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Assicurazioni Generali Group Sal Oppenheim rd European

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					Assicurazioni Generali Group

Sal Oppenheim 2006
3rd European Financials Conference




Mel Carvill - Deputy General Manager, Head of Enterprise Risk
Management, Strategic Planning and Corporate Finance

                                         Zurich, November 29th, 2006
                            March 2006
Agenda                                                                                                  2




                        I. Our Vision                                             III. Update on Toro
                                                                                       Acquisition


                        II. Delivering upon our                                   IV. 3Q06 results
                            Promises



                        V. Conclusion




2006 Sal Oppenheim European Financials Conference – Zurich, November 29th, 2006
Agenda                                                                            3




            I. Our Vision




2006 Sal Oppenheim European Financials Conference – Zurich, November 29th, 2006
Our Long Term Vision                                                                                          4




Achieved and                                           Accelerate the pace          Leading long term
exceeded                                               of change                    insurance and financial
2003 – 2005 targets                                                                 services provider




     Focus on value                                      Operational              Mission unchanged
     creation                                            improvement              A leading insurer
     Country-based                                       Growth & innovation      measured by value
     initiatives                                         Capital optimisation     creation
     Develop role of                                     Enhanced governance      Further accelerate
     corporate centre                                                             performance
                                                                                  improvement


       2003 – 2005                                              2006 – 2008          2009 onwards
2006 Sal Oppenheim European Financials Conference – Zurich, November 29th, 2006
Agenda                                                                            5




           II. Delivering upon our
               Promises




2006 Sal Oppenheim European Financials Conference – Zurich, November 29th, 2006
Strategic Initiatives taken in 2006                                                                                                 6



 Capital                             AMB (Share: 85.05%)
 Optimisation:                       Generali Holding Vienna (Share: 100%)
                                     Generali Schweiz Holding (Share: 100%)
 Minorities                          Migdal (Share: 69.9%)
 Buyout

 Growth and                          Acquisition of majority shareholding in Delta Osiguranje, Serbia’s largest private insurance
 innovation:                         company (Life and P&C)
                                     Acquisition of 100% of Libertas insurance company (Croatian life insurer)
 Acquisitions                        J.V. agreement in India with Pantaloon Retail, leading retailer. Set up Future Generali J.V.
 & J.V.                              (Life and P&C)
                                     Acquisition of 51% of Garant Auto and Garant Life (respectively No.2 and 3 of Ukraine)
                                     Acquisition of a 51% shareholding in Orel-G Holding, leading insurance player in Bulgaria
                                     Acquisition of Banca Unione di Credito, with AuM at CHF 4.6 billion (Private Banking
                                     activity in Switzerland)

 Operational                         Simplification and rationalisation of corporate organisation and business structure in Italy
 Improvement:                               Merger of Generali Vita and Assicurazioni Generali S.p.A.
                                            Integration of INA and Assitalia under the INA Assitalia brand name

 Restructuring                       Reorganisation of French activities
 Initiatives                         Integration of Italian activities of BSI into Banca Generali

2006 Sal Oppenheim European Financials Conference – Zurich, November 29th, 2006
Group programs update                                                                                                7



                                                                             Expected 2008
 (Euro mln)                                                                  pre-tax impact
 Scale-based              Asset Management                                             140
 programs
                          Risk Management                                               30    Implementation in
                                                                                              line with Plan
                          IT consolidation                                              80
                                                                                              Targets confirmed
                          Group Treasury                                                30
                                                                                              Key additional
                                                                                              benefits:
                                                                                                Internal knowledge
 Skill-based              Motor pricing                                                160
 programs                                                                                       sharing
                          Operational excellence                                       130
                                                                                                200+ technical
                          Claims management                                            130      managers involved
                                                                                                in working groups
                          Innovation lab                                               N/A



2006 Sal Oppenheim European Financials Conference – Zurich, November 29th, 2006
Progress Report on Group Programs: Overview                                                                      8



      Completed

      In progress                                                                 Target Model           Implemen-
                                                          Diagnostic                             Pilot
                                                                                  design                 tation
                         Program
                        1. Asset Management


                        2. Risk Management
 Scale-based
 Programs
                        3. IT Consolidation


                        4. Group Treasury


                        5. Motor Tariff

                        6. Claims Management
 Skill-based
 Programs
                        7. Operational Excellence

                        8. Innovation Lab




2006 Sal Oppenheim European Financials Conference – Zurich, November 29th, 2006
Scale-based group programs – Progress review                                                                                          9

                        Progress to date                                          Targets
Asset                         New Corporate structure, under Generali                50 bp performance improvement (with
Management                    Investments holding, in course of                      similar risk profile) by
                              implementation (to be finalized by 1Q07)                   Asset classes diversification
                                                                                         Active tactical derivative
                              New “multi-boutique” organization implemented              Total return approved for Non-life assets
                              Common IT platform implemented in Italy and                Concentration of assets with best managers
                              France                                                     (centers of competence)

