ANNUAL INTEGRATED
REPORT AND CONSOLIDATED
FINANCIAL STATEMENTS 2023
SUSTAINABILITY HEROES OF THE YEAR
192
nd
year
ANNUAL INTEGRATED
REPORT AND CONSOLIDATED
FINANCIAL STATEMENTS 2023
I
n compliance with the provisions of Directive 2004/109/EC and Delegated Regulation EU 2019/815 (European Single Electronic reporting Format - ESEF), this Annual
Integrated Report and Consolidated Financial Statements 2023 is drafted also in XHTML format and available in its final version on the Group website.
Please note that the Report is translated into English solely for the convenience of international readers.
Discover all the
Sustainability Heroes
Starring on the covers of the 2023 Reports is SME EnterPRIZE, the initiative that promotes a culture
of sustainability among small and medium-sized enterprises by inspiring them to develop responsible
business models. In 2023, the project involved more than 7,600 companies from 10 European countries
to celebrate, among them, the Sustainability Heroes: entrepreneurs who have implemented outstanding
environmental and social initiatives, for people and the planet.
In 2024 SME EnterPRIZE also expands in Asia, where together with the United Nations Development
Program (UNDP) Generali is working on concrete solutions to increase the resilience of SMEs in the
face of climate change and other risks.
On the cover of the Annual Integrated Report and Consolidated Financial Statements 2023:
Biopekárna Zemanka (Czech Republic)
A pioneer in circular food production that buys raw materials from local organic farmers and uses
recyclable packaging and electricity from renewable sources.
Pervormance International (Germany)
A women-led company offering cooling garments through a sustainable alternative to traditional cooling
systems, benefiting workers, athletes, and individuals with specific health conditions.
ANNUAL INTEGRATED
REPORT AND CONSOLIDATED
FINANCIAL STATEMENTS 2023
Annual Integrated Report and Consolidated Financial Statements 2023
2
Generali Group
CORPORATE BODIES AT 11 MARCH 2024
Chairman
Andrea Sironi
Managing Director and Group CEO
Philippe Donnet
Board members
Marina Brogi
Flavio Cattaneo
Alessia Falsarone
Clara Furse
Umberto Malesci
Stefano Marsaglia
Antonella Mei-Pochtler
Diva Moriani
Lorenzo Pellicioli
Clemente Rebecchini
Luisa Torchia
Board of Statutory Auditors
Carlo Schiavone (Chairman)
Sara Landini
Paolo Ratti
Giuseppe Melis (Alternate Auditor)
Michele Pizzo (Alternate Auditor)
Board secretary
Giuseppe Catalano
Company established in Trieste in 1831
Share capital € 1,592,382,832 fully paid-up
Fiscal code and Venezia Giulia Companies’ Register
no. 00079760328
VAT no. 01333550323
Company entered on the Register of Italian insurance
and reinsurance companies under no.1.00003
Parent Company of the Generali Group, entered
on the Register of insurance groups under no. 026
Pec: assicurazionigenerali@pec.generaligroup.com
ISIN: IT0000062072
Reuters: GASI.MI
Bloomberg: G IM
Contacts available at the end of this document
Comments and opinions on the Report can be sent to
integratedreporting@generali.com
3
INDEX
The integrated overview of our reports ...............................................................4
About the Annual Integrated Report ....................................................................5
Letter from the Chairman and the Group CEO .....................................................6
Management Report
WE, GENERALI ...............................................................................................9
Group’s highlights ..............................................................................................10
2023 key facts ...................................................................................................12
Significant events after 31 December 2023 and 2024
corporate event calendar...................................................................................16
The value creation process ................................................................................18
Challenges and opportunities of the market context .........................................20
Our strategy .......................................................................................................34
Drive sustainable growth ....................................................................37
Enhance earnings profile....................................................................38
Lead innovation .................................................................................39
Responsible investor ..........................................................................44
Responsible insurer ...........................................................................66
Responsible employer ........................................................................74
Responsible citizen ............................................................................83
Our rules for running business with integrity ....................................................86
Our governance and remuneration policy .........................................................92
OUR FINANCIAL PERFORMANCE ........................................................105
Group’s performance .......................................................................................106
Group’s financial position ................................................................................111
Life segment ....................................................................................................116
Property & Casualty segment ..........................................................................124
Asset & Wealth Management segment ............................................................131
Holding and other businesses segment ..........................................................132
Our main markets: positioning and performance ............................................133
Share performance ..........................................................................................146
RISK REPORT .............................................................................................149
OUTLOOK .....................................................................................................171
CONSOLIDATED NON-FINANCIAL STATEMENT
pursuant to legislative decree of 30 December 2016, no. 254 as amended ...........175
INDEPENDENT AUDITOR’S REPORT
ON THE CONSOLIDATED NON-FINANCIAL STATEMENT .............181
APPENDICES TO THE MANAGEMENT REPORT ..............................187
Notes to the Management Report ....................................................................188
Methodological notes on alternative performance measures .........................193
Consolidated Financial
Statements
CONSOLIDATED FINANCIAL STATEMENTS .....................................201
NOTES ...........................................................................................................211
APPENDICES TO THE NOTES ................................................................371
Attestation and Reports
ATTESTATION TO THE CONSOLIDATED FINANCIAL STATEMENTS
pursuant to art. 154-bis, paragraph 5, of legislative decree of 24 February 1998,
no. 58 and art. 81-ter of Consob regulation of 14 May 1999,
no. 11971 as amended ......................................................................................393
BOARD OF STATUTORY AUDITORS’ REPORT .................................397
INDEPENDENT AUDITOR’S REPORT ON THE CONSOLIDATED
FINANCIAL STATEMENTS ......................................................................415
Glossary ...........................................................................................................426
Contacts ..........................................................................................................434
Annual Integrated Report and Consolidated Financial Statements 2023
4
Generali Group
THE INTEGRATED OVERVIEW OF OUR REPORTS
Our story of creating sustainable value continues to be based on the evolutionary adoption of integrated
thinking, allowing us to live according to our values and to implement practices and processes aligned
with our purpose. We tell our story adopting a Core & More
1
approach.
The Group’s Core report is represented by the Annual Integrated
Report, which illustrates, for the benefit of all stakeholders, the
business model and the value creation process in a holistic way,
integrating financial and non-financial information identified as
material.
The More reporting includes other Group’s reports and communication
channels with the aim of providing detailed information intended for a
specialized audience or for actors who intend to deepen some specific
issues.
ANNUAL INTEGRATED REPORT AND CONSOLIDATED FINANCIAL
STATEMENTS
It expands the content of the Group Annual Integrated Report,
providing details of its financial performance in compliance with national
and international regulations.
CORPORATE GOVERNANCE AND SHARE OWNERSHIP REPORT
It outlines the corporate governance system of Assicurazioni Generali
and its ownership structure.
REPORT ON REMUNERATION POLICY AND PAYMENTS
It provides specific information on the remuneration policy adopted by
the Group and its implementation.
MANAGEMENT REPORT AND PARENT COMPANY FINANCIAL
STATEMENTS
It provides information on the performance of Assicurazioni Generali, in
accordance with currently effective regulations.
GROUP ACTIVE OWNERSHIP REPORT
It reports how the Group implements its engagement policy, including
a description of dialogue with investee companies, exercise of voting
rights and cooperation with other investors.
CLIMATE-RELATED FINANCIAL DISCLOSURE
It provides investors and other stakeholders with relevant information to
assess the adequacy of the Group’s approach to climate change, and
its ability to manage the risks and opportunities it brings.
generali.com
for further information on the Group and the Core & More reporting
GROUP ANNUAL INTEGRATED REPORT
It provides a concise and integrated view of the Group’s financial
and non-financial performance, also pursuant to legislative decree (leg. decree) 2016/254
and Regulation EU 2020/852.
CORE
MORE
GREEN BOND REPORT
It outlines the use of proceeds collected from the Generali’s green bond
issuance and the related quantitative impacts in terms of lower GHG
emissions and qualitative impacts in terms of selected assets’ ESG
features.
SUSTAINABILITY BOND REPORT
It outlines the use of proceeds collected from the Generali’s
sustainability bond issuance as well as the related impacts in terms
of lower GHG emissions and the expenses for the social initiatives
undertaken.
GREEN INSURANCE-LINKED SECURITIES REPORT
It describes how the freed-up capital coming from the green ILS is
allocated and the related impacts in terms of lower GHG emissions.
TAX TRANSPARENCY REPORT
It describes the pillars of Generali sustainable tax outcomes and details
the Group Total Tax Contribution, which is the contribution of our
companies to the jurisdictions in which they operate in terms of taxes
borne and collected.
THE HUMAN SAFETY NET’S SOCIAL IMPACT REPORT
It provides an overview of Generali’s The Human Safety Net
Foundation’s contribution to early childhood development and to the
integration of refugees through work and entrepreneurship.
1. The Core & More approach was developed by Accountancy Europe, which unites 50 professional organisations from 35 countries that represent one million qualified accountants, auditors and
advisors. www.accountancyeurope.eu/ for further information.
GROUP ANNUAL
INTEGRATED REPORT 2023
SUSTAINABILITY HEROES OF THE YEAR
192
nd
year
5
ABOUT THE ANNUAL INTEGRATED REPORT
This Annual Integrated Report includes the Group’s financial and non-financial performance and
explains, through our value creation process, the connections between the context in which we operate,
our strategy, the corporate governance structure and our remuneration policy.
Information in the Annual Integrated Report refers to the topics identified as significant through a materiality analysis process, carried
out by engaging both internal and external stakeholders.
NFS
The Report is drafted in compliance with currently effective regulations, among which the provisions of leg. decree 2016/254 on the
environmental, social, employee-related, respect for human rights and anti-corruption and bribery information, that forms the content
of the Consolidated Non-Financial Statement (NFS) and is clearly identified through a specific infographic, as well as the provisions
of Regulation EU 2020/852 (known as EU Taxonomy Regulation) and the relative Delegated Regulations.
The Report is in accordance with the criteria of the International <IR> Framework
2
. It adopts for the disclosure of non-financial
matters envisaged by leg. decree 2016/254: selected indicators from the GRI Standards 2021 and indicators in accordance with a
proprietary methodology.
The Report is in line with the 2023 priorities on non-financial information by ESMA
3
and considers the Task force on Climate-related
Financial Disclosures (TCFD) recommendations and the guidelines on non-financial reporting of the European Commission
4
as for
the environmental matters.
Notes to the Management Report, p. 188 for further information
Responsibility for the Annual Integrated Report
The Board of Directors of Assicurazioni Generali is responsible for the Annual Integrated Report. The Board, through its competent
Committees, and the Board of Statutory Auditors are regularly engaged by the management in specific meetings aiming at sharing
the approach to the preparation and presentation of the Report.
2. The responsibility of the document, developed by the International Integrated Reporting Council (IIRC) in 2021, has been assumed by the IFRS Foundation starting from August 2022.
3. The document European common enforcement priorities for 2023 annual financial reports is available on www.esma.europa.eu.
4. Guidelines on non-financial reporting: supplement on reporting climate-related information (C/2019/4490) were published in June 2019. They are available on eur-lex.europa.eu.
Consolidated Non-Financial Statement, p. 175 for further information on the materiality analysis process and results
1
Central cluster that identifies the material
mega trends on which the strategic initiatives
common to the Group are focused and the
disclosure of which is included in this Report
2
Intermediate cluster that groups the mega trends
of considerable relevance, which are addressed
by specific business units or functions
3
External cluster that groups the mega trends
to be monitored, which are of minor relevance
compared to the other factors analysed
Geopolitical and
financial instability
Polarization
of lifestyles
Transparency and
purpose-driven businesses
Regulatory complexity
Changing
nature of work
Digital revolution
and cybersecurity
Biodiversity
degradation
Resource scarcity
and sharing economy
Change
in healthcare
Urbanization
Migrations
and new households
Unmediated access to
information
Ageing and
new welfare
Pandemics and
extreme events
Climate
change
Increasing
inequalities
Women
and minorities
inclusion
123
Annual Integrated Report and Consolidated Financial Statements 2023
6
Generali Group
Dear readers and Generali shareholders,
the increasingly complex geopolitical scenario represented, once
again, the most critical issue of the past year. With the war between
Ukraine and Russia still far from a diplomatic solution, 2023 saw the
beginning of a new conflict in the Middle East following the Hamas
terrorist attack against Israel on 7 October. Dramatic humanitarian
costs and disruptions to global trade and supply chains are only
some of the consequences of these crises, at a time when the largest
economies have been coping with inflation, slowing growth, and
rising public debt. Furthermore, we cannot forget the ever-present
threat of climate change, with the world’s average ocean surface
temperature at historic highs and the hottest summer ever recorded
in the Northern Hemisphere, which meant a further increase in
extreme weather events such as fires, floods, and droughts.
To successfully navigate through such context, it is more important
than ever to correctly set the strategic direction in the medium to
long term while being ready to intervene promptly and decisively
when needed. It is also key to maintain a solid capital position, as
well as to keep investing in innovation and putting sustainability at the
core of everything. This is what Generali did in 2023, which marked
the second year in the execution of the Lifetime Partner 24: Driving
Growth strategy. Though it was conceived in a macroeconomic
environment quite different from the current one, the plan has
continued to show its effectiveness, allowing the Group to march on
its path of sustainable growth creation for all stakeholders.
The annual financial results prove that Generali is in the best shape it
has ever been. The Group achieved a record operating result with all
segments contributing positively, led by P&C, and a record adjusted
net result while maintaining a solid capital position. Consistently with
this, and in line with our commitment to shareholder remuneration,
we are proposing a dividend of € 1.28 per share, over 10% higher
than last year.
LETTER FROM THE
CHAIRMAN AND
THE GROUP CEO
7
We would like to highlight several milestones. First of all, the acquisitions of Liberty Seguros and Conning Holdings Limited and its
affiliates, which are key to strengthen Generali’s insurance leadership in Europe and to keep building a global asset management
platform.
The Group also received some important external recognitions underlining its financial solidity, with Fitch upgrading the Insurer
Financial Strength rating from A to A+ with a stable outlook, and AM Best confirming the Financial Strength Rating of A (Excellent).
Furthermore, Generali confirmed its place at the top of the European insurance annual ranking by Institutional Investor, a specialist
magazine and independent research company in the field of international finance. In this regard, having retained the first position in
many different categories including Best CEO, Best CFO and Best IR Team is a testament both to the quality of the management
and to the great effort put every day into the engagement with the financial community. Finally, the hiring of Giulio Terzariol as CEO
Insurance marks a significant strengthening from a strategic and managerial standpoint, as well as a proof of the ability to attract
talents of the highest caliber and experience.
Sustainability continued to be the common thread at the heart of Generali’s whole action as a responsible investor, insurer, employer,
and citizen. A strong commitment shared by all of our people and recently recognised with the inclusion in the European and global
Dow Jones sustainability indices for the sixth year in a row, as well as the confirmation of MSCI’s ESG rating of AAA, the highest
possible score.
The success of the third edition of SME EnterPRIZE further proved Generali’s will to engage with the European institutions to promote
a culture of sustainability among small and medium-sized enterprises, within a backdrop in which measures to boost European
competitiveness must go together with the commitment to climate action. Looking beyond Europe, the ongoing partnership with the
United Nations Development Program saw the launch of a Challenge Fund to seek innovative insurance solutions that will enhance
the resilience of small and medium-sized enterprises in Malaysia. Finally, we are pleased to underline once more the precious
contribution to social inclusion made by The Human Safety Net, which is constantly growing in terms of number of both beneficiaries
(365 thousand people reached since launch) and active countries (26, up from 24 at the end of 2022).
Building on these results, on the skills and passion of our almost 82 thousand colleagues and 164 thousand agents and on the
continuous support of our shareholders, we are ready to write together other important pages in Generali’s almost two-hundred-year
history, with the ultimate goal of continuing to create sustainable value for all stakeholders and to be a Lifetime Partner to each of
our customers every day.
Philippe Donnet
Group CEO
Andrea Sironi
Chairman
WE, GENERALI
Group’s highlights ............................................................................... 10
2023 key facts .................................................................................... 12
Significant events after 31 December 2023 and 2024
corporate event calendar.................................................................... 16
The value creation process ................................................................. 18
Challenges and opportunities of the market context .......................... 20
Our strategy ........................................................................................ 34
Drive sustainable growth ....................................................... 37
Enhance earnings profile ....................................................... 38
Lead innovation .................................................................... 39
Responsible investor ............................................................. 44
Responsible insurer .............................................................. 66
Responsible employer ........................................................... 74
Responsible citizen ............................................................... 83
Our rules for running business with integrity ..................................... 86
Our governance and remuneration policy .......................................... 92
Annual Integrated Report and Consolidated Financial Statements 2023
10
Generali Group
1. Data in the Report were presented under the new IFRS 17 and IFRS 9 accounting standards.
Starting from the first quarter 2023 the bancassurance JVs of Cattolica (Vera and BCC companies) are considered a disposal group held for sale under IFRS 5 and therefore their results are reclassified
in the Result of discontinued operations. Consequently, the 2022 yearly results of the Group presented last year have been restated. The Result of discontinued operations amounted to € 84 million
at 31 December 2023 (€ -93 million at 31 December 2022).
All changes were calculated on 2022, unless otherwise reported. Changes in premiums, Life net inflows and new business were on equivalent terms, i.e. at constant exchange rates and consolidation
scope. Changes in total AUM and Solvency Ratio were calculated considering the previous year-end data. The amounts were rounded and may not add up to the rounded total in all cases. The
percentages presented can be affected by the rounding.
The non-financial indicators in the NFS referred to consolidated line-by-line companies, unless otherwise reported in the chapters dedicated to them.
2. Adjusted net result includes adjustments for 1) profit or loss on assets at fair value through profit or loss (FVTPL) on non-participating business and shareholders’ funds; 2) hyperinflation effect under
IAS 29; 3) amortisation of intangibles related to M&A, if material; 4) impact of gains and losses from acquisitions and disposals, if material.
3. The proposed total dividend takes into account all the transactions resolved by the Board of Directors up to 11 March 2024 or carried out on the share capital up to the same date, and excludes
the own shares held by the Company.
GROUP’S HIGHLIGHTS
1
We are one of the largest global players in the insurance industry and asset management. With
almost 82 thousand employees and 164 thousand agents serving 70 million customers, we have a
leading position in Europe and a growing presence in Asia and Latin America.
LIFE
Our financial performance, p. 105 Share performance, p. 146 for further information on the dividend
Glossary available at the end of this document
Total Assets Under Management (AUM)
€ 656 bln
+6.6%
Solvency Ratio
220%
-1 p.p.
Gross written premiums
€ 82,466 mln
+5.6%
Adjusted net result
2
€ 3,575 mln
+14.1%
Proposed dividend per share
€ 1.28
+10.3%
Operating result
€ 6,879 mln
+7.9%
Net result
€ 3,747 mln
+67.7%
Proposed total dividend
3
€ 1,987 mln
+11.1%
Life net inflows
€ -1,313 mln
n.m.
New Business Value (NBV)
€ 2,331 mln
-7.7%
Operating result
€ 3,735 mln
+1.7%
LIFE
Gross written premiums
€ 31,120 mln
+12.0%
Combined ratio (CoR)
94.0%
-1.4 p.p.
Operating result
€ 2,902 mln
+15.8%
PROPERTY & CASUALTY (P&C)
Operating result
€ 1,001 mln
+4.9%
ASSET & WEALTH MANAGEMENT
Operating result
€ -320 mln
-5.7%
HOLDING AND OTHER BUSINESSES
We, Generali
11
Engagement rate
83%
-1 p.p.
Active countries
26
+8.3%
Active partners
77
0.0%
Upskilled employees
68%
+33 p.p.
Entities working hybrid
100%
0.0 p.p.
Women in strategic positions
34.8%
+5.4 p.p.
GHG emissions from
Group operations
90,366 tCO
2
e
-33.4% vs 2019 (baseline)
4. The indicator refers to the carbon footprint of direct general account investment portfolio of the Group’s insurance companies in listed equities and corporate bonds, in terms of carbon intensity
(EVIC).
5. Insurance solutions with ESG components is a definition used for internal identification purposes.
RESPONSIBLE
INSURER
RESPONSIBLE
EMPLOYER
Carbon footprint of investment
portfolio (EVIC)
4
98 tCO
2
e/€ mln
-46.2% vs 2019 (baseline)
Premiums from insurance solutions
with ESG components
5
€ 20,815 mln
+7.4% (CAGR 2021-2023)
Relationship NPS
21.5
+3.3
New green and sustainable investments (2021-2023)
€ 9,126 mln
Fenice 190 (2020-2023)
€ 2,666 mln
RESPONSIBLE
INVESTOR
RESPONSIBLE
CITIZEN
NFS
Our strategy, p. 34
Annual Integrated Report and Consolidated Financial Statements 2023
12
Generali Group
2023 KEY FACTS
JAN.23
Assicurazioni Generali started a share buyback for the purposes of the Group Long Term Incentive Plan (LTI Plan 2022-2024) approved
by the Shareholders’ Meeting of 29 April 2022 as well as of all remuneration and incentive plans approved by the Shareholders’
Meeting and still under execution. The buyback transaction has as its object the purchase of a maximum number of treasury
shares equal to 10 million and 500 thousand and the disposition of the same - jointly with those previously repurchased - within the
framework of the aforementioned plans. The authorisation has a term of 18 months from the date of the Shareholders’ Meeting, while
the authorisation to dispose of treasury shares under the Plans was granted without any time limits. The repurchase started on 20
January 2023 and ended on 10 March 2023. The minimum purchase price of the shares was not lower than the implicit par value
of the share, currently equal to € 1.00, while the maximum purchase price did not exceed 5% of the reference price recorded by the
share during the stock exchange session on the day prior to the completion of each individual purchase transaction.
FEB.23
Generali is searching for the most innovative insurtech start-ups through an international contest at the upcoming Insurtech Insights,
the conference that every year brings together industry executives, entrepreneurs, and investors to debate around technology trends
impacting the insurance sector, as well as connect industry leaders and decision makers with innovative start-ups to create mutual
business opportunities and accelerate growth. Winners of the competition will have the chance to develop a pilot with Generali.
Generali is also among the nominees for the Ambitious Insurer Awards, which recognise the most ambitious and innovative projects
in the sector, with two projects: bAIby: The AI-based Baby Cry Translator, using Artificial Intelligence to translate the cries of infants
between 0-6 months in order to provide indications to parents on the five basic needs of their children, and Innovation Champions,
the programme to build a global network of innovation experts promoting learning opportunities, knowledge sharing, and the scaling-
up of ideas, in order to steer and deliver innovation across the Group.
MAR.23
The Foreign Policy Association presented Generali Group CEO Philippe Donnet with the Corporate Social Responsibility Award,
celebrating his commitment to sustainability, which is at the heart of the Group’s strategy. This award is presented to individuals and
companies who are committed to good corporate citizenship in the communities they serve.
Generali completed the share buyback for the purposes of the Group Long Term Incentive Plan (LTIP) 2022-2024 as well as the
Group’s incentive and remuneration plans under execution. The weighted average purchase price of the shares, equal to 10 million
and 500 thousand, was € 18.16. At 10 March 2023, Generali and its subsidiaries then held 50,161,243 treasury shares, representing
3.16% of the share capital.
The Board of Directors of Assicurazioni Generali approved the following Reports: the Annual Integrated Report and Consolidated
Financial Statements, the Parent Company Financial Statements Proposal and the Corporate Governance and Share Ownership
Report at 31 December 2022 and the Report on Remuneration Policy and Payments. The Board also established:
• a capital increase of € 5,549,136 to implement the Group Long Term Incentive Plan (LTIP) 2020-2022, having ascertained the
occurrence of the conditions on which it was based. The execution of the resolution of the Board was subject to the authorisation
of the related amendments to the Articles of Association by IVASS, which was received on 5 April;
• to submit to the approval of the Shareholders’ Meeting the proposals related to the Group Long Term Incentive Plan (LTIP) 2023-
2025 and the Share Plan for Generali Group employees, supported by buyback programmes for the purposes of the plans;
• the cancellation, without reducing the share capital, of 33,101,371 own shares, acquired for that end, implementing the resolutions
by the 2022 Shareholders’ Meeting. The execution of the resolution of the Board was subject to the authorisation of the related
amendments to the Articles of Association by IVASS, which was received on 5 April.
APR.23
In relation to the appointment of the Board of Statutory Auditors of Assicurazioni Generali for the financial years 2023-2025, two lists
of candidates were filed by the following shareholders within the terms established by the applicable laws and regulations: several
UCIs under the aegis of Assogestioni, with an overall stake of 0.810% of the share capital, and VM 2006 S.r.l., with a shareholding
equal to 2.017% of the share capital.
www.generali.com/media/press-releases/all
NFSNFS
We, Generali
13
In line with the approach of proactively managing its debt and with the aim to optimize its regulatory capital structure, Assicurazioni
Generali announced a cash buyback offer for its € 1,500,000,000 4.596% Fixed-Floating Rate Perpetual Notes (XS1140860534)
in a principal amount outstanding of € 1.5 billion, which expired on 19 April. At the expiration of the offer, the aggregate principal
amount of the notes validly tendered amounted to € 525,063,000, approximately equal to 35% of the aggregate principal amount of
the outstanding notes. Subject to the terms and conditions of the offer, Generali accepted for purchase from holders an aggregate
principal amount of € 499,563,000 of notes.
At the same time, Assicurazioni Generali announced and successfully concluded the placement of a new Euro denominated fixed
rate Tier 2 bond, due 20 April 2033, in green format in accordance with its Sustainability Bond Framework. It is the fourth green
bond issued, for an amount equal to € 500 million. This transaction is in line with Generali’s sustainability commitment. During the
book building process, an order book of € 3.9 billion was attracted, more than 7 times the offered amount, from around 300 highly
diversified international institutional investors including a significant representation of funds with Green/SRI mandates.
Our rules for running business with integrity, p. 89
Assicurazioni Generali increased the share capital in connection with the Group Long Term Incentive Plan (LTIP) 2020-2022, resolved
by the 2020 Shareholders’ General Meeting. It also cancelled its own shares (without reducing the share capital) acquired for the
purposes of the share buyback scheme approved by the 2022 Shareholders’ Meeting; the cancellation resulted in a change in the
nominal value of each share.
At 17 April 2023, the share capital amounted to € 1,592,382,832 fully subscribed and paid up, subdivided into 1,559,281,461
ordinary shares with no explicit par value.
The Shareholders’ Meeting approved: the Parent Company Financial Statements at 31 December 2022, setting forth the distribution
of a dividend of € 1.16 per share to shareholders; the Report on the Remuneration Policy; the Group Long Term Incentive Plan (LTIP)
2023-2025, authorising the purchase and disposal of its own shares to service the remuneration and incentive plans for a maximum
number of 11 million and 300 thousand treasury shares; and the Share Plan for Generali Group employees, authorising the purchase
and disposal of a maximum of 9 million treasury shares.
The Shareholders’ Meeting also approved the appointment of Stefano Marsaglia as a member of the Board of Directors to hold office
for the financial years ending on 31 December 2023 and 2024, following the resignation of Francesco Gaetano Caltagirone, and the
appointment of the Board of Statutory Auditors for the three-year period 2023-2025. It also established the annual remuneration for
the Chair of the Board of Statutory Auditors at € 180,000 gross annual and for the permanent Auditors at € 130,000 gross annual,
and an attendance fee of € 500 gross, for attending each meeting of the Board of Directors and the Board Committees, in addition
to the reimbursement of expenses, as cited within scope of performing their duties, and D&O insurance coverage, in alignment with
the Company’s policies.
Finally, the Shareholders’ Meeting approved the modification of fees for the statutory audit assignment in favour of the auditing firm
KPMG S.p.A. specifically for the statutory audit of Generali’s accounts for each of the financial years ending on, and between, 31
December 2022 and 31 December 2029.
MAY. 23
The Board of Directors of Assicurazioni Generali, prior to the unanimous opinion of the Nominations and Corporate Governance
Committee, and the Board of Statutory Auditors have assessed, for the members of the corporate bodies elected by the 2023
Shareholders’ Meeting, i.e. for the Director Stefano Marsaglia and the permanent and alternate members of the Board of Statutory
Auditors, the fulfilment of the requirements and compliance with the criteria set forth in law and regulations in force, by the Articles
of Association and by the Corporate Governance Code, as implemented by Generali’s internal regulations. In this context, the
Board, prior to the unanimous opinion of the Nominations and Corporate Governance Committee, assessed the existence of the
independence requirement set by the Corporate Governance Code also for the Chair of the Board of Statutory Auditors.
The 2022 dividend payout of Assicurazioni Generali, equal to € 1.16 per share, was distributed.
The Board of Directors of Assicurazioni Generali approved the Financial Information at 31 March 2023.
JUN.23
Following the Eurovita crisis, the Board of Directors of Assicurazioni Generali and that of Generali Italia approved the participation
of Generali Italia, with four other insurance companies - namely Allianz, Intesa Sanpaolo Vita, Poste Vita and Unipol SAI - in the
agreements aimed at implementing a collective solution with the primary objective of protecting Eurovita’s policyholders and providing
a clear signal of confidence to the market and to Eurovita’s customers. The entire operation obtained all regulatory authorisations
from the relevant supervisory authorities over the course of 2023.
NFS
Annual Integrated Report and Consolidated Financial Statements 2023
14
Generali Group
JUL.23
Generali announced the acquisition of Conning Holdings Limited (CHL
6
), a leading global asset manager for insurance and institutional
clients, from Cathay Life, a subsidiary of Cathay Financial Holdings, one of the largest Asia-based financial institutions. As a result
of the contribution of CHL into Generali Investments Holding S.p.A (GIH), Cathay Life will become a minority shareholder of GIH
owning 16.75% of its share capital (subject to customary closing adjustments), and will enter into a wider partnership with Generali,
supporting the strategic growth ambitions of Generali Asset Management globally. There is no upfront cash consideration payable
by Generali or GIH to Cathay Life. The impact on the Group’s Solvency Ratio is expected to be negligible. Subject to customary
regulatory, anti-trust and other relevant approvals, the transaction is expected to be completed in the first half of 2024.
For the acquisition, in December 2023 Generali received the Transatlantic Award by the America Chamber of Commerce in Italy.
AUG.23
The Board of Directors of Assicurazioni Generali approved the Half-Yearly Consolidated Financial Report at 30 June 2023.
SEP.23
Generali placed a new Euro denominated Tier 2 bond due in September 2033, issued in green format in accordance with its
Sustainability Bond Framework. It is the fifth green bond issued, for an amount equal to € 500 million. The transaction is in line
with Generali’s sustainability commitment: indeed, an amount corresponding to the net proceeds of the notes will be used to
finance/refinance Eligible Green Projects. During the book building process, an order book in excess of € 1.1 billion was attracted,
more than 2 times the offered amount, from around 180 highly diversified international institutional investors, including a significant
representation of funds with Sustainable/SRI mandates.
Our rules for running business with integrity, p. 89
Generali Group CEO, Philippe Donnet, was named Best CEO in the insurance sector for the second consecutive year, in the 2023
edition of the All-Europe Executive Team annual ranking by Institutional Investor, the specialist magazine and independent research
company in the field of international finance. The Group CFO, Cristiano Borean, was confirmed as Best CFO in the insurance sector.
The Investor & Rating Agency Relations team ranked first in the Best IR Team, Best IR Professionals, Best IR Program and Best
IR Event categories. Generali was also awarded first position in the Best ESG and second position in the Best Company Board
categories.
Fitch upgraded Generali’s Insurer Financial Strength (IFS) rating from A to A+ with a stable outlook. The agency also upgraded
Generali’s Long-Term Issuer Default Rating (IDR) from A- to A. The upgrades reflect Generali’s very strong capitalization and moderate
financial leverage. The ratings reflect the continuous improvement of the Group’s credit profile and its strong operating performance.
Within the partnership established between Generali and the United Nations Development Programme (UNDP) to reduce the
protection gap for vulnerable communities worldwide, through access to insurance and risk finance solutions, the Insurance
Innovation Challenge Fund was launched, searching for innovative insurance solutions to boost economic resilience in small and
medium-sized enterprises (SMEs) in Malaysia.
The two organisations are developing a loss prevention framework for SMEs to leverage the power of data, awareness and
understanding of risks for businesses in vulnerable communities. It will be hosted via an online platform, offering advice for businesses
on how to protect their activity in the face of climate challenges.
Generali will also expand, together with UNDP, its flagship SME EnterPRIZE project to Asia.
Our strategy, Responsible insurer, p. 73
NFS NFS
6. Conning, Inc., Octagon Credit Investors, LLC, Global Evolution Holding ApS and its group of companies, and Pearlmark Real Estate, L.L.C., Goodwin Capital Advisers, Inc., Conning Investment
Products, Inc., a FINRA-registered broker-dealer, Conning Asset Management Limited, and Conning Asia Pacific Limited are all direct or indirect subsidiaries of Conning Holdings Limited which
is one of the family of companies owned by Cathay Financial Holding Co. Ltd., a Taiwan-based company.
We, Generali
15
OCT.23
Generali announced Giulio Terzariol’s entry into the Company as CEO Insurance with effect from January 2024. The new role, which
will report directly to the Group CEO, Philippe Donnet, and will join the Group Management Committee, will be responsible to oversee
the activities of the CEOs of Generali’s insurance business units. The creation of the new Division further enhances coordination,
effectiveness, and strategic alignment across geographies, streamlining and simplifying the Group’s organizational model, and
contributing to the achievement of the objectives of the Lifetime Partner 24: Driving Growth strategic plan.
Generali Ventures, the venture capital initiative to accelerate innovation, enter new markets and generate additional operating
efficiencies for the Group, was launched. It is part of the Lifetime Partner 24: Driving Growth strategic plan and, with a dedicated
commitment of € 250 million, it aims to identify the most promising investment opportunities, with a particular focus on the insurtech
and fintech sectors. Generali Ventures invested in three strategic initiatives: Mundi Ventures, specialized in insurtech technologies;
Speedinvest, focused on start-ups in the early pre-seed and seed stages; and Dawn, focused on investing in B2B software solutions.
NOV.23
Genertel exercised early redemption option on the fixed/floating rate subordinated notes (call date from December 2023) due
December 2043 and belonging to ISIN XS1003587356 for an outstanding principal amount of € 100 million. The early redemption
of the notes was approved by Istituto per la Vigilanza sulle Assicurazioni (IVASS) on 18 October 2023.
Generali announced the exit of Group Chief Transformation Officer Bruno Scaroni from the Group effective from 31 December 2023.
The Board of Directors of Assicurazioni Generali approved the Financial Information at 30 September 2023.
The third edition of SME EnterPRIZE was brought to a close, after kicking off in May 2023. It is Generali’s flagship initiative to boost
a culture of sustainability in Europe’s SMEs. During the closing event, Generali celebrated the ten Sustainability Heroes, selected
from over 7 thousand SMEs across Europe, and unveiled the new edition of the White Paper, developed in collaboration with SDA
Bocconi.
Our strategy, Responsible insurer, p. 73
DEC.23
The Board of Directors of Assicurazioni Generali approved the appointment of Stefano Marsaglia, a non-executive and independent
director, to the Investment Committee with immediate effect, in line with the recommendation of the Nominations and Corporate
Governance Committee. This follows the decision of Flavio Cattaneo, a non-executive and independent director, to step down from
this committee for new professional commitments.
Our governance and remuneration policy, p. 98
AM Best confirmed Generali’s Financial Strength Rating (FSR) of A and the Long-Term Issuer Credit Rating (Long-Term ICR) of A+.
The outlook is stable. The ratings reflect Generali’s strong operating performance, driven by solid technical performance..
MSCI confirmed the AAA ESG rating of Assicurazioni Generali. The assessment highlighted Generali’s integration of advanced climate
risk management practices by assessing the impact of different climate scenarios on underwriting activities and the investment
portfolio. MSCI also referenced the Group’s leadership in human capital management, its promotion of responsible investments, and
cybersecurity systems.
Generali was also confirmed in the Dow Jones Sustainability World Index (DJSI World) and in the Dow Jones Sustainability Europe
Index (DJSI Europe). Generali’s positioning in the 2023 indices particularly highlights the distinctive approach in terms of transparency
and reporting, tax strategy, risk management, attention to cybersecurity, and climate change strategy.
Following the approval of the German Federal Financial Supervisory Authority (BaFin) and the responsible local antitrust authorities,
Generali completed the disposal of Generali Deutschland Pensionskasse AG (GDPK) to Frankfurter Leben, with which an agreement
was reached in May 2023. The transaction is aligned with the Group’s Lifetime Partner 24: Driving Growth strategy, which aims to
improve the profile and profitability of the Life business.
Notes, Information on consolidation area and related operations for further information
NFSNFS
Annual Integrated Report and Consolidated Financial Statements 2023
16
Generali Group
SIGNIFICANT EVENTS AFTER 31 DECEMBER 2023
AND 2024 CORPORATE EVENT CALENDAR
JAN.24
Generali placed two new Euro denominated senior bonds, due in January 2029 and in January 2034 respectively, both issued in
green format in accordance with its Green, Social & Sustainability Bond Framework. They are the sixth and seventh green bonds
issued, for a total amount equal to € 1,250 million. The transaction is in line with Generali’s sustainability commitment: indeed,
an amount corresponding to the net proceeds of the notes will be used to finance/refinance Eligible Green Projects. During the
book building process, the notes attracted an order book in excess of € 2 billion from more than 80 highly diversified international
institutional investors, including a significant representation of funds with Sustainable/SRI mandates.
Our rules for running business with integrity, p. 89
Generali signed an agreement for the acquisition of 51% of Generali China Insurance Company Limited (GCI) for a consideration
of approximately € 99 million
7
. The completion of the transaction is subject to regulatory approvals. The estimated impact on the
Group’s Solvency Ratio is approximately -1 p.p.. The acquisition represents a long-term strategic investment to develop a fully owned
and controlled general insurance business in China, positioning Generali well to capture an increasing share of the growing Chinese
market. Upon completion, Generali will become the 100% shareholder of GCI and the first foreign player to acquire a controlling
stake of a P&C insurance company from a single state-owned entity in China purely via a Mandatory Public Auction process.
Generali updated the financial community on the progress of the Lifetime Partner 24: Driving Growth strategic plan, confirming that it
is on track to meet all the key financial targets, as well as on the recent acquisitions of Liberty Seguros and Conning Holdings Limited,
its Protection business, and Group cash and capital. During the Investor Day it also announced a € 500 million share buyback plan,
which is to be submitted to the Annual General Meeting in April 2024 and launched during the same year, subject to all relevant
approvals.
Following the receipt of all regulatory approvals, Generali completed the acquisition of Liberty Seguros, announced in June 2023.
The deal is fully aligned with the Lifetime Partner 24: Driving Growth strategy and aims to improve the Group’s earnings profile,
boost the P&C business, and strengthen its leadership position in Europe, reaching the fourth position in the Spanish P&C market,
consolidating its second position in Portugal, and gaining a top ten market share positioning in Ireland.
MAR.24
Generali completed the disposal of TUA Assicurazioni S.p.A. to Allianz, with which it had reached an agreement in October 2023.
The transaction is aligned with the implementation of the Group’s Lifetime Partner 24: Driving Growth strategy in Italy to pursue
profitable growth, reduce complexity with the aim of making its operating machine more efficient and to increase P&C diversification.
The transaction generates a positive impact of around € 50 million on the net result, and a neutral effect on the normalized net result,
adding approximately 1 p.p. to the Group Solvency II position.
Within the partnership established between Generali and the United Nations Development Programme (UNDP), an event to present
concrete solutions on how to boost small and medium-sized enterprises (SMEs) resilience against climate change and other risks
took place in Asia. The following were presented: Building MSME Resilience in Southeast Asia, a joint research report focusing on
selected value chains in Thailand and Malaysia, which proposes an alternative approach to identifying the risks and needs of micro,
small and medium-sized enterprises (MSMEs), developing risk management and insurance services, and delivering these solutions
to the MSME community; SME Loss Prevention Framework, a digital tool leveraging the power of data to raise the readiness and
awareness of SMEs to the risks facing vulnerable communities, starting in Malaysia with the flood risk.
11 March 2024. Board of Directors: approval of the Annual Integrated Report and Consolidated Financial Statements, the Parent
Company Financial Statements Proposal and the Corporate Governance and Share Ownership Report at 31 December 2023 and
the Report on Remuneration Policy and Payments
12 March 2024. Release of the results at 31 December 2023
7. Consideration in local currency is approximately RMB 774 million.
NFSNFS
We, Generali
17
APR.24
24 April 2024. Shareholders’ Meeting: approval of the Parent Company Financial Statements at 31 December 2023
MAY. 24
20 May 2024. Board of Directors: approval of the Financial Information at 31 March 2024
21 May 2024. Release of the results at 31 March 2024
22 May 2024. Dividend payout on the share of Assicurazioni Generali
AUG.24
8 August 2024. Board of Directors: approval of the Consolidated Half-Yearly Financial Report at 30 June 2024
9 August 2024. Release of the results at 30 June 2024
NOV.24
14 November 2024. Board of Directors: approval of the Financial Information at 30 September 2024
15 November 2024. Release of the results at 30 September 2024
Annual Integrated Report and Consolidated Financial Statements 2023
18
Generali Group
FINANCIAL CAPITAL p. 105
HUMAN CAPITAL p. 74
SOCIAL AND RELATIONSHIP CAPITAL p. 39, 86
INTELLECTUAL CAPITAL p. 39, 92
MANUFACTURED CAPITAL p. 44, 89
NATURAL CAPITAL p. 81
THE VALUE CREATION PROCESS
In a global context characterized by countless challenges, we are committed to leveraging our
capitals - classified according to International <IR> Framework’s principles - by leveraging our solid
and resilient business model. We create value over the time for all our stakeholders, in order to
guarantee a safer and sustainable future.
FINANCIAL CAPITAL
HUMAN CAPITAL
SOCIAL AND RELATIONSHIP CAPITAL
INTELLECTUAL CAPITAL
MANUFACTURED CAPITAL
NATURAL CAPITAL
A
G
E
N
T
S
A
N
D
D
I
S
T
R
I
B
U
T
O
R
S
E
M
P
L
O
Y
E
E
S
F
I
N
A
N
C
I
A
L
C
O
M
M
U
N
I
T
Y
C
O
N
T
R
A
C
T
U
A
L
P
A
R
T
N
E
R
S
C
O
M
M
U
N
I
T
Y
C
L
I
E
N
T
S
L
I
F
E
T
I
M
E
P
A
R
T
N
E
R
2
4
:
D
R
I
V
I
N
G
G
R
O
W
T
H
E
N
A
B
L
E
P
E
O
P
L
E
T
O
S
H
A
P
E
A
S
A
F
E
R
F
U
T
U
R
E
B
Y
C
A
R
I
N
G
F
O
R
T
H
E
I
R
L
I
V
E
S
A
N
D
D
R
E
A
M
S
O
U
R
G
O
V
E
R
N
A
N
C
E
O
U
R
B
U
S
I
N
E
S
S
M
O
D
E
L
NFS
Glossary available at the end of this document
E
N
V
I
R
O
N
M
E
N
T
We, Generali
19
Our purpose is the reason why we exist and it inspires us. We have always driven our efforts with the intention to improve people’s lives. In an increasingly complex world,
our ability to care and help people by offering innovative, personalized solutions will enable them to take decisions and shape a safer future for themselves, their loved ones,
their business. We have defined our values and behaviours. Values describe what is important for us and we stick to them. Behaviours describe how we want to manage
our business every day; they are what makes us different. They are our commitment, as a community and as individuals.They are the way we want to measure how we
achieve results.
www.generali.com/who-we-are/our-culture
The industry in which we operate is at the crossroads of some of the great contemporary issues: geopolitical and financial instability;
digital revolution and cyber security; climate change; ageing and new welfare. These challenges can be opportunities to offer our
customers new and increasingly customised protection models.
Challenges and opportunities of the market context, p. 20
OUR BUSINESS MODEL
We develop simple, integrated, customized and competitive Life and P&C insurance solutions for our customers: the offer ranges from savings, individual and family
protection policies, unit-linked policies, as well as motor third-party liability (MTPL), home, accident and health policies, to sophisticated coverage for commercial
and industrial risks and tailored plans for multinational companies. We expand our offer to asset management solutions addressed to institutional (such as pension
funds and foundations) and retail third-party customers. We rely on innovation as a key driver for future growth to allow for tailored solutions and quicker product
development. We also offer solutions with ESG components. Rigorous criteria for the risk selection are applied in the underwriting process.
We distribute our products and we offer our services based on a multi-channel strategy, while also relying on new technologies: not only through a global network of agents
and financial advisors, but also through brokers, bancassurance and direct channels that allow customers to obtain information on alternative products, compare options for
the desired product, acquire the preferred product and rely on excellent after-sales service and experience. Physical distribution networks are a key and valuable asset for
our business model. Their role is to regularly dialogue with and assist customers at their best, striving for customer experience excellence and promoting the Generali brand.
We receive premiums from our customers to enter into insurance contracts. They are responsibly invested in high quality assets, with a particular attention to the impact that
such assets may have on the environment and society.
We pay claims and benefits to our policyholders or their beneficiaries after death, accidents or the occurrence of the insured event. The payment is guaranteed also through
appropriate asset-liability management policies.
OUR PURPOSE
Our strategy sets out a clear vision for the Group in 2024 and is built on three pillars: drive sustainable growth, enhance earnings profile, and lead innovation. We will go further in
our sustainability commitments, with a continued focus on making a positive social, environmental and stakeholder impact. We will continue to invest in our people to ensure they
are engaged with the successful delivery of the new plan while fostering a sustainable work environment.
Our strategy, p. 34
OUR STRATEGY
We believe that our governance is adequate for effectively pursuing our strategy and the sustainable success of the Company.
Our governance and remuneration policy, p. 92
OUR GOVERNANCE
STAKEHOLDER
We engage several categories of stakeholders, both internal and external to the Group, in order to understand and meet their needs.
Notes to the Management Report, p. 188 for further information
on stakeholders than indicated in the related chapters
EXTERNAL CONTEXT
NFS
Annual Integrated Report and Consolidated Financial Statements 2023
20
Generali Group
CHALLENGES AND OPPORTUNITIES OF THE
MARKET CONTEXT
We live in a constantly and rapidly changing world. We face unprecedented challenges. We take them
into account with a view to sustaining our ability to create value over time.
