UBS - The Italian Financials Conference Rome, February 3rd, 2005

Growth Options for Italian Financials

Assicurazioni Generali Giovanni Perissinotto - CEO Agenda 1

2005 Macroeconomic Context & Trends

Outlook and Growth Drivers for Generali

Future Growth Options: CEE and China

Conclusions Macroeconomic Scenario 2005: Moderate Growth & Inflation Subdued 2

GDP (yoy real growth rate) Equities (Total Return)

29.0 5 28.7 26.5 4 24.0 25.2 3.8 21.5 3.6 19.1 3 19.0 3.0 3.0 16.5 2 14.0 1.6 1.3 11.5 1.5 1 9.0 8.1 8.1 0.5 6.5 6.4 0 4.0 % 2003A 2004E 2005E % 2003A 2004A 2005E

World Euro area USA Japan EMU S&P 500 Japan

Inflation (yoy real growth rate) 10 year government bond

3.0 5.0 4.7 2.4 4.2 2.4 4.2 2.3 2.3 4.0 2.0 4.0 2.1 1.6 3.0 1.0 2.0 2.1 0.0 0.1 1.0 -0.3 1.0 -1.0 % 2003A 2004E 2005E 0.0 % 2003A 2004A 2005E World Euro area USA Japan Euro area US Japan

Source: Generali internal estimates Insurance Sector Themes 2005 3

¾ Moderate, but profitable growth in Continental Europe

¾ Consolidation of restructuring efforts

¾ Segmentation is key

¾ Lower financial returns mean more emphasis on technical profitability and

cost efficiencies

¾ Life gradual slowdown to be boosted by pension reforms in Western and

Eastern Europe in the medium term

¾ P&C softening gradually in selected segments towards year end

¾ IAS and EEV principles will force operational changes Agenda 4

2005 Macroeconomic Context & Insurance Trends

Outlook and Growth Drivers for Generali

Future Growth Options: CEE and China

Conclusions Generali Growth Drivers 2005 5

¾ 2004 exceptional growth year; 2005: a year of consolidation and profitable growth

¾ Growth potential in underinsured markets/businesses lines

¾ Strong networks and effective commercial policies promise higher than market

growth rates, taking advantage of market leadership positions

¾ Well positioned to take advantage of upcoming pension reforms

¾ Improved underwriting quality and restructuring efforts give consistent profitability

gains

¾ Exciting prospects for Eastern Europe and China

¾ Management changes to add value

¾ IAS and EEV drivers of change for information infrastructure and product design Growth Expectations - Core Countries 6

Italy - Gross direct premiums growth (%) 2000 2001 2002 2003 2004 2005 Non Life 6.2 7.4 8.0 5.5 3.7 3.9 of wich Motor 6.5 7.4 8.0 5.6 2.7 2.7 Non Motor 5.7 7.2 8.8 5.4 5.2 5.6

Life 11.8 16.5 19.4 13.5 6.0 5.0 of wich Tradit. Chan. 7.5 2.7 14.2 12.8 8.0 6.0

Total 9.4 12.7 15.0 10.6 5.2 4.6

Germany - Gross direct premiums growth (%) France - Gross direct premiums growth (%)

2000 2001 2002 2003 2004 2005 2000 2001 2002 2003 2004 2005 Non Life 1.4 2.7 3.8 2.7 1.5 1.5 Non Life 4.7 6.8 7.3 6.2 4.1 4.0 of which Motor 2.9 4.8 2.9 2.0 0.3 0.4 of wich Motor 3.6 5.1 5.9 5.1 3.0 2.0 Non-Motor 0.4 1.5 4.4 3.2 2.4 2.6 Non Motor 4.9 6.2 7.6 8.2 7.4 5.0