Risk                          Infrastructure setup to enhance the risk               Completion of infrastructure setup
management                    governance process, introduce market                   Extension to all the Group countries with
                              consistent measurement of capital and                  familiarization initiatives
                              shareholder equity and optimize the risk return
                              trade off
IT                            Consolidation of French and Spanish IT                 EUR 80 million pre-tax impact by 2008
consolidation                 infrastructure to Italy and Germany agreed and         targeted; additional benefits expected
                              launched: savings expected EUR 15 - 20 million         in 2009-2010 (multi-year program)
                              Common telecom network and desktop
                              configuration developed: savings expected for
                              ~ EUR 20 million
                              Identification of savings levers by harmonization
                              and integration of infrastructure Italy and
                              Germany ongoing
                              Global ICT procurement unit set up and
                              identification of savings levers ongoing
Group                         Target model defined and positively presented          More efficient investments of residual
treasury                      to ISVAP                                               liquidity
                              Pilot implementation in Italy kicked-off               Italian implementation and start
                                                                                     extension to foreign countries by 2007
2006 Sal Oppenheim European Financials Conference – Zurich, November 29th, 2006
Progress Report on Group Programs: Overview                                                                      10



      Completed

      In progress                                                                 Target Model           Implemen-
                                                          Diagnostic                             Pilot
                                                                                  design                 tation
                         Program
                        1. Asset Management


                        2. Risk Management
 Scale-based
 Programs
                        3. IT Consolidation


                        4. Group Treasury


                        5. Motor Tariff

                        6. Claims Management
 Skill-based
 Programs
                        7. Operational Excellence

                        8. Innovation Lab




2006 Sal Oppenheim European Financials Conference – Zurich, November 29th, 2006
Skill-based group programs – Progress review                                                                                           11

                        Progress to date                                                   Targets
Motor pricing                 Completed AMB-Generali pilot                                    EUR 30 million pre-tax impact expected
                              Pilot in Assitalia nearly completed, taking into                in 2006
                              account also new direct settlement rule in Italy                EUR 160 million target for 2008
                              Extension of the program to Toro and Genertel                   confirmed
                              by 2007
                              Pilot in Generali France to be launched
                              by 1H07

Operational                   Identified and validated bottom-up cost                         EUR 130 million pre-tax impact by 2008
excellence                    efficiency levers on top of local plans                         confirmed and validated bottom-up with
                                   Streamlining of core operations                            countries/companies COOs
                                   Consolidation of support functions
                                   Optimization of procurement
                                   Corporate structure simplification (internal mergers)


Claims                        Target “reference” organizational model                         EUR 130 million pre-tax impact by
management                    developed (including productivity benchmarks)                   2008 confirmed
                              3 “quick wins” identified and launched; closed
                              file review; litigation management; group
                              partnerships

Innovation                    Three ideas scouted and selected                                Not applicable
Lab                                Flexible variable annuity
                                   Web-based platforms for sales and servicing
                                   Customer insights



2006 Sal Oppenheim European Financials Conference – Zurich, November 29th, 2006
Accelerated Group program – Third age service model                                                                              12



Objectives Develop a focused business model to serve the “third-age” customer segment:
           asset de-cumulation, guaranteed-income protection, longevity and morbidity risk
           protection, health-care solutions




Program             Customer                     Product                      Service         Distribution       Branding and
pillars             insight                      offering                     proposition     model              communication

                        Proprietary                 Income                        Generali      Channel            Common
                        market                      replacement                   third-age     strategy           branding
                        research                    Hedging of                    solutions     Incentives         Customer
                                                    “third-age”                                 schemes            education
                                                    risks                                       Skill building
                                                                                                Advice



Expected                              Position Generali as the market leader in the “third-age” segment
benefits                                                 (long-term financial well-being)




2006 Sal Oppenheim European Financials Conference – Zurich, November 29th, 2006
Agenda                                                                            13




           III. Update on Toro Acquisition




2006 Sal Oppenheim European Financials Conference – Zurich, November 29th, 2006
Toro Integration Plan                                                                                                     14



 Leadership in                     Leading position in the profitable Italian P&C market increasing the weight of
 the Italian                       the retail portfolio
 P&C market
                                   Strengthening the key distribution channel in Italy optimising also the
                                   geographic mix

 Management                        New CEO appointed: Mr. De Puppi
 team
                                   Ongoing discussions with Management team – good progress

 Country                           Integration                                    Coordination and functional reporting
 model                                   Claims (GGL)                                 Reinsurance
                                         Information Technology (GSI)                 HR and organisation
                                         Asset Management (GI)                        Tax and legal
                                         Accounting and purchasing (GSA)              Strategic marketing and product
                                                                                      development

