Half-Yearly Consolidated Financial Report 2019
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Generali Group Half-Yearly Consolidated Financial Report 2019 188th | generali.com Half-Yearly Consolidated Financial Report 2019 Please note that the Report is translated into English solely for the convenience of international readers. 2 Generali Group Half-Yearly Consolidated Financial Report 2019 Corporate bodies at 31 July 2019 Chairman Gabriele Galateri di Genola Vice-Chairmen Francesco Gaetano Caltagirone Clemente Rebecchini Managing Director and Group CEO Philippe Donnet Board members Romolo Bardin Paolo Di Benedetto Alberta Figari Ines Mazzilli Antonella Mei-Pochtler Diva Moriani Lorenzo Pellicioli Roberto Perotti Sabrina Pucci Board of Statutory Auditors Carolyn Dittmeier (Chairwoman) Antonia Di Bella Lorenzo Pozza Francesco Di Carlo (Alternate Auditor) Silvia Olivotto (Alternate Auditor) Board secretary Giuseppe Catalano Assicurazioni Generali S.p.A. Company established in Trieste in 1831 Registered office in Trieste, piazza Duca degli Abruzzi, 2 Share capital € 1,569,773,403 fully paid-up ISIN: IT0000062072 Fiscal code, VAT and Venezia Giulia Companies’ Register no. 00079760328 Reuters: GASI.MI Company entered on the Register of Italian insurance and reinsurance companies under no.1.00003 Bloomberg: G:IM Parent Company of the Generali Group, entered on the Register of insurance groups under no. 026 Pec: [email protected] Contacts available at the end of this document 3 Index Interim Management Half-Yearly Condensed Consolidated Report Financial Statements 7 Group’s highlights 31 Consolidated financial statements 8 Key half-yearly facts, significant events 41 Notes after 30 June 2019 and 2019 corporate event calendar 87 Appendices to the Notes 10 Group’s performance and financial position 12 Life segment Attestation and Report 13 Property & Casualty segment 127 Attestation to the Half-Yearly 14 Asset Management segment Condensed Consolidated Financial 15 Holding and other businesses segment Statements pursuant to art. 154-bis, par. 5 of legislative decree 15 From operating result to Group’s result of 24 February 1998, no. 58 and art. 81-ter of Consob regulation of 14 May 1999, no. 11971 as amended 16 Group’s financial position 17 Outlook 131 Independent Auditor’s Report 18 Appendices 24 Note to the Report 134 Glossary 138 Contacts Interim Management Report 7 Group’s highlights 8 Key half-yearly facts, significant events after 30 June 2019 and 2019 corporate event calendar 10 Group’s performance and financial position 12 Life segment 13 Property & Casualty segment 14 Asset Management segment 15 Holding and other businesses segment 15 From operating result to Group’s result 16 Group’s financial position 17 Outlook 18 Appendices 24 Note to the Report 6 Generali Group Half-Yearly Consolidated Financial Report 2019 Interim Management Report Half-Yearly Condensed Consolidated Financial Statements Attestation and Report 7 Glossary available at the end of this Group’s highlights document GROSS WRITTEN PREMIUMS OPERATING RESULT +1.8% +7.6% € 35,728 mln € 2,724 mln NET PROFIT ADJUSTED NET PROFIT1 +34.6% +6.4% € 1,789 mln € 1,310 mln REGULATORY SOLVENCY RATIO TOTAL ASSETS UNDER MANAGEMENT (AUM) –8 pps +24.1% 209% € 606 bln LIFE LIFE NET INFLOWS NBV OPERATING RESULT +29.5% +1.3% +4.0% € 7,387 mln € 942 mln € 1,611 mln Gross written premiums € 24,321 mln (+0.9%) P&C GROSS WRITTEN PREMIUMS COR OPERATING RESULT +3.9% –0.2 pps +1.4% € 11,407 mln 91.8% € 1,121 mln In the Report, changes in premiums and Life net inflows were presented at equivalent terms (at constant exchange rates and consolidation scope) while changes in new business at constant scope. Operating result, Assets Under Management and Life technical provisions excluded assets under disposal or disposed of during the period. 1 Adjusted for the impact of gains and losses from disposals. 8 Generali Group Half-Yearly Consolidated Financial Report 2019 Key half-yearly facts, significant events 2019 after 30 June 2019 January February March April Sale of Generali Belgium, launched in Europ Assistance acquired Trip Mate, Following an agreement signed in Signed an agreement to take over April 2018, completed; however, the the leading company in the market of July 2018, closed the sale of the the insurance portfolios of three Group remains present in Belgium travel insurance for tour operators in entire shareholding in Generali entities of ERGO International AG in through its Global Business Lines, the United States. Worldwide Insurance Company Hungary and Slovakia in line with the continuing to provide insurance and Limited, that has its headquarters Group’s strategy to further enhance assistance solutions. Closed the acquisition of the majority in Guernsey and specializes in its leading position in