We assess the risks to the Group and our stakeholders in a systematic way, while guaranteeing that
they are adequately monitored. We manage our activities and seize the opportunities from the context..
www.generali.com/what-we-do/emerging-risks for further information on
the main risks and for the Emerging and Sustainability Risks Booklet
Risk Report, p. 149 for more detailed information on the risk management
model and on the capital requirements
Geopolitical and financial instability
The economic situation in 2023 was mainly characterized by a global weakness in industrial production coupled with falling
inflation and an increasingly restrictive monetary policy. Geopolitical tensions soared, particularly as a result of the ongoing
war in Ukraine and escalating conflicts in the Middle East. The European Central Bank has significantly tightened its monetary
policy, thus contributing to a decline in demand. The euro area slipped into a technical recession in the second half of 2023,
and inflation declined significantly. Also in the US monetary policy was aggressive. Nonetheless, the US economy showed a
surprising resilience to the sharp increase in borrowing costs. Inflation has fallen sharply, which has allowed the Fed to stop
raising the reference rate and to signal cuts for 2024.
In 2023, activity in financial markets was initially dominated by high inflation and restrictive monetary policy; in the second half
of 2023, the expectation that both the Fed and the ECB were not planning any further interest rate hikes prevailed. Towards
the end of the year, despite uncertainties due to rising geopolitical risks, optimism in the markets increased, driven by the
expectation of declining key interest rates in 2024 and the increased likelihood of a soft landing for the economy, especially in
the United States. Against this backdrop, the yield on 10-year German government bonds fell over the course of 2023, after
initially rising to close to 3%. This has come on the back of lower inflation rates and rising expectations of future rate cuts by
central banks, notwithstanding a still difficult economic context in the euro area. At the end of 2023, the 10-year Bund yield
stood at 2.03%, down from 2.56% a year earlier. Equity markets were on an upward trend, with the US index gaining 24.4%,
while the European one increased by 16%.
Our management
The Group’s asset allocation strategy keeps being mostly guided by consistency between liability management and targets
on return and solvency. The higher interest rates allowed to lock-in attractive yields both for government bonds with high
rating, which are the main instruments used to pursue the matching of long term liabilities, and for the investments in
corporate bonds, vast majority of which having investment grade rating. In order to sustain current return and increase
diversification, the Group keeps investing in private assets, among which private debt still offering an illiquidity premium and
less exposure to raising rates due to its prevalent exposure to variable rates. Real assets (real estate and/or infrastructure
investments, both direct and indirect) continue to be important in current investment activities; the multi-boutique Asset
Management platform developed by the Group aims to enhance investment capacity in these market sectors.
ESG dimensions play a more and more relevant role in the process of investment allocation, specifically focusing on climatic
change, backing companies that have a lower impact in terms of fossil emissions and that are focused on sustainable
development, both environmental and social.
Our strategy, Responsible investor, p. 44
NFSNFS
We, Generali
21
RISKS
We are exposed to market risks stemming from the fluctuations of the value of the investments and to credit risks linked to the
inability of the counterparties to fulfill their obligations as well as the possible increase of the credit spread. We are handling
these risks by following principles of sound and prudent management, in line with the Prudent Person Principle and with the
Group Investment Governance Policy and risk guidelines. We measure financial and credit risks using the Group’s Partial
Internal Model, which offers us a better representation of our risk profile. We also assess the impacts of the macro-economic
and financial scenarios deriving from the geopolitical context on the Group’s solvency and liquidity position, considering
different levels of severities.
We are also exposed to operational risks arising from the current turbulent and uncertain external context. Geopolitical tensions
combined with market instability contribute to maintaining a high exposure to risks related to cyberattacks, operational
resilience, and financial crimes.
Cybersecurity remains among the most significant concerns in the financial sector and for the Group, due to the increased
sophistication of cyberattacks and the growing number of hackers, independent or supported by the States. Potential losses
from a cyberattack have been estimated through a specific scenario analysis conducted within the operational risk assessment
process of the Group.
In the current environment, where dependence on digital technologies is increasing and the degree of interconnections among
infrastructures is more complex, the rise in cyberattacks and technological threats contributes to the exposure to risks that
can compromise the operational resilience of the Group, such as the security and protection of data and the availability of
applications and critical infrastructures, internal or managed by third parties.
Furthermore, geopolitical tensions and market uncertainty have weakened the supply chains and caused a significant increase
in the price of raw materials, especially in the first part of 2023, threatening the availability of essential services and utilities, and
exposing the Group to the risk of socio-political events induced by the phenomenon of social erosion.
Finally, the current geopolitical situation maintains a high level of attention by regulatory authorities towards the prevention of
money laundering, terrorism financing, and international sanctions. In a sector characterized by a rapidly evolving regulatory
framework, the prevention of these risks requires a timely adaptation to the applicable regulatory provisions.
Digital revolution and cyber security
The rapid evolution and interaction of different technologies is bringing an equally intense growth in the sensitivity to ethical
aspects and implications of the adoption of such technologies: on the one hand, Internet of Things (IoT), cloud services,
cognitive computing, Advanced Analytics (AA), Smart Automation (SA), Artificial Intelligence (AI), Generative AI (GenAI),
Customer Relationship Management (CRM), digital tools, 5G and hyperconnected infrastructures may thoroughly renew
products and operations, optimising efficiency and delivering personalisation for customers, agents and employees; on the
other, side trustworthiness and fairness of these technologies and applications should always be driving the development and
implementation roadmap.
We are surrounded by data, public, paid and context data, which, thanks to the increasing digitalisation of customer’s
interactions, the computational power available and the growing capabilities to generate meaningful and trustworthy insights,
allow all businesses - including insurance - to transform their way of creating value and interacting into the so-called world of
digital ecosystems, where the boundaries between different industries and players blur to provide customers with a relevant
mix of innovative services and traditional products.
Technological evolution also involves exponential growth in cyber threats, such as attacks aimed at stealing information or
blocking operational processes. Adequate management of this risk is therefore fundamental in order to limit potential effects
of economic and operational nature but also to preserve, in particular, the confidence of customers in the processing of their
data, which are frequently sensitive. The issue is also increasingly relevant for regulators which have in recent years introduced
specific safety measures as well as reporting processes in the case of security incidents (for example, the most recent Digital
Operational Resilience Act - DORA).
Our management
Our digital ambition translates into our lust to provide our customers, agents and employees with a superior experience,
transforming Generali into an agile, innovative, digital organization that leverages strategic and trustworthy usage of data. We
want digital to accelerate the change in paradigm we have identified: for example, moving from a traditional world of insurance
coverage, policy renewal upon expiry and reimbursement of any claim, to an innovative world where we offer tailor-made
solutions, which integrate the insurance component, which remains central, to services with a high technological content of
prevention and customer support.
NFS
Annual Integrated Report and Consolidated Financial Statements 2023
22
Generali Group
We pursue responsible usage of data and algorithms to gain full digital trust from all our stakeholders, leading to a sustainable
competitive advantage and a stronger Lifetime Partner relationship.
Our ambition is to become a truly innovation-led, digitally-enabled, data-driven and agile organization to our people, our agents
and our customers. Our goals are to become Lifetime Partner to our customers; to support the digital transformation of the
distribution network; to transform our operating model with a view of greater digitalization by fully leveraging AI across its
multiple applications such as predictive algorithms, Generative AI and Smart Automation.
To feed and accelerate our path to become true Lifetime Partners and digitize the operating model, we defined the new
transformation strategy which relies on four transformation levers:
• Innovation;
• Digital and Ecosystems;
• IT Convergence;
• Data, Artificial Intelligence and Automation.
www.generali.com/investors/Strategy/transformation-strategy for further details
The digital path is enriched by a particular attention to convergence, a fundamental strategy for a Group with a global presence
like ours. Convergence towards Group standards, common taxonomy, centers of excellence and selected central solutions
that we adopt in specific areas identified as priorities of the digital world. The goal we have set ourselves is to accelerate the
so-called time to value, i.e. speed and flexibility in implementation, while respecting our Group organizational model.
With a view to continuous improvement and exploring new applications, we are continuing to find new opportunities into the
insurance business, leveraging innovative technologies and platforms that allow to enable digital ecosystems, both within the
Group and with selected partners.
We are committed to guaranteeing that the Group is constantly equipped with appropriate cybersecurity systems, thus
becoming increasingly more reliable for our stakeholders.
To be able to effectively manage the increasing complexity of security-related risks, as One-Security, thanks to the strong
integration between Information & Cyber and Physical & Corporate Security, an effective strengthening of processes and tools
for the identification, assessment and management of security risks and an increasing resilience against adverse events, we
pledge to:
• protect the Group’s ecosystem and strengthen its security standards;
• define internal security regulations and monitor their implementation;
• define a solid management process for IT security-related risks;
• ensure the implementation of security measures for the management of threats;
• raise awareness and understanding around the issue among all Group employees.
By leveraging the experience and results of the Cyber Security Transformation Programs (CSTPs), we launched the Security
Strategic Program (SSP) in early 2022 to further strengthen the transformation of the Group’s security, supporting the path
towards innovation and digitalisation and increasing the resilience of the Group’s cybersecurity while remaining abreast of
technological trends, the threat landscape and regulatory requirements, which are constantly evolving. The ambition, over the
2022-2024 time horizon, is to continue to boost the security posture of the Group and increase cyber resilience, to implement
global and standard security services across all Group entities as well as innovative secure-by-design digital solutions, to
guarantee secure cloud transactions and consumption, to ensure faster reaction and recovery in the event of cyber attacks,
to aim at the reduction of overall security risks, and to build a global Security Community.
We adopt tools and implement actions through which we guarantee constant protection from threats, such as:
01 the Security Operation Center (SOC) to monitor all events recorded by our security solutions 24 hours a day, detect potential incidents and
step in with containment and restoration actions. SOC’s performance are monitored in a structured manner through specific indicators,
which are not reported due to security reasons. We have defined a Business Continuity and Disaster Recovery plan together with an
Incident Response procedure to adequately guarantee the preservation or the timely recovery of data, services and critical business
activities in case of a significant incident or crisis;
02 our cyber intelligence service that monitors the cyber threats landscape evolution and trends, thus enabling us to proactively prevent or be
ready to react to potential threats;
NFS
We, Generali
23
03 internal and external vulnerability assessments in order to identify potential IT vulnerabilities in our systems. We also test the response
capacities of our SOC through cyberattack simulations as well as customer solutions, including those based on IoT technology;
04 processes focusing on the whole supply chain management that enable us to identify, assess - also with the use of cyber risk rating
systems - and manage the third-party security risk, with a strong commitment to secure the transition to and the use of cloud services;
05 processes and services to guarantee the physical security of employees (also during business travels and events), company buildings and
internal workspaces, and to ensure all the aspects related to the corporate security, including crisis management and business intelligence
activities;
06 an intervention assessment and prioritisation framework in accordance with the operational risk management model. It is supported by an
IT tool available to the countries where we operate to execute periodic risk assessments and to continuously take a census of and manage
cyber risks;
07 a structured regulatory framework, that is constantly updated with respect to regulatory developments, market standards and cyber
threats;
08 an IT security awareness program for all our employees which consists of various initiatives such as dedicated training courses, videos and
ad hoc communications. Internal campaigns simulating phishing also involve the Group and virtual challenges like cyber quiz designed to
increase the engagement of employees and promote good conduct practices in the area of IT security;
09 a Group insurance policy to reduce residual exposure to cyber risk. Its effectiveness is considered in the Group’s Internal Model for
calculating the capital for operational risks;
10 relevant certification released to Generali Operations Service Platform (GOSP), a company that provides IT services and infrastructures to
the main Group countries.
GOSP is certified according to standard ISO/IEC 27001:2013 - Information
Security Management System. This certificate is valid for: information
security management for the delivery of IT infrastructural services for the
Group companies; delivery of hardware, IT services, IT engineering, project
management, organization, security services; as well as management of
information security incidents according to the ISO/IEC 27035-1:2016 and
ISO/IEC 27035-2:2016 guidelines.
GOSP is certified by an external auditor according to standard ISAE 3402
Type 2 - Third Party Assurance Report. This standard, widely used and
internationally recognized for service providers, aims at certifying that the
internal control system is suitably designed and operates effectively.
www.generali.com/sustainability/our-rules/group-security for further information on security and the Security Group Policy
RISKS
Risks related to cyber security and dysfunctions of IT systems have increased not only because of the digitalisation trend and
workforce remotisation after the Covid-19 pandemic but also in light of the geopolitical tensions in place.
They are operational risks we measure following the regulatory standards and with qualitative and quantitative models that
allow us to grasp our main exposures and to define the adequacy of the existing controls. Specifically, against a potential rise
in the inherent risk, we implemented countermeasures to mitigate this risk improving the overall control system effectiveness
and reactiveness.
NFS
Annual Integrated Report and Consolidated Financial Statements 2023
24
Generali Group
Climate change
8
Climate change is a material mega trend with complex impacts in different geographies and different sectors.
Climate change risks can be divided in:
• physical risks, arising from the worsening of catastrophic events such as storms, floods, heat waves;
• transition risks, arising from the economic developments generated by the transition to a greener economy, with lower or
virtually zero levels of greenhouse gas emissions, as well as from litigation risks.
Climate change also generates opportunities for companies that are able to develop solutions supporting the transition to a
climate resilient economy and that increase its resilience through adaptation.
As for the insurance industry, the worsening of climate-related weather phenomena - as part of physical risks - may impact on
the P&C segment in terms of pricing, frequency and intensity of catastrophic events, impacting- conditions being equal - the
number and cost of the claims and their management expenses, as well as reinsurance costs.
The Life segment might also be impacted: the intensification of the heat waves, the increased frequency of floods and the
expansion of the habitats suitable for hosting carriers of tropical diseases indeed might worsen the expected mortality and
morbidity rates.
The physical risks caused by climate change, which worsen the living conditions of the population and increase damages not
covered by insurance, might also lead to a deterioration of socio-political stability and the macroeconomic and geopolitical
conditions, with cascade effects on the financial system and on the overall economy.
The transition to a greener economy (transition risks) is driven by changes in national or international public policies, in
technologies and in consumer preferences that might affect different sectors, especially those with a higher energy intensity,
up to leading to the phenomenon of the so-called stranded assets, which is the loss of value for the so-called carbon-intensive
sectors.
A good portion of the impact of these risks depends on the speed to come into line with stricter environmental standards and
on the public support that will be guaranteed for reconversion. The transition risks are therefore influenced by factors marked
by a high degree of uncertainty, such as political, social and market dynamics and technological changes. Even though the
speed of transition and its risks are hard to determine today, they will probably have wide-ranging consequences, especially
in several sectors such as energy.
Financing or insuring companies operating in sectors characterized by high greenhouse gas emissions and do not have
adequate decarbonisation strategies might also expose to reputational risks.
Climate change risk, and in particular the transition, can also expose to litigation risks, which include losses caused by legal
cases due to climate matters.
Climate mitigation and adaptation strategies offer investment opportunities as well as opportunities for the development of the
insurance market. As weather phenomena and extreme natural events evolve and intensify, a related increase in the demand
for protection through specific insurance solutions and risk management is plausible.
The new regulations and the public plans launched in Europe aimed at creating incentives for transition to a green economy,
together with the changes in consumer preferences, are supporting the demand for insurance products tied to the sector
of renewable energy, energy efficiency and sustainable mobility. They are increasing the retail demand for green insurance
products and services linked to sustainable lifestyles and strengthening the demand for investment products linked to green
finance.
The decarbonisation of the economy and, more specifically, the large-scale spread of systems producing energy from renewable
sources require substantial investments that are only partly covered with public funds, in this way increasing investment
opportunities for private parties.
Our management
We have defined processes and tools to mitigate climate risks and to seize the opportunities arising from the green transaction.
These include monitoring the adequacy of the actuarial models to assess and rate risks, recourse to risk transfer mechanisms,
periodical analysis of the investments, product and service innovation processes, dialogue with stakeholders and development
of partnerships to share knowledge and identify effective solutions. Particularly noteworthy is our participation in the Net-Zero
Asset Owner Alliance, the PRI (Principles for Responsible Investments) Climate Action 100+ network, and the PRI and LSE
9
Investing in a Just Transition project.
NFS
8. The Climate change mega trend also includes extreme events.
9. The London School of Economics and Political Science.
We, Generali
25
RISKS
We manage short-term physical risks by adopting a risk monitoring and careful selection aimed at optimizing the insurance
strategy with the use of actuarial models that are periodically updated in order to estimate potential damage, including natural
catastrophe damage, influenced by climate change.
We turn to reinsurance contracts and alternative risk transfer instruments, such as the issue of insurance securities protecting
against natural catastrophe risks, i.e. cat bonds, like Lion III Re.
Our rules for running business with integrity, p. 89
In order to reduce exposure to physical risks of our corporate customers in the Property & Casualty segment, we provide
consulting services to introduce technical-organisational improvements capable of increasing the protection of the insured
assets even from extreme natural events, and we define claim prevention programs and periodically monitor them.
We have set up special procedures to speed up damage appraisal and claims settlement in the case of natural catastrophes
and extreme events so as to strengthen the resilience of the territories struck and to facilitate the post-emergency assistance
and return to normality phase.
As for the transition risk management, we are reducing the already limited exposure of the investment portfolio to issuers of
the coal sector in order to reach zero exposure in OECD countries by 2030 and in the rest of the world by 2040. A gradual
exclusion approach is also applied to the tar sands sector and to oil and gas extracted through fracking and in the Arctic. We
also set the target of transitioning our investment portfolio to net-zero greenhouse gas (GHG) emission by 2050, in line with the
Paris Agreement’s goal of limiting global warming to 1.5°C compared to pre-industrial levels.
Our strategy, Responsible investor, p. 44
The exposure of our client portfolio to fossil fuel sector is low: we exclude underwriting risks associated with coal, gas and oil
exploration and extraction - conventional and unconventional - and since 2018 we no longer offer insurance coverage for the
construction of new coal-fired power plants, for existing coal-fired power plants of new customers and for the construction of
new coal mines. Also for underwriting, we set the goal of gradually reducing our current limited exposure to the thermal coal
sector in order to reach zero exposure in OECD countries by 2030 and in the rest of the world by 2038. In parallel with what we
are doing for investments, we are also committed to ensuring that the emissions associated with our insurance portfolio enable
the achievement of the objectives set out in the Paris Agreement, through a strategy of decarbonisation of our portfolios.
Our strategy, Responsible insurer, p. 66
Finally, Generali champions the principles of the Just Transition through its engagement activity with issuers and clients. This
activity has historically been targeted at energy companies in countries heavily dependent on coal as a primary energy resource.
The purpose is in fact to accelerate their energy transition, combining climate protection with the adoption of measures to
protect communities and workers.
To demonstrate consistency with the commitments required to our customers, issuers and business partners, we are reducing
greenhouse gas emissions generated by our operations by optimizing spaces, increasing energy efficiency, purchasing green
energy, pursuing digitalization and promoting the use of more sustainable means of transport.
Our strategy, Responsible employer, p. 81
In order to seize the investment and development opportunities arising from mitigation and adaptation to climate change, we
offer: insurance solutions to protect customers from natural catastrophe damage, including damage influenced by climate
change; coverage for industrial power generation plants from renewables; and insurance solutions to support customers in
adopting sustainable lifestyles. We are also working to expand the offer of thematic investment products linked to green finance
for the retail segment.
We are increasing our direct investments in green and sustainable assets as stated in our Lifetime Partner 24: Driving Growth
strategy and we continue to issue bonds with the aim of financing or refinancing also projects relating to green buildings,
renewable energies, energy efficiency and clean transportation.
Our strategy, Responsible investor, p. 44
Our strategy, Responsible insurer, p. 66
Our rules for running business with integrity, p. 89
NFS
Annual Integrated Report and Consolidated Financial Statements 2023
26
Generali Group
Climate change risk management framework
The Group Risk Management function has identified
10
climate change as one of the main emerging and sustainability risks that could impact
Generali’s business in the medium and long term. Emerging and sustainability risks arise from future risks, and are difficult to identify and
quantify, mainly due to their long-term implications, interconnectedness with other risks and uncertain development over time. Therefore,
appropriate identification and assessment of these risks are fundamental to evaluate their possible impacts on the business over time.
The Group Risk Management function developed a process to identify, measure, monitor, and manage climate change risk impacts on the
Group’s portfolios.
This process covers the twofold perspective, including:
• the outside-in perspective, which refers to the financial impacts on the Group’s portfolios (i.e. value of investments, insurance liabilities,
etc.);
• the inside-out perspective, which refers to the impacts generated by the Group on both people and the planet.
In terms of governance, the Group Risk Management worked together with other functions such as Group Chief Investment Officer, Group
Chief P&C & Reinsurance Officer, Group Actuarial Function, Group Chief Compliance Officer, Group Integrated Reporting, Asset & Wealth
Management and Group Chief Sustainability Officer to further strengthen the integration of the activities related to climate change risk within
the implementation of the Lifetime Partner 24: Driving Growth strategy and to ensure a cross-functional view of the different activities within
the project.
The impact of climate change risk on the Group’s portfolios is assessed using the Clim@risk methodology, which allows to capture, for each
reference climate scenario, the impact on the Group’s exposures through the application of different levels of climate stress
11
.
The Group Clim@risk methodology covers the following risks and portfolios:
The calculation carried out based on the Clim@risk methodology can be represented as follows:
NFS
TRANSITION
losses caused by variation in costs
and revenues deriving from the
transition to a green economy
PHYSICAL
losses caused by changes
in frequency and severity of climate-
related natural events
LITIGATION
losses caused by legal cases
and controversies due to
climate matters
INVESTMENTS (*)
General Account
Unit-linked (**)
P&C UNDERWRITING
Motor, Property
D&O
LIFE UNDERWRITING
(*) The perimeter of analysis excludes cash and other types of assets not relevant from a climate perspective.
(**) The inclusion of the unit-linked portfolio in the litigation risk analysis is planned during 2024.
SCENARIO
IMPACT
CLIMATE STRESS EXPOSURES
X
10. The identification of risks is performed on an annual basis as part of the Group Own Risk and Solvency Assessment process, and a periodical monitoring with at least a further update during the
year is planned to capture any significant change in the identified risks.
11. The Group is developing an internal tool (Aeolus) aimed at progressively enabling Group companies and business functions to access climate change analyses for activities related to reporting,
business decisions (e.g. pricing but also real estate portfolio management) and assessment of individual counterparties for asset allocation choices within decarbonisation strategies.
We, Generali
27
Climate scenarios describe a change in the global temperature expected at the end of the century compared to the pre-industrial period,
mainly deriving from the assumptions of higher or lower emissions of CO
2
and other greenhouse gases in the atmosphere and their effect
on geophysical variables that regulate the Earth’s climate.
The external climate scenarios selected are based on the Intergovernmental Panel on Climate Change (IPCC) and the Network for Greening
the Financial System (NGFS) sources:
• IPCC for geo-physical variables used for physical risks
12
;
• NGFS for energetic and macroeconomic variables used for transition and litigation risks
13
.
NFS
Low
Low
High
High
PHYSICAL RISK
TRANSITION RISK
Divergent Net-Zero
Divergent policies
across sectors
Net-Zero 2050
Stringent policies and
innovation
Delayed Transition
Stringent policies
from 2030
Below 2°C
Less stringent
policies
Low demand
Stringent policies, lower
energy demand
Fragmented world
Late and divergent policies
Nationally Determined
Contributions (NDC)
Pledged policies
Current Policies
No policies,
business-as-usual
Disorderly
Orderly
Too little, too late
Hot house
12. For physical risks the Shared Socioeconomic Pathways (SSP) scenarios considered were SSP1-2.6, SSP2-4.5 and SSP5-8.5.
13. In 2023, the scenarios defined by the NGFS Phase III, published in September 2022, and for the physical part, the IPCC Coupled Model Intercomparison Project, Phase 6 (CMIP6), were used.
The NGFS Phase IV (Fragmented World and Low Demand) scenarios, published in November 2023, were included with a simplified approach.
Assumes a gradual and homogenous introduction of stringent climate policies for all economic
sectors (“orderly” transition), as well as an increasing development and penetration of innovative
low-carbon power generation technologies, thus reaching net-zero CO
2
emissions around 2050 and
limiting global warming to 1.5°C by 2100
Net-Zero 2050
Assumes an orderly transition like the Net-Zero 2050 (“orderly” transition), but with less stringent
policies and a more contained technological development, thus limiting global warming to 2°C by
2100 in line with the 2015 Paris Agreement (COP 21)
Below 2°C
Assumes, similarly to Net-Zero 2050 scenario, the common target of net-zero emissions by
2050, although pursued in a disorderly manner and characterised by higher costs to sustain the
decarbonisation process, due to less planned climate policies that impact economic sectors in a
disorderly manner (“disorderly” transition)
Divergent Net-Zero
Assumes a business-as-usual scenario until 2030 and the delayed introduction of very stringent
policies from that year onwards to limit warming to 2°C by the end of the century, hence it is
characterised by a “disorderly” transition in terms of timing (“disorderly” transition)
Delayed Transition
Assumes the achievement of all announced decarbonisation targets by 2030 and a business-as-
usual scenario from that year onwards; the projected temperature increase is above 2°C by 2100
given the not sufficient policy measures implemented (“hot house”)
Nationally Determined
Contributions (NDC)
Assumes a business-as-usual scenario with no further climate policy introduced nor technological
development to support the transition; also in this scenario, the target of limiting the temperature
increase to below 2°C by 2100 is not achieved (“hot house”)
Current Policies
Annual Integrated Report and Consolidated Financial Statements 2023
28
Generali Group
NFS
To capture the most significant expected impacts, we focused on short, medium and long-term time horizons, respectively 2025, 2030,
and 2050. The analyses were performed on the existing Group portfolios and no further management actions, changes in infrastructures
or in external market conditions are considered in the assessment.
Overall, our analyses show high impacts deriving from physical risk, particularly in scenarios characterised by a higher increase in temperature,
while the effects of transition risk remain significant in the short and medium term, especially in absence of orderly decarbonisation
measures, emphasizing the importance of orderly transition policy measures. Litigation risk impacts is assessed as limited.
The results of climate scenarios depend on existing climate projections’ data and related modelling methodologies that are still evolving
and becoming more mature on the market. They might hence change over time as a result of data enhancements and methodologies’
improvements.
Climate stress, exposures and the related impacts for each portfolio are described below.
Investment portfolio
The Clim@risk methodology for the investment portfolio is described below.
The climate stress is represented:
• for transition risk by a change in profitability of the underlying assets (i.e. depending on the economic sector and decarbonisation
strategies of the investees);
• for physical risk by the costs due to change in frequency and severity of climate perils (i.e. impact of floods, storms for each investee);
• for litigation risk by the cost for legal cases and controversies of investees.
The exposures include equities, corporate bonds, government bonds and real estate assets of the general account and unit-linked
portfolios
14
.
To identify the most material exposures we analysed the economic sectors for the equities and corporate bonds portfolio, focusing on
the ones most vulnerable to climate change, classified according to the Climate Policy Relevant Sectors (CPRS) literature and to the
geographical distribution of the activities. In particular, finance and other sectors less impacted by climate change represent the main part
of the Group investment portfolio. Investments in sectors that are more impacted, such as fossil fuel, remain limited.
Government bonds were classified based on the reference country, mostly attributable to European countries, and assessed on the basis
of the sectoral composition of the related economies.
The real estate portfolio has been analysed on the basis of the buildings’ energy consumption characteristics, of the CO
2
equivalent
emissions, and of their geolocation. The Group’s portfolio appears to be diversified across all energy classes, and properties are mostly
located in the European countries in which the Group operates.
The impact is reported as the change in net assets value (NAV) determined through dividend discount models or based on bonds’ and
related counterparties’ features to take into account the economic impacts on the investees arising from climate change stresses.
During 2023 the Clim@risk methodology was further expanded to include:
• the unit-linked portfolio;
• the litigation risk evaluation
15
on the equities and corporate bonds portfolio;
• an improved analysis of the issuers’ revenue sectorial allocation and of their plants, property and equipment;
• the evaluation of the Group’s portfolio issuers’ decarbonisation strategies.
The following chart shows the impacts of transition, physical and litigation risks for the investment portfolio, in terms of change in NAV
16
.
14. The exposures exclude assets that are not relevant from a climate perspective such as, for example, cash, which anyhow represent a limited part of the Group’s portfolio. Investment funds are
included in the assessment.
15. Litigation risk model has been developed based on the most up-to date market references (i.e. Geneva Association, Council on Federal Financial Relations - CFFR, and Columbia University
database) and through a machine learning exercise applied to derive the most relevant litigation risk drivers.
16. The table presents impacts on general account portfolio. The analyses conducted on the unit-linked portfolio provide similar results per underlying asset classes.
We, Generali
29
NFS
It can be observed that:
• physical risk remains the most relevant risk in the medium and long term, with impacts in all climate scenarios and specifically ranging
from 5% to 10% in the high-emitting scenarios;
• transition risk is confirmed to be severe in the scenario with disorderly implementation of decarbonisation measures (Divergent Net-Zero)
and in the scenario with delayed implementation (Delayed Transition), in contrast with the Below 2°C and Net-Zero scenarios, which, in
the presence of orderly and timely measures, assume a substantial balance of costs and opportunities, resulting from the high level of
diversification of the Group’s portfolio and from a limited exposure to particularly emissive sectors. However, compared to physical risk,
the impacts of transition risk are more limited with estimated losses on the Group’s portfolio around 3% of NAV in the worst scenario;
• the impacts of litigation risk remain limited with estimated losses on the Group’s portfolio of less than 1% of NAV in the worst scenario.
However, impacts are expected to increase, especially in scenarios with high transition, driven by the growing scrutiny from both public
and private regarding corporate behaviours in relation to climate-related matters.
From asset classes perspective, we observed that:
• the impacts on equity and corporate bond portfolio confirm the trend already described above for the overall investment portfolio both
for physical and transition risk. Regarding transition, as the Group has little exposure in highly emissive sectors, the impacts remain
limited, partially offset by the opportunities in sectors where growth is expected, such as utilities. In the scenarios with low or no
transition, the physical impacts become more material particularly in the second half of the century, due to the cumulated effect of past
emissions;
• the government bond portfolio is only marginally impacted as compared to corporate bonds and equity portfolio. Specifically, impacts
resulting from transition are minimal for all scenarios, due to the greater presence of exposures in European countries, which already
show a higher level of preparedness regarding the implementation of transition policies with respect to other regions. Physical impacts
follow the same trend described for equity and corporate bond portfolio;
• the real estate portfolio shows impacts mainly related to the transition to the energy efficiency requirements represented by the alignment
with the CRREM (Carbon Risk Real Estate Monitor) targets. Transition risk impacts on real estate portfolio benefit from the increasing
availability of buildings’ CO
2
emission data, showing a higher share of real estate portfolio already aligned to the CRREM targets. It is
worth noting that the physical risk impacts are less significant because properties are mainly used as offices, generally less vulnerable
compared to other building types, across European countries that are and not exposed to events, such as tropical cyclones, which
occur in other regions.
(*) The reported results are to be considered preliminary and will be updated in the Group ORSA Report.
Change in asset values under climate scenarios assumptions (ref. year 2050) (*)
Physical risk
Below 2°C Net-Zero 2050
Divergent
Net-Zero
Delayed
TransitionNDC
Current
policies
Transition risk Litigation risk
Annual Integrated Report and Consolidated Financial Statements 2023
30
Generali Group
NFS
The NGFS Phase IV scenarios have been applied with a simplified top-down approach. In particular, results show a general worsening of
impacts in the Fragmented World scenario, while impacts of physical risk are lower in the Low Demand scenario.
Moreover, starting from 2023, the impacts of physical and transition risk across all abovementioned climate scenarios are monitored also
with respect to the Group Life insurance portfolios. In particular, the effect on future liability cash-flows due to potential changes in the
market value of backing investments was measured.
Climate change risk is integrated into decision-making processes through the definition of a specific framework, including limits and
remedial actions in case of breaches.
Limits have been defined for the investment portfolio, complementing the already existing set of controls related to the application of the
ESG principles in the investment processes. The aim is to maintain the Group’s risk profile within the thresholds defined based on the Clim@
risk, at Group portfolio level and to monitor the achievement of emissions’ reduction objectives by setting annual tolerance limits defined on
the basis of intermediate targets as well as the adoption of mitigation measures or the review of the investment strategy.
With regards to the above emissions’ reduction targets (generated impacts) our analysis focused on the investment portfolio, including
equities, corporate bonds and real estate, in line with the targets already announced as part of the Net-Zero Asset Owner Alliance (NZAOA)
initiative.
In relation to the investment portfolio’s carbon intensity decarbonisation target of 25% by 2024, the Group has defined a system of
intermediate targets, with related tolerances, to be monitored on a regular basis throughout the year, in order to identify, monitor and
manage any deviation from these and from the announced target. In particular, these targets have been defined taking into account the
carbon intensity metric components, i.e. the active portfolio management lever and the levers not directly under Generali’s control (individual
counterparty emissions and their market value trend, expressed in terms of Enterprise Value Including Cash - EVIC). Possible remedial
actions to be activated in case of deviation from the internal investment’s portfolio carbon intensity decarbonisation targets have also been
defined.
Our strategy, Responsible investor, p. 44
P&C underwriting portfolio
The Clim@risk methodology for the P&C underwriting portfolio is described below.
The climate stress is represented:
• for transition risk by a change in profitability (i.e. based on the change in premium volume of the different lines of business);
• for physical risk by the change in frequency and severity of climate perils driven claims (i.e. flood, convective storms etc.);
• for litigation risk by the cost of climate-related legal claims in D&O (e.g. greenwashing, etc.).
The exposures include premiums and claims of the Solvency II lines of business most relevant for the Group, namely Motor and Fire and
other damage to property. D&O line of business is considered only with regards to litigation risk.
For the analysis we considered the different geographies where the Group underwrites.
The financial impact is calculated in terms of:
• higher claims resulting from the change in perils’ frequency and severity, also considering the different vulnerabilities of each insured
asset, and the increasing frequency of climate-related litigation cases;
• change in premiums as a result of higher/lower demand for insurance coverage in each economic sector.
The impact is presented in terms of change in operating result for each combination of line of business, sector and geography at a given
future point in time.
During 2023 the Clim@risk methodology was integrated with the inclusion of the litigation risk impacts evaluation for D&O portfolio.
The following chart shows the impacts of transition, physical and litigation risks for the P&C underwriting portfolio, in terms of change in
operating result
17
.
17. The analysis considers risk impacts under defined climate scenarios as of 2050, by assuming no changes in today’s portfolio and in absence of management actions or reinsurance.
We, Generali
31
NFS
In analysing the P&C underwriting portfolio, we observed that:
• physical risk impacts are confirmed to be prevalent and increasing over time in scenarios with absence of stringent emissions policies. The
most relevant physical impacts derive from floods and storms, whose increase in frequency and intensity is foreseen in all geographical
areas where the Group operates. In particular, the stresses on flood risk can even more than double in specific European countries, with
areas or regions in which they even increase by three times. The intensification of the phenomena of droughts and wildfires, as well as
tropical cyclones, has also been assessed. Although, according to some studies, these are expected to increase by more than 250%
in some Caribbean areas and in the United States, they do not present significant impacts given the Group’s limited exposure. During
the year, the Group launched an improvement of the physical risk modelling thanks to the latest available literature and more granular
climate-related projections data, also including a broader set of so-called secondary perils, such as hail and subsidence
18
;
• transition risk impacts remain limited in scenarios with stringent emissions reduction policies (Net-Zero), while the risk impacts are more
significant, albeit limited in case of disorderly transition (Divergent Net-Zero). With reference to transition risk, the most vulnerable line
of business is Motor, given the expected increase in the use of car sharing and public transport to support the reduction of emissions
from private transport. On the other hand, the Fire and other property damage line of business benefits from the increase in the value of
insured assets subject to renovation for energy efficiency;
• with regards to litigation risk for D&O line of business, climate-related litigation claims are increasing with the transition towards a low-
carbon economy, and we measured higher impacts in scenarios where the decarbonisation targets are more stringent, such as Net-
Zero, but the final impact on the P&C operating result remains nevertheless limited given the marginal exposure in our portfolio.
As already anticipated for investments, the NGFS Phase IV scenarios have been applied with a simplified top-down approach, and, as for
investments, results show a general worsening of impacts in the Fragmented World scenario, while impacts of physical risk are lower in
the Low Demand scenario.
During 2023 the Clim@risk methodology was integrated with the Life underwriting calculation module. To this end, we collaborated with
the United Nations Development Programme (UNDP) and used the Climate Horizons available calculations in evaluating climate warming
implications on people’s lives in various regions.
18. It should also be noted that the Group, through its Internal Model for calculating the capital requirement, already considers the increasing level of losses due to catastrophic events including floods
and storms.
Change in operating result under climate scenarios assumptions (ref. year 2050)
Physical risk
Below 2°C Net-Zero 2050
Divergent
Net-Zero
Delayed
TransitionNDC
Current
policies
Transition risk Litigation risk
Annual Integrated Report and Consolidated Financial Statements 2023
32
Generali Group
NFS
Life underwriting portfolio
The Clim@risk methodology for the Life underwriting portfolio is described below.
In addition to the effects on future liability cash-flows due to potential changes in the market value of backing investments, we also
measured the effects of changes in future mortality rates due to:
• for transition risk, changes in air pollution;
• for physical risk, changes in temperatures across the different periods in the year.
In terms of exposures, coherently with the implemented framework, it should be noted that the stresses are applied to all Group Life
portfolios. In particular, for mortality, this means that stresses are applied both to portfolios exposed to mortality risk (e.g. term contracts)
and to portfolios exposed to longevity risk (e.g. annuities) leading to possible offsetting effects which are consistent with the Group product
diversification.
The impact of climate scenarios on Life technical provisions is then measured by means of the underlying actuarial models.
Considering the predominant weight of products with asset dependent cashflows (both saving with profit participation and unit-linked) the
climate change impact on the Group’s Life portfolios is essentially driven by changes in the market value of backing assets (which resulted
to be particularly severe in scenarios with high physical risk). On the other hand, the impact due to the potential changes in future mortality
rates is overall limited thanks to both the Group geographical and business mix diversification.
We, Generali
33
Ageing and new welfare
Modern communities continue to be influenced by distinct demographic and social phenomena with a strong impact on their
socio-economic balances.
In the more mature European economies, we are witnessing a continual process of population aging, driven by an increase in
life expectancy, net of the still uncertain long-term pandemic effects, and a decrease in birth rates. The international migration
phenomena only partially counter-balance this trend, which is in any case otherwise influenced by socio-political initiatives
adopted locally.
In most European markets, the adult working-age population is often affected by the pressure of combining work and caregiver
responsibilities for elderly age groups (a growing phenomenon), children and young people.
The younger age groups are affected by a reduced and often discontinuous capacity to generate average income; this is
strongly influenced by a flexible but precarious labour market that does not ensure reasonable certainty for financing the public
welfare system. We confirm the presence of unbalanced communities, where the increase in social security and healthcare
needs does not match the appropriate funding and coverage of public systems by the active population.
The healthcare need naturally evolves towards increasingly sophisticated, hence costlier, supplies and services, which have
to face new needs. The stable expansion of the elderly and vulnerable age groups highlights the trend of a constant increase
in chronic diseases with severity and incidence prolonged over time. At the same time, an enhanced awareness of the bond
between health, lifestyles and the environmental context is perceived thanks to both public social initiatives and greater
proactiveness and promotion from private market.
In the context described above, the limited financial resources produced by the younger categories of the population, or from
private savings in general, have to be directed and valued more carefully.
Our management
We actively engage in creating more stable communities while monitoring and tackling the effects of a changing society. This
is why we develop and offer flexible, modular pension and welfare solutions for the coverage of healthcare costs and other
potential current and future needs for individuals, families and communities. We are committed to becoming a Lifetime Partner
to our customers, strengthening the dialogue with individuals during their entire period of interaction with our companies
through new, streamlined services accessible 24/7.
Generali is active in the development and/or diffusion of modern subscription processes, in particular for protection and
health products, based on digitalization and automation, as key levers for improving the accessibility and the usability of the
service.
We provide customers with complete and easily accessible information on products and services, while helping them to
understand the primary factors that may affect their income capacity and quality of life, and aiding them in accurately assessing
their capacity to save as well as identifying their current and future needs. We believe that insurance coverage is the most
appropriate tool to forecast and meet potential needs for people of all ages with the required advance notice; we therefore
formulate, and present offers even in the case of market contexts with little knowledge and low individual propensity for
insurance solutions.
RISKS
Life and Health products, including pension and welfare products, imply the Group’s acceptance of biometric underwriting
risks, typically mortality, longevity and morbidity. We therefore need to manage them through underwriting processes that are
based on an updated assessment of the socio-demographic conditions of the population whose purpose is to understand
their relative trends. We also have solid pricing and product approval processes that offer a preliminary analysis of the cases
regarding the biometric factors, in line with Local Product Oversight Governance Policies. Such processes are part of a
structured governance defined in the Life Underwriting and Reserving Group Policy. Lastly, we measure the mortality, longevity
and morbidity risks using the Group’s Internal Model. Moreover, to assess the impact of the Ageing and new welfare megatrend
and promptly intervene on both pricing and reserving, we monitor the exposed Life portfolios by means of qualitative and
quantitative analyses.
NFS
Annual Integrated Report and Consolidated Financial Statements 2023
34
Generali Group
OUR STRATEGY
19. General account - Direct investments (corporate bond and equity, sovereign bond).
20. General account - Listed equity and corporate bond portfolios. Carbon footprint in terms of GHG intensity per invested amount. Baseline: 2019.
DELIVER STRONG FINANCIAL PERFORMANCE, BEST-IN-CLASS CUSTOMER EXPERIENCE
AND AN EVEN GREATER SOCIAL AND ENVIRONMENTAL IMPACT,
FULL ESG CRITERIA INTEGRATION
19
BY 2024
NET-ZERO INVESTMENT PORTFOLIO BY 2050, WITH AN
INTERIM GOAL OF 25%
20
CARBON FOOTPRINT REDUCTION BY 2024
€ 8.5 - 9.5 billion
NEW GREEN AND SUSTAINABLE INVESTMENTS 2021-2025
€ 3.5 billion
INVESTMENT PLAN BY 2025 TO SUPPORT THE EU RECOVERY
+5 - 7%
INSURANCE SOLUTIONS WITH ESG COMPONENTS GROSS DIRECT
WRITTEN PREMIUMS CAGR 2021-2024
NET-ZERO INSURANCE PORTFOLIO BY 2050
FOSTER SUSTAINABLE TRANSITION FOR SMEs THROUGH ENTERPRIZE PROJECT
SUSTAINABILITY WITHIN ALL PEOPLE PROCESSES, ENABLED BY
A PEOPLE STRATEGY FOCUSED ON CULTURE, DIVERSITY,
COMPETENCE UPSKILLING AND NEW WAY OF WORKING
CHANGE MANAGEMENT PROGRAMS ON SUSTAINABILITY, TARGETING GROUP
LEADERSHIP AND ALL EMPLOYEES
GOVERNANCE OF SUSTAINABILITY TO MIRROR AND MONITOR OUR AMBITION
THE HUMAN SAFETY NET - A SOCIAL INNOVATION HUB POWERED
BY GENERALI’S SKILLS, NETWORKS AND SOLUTIONS TO CREATE
SOCIAL IMPACT, SUPPORTING THE MOST VULNERABLE GROUPS IN
UNLOCKING THEIR POTENTIAL
RESPONSIBLE
INVESTOR
RESPONSIBLE
INSURER
RESPONSIBLE
EMPLOYER
RESPONSIBLE
CITIZEN
LEAD
INNOVATION
DRIVE
SUSTAINABLE
GROWTH
ENHANCE
EARNINGS
PROFILE
BOOST P&C REVENUES AND MAINTAIN
BEST-IN-CLASS TECHNICAL MARGINS
GROW CAPITAL LIGHT BUSINESS,
TECHNICAL PROFITS
AND ESG PRODUCT RANGE
UNDERPIN GROWTH WITH EFFECTIVE
COST MANAGEMENT
IMPROVE LIFE BUSINESS PROFILE
AND PROFITABILITY
REDEPLOY CAPITAL TO PROFITABLE
GROWTH INITIATIVES
DEVELOP ASSET MANAGEMENT
FRANCHISE FURTHER
INCREASE CUSTOMER VALUE THROUGH
LIFETIME PARTNER ADVISORY MODEL
ACCELERATE INNOVATION AS
A DATA-DRIVEN COMPANY
ACHIEVE ADDITIONAL OPERATING EFFICIENCY
BY SCALING AUTOMATION AND TECHNOLOGY
SOCIAL,
ENVIRONMENTAL
AND STAKEHOLDER
IMPACT FOR A
SUSTAINABLE
TRANSFORMATION
We, Generali
35
STRONG EARNINGS
PER SHARE GROWTH
6 - 8%
EPS CAGR RANGE
23
2021-2024
INCREASED CASH
GENERATION
> € 8.5 billion
CUMULATIVE NET HOLDING CASH
FLOW
24
2022-2024
HIGHER DIVIDEND
€ 5.2 - 5.6 billion
CUMULATIVE DIVIDEND
2022-2024, WITH RATCHET
POLICY ON DIVIDEND PER SHARE
LIFETIME PARTNER 24: DRIVING GROWTH
21. Excluding sales-force cost.
22. Income defined as the sum of general expenses, operating result and non-operating result (excluding non-operating investments result and interest on financial debt); insurance perimeter (total
Group excluding A&WM and EA). Target based on current IFRS accounting standards.
23. 3-year CAGR based on 2024 Adjusted EPS (according to IFRS 17/9 accounting standards and Adjusted net result definition currently adopted by the Group), versus 2021 Adjusted EPS
(according to IFRS 4 accounting standards and Adjusted net result definition adopted by the Group until 2022).
24. Net Holding Cash Flow and dividend expressed on cash basis (i.e. cash flows are reported under the year of payment).
25. Group Management Committee, Generali Leadership Group and their first reporting line.
26. Willis Towers Watson Europe HQ Financial Services Norm.
THANKS TO OUR EMPOWERED PEOPLE.
BUILD A DIVERSE AND INCLUSIVE
ENVIRONMENT ENSURING EQUAL
OPPORTUNITIES
40%
WOMEN IN STRATEGIC
POSITIONS
25
70%
UPSKILLED
EMPLOYEES
100%
ENTITIES WORKING
HYBRID
ENHANCE CUSTOMER-CENTRIC,
SUSTAINABLE AND MERITOCRATIC
CULTURE
ENGAGEMENT RATE >
EXTERNAL MARKET
BENCHMARK
26
INVEST IN DIGITAL AND
STRATEGIC SKILLS PLACING
PEOPLE AT THE HEART OF
OUR TRANSFORMATION
ENABLE AN EFFICIENT AND AGILE
ORGANIZATION EMBRACING A
SUSTAINABLE HYBRID WORK
MODEL ROOTED ON DIGITAL
> 4%
P&C NON MOTOR GWP CAGR 2021-2024
€ 2.3 - 2.5 billion
LIFE NEW BUSINESS VALUE AT 2024
COST SAVINGS TO COUNTERBALANCE INFLATION
IN INSURANCE EUROPE
21
Up to € 1.5 billion
POTENTIAL SOLVENCY II CAPITAL REQUIREMENT REDUCTION
€ 2.5 - 3 billion
CUMULATIVE DISCRETIONARY AVAILABLE FREE CASH FLOW
+ € 100 billion
ASSET MANAGEMENT THIRD PARTY REVENUES
RELATIONSHIP NPS
MAINTAIN THE LEADERSHIP AMONG OUR EUROPEAN INTERNATIONAL PEERS
€ 1.1 billion
CUMULATIVE INVESTMENTS IN DIGITAL AND TECHNOLOGY
2.5 - 3 p.p.