                                   Total synergies in 3 years Euro 225-250 mln pre -tax

 Update on                         At the end of September ISVAP authorized the acquisition
 acquisition                       CONSOB approved the Tender Offer Document on 9th November
                                   Offer period lasts from 13rd November to 12th December
                                   Italian Antitrust Authority approval pending
2006 Sal Oppenheim European Financials Conference – Zurich, November 29th, 2006
Agenda                                                                            15




           IV. 3Q06 results




2006 Sal Oppenheim European Financials Conference – Zurich, November 29th, 2006
3Q06 Consolidated Key Numbers                                                                                                                                16



Gross premiums(1) (Euro bln)                                                                          Net result (Euro mln)

                                                                                                                                           +23.2%
                         46.5       46.4                         -0.3% historical

                         13.1       13.3                      +3.0% like for like (2)                                             1,941
         P&C                                                                                                          1,576

                         33.5       33.1
         Life

                        3Q05        3Q06                                                                               3Q05       3Q06
(1) Life premiums include investment contracts for Euro 0.7 bln at 3Q06 and Euro 0.5 bln at 3Q05.
(2) On like for like basis, excluding one off single premium in China in 3Q05


Shareholders’ equity (Euro bln)                        Combined ratio (%)                             Life expense ratio (%)

                                    +3.6%                                                  -0.4%pts                                       +0.4%pts


                  13.9       14.4
                                                                        96.3                                           9.8
                                                                                                                           (2)    10.2
                                                                                    95.9




                 FY05       3Q06                                        3Q05      3Q06                                3Q05        3Q06
                                                                                                      (2) On like for like basis, excluding one off single
                                                                                                          premium in China in 3Q05
2006 Sal Oppenheim European Financials Conference – Zurich, November 29th, 2006
Life Premiums Update                                                                                                                                                     17



Gross written premiums(1) (Euro mln)                                                 New production (Italian measure) (Euro mln)
                                                             -1.3% historical                                                                      -6.5% historical
                                                                                                                  19,949
                                                                                        Single                                  18,655
                                                          +3.4% like for like (2)       Premium                    1,956                       +3.7% like for like (1)
            33,487                        33,047                                        China
                                                                                                                   8,620         9,965
                                                                                        International



                                                                                        Italy
                                                                                                                   9,374         8,690
             3Q05                          3Q06
 (1) Including investment contracts
                                                                                                                   3Q05          3Q06
 (2) On like for like basis, excluding one off single premium in China in 3Q05      (1) On like for like basis, excluding one off single premium in China in 3Q05




              Unit Linked                             Inv. Contracts
              20.3%                                   2.2%
                                                                                          Life business: 71% of consolidated premiums
                                                             Health
                                                             6.7%                         Confirmed higher demand for Unit / Index
                                                                 Group                    Linked and health products
                                                                 10.5%                    Good development in Germany, Austria,
    Traditional
                                                             Reinsurance                  Spain and Eastern Europe
    58.2%
                                                             2.1%



2006 Sal Oppenheim European Financials Conference – Zurich, November 29th, 2006
P&C Premiums Update                                                                                                            18



Gross written premiums (Euro mln)                                                 Premiums breakdown (%)
                                                     +2.2% historical
                                                                                    Motor                  Accident / health
                                                                                    41.6%                  13.4%
          13,054                    13,340          +2.3% like for like



                                                                                                               Other retail
                                                                                                               20.7%


           3Q05                       3Q06                                          Reinsurance              Commercial
                                                                                    2.8%                     21.5%



                  P&C business: 29% of consolidated premiums
                  Retail oriented business mix
                  Weak GDP growth and pressure on tariffs in commercial lines growth
                  Flat trend in Germany; modest increases in Italy and France; robust growth in Spain,
                  Switzerland and CEE




2006 Sal Oppenheim European Financials Conference – Zurich, November 29th, 2006
Agenda                                                                            19




           IV. Conclusion




2006 Sal Oppenheim European Financials Conference – Zurich, November 29th, 2006
Conclusion                                                                          20




                                                              Our priorities are

                                             Push growth in tomorrow’s markets

                                         Consolidation in our traditional markets

                                              Complete organisational changes

                                                              Integration of Toro

                                                        Improve financial results




2006 Sal Oppenheim European Financials Conference – Zurich, November 29th, 2006
Disclaimer                                                                                                 21




            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.




2006 Sal Oppenheim European Financials Conference – Zurich, November 29th, 2006
Assicurazioni Generali Group

Sal Oppenheim 2006
3rd European Financials Conference




Mel Carvill - Deputy General Manager, Head of Enterprise Risk
Management, Strategic Planning and Corporate Finance

                                         Zurich, November 29th, 2006
                            March 2006

				
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