Life 4.2 1.9 4.2 4.1 3,5* 1,5* Life 20.9 -6.2 1.0 7.6 10.0 6.0

Health 4.0 4.8 6.3 7.3 6.9 6.4 Health & accident 3.4 2.4 6.1 10.4 12.0 6.0 Total 3.1 2.7 4.4 4.1 3.5 2.5 * because of statistical reasons, there might be a different division of Total 15.2 -2.5 3.1 7.4 8.5 5.5 the 5% growth in the period 2004-2005

Source: Generali Research Department Main Drivers Core Countries - Life 7

Italy ¾ 2004: double digit growth both of new business and of gross written premiums ¾ 2005: all distribution channels to deliver good growth rates, above market average ¾ No downward pressure on margins expected

Germany ¾ 2004: exceptional volumes as a build up to fiscal reform introduced 1/1/2005 ¾ 2005: ambitious objective of volumes back to 2003 levels, beating market average growth rate ¾ Corporate pensions offer opportunity Riester products, in which we are leaders, have become more attractive and should show interesting new business growth rates ¾ Potential opportunities arise from the new Rürup policies

France ¾ 2004 exceptional volumes, inflated by comparison with 2003 ¾ 2005 production focused on Unit Linked products with higher margins ¾ Positive contribution from former Continent and Zurich distribution networks expected; efficiencies to be derived ¾ We stick to our policy of non aggressive profit participation Main Drivers Core Countries – P&C and Health 8

Italy ¾ 2004: overall premium growth above market even with continued portfolio pruning in Assitalia; strongly improved technical result ¾ In 2005 we expect to continue to beat market growth improving profitability ¾ We will benefit from the restructuring of Generali Spa Commercial Network ¾ Important cross selling actions will take place in the retail sector

Germany P&C: ¾ After 3 years of portfolio pruning, in 2005 we intend to grow at least in line with the market ¾ Growth will be concentrated in retail non motor business and in profitable segments of motor business Health: ¾ Network well positioned to increase market share

France ¾ 2005 volumes in line with the market ¾ Combined ratio to fall below 100% following focus on profitability Pension Reform in Italy: Medium Term Life Growth from Pension Products? 9

Key Challenge - Capturing Flows from the Pension Reform

- TFR annual flow estimated at €13-15 bln - Diversion of TFR into complementary pension products estimated at 50-60% - External flows will be split by an estimate 40% open funds, 40% closed funds, 20% Individual Pension Products - More flows could derive from fiscal benefits on additional voluntary contributions

Pension reform to benefit:

- companies with existing positions: the Generali Group is market leader in the FIP (Individual Pension Schemes) market (40% market share of new production), manages 4 open pension funds and assets for closed pension funds - companies with distribution capabilities: pension products need to be sold with advice and therefore primarily through Agent and FA channels, where Generali is strongly positioned

Distribution power (source of AuM at YE2003)

Financial Advisors Agents

Banks

Open funds IPPs source: COVIP, UBS Pension Reform in Germany: Main Effects on Life Products 10

As traditional life policies are burdened by the introduction of taxation on investment returns and by premiums not being deductible from taxes, pension products should enjoy good growth rates

Riester policies ¾ Introduced 2002 ¾ Total contribution (50% insured, 50% State) rising to 8% (in 2008) of gross annual income ¾ Benefit formerly only in form of annuity (non inheritable); as from 2005, up to 30% of the benefit can be taken as lump sum ¾ Difficult application procedures have been substantially removed ¾ Attractive product for distribution networks (part of commission paid upfront)

Basis Rente (Rürup policies) ¾ New product to be sold only by insurers ¾ Premiums up to € 12,000 a year can be deducted from taxable income ¾ Attractive product for distribution networks (important amount of commission paid upfront) ¾ Benefit only in form of annuity (non inheritable) and not before the age of 60 Pension Reform in France: PERP Product 11

¾ PERP is a funded individual retirement saving product

¾ Tailored on private sector employees

¾ It enjoys a tax deferral up to 10% of the aggregate net income (max € 23,769 per

person)