COST/INCOME RATIO
22
IMPROVEMENT
ENGAGED PEOPLE
AS A CORE ASSET
TO SUCCESSFULLY
DELIVER THE NEW
PLAN
Annual Integrated Report and Consolidated Financial Statements 2023
36
Generali Group
Lifetime Partner 24: Driving Growth is Generali’s strategic plan for the 2022-2024 period, a plan that
marks an important new chapter in the 190-year history of the Group, and it is built around an even
stronger commitment to being a Lifetime Partner to our customers.
Our commitment is to be there for our customers 24 hours a day, 7 days a week: providing sound, personalized advice while
leveraging on digital technology to ensure easy, immediate access.
The plan is about growth. In the 2022-2024 period, we will:
• strengthen our leadership in Europe and foothold in fast-growing markets;
• maintain our unrivalled financial strength in all market conditions;
• champion sustainability to be the originator of our strategy;
• enhance the Lifetime Partner ambition for our customers;
• accelerate our digital transformation, to make Generali a recognized data-driven innovator.
Thanks to all these actions, we will keep delivering robust earnings, increased cash generation and higher dividends to our
shareholders, while creating sustainable value for all our stakeholders.
Sustainability is the true originator of this plan. It is and will continue to be deeply integrated into everything we do, in line with our
commitment to play our part towards a more resilient and just society.
COVERS THE PLAN DURATION,
THREE YEARS THAT WILL TAKE US
THROUGH TO THE END OF 2024,
AND IT ALSO REFERENCES TO
BE THERE FOR OUR CUSTOMERS
IN EVERY MOMENT.
CAPTURES OUR
COMMITMENT TO
SUSTAINABLE GROWTH.
COMMITMENT TO
OUR CUSTOMER
RELATIONSHIPS.
We, Generali
37
Drive sustainable growth
The first strategic pillar aims to pursue growth that is both sustainable and profitable: increasing
profitability and growing revenues from our existing activities remain the backbone of our strategic
vision. To achieve this goal, we will rely on three key levers based on a set of strategic actions to be
accomplished.
FIRST LEVER
We will boost our P&C revenue and maintain our best-in-class technical margins in order to deliver a compound annual
increase of more than 4% in P&C non-motor gross written premiums. We will do this by improving our market share in
segments with significant growth potential, such as SMEs, Senior Care in Europe, and Travel in the US. We will also leverage
our leadership in the Health market to take advantage of growth opportunities, going beyond traditional medical reimbursement
plans. Everything begins with wellness and prevention: rewarding healthy behaviours is vital to face the key drivers of major
diseases. The next priority is making healthcare more accessible, leveraging on our comprehensive range of services, including
telemedicine, home care and digital symptom checkers.
SECOND LEVER
We will grow our Life capital-light business, technical profits and ESG products range, with the aim of delivering between € 2.3
and € 2.5 billion of New Business Value by year-end 2024, result that will be achieved by continuing to invest in our unit-linked
business, while further internalizing margins.
In addition, we will strengthen protection as a de-risking tool for investment solutions and expand the range of ESG propositions.
THIRD LEVER
We will underpin growth with effective cost management in our established insurance markets and we will focus additional
investments on Asian growing markets and on fee-based businesses like Europ Assistance, continuing to develop our
distribution capabilities in the Asset Management space at the same time. In our core European insurance markets, our
expense reduction targets will fully offset expected inflation, leading to overall flat expenses.
Our financial performance, p. 105
Annual Integrated Report and Consolidated Financial Statements 2023
38
Generali Group
Enhance earnings profile
The second pillar on which the strategic plan for the coming years has been built aims at enhancing
earnings profile. In order to achieve this goal, we will rely on three key levers. For each of them, we have
identified a set of strategic actions to carry on.
FIRST LEVER
We will improve Life business profile and profitability by undertaking a comprehensive in-force optimization to reduce the
capital intensity of our Life business and improve our operating result. We will also enhance our strategic asset allocation to
improve returns, thanks to our investment capabilities in the real asset space and the further integration of ESG criteria. With
in-force management, we are aiming for a reduction of up to € 1.5 billion in our solvency capital requirements, which will result
in improved capital productivity and a further reduction in market sensitivity.
SECOND LEVER
We will redeploy capital to profitable growth initiatives with the expectation to have available € 2.5 to € 3 billion cumulative
discretionary free cash flow. Overall, we will target activities that allow earnings diversification and increase our market
leadership, minimizing execution risks. This represents our activities from a strategic point of view while, from a financial one,
we will maintain the usual highly disciplined approach. Firstly, we will reinforce our leadership in Europe and strengthen our
presence in specific growing markets, especially in Asia. Moreover, we will invest in selected Asset Management capabilities,
and build scale to accelerate third-party growth. The goal is to maximise long-term value creation for our shareholders, while
finding the right mix of capital redeployment and capital return.
THIRD LEVER
We will develop Asset Management franchise further.
Our first aim is to expand our real asset capabilities, capitalizing on the strong track-record of Generali Real Estate and Infranity.
This will allow us to optimize our general account and better attract third-party clients, expanding our recurring and high-margin
fee business. We will furthermore integrate our Life and Asset Management businesses, which remains a priority.
By broadening our investment capabilities, we will also expand our product offering. This will support our Unit-Linked strategy and
further develop our third-party client base.
Our second aim is to upscale distribution platform to drive growth in third-party revenues. To this end, we will maximize the reach
of our multi-boutique platform well beyond our core European markets, diversifying profit sources with new markets and new
channels.
We will furthermore continue to integrate ESG criteria into our investments, in line with our commitment to sustainability and our
customers’ expectations.
All these activities will allow us to target an incremental revenue of more than € 100 million from third-party clients.
Our financial performance, p. 105
We, Generali
39
Lead innovation
The third pillar of our strategic framework consists in leading innovation, an essential element to the
continued evolution of Generali’s business. To make it happen, we have identified three main levers
and key strategic actions.
FIRST LEVER
We will create more customer value through the Lifetime Partner advisory model by scaling up our increasingly digitally-enabled
and data-driven advisory model, establishing a seamless omnichannel distribution approach, and growing our presence in the
European direct business market, with the aim of scaling up of our direct operations. This will allow us to maintain our leadership
position within our peer groups in terms of Relationship Net Promoter Score.
SECOND LEVER
We will guarantee operational efficiency by optimizing internal operating machine and external spend, consolidating and
modernizing core and non-core platforms to achieve economies of scale on investments and reduce IT costs. We will also
enable business transformation by better leveraging Digital & Data through the scaling-up of Group solutions to collect, process
and extract value from data. Additionally, we will ensure a better level of digital service for customers, distributors as well as
internal users by fostering performance and improving the level of service by working on operating machine organization,
processes, skills and culture. This will happen through € 1.1 billion of investments in digital transformation initiatives. At the
end of 2023 we have invested an overall 75.5% of the € 1.1 billion and we confirm our commitment to reach 100% within the
current strategic cycle.
Investments in Digital & Technology
27
€ 443 mln
+14.2%
THIRD LEVER
We will achieve additional operating efficiency by scaling Analytics, Automation and Technology: we will reduce costs through
digitization, core process automation and shared platforms, and we will optimize further claims management using Artificial
Intelligence. These investments in areas like Analytics, Automation and, generally speaking, Artificial Intelligence in all its
different facets will deliver additional operational efficiency to our core processes resulting in a 2.5-3 p.p. improvement of our
cost/income ratio.
We will further improve our business model and service level across the board, create data-driven opportunities to deliver profitable
growth, and increase both efficiency and productivity. We will do so by:
• capitalise on Group scale and expertise converging all entities towards Lifetime Partner model;
• drive cost efficiencies and improved service through adoption of latest digital technologies;
• unleash the power of data capturing opportunities from IoT, 5G and AI;
• ensure Group security through cyber and infrastructure harmonisation;
• release Group innovation potential to drive new features, channels and revenues.
We will keep a strong focus and act on four key transformation levers.
NFS
Lifetime Partner
27. The indicator refers to insurance consolidated line-by-line companies that are part of the Technology, Data & Digital program, which has kicked-off the transformation initiatives aimed to scale
and converge expertise, drive cost efficiencies and improve service through adoption of the latest technologies, unleash the power of data, ensure security and release innovation potential, in
line with Generali’s Lifetime Partner model.
LEVE DI
TRASFORMAZIONE
01
03 04
02
IT CONVERGENCE
DIGITAL
AND ECOSYSTEM
INNOVATION
www.generali.com/investors/Strategy/transformation-strategy for further details
DATI, AI AND AUTOMATION
Annual Integrated Report and Consolidated Financial Statements 2023
40
Generali Group
NFS
Our research shows that customers are willing to consolidate their insurance with one provider. At the same time, customer
needs and expectations are changing rapidly as they are shaped by their interactions with brands across all sectors and
services. Today customers want:
• effortless and caring interactions. Effortless in terms of speed, accessibility and clarity. Caring in terms of the human support,
especially for more complex or sensitive issues;
• greater personalization;
• relationship based advice, rather than based on transactions.
These expectations form the basis of our three customer promises to become a trusted Lifetime Partner to many more
Generali clients.
Five years ago, we set out to become Lifetime Partner to our customers. Our ambition was to: deepen relationships with
existing customers, attract new customers and become the first-choice brand.
Our Lifetime Partner strategy delivered strong results. Starting with Relationship NPS, we reached our goal to become number
one among our European international peers. We also increased customer retention, the average number of policies per
customer and brand preference.
With Lifetime Partner 24: Driving Growth, we want to further strengthen our customer relationship and grow their value to
Generali. Our goal is to become our customers’ primary insurer.
Customers
28
70 mln
+3.3%
The increase is mainly due to customers of companies acquired in 2022 who were not considered in 2022 and few customer
portfolios acquired in 2023.
Lifetime Partner
EFFORTLESS AND
CARING EXPERIENCES
To consistently minimize
customer effort at every step
Products are tailored & flexible
enriched with service ecosystem
to prevent and assist
PERSONALISED VALUE
PROPOSITIONS
Proactively deepen relationships with
advice & contact leveraging
digital & in-person interactions
PHYGITAL ADVICE
28. The number of customers refers to all insurance entities, banks and pension funds.
We, Generali
41
NFS
EFFORTLESS AND CARING EXPERIENCES
To consistently minimize customer effort at every step.
Using the feedback received from millions of our customers, we have created a genuine customer-centric culture and
implemented thousands of actions to improve and, in some cases, redesign customer experience.
Thanks to this solid foundation, we are designing effortless and caring experiences that minimize customer effort at every step.
We aim to make the entire purchase, service, claims, assistance, and renewal experience consistently effortless and caring.
Our guiding principles are: speed, ease, real time, accessible, first time right but always with a human touch, especially for
complex matters:
• increase speed and efficiency by using Smart Automation to offer instant claims settlement, pay out and fast quotation;
• offer real-time conversational channels (Whatsapp, Messenger, Chatbot etc.) or chatbots boosting real-time engagement;
• be accessible 24/7 on one’s preferred channel, including the agent without bureaucracy. New self-service options on the app
and portal will allow to find & do anything customers want easily, will make access easier and drive first contact resolution
performance;
• continue to offer human support for clients with complex matters empowered by a 360° customer view.
These guiding principles will also ensure we offer a sustainable paperless & accessible experience fulfilling expectations of
responsible consumers.
Our goal is to ensure customers interact with Generali in the easiest, fastest and most caring way.
PERSONALISED VALUE PROPOSITIONS
Products are tailored & flexible enriched with service
ecosystem to prevent and assist.
We have already strengthened our offer, moving from just selling products to providing solutions enriched with value added
services.
As part of the evolution to become Lifetime Partner of our customers, we develop personalised propositions:
• leverage on customer value and insights to drive personalized pricing, flexible coverage and tailored communication enabled
by modular solutions. It starts with a deep understanding of our customers’ needs, incorporating insights into our products
and services. Starting from customer value will also enable us to offer dedicated propositions and advantages to high value
customers;
• offer a tailored value added service ecosystem to cover all customer needs and all type of services: information, prevention,
protection, assistance. Customers will be able to choose the services most relevant to them and we will monitor the impact
in terms of experience and customer engagement. Thanks to our global connected service assets (e.g. Vitality, Jeniot)
and our distinctive partnership with Europ Assistance we can create scale and innovate our Health, Mobility, Home & SME
propositions;
• propose a personalized packaging communicating clearly what is covered, which services and benefits customers get. We
are committed to writing our documents in simple and clear language brought to live with an engaging storytelling.
Our goal is to ensure customers feel the solutions are tailored to their needs and that they get value every day.
Annual Integrated Report and Consolidated Financial Statements 2023
42
Generali Group
NFS
PHYGITAL ADVICE
Proactively deepen relationships with advice & contact leveraging
digital & in-person interactions.
Agents
29
164 thousand
+2.0%
As part of our evolution in becoming Lifetime Partner to our customers, phygital advice is a combination between digital and
in-person interactions with their trusted advisor. There are three key elements of this customer promise:
• revolutionizing our relationship model through Lifetime Partner Advisory. Personalizing value propositions enables our
advisors to tailor solutions to customer needs. Supporting with state of the art advisory processes, training and incentives
we can embed a strong advisory culture;
• high focus on post-sales relationship delivers meaningful business impact, by using digital tools and data to connect with
all customers across all channels, we can reach more than two thirds of our customers who experience memorable and
meaningful contact each year. Annual financial check-ups are delivering a significant impact on customer satisfaction;
• providing an end-2-end digital experience (E2E) which enables our distribution network to service our customers effectively
from anywhere and through any channel. We are equipping our agents/advisors with best-in-class digital E2E tools that
facilitate remote advisory and selling and increase digital visibility to ensure regular contact with customers. We focus on
digital advisory & CRM tools, complemented with trainings to ensure they are empowered to provide a caring customer
experience with professional advice. We streamline the advisory process using digitalization to eliminate non-value activities,
ensuring our advisors can focus on what matters most, our customers.
The implementation of our three customer promises, in combination with our improvements in terms of digitalization, data &
cultural transformation, will create additional value for our customers, strengthening the role of Generali as primary insurer to
cover all their needs.
This will allow us to maintain our leadership position for Relationship NPS compared to internationally active European insurance
groups and will also result in an increase in the percentage of multi-holding customers.
Relationship NPS
30
21.5
+3.3
% multi-holding customers
31
51.3%
+0.7 p.p.
29. The number of agents refers to all insurance entities with traditional distribution networks.
30. The indicator spans 23 markets where we operate under the Generali brand: Argentina, Austria, Bulgaria, Croatia, Czech Republic, France, Germany, Greece, Hungary, India, Indonesia, Italy,
Malaysia, Poland, Romania, Serbia, Slovakia, Slovenia, Spain, Switzerland, Thailand, Turkey and Vietnam.
31. The indicator measures the percentage of customers with two or more needs covered by Generali. Customers of mono-product companies (companies operating in only one line of
business, such as MTPL, travel, pension funds, legal assistance, etc.) and customers who are not directly reachable by Generali (banks, bancassurance companies, white label business and
partnerships) are not relevant for this scope, as the indicator is not applicable. The change was calculated on the data at year-end 2022, which was restated mainly following methodological
improvements.
We, Generali
43
NFS
Deliver strong financial performance, best-in-class customer
experience and an even greater social and environmental impact,
thanks to our empowered people
Sustainability is the originator of our strategy, with the ambition of creating long-term value by promoting financial performance while
considering people and the planet. It is about acting for the common good to build a more resilient and just society.
This ambition is aligned with our purpose. Sustainability wants to shape the way all the Group’s decisions are taken, leading Generali
to be a transformative, generative, and impact-driven company.
In order to create long-term sustainable value, Generali identifies four responsible roles to play as investor, insurer, employer and
citizen.
RESPONSIBLE
INSURER
RESPONSIBLE
EMPLOYER
RESPONSIBLE
INVESTOR
RESPONSIBLE
CITIZEN
Aims at fully integrating ESG criteria into the investment
activities, reducing greenhouse gas emissions from
the investment portfolio to net-zero by 2050, and
increasing our new green and sustainable investments,
including the Fenice 190 investments to support the EU
Recovery.
Provides insurance solutions with ESG components,
reduces greenhouse gas emissions from the
underwriting portfolio to net-zero by 2050, and supports
the sustainable transition of small and medium-sized
enterprises (SMEs) through the SME EnterPRIZE
project.
Carries out dedicated actions to foster and promote
diversity, equity, and inclusion in our work environment,
continuously upskilling our people, nurturing talent
in all its forms, and implementing more flexible and
sustainable ways of working. In addition to this, Generali
commits to measuring, reducing, and reporting the
carbon footprint resulting from its own direct operations.
Acts to transform and better the lives of the most
vulnerable through the global initiatives of The Human
Safety Net Foundation, a social innovation hub powered
by Generali’s skills and international network, in order to
create a positive impact on society.
Annual Integrated Report and Consolidated Financial Statements 2023
44
Generali Group
NFS
Responsible investor
As a Responsible Investor, in the Lifetime Partner 24: Driving Growth strategy, we committed to widely integrating sustainability
into our investment activities, setting - among other things - specific goals to achieve by the end of 2024 (and beyond),
including the following:
Sustainability in the investment process
The inclusion of sustainability within the investment process is a key instrument to allow an insurance group to create long-term
sustainable value for its stakeholders. As an institutional investor with € 655.8 billion Assets Under Management, through its
investments Generali plays a fundamental role in contributing to achieve Sustainable Development Goals while avoiding financing
economic activities that have a negative impact on the environment and society.
In this context, the integration of sustainability factors in the investment process has a dual role: on the one hand, it allows to
positively contribute to the development of a more sustainable economy, with a positive impact on the environment and society; on
the other, it allows a better management of sustainability risk
32
to which its investments are exposed.
Investing while limiting risks, including those related to sustainability, is a fundamental requirement to respect our commitment to
stakeholders.
To confirm its multi-year commitment to sustainability, over the years the Group joined several reference initiatives, such as the
United Nations Global Compact in 2007 and the PRI (Principles for Responsible Investment) in 2011. Moreover, in line with the
steady commitment in the environmental field, in 2020 the Group joined the Net-Zero Asset Owner Alliance (NZAOA), an initiative
sponsored by the United Nations that gathers institutional investors committed to transitioning their investment portfolios to net-zero
CO
2
emissions by 2050, with the goal of limiting global warming to 1.5°C.
The integration of sustainability factors in the investment process is based on different elements, such as data availability and quality,
ESG research and analysis to shape the decision investment process, the use of solid and largely acknowledged methodologies and
instruments, the assessments of the impact on the financial risk/return profile of the portfolios, and the applicable reference regulation.
01
We want to reduce greenhouse gas emissions from the investment portfolio to net-zero by 2050, progressively covering
all the asset classes in which the Group invests. For direct investments in listed equity and corporate bonds, we set the
intermediate goal of reaching a 25% reduction of the carbon footprint of our investments by the end of 2024. As proof of
this, Generali is part of the Net-Zero Asset Owner Alliance, whose members are committed to the transition of the investment
portfolios to zero greenhouse gas emissions by 2050.
02
We want to make at least € 8.5 - 9.5 billion of new green, social and sustainable bond investments by 2025.
03
We want to invest € 3.5 billion to support the EU Recovery by 2025.
32. Namely an environmental, social or governance event or condition that, upon its occurrence, could cause an actual or potential negative impact on the value of the investment or on the value of
the liability (Delegated Regulation EU 2015/35, Solvency II).
Main targets declared in the Lifetime Partner 24: Driving Growth strategy
Indicator
Reference period Target 31/12/2021 31/12/2022 31/12/2023
Carbon footprint of investment portfolio (EVIC) (*) 2020-2024 -25% -29.6% -45.1%(**) -46.2%
New green and sustainable investments (***) 2021-2025
€ 8.5-9.5 bln
(nominal value)
€ 2,537 mln € 5,727 mln € 9,126 mln
Fenice 190 - investments to support sustainable r
ecovery in Europe (***)
2020-2025
€ 3.5 bln of
commitments
€ 2,080 mln
€ 2,080 mln
€ 2,666 mln
(*) The indicator refers to the carbon footprint of direct general account investment portfolio of the Group’s insurance companies in listed equities and corporate bonds, in terms of carbon intensity
(EVIC).
(**) Starting from the end of 2022, the portfolio of Generali China Life Insurance Co. Ltd. has been included in the scope. The data for previous years have not been restated given the low materiality
on the carbon footprint of the years prior to 2022, mainly due to a limited coverage of data available from external data providers.
(***) The amounts are cumulative.
We, Generali
45
NFS
Taking into consideration the constraints mentioned above, the Group defined a framework for the integration of environmental, social
and governance sustainability factors in insurance proprietary investments through different approaches for the various portfolios and
asset classes managed, with reference to both direct and indirect investments (i.e. through mutual funds). This framework reflects
the Group’s sustainable investment strategy, set out in the Integration of Sustainability into Investments and Active Ownership Group
Guideline (ISIAOGG) and in the Generali Group Strategy on Climate Change - technical note.
www.generali.com/sustainability/responsible-investor/sustainability-into-investments for further details
Negative screening
The negative screening approach aims at excluding
33
from the Group’s investable universe those issuers, sectors or activities
with poor ESG practices or not aligned with the Group’s climate strategy that could potentially impact on their long-term
financial performance and/or expose the Group to higher sustainability and reputational risks.
The methodology adopted by the Group is based on three types of negative screening:
1. Screening at activity level:
some economic activities generate a negative impact for the environment and society and, indirectly, also a financial risk.
With reference to those activities that damage the climate, they could soon become stranded, meaning without value,
in the path of the energy transition. With the goal of limiting investments in companies involved in such sectors, this
screening aims at excluding:
• companies operating in the unconventional weapons
34
sector;
• companies operating in / projects dedicated to the thermal coal sector;
• companies operating in / projects dedicated to the unconventional oil and gas sector.
For more details on the exclusion criteria related to thermal coal and unconventional hydrocarbons, as well as the
application based on the different asset classes, please refer to the Generali Group Strategy on Climate Change, adopted
in 2018 and continuously evolving since then.
www.generali.com/our-responsibilities/our-commitment-to-the-environment-and-climate for further information
a.
DIRECT INVESTMENTS01
a. Negative screening
b. Positive screening
c. Investments with sustainable characteristics
d. Active ownership
a. Exclusion from investments of activities harmful to the environment
b. Our commitment to decarbonisation of the investment portfolio
c. Investments in assets as driver of change
d. Integration in the fight to climate change in active ownership policies and
practices
e. Inclusion of decarbonisation specific requirements in the criteria of asset
manager and fund selection
CLIMATE CHANGE
a. Selection of asset managers and funds
b. Covid-19: commitment to a sustainable economic
recovery
DIRECT INVESTMENTS
01
03
02
INDIRECT INVESTMENTS
33. In the case of issuers already present in the Group’s portfolio, positions cannot be increased. Subject to market conditions, liquidity, and economic impacts for the company and policyholders,
stocks are sold on the market, and bonds may be sold or held until maturity.
34. The Generali Group’s exclusion policy on unconventional weapons is compliant with the requirements of the Italian Law n. 220/2021 on the measures to be adopted to avoid financing
manufacturers of anti-personnel mines and/or cluster munitions and submunitions. This law totally prohibits the financing of any companies, whatever their legal form, whether registered in Italy or
abroad, which directly, or through their subsidiaries or associates, pursuant to article 2359 of the Civil Code, engage in the manufacture, production, development, assembly, servicing, retention,
employment, use, storage, stockpiling, possession, promotion, sale, distribution, import, export, transfer or transport anti-personnel mines, cluster munitions and submunitions, regardless of their
nature or composition, or their component parts. It is also prohibited to carry out technological research, manufacture, sale and transfer for any reason, export, import and possession of cluster
munitions and submunitions, of any nature or composition, or parts thereof.
Annual Integrated Report and Consolidated Financial Statements 2023
46
Generali Group
NFS
b.
c.
2. Screening of controversies:
certain issuers can be responsible for serious violations perpetrated against the environment, the communities or their
own employees, thus destroying their human capital, its legitimacy to operate and the ability to create value in the long
term. In the face of these high risks, this screening aims at excluding from the investable universe those issuers (both
corporate and sovereign) involved in severe controversies linked, among the others:
• for the corporate issuers, to violations of the UN Global Compact and of the OECD Guidelines for Multinational
Enterprises;
• for the sovereign issuers, to the criteria that include i) the respect of political rights and civil liberties, ii) the level of
corruption in the country, iii) the level of cooperation in the global fight against money laundering and terrorism financing,
iv) the level of contribution to deforestation..
3. ESG Laggard:
the corporate responsibility of an issuer and its ability to create long-term value cannot be assessed only with respect to
controversies and operations in some economic sectors, but rather require a more global assessment of how the company
considers, in its operations, environmental, social and governance issues. For this reason, the ESG scores, aimed at
assessing the company’s strategy and performance in its three main pillars (environmental, social and governance),
play a fundamental role in the investment process. This screening aims at excluding from the investable universe those
corporate and sovereign issuers which, based on the result of an ESG analysis carried out by combining information
received from independent data providers and from an internal expertise (ESG research team), have been identified as
having a particularly low ESG profile (ESG Laggards) compared to the sector to which they belong (corporate) or to the
global universe of the asset class (sovereign).
Direct investments by the Group’s insurance companies subject to negative screening approach
€ 233,348 mln
-0.9%
Positive screening
The positive screening is an additional approach to negative screening and provides a further mean of influencing
investment choices also on the basis of ESG factors. The approach aims at considering the ESG performance of issuers
during the investment selection with the goal of identifying and overweighting in the portfolio those companies that are
better placed to seize the opportunities of a growing ESG market while mitigating sustainability risk. This approach allows
to integrate elements that may not be considered in the traditional financial analysis. The Group’s insurance companies
that use this screening invest in issuers or projects selected also for their positive ESG performance compared to their
peers (sector, geographical area, etc.) with a best-in-class, best-in-universe and/or best-effort approach deriving from the
ESG analysis.
Investments with sustainable characteristics
The Group promotes, for the various asset classes, specific investment strategies aimed at supporting economic activities
with sustainability characteristics capable of creating long-term value not only for investors but also for society as a whole.
• Investments in green, social and sustainable bonds
Investments in green, social and sustainable bonds finance projects and activities having a positive impact on the
environment or on society.
Strengthened by the achievement and surpassing of the target set between 2018 and 2021, the Group’s commitment
has been renewed in 2021 with a new target: € 8.5 - € 9.5 billion of new green, social and sustainable investments by
2025. The target has been defined in relation to net investments in green, social, sustainability-linked bonds, issued
by corporates or governments, that meet the reference market standards, namely ICMA (International Capital Market
Association) principles, selected according to an internal methodology (screening) defined by the Group with the support
of Generali Insurance Asset Management (GIAM)
35
and applied to insurance companies’ assets managed by GIAM itself,
whose main purpose is to assess the robustness of the sustainability framework of these bond issues and the level of
transparency towards the market, as well as to monitor the activities that are financed through these investments.
This approach allows for a greater degree of awareness in relation to this type of investments and aims to exclude
issues that may present potential critical situations with respect to the ESG profile of the framework, as well as that of
the issuer itself.
35. On 1 January 2024, the company was renamed Generali Asset Management SGR, following the merger of Generali Insurance Asset Management SGR and Generali Investments Partners
SGR.
We, Generali
47
The Generali Group considers the increasing importance of analysing the positive impact on society and the environment
generated by such investments.
To this end, during 2023, the Group analyzed
36
the information published by the issuers in which it invests and estimated the
positive impact generated on society and the environment through its investments in green, social, and sustainable bonds.
With reference to investments made in the last three years (from 2021 to 2023
37
) and contributing to the achievement of the
target set for 2025, the Group mainly financed projects related to renewable energy, green transportation, and green buildings,
which contributed to:
• generating 4 mln/MWh of renewable energy;
• avoiding 15 MtCO
2
of greenhouse gas emissions;
• saving 0.8 mln/MWh of energy.
Investments allocation towards projects (*)
(*) Classification of projects according to the Green and Social Bond Principles of the International Capital Market Association (ICMA).
Considering the insurance companies’ assets managed by GIAM, the Group’s total exposure to green, social and
sustainable bond investments amounts to € 16.1 billion (nominal value) at the end of 2023. Less than € 1 million of these
debt instruments can be attributable to sustainability-liked bonds, classified mainly in the item Financial assets at fair value
through other comprehensive income.
New green and sustainable investments
€ 3,399 mln
+6.6%
Green, social and sustainable investments contribute to mainly financing projects and initiatives for the development of
renewable energies and energy efficiency, but also projects linked to transport solutions with low environmental impact
and green buildings. At the end of 2023, the cumulative figure for new green and sustainable investments was equal to €
9,126 million, an amount that positions us well in achieving the upper band of the target.
The progressive growth of investments in these instruments has been accompanied by their increasing penetration,
especially green bonds, in the primary market of the Eurozone, particularly in certain sectors and segments that present
a risk-return profile particularly suited to the needs of an insurance group.
• Real estate investments with high-level sustainability certifications
Generali is a major investor in real estate assets through the dedicated Group asset manager, Generali Real Estate (GRE).
GRE integrates ESG factors both into investment choices through dedicated ESG assessments for portfolio assets and
a proprietary methodology for the due diligence during the purchase phase, and into the maintenance and management
of portfolio assets and activities.
36. Using data and methodologies of the provider Nasdaq (Nasdaq Sustainable Bond Network - www.nasdaq.com/green-bonds-disclaimer).
37. The positive impact was calculated on the bonds covered by the data provider used for this exercise (Nasdaq) and only on the section of the investments already allocated to the different
projects. As a consequence, the positive impact has been calculated on around 77% of the net new investments for the period from 2021 to 2023.
NFS
Renewable energy
22%
Green buildings
15%
Clean transportation
16%
Energy efficiency
8%
Access to essential services
11%
Employment generation, also through the potential effect
of SME financing and microfinance
6%
Eco-efficient and/or circular economy adapted products
4%
Other
18%
31/12/2021 31/12/2022 31/12/2023
2,537
3,189
3,399
New green and sustainable investments (€ mln, nominal value)
Annual Integrated Report and Consolidated Financial Statements 2023
48
Generali Group
NFS
Investment in renewable energies in France
Infranity signed a partnership - with equity participation - in Groupe IEL, Initiatives et Energies Locales, specialized in wind and
solar photovoltaics farms. Thanks to renewable energy generation, such investments contribute to SDGs 7, 9, and 13, as they
support climate change mitigation by avoiding CO
2
emissions. Founded in 2004, the IEL Group is the leading independent
producer of renewable energies in Western France. It designs, builds, finances, and operates ground-mounted wind and solar
farms, and is also involved in the turnkey installation of rooftop solar power plants. The Group currently has a portfolio of 160
MW in operation and construction, and aims at developing an additional capacity of approximately 500 MW by 2030. Infranity’s
financing directly contributes to the deployment of IEL’s portfolio and reinforces its role in financing the energy transition in
Europe.
At the end of 2023, GRE owns € 21.2 billion
38
of real estate assets (over 65% of its total Assets Under Management)
with external sustainability certifications (e.g. BREEAM, LEED
39
) or internal sustainability assessments, of which 53% of
properties (€ 11.3 billion) holds high-level external certifications
40
.
Various projects have also been launched to meet the high market demand for the certification and benchmarking of
funds (Global Real Estate Sustainability Benchmark - GRESB - and SRI label
41
) and to comply with European legislation
(for example, SFDR and EU Taxonomy Regulation) in terms of integration and disclosure of ESG criteria.
For the management of the real estate assets in its portfolio, GRE is increasing the use of the so-called green leases,
namely lease agreements that include additional clauses that provide for the management and improvement of the
environmental performance of a building by both the landlord and the tenant. Through these types of agreements,
GRE ensures the integration of key ESG metrics into commercial lease agreements, in order to engage with tenants
for a sustainable partnership that benefits all parties and to meet demand for data analytics and disclosure. Similarly,
the Tenant Survey helps GRE understand the needs and current situation of tenants and improve relationships and
communication with them. Since 2021, GRE conducts a yearly digital analysis of its international portfolio, with increasing
numbers of lease agreements (over 2,000), including questions on sustainability and innovation.
The founding principles for the responsible management of our real estate investments are contained in the public
document Responsible Property Investment Guidelines by GRE.
www.generalirealestate.com/sustainability
• Sustainable infrastructure investments
The infrastructure sector plays a key role in the process of ecological and social transition. Generali is a major investor
in infrastructure assets, both as a financier (debt) and as a shareholder (equity) in relation to green and sustainable
infrastructure projects.
In the field of financing infrastructure projects, Generali operates predominantly through two specialized Group asset
managers, Infranity and Sosteneo.
Infranity developed an investment process able to select projects that can maximize the potential for positive impact
on the economy and society of these investments, in order to combine financial and sustainability performance. The
infrastructure projects in which the Group invests through Infranity belong to sectors with the potential to contribute to
clear social and environmental objectives, such as the development of renewable energies, rail transport, digitalization
and environmental services. A particular focus is given to the Sustainable Development Goals (SDGs) of the United
Nations that can be effectively addressed through the infrastructural asset classes:
• sustainable and resilient infrastructure (SDG 9);
• energetic transition (through climate action), sustainable mobility, efficient waste and water management (SDGs 6, 7,
11, 12, 13);
• social progress and inclusive economies, through investments in digital transformation and accessibility and investments
in social infrastructure in the health and education sectors (SDGs 3, 4, 10, 11).
38. The figure refers to investments made on behalf of the Group’s insurance companies and is expressed in market value and includes buildings held for direct use.
39. BREEAM and LEED certifications set the global benchmark for best practices in the design, construction and management of sustainable buildings.
40. The high-level certifications are: BREEAM Very Good or higher; LEED Gold or higher; the respective levels of other local certifications (e.g. HQE, DGNB).
41. GRESB is the most accredited global rating system for ESG benchmarking and reporting of real estate funds; SRI label is the certification created in 2016 by the French Ministry of Economy
and Finance, which aims at identifying real estate investment funds with measurable and concrete results, thanks to a proven socially responsible investment methodology. For details:
www.lelabelisr.fr
Following the enactment of the SFDR, Infranity has defined what can be considered a sustainable investment for its
portfolios. To qualify as sustainable, an infrastructure asset must contribute to an environmental or social objective,
as demonstrated by its contribution to the Sustainable Development Goals (SDGs), while exhibiting good governance
We, Generali
49
NFS
Active ownership
Through voting at shareholders’ meetings and engaging in dialogues with investee companies, the Group’s objective is
to exert an influence on the business conduct and accountability of companies concerning environmental, governance,
and social matters in order to contribute to reaching the sustainability strategic objectives, but also monitor and manage
sustainability-related risks connected to the investments.
The core values of the Generali Group, including the objectives linked to sustainability and the related public commitments
taken
43
, are integrated in the Group’s voting policies and in the dialogue plans and programs with investee companies.
During 2023, we have been seeking and/or maintaining dialogues with 64 investee companies, collectively representing a
substantial value of financial instruments in the insurance portfolios equal to € 16.1 billion, accounting for approximately 10%
of total corporate assets under management.
In respect to the exercise of voting rights, resolutions were voted in more than 92% of the meetings, without making
distinctions based on the subject of the vote or the size of the shareholding in the issuers; the detailed metrics are the
following:
Electricity storage projects - United Kingdom
Sosteneo invested in two battery energy storage system projects (BESS) in the United Kingdom: Richborough Energy Park
(REP) and Sheaf Energy Park (SHEAF). Together, the projects total around 350 MW/470 MWh of capacity.
The UK batteries directly contribute to the country’s decarbonisation strategy by filling the “intermittency gap”, helping to
optimise and integrate more intermittent wind generation into the grid as the UK government pursues its ambitious target of
increasing offshore wind capacity from around today’s 14 GW to 50 GW by 2030. This can only be achieved if the grid operator
has sufficient energy storage capacity to be able to handle this intermittency and the disruption it would cause. In conclusion,
investments in storage are preparatory to the possibility of having more renewable energy in the electricity system.
Both projects involve the storage of electricity, which - under the EU Taxonomy - provides a positive contribution to climate
change mitigation, and are compliant with the above-mentioned binding elements.
practices and ensuring that it does not significantly harm any other environmental or social objective, as demonstrated
by the analysis carried out in the ESG due diligence phase, based on Infranity’s proprietary ESG scoring methodology.
On the basis of the descripted approach, at the end of 2023, Generali holds € 2.8 billion
42
of sustainable infrastructure
investments managed by Infranity.
The Group’s effort to be a leading player in infrastructure investments linked to the energy transition can also be found in the
ambitions of its new asset manager, Sosteneo Infrastructure Partners (“Sosteneo”), launched in September 2023.
Sosteneo is an asset manager specialized in equity investing in greenfield infrastructure projects - i.e. new construction
projects - related to the energy transition (renewable energies and infrastructure projects ancillary to energy transition). By
investing in greenfield, Sosteneo delivers additionality to the system and makes a direct contribution to the transition from
fossil fuel-based energy towards clean energy.
On top of contributing to the energy transition, Sosteneo ensures that sustainability factors are considered in the selection of
investments and at every stage of the investment process, from the beginning during the due diligence and acquisition, and
into the post-acquisition phase with ongoing monitoring, management, and stakeholder engagement.
The binding elements to which investments must conform are as follows:
• the investments qualify as promoting climate change mitigation at acquisition;
• the investments are subject to the Sustainable Due Diligence prior acquisition, which considers, for instance, the
presence of contractual clauses to facilitate effective measurement of the specific sustainability indicators, as well as
the presence of minimum governance standards such as sound management structures, employee relations, staff
remuneration, and tax compliance;
• no infrastructure investment is involved in violations of UN Global Compact principles and Organisation for Economic
Cooperation and Development (OECD) Guidelines for Multinational Enterprises or exposed to companies active in the
fossil fuel or controversial weapons sectors..
At the end of 2023, Group companies subscribed € 458 million of investment commitments to sustainable infrastructure
projects through Sosteneo.
d.
42. The figure refers to investments made on behalf of the Group’s insurance companies. It is expressed in market value and includes buildings held for direct use.
43. For example, the UN Global Compact, the UN Principles for Responsible Investors, and the UN-convened Net-Zero Asset Owner Alliance.
Annual Integrated Report and Consolidated Financial Statements 2023
50
Generali Group
NFS
Shareholders’ meetings attended
44
1,599
-3.0%
Resolutions voted
44
20,655
-2.8%
Against votes
44
12%
+1.0 p.p.
Lastly, over the course of 2023, we undertook significant outreach initiatives in collaboration with our networks, aiming to
influence standard setters, policymakers, and other stakeholders. These efforts included open letters directed to investee
companies and policymakers, drafting of policies, and collaborations with institutes of higher education.
www.generali.com/sustainability/responsible-investor/sustainability-into-investments for
further information on active ownership and the Group Active Ownership Report 2023
Climate risk and proprietary investments decarbonisation
In line with our commitment to tackling climate change by decarbonising the investment portfolio as outlined in the three-year
Lifetime Partner 24: Driving Growth strategy, active ownership activities in 2023 focused on encouraging the companies we invest
in to align with the Group’s decarbonisation objectives and to carefully monitor their progress.
Environmental risk and impact on biodiversity
In order to monitor and manage potential negative impacts generated by the investments on the environment, to preserve biodiversity
in investments, the Generali Group, in addition to the negative screening strategy, adopts active ownership strategies towards the
companies in which it invests. This is done to encourage them to reduce their negative environmental impact and to implement
measures to monitor and manage biodiversity risks. In 2023, we focused on identifying companies involved in biodiversity disputes in
recent years. We contacted 11 of the most significant companies in our portfolios and initiated a dialogue with 7 of them, addressing
sustainability strategies and assessing the alignment of CEO remuneration incentives with environmental goals.
In addition to individual dialogues, we actively participated in collective initiatives such as Nature Action 100 and PRI Spring, facilitating
the exchange of efforts, knowledge, and best practices with other investors and stakeholders.
Furthermore, over the course of 2023, we supported all 6 shareholder resolutions encountered, particularly those focused on the
disclosure regarding the use of plastic packaging, on the demand for virgin plastic, and on sustainable supply chain practices.
Gender equality
Generali’s commitment to gender equality, as outlined in the Lifetime Partner 24: Driving Growth plan, is focused on achieving a
40% representation of women in key roles by 2024 and addressing the gender pay gap.
In line with the Group’s strategic approach, Generali conducted a thorough review of its investment portfolio in 2022, pinpointing
companies with shortcomings in gender equality. The focus was specifically on the gender ratio of boards of directors and
management, as well as gender pay practices. A priority list of 15 companies was identified and targeted with letters, initiating
a dialogue to encourage positive change. Through ongoing engagement, Generali is actively monitoring these companies’
transparency, policies, commitments, and diversity targets. Notably, Generali initiated dialogues with 12 of these companies,
actively seeking responses from those that initially did not engage. Additionally, as an escalation measure, Generali reserves the
right to express disappointment through the exercise of its voting rights. In 2023 alone, 80 votes have been cast against directors
(new nominations or renewals) based on voting principles (updated in January 2023) that specifically target companies with a poor
gender ratio on their boards of directors.
44. The meetings related to direct investments of insurance companies were 1,101.
The indicators refer to the Group’s assets managed by the following asset managers: Generali Insurance Asset Management (GIAM), Generali Investments Partners (GIP) SGR, Generali
Investments CEE (GICEE), Generali Investments, družba za upravljanje, d.o.o. (GI Slovenia).
We, Generali
51
NFS
Selection of asset managers and funds
We invest not only through dedicated mandates but also through investment funds managed by asset managers that are
either internal or external to the Group. In this case, the levers available to the Group to integrate ESG criteria into investments
are different and linked to the policies and methodologies already defined by the fund and the selected asset manager. The
main lever available to the Group is therefore the introduction of an ESG assessment during the screening and due diligence
processes, carried out during the selection of the asset manager/fund, and complemented with an engagement on any key
issues identified.
The Group defined a set of screening criteria in order to evaluate the asset manager’s ESG strategy and the alignment
with some of the commitments made by the Group, such as restrictions on thermal coal, significant controversies and
unconventional weapons, transparency and commitment to fighting climate change.
Constant dialogue with the asset managers of the funds in which we invest is a key element that allows us to illustrate
and promote the Group’s needs on sustainability integration towards them, especially when the assessment of the asset
managers’ policies identifies some issues which, while not constituting an element of divestment, may represent areas for
improvement.
Covid-19: commitment to a sustainable economic recovery
The commitment of a large Group such as Generali and the help it can provide are even more evident in times of crisis. The
social and economic crisis triggered by the Covid-19 pandemic emphasised the need to strengthen and consolidate the
European model from a healthcare, economic and social perspective. To contribute to repairing the economic and social
damage caused by the pandemic, the European Commission, the European Parliament and EU leaders have agreed on
a recovery plan that will help the EU to emerge from the crisis and lay the foundations for a more modern and sustainable
economy.
Generali has undertaken to actively contribute to this recovery: we have joined the European Green Recovery Alliance,
launched on the initiative of the Chair of the Environment Committee at the European Parliament, which is based on the belief
that the recovery will be an opportunity to rethink society and to develop a new economic model for Europe that is resilient,
focused on the protection of the individual, sovereign and inclusive, in which the financial goals and the needs of the planet
are aligned. A sustainable recovery is crucial to recreate the economic system damaged by the crisis on a less fragile and
socially responsible basis, able to better withstand future shocks.
In 2020 we launched Fenice 190, a € 3.5 billion investment plan to support the recovery of the European economies
impacted by Covid-19, starting from Italy, France and Germany and then to target all the European countries in which the
Group operates
45
.
The program aims to finance, through debt and equity instruments, infrastructure, innovation and digitalization projects,
support for SMEs, green housing, health facilities and education.
The investment program therefore pursues both environmental (e.g. energy requalification of existing spaces and
infrastructures, reduction of polluting emissions, development of renewable energies) and social (e.g. improvement of people’s
quality of life, through the support of companies that promote socially responsible labour policies and fairer employment
contracts as well as urban redevelopment initiatives for living spaces) objectives.
The investment plan is implemented through various investment vehicles:
• extraordinary initiatives and direct investments in funds, launched in 2020 to immediately deal with the effects of the crisis
upon the outbreak of the pandemic, through investments in funds with investment policies aligned with the program’s
objectives managed by both Group and external companies, for a total amount of commitments undertaken by Group
companies equal to € 1,616 million at the end of 2023;;
• through the multi-segment fund of funds incorporated under the Luxembourg law, Fenice 190, established in 2021 and
open to both Group companies and third-party investors, managed by Generali Investments Partners (GIP) SGR
46
, for a
total amount of commitments undertaken by Group companies equal to € 1,050 million at the end of 2023.
Fenice 190 (2020-2023)
€ 2,666 mln
a.
b.
INDIRECT INVESTMENTS02
45. Residually, investments in geographic areas outside of European countries or where the Group does not perform significant insurance activities are included..
46. On 1 January 2024, the company was renamed Generali Asset Management SGR, following the merger of Generali Insurance Asset Management SGR and Generali Investments Partners SGR.
Annual Integrated Report and Consolidated Financial Statements 2023
52
Generali Group
NFS
Exclusion from investments of activities harmful to the environment
The fight against climate change requires a holistic approach which aims not only at financing activities offering solutions and
at supporting companies committed to the decarbonisation of their own activity and business model, but also at sending
important signals to the market and to companies regarding the financing of activities that harm the climate and are in strong
opposition to the fight against climate change.
In particular, within the activities included in the negative screening, some sectors have been specifically identified due to
their negative impact on climate change. These activities are related to coal and unconventional hydrocarbons.
www.generali.com/sustainability/our-commitment-to-the-environment-and-climate for further
details included in the Generali Group Strategy on Climate Change - technical note
1. Coal sector exclusion
Thermal coal is the most polluting source of energy available, emitting twice the level of greenhouse gas emissions
compared to natural gas for electricity generation. With such levels of carbon intensity, coal ranks among the main
culprits of global pollution and the greatest enemy in the fight against climate change.
Since 2018, the Group has adopted a policy for the exclusion of thermal coal from its investments, which is continuously
updated. The thresholds defined for excluding companies active in the extraction and production of electricity from coal
have become increasingly stringent over the years, showing how the fight against the use of coal is a constant struggle
that requires growing ambition. For companies with an exposure marginally above the defined thresholds, we carry out
a qualitative analysis aimed at assessing not only their current exposure but also their coal exit strategies. Companies
whose analysis demonstrates a clear coal exit strategy aligned with the Group’s objectives continue to be investable.
