2013 key facts

January

  • GPH deal agreed
  • Investor Day, London

March

  • Acquisition of GPH 1st tranche completed

April

  • Placement of 12% Banca Generali
  • New Board of Directors elected during the General Meeting
  • Group Management Committee (GMC) fully formed
  • Corporate & Commercial unit launched

May

  • Charter of Sustainability Commitments published

June

  • Sale of minority stake in Mexico to Banorte
  • Sale of US Life Re to SCOR
  • Clients hit by floods in Europe supported by Generali

July

  • German minority squeeze-out
  • Generali designated by the Financial Stability Board as a Systemically Important Financial Institution (SIFI)
  • Creation of Generali Italia
  • Group Treasury Project launched

September

  • Agreement with Telefonica concerning Telco

October

  • New regional setup
  • Generali confirmed in the FTSE4GOOD

November

  • Sale of Fata Danni to Cattolica
  • Full control of Generali Asia acquired
  • Investor Day, London

December

  • Squeeze-out approved by Generali Deutschland Holding shareholders

 

Please read some insights on 2013 key facts.

As part of its strategy aimed at achieving a streamlined geographical footprint through the strengthening of its position in key, high-growth potential markets, in January the Generali Group signed an agreement to purchase 25% of Generali PPF Holding, representing the first tranche of the acquisition of the entire company from the PPF Group. Accordingly, the Group holds 76% of Generali PPF Holding. At the same time, Generali PPF Holding transferred to the PPF Group the insurance operations in Russia and other countries of the Commonwealth of Independent States. The Group will have the possibility to acquire the second tranche, equal to the remaining 24% of Generali PPF Holding in 2014.

In line with the Group strategy to have complete control of core activities, in November Assicurazioni Generali S.p.A. completed the acquisition of the minority stake held by the KuoK group in Generali Asia, the holding company that controls the insurance operations of the Group in the Philippines, Thailand and Indonesia, for a value of € 40 million. Generali Asia operates in Indonesia in the life segment with a multichannel distribution system. In the Philippines it is active in the life segment, mainly via bancassurance channels. In Thailand, Generali Asia operates in both the life and property&casualty segments via direct distribution channels and brokers. As a confirmation of the great potential of these markets total premiums from these three markets has grown by 44% in 2013 with respect to the prior year.

With the aim of optimizing the Group’s presence in mature markets, in July the Generali Group concluded an agreement for the purchase of 3% of Generali Deutschland Holding, Germany’s second-largest insurance group, in which a 93% stake was held at the time. Following this transaction, the Group initiated a squeeze-out procedure for the outstanding 4% stake, at a price of approximately € 228 million, in order to take full equity control of the company. Considering the synergies achieved by the transaction and the following delisting, the Group will obtain a return on investment in line with the strategic plan. In support of the transaction, Generali completed the placement of 15.5 million own shares, corresponding to approximately 1% of its share capital. On 4 December 2013, the general meeting of Generali Deutschland Holding approved the squeeze-out procedure requested by Assicurazioni Generali S.p.A..

In line with the organizational restructuring of the Group, with effect from 1 November, the Generali Group completed its territorial simplification into seven geographical areas, which will permit greater coordination between local markets and the Head Office. The structure will consist of the business units for the three major markets — Italy, France and Germany — and four regional organizations: CEE (Central Eastern European countries belonging to the EU), EMEA (Austria, Belgium, Greece, Guernsey, Ireland, the Netherlands, Portugal, Spain, Switzerland, Tunisia, Turkey and Dubai), Asia and LatAm (Argentina, Brazil, Columbia, Ecuador, Guatemala and Panama).

The restructuring of the business in Italy continued during the year, in a market affected by the current national economic situation and currently subject to a process of concentration and consolidation by many local insurance companies. In July, the business unit of Assicurazioni Generali S.p.A. named "Direzione per l’Italia" was transferred to Ina Assitalia. This business unit includes the Italian insurance activities and the main Italian companies, such as AlleanzaToro, Genertel, Genertellife, Banca Generali, Generali Properties and Genagricola. Subsequently, Ina Assitalia assumed the name of Generali Italia S.p.A.. At the end of 2013, AlleanzaToro was incorporated into Generali Italia S.p.A.. With respect to this operation, AlleanzaToro conferred to Alleanza Assicurazioni a line of business named "Ramo Alleanza".

During 2013, the process of centralizing the purchase of contractual reinsurance cover for all operating entities within the Parent Company was completed. In addition to maximizing capital allocation, such centralization allowed an ulterior efficiency with regards to the terms and conditions of the reinsurance programs and the better management and control of counterparty risks. As part of the organizational restructuring and capital optimization process, the centralization of the Groups treasury function is currently underway in order to strengthen the financial analysis which is fundamental for the Group.

With respect to the organizational restructuring of the Group, in November, Assicurazioni Generali S.p.A. concluded an agreement with Allianz to acquire full control of Citylife, an investment property located in Milan, for a total value of approximately € 109 million. The agreement also provided for the sale of the Isozaki Tower and part of the residential component for € 367 million. The agreement is subject to suspension clauses.

In April, in accordance with its strategy of optimizing its capital solidity, the Group successfully concluded the placement of 12% of Banca Generali, thereby improving the Group’s Solvency I ratio.

As part of the process of increasing capital efficiency by optimizing the debt structure, in May Assicurazioni Generali S.p.A. contracted revolving credit facilities for a total amount of € 2 billion, which may be used by the Group within a period of 2 to 3 years. The transaction will have an impact on the Group’s financial debt only if the facility is drawn upon and allows Generali to improve its financial flexibility in order to manage future liquidity needs.

In line with its objective of strengthening its capital position, in September the Group entered into an agreement amending the shareholders’ agreement governing Telco S.p.A. that permits, among other, the possible future sale in addition to establishing the conditions for the redemption of the bond issued by Telco S.p.A. and held by the Group.

With reference to the measures aimed at divesting non-core and non-strategic operations, in October the Group completed the sale of its life reinsurance operations in the United States (for a value of approximately € 680 million) and a 49% stake in the Group’s Mexican companies, after authorizations were obtained from the competent authorities. These transactions are consistent with the strategy of enhancing the Group’s capital strength and yielded improvements in its Solvency I ratio.

In the same context and with respect to the objective of optimizing the Private Equity investments portfolio, in October the Generali Group sold its participation in Agorà Investimenti S.p.A., a holding company which has indirect control of Save S.p.A. for € 60 million. In November, the Group concluded the agreement for the sale of 100% of Fata Assicurazioni Danni S.p.A. for € 179 million. The transaction allowed the Group to further strengthen its liquidity profile and capital structure with an improvement in its Solvency I ratio. The finalization of the sale is subject to the necessary regulatory approvals.

In line with its objective of increasing its property&casualty business, in April the Group established the Global Corporate & Commercial Unit, a platform that will be charged with integrating and developing the property&casualty business and the insurance services aimed at medium-sized and large enterprises at an international level.

As part of the enhancement of the Group’s governance, the Group Management Committee has been expanded and strengthened with the appointment of four new members:

  • in February, Nikhil Srinivasan joined as Group Chief Investment Officer;
  • in April, Carsten Schildknecht was nominated Group Chief Operating Officer;
  • in October, Philippe Donnet joined as Country Manager Italy and Eric Lombard as Country Manager France.

 

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The power of Discipline, Simplicity and Focus251.09 KB
Key business highlights 2013117.23 KB
2014: Transformation and delivery121.03 KB
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