¾ Currently the market has been targeting mainly low income segments with negligible

margins, if any

¾ We estimate this niche to be “on the move” not before 2006/2007, and are currently

witholding a strong entry into this market

¾ We are concentrating our efforts toward upper-income segments, who require more

structured products to enter into long-term savings. This is a time-consuming

process but more remunerative in the long run

¾ We are market leaders in the “Madeleine” retirement product for the self employed Distribution is Our Strength 12

¾ Multi-channel distribution

¾ Investment in exclusive distribution channels to: - improve sales effectiveness - present an integrated product offer - redesign administrative processes at the agency

¾ Strong focus on education and training

Agents + Subagents + employed part time Banking salesforce salesforce FAs branches Broker

Italy 10,829 26,744 5,084 2,940 1,000

Germany 11,200 95,500 30,000 725 15,000

France 3,500 (*) 2,200 3,230

(*) Of which 400 agents from former Le Continent & Zurich operations Bancassurance 13

¾ We consider bancassurance as a complementary distribution channel to increase customer base and enhance cross selling

¾ Italy – Intesa Vita deal (9/2003) – 2,940 branches; we are confident to outperform our 2004 target of 5 Euro bln

¾ Germany – agreement with Commerzbank – 725 branches: production in line with original target within 2004

¾ Spain – 2004 joint venture with Cajamar – 751 branches

¾ Partnerships in CEE: - Hungary: CIB () - Czech Republic: GE Capital - Slovakia: VUB (Banca Intesa) - Poland: Bre (Commerzbank) - Slovenia: SKB (Societe Generale) Personal 14

Generali Group: PFS Structure In Italy

Intesa Group Generali Group Assicurazioni Generali Assicurazioni Generali 25% 75% 100% 100%

Generali Asset La Venezia Management Assicurazioni

Asset Management Insurance company focused PFS distribution platform within Company with a dedicated on the retail business of Banca Generali Group unit to Retail Business Generali

Banca Generali ¾ Targeted services to affluent customers ¾ Integration with Banca Primavera has been finalised with success ¾ Positive net inflows: 824 Euro mln in the first 11 months of 2004 ¾ Market share increasing to 12% from 9.5% ¾ 15 Euro bln AUM (ranking 4th in the sector) ¾ Strengthening of top management: appointment of Mr. Motta as General Manager Revising Product Portfolio 15

¾ Dynamic marketing campaign promotes renewed image

¾ Efficient customer segmentation strategy

¾ Multi brand distribution enhances segmentation and avoids cannibalisation

¾ Product design to:

¾ increase customer base

¾ maximise cross selling also through launch of product packages

¾ reduce average customer age

¾ increase product per customer

¾ Development of new products for specific segments and new needs, such

as Long Term Care Recent Management Changes to Add Value 16

¾ Top management average age substantially reduced ¾ Share of international managers in Head Office increased ¾ Introduction of new compensation systems linked to shareholder value creation

Main local top management changes: ¾ Italy: – La Venezia: Antonella Maier (General Manager from 2004) – Assitalia: Franco Procaccini (Chairman from 2004 - end of restructuring phase) – Alleanza: Luigi Molinari (Chairman from 2005), Ugo Ruffolo (CEO from 2004), Sandro Panizza (Head of Strategic Planning and Control from 2004) – Banca Generali: Piermario Motta (General Manager from 2005) – Genertel: Davide Passero (CEO and General Manager from 2005) ¾ Austria: Karl Stoss (CEO from 2005) ¾ Switzerland: Alfred Leu (CEO from 2005) Business Model Streamlining 17

¾ Limited synergies exploitable cross border due to language and legal barriers Distribution Channels

¾ Cost efficiencies being maximised among same Agents Bank FAs country group companies and in common

language areas Centralised Services ¾ Centralisation of IT and back office services in IT and Administration Italy and German speaking area to be replicated Claims Settlement Services in France following integration of Le Continent Real Estate Asset Management and Zurich

