Results by Geographical Area

The table below shows the development of EV (and its components) and the return on EV in the main areas (represented for reporting purposes by Italy, France, Germany, Central and Eastern Europe, Europe Middle East and Africa, Latin America and Asia).

Breakdown of Embedded Value results by geographic area (€ mln)
 Return on EVEVVIFANAV
  20132012Change20132012Change20132012Change
Italy 63.6% 8,175 5,836 40.5% 3,909 860 364.9% 4,266 4,976 -14.3%
France 37.8% 5,134 3,730 37.6% 1,987 812 144.7% 3,147 2,918 7.8%
Germany 16.6% 4,994 4,178 15.4% 3,787 3,104 17.9% 1,207 1,074 8.5%
Central Eastern Europe 3.3% 1,492 1,160 -6.1% 1,154 900 -5.7% 338 260 -7.3%
EMEA 36.1% 5,760 4,234 36.9% 3,472 2,203 59.2% 2,288 2,031 12.9%
Lat.Am.&Asia 12.9% 581 2,262 15.2% 151 1,474 14.9% 430 788 15.3%
Total 37.1% 26,136 21,400 29.6% 14,460 9,352 72.1% 11,676 12,047 -0.8%
% changes are on a comparable basis

The excellent return on EV in all main geographical areas is essentially due to the strong VIF recovery on account of the more favourable economic conditions at year-end 2013, whereas the poor return in Central Eastern Europe (+3.3%) is explained by the negative impact of the recent pension fund reform in Poland (i.e. transferral of the pension fund assets to the Polish Social Security Institution). Neutralizing such effect, the return on EV of Central Eastern Europe area would be 15.1%.

The following table shows the development of APE, NBV and new business profitability.

Breakdown of New Business Value results by geographic area (€ mln)
 APENBVProfitability on APE
 20132012Change20132012Change20132012Change
Italy 1,845 1,637 12.7% 336 281 21.0% 18.2% 17.2% +1.0 pts
France 752 944 -20.3% 96 120 -20.6% 12.7% 12.8% 0.0 pts
Germany 938 917 0.8% 248 186 31.6% 26.5% 20.2% +6.2 pts
Central Eastern Europe 191 187 -23.7% 73 59 -8.9% 38.5% 31.4% +7.1 pts
EMEA 597 622 -3.6% 156 129 21.7% 26.1% 20.8% +5.4 pts
Lat.Am.&Asia 147 201 10.1% 28 88 -1.9% 18.9% 44.1% -25.1 pts
Total 4,470 4,508 -1.0% 937 863 14.2% 21.0% 19.2%
1.8 pts
% changes are on a comparable basis

On a comparable basis, APE remarkably increases in Italy (+12.7%) and in Latin America and Asia (+10.1%). The production in Germany is essentially stable (+0.8%), whereas new production declines in France (-20.3%, mainly on account of the extraordinary 2012 production) and in Central Eastern Europe (-23.7%, mainly due to the negative variation of the pension funds production following local regulatory changes), and in Europe Middle East and Africa (-3.6%). In aggregate, APE reports a slight decrease (-1.0%).

New business margin significantly increases at Group level by 1.8 percentage points to 21.0%, with positive developments in almost all areas. The significant increase in Germany is mainly due to the higher margin of the protection business (which benefits from the lower reference rates) and to the more favourable features of single premium products sold in 2013. Central Eastern Europe profitability progresses mainly thanks to the higher margin of the new pension products sold in Czech Republic. The profitability drop in Latina American and Asia is almost entirely explained by the exit from the perimeter of the US and Mexico which had a profitability higher than the other countries of the area.

Assicurazioni Generali S.p.A. - C.F. e P.IVA 00079760328