Distributable Profits Generation

Distributable profits are defined as the sum of the profit released by the business and the release of the required capital set aside to support it.

The following table (extract from the EV movement table) shows the generation of distributable profits during 2013, stemming from the new business written during the year and the portfolio already in force at the end of 2012. The table reports both the expected amount of 2013 distributable profit (calculated at the beginning of the year using "real-world" best estimate financial assumptions) and its actual realisation, where the positive impact of economic variances is particularly evident on the higher release of required capital.

Generation of distributable profit during 2013 (€ mln)
  Profit Req. Capital release  Distributable profit 
New business contribution -860
-661
-1,521
In-force business 2,204
709
2,913
Total expected distributable profit 1,343
48
1,392
Operating and economic variances 19
1,679
1,697
Total actual distributable profit 1,3621,7273,089

The following tables show the expected future emergence of undiscounted distributable profits stemming from the portfolio in force at year-end 2013 (i.e. excluding future new business) and from the new business written in 2013, again estimated using "real-world" best estimate assumptions.

Expected undiscounted distributable profits (€ mln)
  In-force businessNew business
Years 0 n/m
-1,521
Years 1-5 12,344
1,134
Years 6-10 8,903935
Years 11-15 6,079
694
Years 16-20 4,298638
Years 21-25 3,022444
Years 26-30 2,206
388
Years 31 onwards 3,534343
Assicurazioni Generali S.p.A. - C.F. e P.IVA 00079760328