¾ Additional efficiencies to be derived from

synergies in France and from centralisation and

informatisation of purchasing activities in Italy

¾ Centralised Real Estate and Asset Management Agenda 18

2005 Macroeconomic Context & Insurance Trends

Outlook and Growth Drivers for Generali

Future Growth Options: CEE and China

Conclusions Central Eastern Europe Positioning 19

Country presence Business mix

PL

CZ P&C Life SK 70% 30%

A H SLO HR RO

Countries that are already profitable

¾ Overall Gross Written Premiums in 2004: approx € 800 mln ¾ 2004 bottom line net profit ¾ CoR 2004 (net): well below 100% ¾ Overall positioning: 4th ¾ Number of customers: 3.3mln ¾ Assets under management: 1.095 mln Eastern European Countries: 2005 Developments 20

Organic growth: ¾ total premium growth of 12,5%, up to € 900 mln ¾ market share increases in Poland, Slovakia, Slovenia, Croatia, Czech Republic and Romania ¾ maintaining leading market share in Hungary

Possible external growth ¾ Acquisitions are an opportunity that the Group is willing to pursue

Pension funds: ¾ we have created pension funds in Poland (ranked 6th), Hungary (Compulsory ranked 6th; Voluntary Contribution Pension Fund ranked 13th), Czech Republic (ranked 11th), Slovakia (new j.v. with Intesa; target of 20% market share) ¾ further pension reforms are expected in the region Profitability: ¾ break-even reached in Hungary, Czech Republic, Poland and Romania ¾ break-even in 2005 for Slovakia

Optimisation of Non-Life business mix: ¾ rising the share in profitable life and retail non life business

Distribution: ¾ multichannel approach ¾ focus on exclusive agents and development of bancassurance Our Operations in China 21

¾ Our JV partner is the China National Petroleum Corporation (CNPC), the largest petroleum company in China In 2003 CNPC ranked 52nd by the Fortune Global 500 in terms of sales revenue, totalling 66,4 billion US$ (+15,7% over 2003) and generating a profit of US$ 13,3 billion (+50% y.o.y.) CNPC totals 1,3 million employees

¾ According to official data of CIRC (China Insurance Regulatory Commission), the insurance industry has shown a C.A.G.R. of 44% between 1989 and 2002. CIRC forecasts the growth to continue in the next 10 years at an annual rate of 15%.

¾ Generali China has obtained the license to conduct individual life business in 2002 and very recently also the group life license

¾ Generali China has its two main offices in Beijing and Guangzhou, and has more recently opened-up for business also in Foshan. We expect further expansion in other Provinces in the very near future

¾ Generali China ranks 5th among the 20 J.V. currently operating in China

¾ Total premiums written in 2004 reached € 32,7 Mio

¾ The strategic model adopted lies on a multi-distribution approach to the customer base, i.e. through a tied agency network (1,300 exclusive agents) and a bancassurance channel. Among the distribution agreements of Generali in China, the most remarkable is the alliance forged with the Industrial and Commercial Bank of China (ICBC) in Beijing Positioning in the Chinese Group Policies Business 22

¾ In January 2005, we were awarded by CNPC our first group plan for 2.4 bln US$

¾ Plan Characteristics: - Group Supplementary Pension Plan for 390,000 retirees of CNPC - Single Premium - Benefits paid as life immediate annuities

¾ Notwithstanding the absolute exceptional nature of this premium, we are convinced that the state-of-the-art technical, financial and IT structure we were able to build-up in order to manage this deal will allow us to fulfil the expectations of future national and international corporations in the Group Pension and Risk sectors, allowing us to be one of the major players in the fast-growing Chinese insurance market Agenda 23

2005 Macroeconomic Context & Insurance Trends

Outlook and Growth Drivers for Generali

Future Growth Options: CEE and China

Conclusions Conclusions 24

¾ We are focusing on profitable growth

¾ Our strong distribution capabilities, product innovation and business streamlining efforts should put us in a privileged position

¾ We are optimistic for 2005 notwithstanding a slowdown in the macroeconomic context 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.