On top of the exclusion of thermal coal companies from our investments, the Group’s exclusion policy aims at a gradual
but complete divestment of any activity and/or investment in issuers included in the sector (phase-out) by 2030 for
OECD countries and by 2040 for the rest of the world, contributing in this way to the limitation of global warming to
1.5°C.
a.
Climate change is counted among the most important challenges that the global society is facing. Following an increase of the
average temperature by over 1°C compared to the pre-industrial era, the current mix of consumption and production is consistent
with a temperature increase trend of 3°C
47
compared to the pre-industrial era.
A temperature increase exceeding 3°C would have a disastrous impact on the environment and the populations, starting with those
living in the areas most prone to extreme events. This knock-on effect would also have a major financial impact on the economy
and on individual companies, which will have to manage the transition to a low-carbon world as well as extreme weather events
resulting from rising temperatures. As for sustainability in a broad sense, fighting climate change is part of our moral duties for a more
sustainable future and our risk management duties towards our stakeholders.
In December 2023, the United Nations Climate Change Conference (UN COP 28) was held in Dubai. The conference highlighted that
governments’ collective commitments are not yet sufficient to address the climate challenge. Despite having signed a compromise
agreement that expressly states the need for an ecological transition away from fossil fuels in energy systems in a fair way, in order
to reach the goal of carbon neutrality by 2050, the fight against climate change needs to be addressed with greater determination,
also in consideration of this historical moment, where the goal of decarbonisation faces the challenge of an unexpected energy crisis,
triggered by Russia’s invasion of Ukraine.
In this growing uncertainty, it is crucial that institutional investors such as the Generali Group support investment choices capable of
making a clear and tangible contribution to the long-term objective of limiting the average global temperature rise to 1.5°C.
In line with this commitment, also in 2023 the Group updated its Climate Change Strategy by focusing on more stringent criteria
for the exclusion of activities harmful to the climate (mainly thermal coal) and on increasing ambitions for the financing of activities
offering solutions for the reduction of greenhouse gas emissions. The existing restrictions on tar sands were also integrated with
restrictions on other hydrocarbons extracted through fracking and extraction in the Arctic, a particularly sensitive area in terms of
biodiversity. Compared to the previous version, the latest update has included new restrictions regarding unlisted investments in the
infrastructure asset class of thermal coal and unconventional oil and gas assets.
The Group’s commitment to the fight against climate change is expressed in several investment strategies linked to:
a. exclusion from investments of activities harmful to the environment;
b. our commitment to investment decarbonisation;
c. investments in activities that are drivers of change;
d. integration in the fight to climate change in active ownership policies and practices;
e. inclusion of decarbonisation specific requirements in the criteria of asset manager and fund selection.
CLIMATE CHANGE03
47. Emissions Gap Report 2023, United Nations Environmental Program.
We, Generali
53
NFS
2. Unconventional oil and gas exclusion
The use of gas and oil represents one of the greatest contributors to climate change, calling for reflection on this sector
of activity. In particular, unconventional oil and gas are among the most carbon-intensive fossil fuels, due to methane
emissions during the extraction and/or due to a particularly energy-intensive extraction process. Their negative impact
on the environment is much wider, especially due to water consumption and to the negative impact on local biodiversity.
The Group has committed to the reduction of its exposure to unconventional oil and gas in its exploration and production
(upstream) activities and some specific midstream activities.
Since 2019, the Group has not made any new investments in projects and issuers related to the exploration and production
of oil from tar sands. Starting from 1 January 2023, the Group extends the exclusion policy also to issuers involved in the
exploration and production of gas and oil extracted through fracking (shale oil, shale gas, tight oil, tight gas) and to issuers
conducting onshore and offshore exploration and production activities within the area bounded by the Arctic Circle.
Our commitment to decarbonisation of the investment portfolio
The adoption of a climate strategy is not limited to exclusion activities; it requires a holistic commitment capable of
understanding the transition and favoring change.
In 2020, as a member of the Net-Zero Asset Owner Alliance (NZAOA), the Group committed to reducing the net greenhouse
gas emissions of its portfolios to zero by 2050, in order to limit the global temperature rise to 1.5°C. This goal will be pursued
by working closely with the companies in the portfolio and with regulatory and government bodies in order to push for the
adoption of practices and regulations aligned with the commitments of the Paris Agreement, also integrating the strategy
with targeted investing.
In accordance with the principles of the NZAOA, the Group set intermediate targets for the decarbonisation of the portfolio
by 2024 that reflect our continuous commitment to the achievement of this long-term goal:
• 25% reduction compared to 2019 in the carbon footprint of direct investments in listed equities and corporate bonds, also
through dialogue with 20 carbon-intensive investees in our portfolio;
• alignment of at least 30% of the real estate portfolio with the global warming trajectory of 1.5°C.
The ultimate goal of our commitment in the NZAOA is to decarbonise investments in all the asset classes in which the Group
is present. However, this is a long-term journey that has to face the fact that, for some asset classes, the methodologies are
yet to be defined. We are well aware that our strategy will evolve progressively and, as of today, we aim at decarbonising
investments with a major focus on the following three asset classes.
1. Direct investments in listed equities and corporate bonds
As a result of the commitments made in this area, the Group is gradually integrating the carbon footprint in its investment
and active shareholding choices, mainly through dialogue with the most carbon-intensive issuers of the portfolio, but also
through investment choices in favor of issuers mainly committed to the energy transition.
The carbon footprint of a portfolio can be measured by using several metrics with different calculation methodologies.
With reference to direct investment portfolio of the Group’s insurance companies in listed equities and corporate bonds,
we report below the metrics monitored by the Group with the respective performance.
b.
48. To calculate the carbon footprint indicators, the Group relies on MSCI data. Data related to CO
2
emissions and carbon intensity (EVIC and sales) of the companies in the portfolio refer to the last
available data at the moment of the calculation of carbon footprint for this reporting (usually January/February of each year) and therefore mainly refer to the previous year as the new data are
available in the second semester of the year.
49. 2020 indicators have been recalculated following a change in the methodology and data provider.
50. Starting from year-end 2022, the portfolio of Generali China Life Insurance Co. Ltd. was included in the scope. The data for previous years have not been restated given the low materiality of the
carbon footprint of the years prior to 2022, mainly due to a limited coverage of data available from external data providers.
51. The coverage presented in the table refers to the metrics carbon intensity (EVIC) and absolute emissions. The coverage for carbon intensity (sales) is 85% for the years 2019 and 2021, 87% for
the year 2020, 88% for the year 2022, and 92% for the year 2023. Our ambition and commitment is to increase the part of our investment portfolio covered by the carbon footprint assessment
in order to provide increasingly precise data.
Perimeter and metrics
48
31/12/2019 31/12/2020
49
31/12/2021 31/12/2022 31/12/2023 2019-2023
change
Direct investments in listed equities and corporate
bonds (€ bln)
117.5 111.5 110.4 91 92 -21.7%
Absolute emissions
48
(mln tCO
2
e) 15.4 12.0 10.4 6.8 6.8 -55.8%
Carbon intensity (EVIC)
48
(tCO
2
e/€ mln invested) 182 145 128 100
50
98 -46.2%
Carbon intensity (sales)
48
(tCO
2
e/€ mln sales) 277 243 241 188 147 -46.9%
Coverage
51
71% 74% 73% 75% 75% 4 p.p.
Annual Integrated Report and Consolidated Financial Statements 2023
54
Generali Group
NFS
In line with this long-term goal and the commitments made upon our entry into the NZAOA, the Group set a reduction
target based on the carbon intensity (EVIC) measured as tonnes of CO
2
equivalent in relation to the Enterprise Value
Including Cash (EVIC) of each issuer. The commitment is to reduce this metric of our investment portfolio by 25% between
year-end 2019 and year-end 2024. This target covers the direct general account investments of the Group’s insurance
companies in listed equities and corporate bonds.
The carbon intensity (EVIC) decreased by 46.2% between year-end 2019 and year-end 2023, moving from 182 tCO
2
e/€ mln
invested to 98 tCO
2
e/€ mln invested.
This outcome has been achieved through a focused strategy, centered on investing in companies with clear and robust
decarbonisation strategies. However, in the past year, there was a slowdown in the decarbonisation of our portfolio, which
can be attributed to various factors, including the war in Ukraine and the subsequent energy crisis. This situation led to
the reopening of some coal-fired power plants in countries where the Group is exposed.
In terms of the impact on the Group’s carbon footprint, key sectors such as Utilities, Materials, and Energy collectively
represent 87% of our total investments. These sectors, being particularly carbon-intensive, play a central role in the
energy transition. The careful selection of companies in which we invest not only allows us to convey towards them clear
messages in terms of sustainability, but also contributes to mitigating the impact of our investments on climate change.
Direct investments in government bonds
For the Group, investments in government bonds represent a fundamental component of the overall investment strategy.
Consistently with the commitments made for a gradual decarbonisation of proprietary investments, the Group started
tracking the carbon footprint of its government bond investments, aimed at a gradual integration of these metrics
and evaluations into investment decisions. Although measuring CO
2
emissions for this investment category still faces
limitations mainly tied to data availability and updates, we believe it’s crucial to enhance transparency for stakeholders,
recognizing that metrics might evolve over time.
Investing in a country’s government bonds means financing its development policies, including its strategy to combat
climate change: accurate monitoring of various countries’ performances is the starting point for defining a strategy aimed
at limiting global warming to 1.5°C.
Below is the carbon footprint of our sovereign bond portfolio
52
, based on the emissions produced within a specific country
(so-called production-based approach).
Carbon footprint of investment portfolio
(tCO
2
e/€ mln invested)
31/12/2019 31/12/2020 31/12/2021 31/12/2022 31/12/2023
182
145
128
100
98
-46.2%
Carbon footprint of investment portfolio (EVIC)
98 tCO
2
e/€ mln invested
-2.0%
Carbon intensity (EVIC) for sector
Sectors
Materials 37.5%
Utilities 32.2%
Energy 17.1%
Industrials 5.5%
Communication Services 2.3%
Consumer Discretionary 2.2%
Consumer Staples 1.4%
Health Care 0.6%
Real Estate 0.4%
Financials 0.4%
Information Technology 0.4%
52. The source for the carbon footprint is MSCI, who relies on data from the World Bank for GDP information and performs estimations on the level of emissions.
We, Generali
55
NFS
A dedicated improvement plan for each real estate asset
The objective of aligning the total portfolio with the 1.5°C trajectory is an ambitious long-term plan that requires to understand
the peculiarities of each building and to define an improvement plan. Within this scope, since 2022 an energy efficiency plan
for the individual properties was defined also through the use of techniques of data analytics, with the aim of identifying the
possible improvement actions and potential costs for the alignment of these properties with the decarbonisation target set for
2050 and with the Group’s sustainability ambitions. This energy efficiency plan currently consists of € 24 billion and is annually
presented and updated on the basis of the collected and estimated data. The suggested actions, which consider the main
ways to reduce emissions and increase energy efficiency, range from renovations (light or heavy) to system upgrades, making
changes to the energy mix and involving the tenants.
GHG emissions of GRE portfolio
190,824 tCO
2
e
-35.9%
GHG intensity of GRE portfolio
29.7 KgCO
2
e/m
2
-26.3%
At the end of 2023
54
, the level of greenhouse gas emissions of our real estate assets is 190,824 tCO
2
e, equivalent to 29.7
KgCO
2
e/m
2
of carbon intensity. The data on real estate CO
2
e emissions are subject to continuous enhancements, due to
coverage increase and improvements in the benchmarking methodologies used for CO
2
e data estimation. The underlying
data for such calculation derives from reported data, when available, or estimated data in other cases.
Since the availability of data related to real estate can often be a challenge, in order to accurately measure the initial levels of
equivalent CO
2
emissions and the concomitant achievement of decarbonisation objectives, in 2019 GRE launched a data
analytics project, which currently covers around 400 buildings in 10 countries throughout Europe, representing more than
80% of total Assets Under Management.
For these assets, the consumption data of existing buildings are collected and centralised on a digital platform, which
automatically calculates greenhouse gas emissions and monitors their development.
2. Real estate portfolio
The Group is committed to the gradual alignment of its portfolio of real estate assets with the 1.5°C scenario, according
to the Carbon Risk Real Estate Monitor
53
(CRREM) methodology. With regard to these assets, managed by the Group’s
asset manager, Generali Real Estate (GRE), we committed, in line with the NZAOA initiative, to the development of a
strategy for the decarbonisation of our assets by 2050, which envisages the gradual alignment of the real estate portfolio
with the emissions intensity targets defined by the CRREM model. This long-term commitment is supported by the
intermediate target of aligning at least 30% of the real estate portfolio with the global warming trajectory of 1.5°C by
2024 and is a natural consequence of the efforts already made by the Group over several years for a more sustainable
management of its real estate assets.
GRE portfolio aligned to the CRREM pathway
71.4%
At the end of 2023
54
, 71.4% of the portfolio is aligned with the CRREM decarbonisation pathway, allowing us to be well
positioned in relation to the achievement of the target. Nevertheless, the alignment according to CRREM envisages
carbon intensity levels that are more ambitious over the time, therefore a building currently aligned could be no more
aligned in the next years.
Given the dynamism of the real estate portfolio, the Group monitors its portfolio and activates all applicable levers to
guarantee the achievement of the target by 2024. The aim of the Group is to progressively increase this percentage in
order to align almost all its assets to the 1.5°C trajectory.
53. A European Union-funded research project providing the real estate industry with science-based pathways for carbon emissions reduction in buildings.
54. The data is partly based on estimates that may vary over time depending on increased availability of actual data received at various times throughout the year.
Perimeter (*) and metrics
31/12/2023
Direct investments in sovereign bonds (€ bln) 94.1
Absolute emissions (production-based approach) - PPP GDP (mln tCO
2
e) 12.9
Carbon intensity (production-based approach) - PPP GDP (tCO
2
e/€ mln invested) 136.6
Coverage
99.9%
(*) The perimeter includes sovereign bonds only. Sub-sovereigns, supra-nationals, and municipals are excluded.
Annual Integrated Report and Consolidated Financial Statements 2023
56
Generali Group
NFS
3. Decarbonisation of infrastructure investments
The Group is a relevant investor in infrastructure projects. Such investments are particularly significant when considering
their contribution to the fight against climate change. Indeed, through the construction of new infrastructure with a long
life cycle, they can create conditions to better manage emissions in the next decades. Investments in clean energy and
green infrastructure will reduce the level of greenhouse gas emissions in the coming years, while investment choices in
heavily polluting technologies will generate negative impacts on the climate and the environment, putting the long-term
target of limiting the temperature increase to 1.5°C at risk.
We invest in infrastructure projects mainly through Infranity, the Group’s asset manager dedicated to this asset class. In
line with the Group’s commitment to limiting global warming to 1.5°C, Infranity joined the Net-Zero Asset Management
Initiative with the objective of reducing its net greenhouse gas emissions to zero by 2050.
Investments in assets as driver of change
The Group invests in financial products aimed at directly and effectively supporting the fight against climate change and at
creating a positive impact on society and the environment in general.
For this purpose, in 2021 we defined the new green, social and sustainable bond investments target.
Our strategy, Responsible investor, p. 46
Integration in the fight to climate change in active ownership policies and practices
In line with our dedication to decarbonise our investment portfolio, in 2023 our active ownership activities focused on
encouraging investee companies to align with the Group’s decarbonisation objectives and closely monitor their progress.
With regard to our ongoing dialogue initiatives with investee companies, we proceeded with the implementation of the
five-year commitment we made in 2021 with the Net-Zero Asset Owner Alliance. This commitment involves engaging
in constructive discussions with 20 investee companies whose net greenhouse gas emissions significantly influence our
portfolios. So far, we have reached 27 investee companies with formal communications. We are dialoguing with 22 of them
directly or through our delegated asset manager (9 individually and 13 collectively with other institutional investors and asset
owners) and we are monitoring companies that have not responded to us.
In respect to the exercise of our voting rights, in line with the previous years, we have consistently backed proposals that
meet our criteria while expressing concerns about climate plans that lack the necessary ambition, with particular focus to
operating in highly polluting sectors (such as oil and gas). Over the course of 2023, we voted 87 climate proposals. We
voted 12 climate plans proposed by the management (Say on Climate), opposing to 4 that did not meet our expectations.
We supported 71 out of 75 shareholder proposals on climate reporting, climate lobbying, adoption of greenhouse emission
targets, fossil fuel lending and underwriting, and just transition.
With regard to outreach initiatives in 2023, our efforts included joint open letters directed at investee companies to consistently
include climate change resolutions on the agendas of their shareholders’ meetings and the contribution to the drafting of
a Net-Zero Asset Owner Alliance position paper detailing our expectations of oil and gas companies and carbon-intensive
sectors.
Inclusion of decarbonisation specific requirements in the criteria
of asset manager and fund selection
The Group included, among the asset and fund managers screening criteria, specific requirements related to decarbonisation,
among which information related to one or more metrics of GHG emissions of the target funds and how climate change
considerations (including portfolio decarbonisation) are integrated into the investment strategy.
Our strategy, Responsible investor, p. 51 for further information on the criteria of asset manager and fund selection
c.
d.
e.
Generali awarded at the ESG Investment Leader Awards
Generali’s commitment to sustainability and corporate social responsibility was recognised at the ESG Investment Leader Awards
ceremony held in London on 2 November 2023.
The Group was awarded in the “Best Asset Owner Net-Zero Strategy of the Year” and “Best Asset Owner Social Responsibility,
Diversity, and Inclusion Strategy of the Year” categories.
We, Generali
57
NFS
Assets managed promoting environmental and social characteristics or
with sustainable investment objectives
In line with the Group’s ambition, the Asset & Wealth Management (A&WM) business unit actively promotes the integration of
sustainability factors into its investment decisions.
Following the entry into force of Regulation EU 2019/2088 on sustainability-related disclosures in the financial services sector
(Sustainable Finance Disclosure Regulation - SFDR), financial products were evaluated based on their ESG profile and their ability to
promote environmental and social characteristics, or a combination of those characteristics, provided that the companies in which
the investments are made follow good governance practices (ex art. 8 SFDR), or to pursue sustainable investment as their objective
(ex art. 9 SFDR).
The asset managers of the A&WM business unit are progressively strengthening the integration of sustainability factors into portfolio
management services, also through the launch of financial products disclosed ex art. 8 SFDR or ex art. 9 SFDR.
As of 31 December 2023, the Assets Under Management (AUM) of the Group’s multi-affiliate ecosystem, disclosed in accordance
with art. 8 and 9 of the SFDR Regulation, totaled € 147.8 billion (34.1% of total Assets Under Management), compared to a value of
€ 85.2 billion as of 31 December 2022 (20.4% of total Assets Under Management). This increase (+73.4%) reflects both the launch
of new financial products and individual portfolio management services with markedly ESG characteristics, and the transformation
of part of the already existing product and portfolio offering.
Assets managed ex art. 8/9 SFDR
55
€ 147.8 bln
+73.4%
European Taxonomy
The European Union developed an ambitious strategy for sustainable development and the transition to a low-carbon economy, in
line with the objectives of the 2015 Paris Agreement on climate, committing to becoming the first net-zero continent by the end of
2050. To achieve such objectives, the European Union is promoting investments in eco-sustainable activities with the use of both
public and private resources. In this perspective, the European Commission adopted an initial Sustainable Finance Action Plan in
2018, where it defined a strategy for redirecting capital flows towards sustainable investments, in order to achieve a sustainable and
inclusive growth.
In this context, the European Union established a significantly evolving, standardized system of classification of sustainable activities
(known as EU Taxonomy), outlined in Regulation EU 2020/852, Delegated Regulation EU 2021/2139, Delegated Regulation
EU 2022/1214, and Delegated Regulations EU 2023/2485 and 2023/2486, which define the criteria for determining whether
an economic activity can be considered eco-sustainable in order to identify the degree of eco-sustainability of an investment.
Activities that contribute to at least one of the following environmental objectives are considered eco-sustainable:
• climate change mitigation;
• climate change adaptation;
• sustainable use and protection of water and marine resources;
• transition towards a circular economy;
• prevention and control of pollution;
• protection of ecosystems and biodiversity;
provided that they do not cause significant damage to the other objectives (so-called DNSH principle) and that they are carried
out in compliance with minimum safeguards in accordance with the art. 18 of Regulation EU 2020/852.
55. The scope of the indicator refers to assets managed by asset managers belonging to A&WM business unit (excluding the Banca Generali group) including both individual portfolio management
services and collective investment schemes, disclosed in accordance with art. 8 and 9 of the SFDR Regulation.
EU TAXONOMY NFS
With reference to the first category, the award focused on the strategies for integrating CO
2
emissions reduction targets into
investment policies to achieve carbon neutrality by 2050.
In reference to the second category, the award concerned the active ownership initiative that the Group is conducting towards
the companies in which it invests, through dialogue and exercise of voting rights, in order to promote greater gender diversity and
inclusion.
www.generali.com/media/News/2023/Generali-awarded-at-the-ESG-Investment-Leader-Awards
for further information
Annual Integrated Report and Consolidated Financial Statements 2023
58
Generali Group
According to the EU Taxonomy, insurance companies can contribute to EU climate objectives both by developing and offering
insurance coverage to protect against climate change-related perils and by leveraging their role as long-term investors by reorienting
capital flows towards eco-sustainable businesses and activities.
The instrument for the classification of economic activities is complemented by a mandatory disclosure regime for financial and
non-financial undertakings, which provides for the inclusion of specific indicators regarding their contribution to the EU Taxonomy
objectives. In particular, for disclosures relating to 2023, financial undertakings are required to provide for the first time the following
EU Taxonomy alignment indicators in line with art. 7 of Delegated Regulation EU 2021/2178, based on the reporting templates of
Annex X of the same Delegated Regulation limited to the objectives of climate change mitigation and adaptation, as recommended
in the ESMA enforcement priorities of October 2023:
• the alignment indicator relating to non-life insurance economic activities
Aligned non-life insurance
economic activities
3.0%
Our strategy, Responsible insurer, p. 68
• the alignment indicator for the proportion of investments aimed at financing or associated with activities aligned with the EU
Taxonomy
Exposures in economic activities
aligned on the basis of turnover
3.6%
Exposures in economic activities aligned
on the basis of capital expenditure
4.9%
The Group has also considered the provisions of the reporting guidelines and communications published by the European Commission
in December 2021
56
, October 2022, and October 2023
57
. The Group also assessed the draft Commission Notice published on 21
December 2023, and deemed it to be only partly considered for the purposes of this reporting, e.g. the detailed representation of the
premiums to cover climate perils within of multi-risk policies (so-called unbundling, FAQ 67).
The Delegated Regulation EU 2021/2178 also requires the reporting of qualitative information for companies in the financial sector,
in accordance with Annex XI of the same Delegated Regulation.
Exposures to aligned, non-aligned but eligible, and non-eligible economic activities
to the EU Taxonomy
At 31 December 2023 the total assets covered by the EU Taxonomy indicators were calculated as the difference between total assets of
the Group
58
, amounting to € 511,719 million, and exposures to central governments, central banks and supranational issuers (including
cash and cash equivalents), which amounted to € 137,090 million (26.8% of total assets of the Group), as well as the sum of intangible
assets, tangible assets (excluding self-used buildings), insurance activities, other financial activities and other assets, which amounted
to € 32,693 million (6.4% of total assets of the Group). The assets covered by the EU Taxonomy indicators therefore were equal to
€341,937 million or 66.8% of total assets.
The approach adopted for calculating the indicators in 2023 was based on the following activities:
• we conducted the analysis of alignment with the EU Taxonomy on investments where the Group has direct control, in particular
over real estate assets, evaluating, among others, their compliance with the applicable technical screening criteria (activity 7.7.
Acquisition and ownership of properties in Annexes I-II of Delegated Regulation EU 2021/2139);
• the collection of data for alignment with the EU Taxonomy concerned also the non-financial undertakings that are counterparties of
the Group’s direct and indirect investments obliged to publish the Non-Financial Statement (NFS)
59
, using the data relating to the
EU Taxonomy made available by them during 2023
60
and provided by the data provider MSCI. We were thus able to identify the
56. FAQs: How should financial and non-financial undertakings report Taxonomy-eligible economic activities and assets in accordance with the Taxonomy Regulation Article 8 Disclosures Delegated Act?
57. Commission Notice on the interpretation of certain legal provisions of the Disclosures Delegated Act under Article 8 of EU Taxonomy Regulation on the reporting of eligible economic activities and
assets.
58. For reporting purposes pursuant to Delegated Regulation EU 2021/2178, the Group reported performance indicators on balance sheet values, with the exception of real estate investments and
instrumental properties for which the market value was considered, as it is more suitable to represent the value of properties connected to their degree of environmental sustainability. In accordance
with art. 7.1 of Delegated Regulation EU 2021/2178.
59. Undertakings subject to the disclosure obligations set out in Articles 19a and 29a of Directive 2013/34/EU, including subsidiaries of another parent company fulfilling such obligation.
60. It should be noted that the data relating to the eligibility rate and alignment rate on the basis of turnover and capital expenditure published by the Group’s investees refer only to activities in relation
to climate change mitigation and adaptation and do not include the activities in relation to the other four environmental objectives described in EU Delegated Regulation 2023/2486 as they were
not available at the time of drafting this document.
EU TAXONOMY NFS
We, Generali
59
exposures to the specific aligned, non-aligned but eligible, and non eligible economic activities to the EU Taxonomy and described
in Annexes I and II of Delegated Regulation EU 2021/2139
61
;
• since public disclosure on alignment by financial issuers was not available, we collected only eligibility data published in accordance
with art. 10 of Delegated Regulation EU 2021/2178 with reference to the financial undertakings that are counterparties of the
Group’s direct and indirect investments obliged to publish the NFS;
• where possible, we assessed the degree of alignment of indirect investments, using look-through data from the funds.
The aligned exposures totalled € 12,210 million (3.6% of total covered assets) on the basis of turnover and € 16,638 million (4.9%
of total covered assets) on the basis of capital expenditure. The alignment indicators consist of:
• the value of direct and indirect investments aligned with the EU Taxonomy towards non-financial undertakings subject to the
obligation to publish non-financial information, weighted by the share of turnover attributable to economic activities aligned with
the EU Taxonomy of the companies benefiting from the investments for € 8,847 million, or
• the value of direct and indirect investments aligned with the EU Taxonomy towards non-financial undertakings subject to the
obligation to publish non-financial information, weighted by the share of capital expenditure attributable to economic activities
aligned with the EU Taxonomy of the companies benefiting from the investments for € 13,275 million
to which is added the value of real estate and infrastructural investments aligned with the EU Taxonomy for € 3,363 million.
Real estate portfolio
The Group leveraged the property management activities of Generali Real Estate (GRE) to analyze the compliance of properties with
the technical screening criteria defined for activity 7.7 Acquisition and ownership of properties of Annex I-II of Delegated Regulation EU
2021/2139.
We considered among the exposures in economic activities eligible but not aligned with the EU Taxonomy real estate investments
not aligned with the technical screening criteria, mortgage loans guaranteed by residential property and the eligible and non-aligned
share of turnover and capital account communicated by non-financial issuers. Furthermore, the eligibility quota communicated
by financial issuers was classified as eligible but not aligned within the reporting template required by the regulation, since public
disclosure on alignment by financial issuers was not available.
61. It is Delegated Regulation on climate objectives: it supplements Regulation EU 2020/852 of the European Parliament and of the Council, by establishing the technical screening criteria for
determining under which conditions an economic activity qualifies as contributing substantially to climate change mitigation or climate change adaptation and for determining whether that
economic activity causes no significant harm to any of the other environmental objectives.
62. The benchmark is publicly available on Deepki’s website (index-esg.com/) for further details.
Substantial contribution
to climate change
mitigation
The presence of class A energy performance certificates (EPC) was considered or, alternatively, the
inclusion of the property in the first 15% of the national building stock in terms of primary energy
demand, comparing the performance of the property with those of the comparable national building
stock built before 31 December 2020.
To this end, GRE compared property performance to the thresholds defined by property type and
country developed by an external data analytics provider
62
. Furthermore, in the case of a large non-
residential property, the presence of energy performance contracts or automation and control systems
was verified.
Do No Significant Harm
(DNSH principle)
With reference to the assessment of compliance with the principle of not causing significant damage to
the objective of adaptation to climate change (Appendix A of Delegated Regulation EU 2021/2139), the
Group estimated the financial impacts of physical phenomena (flood, storm, hail, and subsidence) on
the value of properties and considering specific climate scenarios (RCP 4.5 and 8.5).
Challenges and opportunities of the market context, p. 26 for information on the Clim@risk model for
assessing the impact of the risk deriving from climate change on the Group’s real estate portfolio
For properties for which a material impact of climate factors was estimated, the Group has identified
the most suitable adaptation measures to reduce such risks.
Minimum safeguard
guarantees
The Group verified compliance with the requirements of the minimum safeguards in carrying out its
activities, with particular reference to companies exercising ownership over properties.
Our strategy, Responsible insurer, p. 68 for further details
EU TAXONOMY NFS
Annual Integrated Report and Consolidated Financial Statements 2023
60
Generali Group
In line with Delegated Regulation EU 2021/2178, we considered among the exposures in economic activities not eligible for the
EU Taxonomy investments in active derivative instruments, cash and cash equivalents (excluding those with central banks) and
investments in undertakings not subject to the obligation to publish non-financial information.
Active derivatives, which amount to € 1.041, represent 0.3% of total covered assets, while cash and cash equivalents (excluding
those with central banks), which amount to € 6.492, represent 1.9% of total covered assets. To date, these exposures cannot be
assessed for eligibility in line with Delegated Regulation EU 2021/2178 and the communication of the European Commission of
October 2022.
With regard to exposures in undertakings not subject to the obligation to publish non-financial information, as an official data source
at community level that allows to identify such companies is not yet available, we used the indication provided by MSCI based on
a reference perimeter defined by the Centre for European Policy Studies (CEPS). In particular, also on the basis of the information
provided by the data provider, undertakings not obliged to publish non-financial information include European undertakings excluded
from the scope of application of articles 19a and 29a of Directive 2013/34/EU which did not provide data relating to EU Taxonomy
eligibility, issuers belonging to third countries, and alternative investments, mainly private equity, as they are towards unlisted issuers.
Such assets amounted to € 86,378 million (25.3% of total covered assets).
Template: The proportion of the insurance or reinsurance undertaking’s investments that are directed at funding, or are associated with,
Taxonomy-aligned in relation to total investments
The weighted average value of all the investments of insurance or reinsurance undertakings that are
directed at funding, or are associated with Taxonomy-aligned economic activities relative to the value
of total assets covered by the KPI, with following weights for investments in undertakings per below:
The weighted average value of all the investments of insurance or reinsurance undertakings that are
directed at funding, or are associated with Taxonomy-aligned economic activities, with following
weights for investments in undertakings per below:
Turnover-based (%) 3.6% Turnover-based (€ million) 12,210
Capital expenditures-based (%) 4.9% Capital expenditures-based (€ million) 16,638
The percentage of assets covered by the KPI relative to total investments of insurance or reinsurance
undertakings (total AuM). Excluding investments in sovereign entities.
The monetary value of assets covered by the KPI. Excluding investments in sovereign entities.
Coverage ratio (%) 66.8% Coverage (€ million) 341,937
Additional, complementary disclosures: breakdown of denominator of the KPI
The percentage of derivatives relative to total assets covered by the KPI. The value in monetary amounts of derivatives.
Percentage of derivatives relative to total assets covered by the KPI (%) 0.3% Monetary amount (€ million) 1,041
The proportion of exposures to financial and non-financial undertakings not subject to Articles 19a
and 29a of Directive 2013/34/EU over total assets covered by the KPI:
Value of exposures to financial and non-financial undertakings not subject to Articles 19a and 29a of
Directive 2013/34/EU:
For non-financial undertakings (%) 17.7% For non-financial undertakings (€ million) 60,396
For financial undertakings (%) 7.6% For financial undertakings (€ million) 25,981
The proportion of exposures to financial and non-financial undertakings from non-EU countries not
subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI:
Value of exposures to financial and non-financial undertakings from non-EU countries not subject to
Articles 19a and 29a of Directive 2013/34/EU:
For non-financial undertakings (%) 15.2% For non-financial undertakings (€ million) 52,086
For financial undertakings (%) 5.6% For financial undertakings (€ million) 19,175
The proportion of exposures to financial and non-financial undertakings subject to Articles 19a and
29a of Directive 2013/34/EU over total assets covered by the KPI:
Value of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of
Directive 2013/34/EU:
For non-financial undertakings (%) 24.2% For non-financial undertakings (€ million) 82,705
For financial undertakings (%) 11.3% For financial undertakings (€ million) 38,520
The proportion of exposures to other counterparties and assets over total assets covered by the KPI: Value of exposures to other counterparties and assets:
Percentage (%) 13.8% Monetary amount (€ million) 47,096
The proportion of the insurance or reinsurance undertaking’s investments other than investments held
in respect of life insurance contracts where the investment risk is borne by the policy holders, that are
directed at funding, or are associated with, Taxonomy-aligned economic activities (*):
Value of insurance or reinsurance undertaking’s investments other than investments held in respect of
life insurance contracts where the investment risk is borne by the policy holders, that are directed at
funding, or are associated with, Taxonomy-aligned economic activities (*):
Percentage (%) 48.6% Monetary amount (€ million) 166,158
The value of all the investments that are funding economic activities that are not Taxonomy-eligible
relative to the value of total assets covered by the KPI (**):
Value of all the investments that are funding economic activities that are not Taxonomy-eligible (**):
Percentage (%) 80.2% Monetary amount (€ million) 274,167
The value of all the investments that are funding Taxonomy-eligible economic activities, but not
Taxonomy-aligned relative to the value of total assets covered by the KPI (**):
Value of all the investments that are funding Taxonomy-eligible economic activities, but not Taxonomy-
aligned (**):
Percentage (%) 15.9% Monetary amount (€ million) 53,335
(*) In line with the draft Commission Communication of 21 December 2023, the Group considered the value and share of financial investments, identifiable in the systems used, as different from financial investments held
in relation to life insurance contracts in which the investment risk is borne by the policyholder.
(**) In accordance with ESMA recommendations which require not to edit the regulatory template, the values represent an arithmetic average of the indicators based on turnover and capital expenditure.
Investments in economic activities that are not Taxonomy-eligible amount to € 270,925 million (79.2% of covered assets) on the basis of capital expenditure and € 277,409 million (81.1% of covered assets) on the basis
of turnover.
Investments in Taxonomy-eligible economic activities, but not Taxonomy-aligned amount to € 54,363 million (15.9% of covered assets) on the basis of capital expenditure and € 52,307 million (15.3% of covered assets)
on the basis of turnover.
EU TAXONOMY NFS
We, Generali
61
The Group has established and monitored the process of implementing the latest European legislative provisions, particularly with
regard to the requirements introduced by Regulation EU 2019/2088 on sustainability-related disclosures in the financial services
sector (known as Disclosure Regulation) and Regulation EU 2020/852 on the establishment of a framework to facilitate sustainable
investments (known as EU Taxonomy Regulation).
The Group has also updated the framework for the integration of sustainability factors into the investment policies as asset owner,
in line with the commitments described in the Generali Group Strategy on Climate Change updated in June 2022 and to encourage
the investments necessary to achieve the objectives of the European Green Deal of net-zero GHG emissions by 2050, committing
to making the investment portfolio net-zero by 2050.
The adoption of the EU Taxonomy represents an important step to ensure the transparency of investments in activities considered
as environmentally sustainable. In order to increasingly integrate information from the EU Taxonomy into its framework for the
incorporation of ESG criteria into investments, the Group is carefully assessing the availability and quality of the data retrievable
on the market. Once issuers make available the information about their sustainable activities in line with the six environmental
objectives outlined by the EU Taxonomy, this will provide a comprehensive overview of their sustainability strategy in both current
terms (revenues from sustainable activities) and prospective terms (capital expenditure from sustainable activities). Consequently, the
Group will be able to enhance its investment and product strategies with such information.
Additional, complementary disclosures: breakdown of numerator of the KPI
The proportion of Taxonomy-aligned exposures to financial and non-financial undertakings subject
to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI:
Value of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles
19a and 29a of Directive 2013/34/EU:
Turnover-based (%) for non-financial undertakings 2.6% Turnover-based (€ million) for non-financial undertakings 8,847
Capital expenditures-based (%) for non-financial undertakings 3.9% Capital expenditures-based (€ million) for non-financial undertakings 13,275
Turnover-based (%) for financial undertakings 0.0% Turnover-based (€ million) for financial undertakings -
Capital expenditures-based (%) for financial undertakings 0.0% Capital expenditures-based (€ million) for financial undertakings -
The proportion of the insurance or reinsurance undertaking’s investments other than investments
held in respect of life insurance contracts where the investment risk is borne by the policy holders,
that are directed at funding, or are associated with, Taxonomy-aligned:
Value of insurance or reinsurance undertaking’s investments other than investments held in respect of
life insurance contracts where the investment risk is borne by the policy holders, that are directed at
funding, or are associated with, Taxonomy-aligned:
Turnover-based (%) 2.4% Turnover-based (€ million) 8,323
Capital expenditures-based (%) 3.6% Capital expenditures-based (€ million) 12,334
The proportion of Taxonomy-aligned exposures to other counterparties and activities in over total
assets covered by the KPI:
Value of Taxonomy-aligned exposures to other counterparties and assets over total assets covered by
the KPI:
Turnover-based (%) 1.0% Turnover-based (€ million) 3,363
Capital expenditures-based (%) 1.0% Capital expenditures-based (€ million) 3,363
Breakdown of the numerator of the KPI per environmental objective
Taxonomy-aligned activities - provided “do-not-significant-harm” (DNSH) and social safeguards positive
assessment:
Climate change mitigation
Turnover-based (%) 3.6%
Capital expenditures-based (%) 4.8%
Transitional activities (Turnover %) 0.0%
Transitional activities (CapEx %) 0.1%
Enabling activities (Turnover %) 0.7%
Enabling activities (CapEx %) 1.3%
Climate change adaptation
Turnover-based (%) 0.0%
Capital expenditures-based (%) 0.1%
Enabling activities (Turnover %) 0.0%
Enabling activities (CapEx %) 0.0%
EU TAXONOMY NFS
Annual Integrated Report and Consolidated Financial Statements 2023
62
Generali Group
Template 2 - Taxonomy-aligned economic activities (denominator)
Row
Economic activities Amount and proportion (the information is to be presented in monetary amounts and as
percentages) - CAPEX-based
Amount and proportion (the information is to be presented in monetary amounts and as
percentages) - Turnover-based
CCM + CCA Climate Change Mitigation
(CCM)
Climate Change Adaptation
(CCA)
CCM + CCA Climate Change Mitigation
(CCM)
Climate Change Adaptation
(CCA)
Amount
(€ million)
%
Amount
(€ million)
%
Amount
(€ million)
%
Amount
(€ million)
%
Amount
(€ million)
%
Amount
(€ million)
%
1
Amount and proportion of
taxonomy-aligned economic
activity referred to in Section 4.26
of Annexes I and II to Delegated
Regulation 2021/2139 in the
numerator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
2 Amount and proportion of
taxonomy-aligned economic
activity referred to in Section 4.27
of Annexes I and II to Delegated
Regulation 2021/2139 in the
numerator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
3 Amount and proportion of
taxonomy-aligned economic
activity referred to in Section 4.28
of Annexes I and II to Delegated
Regulation 2021/2139 in the
numerator of the applicable KPI
4 0.0% 4 0.1% 0 0.0% 8 0.0% 8 0.2% 0 0.0%
4 Amount and proportion of
taxonomy-aligned economic
activity referred to in Section 4.29
of Annexes I and II to Delegated
Regulation 2021/2139 in the
numerator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 1 0.0% 1 0.0% 0 0.0%
5 Amount and proportion of
taxonomy-aligned economic
activity referred to in Section 4.30
of Annexes I and II to Delegated
Regulation 2021/2139 in the
numerator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
6 Amount and proportion of
taxonomy-aligned economic
activity referred to in Section 4.31
of Annexes I and II to Delegated
Regulation 2021/2139 in the
numerator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
7 Amount and proportion of other
taxonomy-aligned economic
activities not referred to in rows
1 to 6 above in the denominator of
the applicable KPI
16,633 4.9% 15,603 4.6% 253 0.1% 12,201 3.6% 11,530 3.4% 35 0.0%
8 Total applicable KPI
341,937 100% 0 0 341,937 100% 0 0
Template 1 - Nuclear and fossil gas related activities
Row
Nuclear energy related activities
1 The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from
the fuel cycle.
No
2 The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes
such as hydrogen production, as well as their safety upgrades, using best available technologies.
Yes
3 The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as
hydrogen production from nuclear energy, as well as their safety upgrades.
Yes
Fossil gas related activities
4 The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.
Yes
5 The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.
Yes
6 The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.
Yes
Exposures to economic activities related to nuclear and fossil gas
In line with Delegated Regulation EU 2022/1214, we report the share of exposures to economic activities in certain energy sectors
(gas and nuclear) according to Annex XII of the aforementioned Regulation.
EU TAXONOMY NFS
We, Generali
63
Template 3 - Taxonomy-aligned economic activities (numerator)
Row
Economic activities Amount and proportion (the information is to be presented in monetary amounts and as
percentages) - CAPEX-based
Amount and proportion (the information is to be presented in monetary amounts and as
percentages) - Turnover-based
CCM + CCA Climate Change Mitigation
(CCM)
Climate Change Adaptation
(CCA)
CCM + CCA Climate Change Mitigation
(CCM)
Climate Change Adaptation
(CCA)
Amount
(€ million)
%
Amount
(€ million)
%
Amount
(€ million)
%
Amount
(€ million)
%
Amount
(€ million)
%
Amount
(€ million)
%
1 Amount and proportion of
taxonomy-aligned economic
activity referred to in Section 4.26
of Annexes I and II to Delegated
Regulation 2021/2139 in the
numerator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
2 Amount and proportion of
taxonomy-aligned economic
activity referred to in Section 4.27
of Annexes I and II to Delegated
Regulation 2021/2139 in the
numerator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
3 Amount and proportion of
taxonomy-aligned economic
activity referred to in Section 4.28
of Annexes I and II to Delegated
Regulation 2021/2139 in the
numerator of the applicable KPI
4 0.0% 4 0.0% 0 0.0% 10 0.1% 10 8.3% 0 0.0%
4 Amount and proportion of
taxonomy-aligned economic
activity referred to in Section 4.29
of Annexes I and II to Delegated
Regulation 2021/2139 in the
numerator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
5 Amount and proportion of
taxonomy-aligned economic
activity referred to in Section 4.30
of Annexes I and II to Delegated
Regulation 2021/2139 in the
numerator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
6 Amount and proportion of
taxonomy-aligned economic
activity referred to in Section 4.31
of Annexes I and II to Delegated
Regulation 2021/2139 in the
numerator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
7 Amount and proportion of other
taxonomy-aligned economic
activities not referred to in rows
1 to 6 above in the numerator of
the applicable KPI
16,633 100% 15,603 0.0% 253 100% 12,201 99.9% 11,530 91.7% 35 100%
8 Total amount and proportion
of taxonomy-aligned economic
activities in the numerator of the
applicable KPI (*)
16,638 100% 16,047 100% 253 100% 12,210 100% 12,567 100% 35 100%
(*) The indicators may differ from the aligned total reported in Template - The proportion of the insurance or reinsurance undertaking’s investments that are directed at funding, or are associated with, Taxonomy-
aligned in relation to total investments
, as the exposures have been weighted on indicators on the numerator of the alignment KPIs.
EU TAXONOMY NFS
Annual Integrated Report and Consolidated Financial Statements 2023
64
Generali Group
Template 4 - Taxonomy-eligible but not taxonomy-aligned economic activities
Row
Economic activities Amount and proportion (the information is to be presented in monetary amounts and as percentages)
- CAPEX-based
Amount and proportion (the information is to be presented in monetary amounts and as percentages)
- Turnover-based
CCM + CCA Climate Change Mitigation
(CCM)
Climate Change Adaptation
(CCA)
CCM + CCA Climate Change Mitigation
(CCM)
Climate Change Adaptation
(CCA)
Amount
(€ million)
%
Amount
(€ million)
%
Amount
(€ million)
%
Amount
(€ million)
%
Amount
(€ million)
%
Amount
(€ million)
%
1 Amount and proportion of
taxonomy-eligibile but not
taxonomy-aligned economic
activity referred to in Section 4.26
of Annexes I and II to Delegated
Regulation 2021/2139 in the
denominator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
2 Amount and proportion of
taxonomy-eligibile but not
taxonomy-aligned economic
activity referred to in Section 4.27
of Annexes I and II to Delegated
Regulation 2021/2139 in the
denominator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
3 Amount and proportion of
taxonomy-eligibile but not
taxonomy-aligned economic
activity referred to in Section 4.28
of Annexes I and II to Delegated
Regulation 2021/2139 in the
denominator of the applicable KPI
1 0.0% 1 0.0% 0 0.0% 1 0.0% 1 0.0% 0 0.0%
4 Amount and proportion of
taxonomy-eligibile but not
taxonomy-aligned economic
activity referred to in Section 4.29
of Annexes I and II to Delegated
Regulation 2021/2139 in the
denominator of the applicable KPI
19 0.0% 19 0.5% 0 0.0% 42 0.0% 42 1.2% 0 0.0%
5 Amount and proportion of
taxonomy-eligibile but not
taxonomy-aligned economic
activity referred to in Section 4.30
of Annexes I and II to Delegated
Regulation 2021/2139 in the
denominator of the applicable KPI
40 0.0% 40 1.2% 0 0.0% 57 0.0% 57 1.7% 0 0.0%
6 Amount and proportion of
taxonomy-eligibile but not
taxonomy-aligned economic
activity referred to in Section 4.31
of Annexes I and II to Delegated
Regulation 2021/2139 in the
denominator of the applicable KPI
0 0.0% 0 0.0% 0 0.0% 5 0.0% 5 0.2% 0 0.0%
7 Amount and proportion of
other taxonomy-eligible but not
taxonomy-aligned economic
activities not referred to in rows 1
to 6 above in the denominator of
the applicable KPI
54,304 15.9% 0 0.0% 0 0.0% 52,201 15.3% 0 0.0% 0 0.0%
8 Total amount and proportion
of taxonomy-eligible but not
taxonomy-aligned economic
activities in the denominator of
the applicable KPI
54,363 15.9% 0 0.0% 0 0.0% 52,307 15.3% 0 0.0% 0 0.0%
EU TAXONOMY NFS
We, Generali
65
Template 5 - Taxonomy non-eligible economic activities
Riga
Attività economiche Amount CAPEX-based (€ million) Percentage CAPEX-based Amount Turnover-based (€ million) Percentage Turnover-based
1 Amount and proportion of economic activity referred to in row 1 of Template 1 that is
taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
0 0.0% 0 0.0%
2 Amount and proportion of economic activity referred to in row 2 of Template 1 that is
taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
1 0.0% 1 0.0%
3 Amount and proportion of economic activity referred to in row 3 of Template 1 that is
taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
3 0.0% 6 0.0%
4 Amount and proportion of economic activity referred to in row 4 of Template 1 that is
taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
1 0.0% 2 0.0%
5 Amount and proportion of economic activity referred to in row 5 of Template 1 that is
taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
0 0.0% 0 0.0%
6 Amount and proportion of economic activity referred to in row 6 of Template 1 that is
taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the applicable KPI
0 0.0% 0 0.0%
7 Amount and proportion of other taxonomy-non-eligible economic activities not
referred to in rows 1 to 6 above in the denominator of the applicable KPI
274,160 80.2% 274,160 80.2%
8 Total amount and proportion of taxonomy-non-eligible economic activities in the
denominator of the applicable KPI
274,167 80.2% 274,167 80.2%
EU TAXONOMY NFS
Annual Integrated Report and Consolidated Financial Statements 2023
66
Generali Group
01 Insurance solutions with ESG components
Insurance solutions, by their very nature, have a high social and environmental value, as they concretely respond to customers’
pension and protection needs and to the growing requirements of society, contributing to make it more resilient in relation to changes
and adversities.
