GENERALI GROUP PRESENTATION OF 2004 FULL YEAR RESULTS by presmaster

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									                                        PRESS RELEASE


    GENERALI GROUP: PRESENTATION OF 2004 FULL YEAR RESULTS

•       NORMALISED ROEV IMPROVES TO 11.2% FROM 10.8% IN 2003
•       TOTAL VALUE OF NEW PRODUCTION GROWS TO € 692 MILLION (+26.6%)
•       VALUE OF EXISTING PORTFOLIO INCREASES TO € 9.5 BILLION (+4.2%)
•       EMBEDDED VALUE GROWS BY € 1,565 MILLION TO € 23.5 BILLION (+7%)
•       EXCESS CAPITAL AT € 1.6 BILLION



                th
Trieste, April 13 , 2005. At a meeting with the financial community being held in London, Generali’s
joint CEOs Sergio Balbinot and Giovanni Perissinotto will present the Group’s results for the financial
year 2004.

As part of the presentation of the full year 2004 figures, the market will be provided with the value of
business in force and the value of new life and third party asset gathering business production
both certified by Tillinghast-Towers Perrin, the international actuarial consultants. As usual, these
figures are calculated net of taxes, external reinsurance, cost of solvency margin and minorities.

The normalised Return on Embedded Value (RoEV), the Group’s principal performance indicator,
which measures value created for shareholders, increased to 11.2% (2003: 10.8%). This RoEV figure
exceeded the target of 10.9% for 2004, driven by a substantial increase in the value of new life
business production and an improving combined ratio in non-life business.

The year-end Embedded Value (EV) was € 23,503 million in line with the target for 2004, growing by
€ 1,565 million (+7%) on the reported EV figure for 2003 of € 21,938 million. The EV per share was €
18.4 (2003: € 17.2)

At € 692 million (2003: € 547 million), with a growth of 26.6%, the value of new business
production, including asset gathering, exceeded the € 580 million target for 2004.
Specifically, the value of new life business production increased 29.7% to € 653 million (2003: € 504
million) with an increase in net margins to 18.5% from 17.9%.
A significant contribution to the increase in net margins resulted from decisive actions taken to focus
on profitability through product innovation and cost cutting.
The value of new asset gathering production reached € 39 million (2003: € 43 million).

The value of the existing portfolio (VIF), including life business and asset management portfolios,
increased by 4.2% to € 9,467 million (2003: € 9,084 million).
The value of the life business portfolio increased by 5.2% to € 8,900 million (2003: € 8,464 million).
The value of asset gathering business was € 567 million (2003: € 621 million).

The return on economic capital was 11.7% in life and health, 12.1% in non-life and 11.1% in asset
management. Excess capital went down to € 1.6 billion (2003: € 1.7 billion) as the strong increase in
new business volume absorbed capital.
                                                  31.12.2004             Target 2004                       Target 2005
Consolidated premiums (bn)                           56,3                    53,3                              56,4
Combined Ratio                                     100.9%                  102.1%                            100.3%
Net profit (mln)                                     1,315                  1,203                             1,508
Value of new business production (mln)                692                    580                               660
Embedded Value (bn)                                  23.5                    23.5                              25.7
RoEV normalised                                     11.2%                   10.9%                             11.9%




   Glossary
   Combined Ratio = Expense Ratio (general and acquisition costs on net written premiums) + Loss Ratio (claims
   incurred on net earned premiums)

   Embedded Value = NAV adjusted + VIF

   NAV adjusted = shareholder’s funds + shareholder share of unrealised capital gains/losses + equalisation
   reserves – intangibles – dividend

   Value of Life Business in Force (VIF) = Present value at valuation date of future profits from business in force
   less cost of solvency capital

   Value of New Business (NBV) = Present value of future profits from business issued in the period less cost of
   solvency capital, at issue date

   RoEV = return on the embedded value

   Excess Capital= Embedded Value – Economic Capital

   Economic Capital= risk based capital + VIF




    PRESS OFFICE                                                           INVESTOR RELATIONS
    Lorenzo CARUSO                                                         Silvia BARETTINI
    Tel. +39.040671085                                                     Tel. +39.0248248472
    lorenzo_caruso@generali.com                                            silvia_barettini@generali.com
    Lucia SCIACCA                                                          Stefano BURRINO
    Tel. +39.040671180                                                     Tel. +39.040671202
    lucia_sciacca@generali.com                                             stefano_burrino@generali.com
                                                                           Luca DELLA SANTA
                                                                           Tel. +39.040671347
    www.generali.com                                                       luca_dellasanta@generali.com

								
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