Europe. The stake in Sycomore Factory SAS, offering Life-insurance-based wealth sale is subject to certain regulatory AM BEST confirmed the Generali’s started in September 2018. The management and employee benefit and anti-trust approvals. Financial Strength Rating (FSR) strategic partnership, that is another solutions to a global audience, and at A (Excellent) and upgraded its step forward in the execution of in Generali Link, an Irish company Through a strategic partnership, Long-Term Issuer Credit Rating (ICR) Generali’s asset management providing shared services in fund announced the first Italian boutique, from “a” to “a+”. The Long-Term ICR strategy, will allow to enrich the and policy administration. However, ThreeSixty Investments, a new asset outlook was modified from positive offering with innovative investment Generali Worldwide will continue to management company aimed at to stable, while the FSR outlook solutions and to strengthen focus act as the partner of the employee developing multi-asset strategies, remained stable. and capabilities on sustainability and benefits network of Generali and the with a distinctive and innovative responsible investments for clients. latter will manage its health portfolio investment process, to serve the A € 500 million subordinated bond in the Caribbean, as to maintain its needs of clients around the world, issue was successfully placed with Closed the acquisition of Adriatic presence in the region with the aim both private and institutional. institutional investors, for the partial Slovenica and its subsidiaries, that to further reinforce it in line with its refinancing of € 750 million in provide a full suite of P&C, health, life strategy of sustainable growth and Increased the share capital of subordinated debt of the Group, with and pension products. excellence in service. Assicurazioni Generali to the first call date in 2019. The issue € 1,569,600,895 in in execution received orders from roughly 450 Announced the launch of Axis of the Long-Term Incentive Plan investors for a total in excess of € 6.5 Retail Partners, a new real estate approved by the Shareholders’ billion, 13 times the amount offered. boutique focusing on shopping centre Meeting in 2016. The rating agencies Fitch, Moody’s investments. The partnership is in and AM Best rated that issue “BBB”, line with the Generali’s strategy to Completed the sale of 89.9% “Baa3” (hyb) and “a-”, respectively. further increase its exposure to real of the shares of Generali estate, where it is already one of the Lebensversicherung and established Option of early redemption world’s leading investors through the industrial partnership with announced on all outstanding Generali Real Estate. Viridium Gruppe in the German perpetual subordinated notes insurance market, aimed at belonging to ISINs XS0415966786 managing Life insurance closed book and XS0416148202, to be exercised portfolios. in March for a € 700 nominal amount. The exercise of this option was authorized by the Italian insurance regulatory agency (IVASS) and will take place with respect to all notes outstanding, in compliance with the respective terms and conditions. Interim Management Report Half-Yearly Condensed Consolidated Financial Statements Attestation and Report 9 www.generali.com/media/press-releases/all and 2019 corporate for further information on press releases event calendar May June July The Shareholders’ Meeting approved Fitch upgraded the Generali’s Assicurazioni Generali will exercise Signed an agreement for the the 2018 financial statements, the Insurance Financial Strength (IFS) the early redemption option acquisition in Portugal of 100% of the Group’s remuneration policy and credit rating to “A” from “A-” and on all outstanding perpetual company Seguradoras Unidas and Long-Term Incentive Plan (LTIP) confirmed its Issuer Default Rating subordinated notes belonging to ISIN the service company AdvanceCare. 2019, and the share plan for the (IDR) at “A-”. The outlook remained XS0440434834 for a € 50 nominal The transaction represents an employees of the Generali Group negative on both ratings. amount. The early redemption of important step in the execution of aimed to promote the achievement all outstanding notes - which will the Group’s three-year strategy of the strategic objectives, a culture take place in accordance with the which aims to strengthen Generali’s of ownership and empowerment, as relevant terms and conditions - was leadership in Europe well as the employees’ participation authorized by the Italian insurance to Group sustainable value creation. regulatory agency (IVASS). Increased the share capital of Some amendments to the Articles Assicurazioni Generali to of Association were also approved, Completed the 100% acquisition € 1,569,773,403 in execution of the among which