Coherently with its commitment as a responsible insurer, the Group developed an internal framework to identify those existing
insurance solutions that, more than others, have environmental and/or social components, contributing to create shared value
with all the stakeholders. These insurance solutions offer coverage and services to clients with habits, behaviours or activities that
respect the environment, as well as any specific needs for support, protection and/or inclusion, also from a social perspective.
In the meantime, we also developed insurance solutions with investment components with the aim of positively contributing to
environmental and/or social dimensions..
Group’s performance, p. 106 for further information on premiums
Contributing to facing climate change, respecting ecosystems, integrating welfare systems are just some of the topics we want to
answer to. Whenever possible, we do it by encouraging habits and behaviours towards healthier and more aware lifestyles, favouring
risk prevention and reduction rather than focusing solely on the compensation.
To provide transparency to our stakeholders, we report on the amount of premiums deriving from insurance solutions with ESG
components and are progressively moving our definitions towards those of national and supranational regulators, thus taking into
account the regulatory changes that are currently underway.
Within the Lifetime Partner 24: Driving Growth strategy, the Group confirms its commitment to developing insurance solutions with
ESG components, as defined by our internal framework, increasing our premiums by a 5-7% CAGR (2021-2023) increase.
Responsible insurer
As a responsible insurer, we committed on three main goals:
01
Increasing gross direct written premiums by 5-7% CAGR by 2024 in relation to the insurance solutions with ESG
components: social sphere - aimed at targeted clients or promoting responsible behaviour and healthy lifestyle - and
environmental sphere - for instance promoting mobility with reduced environmental impact, offering protection against
climate events, and supporting the energy efficiency of buildings.
02
Gradually decarbonising the insurance portfolio to reach net-zero GHG emissions by 2050.
03
Strengthening the focus on SMEs through the SME EnterPRIZE project and the integration of sustainability into our customer
value proposition.
NFS
We, Generali
67
63. Insurance solutions with ESG components is a definition used for internal identification purposes. Premiums from insurance solutions with ESG components - social sphere and environmental
sphere refer to consolidated companies representing 96.2% of the Group’s total gross direct written premiums, excluding the corporate & commercial business. The change was on equivalent
terms, i.e. at constant exchange rates and consolidation scope.
As for premiums from insurance solutions with ESG components - environmental sphere, the premium from multi-risk policies covering NATCAT events only refers to the NATCAT guarantee. If
the premium cannot be split into green-related component and other components, only the premium from the policies which are predominantly providing a green coverage or service is reported.
Premiums from insurance solutions with ESG components - social sphere
Products aimed at targeted clients/events: products aimed at enabling and enhancing social inclusion, focusing on the disadvantaged and vulnerable sector of the population, like the young, the
elderly, the disabled, the migrants. To this category also belong those products that respond to specific negative life events, such as disability, loss of independency, unemployment, dread diseases, etc.,
or to different lifestyle needs subsequently, for instance, to the termination of the employment relationship.
Health products providing pay-out or services: products that integrate or supplement the public health service, designed to help manage the costs of treatment and assistance, as well as the reduction
in earnings of customers in the event of serious illnesses or the loss of self-sufficiency.
Products promoting responsible behaviours or investing also in ESG components: products that promote responsible and healthy lifestyles, leveraging on the opportunities provided by new
technologies, the importance of preventive healthcare or other virtuous behaviours of policyholders. To this category also belong those Life investment products that allow customers to invest insurance
premiums into financial assets also with ESG components.
Premiums from insurance solutions with ESG components - environmental sphere
Mobility: products offering coverages and services dedicated to sustainable mobility and/or with reduced environmental impact, including coverages offered to customers that, thanks to their driving
style, can contribute to reducing CO
2
emissions. This category includes insurance products dedicated to electric and hybrid vehicles, and those rewarding low annual mileage and responsible driving
behaviour, also thanks to the use of telematics, or those designed for other means of transport, such as bikes, scooters, etc..
Risk reduction: products specifically designed to answer to coverage needs against natural and climate risks. Risk prevention and reduction represent a key factor in these cases.
Renewable energies: products covering risks connected with the production of renewable energies. These kinds of products are designed to cover equipment for the production of renewable energy, to
guarantee reimbursement of damage caused by atmospheric events to solar and photovoltaic panels, or similar systems, which can be integrated with guarantees to protect against loss of profit deriving
from the interruption or decrease of the production of electricity.
Pollution liability/Own damages: products targeting sudden and accidental pollution, such as third party liability policies. These solutions, for instance, provide reimbursement of expenses for urgent
and temporary interventions aimed at preventing or limiting the recoverable damage. In some countries, the restoration of the polluted site is guaranteed in order to protect environment and biodiversity.
Energy efficiency: products supporting the certified measures taken to improve the energy efficiency of buildings. In some cases, consultancy is provided to customers to identify possible solutions for
optimizing energy consumption, thus reducing the environmental impact.
Circular economy: products supporting companies dealing with materials recovery/recycling and/or start-ups that manage shared services platforms, etc..
NFS
Products promoting responsible behaviours
or investing also in ESG components
6.5%
Health products providing pay-out or services
23.1%
Products aimed at targeted clients/events
70.4%
Risk reduction
44.3%
Renewable energies
1.7%
Pollution liability/Own damages
0.6%
Energy efficiency
1.1%
Circular economy
0.2%
Premiums from insurance solutions with
ESG components
63
€ 20,815 mln
+7.4% (CAGR
2021-2023)
Premiums from insurance solutions with
ESG components - social sphere
63
€ 18,228 mln
+6.9% (CAGR
2021-2023)
Premiums from insurance solutions with
ESG components - environmental sphere
63
€ 2,587 mln
+11.9% (CAGR
2021-2023)
Mobility
52.1%
Annual Integrated Report and Consolidated Financial Statements 2023
68
Generali Group
01. Identification of eligible economic activities
EU Taxonomy-aligned non-life insurance business refers to the provision of insurance products, within certain lines of business
65
,
covering climate-related perils and compliant with the technical screening criteria defined for the activity 10.1 Non-life insurance:
underwriting of climate-related perils of Annex II of Delegated Regulation EU 2021/2139 of the European Commission
66
, by Group
companies compliant with the minimum safeguards.
In line with Delegated Regulation EU 2021/2178, we report the gross premiums of the P&C segment - limited to the eligible lines
of business - connected to insurance policies in line with the EU Taxonomy and collected by Group companies compliant with
minimum safeguards. In consideration of the provisions of the reporting guidelines and communications published by the European
Commission in December 2021
67
, October 2022 and October 2023
68
, the Group considered eligible premiums as the total gross
written premiums attributable to the lines of business, among the eight lines listed in Delegated Regulation EU 2021/2139 of the
European Commission, which includes at least a policy explicitly providing coverage of climate-related perils defined by the EU
Taxonomy. For the purpose of this report, the identification of such policy was based on the assessment of policy terms and/or
conditions relating to catastrophe risk coverage
69
. The lines of business included were: other motor insurance; marine, aviation and
transport insurance; fire insurance and other damage to property insurance.
European Taxonomy
The European Union has established a significantly evolving, standardized system of classification of sustainable activities (known as
EU Taxonomy), outlined in Regulation EU 2020/852 and its related Delegated Regulations, which define the criteria for determining
whether an economic activity can be considered environmentally sustainable in order to identify the degree of eco-sustainability of
an investment.
Our strategy, Responsible investor, p. 57 for further details
Pursuant to art. 7 of Delegated Regulation EU 2021/2178 of the European Commission
64
, we reported the indicator linked to non-life
insurance activities below.
01 03 05
02 04
Identification of
eligible economic
activities
Analysis of substantial
contribution
Verification of minimum
safeguards
Assessment of the principle of Do
No Significant Harm (DNSH) to other
environmental objectives
Calculation of
financial metrics
64. It is the Delegated Regulation on disclosure pursuant to the EU Taxonomy: it supplements Regulation EU 2020/852 of the European Parliament and of the Council, specifying the content and
presentation of information to be disclosed by undertakings subject to Article 19a or Article 29a of Directive 2013/34/EU concerning environmentally sustainable economic activities, as well as
specifying the methodology to comply with this disclosure obligation..
65. Annex II of Delegated Regulation EU 2021/2139 of the European Commission identifies the following lines of business: medical expense insurance; income protection insurance; workers’
compensation insurance; motor vehicle liability insurance; other motor insurance; marine, aviation and transport insurance; fire insurance and other damage to property insurance; and assistance.
66. It is Delegated Regulation on climate objectives: it supplements Regulation EU 2020/852 of the European Parliament and of the Council, by establishing the technical screening criteria for
determining under which conditions an economic activity qualifies as contributing substantially to climate change mitigation or climate change adaptation and for determining whether that
economic activity causes no significant harm to any of the other environmental objectives.
67. FAQs: How should financial and non-financial undertakings report Taxonomy-eligible economic activities and assets in accordance with the Taxonomy Regulation Article 8 Disclosures Delegated
Act?
68. Commission Notice on the interpretation and implementation of certain legal provisions of the Disclosures Delegated Act under Article 8 of EU Taxonomy Regulation on the reporting of Taxonomy-
eligible and Taxonomy-aligned economic activities and assets (first and second Commission Notice). Commission Notice on the interpretation and implementation of certain legal provisions of the
EU Taxonomy Climate Delegated Act establishing technical screening criteria for economic activities that substantially contribute to climate change mitigation or climate change adaptation and
do no significant harm to any other environmental objective.
69. Although the coverage of catastrophe risks concerns both climate-related perils and other catastrophe events, the risk of considering eligible the premiums attributable to policies that only cover
other catastrophe events is limited, in light of the features of the Group’s products.
EU TAXONOMY NFS
We, Generali
69
02. Analysis of substantial contribution
a. Leadership in modelling and pricing of climate risks
The Group launched a pricing initiative to improve climate risk modelling.
Several methodologies have been identified and described in the Natural Catastrophe Technical Pricing Blueprint released to all companies. They
are based on extensive use of external NAT CAT models, which are enriched with historical company data when needed. If such data were not
available, internal models are used whenever possible (e.g. for atmospheric events considering daily Copernicus meteorological data).
These methodologies adequately reflect the risk deriving from climate change, as they do not only use historical losses, but also forward-looking
scenarios.
Challenges and opportunities of the market context, p. 26 and Notes, Information about climate change for
further detail on how we integrate climate change into our models
b. Product design
The Group encourages the adoption of adaptation measures and preventive actions by the insured, reflecting the reduction of climate risks at the
level of policy terms and conditions. Preventive actions can be defined as structural measures and services implemented ex-ante by the insured
in the event of a loss, which reduce the insured’s physical exposure to climate risks by reducing the probability or severity of a climate-related
loss. The use of adaptation measures is currently more widespread for corporate customers, leveraging risk assessment activities and insurance
contracts that are typically customized compared to business towards private individuals and small and medium-sized enterprises, which is more
standardized.
c. Innovative insurance coverage solutions
We offer modular solutions that cover climate-related risks based on customer needs. The insured’s needs for climate-related risk coverage and
how the insurance product responds to such demand are documented at the product level in the product development process.
d. Data sharing
The Group makes a significant part of the data on losses related to climate risks available to public authorities in order to improve research
and policies for adaptation to climate change by providing a level of granularity of information sufficient for the use declared by the respective
institutions.
www.generali.com/sustainability/responsible-insurer for the request of data about losses related to climate risks
e. High level of service in post-disaster situation
Group companies are required to activate adequate claims flow management systems in the event of catastrophic events (e.g. Generali Italia’s
Generali Qui per Voi service)
70
, in compliance with the Claims Management Group Guideline for Extremely Large Losses (ELLs), which also
includes NAT CAT events.
03. Assessment of the principle of Do No Significant Harm (DNSH) to other
environmental objectives
The assessment ensures that the insurance does not cover the extraction, storage, transportation or production of fossil fuels nor
the insurance of vehicles, property, or other assets used for such purposes.
With reference to fossil fuel-related activities, since 2018 the Group has been applying restrictions to clients for coal-related activities,
avoiding new underwriting and reducing the existing exposures.
Moreover, the Group does not insure clients for both conventional and unconventional oil and gas upstream activities. With regard to
the unconventional tar sands and fracking oil and gas sectors, the exclusions also apply to the midstream segment.
Our strategy, Responsible insurer, p. 72 for further details
04. Verification of minimum safeguards
The minimum safeguards are introduced by the articles 3 and 18 of Regulation EU 2020/852 to ensure that companies carrying
out environmentally sustainable activities in accordance with the technical screening criteria of the EU Taxonomy respect certain
minimum governance standards and do not violate social norms.
To ensure compliance with regulatory requirements, companies are required to conduct their activities consistently with the OECD
Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights, including the principles and
70. During the flood event in Emilia-Romagna and Marche, Generali, together with the companies of Country Italy, launched extraordinary measures to support customers and agents. In particular,
for the speedy management of claims, the interventions envisaged by the Qui per voi catastrophe event management model were activated immediately.
EU TAXONOMY NFS
Annual Integrated Report and Consolidated Financial Statements 2023
70
Generali Group
rights established by the eight fundamental conventions identified in the International Labor Organization Declaration on Fundamental
Principles and Rights at Work and the International Bill of Human Rights. In implementing these procedures, companies are also
required to respect the principle of not causing significant damage (DNSH) referred to in art. 2, point 17), of Regulation EU 2019/2088
(Sustainable Finance Disclosure Regulation).
The Group conducted an in-depth analysis of its activities with particular reference to issues relating to human rights, corruption,
competition, taxation, and exposure to the controversial weapons sector. To ensure compliance with the minimum safeguards, on
the one hand, it has been verified that the policies and guidelines adopted by the Group companies comply with the requirements
of the regulatory frameworks and reflect the Group’s commitment to the issues mentioned above and, on the other hand, that a
process of risk assessment and identification of remediation procedures is carried out if significant risks are identified.
Our rules for running business with integrity, p. 86 for further information on the relevant policies and procedures
05. Calculation of financial metrics
Considering the draft Commission Notice published on 21 December 2023
71
, in the case of multi-risk insurance contracts, the Group
reported only the portion of premiums relating to the coverage of climate-related risks, adopting a specific methodology to calculate
the key indicator.
The Group estimated the reinsured and retroceded component of aligned premiums, identifying the climate component of retroceded
premium within the gross premiums, based on the catastrophe models used.
EU Taxonomy-aligned non-life
insurance activities
3.0%
Template: The underwriting KPI for non-life insurance and reinsurance undertakings
Substantial contribution to climate change adaptation DNSH (Do No Significant Harm)
Economic activities Absolute
premiums,
year t
Proportion of
premiums,
year t
Proportion of
premiums,
year t-1
Climate change
mitigation
Water and
marine
resources
Circular
economy
Pollution Biodiversity and
ecosystems
Minimum
safeguards
Currency
(€ million)
% % Y/N Y/N Y/N Y/N Y/N Y/N
A.1
Non-life insurance and reinsurance
underwriting Taxonomy-aligned
activities (environmentally
sustainable)
929 3.0% n.a. Y Y Y Y Y Y
A.1.1 Of which reinsured 174 0.6% n.a. Y Y Y Y Y Y
A.1.2
Of which stemming from reinsurance
activity
4 0.0% n.a. Y Y Y Y Y Y
A.1.2.1 Of which reinsured (retrocession) 1 0.0% n.a. Y Y Y Y Y Y
A.2
Non-life insurance and reinsurance
underwriting Taxonomy-eligible but
not environmentally sustainable
activities (not Taxonomy-aligned
activities)
12,482 40.1% n.a.
B.
Non-life insurance and reinsurance
underwriting Taxonomy-non-eligible
activities
17,708 56.9% n.a.
Total (A.1 + A.2 + B)
31,120 100% n.a.
71. Draft Commission Notice on the interpretation and implementation of certain legal provisions of the Disclosures Delegated Act under Article 8 of EU Taxonomy Regulation on the reporting of
Taxonomy eligible and Taxonomy-aligned economic activities and assets (approved in principle).
EU TAXONOMY NFS
We, Generali
71
In the recent edition of the Group’s Non-Life Underwriting and Reservation Policy and related guidelines, as well as in the Group’s
Product Control and Governance Policy, the obligation to comply with the technical screening criteria was introduced for all newly
issued products relating to the eligible lines of business (other car insurance; marine, aeronautical and transport insurance; fire and
other property damage insurance) and which provide guarantees/coverage for climate-related perils.
In continuity with the previous year, we also confirm our participation to the working groups promoted at national and European level
for a continuous and fruitful discussion on issues connected not only to the processes of integration of the EU Taxonomy in product
development, but also to the sharing of best practices (for example, risk prevention and reduction actions) for a correct assessment
of the alignment of the insurance business with the provisions of the regulation.
Generali and the United Nations Development Program (UNDP) launched a partnership to reduce the protection gap for communities
around the world living in vulnerable contexts, through access to insurance and risk financing.
The aim is to increase visibility on these issues and establish how the insurance sector can promote the safety of SMEs in developing
countries. They are developing loss prevention guidelines dedicated to SMEs operating in vulnerable contexts, exploiting the potential
of data, knowledge, and understanding of risks.
Generali and UNDP are developing loss prevention guidelines dedicated to SMEs operating in vulnerable contexts, exploiting the
potential of data, knowledge and understanding of risks.
Through their collaboration, Generali and UNDP align themselves with the objectives of the InsuResilience Vision 2025, which
plans to reach 500 million vulnerable people, offering coverage against climate shocks and natural disasters, to cover 150 million
vulnerable people through microinsurance solutions, and to place insurance innovation at the center of the Sustainable Development
Goals and the United Nations 2030 Agenda.
In the coming months, UNDP and Generali will present the first guidelines on parametric insurance aligned with the criteria of the
SDG Agenda, which will be followed by Generali’s commitment to supporting parametric solutions in support of the United Nations
Sustainable Development Goals.
The loss prevention guidelines, which will be presented in the coming months, will be hosted by an online platform that will offer
businesses advice on how to protect their business in the face of climate challenges.
In addition to contributing to the climate change adaptation objective, the Group’s insurance underwriting activities also aim to
contribute to its mitigation. In fact, in line with the Lifetime Partner 24: Driving Growth strategy, in which sustainability represents
one of its characterizing elements, Generali is committed to playing a leading role in the transition process towards zero greenhouse
gas emissions even through the development of renewable energy sources. Within the Group, we developed and shared a best
practice which, together with a technical risk assessment and loss prevention tool, will be used to underwrite the specific risks of the
renewable energy sector (photovoltaic panels) for the SME segment. This best practice is added to those aimed at supporting the
energy efficiency of buildings or those aimed at promoting sustainable mobility.
Our strategy, Responsible insurer, p. 66
EU TAXONOMY NFS
Annual Integrated Report and Consolidated Financial Statements 2023
72
Generali Group
02 Insurance exposure to fossil fuel sector
The Group has individually undertaken a stringent exclusion policy towards companies operating in the fossil fuel sector, with the
ambition to bring greenhouse gas emissions attributable to the insurance portfolio to net-zero by 2050.
www.generali.com/sustainability/our-commitment-to-the-environment-and-climate for further
details included in the Generali Group Strategy on Climate Change - technical note
Since 2018, the Group has adopted specific restrictions on the underwriting of coal-related activities to support its commitment to
removing its already minimal insurance exposure towards this sector; the phase-out will be reached by 2030 for clients located in
OECD countries and by 2038 in the rest of the world. In relation to this goal, since January 2022, we made the exclusion criteria even
stricter by lowering the technical thresholds for defining coal-related clients. Furthermore, regardless of these exclusion thresholds,
we have committed to no longer offering insurance coverage for the construction of new coal mines or new coal-fired thermal power
plants and new coal-dedicated transport infrastructure. In the coming years, we will gradually lower the exclusion thresholds until our
insurance exposure to this energy sector will be zero.
The exclusion rules are applied to both new and existing clients in the portfolio. Clients who exceed exclusion thresholds and were
already in the portfolio before their implementation are subject to assessment in order to evaluate their decarbonisation and coal
phase-out policies. If these policies are not in line with Generali’s strategy, in agreement with the clients themselves, insurance
exposures to these coal assets are not renewed.
On a like-for-like basis, insurance exposure to the fossil fuel sector is decreasing compared to last year. Even considering the
inclusion in scope of the recent acquisitions in India and Malaysia, the downward trend compared to 2018 is confirmed: insurance
exposure to the fossil fuel sector at the end of 2023 amounts to less than 0.1% of premiums related to the P&C portfolio.
Residual insurance exposure to coal-related business
72
< 0.1% of the P&C portfolio
Historically, the Group does not provide insurance coverage to its clients for risks associated with both conventional and unconventional
oil and gas exploration and production activities, including their expansion.
In relation to the unconventional sectors of tar sands and oil and gas extracted through fracking, restrictions also apply to the
midstream supply chain.
Therefore, we have no material exposure to this sector.
Insurance exposure to oil and gas-related business
73
0.0% of the P&C portfolio
NFS
72. The indicator refers to direct premiums from property, engineering and marine coverage of coal assets related to companies of the coal sector.
73. The indicator refers to direct premiums from underwriting risks related to oil and gas (conventional and unconventional) exploration/extraction (upstream segment) and midstream infrastructure of
oil and gas extracted through fracking and/or from tar sands, if not marginal to the client’s core business (less than 10% of the value of covered assets).
We, Generali
73
03 SME EnterPRIZE
Launched in 2019, the aim of the project is to support European Small and Medium Enterprises (SMEs) in their transition to a socially
and environmentally sustainable business model, and it is a concrete display of Generali’s intent to promote and strengthen the
public and private debate on two main topics:
• the key role of sustainability in supporting the real economy, facilitating SMEs’ long-term success as well a quicker recovery during
crisis;
• the essential need to involve SMEs in the process of sustainable transition in Europe. SMEs represent 99%
74
of European businesses
and employ two thirds of all private sector employees: supporting their sustainable transformation means helping Europe create a
greener, more inclusive and more resilient economy. In recent years, the massive impacts on the real economy, caused first by the
Covid-19 crisis and more recently by the conflict in Ukraine, with the resulting energy crisis, inflation and increasing cost of living,
have required an even bigger effort from public institutions and the private sector.
With the aim of showcasing and increasing awareness regarding these topics, Generali has renewed its commitment to promoting
the SME EnterPRIZE initiative also within its Lifetime Partner 24: Driving Growth strategy, pursuing these goals also in 2023 by
creating a dedicated international event, during which the most successful stories of sustainability integration in the business models
of European SMEs were presented. They were drawn from over 7,600 SMEs from the ten countries involved in the project (+1
compared to 2022)
75
.
The event was held at the end of November in Brussels attended by representatives of the European Commission and Parliament,
and also this year it contributed to promote the key elements of the SME EnterPRIZE project:
Sustainability Heroes
These are ten European SMEs selected on a local level and belonging to different economic sectors
76
, which have more successfully
integrated sustainability into their business models, in the two categories envisaged by the project (Environment and Social). Furthermore,
two out of the ten Heroes received a special mention by an international Advisory Board
77
, which awarded them for their innovative business
models. The presentation of these enterprises at the event in Brussels allowed the spread of good business practices, as well as being a
source of inspiration for other European entrepreneurs involved in the sustainable transition.
White Paper
Generali sponsored research conducted by SDA Bocconi (Milan), which in 2023 examined SMEs’ strategic approach to sustainability,
taking into account the current context, the availability of financial instruments necessary to facilitate the transition, the main obstacles they
face to integrate sustainable practices into their business models, as well as their expectations towards institutions. Furthermore, the paper
includes elements aimed at supporting European institutions in defining their policies on sustainability. In 2023, all these topics were delved
into from the SMEs’ perspective, thanks to a survey carried out by Bocconi University on about 1,200 European SMEs in nine European
countries.
Participation of institutions
The involvement of members of the European Parliament and Commission and representatives of the academic world and private sector
in the project, helping to promote the need to join forces to support the sustainable transition of European SMEs, is an important milestone
for us. The initiative is also supported by a partnership between Generali and CEA-PME, a confederation of voluntarily associated small and
medium-sized enterprises (SMEs), representing 2.4 million SMEs in Europe.
www.sme-enterprize.com for further information
www.sme-enterprize.com/white-paper to consult the document
NFS
74. European Commission Executive Agency for Small and Medium-sized Enterprises (EASME) Annual Report on European SMEs 2018/2019 Research & Development and Innovation by SMEs
November 2019 on Eurostat’s Structural Business Statistics (SBS) data.
75. Austria, Croatia, Czech Republic, France, Germany, Hungary, Italy, Portugal, Slovenia and Spain.
76. Agrifood (1); Construction (1); Food (1); Geoinformatics (1); Manufacturing (1); Services (3); Social businesses (1); Telecommunications (1); Textile (2).
77. Comprised by 4 members, including representatives from the European institutions, NGOs, and the academic world.
Annual Integrated Report and Consolidated Financial Statements 2023
74
Generali Group
Responsible employer
For Generali, being a Responsible employer means embedding sustainability within all people
processes, enabled by a Group People Strategy focused on enhancing a Lifetime Partner, sustainable
and meritocratic culture, building a diverse, equitable and inclusive work environment, continuing to
invest in upgrading the skills of our employees, and enabling an effective organization that embraces
sustainable hybrid work models.
This will also be achieved through a change management program targeting all organizational levels,
because the success of Generali’s sustainable path depends on its people.
GPeople24 - Ready for the Next
Consistently with the Group’s strategic plan, we have developed the Generali People Strategy, GPeople24 - Ready for the Next, which
guides key priorities and initiatives for the period 2022-2024. GPeople24 has been defined through a co-creation process which,
through a blended virtual and in-person approach, involved hundreds of colleagues around the world, at different organizational
levels and from all business units.
With the goal of unlocking the potential of our people and boosting the Lifetime Partner 24: Driving Growth strategy through the
implementation of the Next Normal, four priorities have been defined, supported by dedicated global and local initiatives, along with
clear and continuously monitored indicators and ambitions.
The Group has a framework for assessing and managing operational risks inspired by international best practices and adhering to the
provisions of the Solvency II directive. As part of the assessment conducted annually by Group companies, risks that may impact on the
area pertaining to our people have been identified and punctually analyzed, and the initiatives implemented with the aim of mitigating these
risks have been evaluated. In particular, the areas of analysis have covered the following categories:
• employment relationships, with a particular focus on key people and business ethics;
• occupational safety;
• discrimination, diversity and inclusion;
• new skills and competencies necessary for the realization of the Group’s strategy.
The assessment was confirmed as satisfactory, also in light of the initiatives implemented under GPeople 2024 - Ready for the Next and
the centrality of our people in the Group’s strategy.
Our people
81,879
-0.2%
Women
41,800
+0.9%
Men
40,079
-1.4%
CULTURE
Enhance a Lifetime Partner, sustainable and
meritocratic culture
DEI
Build a more diverse work environment ensuring
equal opportunities and inclusion
SKILLS
Invest in business and digital skills to drive growth and
boost our people impact
ORGANIZATION
NEXT NORMAL
Enable an effective organization embracing sustainable
hybrid work models rooted in digital
Unlock people potential and boost the
Lifetime Partner 24: Driving Growth strategy
NFS
We, Generali
75
Enhance a Lifetime Partner, sustainable
and meritocratic culture
Generali wants to be a sustainable Group in which everyone feels valued, included and ready to better face the future, cultivating
responsible and motivated talents and leaders. To do so, we aim to develop an environment that values sustainability, reinforces a
customer-centric Lifetime Partner mindset, and promotes a meritocratic culture.
Our cultural framework, based on Lifetime Partner Behaviours, together with our values and purpose will continue to be our pillar
in the Next Normal and will lead us to support the Lifetime Partner 24: Driving Growth strategic plan in a sustainable way.
www.generali.com/who-we-are/our-culture for further information on our culture
GENERAL GLOBAL ENGAGEMENT SURVEY AND GLOBAL PULSE SURVEY
To measure and promote the engagement of our people, in 2021 we carried out the fourth edition of the Generali Global Engagement
Survey. Starting from those results, each business unit has addressed the improvement opportunities emerged, identifying 428
local engagement actions. As of January 2024, 93% of these actions have been launched, with the ambition to implement 100%
of them by the end of 2024.
As part of GPeople24 - Ready for the Next, we decided to enhance our employees listening approach with a more active and
regular interaction, increasing the moments to stay in touch with and receive input from our people. For this reason, in 2022 we
introduced the Global Pulse Survey, conducted on an annual basis in the period between each edition of the Global Engagement
Survey, which takes place every three years. Therefore, in 2023 we ran the second edition of the Global Pulse Survey.
MANAGERIAL ACCELERATION PROGRAM (MAP) AND MAP2THENEW
To ensure that all people managers are equipped with essential skills to effectively lead their teams, global managerial training
programs have been launched and successfully completed by all 8,000 people managers within the Group. The Managerial
Acceleration Program and MAP2TheNew programs are based on Lifetime Partner Behaviours and GEM principles, emphasizing
trust, ownership, meritocracy, and accountability, and are also available at local level for the new people managers.
The current need to adapt to dynamic contexts and challenges, embrace innovation and new technologies, and foster sustainability
and inclusion has increased. This is why we are developing a new managerial program set to launch in 2024.
WE SHARE 2.0
In order to promote a meritocratic environment that fosters alignment with strategic goals and people’s participation in the value
creation process, since 2019 Generali developed and launched We SHARE, the first share plan of its kind for Group employees.
Based on the high employee participation in the first edition of the plan and to further promote our culture of ownership, in April
2023 the Shareholders’ Meeting approved a new share plan.
In continuity with the previous edition, the new We SHARE 2.0 plan provides employees with the opportunity to purchase
Assicurazioni Generali shares at favourable conditions within a protected framework, awarding them additional free shares in case
of share price appreciation.
78. It is a measure that summarizes people’s belief in company goals and objectives (rational connection), their sense of pride (emotional connection) and their willingness to go the extra mile to
support success (behavioral connection). It is an index composed by the average result of six specific questions included in the Group Engagement Surveys. The index refers to the Group
companies that decided to join the Global Pulse Survey 2023, representing 87.6% of total employees. The market benchmark refers to Willis Towers Watson’s European HQ Financial Services
Norm.
Engagement rate
78
83%
-1 p.p. compared to 2022
-1 p.p. compared to the market benchmark
~ 72,000 INVITED EMPLOYEES
~ 170 ORGANIZATIONAL ENTITIES
~ 63,000 RESPONDENTS
+ 50,000 OPEN COMMENTS RECEIVED
GLOBAL PULSE SURVEY 2023
NFS
Annual Integrated Report and Consolidated Financial Statements 2023
76
Generali Group
In this new edition, with the aim to embed the Group’s climate strategy objectives and to make the new plan more effective with
respect to the current market context, some enhancements have been introduced:
• the introduction of an ESG goal connected to the CO
2
emissions reduction;
• the allocation of additional free shares linked also to the new ESG goal;
• the broadening of the exercise period, assessing the share price appreciation condition up to 3 times instead of 1;
• the allocation, in case of share price depreciation, of free additional shares linked to the dividends distributed, if the Net Holding
Cash Flow goal is reached.
The We SHARE 2.0 plan, having a duration of indicatively 3 years, was launched in June 2023 and over 23,400 Group employees
from more than 30 countries joined it.
Also in this new edition, Generali renewed its support to The Human Safety Net Foundation by making a donation for each
employee joining the plan, with the opportunity for participants to do the same. This is a demonstration of the Group’s commitment
towards the shared purpose of enabling people to shape a safer and more sustainable future by caring for their lives and dreams.
We SHARE 2.0 is a tangible sign of Generali’s drive to promote across the Group employee engagement towards the achievement
of strategic objectives, a culture of ownership and empowerment, and their participation in Group sustainable value creation.
TALENTS’ GROWTH
To drive Generali’s growth in today’s increasingly challenging economic and geopolitical scenario, there’s a need for effective
leaders and promising talents, which is why we continuously invest in their development. Being a role model for the Group,
talents require the necessary technical and managerial skills and right mindset to successfully implement business transformation,
incorporate sustainability, and act swiftly to drive innovation, DEI, and cultural evolution in the Next Normal.
Therefore, we always strive to provide development opportunities to our talents, which include both new generations and senior
leaders, to support them in leading people and organizations, ensuring our business results for long-term competitiveness. In
July 2023, an intensive external and internal listening activity was completed involving all the business units: in order to effectively
respond to current business needs and future priorities, a strong convergence emerged about the need to evolve the way we
define, identify and develop talents. To enhance the potential of our people and concretely support their careers, we continued to
promote and strengthen our global internal mobility platform (We GROW).
The goal of We GROW is to accelerate the growth of our Group talents as future leaders of Generali through diversified international
and cross-functional professional experiences, empowering them to take responsibility for their own career development.
Moreover, we have continued to strengthen our leadership development proposals for our leaders, through the launch of:
• 360° feedback survey: a leadership development tool to further develop leaders’ self-awareness within the Group, enhance
their decision-making abilities in uncertain situations, and encourage them to act as role models, promoting an inclusive work
environment.
• Leadership Program 2023: a 5-day program in partnership with MIT to explore the challenges and opportunities of the new
macroeconomic context, embrace innovative work paradigms, and delve into relevant topics such as sustainability, Generative
AI, and new technologies through a mix of interactive lectures and visits to leading companies in the Boston and Cambridge
business hub.
Build a more diverse work environment ensuring
equal opportunities and inclusion
Diversity, Equity and Inclusion (DEI) are fundamental for our Group to promote a welcoming, respectful, safe and supportive
environment where people feel free to express their best selves and unleash their potential. For this reason, DEI is an integral part
of the way we work and do business every day and is supported by a structured governance and an annual monitoring process
designed to support countries and business units in assessing the progress and impact of specific actions needed to achieve the
Group’s ambitions.
DIVERSITY
In terms of our commitment to fostering an increasingly diverse work environment, we focused on two main areas: gender diversity
and generational diversity.
With regard to gender, we aim to maintain a balanced distribution within the Group. In addition, we have a clear ambition to
increase the presence of women in strategic positions, reaching 40% at Group level by the end of 2024, and to increase the
presence of women in managerial roles.
NFS
We, Generali
77
We continue to be committed both at Group and local level to a series of concrete initiatives in order to reach our ambition.
Thanks to the two editions of our programs targeting senior women managers (Lioness Acceleration Program) and managers
(Elevate), we supported more than 50 women through training, coaching, and formalized mentoring and sponsorship programs,
fostering their development and career progression to nurture the Group’s leadership pipeline. In 2023 we launched TOGETHER,
our first global Women & Allies network aimed at fostering an equitable culture across the organization and increasing awareness
around gender equality. The network, open to all employees and accessible on We LEARN, aims at creating space and opportunities
for women, allies and colleagues to learn and encourage the advancement of skills and growth as professionals and human beings.
It seeks to increase collaboration, build relationships, recognize achievements, and enhance interpersonal and organizational
understanding and awareness. The main objective of the network is to ensure that diverse perspectives are considered and shared:
the pivotal role of allies stands as an indispensable cornerstone in our pursuit of gender equality, recognizing and celebrating the
valuable contributions of both women and their allies to realize our ambitions.
TOGETHER hosted a series of events on several topics (e.g. allyship, limiting beliefs, personal brand, key role of gender equality
in sustainability) and trainings (speak-up, negotiation for women & allies), involving people from all over the Group, Generali CEOs
and leaders, who shared their views and experiences.
In addition to these Group initiatives, approximately 100 actions were implemented locally, including women mentoring programs,
development acceleration and return-to-work after maternity leave initiatives, development activities with external partners (Valore
D, PWN, Capital Filles, FinŽeny), scholarships and job orientation events dedicated to female students in STEM subjects.
Regarding generational diversity, we aim to ensure balance and coexistence among the different generations in the Group,
promoting the exchange of expertise at all levels to attract, retain and engage our people. For this reason, we celebrated at Group
level the closure of the first edition of our Reciprocal Mentoring Program, involving more than 400 employees with different levels
of experience, aimed at enhancing the know-how of our people and promoting intergenerational dialogue and an international
mindset.
The Future Owners program, targeting talents from all over the world with a maximum of 7 years of professional experience,
continued to provide training, mentoring, networking initiatives, as well as international cross-functional projects until June 2023,
when more than 200 participants came together with senior leaders in a virtual event to celebrate achievements and discuss future
challenges.
These programs are complemented by more than 50 locally launched actions, including generational awareness workshops,
cross-generation cooperation initiatives, reverse mentoring programs, employer branding activities for talents and programs
focused on more experienced colleagues.
www.generali.com/sustainability/responsible-employer/diversity-and-inclusion for further details
EQUITY
We are committed to having fair processes in order to ensure access to equal opportunities for all Group employees throughout
their work experience. In addition, we work to ensure that there is no discrimination and that any institutional barriers or unconscious
biases are eliminated to enhance the potential of each person so that they can fully contribute to the success of our Group.
Together with our European Works Council (EWC), the body representing more than 60,000 employees within the EU perimeter
of the Group, we signed the Joint Declaration on Diversity, Equity & Inclusion, representing the follow-up of the former Joint
Declaration on D&I of 2019.
The new document acknowledges and promotes diversity, equity and inclusion within our Group to foster a workplace that values
and respects equal opportunities and cultivates people’s sense of belonging. We aligned the document with our new DEI strategy’s
priorities, introducing the concept of equity to highlight the importance of fair processes and opportunities for all. Furthermore, we
reaffirmed our commitment to fostering a speak-up culture, where our people are encouraged to voice their concerns and report
any instances of inappropriate behaviour. Lastly, we decided to dedicate a mention to the existence and the value of Employee
Resource Groups (ERGs), our employee-led groups whose aim is to foster a diverse and inclusive workplace aligned with the
organizations they serve.
Women in strategic positions
79
34.8%
+5.4 p.p.
79. The indicator refers to women in Group Management Committee (GMC) and Generali Leadership Group positions and their first reporting lines. The delta was calculated on data at year-end
2022, which was restated due to the inclusion of positions in companies previously excluded.
NFS
Annual Integrated Report and Consolidated Financial Statements 2023
78
Generali Group
To accelerate the pace of transformation, we have launched the DEI Engagement Program, a change management program
which engages multiple stakeholders - GMCs, CEOs, GLGs, the whole Group DEI Council and our HR Community - to reflect on
diversity, equity & inclusion. The program focused on leveraging neuroscience research findings to explain why DEI matters and
how unconscious bias impacts decisions across multiple processes, as well as on sharing practical examples of impactful best
practices.
All the above-mentioned initiatives carried out at Group level are complemented by more than 50 local actions aimed at promoting
equity in the workplace.
Gender balance and pay equity
In order to promote a culture based on gender balance and pay equity, since 2020 specific analyses have been conducted at local level
by applying a common methodology for the Group, focusing on equity in terms of the gender pay gap for same work or work of equal
value (equal pay gap) and across the entire organization, regardless of roles (gender pay gap).
In 2023, we consolidated our advanced data analytics model based on multiple regression and worked to further improve the results in
terms of equal pay gap, continuing to monitor the results of gender pay gap and accessibility gap to variable remuneration.
Compared to 2022, the equal pay gap result has improved, i.e. the difference between males’ and females’ base salary for the same
work or work of equal value decreased by 0,7 p.p.. The result of gender pay gap and the accessibility gap to variable remuneration
increased respectively by 2.0 p.p. and 0.3 p.p., due to the inclusion of new companies in the analysis.
Report on remuneration policy and payments for further details
Based on the results of the analyses, all countries and business units will continue to develop specific actions at local level, with the aim
of structurally reducing the gender pay gap and supporting our ambition to achieve an equal pay gap towards zero in the strategic cycle
2022-2024. These actions include initiatives aimed at having a positive impact on gender balance and pay equity, both locally and in
relation to the Group’s diversity, equity and inclusion strategy.
In order to support countries and business units on this path, an annual recurring monitoring process is in place in order to assess
improvements throughout the entire organization and the impact of the actions taken and to prevent the gaps from arising in the future.
INCLUSION
We promote mindsets, behaviours, processes and practices that fully embrace all the diverse identities in our organization:
genders, sexual orientations, ages, abilities, cultures, ethnicities, opinions, personal characteristics, to create an environment
where everyone can unleash their full potential and feel valued, respected and able to contribute their talents to the innovation,
growth and success of our business.
This goal is achieved through a series of initiatives and actions aimed at strengthening an increasingly inclusive corporate culture.
The areas of intervention concern awareness raising initiatives, communication campaigns and trainings, as well as concrete
projects aimed at accompanying the evolution of our Group.
Our communities and Employee Resource Groups (ERGs) play a fundamental role in raising awareness and fostering dialogue. Our
Group Diversity, Equity, and Inclusion Community of Practice (CoP), which comprises over 300 members, aims to bridge the gaps
between functions and geographies. Through its activity, the community raises awareness about DEI topics, shares internal and
external best practices, scales up local projects, and co-creates innovative initiatives. This year, the CoP organized multiple events
covering topics such as gender equality, inclusive language, and disability inclusion. Additionally, it facilitated various listening
sessions to promote dialogue, identify employee needs and desires, and create moments of mutual support.
Equal pay gap
80
0.9%
-0.7 p.p.
Gender pay gap
80
14.5%
+2.0 p.p.
Accessibility gap to variable remuneration
between males and females
80
2.0%
+0.3 p.p.
80. The indicators refer to all consolidated line-by-line companies or aggregated business units with more than 200 employees, excluding a few exceptions due to business or local context
peculiarities.
NFS
We, Generali
79
Our Group benefits from two global ERGs: TOGETHER - our Women & Allies network - and WeProud - the LGBTQI+ ERG
established in 2020, which now boasts about 1000 members. WeProud continues to raise awareness on inclusion topics and
advocate for LGBTQI+ rights. This year, with their support, Generali participated in the 2023 Pride Month celebrations, joining
for the first time the Milano Pride Parade. Together with numerous local initiatives launched across the Group, this commitment
demonstrated our dedication to raising awareness and advocating for inclusion in our workplace, recognizing and valuing our
diverse identities and uniqueness.
In addition to the two global ERGs, there are over 20 local ERGs focused on DEI topics, including gender, LGBTQI+, cultures,
parenthood, and disability. These ERGs serve as vital platforms, fostering a sense of belonging and community among employees
who share similar backgrounds or identities. Within these groups, employees find a supportive environment that encourages
networking, facilitating valuable connections and collaborations across different departments, ultimately making ERGs a precious
source of constant inputs to foster innovation.
An important role is played by the Beboldforinclusion and Disability Week campaigns. These initiatives are orchestrated at
Group level and consist of internal and external communication campaigns as well as a simultaneous organization of events
in all business units attended by the respective CEOs. At Group level, our Beboldforinclusion campaign valued all Generali
DEI ERGs and communities to celebrate our people’s commitment towards networking and inclusion, while we celebrated the
International Day of Persons with Disabilities, sharing our public pledge to promote disability inclusion both within our organization
and across the broader business community. We also organized a dedicated session for our Diversity, Equity and Inclusion
Community of Practice, promoting reflections on the broad spectrum of disabilities and providing inspiring best practices in
disability management.
We continued to support the inclusion of the diverse abilities of our employees, promoting workplace accessibility and inclusive
practices so that persons with disabilities feel able to contribute their talents on an equal footing with their colleagues. In this regard,
we proudly created our Accessibility Manifesto, a guide that establishes the leading principles to provide our stakeholders with
accessible digital products, and we carried out an accessibility assessment of our global digital assets to comply with regulatory
requirements. Since 2022, the Group is also member of Valuable 500, a global collective of 500 CEOs, whose mission is to use
the power of global business to drive lasting change for all people living with a disability. Thanks to the international reach, network
and best practices of Valuable 500, we participated in Generation Valuable, a program aimed to address the gap in disability talent
at all levels by creating an opportunity for leaders to support future executives with disabilities. In addition, all business units have
implemented a series of actions on disability at local level, including initiatives to improve accessibility, specific training projects,
as well as the establishment of partnerships with companies and associations aimed at identifying persons with disabilities to be
involved in job shadowing programs and training internships.
In 2023 we organized a second edition of our DEI Talk, an event open to all employees with the aim of establishing an open
dialogue with the leadership specifically on strategy, ambitions and actions related to diversity, equity and inclusion.
The Group’s initiatives are complemented by more than 300 locally organized inclusion actions, including communication
campaigns on unconscious bias, awareness raising programs, corporate wellness activities, numerous collaborations with
LGBTQI+ associations and disability associations.
Invest in business and digital skills to drive growth
and boost our people impact
We provide our people with the knowledge and tools to continue to grow and support strategic business priorities in a sustainable
way, enabling them to define their own customized training path based on their specific needs.
Considering the total training available to Group employees, all of them were involved in at least one training program.
Average training hours per capita
81
34.4
+7.3%
Training investment
81
€ 61.7 mln
+2.0%
The average training hours per capita increased due to the launch of new training programs at a global level (e.g. Strategic
Learning Campaign on Sustainability) and locally in different geographies.
Total training investment increased mainly due to a growth in in-person learning, which is more expensive than digital training, as
well as the launch of new training programs both at a global and a local level.
81. The indicators refer to consolidated line-by-line companies, excluding a few limited exceptions due to business or local context peculiarities. They represent 98.4% of total employees.
NFS
Annual Integrated Report and Consolidated Financial Statements 2023
80
Generali Group
The sustainable ambition to become a Lifetime Partner to our customers, the ever-changing external environment and the
accelerating path of diffusion of new technologies require us to continue to invest in building and evolving core competencies for
transformation through innovative approaches.
