise, dedication and the desire of our human resources to surpass themselves day after day. At the same time, it also reflects our unfaltering ability to be reliable and innovative in responding to the needs and expectations of the growing numbers of customers who continue to choose us. As a way of acknowledging everyone’s contribution to the growth of our Group, we have planned various events to commemorate this important anniversary and allow the general public to join us in our celebration. In keeping with our tradition, we have planned a series of cultural and artistic events, including a commemorative medal. I had the honour of giving the first medal to Giorgio Napolitano, the President of the Italian Republic. We will also publish several books that illustrate the history of Assicurazioni Generali from various standpoints, including works dedicated to agriculture and the Group’s commitment in this sector, an aspect that is not very well known. We have also decided to propose the free assignment of shares in the Parent Company to our employees. Moreover, unlike what we have done in the past, we have decided not to limit this to Assicurazioni Generali employees but to extend it to all Group companies. This is because the changes that have been made in the organizational structure of our Group over the past few years have been so profound that they have indissolubly tied the Company’s success to that of the entire Group. The distribution of these shares is thus our way of thanking everyone for their contribution and of making each person – regardless of the company for which he or she works – more and more a part of the destiny and future of Assicurazioni Generali. 10 At our Central Head Office, we have staged an exhibition of archaeological artefacts from Ancient Rome, unearthed in the early twentieth century during excavation work to construct the Company’s offices in Rome. We have opened the exhibition to the public and to schools in particular, in order to arouse students’ curiosity and interest in the “Roots of the Present”, using an innovative exhibition layout designed to capture the visitors’ attention. The large number of visitors and the appreciation shown by young people and scholars alike have confirmed the value of the exhibition and inspired us to stage it at our Head Office for Italy in Mogliano Veneto. I would like to conclude by emphasising that everything I have said reflects a trait that has characterized our Company from the very beginning: the capacity to evolve constantly, introducing innovations yet also treasuring the values, know- how and experience we have gained over the years. We feel it is extremely important to remain faithful to our roots, founding principles and standards of behaviour towards our stakeholders with whom we interact as part of our business. Indeed, these core values are central to our Ethical Code and are a key part of our strategies. These values are the underpinnings of our long-term commitment in the areas of welfare, culture and sports. Notably, the Group companies have recently added environmental concerns to our list of commitments, as we are aware of the important contribution we can make to protecting the environment, limiting the direct impacts of corporate management on our surroundings, and, indirectly, making a commitment in the area of corporate investments. We are convinced that continuing to carry out our role – in the economic context and in the communities in which we operate – with great responsibility and respect for these principles is the only path to follow in order to maintain our credibility and success in the future. Antoine Bernheim 11 . REPORT Company highlights 2006 2005 2004 (in million euro) Financial Statements Normalized(d) Financial Statements Financial Statements Total gross premiums 7,396.2 5,540.3 5,856.1 5,793.7 Total gross premiums from direct business 3,379.3 3,379.3 3,127.1 2,996.9 Change on equivalent term (a) 8.8% 8.8% 3.7% 3.5% Total gross premiums from indirect business 4,016.9 2,161.0 2,729.0 2,796.8 Change on equivalent term (a) 49.1% -18.9% -3.9% 4.9% Acquisition and administration costs 1,349.1 1,017.9 (b) 1,100.3 1,182.3 Impact on premiums 21.3% 22.0% 21.7% 23.3% Life gross premiums 3,312.6 1,680.9 2,023.3 1,876.7 Change on equivalent term (a) 65.1% -15.6% 6.7% 4.7% Life gross premiums from direct business 95.3 95.3 93.6 76.4 Change on equivalent term (a) 3.3% 3.3% 15.9% 4.5% Life gross premiums from indirect business 3,217.3 1,585.6 1,929.7 1,800.3 Change on equivalent term (a) 68.1% -16.5% 6.3% 4.7% Life acquisition and administration costs 577.4 280.1 (b) 314.4 322.8 Impact on premiums 19.2% 18.8% 17.0% 18.6% Non-life gross premiums 4,083.6 3,859.4 3,832.8 3,917.0 Change on equivalent terms (a) 7.7% 1.9% -3.2% 3.9% Non-life gross premiums from direct business 3,284.0 3,284.0 3,033.5 2,920.6 Change on equivalent