We will continue to invest, providing our people with cutting-edge skills to drive growth and transformation and make a difference
in the new digital era, enabling us to thrive in the Next Normal and increase the impact and employability of our people.
We launched and implemented an upskilling journey that in three years time will reach 70% of our employees on a new catalogue
of skills, competencies, and behaviours - with a renewed focus on sustainability and data-driven innovation.
Upskilled employees
82
68%
+33 p.p.
The Group’s extensive upskilling program aims to equip our people with the new business, digital and behavioural skills needed
to continue to grow in the digital age, succeed in the future market environment and support the Group’s strategic priorities. It is
based on the following components, whose content is constantly evolving:
• strategic workforce planning: improve the approach to strategic workforce planning to gain a clearer understanding of the
new roles and capabilities needed to successfully execute the Group Strategy and activate consistent HR action plans to drive
upskilling, sourcing, and reskilling;
• upskilling: provide our employees with the latest and most relevant skills to perform best in their current or new role by launching
new courses and adopting a new skills assessment solution;
• Global Strategic Learning Campaign: spread awareness of the Group Strategy, strengthen a customer-centric mindset, promote
sustainability at the core of everything we do, and spread the adoption of new ways of working;
• professional learning ecosystem: expand our learning ecosystem through the creation of collaborations with highly specialized
partners, such as the Data Science & Artificial Intelligence Institute, with the aim of conducting research initiatives and fostering
increased knowledge and contamination in machine learning, data science and artificial intelligence;
• Learning Organization culture: build a learning organization culture in which people feel responsible for their upskilling journey,
taking advantage of the enhanced features of the We LEARN platform, new devices such as the mobile app, and benefiting from
a hybrid approach to learning, both virtually and gradually physically.
These training initiatives arise from a strong collaboration between the Group Academy and the Group’s business units. They also
draw on a network of more than 500 internal experts involved in providing content, developing learning objects (e.g. videos and
interviews), and conducting classes, in addition to collaborating with key external suppliers. The We LEARN Champions, which are
ambassadors spread across 50 countries and business units, support participation and engagement in training through activation
initiatives and Group learning sessions.
To ensure a common learning experience, the We LEARN platform - successfully implemented in more than 40 countries - is based
on the best cloud technology solutions and aims to provide employees with Group-designed content, enabling comprehensive
coverage of different types of training and emerging technologies (e.g. playlists, communities, and external and customized
digital training offerings). We LEARN is key to meet the Group’s upskilling ambitions, but it is also an open strategic setup to meet
country-specific training needs.
In the current context of Next Normal and continuous change, training on digital and transformation skills is even more strategic and
a priority for the Group; therefore, the training effort through We LEARN has been accelerated and the scope of employees involved
in each course has been higher compared to the previous strategic cycle. The focus on innovation and digital transformation taking
place in the current environment has led to a profound renewal of the Group’s training activities. Training has been focused on
digital transformation skills and reorganized, particularly through virtual classes and digital modules, coupled with a return to in-
person training where appropriate.
82. Participation in the program derives from a managerial choice of each Group company. The indicator, therefore, refers to 75.4% of total employees.
NFS
We, Generali
81
Enable an effective organization embracing sustainable
hybrid work models rooted in digital
In line with its vision and with the principles inspiring the strategic plan, Generali is continuing to optimize its organizational assets
with the ultimate goal of maintaining and strengthening its ability to adapt and evolve, seizing emerging opportunities through an
agile, effective, and digitally-enabled organization.
In this context, Generali is continuously fine-tuning its Next Normal, based on hybrid, flexible, and sustainable work models,
enhancing the potential of our people, boosting the ambition of the business strategy, and delivering benefits to all the stakeholders
involved.
Our Next Normal Manifesto and its seven Group key principles, which outline our vision and incorporate our Lifetime Partner
Behaviours, are successfully guiding Generali in shaping the future of our ways of working across all relevant dimensions.
The ambition to have 100% of our Group’s organizational entities implementing hybrid work models inspired by the Group’s
principles, already achieved in 2022, was confirmed in 2023.
Entities working hybrid
83
100%
0.0 p.p.
The Generali Global Pulse Survey 2023 confirmed Generali’s people’s positive attitudes towards hybrid work models in the Next
Normal, with an overall favourable score of 84% in the relative Next Normal survey section; furthermore, 97% of respondents
affirmed that the team’s performance and the company’s ability to innovate increased or remained stable while working hybrid.
During 2023 there was a total resumption of in-person work while maintaining the possibility of benefiting from the technological
capabilities made available by the Group and its subsidiaries to carry out remote connections and hybrid meetings. This allowed
social dialogue to remain at a high level of interlocution.
We held seven meetings with the European Works Council at the permanent forum dedicated to social dialogue. Confirming the
centrality of people in our strategy and in line with the path undertaken during and after the pandemic, which led to the rethinking
of the organization of work to adapt to a new normal context, in February 2023, a Joint Declaration on the new sustainable way of
working in a Next Normal scenario was co-signed with the EWC. This declaration contains a series of principles aimed at promoting,
among others, sustainable ways of working based on trust and empowerment as well as work-life balance and enhanced Group
performance. Finally, in November 2023, a further Joint Declaration on Diversity, Equity & Inclusion was defined, integrating the
previous declaration on D&I signed in 2019.
Our strategy, Responsible employer, p. 77 for further information on the Joint Declaration on Diversity, Equity & Inclusion
www.generali.com/our-responsibilities/Generali-people-strategy/social-dialogue for further details
Our commitment to the decarbonisation of our operations
As a responsible employer, the Group is working to measure and reduce the carbon footprint of its operations, demonstrating
consistency with what is also required to insured and financed companies.
Looking at best market practices based on climate science, we are committed to reducing scope 1, 2 and 3 GHG emissions
related to Group offices, data centers and corporate mobility by at least 35% by 2025 compared to levels measured in 2019,
using the GHG Protocol in the market-based approach for scope 2. This reduction will be pursued through innovation and
space optimisation projects related to workplaces, improving energy efficiency and leveraging the purchase of 100% electricity
generated from renewable sources, where available. Finally, the share of hybrid and electric vehicles in the company car fleet will
be increased.
.
83. The indicator refers to consolidated line-by-line companies, excluding a few limited exceptions due to business or local context peculiarities.
NFS
Annual Integrated Report and Consolidated Financial Statements 2023
82
Generali Group
In the medium and long term, the Group will continue with the reduction of residual emissions, setting the ambitious goal of reaching
net-zero status by 2040 through carbon removal projects aligned with the most reliable protocols, the emerging regulations, and the
latest scientific information.
84. GHG emissions are calculated in accordance with the GHG Protocol - Corporate Accounting and Reporting Standard and represent 100% of the Group’s workforce linked to emission sources in
operational control (85.8% measured and 14.2% extrapolated). The measured data represent the following organisational units: Argentina, Austria, Bulgaria, Banca Generali, Chile, Croatia, Czech
Republic, Europ Assistance, France, Germany, Greece, Hungary, India, Italy, Poland, Portugal, Romania, Slovakia, Slovenia, Serbia, Spain and Switzerland. The GHG emissions of organisational
units not included in this list have been extrapolated. The growth of the reporting perimeter (+6.8% in terms of the Group’s workforce compared to 2022) made it necessary to restate the entire
trend from 2019. The gases included in the calculation are CO
2
, CH
4
and N
2
O for combustion processes and all climate-altering gases reported in the IPCC AR4 for other emissions (long-lived
greenhouse gases - LLGHGs).
85. Electricity purchased from renewable sources accounts for 85.8% of the Group’s workforce, referring to the same measured organisational units for GHG emissions. The growth of the reporting
scope made it necessary to restate the entire trend starting in 2019.
PURCHASE OF RENEWABLE
ELECTRICITY
BUILDINGS
ELECTRIFICATION OF THE
COMPANY CAR FLEET
MOBILITY
ENHANCE DIGITALIZATION AND
PAPERLESS SOLUTIONS
PAPER
SPACE OPTIMIZATION AND
BUILDING EFFICIENCY
HYBRID WORK
REDUCE BUSINESS TRAVEL
INCREASE TRAIN TRAVEL OVER
FLIGHTS AND PRIVATE CARS
REDUCE PAPER
CONSUMPTION
GHG emissions from Group operations (Scope 1, Scope 2 and Scope 3)
84
90,366 tCO
2
e
-33.4% vs 2019 (baseline)
GHG emissions from Group operations
84
Key Performance
Indicator (tCO
2
e)
Definition
2019
(baseline)
2023 Change
2019/2023
Scope 1 (A)
Scope 1 emissions are direct GHG emissions that occur from sources controlled or owned by
Generali (for example, emissions associated with combustion in heaters and company fleet
vehicles).
47,977 36,052 -24.9%
Scope 2
(market-based) (B)
Scope 2 emissions are indirect GHG emissions associated with the purchase of electricity, steam,
heat or cooling. These emissions are generated by the energy suppliers of the Generali. The
difference between market-based and location-based emissions is that the former is based on the
electricity that Generali has chosen to purchase, while the latter is based on the carbon intensity of
the local electricity grid.
21,858 13,597 -37.8%
Scope 2
(location-based)
75,172 54,991 -26.8%
Scope 3 (*) (C)
Scope 3 emissions are all indirect GHG emissions (not included in Scope 2) that occur in Generali’s
value chain, including upstream and downstream emissions.
65,855 40,717 -38.2%
TOTAL (A + B + C) 135,690
90,366
-33.4%
(*) Including the following categories from the GHG Protocol: Category 1 Purchased Goods and Services, Category 3 Fuel- and energy-related activities, Category 5 Waste generated in operations,
Category 6 Business Travel. Category 15 Investments is accounted in Our strategy, Responsible investor.
www.generali.com/sustainability/our-commitment-to-the-environment-and-climate for further details and updates
Electricity purchased from renewable sources
85
Key Performance Indicator
2019
(baseline)
2023 Change
2019/2023
Electricity purchased from renewable sources (MWhel) 119,936 87,415 -27.1%
Renewable electricity out of total purchased electricity (%) 82.1% 87.1% +5.0 p.p.
The Group pursues its commitment to convert all its electricity supply contracts to certified renewable energy. The trend shown in
the table documents the reduction in energy use and the simultaneous increase in the share of renewable energy, which in 2023 is
the 87.1% of the total, up 5.0 p.p. from the baseline.
NFS
Electricity purchased from renewable sources
85
87.1%
+5.0 p.p. vs 2019 (baseline)
We, Generali
83
Responsible citizen
As a responsible citizen, we want to further enhance the activities of The Human Safety Net by
working with our people and promoting voluntary activities..
The Human Safety Net is a social innovation hub for the community dedicated to unlocking the potential of people living in
vulnerable conditions, improving their lives and those of their families and communities. Since 2017 it brings together most of the
Group’s social impact activities and is connected to our purpose by extending it beyond our customers to the most vulnerable in
our communities.
It is a vital component of Generali’s commitment to sustainability and to the achievement of the Sustainable Development Goals.
To support more people and impact their lives, The Human Safety Net mobilises Generali’s network of employees and agents,
activating their expertise and their financial and technical resources towards common goals. Its two programmes support families
with young children (0-6 years) and contribute to including refugees through employment and entrepreneurship. It also works with
a network of NGOs and social enterprises that share the same mission.
To support the transition of these organisations on a national or regional scale, replicating models with the most significant social
impact, since 2020 The Human Safety Net implements Scale-Up Impact, a multi-year initiative that, in partnership with other
actors of public, private and social sectors, promotes the development of high-impact and replicable projects.
Given the intention to build an open network with global actors, The Human Safety Net continues to carry out its activities in
collaboration with numerous co-funding partners, including, but not limited to, VISA Foundation, Fondazione Italiana Accenture,
JPMorgan Chase Foundation, Hogan Lovells, helping to amplify the impact of our programmes through financial contributions,
in-kind contributions, and pro-bono consultancy.
The Human Safety Net aims to impact one million lives by 2027. The goal of generating a long-lasting transformation in people’s
lives is the guiding star that steers all the activities within The Human Safety Net’s community. The aim is to forge deep partnerships,
based on co-creation and extending beyond grant-making, by mobilising the resources and capabilities of organizations, as well
as by promoting public private partnerships. This is also done by exploring innovative ways corporations can leverage their core
business for social impact.
Following internal guidelines, each Group company can activate one or both programmes by carefully selecting its partner through
a thorough due diligence process. All activities and impacts achieved are monitored within a shared measurement framework which
tracks collective results and triggers mutual learning based on the Business for Societal Impact (B4SI) international standards.
NFS
Annual Integrated Report and Consolidated Financial Statements 2023
84
Generali Group
For Families
We support parents living in vulnerable contexts during the first six years of
their children’s lives to build a solid foundation for their future.
For Refugees
We support the inclusion of refugees in host countries through employment
and entrepreneurship.
After a thorough restoration work supported by Generali, the Procuratie Vecchie in Piazza San Marco, Venice, opened its doors to
the public for the first time in its 500 years’ history. The third floor hosts the Home of The Human Safety Net.
In 2023, the Home of The Human Safety Net has been involved in over 100 international events to meet and discuss social impact
issues with some of the biggest names of the social impact world, such as Porticus, European Venture Philanthropy Association
(EVPA), UNICEF, and Vital Voices, positioning itself as a hub for unique events and bringing together the worlds of art, social impact,
activism, and philanthropy. The restored Procuratie Vecchie, open six days a week, is becoming an important centre for the local
community where partners deliver workshops, meetings, and activities for children.
Over the next years, we aim to further extend the impact and reach of The Human Safety Net in communities. We will accelerate our
impact on several fronts by:
• engaging Generali employees, particularly through the role played by nearly 500 The Human Safety Net Ambassadors in the
countries;
• launching the new official role of Generali Engaged Agent for the Community, a first step in making The Human Safety Net part of
Generali’s value proposition for clients, and a medium to the engagement of customers in the movement;
• strengthening the open net concept, increasing the number of collaborations with organisations that share our mission;
• further strengthening the measurement of the social impact of our projects, contributing to the development of the social sector;
• maintaining our role as a thought leader in the social sector, also thanks to the amplifying role of the Home of The Human Safety
Net in Venice..
www.thehumansafetynet.org for further information on the initiative and read the stories of parents, children and refugees supported by The Human Safety Net
86. The indicator also includes countries in which we operate through companies other than consolidated line-by-line.
ARGENTINA
AUSTRIA
BULGARIA
CHILE
CROATIA
CZECH REPUBLIC
FRANCE
GERMANY
HONG KONG
HUNGARY
INDIA
INDONESIA
ITALY
LUXEMBOURG
MALAYSIA
PHILIPPINES
POLAND
PORTUGAL
ROMANIA
SERBIA
SLOVAKIA
SLOVENIA
SPAIN
SWITZERLAND
TURKEY
VIETNAM
Active countries
86
26
+8.3%
Active partners
77
0.0%
NFS
We, Generali
85
Financial education in the For Families programme
The Human Safety Net, together with Aflatoun, published a study in 2021 that provides the evidence for the importance of financial
education in early childhood parenting programmes and addressed some gaps in the delivery mechanisms. In 2022 The Human Safety
Net, in partnership with UNICEF and Aflatoun, implemented the Enhancing Parenting Support with Financial Literacy pilot project in
Indonesia and Italy. In 2023 The Human Safety Net was able to enhance its commitment to the Financial Education for Families project by
further growing the programme in Italy and expanding it to five new countries (Germany, France, Spain, India, and Poland), allowing parents
to improve their ability to set priorities for the family budget and engage in long-term planning for their children’s future. The project was
made possible and funded through the generous contributions of the Group’s employee share plan, We SHARE 2.0.
Our strategy, Responsible employer, p. 75 for further information on We SHARE 2.0
NFS
Annual Integrated Report and Consolidated Financial Statements 2023
86
Generali Group
OUR RULES FOR RUNNING BUSINESS
WITH INTEGRITY
We run our business in compliance with the law and regulations, internal codes, and principles
of professional ethics. We are continuously monitoring the developments of the national and
international regulatory system, also by talking with legislators and the institutions, in order to assess
both new business opportunities and our exposure to the non-compliance risk and to identify and
implement prompt measures to adequately manage it. We have a governance, management and
reporting system that guarantees compliance with the principles of sustainability and their actual
and continuous integration in corporate decision-making processes.
In line with the applicable European and Italian regulation, the Group manages the non-compliance risk by implementing an effective
internal control and risk management system.
We define the non-compliance risk as the risk of facing sanctions, economic losses or reputational damages as a consequence of
breaching laws, regulations, provisions issued by supervisory authorities or self-regulating norms.
In this context, the main non-compliance risks are monitored by specific compliance programs, which include internal regulatory
measures, specific control measures, training programs, monitoring of specific indicators, the adoption of specific policies, the
definition of control activities, as well as the identification and implementation of proper risk mitigation measures aimed at minimizing
potential reputational and economic damages deriving from non-compliance with applicable regulatory provisions.
Special attention is paid to conduct risk (correctness of relationships with clients) and to market integrity.
The constant monitoring of both national and supranational legislation highlighted in 2023 the continuous issuance of customer
protection rules, with particular reference to the proper definition and monitoring of the insurance product value for the customer
(value for money), the publication of the proposals relating to the so-called Retail Investment Strategy, the wide review proposal
of Solvency II regulation, the proposal of Corporate Sustainability Due Diligence Directive, and the increasing requirements on IT
security and ICT (information and communication technology) governance, with the introduction, among others, of EU Regulation
2022/2554 (Digital Operational Resilience Act). Moreover, it is noted the proposal of European regulation on artificial intelligence and
the ongoing definition of the ESG requirements applicable to financial operators’ corporate processes.
In this respect, the Group has established and monitored the process of implementing the European legislative provisions, in
particular those introduced by EU Directive 2022/2464 on corporate sustainability reporting, by Regulation EU 2019/2088 on
sustainability-related disclosures in the financial services sector (known as Disclosure Regulation), by Regulation EU 2020/852 on
the establishment of a framework to facilitate sustainable investment (known as EU Taxonomy Regulation), by the integration into
Solvency II of sustainability risks, and by the integration into the Insurance Distribution Directive (IDD) of sustainability factors, risks,
and preferences.
We have a structured Group’s internal regulatory system, regulated by the Generali Internal Regulation System (GIRS) Group Policy
that aims to promote a solid, efficient governance and coherent implementation of the Group’s internal regulations at local level. The
Group Policy defines the hierarchy of Group internal regulations and the roles and responsibilities within the process governing the
relevant life cycle, including the responsibility of Group functions in monitoring their implementation and the responsibility of Group
legal entities in providing data on their local approval and implementation status.
The Group regulations are consistent with the values and the Code of Conduct of the Group, and are organized in 3 levels as detailed
below:
NFS
They introduce and discipline principles pursued to implement the Group’s fundamental objectives and/or provisions related
to the Group system of governance. They are issued to fulfill specific regulatory requirements or discipline matters falling
withinthe Board of Directors’ field of competence.
They discipline matters falling within the powers delegated to the Group CEO or the Group heads of Key Functions.
They outline operational provisions with a cross-functional impact, including those further disciplining matters
introduced by a Group Policy or a Group Guideline. They are issued by the head of the Group functions in line
with the Group system of governance.
Group Policy
Group Guideline
Group Technical Measure
Corporate Governance and Share Ownership Report 2023, p. 36
We, Generali
87
Within the broader framework of the GIRS Group Policy, in which all the policies and guidelines are made available internally, a set
of documents that support our operations in a sustainable and responsible manner is made public.
www.generali.com/sustainability/our-rules
GROUP SUSTAINABILITY POLICY
It defines how sustainability is managed through the Group Sustainability Framework; in particular: the direction Generali wants
sustainability to evolve into and the underlying principles driving the strategic choices and their execution; the identification and
prioritisation of sustainability matters through a materiality assessment and their integration into key business processes; the
underpinning elements necessary to enable sustainability integration.
POLICY FOR ENGAGEMENT WITH INVESTORS AND OTHER RELEVANT STAKEHOLDERS
It regulates engagement between the Board of Directors and representatives of investors and other relevant stakeholders on
issues within the Board’s purview, and defines the rules for engagement by identifying interlocutors, discussion topics, timing and
channels.
SECURITY GROUP POLICY
It defines the processes and activities suitable for the purpose of guaranteeing the protection of corporate assets.
CODE OF CONDUCT
It defines the basic behavioural principles which all the personnel of the Group are required to comply with. These principles are
outlined in specific internal regulations that refer, for example, to the promotion of diversity, equity and inclusion, fair competition and
antitrust, conflicts of interest, bribery and corruption prevention, money laundering, terrorist financing and international sanctions
violations, as well as personal data protection.
Compliance Week
The 2023 edition of our annual Compliance Week, addressed to all the employees of the Group, was aimed at focusing on the risks and
opportunities related to data management with a special Group event that was endorsed by the top managers and saw the participation
of the Chairman, the Group CEO and the General Manager, along with other leaders. They all shared their views and insights on how
the Group can leverage the potential of data while embracing its ethical responsibilities to protect its customers and stakeholders in an
increasingly data-driven world.
During the week from 25 to 29 September 2023, awareness initiatives and events were organized by the local Compliance functions to
spread the messages and values of compliance.
The Code of Conduct constitutes the foundation of the Group’s cultural identity and sets out the fundamental conduct rules
that must be adopted. The Group encourages not only its employees, but also third parties who interact with the Group itself to
report possible violations of the Code of Conduct or situations even potentially in breach of the Code of Conduct. We pursue a
rigorous policy that does not tolerate any form of retaliation and that guarantees confidentiality of allegations. People can choose
different ways to report a concern, including the Generali Group Whistleblowing Helpline, a secure and confidential web platform
active 24/7. The internal whistleblowing channel ensures an objective and independent management of whistleblowing reports
of behaviours or actions which may potentially violate the law, the Code of Conduct, the internal rules or other corporate rules, in
accordance with the process on managing reported concerns and the anti-retaliation policy, in force since many years..
www.generali.com/sustainability/our-rules/code-of-conduct for further information on the Code of Conduct,
communication channels and the process on managing reported concerns
www.youtube.com/watch?v=J-m_VSwkSTI
Whistleblowing reports on
the Group Code of Conduct
194
+67.2%
The gradual increase in the number of reports received in the Group in the last two years is reasonably due to the renewed
training and communication initiatives widely adopted by the Group entities, also due to the progressive entry into force of the local
implementing regulations of the European Whistleblowing Directive.
NFS
Annual Integrated Report and Consolidated Financial Statements 2023
88
Generali Group
The allegations received in 2023 concern: business conduct issues such as ethical and sustainable culture (62), discrimination,
harassment and retaliation (49), internal fraud of administrative personnel or intermediaries (24), conflicts of interest (19), external
fraud (13), distribution (9), customer relationship (4), HR administration (6), bribery and corruption (2), assets and business data
protection (2), money laundering (2), remuneration (2). In 2023, there were no allegations related to other topics beyond those
listed.
170 allegations were closed in 2023, of which 57 substantiated leading to the adoption of the following main measures: dismissal
or termination of the contract (18) and warnings (25).
The monetary value of damages stemming from the above cases is considered non-material.
We are committed to making our training system increasingly effective, continuously working on activities for creating awareness
and training on the different themes of the Group Code of Conduct.
We continue to provide the e-learning courses on the Group Code of Conduct: one to introduce the topic and addressed to new
colleagues and one as a refresher course for those who had already attended the introductory one.
Employees who completed the training
course on the Code of Conduct
87
73,048
+11.6%
ETHICAL CODE FOR SUPPLIERS
It highlights the general principles for the correct and profitable management of relations with contractual partners.
INTEGRATION OF SUSTAINABILITY INTO INVESTMENTS AND ACTIVE OWNERSHIP GROUP GUIDELINE
It codifies the responsible investment activities at Group level and defines the principles, main activities and responsibilities that
guide the Group’s role as active owner.
RESPONSIBLE UNDERWRITING GROUP GUIDELINE
It outlines principles and rules aimed at factoring-in clients’/companies’ sustainability matters within the P&C underwriting process.
The Code of Conduct, the Ethical Code for suppliers, the Integration of Sustainability into Investments and Active Ownership
Group Guideline, and the Responsible Underwriting Group Guideline contribute also to ensuring respect for human rights in all
their forms throughout the entire value chain. In line with the most important international principles and tools, including the United
Nations Universal Declaration of Human Rights, the core international standards of the International Labour Organisation and
the UN Guiding Principles on Business and Human Rights, the tools already implemented on this topic regarding indirect risks
are already monitored by the human rights criteria included in the Group guidelines on investment and underwriting activities.
For example, the Integration of Sustainability into Investments and Active Ownership Group Guideline filter allows us each year
to identify and exclude from our investments those companies that produce unconventional weapons or that, regardless of the
sector to which they belong, have committed serious human rights violations. Similarly, the Responsible Underwriting Group
Guideline establishes monitoring mechanisms to avoid P&C insurance coverage to companies that commit serious human rights
violations, with a specific monitoring of sensitive sectors.
Regarding the potential risk of violating human rights of our employees, customers and suppliers (known as direct risk), the main
human rights that could potentially be impacted by the Group’s operations in the various businesses, such as equal opportunities
and non-discrimination (including equal pay), transfer of workers (for example, migrant workers), freedom of association and
collective bargaining, are protected by tools implemented to mitigate risks in line with our positioning and practices common to
the sector.
The Group will keep up its ongoing monitoring action to guarantee a more and more virtuous and responsible behaviour in all of
its businesses.
www.generali.com/sustainability/our-rules/respecting-human-rights for further information
NFS
87.The trained employees represent 98.4% of the total, excluding a few limited exceptions due to business or local context peculiarities.
We, Generali
89
GREEN, SOCIAL & SUSTAINABILITY BOND FRAMEWORK
It defines rules and processes for the use of proceeds from
the issuance of green bonds, social bonds and sustainability
bonds, as well as recommendations for disclosure.
GREEN INSURANCE-LINKED SECURITIES FRAMEWORK
It defines the guidelines for integrating ESG aspects in alternative
mechanisms for the transfer of insurance risk to institutional
investors, as well as recommendations for disclosure.
Sustainable finance
Through the issuance of green bonds and a sustainability bond, we confirmed our focus and innovation on sustainability, that is part of
our business model, as well as our commitment towards the achievement of environmental and sustainability targets. These bonds were
allocated for a significant amount to investors dedicated to the green and sustainable bond market or to highly diversified institutional
investors willing to implement green and sustainable investment plans.
We illustrated the allocation of proceeds from the bond issuances and presented an overview on the related impacts in the Group’s
Green Bond Report and Sustainability Bond Report, whose contents are in line with the Sustainability Bond Framework.
In 2023 we published our Green, Social & Sustainability Framework, updating the Sustainability Bond Framework with the requirements
of the European Taxonomy, aiming to structure a more effective transition path towards the new principles of the European Union for
bond issuers wishing to use the EU Green Bond Standard designation.
www.generali.com/investors/debt-ratings/sustainability-bond-framework
Through the sponsorship of Lion III Re, the first catastrophe bond embedding innovative green features in accordance with our Green
Insurance Linked Securities (ILS) Framework, we integrated sustainability principles in the implementation of alternative solutions for risk
transfer, thus further underlining our commitment in promoting green finance solutions.
The catastrophe bond presents a twofold application of the Green ILS Framework: by the allocation of the freed-up capital to sustainable
initiatives and by the investment of collateral in assets with positive environmental impact.
In September 2022, we published our first Green Insurance-Linked Securities (ILS) Report, containing the details on the allocation of Lion
III Re freed-up capital, including the impact evaluation, in line with the principles described in our Green ILS Framework.
www.generali.com/sustainability/sustainable-financial-management/green-insurance-linked-securities
NFS
19 September 2019
We issued the first Tier 2 green bond
of € 750 million maturing in 2030
that represented the first issuance of
such a bond by a European insurance
company. The issuance attracted
investors with order in excess of 3.6
times the offer.
14 July 2020
We issued the second Tier 2 green
bond of € 600 million maturing
in 2031. The issuance was highly
appreciated by investors, too: it
attracted an orderbook of more than 7
times the offer.
24 June 2021
We issued our first sustainability Tier
2 bond of € 500 million maturing in
2032, which attracted an orderbook
of € 2.2 billion during the placement
phase.
29 June 2022
We issued the third Tier 2 green
bond of € 500 million maturing
in 2032. The issuance was highly
appreciated by investors, attracting
an orderbook of 2 times the offer.
5 September 2023
We issued the fifth Tier 2 green bond
of € 500 million due in September
2033. The notes attracted an order
book of € 1.1 billion, more than 2
times the offered amount.
25 June 2021
We returned to the Insurance-Linked
Securities (ILS) market with a € 200 million
cat bond exposed to windstorms in Europe
and earthquakes in Italy. It is the first ever
ILS issuance that embeds innovative green
features.
13 April 2023
We issued the fourth Tier 2 green
bond of € 500 million due in April
2033. The notes attracted an order
book of € 3.9 billion, more than 7
times the offered amount.
8 January 2024
We issued the sixth and seventh
green bonds for a total amount of €
1.250 million due in January 2029
and in January 2034, respectively.
The notes attracted an order book in
excess of € 2 billion.
Annual Integrated Report and Consolidated Financial Statements 2023
90
Generali Group
GENERALI GROUP STRATEGY ON CLIMATE CHANGE
It defines the rules by which we intend to foster a just transition towards a low-GHG economy through our investments, underwriting
activities and our direct operations.
GROUP TAX STRATEGY
It is an essential part of the tax risk control system, and defines sound and prudent taxation management methods for all of the
Group’s companies.
Group Tax Strategy
We have defined the Group Tax Strategy. It ensures the correct application of tax regulations, guided by the principles of honesty, integrity
and transparency in the relationship with tax authorities, and combines value creation for all stakeholders with long-term protection of our
reputation. In order to promptly fulfill our tax obligations in maximum transparency with regard to tax authorities, we commit ourselves to
acting in full compliance with the applicable tax regulations in the countries where we operate and to interpreting them in such a way as to
responsibly manage tax risk, ensuring consistency between the place of value production and the place of taxation.
The Group Tax Strategy defines some detailed guidelines aiming at ensuring the implementation of the following tax principles:
• tax compliance in terms of:
– proper application of the local tax regulation in the countries where the Group operates;
– reasonable interpretation of the applicable tax regulation in the event of any interpretation issues with the competent tax authorities,
even in litigation context (so-called agree to disagree);
• tax risk management in terms of:
– design and implementation of an internal regulatory procedural framework (Tax Control Framework - TCF) that aims to properly identify,
measure, manage, and control tax risks in line with the OECD guidelines on the cooperative compliance regime, as transposed by the
Italian Tax Authority;
– progressive deployment of the TCF to key entities in the different jurisdictions where the Group operates in a way that encompasses
organizational commitments and safeguards compliance with any local tax regulations, ensuring the delivery of sustainable tax
outcomes in terms of timeliness and correctness of the collection of taxes.
Since 2016, a TCF has been implemented for detecting, measuring, managing, and controlling tax risks.
www.generali.com/sustainability/our-rules/tax-payments for further information
Tax Transparency
In line with international best practices, we publish our Tax Transparency Report, which not only describes the pillars of Generali sustainable
tax outcomes but also details the Group Total Tax Contribution, that is, the contribution of our companies to the jurisdictions in which they
operate in terms of taxes borne and collected which, as a whole for 2022, amounted to € 10.0 billion. The Report outlines the strength of
the link with the jurisdiction in which the Group produces profits and pays taxes.
www.generali.com/sustainability/our-rules/tax-transparency-report for further information
FINANCIAL CRIME COMPLIANCE DECLARATION
It outlines Generali Group’s commitment to fighting financial crimes.
The Code of Conduct includes principles also in relation to anti-money laundering and counter terrorism financing, anti-bribery
and corruption and international sanctions, which are defined in specific policies and guidelines in line with the principles stated
in the Group Risk Appetite Framework and coherently with the European high legal requirements and standards (e.g. the AML/
CTF directive or other regulations in force). The Group has a zero-tolerance approach towards financial crimes, across all Group
entities and businesses. To this aim, Group standards require them to comply with the more stringent requirements applicable
to the Group, related to the prevention of money laundering, counter terrorism financing, anti-bribery and corruption as well as
the financial sanctions requirements of the United Nation, European Union and United States (not in violation of, or conflict with,
applicable EU legislation).
NFS
We, Generali
91
All entities belonging to the Group are prohibited from conducting any business dealings with countries or territories subject to
restrictions defined in the context of international sanctions programs and with subjects on financial sanctions lists. They are
also prohibited from financing any companies, whatever their legal form, whether registered in Italy or abroad, which directly or
through their subsidiaries or associates, engage in the manufacture, production, development, assembly, servicing, retention,
employment, use, storage, stockpiling, possession, promotion, sale, distribution, import, export, transfer or transport of anti-
personnel mines, cluster munitions and submunitions, regardless of their nature or composition, or their component parts. Each
Group entity exposed to anti-money laundering risks is required to apply the necessary presidia and guarantee the assessment
of the risks to which the customer or the transaction are exposed in line with the Group standards, the execution of enhanced
controls in case of exposure to higher risks of money laundering, and the implementation of an ongoing monitoring of the
relationships to ensure that any potential suspicious transaction is timely report to the local Intelligence Unit.
All Group entities are prohibited from putting in place any activity that could incur into scheme of corruption, bribery, embezzlement,
and extortion.
It is also forbidden to promise, give or offer, directly or indirectly, any undue advantage in order to exercise an improper influence
on the decision-making process of any person referring to local public officials and/or officials of international organizations,
whether the undue advantage is for themselves or for anyone else; as well as request, receive or accept the offer or promise of
this advantage.
Numerous Group companies have been subject to Supervisory inspections over the past few years. The establishment of the
Anti-Money Laundering European Authority (AMLA) enhances the cooperation of the Authorities and increases the focus on the
adoption of harmonized AML/CTF rules across the European countries.
We are also acutely aware of complying with the measures adopted by countries or organisations with a view to restricting
business with specific sanctioned countries, sectors and/or individuals.
Our business operations are particularly exposed to the risk of sanctions given the geographical distribution of the companies and
of the products and services offered (for example, marine insurance policies). With a view to mitigating the risk of sanctions, we
have drawn up a global framework on international sanctions, after defining the minimum common rules that all Group companies
have to obey. We have also substantially increased controls relating to customers and/or transactions exposed to a high risk of
sanctions, following the higher restrictions imposed by the regulators in terms of international sanctions.
We condemn and combat all forms of corruption. Such commitment is expressed in compliance with the international regulations
and local laws of the jurisdictions in which the Group operates. Each employee has an obligation to guarantee high standards of
ethics and honesty in their work. In this regard, the Group bans the receipt from or offer of cash to public officials or commercial
partners for improper purposes, and establishes control measures (for example, limitations regarding gifts and contributions to
trade unions and to charity organisations) to be incorporated and implemented in each individual company.
The Group is responsible for the ethical conduct of other parties with whom it carries out business hence, when a business
relationship with a counterparty occurs, the Group is committed to performing timely and accurate anti-bribery and corruption risk-
based due diligence, which takes place prior to the engagement and persists up to its termination on an ongoing basis. Finally, at
local level, senior management fully commits to raise awareness on anti-bribery and corruption matters in its management and staff
members through training, which occurs both at the onboarding and on a periodic basis in order to ensure an effective application
of the anti-bribery and corruption regulatory requirements and Group anti-bribery and corruption standards. In particular, the
training outlines laws and regulations, internal regulations and procedures, and case studies and practical examples, including
potential scenarios that employees may face; it also raises awareness on the available channels to seek advice, and on how to
report any concerns or suspicions of bribery and corruption.
NFS
Annual Integrated Report and Consolidated Financial Statements 2023
92
Generali Group
OUR GOVERNANCE AND
REMUNERATION POLICY
Our governance
Within a challenging economic and financial environment, we are convinced that our governance -
which complies with the best international practices - effectively supports our strategy. In line with the
principles and recommendations of the Corporate Governance Code, it then assists the sustainable
success of the Company, which consists of creating value for all shareholders in the long term, taking
into account the interests of other stakeholders relevant to the Company.
Corporate Governance and Share Ownership Report 2023 for further information on governance
Corporate Governance Code
The Corporate Governance Code, which Generali has been adopting since October 2020, follows four main drivers.
• Sustainability. The Code fosters listed companies to adopt strategies more and more oriented towards a sustainable business: the
objective that guides the actions of the Board of Directors is to pursue a sustainable company success, which consists of creating long-
term value for the benefit of the shareholders, taking into account the interests of other stakeholders relevant to the company.
• Engagement. The Code recommends to listed companies to manage the dialogue with the market through the adoption of engagement
policies, complementary to those of institutional investors and asset managers.
• Proportionality. The application of the Code is based on principles of flexibility and proportionality in order to favour small and medium
companies and those with concentrated ownership to become listed.
• Simplification. The Code presents a streamlined structure, based on principles which define the objectives of good governance and on
comply or explain recommendations.
The revision of the Code was the occasion to strengthen existing recommendations, promote the effective enactment of best practices that
were hoped in the previous editions, and align the Italian self-regulatory framework with international best practices (the possibility to qualify the
Chairman of the Board of Directors as independent, the recognition of the role of the Board Secretary and the importance to consider international
experience in the definition of remuneration policies).
Of special note is the recommendation to issuers to adopt a policy for managing dialogue with all shareholders, taking into account the engagement
policies adopted by institutional investors and asset managers. Assicurazioni Generali is among the first issuers in Italy to get this document
adopted since November 2020, including the engagement of the members of the Board of Directors with investors and proxy advisors. Therefore,
in 2023 the Board of Directors further evolved its approach to dialogue management, expanding the scope of the policy to include dialogue with
other relevant stakeholders. The new policy replaced the previous one with effect from 1 January 2024.
www.generali.com/governance/engagement for further information on engagement
Relations with stakeholders
In addition to the dialogue that directly concerns the members of the Board of Directors, which is regulated by the Policy for
engagement with investors and other relevant stakeholders, the management maintains ongoing relations with all stakeholders
relevant to the Company, including institutional investors, proxy advisors, rating agencies, financial analysts and retail shareholders.
Our intense activity of relation consists of various types of interactions with individual stakeholders or groups, as part of roadshows
and sector conferences, as well as ad hoc occasions for the discussion of specific topics, ranging from business, financial and
performance matters to corporate governance, remuneration and sustainability topics relevant to the various financial community
representatives. Some of the main recurring occasions for interaction with the Company’s top management are the Shareholders’
Meeting, events dedicated to investors and analysts, as well as the main presentations of the financial results.
We successfully continued our dialogue with relevant stakeholders both via virtual platforms and during physical events.
Understanding the specific needs and priorities of our stakeholders is an important prerequisite for defining an effective strategy
and directing subsequent business decisions. In this perspective, we consider it fundamental to define and use the most effective
communication channels to promote dialogue and constantly monitor the expectations, needs, and opinions of our stakeholders, as
this is a fundamental prerequisite for setting up and carrying out a profitable engagement process that allows us to anticipate risks
and pursue business opportunities.
Notes to the Management Report, p. 188 for further information on stakeholder relations
NFS
We, Generali
93
Share ownership
As of today, there is no employee shareholding system according to the provisions of the Consolidated Law on Financial
Intermediation (CLFI). Nonetheless, it should be noted that We SHARE 2.0, the new share plan for Group employees (except
for members of Group Management Committee and Global Leadership Group) is in progress. The plan was approved by the
Shareholders’ Meeting in April 2023 and it’s functional to support the achievement of strategic objectives, a culture of ownership
and empowerment, and the participation of employees in the Group’s sustainable value creation. The plan provides employees
with the opportunity to purchase Generali shares at favourable conditions within a protected framework, awarding them additional
free shares in case of share price appreciation. The end of the plan and the assignment of free shares are expected in 2026. The
plan will not provide for any limitation or modification of the voting right or its exercise for the shareholders.
Our strategy, Responsible employer, p. 75 for further information on We SHARE 2.0
We also facilitate participation in shareholders’ meetings for beneficiaries of long-term incentive (LTI) plans - based on Generali shares
- by providing them the services of the designated representative.
NFS
(1) The category includes asset managers, sovereign funds, pension funds, life
insurance companies.
(2) The category includes corporate entities such as foundations, trust companies,
religious and charitable institutes.
(3) Data not yet transmitted by mainly foreign intermediaries.
(4) Data that includes 0.06% of the share capital held by a subsidiary company.
The data are updated to 28 February 2024 in line with the
Shareholder’s Register, mainly on the basis of the dividend
pay-out dated 24 May 2023, with the integration of information
pursuant to art. 120 of TUF and other available information.
RETAIL SHAREHOLDERS 22.86% of the share capital
Mediobanca Group 13.13%
Del Vecchio Group 9.77%
Benetton Group 4.83%
Caltagirone Group
(4)
6.23%
MAIN SHAREHOLDERS (>3%) 33.95% of the share capital
NON-IDENTIFIABLE SHAREHOLDERS
(3)
1.08% of the share capital
OWN SHARES 1.10% of the share capital
OTHER INVESTORS
(2)
6.15% of the share capital
INSTITUTIONAL INVESTORS
(1)
34.86% of the share capital
Share performance, p. 146 for further information on the share
Annual Integrated Report and Consolidated Financial Statements 2023
94
Generali Group
Corporate governance players
Generali adopts the traditional Italian corporate governance system, which includes:
• Shareholders’ Meeting;
• Board of Statutory Auditors;
• Board of Directors.
The Board of Directors has structured its own organization also through the establishment of specific Board Committees, in a manner
consistent with the need to define strategic planning in line with the purpose, values and culture of the Group and, at the same time,
to monitor its pursuit with a view to sustainable value creation in the medium to long term. Our integrated governance also leverages
the varied and in-depth professional skills present in the Board and ensures effective oversight of management’s activities.
GROUP
MANAGEMENT
COMMITTEE
It aims at ensuring both greater
alignment on strategic priorities among
business units and a more effective,
shared decision-making process.
He is the main responsible for Company
management, in the capacity of Managing
Director, as well as acting as the Director
responsible for the internal control and
risk management system, and is also a
beneficial owner pursuant to leg. decree
2007/231.
It drives the Group for the pursuit of its
sustainable success and is supported by
Committees with advisory, proposing and
investigative functions.
RISK AND CONTROL
COMMITTEE
NOMINATIONS AND
CORPORATE GOVERNANCE
COMMITTEE
INNOVATION, SOCIAL
AND ENVIRONMENTAL
SUSTAINABILITY
COMMITTEE
INVESTMENT
COMMITTEE
RELATED PARTY
TRANSACTIONS
COMMITTEE
REMUNERATION AND
HUMAN RESOURCES
COMMITTEE
It is the external supervisory body
appointed by the Shareholders’
Meeting, in charge of ensuring -
during each financial year - that the
Company’s accounts are properly kept
and transactions correctly recorded in
the corporate books.
INDEPENDENT
AUDITORS
SURVEILLANCE
BODY
BOARD OF
DIRECTORS
GROUP
CEO
SHAREHOLDERS’
MEETING
BOARD OF
STATUTORY
AUDITORS
It is appointed by the Shareholders’
Meeting and, among other things, ensures
compliance with the applicable laws,
regulations, and the Articles of Association
as well as management control.
It expresses - through resolutions - the
wishes of shareholders.
It is appointed by the Board of
Directors and ensures the operation
and effective implementation of our
Organization and Management Model
(OMM).
We, Generali
95
Innovation, Social and Environmental Sustainability Committee
The Innovation, Social and Environmental Sustainability Committee is invested with advisory, recommendatory, and preparatory functions
towards the Board of Directors on technological innovation and social and environmental sustainability. Therefore, the Committee is responsible
for assessing the updates on the progress of the Group’s projects in the areas of innovation, digital, and cybersecurity; for supporting the Board
on decisions concerning the identification of IT technologies and resources, as well as those relating to digital innovation, cybersecurity, the
governance of information and communication technologies, and investments focused on the world of innovation, digital and sustainability.
The Committee also examines the impact of technological innovation on the Group’s business, as well as the risks that may arise from it, in
agreement with the Risk and Control Committee.
With regard to social and environmental sustainability, in particular, the Committee is called upon to express its opinion on decisions concerning
the Non-Financial Statement (NFS), the Charter of Sustainability Commitments, the other elements of the Environmental Management System,
and any other issue concerning the vision of sustainability. It provides support to the Board in integrating sustainability into business strategies,
with specific attention to the analysis of issues relevant to the long-term value generation of the Company and the Group, and examines
and assesses the sustainability policy aimed at guiding, directing and pursuing the sustainable success of the Company and the Group. It
oversees the implementation of the sustainability strategy related to the Company and the Group’s business operations, also with reference
to the sustainable transformation of the key processes and the interaction dynamics with relevant stakeholders, and formulates opinions on
the methodology for reporting non-financial information and on material performance indicators, in collaboration with the Risk and Control
Committee as far as relevant to the Internal Control and Risk Management System (ICRMS), as well as on other decisions to be taken in the
areas of innovation, technology, and social and environmental sustainability falling within the responsibility of the Board of Directors.
Governance monitoring climate change management
The Group governance is structured in such a way as to favour effective management of the risks and opportunities tied to climate change,
which is considered one of the ESG factors most material for the Group, for our value chain and for the stakeholders.
Board of Directors’ role
The Board of Directors ensures that the Group organisation and management system is complete, functional and effective in monitoring
climate change-related impacts. In 2018, it therefore approved the Generali Group Strategy on Climate Change, which has been updated
and further developed yearly since 2020, outlining a plan for investment, underwriting and stakeholder engagement activities to mitigate
climate risks and facilitate the just transition to a low-carbon economy. The Board of Directors also monitors the implementation of this
strategy and the results achieved through the Innovation, Social and Environmental Sustainability Committee. In 2023, these elements were
analysed during 2 meetings of the Committee.
Management’s role
Climate change may have pervasive impacts across the entire organization. For this reason, the decisions on how to integrate the
assessment and effective management of climate change impacts into the different business processes are guided by the Group
Management Committee. A component of the variable remuneration of the Group CEO and top management depends on the results
achieved in the implementation of the Generali Group Strategy on Climate Change.
This cross-functional approach is also reflected in a work group that pools together the functions of Group Chief Investment Officer, Group
P&C Retail Insurance & Technical Control, Group P&C Corporate & Commercial, Group Chief Life & Health Insurance, Group Integrated
Reporting, Group Enterprise Risk Management, and Group Chief Sustainability Officer. The goal of this work group is to guarantee the
management of the risks and opportunities tied to climate change in compliance with the strategy defined by the Board and to ensure
the reporting on these aspects both to internal competent bodies and to external stakeholders, in line with the TCFD recommendations.
www.generali.com/sustainability/our-commitment-to-the-environment-and-climate for further information on the Generali Group Strategy on Climate Change
NFS
Annual Integrated Report and Consolidated Financial Statements 2023
96
Generali Group
Focus on the 2023 Shareholders’ Meeting
The 2023 Shareholders’ Meeting was held on 28 April 2023 and was convened without the physical participation of shareholders
and exclusively through the Designated Representative, taking advantage of the option introduced by art. 106 of Decree-Law of 17
March 2020, no. 18, converted by Law of 24 April 2020, no. 27, the effects of which were extended by Decree-Law of 29 December
2022, no. 198, converted by Law of 24 February 2023, no. 14. Shareholders were therefore able to express their vote exclusively by
granting proxy to the Designated Representative, also through the special online platform.
An audio and video streaming in Italian with simultaneous translation in English, French, German, Spanish and Italian Sign Language
(LIS) was available to all shareholders legitimated to participate in the Shareholders’ Meeting as to let them follow live the event,
without the right to intervene and vote. Indeed, the Shareholders’ Meeting was held with the sole presence of the Designated
Representative to whom all shareholders had conferred proxy; no virtual or hybrid form were adopted. All the services planned under
the Shareholders Meeting Extended Inclusion (SMEI) program were adapted to the virtual event, with particular attention to making
the video streaming service accessible to all our shareholders.
The 2023 Shareholders’ Meeting appointed the Board of Statutory Auditors for the three-year period 2023-2025. Two lists were
submitted:
• the list presented by several UCITS under the aegis of Assogestioni (majority list), which obtained 88.78% of votes;
• the list presented by the shareholder VM 2006 (minority list), which obtained 5.06% of votes.
Paolo Ratti and Sara Landini were elected Permanent Auditors from the majority list. Carlo Schiavone was elected from the minority
list. Carlo Schiavone was elected Chairman of the Board of Statutory Auditors as Permanent Auditor from the minority List.
The Shareholders’ Meeting also approved the appointment of Stefano Marsaglia as a member of the Board of Directors until the
expiration of the term of office of the other directors currently in office and, therefore, until the date of the Shareholders’ Meeting
called to approve the financial statements as of 31 December 2024.
2023
2022
2021
2020
2019
2023
2022
2021
2020
2019
Percentage of share capital represented in the
Shareholders’ Meeting over the last five years
70,74%
70.74%
63.23%
51.52%
57.59%
55.88%
Percentage of share capital represented by institutional investors in the
Shareholders’ Meeting over the last five years
19.03%
23.56%
23.71%
24.81%
21.66%
We, Generali
97
Focus on the Board of Statutory Auditors in office until shareholders’ meeting to
approve the financial statements for the 2025 financial year
Considerations of the outgoing Board of Statutory Auditors
On the occasion of the 2023 Shareholders’ Meeting, called to resolve not only on the appointment but also on the determination of the
remuneration of the Board of Statutory Auditors, the outgoing Statutory Auditors, in line with the Rules of Conduct for the Board of Statutory
Auditors of Listed Companies of the Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (CNDCEC) of 26 April 2018
(Q.1.2 and Q.1.6), prepared, before the expiration of their term of office and for the benefit of the shareholders, their own considerations
on the issues of the composition of the Board of Statutory Auditors to be appointed. In this document they also deemed appropriate to
summarise the activities carried out by the Board of Statutory Auditors during its mandate, specifying the number of the Board of Statutory
Auditors’ meetings, their average duration, the time required to carry out each activity, and the professional resources involved, in order to
make their experience - developed during their three-year mandate - available to the interested parties to make a considered assessment
of the professional skills required and the adequacy of the remuneration proposed for the performance of the office. Before being made
available to the shareholders, the document prepared by the Board of Statutory Auditors was sent to the Chairman of the Board of
Directors to be brought to the attention of the Board for the relevant assessments.
www.generali.com/info/download-center/governance/assemblee/2023 for further information
Corporate Governance and Share Ownership Report 2023, p. 92 for further information on the diversity of administration, management and control bodies
The Board of Statutory Auditors attends the same training sessions held for
the Board of Directors.
* 20% including also alternate auditors.
** 58 including also alternate auditors.
*** Data covering the entire year of 2023. Up to the 2023 Shareholders’ Meeting, the previous Board of Statutory
Auditors held 14 meetings, with an average attendance of 100% and an average attendance at Board of
Directors’ meetings of 95.24%. Since its appointment, the new Board of Statutory Auditors has held 18
meetings, with an attendance of 98.15% and an average attendance at Board of Directors’ meetings of 100%.
FEMALE AUDITORS
33.33%*
AVERAGE AGE
59**
MEETINGS
32***
AVERAGE ATTENDANCE AT MEETINGS
98.96%***
AVERAGE ATTENDANCE AT BOARD OF DIRECTORS MEETINGS
98.15%***
Carlo Schiavone
Chairman
Age 63
In office since 28/04/2023
Nationality Italian
Sara Landini
Permanent Statutory Auditor
Age 51
In office since 28/04/2023
Nationality Italian
Paolo Ratti
Permanent Statutory Auditor
Age 63
In office since 28/04/2023
Nationality Italian
Giuseppe Melis
Alternate Auditor
Age 52
In office since 28/04/2023
Nationality Italian
Michele Pizzo
Alternate Auditor
Age 61
In office since 28/04/2023
Nationality Italian
Annual Integrated Report and Consolidated Financial Statements 2023
98
Generali Group
Focus on the Board of Directors
in office until the 2025 Shareholders’ Meeting
Philippe Donnet
Managing Director
and Group CEO
Age 63
In office since 17/03/2016
88. As defined in the listed companies’ Corporate Governance Code.
Committees
P
Skills
Experience
Independent
88
Committees -
Skills
Experience
* As director ** As Chairman
Committees
Skills
Experience
Committees
P
Skills
Experience
Committees
P
Skills
Experience
Committees
P
Skills
Experience
Committees
Skills
Experience
Skills and experience of the Board of Directors
Skills Experience
Financial and
actuarial
92%
Insurance and
financial markets
92%
Regulatory
framework and
compliance rules
92%
Corporate
governance
100%
Business model and
Strategy
92%
Audit & Risk
Management
69%
Legal
15%
ESG and
Sustainability
53%
Digital, IT and
cybersecurity
38%
Internationalism
100%
Managerial
and/or
Entrepreneurial
69%
Institutional
30%
Consultancy
15%
Academic
23%
Andrea Sironi
Chairman
Age 59
In office since 28/02/2022*
02/05/2022**
Marina Brogi
Director
Age 56
In office since 29/04/2022
Umberto Malesci
Director
Age 42
In office since 29/04/2022
Antonella Mei-Pochtler
Director
Age 65
In office since 07/05/2019
Diva Moriani
Director
Age 55
In office since 28/04/2016
Lorenzo Pellicioli
Director
Age 72
In office since 28/04/2007
Executive Independent
88
Independent
88
Independent
88
Independent
88
We, Generali
99
In 2023, the Board was provided with eight training sessions on:
KEY
Committees
P
Skills
Experience
Committees
Skills
Experience
Committees
Skills
Experience
Committees
Skills
Experience
Committees
Skills
Experience
Committees
P
Skills
Experience
FEMALE DIRECTORS
46%
AVERAGE AGE
60
INDEPENDENT DIRECTORS
77%
MEETINGS
18
AVERAGE ATTENDANCE AT MEETINGS
94%
Stefano Marsaglia
Director
Age 68
In office since 15/07/2022
Clemente Rebecchini
Director
Age 59
In office since 11/05/2012
Flavio Cattaneo
Director
Age 60
In office since 29/04/2022
Luisa Torchia
Director
Age 66
In office since 28/02/2022
Alessia Falsarone
Director
Age 47
In office since 28/02/2022
Clara Furse
Director
Age 66
In office since 29/04/2022
Independent
88
Independent
88
Independent
88
Corporate Governance and Share Ownership
Report 2023, p. 58 for further information on
the diversity of administration, management
and control bodies
Independent
88
Independent
88
∙ ALM and international sanctions;
∙ structure of Life liabilities;
∙ the Group’s technology and data landscape;
∙ direct P&C insurance business;
∙ ORSA Report 2022;
∙ impact of rising interest rates on Life business;
∙ Product Oversight Governance and the global insurance
landscape;
∙ Directors’ responsibility and sustainability challenges (climate
change, greenwashing, and OECD principles).
Risk and Control Committee
Nominations and Corporate Governance Committee
Innovation and Sustainability Committee
Investment Committee
Related-Party Transactions Committee
Remuneration and Human Resources Committee
C Committee Chair
Annual Integrated Report and Consolidated Financial Statements 2023
100
Generali Group
Our remuneration policy
The remuneration Policy is based on clear, globally shared and consistent principles, expressed in
the form of remuneration programs compliant with regulatory requirements and local laws.
Every intervention to the remuneration policies can be traced back to these inspiring principles that underlie all the decisions taken:
We are convinced that by drawing inspiration from these principles, our remuneration systems can be a key element for attracting,
developing and retaining talents and key people with critical skills and high potential as well as engaging all employees, thereby
promoting a correct approach in aligning their performance with results and building the premises for solid and sustainable results
over time.
Remuneration policy for directors who
do not have executive powers
The remuneration policy related to all directors without executive powers - with the exception of the Chairman, whose remuneration
is detailed below - provides that the remuneration is composed of three elements: a fixed annual fee, an attendance fee for each
meeting of the Board of Directors where they participate, as well as reimbursement of expenses incurred for attending the meetings.
Directors who are also members of Board Committees are paid fees that are additional to those already received as members of the
Board of Directors, with the exception of those who are also executives of the Generali Group. The remuneration is established by
the Board pursuant to Article 2389, paragraph 3 of the Italian Civil Code according to both the powers assigned to these Committees
and the commitment required for participation in their work in terms of number of meetings and preparatory activities. Furthermore,
in line with regulatory legislation and best international market practices, no variable remuneration is expected. The remuneration
policy for the Chairman provides for the payment of a fixed annual remuneration determined based on comparative analyses with
similar national and international figures.
Like all directors without executive powers, the Chairman does not participate in the short and medium-long term incentive plans. For
this figure, the remuneration policy of Assicurazioni Generali also provides for the allocation of some benefits such as, for example,
insurance coverage for death and total permanent disability from injury or illness, as well as healthcare and the availability of a
company car with driver for both private and business use.
EQUITY AND
CONSISTENCY
of remuneration in
terms of responsibilities
assigned and capabilities
demonstrated
ALIGNMENT WITH THE
STRATEGY AND LONG
TERM SUSTAINABLE
VALUE CREATION
for all stakeholders
COMPETITIVENESS
with respect to
market trends and
practices
MERIT AND
PERFORMANCE-BASED
REWARD
in terms of sustainable
results, behaviours and
Group values
CLEAR
GOVERNANCE
AND COMPLIANCE
with the regulatory
framework
We, Generali
101
Remuneration policy for the Managing Director/Group CEO,
the managers with strategic responsibilities and the other
relevant personnel not belonging to Key Functions
The Managing Director/Group CEO, sole executive director, the managers with strategic responsibilities and the other relevant
personnel not belonging to Key Functions
89
are recipients of an overall remuneration package consisting of a fixed remuneration and
a variable remuneration (annual in cash and deferred in shares) subject to malus and clawback mechanisms, and benefits.
The remuneration package so composed is structured in such a way as to ensure a proper balance between its various components.
Generali regularly performs structural analyses of the remuneration systems, in order to ensure a fair equilibrium of the various
components and to foster the persons’ commitment to achieving sustainable results.
Remuneration components
Components Purpose and characteristics
Fixed remuneration
It is determined and adjusted over time taking into consideration the duties, the responsibilities assigned and the roles
held as well as the individual experience and skills and is set with particular reference to the levels and practices of
market peers in terms of attractiveness, competitiveness and retention..
Variable remuneration
It is defined through annual cash and deferred incentive plans aimed at motivating management to achieve sustainable
business goals through the direct link between incentives and goals set at Group, business unit, country, function and
individuals level, both financial (risk-adjusted), economic and operational, and non-financial/ESG.
Benefits
They represent an additional component of the remuneration package - in a Total Reward approach - as an integrative
remuneration element to cash and share payments. Benefits differ based on the category of recipients, in line with
Group policy.
The variable component of the remuneration is based on a meritocratic approach and on a multi-year horizon, including an annual
cash component and a deferred component in shares, based on the achievement of a combination of sustainable business goals
and the direct link between incentives and results set at Group, business unit, country, function and individual level, both financial
(risk-adjusted), economic and operational, as well as non-financial/ESG, which include specific performance indicators linked to
internal and measurable ESG factors.
89. Head of Group Audit, Group Chief Risk Officer, Group Head of Actuarial Function, Group Compliance Officer and their first reporting managers. The Group Head of Anti-Financial Crime Function is
assimilated to the Key Functions for the application of the remuneration and incentive rules. The specific provisions provided for the Heads of the Key Functions also apply to the Group Chief Risk
Officer, even if a member of the Group Management Committee (GMC).
90. It is applied to the entire population described, excluding Key Functions for which a specific remuneration policy and regulations are applied..
Total target remuneration components
90
FIXED VARIABLE
ANNUAL DEFERRED
FIXED REMUNERATION ANNUAL (on a yearly basis) DEFERRED (on a multi-year basis)
NFS
Annual Integrated Report and Consolidated Financial Statements 2023
102
Generali Group
Structure of variable remuneration
Components Characteristics Criteria and Parameters
Annual cash component -
Group Short Term Incentive (STI)
Annual cash bonus set within predefined
maximum caps
• Group funding pool, linked to the results achieved in terms of
Group normalised adjusted net profit and Group operating result
after verification of the achievement of the Regulatory Solvency
Ratio threshold;
• Achievement of financial (risk-adjusted), economic and
operational, and internal non-financial/ESG goals defined in the
individual balanced scorecards in terms of sustainable value
creation, risk-adjusted profitability, and implementation of
Business Development & Transformation and internal ESG goals
(Sustainability Commitment and People Value).
Deferred component in shares -
Group Long Term Incentive (LTI)
Multi-year plan, based on Assicurazioni Generali
shares, subject to Shareholders' approval, with
allocations over a period of 6-7 years within
predefined maximum caps
• Overall three-year performance with goals linked to Group strategy
and business priorities after verification of the achievement of the
Regulatory Solvency Ratio threshold;
• Performance indicators referring to relative TSR
91
with payment
starting from the median, Net Holding Cash Flow
92
, and internal
and measurable ESG goals;
• Allocation of shares with deferral and lock-up periods over a time
frame of 6-7 years, depending on the reference population;
• Maximum cap on the deferred share component compared to the
fixed remuneration equal to 200% for the Managing Director/Group
CEO and the members of the Group Management Committee and
equal to 175% for other managers with strategic responsibilities,
the remaining relevant personnel, and other members of the Global
Leadership Group (GLG).
Integration of sustainability into incentives system
The integration of sustainability into management remuneration is a key step to ensuring an even stronger link between company/
individual performance and business sustainability. This is made possible by drawing on a panel of strategic sustainability goals that
reflect the priorities of the Lifetime Partner 24: Driving Growth strategy.
Moreover, the alignment with the strategy and the creation of sustainable value is the founding principle of our remuneration policy
to ensure sustainable performance in the short, medium and long term in the interests of all stakeholders.
Sustainability is synonymous with a wide-ranging activity that is an element of market competitiveness in terms of attracting,
motivating and retaining talent. It aims to go beyond economic and financial returns to become an integral part of the way we
conduct business, to have a positive impact on the environment, the community, social inclusion, and staff, through initiatives aimed
at improving working conditions, fairness, and wage equality.
The Group’s 2023 incentive system aims to achieve real and long-lasting results, by setting an adequate risk assumption that is
proportionate to the level of influence an individual has on the Group’s results, while respecting stakeholders’ interests, market best
practices, and regulatory requirements. This system includes in the variable remuneration an annual cash component with ESG goals
as well as a deferred share component with ESG goals and, as a whole, it:
• is made up of at least 50% shares in alignment with strategic goals and stakeholder interests;
• is structured according to percentages with deferral and lock-up periods over a time frame of 6-7 years, depending on the
reference population, in alignment with long-term sustainable value creation.
91. Total return on investment to the shareholder calculated as a change in the market price of the shares, including dividend distributions or dividends reinvested in shares.
92. Net cash flows available at the Parent Company level over a given period, after holding expenses and interest costs. Its main components, considered from a cash point of view, are: remittances
from subsidiaries; the result of centralised (re)insurance; interest on financial debt; expenses and taxes paid or reimbursed at Parent Company level.
NFS
We, Generali
103
Group incentives system with ESG goals
ESG goals
Annual cash component
Sustainability Commitment
Priority on Group/local initiatives with focus on the percentage of gross direct written premiums from insurance
solutions with ESG components on Group total gross direct written premiums. This metric evolved from the previously
used “sustainable solutions gross direct written premiums’ annual growth” to enhance the steering and monitoring
of the entire Group insurance portfolio’s rotation towards solutions with ESG components while also considering the
overall insurance markets’ dynamic and expectations.
People Value
Priority on quality and solidity of the succession plan and focus on digital skills and diversity (percentage of upskilled
employees; percentage of women in strategic positions).
Deferred component in shares
Climate Change and People & Diversity
CO
2
emissions reduction target for Group operations; percentage of women managers
Moreover, the remuneration policy adopts an approach aimed at ensuring that remuneration and incentive mechanisms are coherent
with the integration of the sustainability risks already included in the Group’s internal regulation system, for example those regarding
risk management system, investment, and underwriting processes.
Finally, through the remuneration policy, Generali supports diversity, equity and inclusion, carrying out initiatives aimed at reducing
the gender pay gap and promoting equity, continuing education, and the improvement of the skills of its employees through both
upskilling activities and large-scale projects for the recognition of our people, such as the new share plan for the Generali Group
employees.
Governance of ESG Goals
The Group incentives system includes a corporate governance system, compliant with international best practices, carefully monitors
all activities and ensures compliance with sustainability parameters and their tangible integration into daily decisions in every aspect
of the business, in line with the goal of promoting sustainable development of the business and of generating long-lasting value for
the real economy. Finally, a reporting system is used to monitor activities and ensure that they are properly
The governance of the incentives system relating to ESG goals includes a rigorous internal control process carried out by the Board
of Directors upon the proposal of the Remuneration and Human Resources Committee and involving the Key Functions. It comprises
for each ESG goal:
• identification of the strategic priorities and the annual and three-year ambitions, defined in line with the strategic plan and set with
the support of the relevant and responsible corporate Functions;
• approval within the individual (STI) balanced scorecards (BSC) and the Group Long Term Incentive plan (LTI) of predefined ESG
goals and related levels of ambition, in line with the Group’s remuneration policy;
• the constant and continuous monitoring of the performance of ESG goals;
• overall assessment and reporting on the extent to which the ESG goals have been achieved (using a Missed, Met, Exceeded scale)
based on the actual results of predefined KPIs rated against the ambitions set, whose measurability has been further enhanced by
determining new specific performance ranges to support their evaluation;
• determination of the remuneration to be paid to beneficiaries;
• verification of the Company’s financial and economic position for the allocation of the remuneration accrued, in compliance with
the regulatory provisions and the Group’s Risk Appetite Framework;
• ex-post monitoring of the sustainability of performance over time for the payout of the deferred components of variable remuneration;
• verification that no conditions of malus, clawback, and hedging exist.
NFS
www.generali.com/governance/remuneration for further information on remuneration policy and
the Report on remuneration policy and payments, also including information about remuneration
Notes, Additional information for further information on pension benefits of the Group employees
OUR FINANCIAL
PERFORMANCE
Group’s performance ........................................................................ 106
Group’s financial position ................................................................. 111
Life segment ..................................................................................... 116
Property & Casualty segment ........................................................... 124
Asset & Wealth Management segment ............................................. 131
Holding and other businesses segment ........................................... 132
Our main markets: positioning and performance ............................. 133
Share performance ........................................................................... 146
Annual Integrated Report and Consolidated Financial Statements 2023
106
Generali Group
Gross written premiums increased to € 82.5 billion (+5.6%)
driven by the performance of P&C growth (+12.0%). Life net
inflows at € -1.3 billion entirely focused on the unit-linked and
protection lines.
Operating result increased to € 6.9 billion (+7.9%), thanks to
positive contribution from all segments.
Adjusted net result of the period
2
at € 3,575 million (+14.1%).
Net result growth to € 3,747 million (+67.7%).
82,466
6,879
3,133
31/12/2023
31/12/2023
31/12/2023
31/12/2022
31/12/2022
31/12/2022
79,019
6,374
3,575
GROSS WRITTEN PREMIUMS (€ mln)
OPERATING RESULT (€ mln)
ADJUSTED NET RESULT (€ mln)
GROUP’S PERFORMANCE
1
1. Starting from the first quarter 2023 the bancassurance JVs of Cattolica (Vera and BCC companies) are considered a disposal group held for sale under IFRS 5 and therefore their results are
reclassified in the Result of discontinued operations. Consequently, the 2022 yearly results of the Group presented last year have been restated. The Result of discontinued operations amounted
to € 84 million at 31 December 2023 (€ -93 million at 31 December 2022).
Changes in premiums, Life net inflows and new business were presented on equivalent terms (at constant exchange rates and consolidation scope).
The amounts were rounded and may not add up to the rounded total in all cases. The percentages presented can be affected by the rounding.
2. Adjusted net result includes adjustments for 1) profit or loss on assets at fair value through profit or loss (FVTPL) on non-participating business and shareholders’ funds, 2) hyperinflation effect
under IAS 29, 3) amortisation of intangibles related to M&A, if material 4) impact of gains and losses from acquisitions and disposals, if material.
Our financial performance
107
Operating result
Total operating result by segment
(€ million) 31/12/2023 31/12/2022 Change
Total operating result 6,879 6,374 7.9 %
Life 3,735 3,672 1.7%
Property & Casualty 2,902 2,507 15.8%
Asset & Wealth Management 1,001 954 4.9%
Holding and other businesses -320 -339 -5.7%
Consolidation adjustments -439 -420 4.5%
Operating result grew by 7.9%, standing at € 6,879 million (€ 6,374 million at 31 December 2022) thanks to the positive contribution
from all business segments.
The operating result of the Life segment was up to € 3,735 million (+1.7%), supported by the improvement in the operating result of
insurance services led by an increase in the contractual services margin (CSM) release. The operating investment result remained
stable.
Strong increase of the operating result of the P&C segment, amounting to € 2,902 million (+15.8%). The growth was driven by
the improvement in the combined ratio, which stood at 94.0% (-1.4 p.p.), benefiting from both a lower current year loss ratio
undiscounted (excluding Nat Cat) and a higher discounting effect, partially offset by the significant impact from natural catastrophe
claims.
The operating result of the Asset & Wealth Management segment stood at € 1,001 million (+4.9%). The improvement in Banca
Generali group result, equal to € 441 million (+39.6%), reflects the positive contribution of the interest margin and the diversification
of the business. The Asset Management result was down, amounting to € 559 million (-12.3%), mainly reflecting the market effects
on average AUM and lower performance fees.
The operating result of the Holding and other businesses segment improved to € -320 million (€ -339 million at 31 December 2022)
thanks to the positive result of Other businesses.
Lastly, the change in the consolidation adjustments (+4.5%) was due to higher intragroup transactions, mainly relating to dividends.
Non-operating result
Non-operating result
(€ million) 31/12/2023 31/12/2022 Change
Consolidated non-operating result -1,262 -2,434 -48.1%
Non-operating investment result 64 -1,015 n.m.
Net non-operating gains from investments at FVTPL and gains and losses on foreign currency -115 -881 -86.9%
Net non-operating realized gains on other investments 421 55 n.m.
Net non-operating ECL and impairment losses on other investments -241 -189 27.4%
Net other non-operating expenses -683 -788 -13.3%
Non-operating holding expenses -644 -631 2.0%
Interest expenses on financial debt -447 -470 -5.0%
Other non-operating holding expenses -197 -161 22.1%
The non-operating result amounted to € -1,262 million (€ -2,434 million at 31 December 2022). In particular:
• net non-operating gains from investments at FVTPL and gains and losses on foreign currencies improved to € -115 million
compared to € -881 million at 31 December 2022, mainly thanks to the performance of the financial markets;
• net non-operating realized gains on other investments amounted to € 421 million (€ 55 million at 31 December 2022). The increase
is mainly due to the disposal of a London real estate development (for € 221 million
3
) and the disposal of Generali Deutschland
Pensionskasse (for € 255 million
4
);
• net non-operating ECL and impairment losses on other investments amounted to € -241 million (€ -189 million at 31 December
2022);
• net other non-operating expenses decreased to € -683 million (€ -788 million at 31 December 2022). This item included € -312
million of restructuring costs (€ -204 million at 31 December 2022), especially in Italy, € -39 million relating to amortization of
3. Impact net of taxes amounting € 193 million.
4. Impact net of taxes amounting € 255 million.
Annual Integrated Report and Consolidated Financial Statements 2023
108
Generali Group
intangible assets generated by business combinations and bancassurance agreements (€ -26 million at 31 December 2022) and
other non-operating net expenses for € -332 million (€ -558 million at 31 December 2022). The other non-operating net expenses
included higher non-recurring costs for local projects in certain countries, offset by the lower impact from the application of IAS 29
mainly in Argentina, an accounting standard dedicated to economies characterised by hyperinflation, and by non-recurring positive
effects coming from the pension reform in France;
• non-operating holding expenses amounted to € -644 million (€ -631 million at 31 December 2022). The increase mainly reflected
higher expenses for the M&A costs and long-term incentive plans. Interest expense on financial debt amounted to € -447 million
(€ -470 million at 31 December 2022).
Group’s result of the period
From operating result to result of the period
(€ million) 31/12/2023 31/12/2022 Change
Consolidated operating result 6,879 6,374 7.9 %
Consolidated non-operating result -1,262 -2,434 -48.1%
Non-operating investment result 64 -1,015 n.m.
Net other non-operating expenses -683 -788 -13.3%
Non-operating holding expenses -644 -631 2.0%
Earnings before taxes 5,617 3,940 42.6%
Income taxes -1,579 -1,378 14.6%
Earnings after taxes 4,037 2,562 57.6%
Profit or loss from discontinued operations 84 -93 n.m.
Consolidated result of the period 4,122 2,470 66.9%
Result of the period attributable to the Group 3,747 2,235 67.7%
Result of the period attributable to minority interests 375 235 59.6%
Adjusted net result 3,575 3,133 14.1%
The result of the period attributable to the Group stood at € 3,747 million (+67.7%). The increase compared to € 2,235 million at 31
December 2022 reflected:
• the positive performance of the operating and non-operating result commented above;
• the lower tax rate, which decreased from 35.0% to 27.6%, due mainly to the absence of some non-deductible charges booked
in 2022 and to the non-taxable step up of some participations and the disposal of Generali Deutschland Pensionskasse recorded
in 2023;
• the improvement in the result of discontinued operations, equal to € 84 million (€ -93 million at 31 December 2022), including the
result for the period of the bancassurance JVs of Cattolica (Vera and BCC) and the net capital gain deriving from their disposal
(equal to € 49 million);
• the result attributable to minority interests, amounting to € 375 million (€ 235 million at 31 December 2022), which corresponds
to a minority rate of 9.1% (9.5% at 31 December 2022), improved mainly due to the results of Banca Generali and the Asian
companies, which were penalised in 2022 by financial market performance, especially in investments at fair value through profit
or loss.
The adjusted net result increased to € 3,575 million (€ 3,133 million as at 31 December 2022). This was primarily thanks to the
improved operating result, a non-recurring capital gain related to the disposal of a London real estate development (€ 193 million
net of taxes), and a one-off restructuring charge in Italy (around € -165 million net of taxes) while also reflecting the impact of € -71
million in impairments on Russian fixed income instruments recorded at 31 December 2022.
Our financial performance
109
Other information on the Group
From operating result to result of the period
(€ million) 31/12/2023 31/12/2022 Change
Consolidated operating result 6,879 6,374 7.9 %
Insurance services results 5,548 4,815 15.2%
Operating investment result (*) 2,317 2,210 4.8%
Other operating income and expenses -986 -651 51.5%
of which operating holding expenses -572 -548 4.4%
Consolidated non-operating result -1,262 -2,434 -48.1%
Non-operating investment result 64 -1,015 n.m.
Net non-operating gains from investments at FVTPL and gains and losses on foreign currency -115 -881 -86.9%
Net non-operating realized gains on other investments 421 55 n.m.
Net non-operating ECL and impairment losses on other investments -241 -189 27.4%
Net other non-operating expenses -683 -788 -13.3%
Non-operating holding expenses -644 -631 2.0%
Interest expenses on financial debt -447 -470 -5.0%
Other non-operating holding expenses -197 -161 22.1%
Earnings before taxes 5,617 3,940 42.6%
Income taxes (*) -1,579 -1,378 14.6%
Earnings after taxes 4,037 2,562 57.6%
Profit or loss from discontinued operations 84 -93 n.m.
Consolidated result of the period 4,122 2,470 66.9%
Result of the period attributable to the Group 3,747 2,235 67.7%
Result of the period attributable to minority interests 375 235 59.6%
Adjusted net result 3,575 3,133 14.1%
(*) At 31 December 2023, the amount is net of non-recurring taxes shared with the policyholders for € -43 million (nil at 31 December 2022).
Operating result by country
(€ million) 31/12/2023 31/12/2022 Change
Italy 1,978 2,326 -15.0%
France 1,290 1,072 20.3%
DACH 1,495 1,401 6.7%
Germany 1,046 942 11.0%
Austria 325 326 -0.2%
Switzerland 129 133 -2.9%
International 1,499 1,185 26.5%
CEE 658 485 35.7%
Mediterranean & Latin America 515 412 25.1%
Asia 344 302 13.9%
Asset & Wealth Management 964 920 4.8%
Group holdings, other companies and consolidation adjustments -348 -531 -34.5%
Total 6,879 6,374 7.9%
Annual Integrated Report and Consolidated Financial Statements 2023
110
Generali Group
Total gross written premiums by country
(€ million) 31/12/2023 31/12/2022
Italy 27,328 26,065
France 15,496 15,570
DACH 19,620 19,317
Germany 14,823 14,614
Austria 2,973 2,881
Switzerland 1,824 1,822
International 16,058 14,640
CEE 4,827 4,440
Mediterranean & Latin America 5,231 5,142
Asia 6,000 5,057
Group holdings and other companies 3,965 3,427
Total 82,466 79,019
Our financial performance
111
The Group shareholders’ equity stood at € 28,968 million, up
by 8,7% attributable to the Group’s result of the period partially
offset by the 2023 dividend for a total of € 1,790 million.
Notes, Shareholders’ equity for further information
Solid capital position confirmed at 220% (-1 p.p.), thanks to the
excellent contribution from the normalized capital generation,
offsetting the impacts of variances.
Risk Report for other information on Group capital position
Contractual service margin for insurance and reinsurance
contracts, gross of reinsurance, amounts to € 31,807 million, of
which € 30,911 million come from the Life segment and € 896
million come from the P&C segment.
Group’s total Assets Under Management (AUM) at € 655,783
million, of which € 358,578 million deriving from General
Account investments, € 108,265 million from financial assets
linked to technical reserves where the investment risk is borne
by the policyholders, to financial liabilities related to investment
contracts, and reserves linked to pension funds, and € 188,940
million from Third-parties Asset Under Management.
28,968
31,807
615,167
31/12/2023
31/12/2023
31/12/2023
31/12/2023
31/12/2022
31/12/2022
31/12/2022
31/12/2022
26,650
31,025
655,783
GROUP SHAREHOLDERS’ EQUITY (€ mln)
SOLVENCY RATIO (%)
CONTRACTUAL SERVICE MARGIN (€ mln)
TOTAL ASSETS UNDER MANAGEMENT (€ mln)
GROUP’S FINANCIAL POSITION
220%
221%
Annual Integrated Report and Consolidated Financial Statements 2023
112
Generali Group
Investments
Group investments
(€ million) 31/12/2023 31/12/2022 Change
Equity investments 25,291 26,129 -3.2%
Fixed income investments 280,665 280,489 0.1%
Bonds 233,835 235,386 -0.7%
Other fixed income investments 46,830 45,104 3.8%
Land and buildings (investment properties and similar investments) 27,038 28,942 -6.6%
Other investments 8,233 5,878 40.1%
Investments in subsidiaries, associated companies and joint ventures 2,712 2,492 8.8%
Derivatives -164 -71 130.3%
Other investments 5,685 3,457 64.4%
Cash and cash equivalents 17,352 10,606 63.6%
Total General Account investments 358,578 352,044 1.9%
Financial assets linked to technical reserves where the investment risk is borne by the
policyholders, to financial liabilities related to investment contracts, and reserves linked to
pension funds 108,265 95,251 13.7%
Group's total investments 466,843 447,29 5 4.4%
Third-party Asset Under Management 188,940 167,872 12.6%
Group total Assets Under Management 655,783 615,167 6.6%
At 31 December 2023, the Group’s total investments amounted to € 466,843 million (+4.4% compared to 31 December 2022),
following in particular both the increase of financial assets linked to technical reserves where the investment risk is borne by the
policyholders, to financial liabilities related to investment contracts, and reserves linked to pension funds (€ 108,265 million, +13.7%
compared to 31 December 2022) and of General Account investments (€ 358,578 million, +1.9% compared to 31 December 2022).
The increase of financial assets linked to technical reserves where the investment risk is borne by the policyholders, to financial
liabilities related to investment contracts, and reserves linked to pension funds is supported by positive market performance and
positive net inflows, additionally, the increase of General Account investments is driven by the reduction in interest rates, particularly
benefits the Group’s bond portfolio.
The evolution in the Group’s asset allocation has led to an increase in cash and cash equivalents, which amounted to € 17,352 million
(€ 10,606 million at 31 December 2022), in line with the operational needs defined in the chapter Debt and liquidity.
Throughout the year, both the incidence of fixed income investments, amounting to 78.3% (79.7% at 31 December 2022), and that
of equity investments, amounting to 7.1% (7.4% as of 31 December 2022), slightly decreased.
The Group’s land and buildings (investment properties and similar investments) recorded a reduction during 2023, amounting to
€27,038 million (€ 28,942 million at 31 December 2022).
The Group’s total Assets Under Management amounted to € 655,783 million (+6.6% compared to 31 December 2022), of which
third-party Assets Under Management amounted to € 188,940 million (+12.6% compared to 31 December 2022). The increase in
third-party Assets Under Management is supported by both the performance of the financial markets and the contribution of net
inflows and extraordinary transactions.
Our financial performance
113
Return on investments
(€ million) 31/12/2023 31/12/2022
Economic components
Current income from fixed income instruments 8,804 8,522
Current income from equity instruments 800 1,074
Current income from real estate investments (*) 976 999
Net realized gains 783 46
Expected credit losses -129 -375
Net unrealized gains -392 -7,450
Average stock 352,301 380,299
Ratio (%)
P&L return 3.1% 0.8%
Current return 3.1% 2.9%
Harvesting rate 0.1% -2.0%
Return from gains/losses through equity 3.7% -17.1%
Comprehensive return 6.8% -16.4%
(*) Net of depreciation of the period.
The current income increased at 3.1% (2.9% at 31 December 2022). This increase is mainly due to the growth of current income
from fixed income instruments.
The P&L return recorded a significant increase to 3.1% (0.8% at 31 December 2022), also driven by the harvesting rate, which rose
to 0.1% (-2.0% at 31 December 2022 ). This increase throughout the year was supported by the positive contribution of realized
gains and lower unrealised losses recognized in the income statement.
The increase of return from gains/losses through equity, equal to 3.7% (-17.1% at 31 December 2022) is mainly attributable to the
reduction in interest rates.
Insurance liabilities
Gross insurance liabilities
(€ million) 31/12/2023 31/12/2022
Total insurance liabilities 412,010 395,472
Life insurance liabilities 376,663 362,029
Property & Casualty insurance liabilities 35,347 33,443
Gross insurance liabilities stood at € 412,010 million, up 4.2% compared to € 395,472 million at 31 December 2022; the insurance
liabilities of the Life segment, whose contribution to the total insurance liabilities is equal to 91.4%, amounted to € 376,663 million
(+4.0% compared to 31 December 2022) while the liabilities of the P&C segment stood at € 35,347 million (+5.7% compared to 31
December 2022).
Annual Integrated Report and Consolidated Financial Statements 2023
114
Generali Group
Debt and liquidity
Debt
Group debt is composed as follows:
Group debt
(€ million) 31/12/2023 31/12/2022
Operating debt 33,025 35,365
Financial debt 10,965 10,277
Subordinated liabilities 9,040 8,358
Senior bonds 1,767 1,765
Other financial debt 157 153
Total 43,990 45,642
The decrease in the Group’s operating debt was mainly attributable to the reduction of the payables to bank customers.
The increase in Group’s financial debt primarily stems from two bond issuances occurred in April and September, totalling € 1,000
million. This rise was partly mitigated by a cash buyback of roughly € 500 million of a perpetual bond, approximately € 351 million of
which was held by external investors, along with the exercise of an early redemption option worth € 100 million for a bond issued by
Genertel S.p.A., about € 51 million of which was held by external investors.
The weighted average cost of financial debt stood at 4.39%, showing a slight increase compared to year-end 2022, mainly due to
the higher cost of new issuances compared to the repurchased one.
The interest expenses on financial debt equals to € 447 million at 31 December 2023 (compared to € 470 at 31 December 2022).
Details on financial debt
Details on subordinated liabilities and senior bonds
(€ million) 31/12/2023 31/12/2022
Nominal
value
Book value Accrued
interest
expenses
Average
weighted
cost % (*)
Nominal
value
Book value Accrued
interest
expenses
Average
weighted
cost % (*)
Subordinated liabilities 8,867 9,040 357 4.25% 8,199 8,358 381 4.09%
Senior bonds 1,744 1,767 89 5.13% 1,744 1,765 89 5.13%
Total 10,611 10,808 447 4.39% 9,943 10,123 470 4.27%
(*) The weighted average cost of debt is the annualized cost of financial debt considering the nominal amount of the liabilities at the reporting date and the related transactions of currency and interest rate
hedging.
Details of issues and redemptions of subordinated liabilities and senior bonds
(nominal value in € million) 31/12/2023 31/12/2022
Issuances Redemptions Issuances net
of redemptions
Issuances Redemptions Issuances net
of redemptions
Subordinated liabilities 1,000 600 400 500 969 -469
Senior bonds 0
Total 1,000 600 400 500 969 -469
Our financial performance
115
Revolving credit facilities
Assicurazioni Generali has revolving credit facilities for a total amount of € 4.0 billion. They represent, in line with the best market
practice, an efficient tool to protect the Group’s financial flexibility in case of adverse scenarios.
The two revolving credit facilities, syndicated for a value of € 2.0 billion each, have a duration until 2025 and 2028, respectively.
The revolving credit facilities also present innovative features in terms of sustainability since their cost is linked to the targets on green
investments. This transaction further strengthens Generali’s commitment to sustainability and the environment, as set out in the
Charter of Sustainability Commitments and in the Generali Group Strategy on Climate Change.
This will only impact the Group’s liabilities linked to financing activities if the facilities are drawn down.
Liquidity
Cash and cash equivalents
(€ million) 31/12/2023 31/12/2022
Cash at bank and short-term securities 6,070 5,576
Cash and cash equivalents 148 332
Cash and balances with central banks 578 706
Money market investment funds unit 13,978 6,807
Other net cash and cash equivalents -3,423 -2,815
Cash and cash equivalents 17,352 10,606
The Group’s cash and cash equivalents exposures increased during the year to € 17,352 million (€ 10,606 million at 31 December
2022). This trend is in line with the purpose of supporting any liquidity needs arising from the operations of the Life segment and
the completion of extraordinary transactions planned for the first months of 2024. The increase is concentrated in money market
investment funds unit exposures, a choice driven by the high interest rates that particularly benefited in the latter part of 2023.
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
€ mln 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Senior debt Subordinated debt Hybrid debt
Details on maturity of subordinated liabilities and senior bonds (nominal value, € mln)
The average duration stood at 4.43 years at 31 December 2023 compared to 4.77 years at 31 December 2022.
Notes, Financial liabilities for further information
Annual Integrated Report and Consolidated Financial Statements 2023
116
Generali Group
LIFE SEGMENT
5
5. Changes in premiums, Life net inflows and new business were presented on equivalent terms (at constant exchange rates and consolidation scope). Changes in the operating result, general
account investments and Life technical provisions excluded any assets under disposal or disposed of during the same period of comparison.
The amounts were rounded and may not add up to the rounded total in all cases. The percentages presented can be affected by the rounding.
6. Paragraph 25 of IFRS 17 requires that the initial recognition of a group of insurance contracts is set from earliest of the following dates: a) the beginning of the coverage period of the group of
contracts, b) the date when the first payment from a policyholder becomes due, c) for a group of onerous contracts, when the group becomes onerous.
In France, group protection business generally allows for a one-year coverage (from 1 January until 31 December), with the contracts being issued or renewed in December of the previous year.
In 2022 some of the French group contracts effective from 2023 were onerous and, according to the above-mentioned paragraph, were recognized in 2022. The contracts signed-off in 2023 and
effective from 2024 are instead profitable and hence will be entirely recognized in 2024. For this reason, 2023 new production is artificially penalized compared to 2022.
Life net inflows decreased to € -1.3 billion, driven by the net
outflows of the savings and pension line, offset by the net inflows
of the unit-linked and protection lines. Gross written premiums
rose to € 51.3 billion (+2.0%).
New business (expressed in terms of present value of new
business premiums - PVNBP) at € 40,300 million, decreasing
by 9.2% (-4.9% neutralizing a specific IFRS 17
6
accounting
treatment related to contracts recognition).
New Business Value (NBV) at € 2,331 million (-7.7%), where the
enhanced profitability only partially compensated the reduction
of volumes.
Operating result stood at € 3,735 million (+1.7%) mainly due
to the improvement in the operating insurance services result.
40,300
3,735
31/12/2023
31/12/2023
31/12/2023
31/12/2023
31/12/2022
31/12/2022
31/12/2022
31/12/2022
44,449
3,672
2,528
50,565
-1,313
7,863
2,331
GROSS WRITTEN PREMIUMS AND NET INFLOWS (€ mln)
PVNBP (€ mln)
NBV (€ mln)
OPERATING RESULT (€ mln)
Gross written
premiums
Net inflows
51,346
Our financial performance
117
Performance of the Life segment
Premiums development
Life premiums
7
were € 51,346 million (+2.0% on equivalent terms). Both the savings and pension line (+10.0%), especially in Asia
(+28.7%), Italy (+11.3%) and France (+3.8%), and the protection line grew (+6.4%), in the main countries in which the Group operates.
The reduction in premiums of the unit-linked line (-13.1%) is concentrated in particular in France (-20.5%) and Italy (-16.3%).
Net inflows - premiums collected, net of claims and surrenders - were € -1,313 million. Net inflows of the protection line rose to
€4,552 million (€ 4,251 million at 31 December 2022), thanks to the development in Italy and France. Net inflows of the unit-linked
line amounted to € 4,357 million (€ 8,479 million at 31 December 2022), concentrated mainly in France and Germany. The net
outflows of the savings and pension line amounted to € -10,222 million (€ -4,868 million at 31 December 2022), in line with the
Group’s strategy to reposition its Life business portfolio, and reflected in particular the trends observed in Italy, France and Germany.
New Business Value
The NBV represents the expected value of future profits net of taxes referred to the new contracts issued over the reporting period
within the Life segment. The full year NBV is calculated as the simple sum of the NBV of each quarter, each of them calculated with
beginning of period operating and economic assumptions.
During 2022 the Group revised the methodology underlying the NBV calculation to ensure a better alignment with the requirements
of the recently introduced IFRS 17 standard. In this context, the NBV is defined as the contribution of the new business to the Life
CSM (NB CSM) including the following elements to provide a more accurate economic representation of the performance indicator,
while also granting consistency with the past:
• the value of short-term business measured under the Premium Allocation Approach (PAA);
• the value of investment contracts falling under IFRS 9;
• the look-through profits emerging outside the Life segment (mostly related to fees paid to internal asset managers) ;
• the impact of taxes, minority interests and other factors, that also include the cost of external reinsurance.
Compared to the previous Solvency II-based definition, the new indicator reflects different economic assumptions, contract
boundaries definition and the newly introduced risk adjustment in place of the cost of capital and cost of non-headgeable risks.
It should be noted that for the sake of presentation consistency, the results reported in this report with reference to the year 2022
have been restated based on the new definition of NBV. They therefore differ from those officially published with reference to the
2022 financial year.
The following table compares the NBV, the present value of future premiums related to New Business Production (PVNBP) and
the profitability expressed in terms of PVNBP (NBM) in 2023 with the correspondent value in 2022. The changes are reported on a
comparable basis, neutralizing the impact of variations in the scope and exchange rates.
7. Including premiums from investment contracts equal to € 1,383 million (€ 1,232 million at 31 December 2022).
31/12/2023 31/12/2022
Gross direct premiums by line of business (€ mln)
11,420
13,095
24,488
10,860
14,987
22,423
Savings and Pension
Protection
Unit-linked
Annual Integrated Report and Consolidated Financial Statements 2023
118
Generali Group
New Business Value
(€ million) 31/12/2023 31/12/2022 Change
Total New Business premiums 22,152 23,797 -6.8%
Annual premiums 2,202 2,168 2.2%
Single premiums 19,949 21,629 -7.6%
PVNBP 40,300 44,449 -9.2%
NBV 2,331 2,528 -7.7%
NBM 5.78% 5.69% 0.09 p.p.
From 2022 to 2023 the PVNBP decreased by 9.2%. This trend, caused by the challenging attractiveness of the financial product
offer and by the IFRS 17
8
accounting treatment required for the NB recognition of protection business in France, was amplified by
the impact of higher interest rates on the discounting of future premiums. In fact, the decrease of the New Business production
measured in terms of Annual Premium Equivalent was milder, amounting to -2.7%.
Neutralizing the impact of French protection business recognition, i.e. allocating the new business to the time of renewal, as in
Solvency 2, the total PVNBP decrease would have been limited to -4.9%.
In terms of lines of business, saving volumes slightly increased (+2.0%) thanks to the strong production registered in Asia together
with the growth in Italy, partially offset by the drop in Germany.
Regarding protection line, the slowdown observed (-12.7%) was primarily attributable to France (-47.5%). However, neutralizing the
aforementioned impact related to the recognition of collective protection business, the PVNBP variation would have turned positive
both at Group level (+5.2%) and in France (+9.7%).
Unit-linked business also significantly decreased (-18.5%) in almost all areas, mainly driven by the reduction registered in France
(-27.1%) and Italy (-27.0%) on account of the contraction on the hybrid sales, more marked for the unit-linked component especially
in France.
The new business profitability measured in PVNBP terms stood at 5.78%, increasing by 0.09 p.p.. Focusing on the lines of business,
the remarkable enhancement of protection, benefitting from the lower share of the less profitable French collective business, and
the improvement of saving business, boosted by the increase of interest rates across Europe, were partially counterbalanced by the
deterioration of unit-linked marginality, unfavorably driven by a less profitable product mix coupled with higher asset management
fees.
The table below displays the main elements of the NBV derivation starting from NB CSM.
New Business Value derivation
(€ million) 31/12/2023
NB CSM 2,796
Scope 654
Taxes, minorities and other -1,120
NBV 2,331
As previously mentioned, the value of contracts measured with the PAA, investment contracts and “look-through” profits (scope) are
added to the NB CSM. The obtained results are then net of the impacts of taxes, minorities and other factors, such as the cost of
external reinsurance (taxes, minorities and other).
8. Paragraph 25 of IFRS 17 requires that the initial recognition of a group of insurance contracts is set from earliest of the following dates: a) the beginning of the coverage period of the group of
contracts, b) the date when the first payment from a policyholder becomes due, c) for a group of onerous contracts, when the group becomes onerous.
In France, group protection business generally allows for a one-year coverage (from 1 January until 31 December), with the contracts being issued or renewed in December of the previous year.
In 2022 some of the French group contracts effective from 2023 were onerous and, according to the above-mentioned paragraph, were recognized in 2022. The contracts signed-off in 2023 and
effective from 2024 are instead profitable and hence will be entirely recognized in 2024. For this reason, 2023 new production is artificially penalized compared to 2022.
Our financial performance
119
Operating result
Life operating result stood at € 3,735 million (€ 3,672 million at 31 December 2022). The operating insurance services result improved
to € 2,901 million (€ 2,841 million at 31 December 2022), while operating investment result was substantially stable at € 833 million
(€ 832 million at 31 December 2022).
Operating insurance services result
Life segment operating result: operating insurance services result
(€ million) 31/12/2023 31/12/2022 Change
Life segment operating insurance services result 2,901 2,841 2.1%
CSM release 3,035 2,889 5.0%
Risk adjustment release 155 156 -0.9%
Loss component -149 -155 -4.2%
Experience variance and other technical result -32 6 n.m.
Other operating income and expenses -108 -55 96.0%
Operating insurance services result amounted to € 2,901 million (€ 2,841 million at 31 December 2022), mainly composed by the
CSM release, equal to € 3,035 million (€ 2,889 million at 31 December 2022), which more than offsets the negative one-offs on
reinsurance accepted business.
Operating investment result
Life segment operating result: operating investment result
(€ million) 31/12/2023 31/12/2022 Change
Life segment operating investment result 833 832 0.2%
Operating investment income 18,177 -9,813 n.m.
Interest income and other income 11,087 10,451 6.1%
Net operating realized gains on financial instruments and land and buildings (investment
properties) 752 -1,599 n.m.
Net operating unrealized gains on financial instruments and land and buildings (investment
properties) 6,979 -17,855 n.m.
Net operating ECL and impairment losses on financial instruments and land and buildings
(investment properties) 58 -215 n.m.
Other expenses from other financial instruments and land and buildings (investment
properties) -307 -330 -7.1%
Interest expenses on operating debt -391 -264 48.0%
Insurance finance expenses -17,344 10,645 n.m.
31/12/2023 31/12/2022
832
3,672
2,841
833
3,735
2,901
Operating result (€ mln)
Operating insurance services result
Operating investment result
Annual Integrated Report and Consolidated Financial Statements 2023
120
Generali Group
Operating investment result amount to € 833 million (€ 832 million at 31 December 2022) and comprises:
• interest income and other income, which includes dividends and other recurring income, amounting to € 11,087 million (€ 10,451
million at 31 December 2022);
• net operating realized gains on financial instruments and land and buildings (investment properties) for € 752 million (€ -1,599
million at 31 December 2022);
• net operating unrealized gains on financial instruments and land and buildings (investment properties) which improved to € 6,979
million (€ -17,855 million at 31 December 2022);
• net operating ECL and impairment losses on financial instruments and land and buildings (investment properties) for € 58 million
(€ -215 million at 31 December 2022);
• other expenses from other financial instruments and land and buildings (investment properties) for € -307 million (€ -330 million at
31 December 2022);
• interest expenses on operating debt € -391 million (€ -264 million at 31 December 2022);
• insurance finance expenses for € -17,344 million (€ 10,645 million at 31 December 2022).
Other information on the Life segment
Life segment operating result and non-operating result
(€ million) 31/12/2023 31/12/2022 Change
Life segment operating result 3,735 3,672 1.7%
Operating insurance services result 2,901 2,841 2.1%
Operating investment result 833 832 0.2%
Life segment non-operating result 169 -557 n.m.
Life segment earnings before taxes 3,903 3,115 25.3%
Life segment indicators by country
(€ million) Operating result CSM release
31/12/2023 31/12/2022 31/12/2023 31/12/2022
Italy 1,591 1,472 1,263 1,289
France 788 813 658 568
DACH 732 713 697 610
Germany 556 548 485 404
Austria 81 69 81 83
Switzerland 95 96 131 122
International 838 710 395 394
CEE 284 198 183 173
Mediterranean & Latin America 257 231 74 72
Asia 297 281 139 150
Group holdings and other companies (*) -215 -35 22 30
Total 3,735 3,672 3,035 2,889
(*) The data relating to Operating result also include country adjustments.
Our financial performance
121
Life segment indicators by country
(€ million) Gross written premiums Net inflows
31/12/2023 31/12/2022 31/12/2023 31/12/2022
Italy 18,538 17,755 -3,022 1,170
France 11,553 12,121 -1,685 975
DACH 12,965 12,947 761 2,823
Germany 10,693 10,655 657 2,444
Austria 1,189 1,220 -94 153
Switzerland 1,084 1,072 199 226
International 7,175 6,623 2,599 2,931
CEE 1,171 1,123 290 259
Mediterranean & Latin America 1,359 1,303 71 181
Asia 4,646 4,196 2,239 2,492
Group holdings and other companies 1,115 1,120 33 -36
Total 51,346 50,565 -1,313 7,8 63
Life segment direct written premiums by line of business and by country
(€ million) Savings and Pension Protection Unit-linked Total
31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022
Italy 13,975 12,552 714 603 3,849 4,600 18,538 17,755
France 3,215 3,096 2,713 2,390 4,269 5,369 10,197 10,855
DACH 3,532 3,601 5,301 5,111 4,132 4,179 12,965 12,891
Germany 2,951 2,999 4,684 4,504 3,058 3,097 10,693 10,599
Austria 419 432 482 472 287 316 1,188 1,220
Switzerland 162 170 135 135 786 766 1,083 1,072
International 3,766 3,174 2,542 2,610 846 817 7,154 6,601
CEE 171 189 636 575 359 353 1,167 1,117
Mediterranean & Latin America 292 275 792 816 275 212 1,359 1,303
Asia 3,303 2,710 1,115 1,219 211 252 4,629 4,181
Group holdings and other companies 0 0 150 148 0 21 150 169
Total 24,488 22,423 11,420 10,860 13,095 14,987 49,003 48,271
Life segment indicators by country
(€ million) PVNBP NBV NBM
31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022
Italy 15,617 16,539 1,030 1,140 6.60% 6.89%
France 9,199 12,665 502 565 5.45% 4.46%
DACH 10,115 10,382 462 494 4.57% 4.76%
Germany 8,607 8,822 361 383 4.19% 4.34%
Austria 1,020 1,009 62 67 6.12% 6.62%
Switzerland 489 550 39 44 7.98% 8.08%
International 5,227 4,737 334 328 6.40% 6.92%
CEE 965 966 93 90 9.68% 9.27%
Mediterranean & Latin America 1,236 1,147 115 125 9.32% 10.90%
Asia 3,027 2,624 126 113 4.16% 4.32%
Group holdings and other companies 141 127 3 0 2.16% 0.17%
Total 40,300 44,449 2,331 2,528 5.78% 5.69%
Annual Integrated Report and Consolidated Financial Statements 2023
122
Generali Group
Financial position of the Life segment
Investments
Life segment investments
(€ million) 31/12/2023 31/12/2022 Change
Equity investments 21,812 22,399 -2.6%
Fixed income investments 236,649 235,608 0.4%
Bonds 197,940 199,138 -0.6%
Other fixed income investments 38,709 36,470 6.1%
Land and buildings (investment properties and similar investments) 23,875 25,606 -6.8%
Other investments 6,164 5,900 4.5%
Investments in subsidiaries, associated companies and joint ventures 3,129 5,252 -40.4%
Derivatives -197 -146 35.0%
Other investments 3,233 794 307.3%
Cash and cash equivalents 10,542 7,577 39.1%
Total General Account investments 299,042 297,089 0.7%
Financial assets linked to technical reserves where the investment risk is borne by the
policyholders, to financial liabilities related to investment contracts, and reserves linked to
pension funds 108,265 95,251 13.7%
Group's total investments 407,307 392,340 3.8%
At 31 December 2023, the Group’s total investments in Life segment amounted to € 407,307 million (+3.8% compared to 31
December 2022), increasing during the year following in particular the rise of financial assets linked to technical reserves where
the investment risk is borne by the policyholders, to financial liabilities related to investment contracts, and reserves linked to
pension funds (€ 108,265 million, +13.7% compared to 31 December 2022) and, in to a lesser extent, General Account investments
(€299,042 million, +0.7% compared to 31 December 2022).
Financial assets linked to technical reserves where the investment risk is borne by the policyholders, to financial liabilities related
to investment contracts, and reserves linked to pension funds increased following the positive performance of the markets and
funding net, while General Account investments are mainly supported by the increase of the book value of the bond portfolio, as a
consequence of the reduction in interest rates.
With reference to General Account investments asset mix, there was an increase in cash and cash equivalents exposures, amounting
to € 10,542 million (€ 7,577 million at 31 December 2022), and a reduction in land and buildings (investment properties and similar
investments), totalling € 23,875 million (€ 25,606 million at 31 December 2022). On the contrary, fixed income investments and equity
investments remained substantially stable, respectively at € 236,649 million (€ 235,608 million at 31 December 2022) and € 21,812
million (€ 22,399 at 31 December 2022).
The average duration of the bond portfolio stood at 8.7 (8.5 at 31 December 2022).
Life Segment Return of Investments
(%) Total Life of which: Contracts with direct participation
features
31/12/2023 31/12/2022 31/12/2023 31/12/2022
P&L return 3.1% 0.6% 2.9% 0.5%
Current return 3.1% 2.9% 3.0% 2.8%
Harvesting rate 0.1% -2.2% 0.1% -2.3%
Return from gains/losses through equity 3.9% -19.0% 4.1% -20.0%
Comprehensive return 7.0% -18.3% 7.0% -19.5%
The current return of Life segment increased at 3.1% (2.9% at 31 December 2022).
The increase is mainly recorded in fixed income investments, which also benefit from the indirect bond component.
The P&L return recorded a substantial increase, reaching 3.1% (0.6% at 31 December 2022), also supported by the harvesting
rate, amounting 0.1% (-2.2% at 31 December 2022), following a greater contribution of unrealized gains recognized in the income
statement.
Our financial performance
123
Life insurance liabilities
Life insurance liabilities
(€ million) 31/12/2023 31/12/2022
Life insurance liabilities 376,663 362,029
Present value of future cash flows 344,317 330,153
Risk Adjustment 1,435 1,669
Contractual Service Margin 30,911 30,207
At 31 December 2023, the gross insurance liabilities of the Life segment stood at € 376,663 million, increasing by € 14,633 million
from the previous year-end value of € 362,029 million (+4.0%). The increase was driven by the present value of future cash-flows
that moved from € 330,153 million to € 344,317 million, mainly on account of new business contribution and unwinding of discount,
partially counterbalanced by the impact of operating variances mostly due to the surrenders experienced over the period. The
adjustment for non-financial risks slightly decreased from € 1,669 million in 2022 to € 1,435 million in 2023. The CSM increased from
€ 30,207 million to € 30,911 million. CSM movement details are provided below.
CSM Life development
(€ million) 31/12/2023
Opening CSM 30,207
New Business CSM 2,796
Expected return 1,692
Economic variances 804
Operating variances -1,164
CSM before release 34,336
CSM release -3,035
Change in scope and other -391
Closing CSM 30,911
The CSM increased by 2.3% compared to 31 December 2022, moving from € 30,207 million to € 30,911 million.
The drivers that explained this variation were:
• new business contribution equal to € 2,796 million, mainly driven by Italy (€ 1,283 million), France (€ 631 million) and Germany
(€380 million);
• expected return (€ 1,692 million), including the unwinding of discount and the systematic variance due to expected realization of
real-world assumptions;
• economic variances (€ 804 million), led to the positive impacts of equity performance, lower market volatilities and reduced
spreads of Italian government bonds, partially compensated by lower interest rates and the negative trend of real estates;
• operating variances (€ -1,164 million), mainly driven by the experience due to lapses in Italy and France, which was also reflected
in updated future surrender assumptions;
• CSM release to P&L (€ -3,035 million), including both the systematic variance due to expected realization of real-world assumptions
and a quota of CSM released according to the pattern of services rendered over the reporting period;
• the impact referred to the disposal of Generali Deutschland Pensionskasse.
Annual Integrated Report and Consolidated Financial Statements 2023
124
Generali Group
Premiums grew to € 31.1 billion (+12.0%), thanks to the
performance of both business lines.
Group CoR improved to 94.0% (-1.4 p.p.), despite the increase
in natural catastrophe claims.
CoR undiscounted at 96.7% (-0.3 p.p.).
Operating result grew to € 2,902 million (+15.8%); thanks to the
positive development of the combined ratio which is partially
offset by the deterioration of the operating investment result.
31,120
2,507
31/12/2023
31/12/2023
31/12/2023
31/12/2022
31/12/2022
31/12/2022
28,454
95.4%
2,902
GROSS WRITTEN PREMIUMS (€ mln)
COMBINED RATIO (%)
OPERATING RESULT (€ mln)
P&C SEGMENT
9
9. Changes in premiums were presented on equivalent terms (at constant exchange rates and consolidation scope). Changes in the operating result and general account investments excluded any
assets under disposal or disposed of during the same period of comparison.
The amounts were rounded and may not add up to the rounded total in all cases. The percentages presented can be affected by the rounding.
94.0%
Our financial performance
125
The operating result of the P&C segment amounted to € 2,902 million (€ 2,507 million at 31 December 2022). The increase was
driven by the higher operating insurance services result, from € 1,297 million to € 1,807 million, offset by the reduction of the
operating investment result amounting to € 1,095 million (€ 1,210 million at 31 December 2022).
Performance of the Property & Casualty segment
Premiums development
P&C premiums grew to € 31,120 million (+12.0% on equivalent terms) thanks to the positive performance of both business lines.
The non-motor line strongly improved (+8.7%), achieving widespread growth across all the main areas in which the Group operates.
Europ Assistance premiums grew by 23.5%, thanks to continued volume expansion in the travel business.
The motor line rose by 17.5%, thanks to the positive dynamics seen in Italy (+4.9%), France (+7.5%), CEE (+11.9%) and Argentina
(+216.0%). Excluding the contribution from Argentina, a country impacted by hyperinflation, motor line premiums would have
increased by 6.3%.
Operating result
31/12/2023 31/12/2022
Gross direct premiums by line of business (€ mln)
Motor
Non-motor
19,055
10,599
17, 2 54
9,915
31/12/2023 31/12/2022
1,095
2,902
1,807
1,210
2,507
1,297
Operating result (€ mln)
Operating insurance services result
Operating investment result
Annual Integrated Report and Consolidated Financial Statements 2023
126
Generali Group
Operating insurance services result
Property & Casualty segment operating result: operating insurance services result
(€ million) 31/12/2023 31/12/2022 Change
Property & Casualty segment operating insurance services result 1,807 1,297 39.3%
Insurance contract revenues 30,207 28,141 7.3%
Total incurred claims -19,585 -18,286 7.1%
Insurance expenses -8,445 -7,744 9.0%
Reinsurance result -8 -547 -98.5%
Other operating income and expenses -361 -266 35.6%
Operating insurance services amounted to € 1,807 million (€ 1,297 million at 31 December 2022). The increase was the result of the
increase in volumes and the improvement in the combined ratio, despite the significant impact of natural catastrophe claims.
Technical indicators
31/12/2023 31/12/2022 Change
Loss ratio 64.9% 66.9% -2.1 p.p.
Current year loss ratio 67.9% 68.8% -0.9 p.p.
Current year loss ratio undiscounted (excl. Nat Cat) 66.9% 68.0% -1.2 p.p.
Natural catastrophe losses undiscounted 3.7% 2.4% 1.4 p.p.
Current year discounting -2.7% -1.6% -1.1 p.p.
Prior year's loss ratio -3.0% -1.8% -1.2 p.p.
Expense ratio 29.2% 28.5% 0.7 p.p.
Administration and acquisition expenses ratio 28.0% 27.5% 0.4 p.p.
Acquisition expenses 20.4% 19.9% 0.5 p.p.
Administration expenses and other attributable expenses 7.6% 7.6% 0.0 p.p.
Other operating income and expenses 1.2% 0.9% 0.2 p.p.
Combined ratio 94.0% 95.4% -1.4 p.p.
Combined ratio undiscounted 96.7% 97.0 % -0.3 p.p.
The combined ratio was 94.0% (95.4% at 31 December 2022) thanks to the positive development in the loss ratio to 64.9% (-2.1
p.p.), partly compensated by higher expense ratio at 29.2% (+0.7 p.p.). The positive dynamics in the loss ratio benefited from a lower
current year loss ratio undiscounted (excluding Nat Cat) and a higher discounting effect. The undiscounted natural catastrophes
impact on the Combined Ratio was equal to 3.7% (2.4% in at 31 December 2022), mainly due to floods and hailstorms in Italy,
Germany and CEE. The impact from natural catastrophes claims amounted to € -1,127 million (€ -663 million at 31 December 2022).
The contribution from prior year development stood at -3.0% (-1.8% at 31 December 2022).
The increase in the expense ratio was driven by higher acquisition costs and by the constant increase of the non-motor premiums
weight.
The undiscounted combined ratio - which excludes the discounting effect from claims reserved - improved to 96.7% (97.0% at 31
December 2022).
Our financial performance
127
Operating investment result
Property & Casualty segment operating result: operating investment result
(€ million) 31/12/2023 31/12/2022 Change
Property & Casualty segment operating investment result 1,095 1,210 -9.5%
Operating investment income 1,389 1,248 11.3%
Interest income and other income 1,684 1,477 14.1%
Other expenses from other financial instruments and land and buildings (investment
properties) -194 -173 12.3%
Interest expenses on operating debt -101 -56 81.4%
Insurance finance expenses -294 -39 n.m.
The operating investment result amounted to € 1,095 million (€ 1,210 million at 31 December 2022) and comprises:
• interest income and other income, which includes dividends and other recurring income, for € 1,684 million (€ 1,477 million at 31
December 2022) mainly due to the contribution of fixed-income instruments;
• other expenses from other financial instruments and land and buildings (investment properties) for € -194 million (€ -173 million at
31 December 2022);
• interest expenses on operating debt amounting to € -101 million (€ -56 million at 31 December 2022):
• insurance finance expenses increase to € -294 million (€ -39 million at 31 December 2022), growing also following the interest rate
dynamics.
Other information on the Property & Casualty segment
Property&Casualty segment operating and non-operating result
(€ million) 31/12/2023 31/12/2022 Change
Property&Casualty segment operating result 2,902 2,507 15.8%
Operating insurance services result 1,807 1,297 39.3%
Operating investment result 1,095 1,210 -9.5%
Property&Casualty segment non-operating result -679 -1,138 -40.4%
Property&Casualty segment earnings before taxes 2,224 1,368 62.5%
Property&Casualty segment indicators by country
(€ million) Gross written premiums Operating result
31/12/2023 31/12/2022 31/12/2023 31/12/2022
Italy 8,790 8,310 443 883
France 3,943 3,449 406 229
DACH 6,654 6,370 804 746
Germany 4,130 3,959 511 436
Austria 1,785 1,661 249 262
Switzerland 740 750 44 48
International 8,882 8,017 665 494
CEE 3,656 3,317 385 296
Mediterranean & Latin America 3,873 3,839 194 135
Asia 1,354 861 87 63
Group holdings and other companies (*) 2,850 2,308 585 155
Total 31,120 28,454 2,902 2,507
(*) The data relating to Operating result also include country adjustments.
Annual Integrated Report and Consolidated Financial Statements 2023
128
Generali Group
Property&Casualty segment direct written premiums by line of business and by country
(€ million) Motor Non-motor Total
31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022
Italy 3,167 3,019 5,333 5,045 8,500 8,064
France 1,241 1,139 2,631 2,240 3,872 3,379
DACH 2,523 2,466 4,114 3,895 6,638 6,361
Germany 1,503 1,478 2,614 2,476 4,117 3,954
Austria 717 677 1,064 980 1,780 1,657
Switzerland 304 310 437 439 740 750
International 3,577 3,264 4,917 4,377 8,494 7,641
CEE 1,774 1,559 1,841 1,720 3,614 3,280
Mediterranean & Latin America 1,409 1,508 2,372 2,239 3,781 3,747
Asia 394 197 705 418 1,099 615
Group holdings and other companies 91 27 2,060 1,697 2,150 1,724
Total 10,599 9,915 19,055 17,254 29,654 27,169
Technical indicators by country
Combined ratio (*) Loss ratio Expense ratio
31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022
Italy 97.4% 94.5% 70.5% 68.4% 26.9% 26.2%
France 92.8% 97.3% 68.5% 74.6% 24.3% 22.8%
DACH 92.1% 94.0% 63.3% 65.1% 28.8% 28.9%
Germany 91.7% 94.9% 62.5% 65.6% 29.2% 29.3%
Austria 91.4% 90.5% 63.3% 62.2% 28.1% 28.3%
Switzerland 96.4% 96.9% 68.1% 69.1% 28.3% 27.8%
International 96.1% 97.9% 64.0% 67.3% 32.1% 30.6%
CEE 91.8% 93.8% 58.4% 61.0% 33.4% 32.8%
Mediterranean & Latin America 99.4% 101.4% 68.7% 70.3% 30.7% 31.1%
Asia 97.9% 98.1% 65.5% 76.6% 32.4% 21.5%
Group holdings and other companies 82.4% 88.9% 47.0% 47.0% 35.4% 41.9%
Total 94.0% 95.4% 64.9% 66.9% 29.2% 28.5%
(*) NAT CAT claims undiscounted impacted on the Group combined ratio for 3.7 p.p., of which 7.5 p.p. in Italy, 2.7 p.p. in France, 4.1 p.p. in DACH, 2.0 p.p. in International and -2.3 p.p. in Group holdings and
other companies (at 31 December 2022 NAT CAT claims undiscounted impacted on the Group combined ratio for 2.4 p.p., of which 3.1 p.p. in Italy, 3.3 p.p. in France, 2.5 p.p. in DACH, 0.7 p.p. in International
and 3.7 p.p. in Group holdings and other companies).
Our financial performance
129
Financial position of the Property&Casualty segment
Investments
Property&Casualty segment investments
(€ million) 31/12/2023 31/12/2022 Change
Equity investments 3,137 2,956 6.1%
Fixed income investments 32,690 33,081 -1.2%
Bonds 27,602 26,686 3.4%
Other fixed income investments 5,088 6,395 -20.4%
Land and buildings (investment properties and similar investments) 3,154 3,331 -5.3%
Other investments 3,385 2,960 14.3%
Investments in subsidiaries, associated companies and joint ventures 2,983 2,577 15.8%
Derivatives 42 48 -11.5%
Other investments 359 336 6.9%
Cash and cash equivalents 3,817 3,143 21.4%
Total investments 46,183 45,473 1.6%
At 31 December 2023, investments in the Property&Casualty segment amounted to € 46,183 million (+1.6% compared to 31
December 2022).
Cash and cash equivalents exposures recorded an increase at € 3,871 million (€ 3,143 million at 31 December 2022) and also
equity investments rose at € 3,137 million (€ 2,956 million at 31 December 2022). On the contrary, fixed income investments and
land and buildings (investment properties and similar investments) decreased, respectively to € 32,690 million (€ 33,081 million at 31
December 2022) and to € 3,154 million (€ 3,331 million at 31 December 2022).
The average duration of the bond portfolio amounted to 4.8 (5.1 at 31 December 2022).
Property&Casualty Segment Return on Investments
(%) 31/12/2023 31/12/2022
P&L return 3.0% 1.5%
Current return 3.5% 3.3%
Harvesting rate -0.2% -1.5%
Return from gains/losses through equity 3.3% -9.6%
Comprehensive return 6.3% -8.1%
The current return of the P&C segment increased to 3.5% (3.3% at 31 December 2022). This increase is due in particular to the
increase in the fixed income investments return.
The P&L return recorded a substantial increase, reaching 3.0% (1.5% at 31 December 2022), also supported by the harvesting rate,
with an increase at -0.2% (-1.5% compared to 31 December 2022), following lower unrealized losses recognized in the income
statement.
Annual Integrated Report and Consolidated Financial Statements 2023
130
Generali Group
P&C insurance liabilities
Property & Casualty insurance liabilities
(€ million) 31/12/2023 31/12/2022
Property & Casualty insurance liabilities
35,347 33,443
Liabilites for Remaining Coverage 4,920 5,146
Liabilities for Incurred Claims 30,428 28,298
Gross insurance liabilities of P&C segment increased by 5.7%, from € 33,433 million to € 35,347 million.
The overall increase reflected the evolution of liabilities for incurred claims which, mainly following the growth in gross premiums at
Group level and the greater loss ratio due to catastrophe events, increased by € 2,130 million compared to the value of the previous
year, amounting to € 30,428 million at the end of 2023.
The liability for remaining coverage amounted to € 4,920 million, decreasing compared to the value at 31 December 2022, following
portfolio movements that occurred during the year.
Our financial performance
131
ASSET & WEALTH MANAGEMENT SEGMENT
Asset & Wealth Management segment operating result
(€ million) 31/12/2023 31/12/2022 Change
Asset & Wealth Management segment operating result 1,001 954 4.9%
Asset Management 559 638 -12.3%
Banca Generali (*) 441 316 39.6%
(*) Operating contribution from Banca Generali group as per Generali’s view.
The operating result of the Asset & Wealth Management segment stood at € 1,001 million (+4.9%).
In particular, the Asset Management result stood at € 559 million (-12.3%) reflecting mainly the market effect on the average AUM
and the lower performance fees.
The operating result of Banca Generali group rose to € 441 million (+39.6%) thanks to the positive contribution of the net interest
margin and the continuous diversification of fee income sources.
Banca Generali group net inflows for 2023 amounted to € 5.9 billion, up by 3% compared to the previous year.
Focus on Asset Management
Key figures
(€ million) 31/12/2023 31/12/2022 Change
Operating revenues 1,089 1,117 -2.5%
Operating expenses -530 -479 10.6%
Net result
10
393 453 -13.3%
Cost/Income ratio 48.6% 42.9% +5.7 p.p.
(€ billion) 31/12/2023 31/12/2022 Change
Asset Under Management 516 505 2.2%
of which third-party Assets Under Management 105 102 2.3%
Operating revenues decreased by 2.5%, reaching € 1,089 million, primarily due to the drop of the performance fees (-33.6%) and
recurring fees (-1.5%) resulting from the decrease in the average AUM in 2023 compared to 2022.
Operating expenses amounted to € -530 million (+10.6%). The increase is mainly attributable to investments in operating activities
and strategic projects aimed at the reorganisation of the Asset Management segment.
The cost/income ratio - calculated as the ratio of operating costs to operating revenues - was 48.6% (+5.7 p.p.).
Net result
11
of Asset Management stood at € 393 million (-13.3%).
The Assets Under Management was € 516 billion (+2.2%). The increase is due to the stabilisation of interest rates in the second half
of the year and their rapid decline in the last few months of 2023 and the good performance of the markets during the year.
Third-party Assets Under Management amounted to € 105 billion (+2.3%), with € -1.1 billion net outflows from external clients,
mostly related to the non-renewal of a single institutional mandate.
10. After minorities.
11. After minorities.
Annual Integrated Report and Consolidated Financial Statements 2023
132
Generali Group
HOLDING AND OTHER BUSINESSES SEGMENT
Holding and other businesses segment operating result
(€ million) 31/12/2023 31/12/2022 Change
Holding and other businesses segment operating result -320 -339 -5.7%
Other businesses (*) 252 209 20.7%
Operating holding expenses -572 -548 4.4%
(*) Including other financial businesses, pure financial holdings, international service activities and any other non-core businesses.
Operating result of the Holding and other businesses segment improved to € -320 million (€ -339 million at 31 December 2022).
The contribution from Other businesses was positive, standing at € 252 million (€ 209 million at 31 December 2022), mainly due to
the improvement recorded in France, from higher intragroup dividends, and Planvital.
Operating holding expenses increased by 4.4% mainly due to the increase in costs related to personnel and projects for the
implementation of new strategic initiatives.
Our financial performance
133
12. The indicated market shares and ranking, based on written premiums, refer to the most recent official data. The change in the number of our people was calculated on the number of our people
at year-end 2022, which was restated according to the different Group’s managerial structure.
Italy
Gross written premiums
€ 27,328 mln
+4.8%
Total operating result
€ 1,978 mln
-15.0%
Our people
14,858
-1.6%
Life market share
19.8%
Property & Casualty market share
19.8%
Ranking
1
st
1
st
Life and 1
st
P&C
In a global context influenced by the continuation of the conflict in Ukraine and the start of the most recent one in the Middle East with
consequences on the macro-economic scenario, Generali once again confirmed itself to be the leading company in the Italian insurance
market, with an overall market share of 18.6% (up compared to the previous year). The company stood out due to its resilience and
solidity in a scenario characterised by inflation, a rise in interest rates and market volatility, thanks to innovative insurance solutions for
its customers in the Life and P&C segments.
Production remained strongly focused on the agency channel, in which the leadership position in the insurance market of Generali
Italia and Alleanza Assicurazioni was recently strengthened by the entry of Cattolica. In addition to the result of sales via agencies, the
consolidated position in the direct P&C and Life channel of Genertel and Genertellife, the first digital native company in Italy, recently
renewed in terms of brand and operating model, was added. The partnership with Banca Generali has also made it possible to extend
the range of insurance, pension and savings products.
In 2023, Generali presented itself to the Italian market with five distinct brands with a clear strategic positioning: Generali Italia (retail and
SME market), Alleanza (households), Cattolica (retail and SME market with particular focus on the third sector, religious organisations
and the agricultural world), DAS (legal protection and assistance) and Genertel with Genertellife (digital channels).
During 2023, the strategic plan “Partner di Vita 24 - Pronti al futuro” came to life, based on three objectives: pursue profitable growth,
guarantee an excellent customer experience with an omni-channel approach and valuable consulting, and lastly streamline the
operating machine. The challenging macroeconomic context was also an opportunity for a significant acceleration of the Cattolica
integration process, which took shape with the corporate reorganisation of 1 July 2023, and for a significant consolidation of growth in
the P&C segment. In this segment, the extraordinary atmospheric phenomena that occurred in 2023 led to actions aimed at mitigating
and preventing natural catastrophes claims. In conclusion existing partnerships were consolidated and new ones developed to build
ecosystems in the areas of mobility, home, health and technology. Jeniot, a company launched by Generali Italia at the end of 2018 that
develops innovative services in the Internet of Things and connected insurance, also continued to grow.
LIFE SEGMENT
Life premiums
€ 18,538 mln
+4.4%
Life OR
€ 1,591 mln
+8.1%
PVNBP
€ 15,617 mln
-5.7%
NBV
€ 1,030 mln
-9.7%
The trend in Life premiums showed growth in the protection line and savings and pension line, partially offset by the drop in unit-
linked products, also deriving from the macroeconomic context.
OUR MAIN MARKETS: POSITIONING
12
AND
PERFORMANCE
Annual Integrated Report and Consolidated Financial Statements 2023
134
Generali Group
New business (expressed in terms of present value of new business premiums - PVNBP) amounted to
€ 15,617 million, reflecting a 5.7% decrease compared to 2022. The overall negative PVNBP trend was mainly due to the challenging
attractiveness of the product offer in the Italian market.
With reference to the business lines, there was a more pronounced drop of unit-linked line (-27.0%), partially offset by an increase of
savings and risk products (+4.0% and +7.9% respectively).
The profitability of new business on the PVNBP (NBM) slowed down by 0.30 pp on equivalent terms, from 6.89% to 6.60% in 2023.
The positive impact related to the rise in interest rates was more than offset by the review of certain contract conditions to the benefit
of policyholders.
New business value (NBV) amounted to € 1,030 million (-9.7%).
P&C SEGMENT
P&C premiums
€ 8,790 mln
+5.8%
P&C OR
€ 443 mln
-49.8%
CoR
97.4%
+2.9 p.p.
P&C premiums amounted to € 8,790 million, with an increase of 5.8%, thanks to the growth in both business lines. The motor
line recorded growth of 4.9%, thanks to the improvement of the retail segment due to the gradual recovery of inflationary impacts,
while the fleets segment was stable. In this context, the focus on maintaining profitability and the development of smart-pricing
models thanks to advanced analytics activities is confirmed. The increase observed in the non-motor line (+5.7%) is driven by the
renewal of the product range through the development of new services and related products and the favourable moment of the
Health market.
The combined ratio increased by 2.9 p.p., equal to 97.4%, due to a higher loss ratio linked to natural events, in particular in July.
Net of these natural catastrophes events, the CoR showed an improvement compared to last year, also net of the positive impact of
discounting (with an improvement of 0.6 p.p.).
France
Gross written premiums
€ 15,496 mln
-2.1%
Total operating result
€ 1,290 mln
+20.3%
Our people
6,514
-1.2%
Life market share
5.4%
P&C market share
5.2%
A&H market share
8.9%
Ranking
7
th
8
th
Life, 8
th
P&C
and 4
th
A&H
Generali has been active in France since 1831 with one of the Group’s first foreign branches. The operating structure was consolidated
toward the mid-2000s, when the merger of the various brands forming the Group led to the creation of one of the country’s largest
insurance companies. Generali France operates with a multi-channel approach of agents, employed sales persons, brokers, financial
advisors, banks, direct channels and affinity groups. The multiplicity of the distribution forms reflects the market segment served and
the type of product sold, with focus always placed on the customer. Generali France boasts a leadership position in Life savings and
pension products distributed via the Internet and for the so-called affluent customers, just as holds true in the market of supplementary
pensions for self-employed workers. The presence of professionals, SMEs and personal risks in the segments is also significant.
Also in France, as in the main geographical areas in which the Group operates, a new strategic initiative Performance 2024 was
launched in 2022 in line with Lifetime Partner 24: Driving growth. Based on three pillars, three levers and clear objectives for the next
three years, the strategy aims to consolidate the bond of trust in the relationship with the customers, supporting them throughout life, in
order to strengthen the brand and image in the area. Furthermore, sustainability is a key element of the strategy with a view to profitable
and responsible growth.
Our financial performance
135
13. Paragraph 25 of IFRS 17 requires that the initial recognition of a group of insurance contracts is set from earliest of the following dates: a) the beginning of the coverage period of the group of
contracts, b) the date when the first payment from a policyholder becomes due, c) for a group of onerous contracts, when the group becomes onerous.
In France, group protection business generally allows for a one-year coverage (from 1 January until 31 December), with the contracts being issued or renewed in December of the previous year.
In 2022 some of the French group contracts effective from 2023 were onerous and, according to the above-mentioned paragraph, were recognized in 2022. The contracts signed-off in 2023 and
effective from 2024 are instead profitable and hence will be entirely recognized in 2024. For this reason, 2023 new production is artificially penalized compared to 2022.
Generali France continued its advertising campaign on multiple channels (television, press, billboards and digital platforms) aimed at
generating more contacts and increasing the number of leads.
2023 saw the full merger of the insurance company La Médicale; after only 18 months from the acquisition, the legal merger was
completed. Generali France has now entered a new Healthcare and Professionals market by offering a complete range of insurance
products specifically designed for independent healthcare professionals, with a dedicated network of agents, under the La Médicale
brand.
LIFE SEGMENT
Life premiums
€ 11,553 mln
-4.7%
Life OR
€ 788 mln
-3.1%
PVNBP
€ 9,199 mln
-27.4%
NBV
€ 502 mln
-11.3%
Life premiums decreased by 4.7% compared to 2022, in particular in the unit-linked products (-20.5%) while the protection line and
savings and pension line increased by 13.5% and 3.8%, respectively.
New business (expressed in terms of present value of new business premiums - PVNBP) recorded a significant drop (-27.4%).
The contraction was mainly attributable to the application of the initial recognition requirements of IFRS 17
13
to the 2023 collective
protection business and to the reduction of the hybrid sales. Neutralizing the IFRS 17 initial recognition effect on the collective
protection business, the PVNBP decrease would have been less pronounced and equal to -12.1%.
The profitability of new business on the PVNBP (NBM) grew by 0.99 pp, from 4.46% in 2022 to 5.45% in 2023. The remarkable
enhancement of protection business, benefitting from the lower share of the less profitable collective business, along with the
improvement of saving business, boosted by the increase of interest rates, was partly offset by the deterioration of unit-linked
marginality, unfavorably driven by a less profitable product mix coupled with higher asset management fees.
New business value (NBV) amounted to € 502 million (-11.3%).
P&C SEGMENT
P&C premiums
€ 3,943 mln
+6.9%
P&C OR
€ 406 mln
+77.2%
CoR
92.8%
-4.5 p.p.
P&C premiums grew by 6.9%, driven by the dynamic improvement of the portfolio, both in the motor and non-motor lines.
The improvement in the combined ratio (-4.5 p.p.) is attributable to both the current and prior years loss ratio, in addition to the
positive impact of discounting.
Annual Integrated Report and Consolidated Financial Statements 2023
136
Generali Group
DACH: Germany, Austria and Switzerland
Gross written premiums
€ 19,620 mln
+1.3%
Total operating result
€ 1,495 mln
+6.7%
Our people
15,631
+0.1%
Germany
Gross written premiums
€ 14,823 mln
+1.4%
Total operating result
€ 1,046 mln
+11.0%
Our people
9,248
+0.2%
Life market share
8.8%
P&C market share
4.9%
Ranking
3
rd
2
nd
Life and 8
th
P&C
The Group, present in Germany since 1837, is currently in third place with regard to total premium income in the primary insurance
sector, thanks to a market share of 8.8% in the Life segment, where it confirms its position as leader in unit-linked insurance and in
the protection line known as term life insurance, and a 4.9% share in the P&C segment, characterised by an innovative and highly
profitable offer.
In 2023, Generali Deutschland continued to improve its performance thanks to the disciplined implementation of its strategy, aiming
to be the leading insurance company in Germany in terms of profitable growth, return on investments and innovation, fully in line
with the Group’s strategic plan. The platform of innovative products and services, which defines a new industry standard, and the
careful technical and operational regulation have contributed to the excellent results of Generali Deutschland, despite a very difficult
market context, characterised by the impact of the conflict in Ukraine and the Middle East and the related generalised increases in
prices and interest rates.
A fundamental pillar, both for premium income and profitability, is represented by the distribution network of Deutsche
Vermögensberatung (DVAG), of which Generali holds 40%. This network, made up of around 18,000 full-time agents, has an exclusive
agreement with the Generali Group for the sale of insurance solutions, and is able to effectively combine qualified consultancy,
complete understanding of the needs of customers and digital tools to provide highly effective customer interaction.
In line with its strategic objectives, Generali Deutschland continued to strengthen its market position in 2023, not only through its
DVAG network of agents, where it operates under the Generali, Advocard and Deutsche Bausparkasse Badenia brands, but also
with the CosmosDirekt brand, dedicated to the digital channel, where the Generali Group is the market leader in Germany. As a pure
insurance broker, the niche brand Dialog completes the portfolio. This is in line with the Generali Group’s ambitions to transform the
classic concept of insurance into protection, prevention and partnership with the customer.
LIFE SEGMENT
Life premiums
€ 10,693 mln
0.0%
Life OR
€ 556 mln
+1.5%
PVNBP
€ 8,607 mln
-2.4%
NBV
€ 361 mln
-5.9%
Life premiums are stable, despite an unfavourable macroeconomic context and a market that recorded a decrease in total premiums
in 2023. The Country adjusted the offer, recording a positive performance of the protection line consistent with the Group’s strategic
decision to focus on low capital absorption products. There was a decrease, especially in the Digital channel, offset by growth sustained
by the exclusive DVAG network.
New business (expressed in terms of present value of new business premiums - PVNBP) had a slight decline (-2.4%). The significant
reduction of the saving business (-30.1%) following the challenging attractiveness of the product offer (further emphasized by the
Our financial performance
137
closure of a particular type of pension product, the so-called Riester) more than compensated the positive development of the unit-
linked business (+12.7%). Protection line remained quite stable (+1.8%).
The profitability of new business on the PVNBP (NBM) mildly decreased from 4.34% to 4.19%. The positive performance of unit-
linked line, that benefited from a better product mix thanks to the closing of the Riester product, and from the profits emerging
from the internalization of unit-linked funds, was more than compensated by the negative performance of savings and pension
line, impacted by the higher weight of investment contracts, and protection line, on account of the worsened lapse and expense
assumptions.
New business value (NBV) amounted to € 361 million (-5.9%).
P&C SEGMENT
P&C premiums
€ 4,130 mln
+5.2%
P&C OR
€ 511 mln
+17.2%
CoR
91.7%
-3.2 p.p.
P&C premiums grew (+5.2%), driven by the non-motor line (+7.0%), which benefited in particular from the successful sales of retail
multi-risk products and strong tariff increases. The motor line showed a more contained increase (+1.7%), confirming the focus on
profitability. The growth was mainly sustained by the positive performance of the exclusive network.
The improvement in the combined ratio (-3.2 p.p.) is mainly attributable to the improvement in the loss ratio thanks to the positive
contribution from prior years, which offset a greater impact from natural catastrophes events, while the expense ratio remains stable.
Austria
Gross written premiums
€ 2,973 mln
+3.2%
Total operating result
€ 325 mln
-0.2%
Our people
4,548
-1.3%
Life market share
16.1%
P&C market share
14.3%
Ranking
3
rd
3
rd
Life and 3
rd
P&C
Generali, present in Austria since 1832, the year after the company established itself in Trieste, operates in the country through the
insurance companies Generali Versicherung and BAWAG P.S.K. Versicherung. Generali Austria, with € 3 billion in gross direct premiums,
ranks third in the insurance market in terms of premium volumes. The company operates through a multi-channel distribution model
and shows an excellent development of the Life business mix with a focus on new business on low capital absorption products; the
P&C segment also has good diversification in terms of products and business lines, with a strong strategic orientation towards the retail
segment and small and medium-sized enterprises.
Sustainability is a cornerstone of the current Lifetime Partner 24: Driving Growth strategy, which aims to offer customised and innovative
solutions through a single distribution network. Generali Austria is committed to supporting individuals and families throughout their
lives, from generation to generation, making sustainability an intrinsic element of its very nature.
LIFE SEGMENT
Life premiums
€ 1,189 mln
-2.6%
Life OR
€ 81 mln
+17.9%
PVNBP
€ 1,020 mln
+1.1%
NBV
€ 62 mln
-6.6%
The drop in Life premiums is attributable to the slowdown of the unit-linked line (deriving from single premium policies) and the
decrease in the savings and pension line, which was affected by the difficult market context, recording a drop in recurring premiums.
Positive performance on protection line.
Annual Integrated Report and Consolidated Financial Statements 2023
138
Generali Group
New business (expressed in terms of present value of new business premiums - PVNBP) mildly increased (+1.1%). The slight
increase was driven by the positive development of protection line (+8.7%) partially compensated by the slowdown of unit-linked
line (-13.9%).
The profitability of new business on the PVNBP (NBM) decreased by 0.50 pp, from 6.62% in 2022 to 6.12% in 2023 on account
of the higher interest rates that strongly penalized both unit-linked and protection lines, while positively impacted the savings and
pension line.
New business value (NBV) amounted to € 62 million (-6.6%).
P&C SEGMENT
P&C premiums
€ 1,785 mln
+7.5%
P&C OR
€ 249 mln
-5.1%
CoR
91.4%
+0.9 p.p.
P&C premiums grew, driven by the positive performance of the main businesses, supported by the indexation of tariffs. The motor
line recorded an increase, confirming the focus on profitability. The non-motor lines grew thanks to solid new business production
combined with tariff adjustments.
The deterioration of the combined ratio (+0.9 p.p.) is entirely attributable to the lower contribution of prior years. The contribution of
the current year was stable due to the increase in the loss ratio (negatively impacted by an increase in natural catastrophes claims),
fully offset by a decrease in the expense ratio. There was a positive contribution from the discounting that benefited from the trend
in interest rates.
Switzerland
Gross written premiums
€ 1,824 mln
-3.2%
Total operating result
€ 129 mln
-2.9%
Our people
1,835
+2.7%
Life market share
4.5%
P&C market share
3.7%
Ranking
8
th
7
th
Life and 8
th
P&C
The Generali Group has been operating in Switzerland since 1987, where it has been able to consolidate its position through the
acquisition and merger of several insurance companies. In line with the strategy defined by the Group, Generali focuses on the
retail business and provides high quality and innovative services through various distribution channels: agents, brokers, financial
promoters and direct channels.
Generali ranked as the market leader in terms of premium income in the Life segment, considering exclusively the individual unit-
linked products, with a 27% market share, and was eighth in the P&C segment with a 3.7% market share. Generali does not operate
in the Collective Life policies segment.
Generali continued with the process, which began in 2020, to speed up the establishment of reserves linked to guaranteed products
in the Life segment, reflecting more conservative long-term financial assumptions.
LIFE SEGMENT
Life premiums
€ 1,084 mln
-2.3%
Life OR
€ 95 mln
-1.0%
PVNBP
€ 489 mln
-13.8%
NBV
€ 39 mln
-15.4%
Our financial performance
139
Life premiums decreased by 2.3% as a result of the slowdown in the premiums of unit-linked products combined with the increase
in the maturities of the contracts relating to portfolios in run-off. There was also a reduction in the savings and pension line, which
was not very profitable.
New business (expressed in terms of present value of new business premiums - PVNBP) decreased by 13.8%, reflecting the
contraction of unit-linked (-15.0%), which represented the main part of the new production with a weight of 84.5%, and protection
line (-13.7%).
The profitability of new business on the PVNBP (NBV) slightly decreased from 8.08% in 2022 to 7.98% in 2023, mainly on account
of an unfavorable product mix in the unit-linked line.
New business value (NBV) amounted to € 39 million (-15.4% compared to 2022).
P&C SEGMENT
P&C premiums
€ 740 mln
-4.6%
P&C OR
€ 44 mln
-7.0%
CoR
96.4%
-0.5 p.p.
P&C premiums fell by 4.6%, a trend largely attributable to the strategic decision to abandon unprofitable products in the accident &
health and fleet lines, and to simplify the range of products.
The combined ratio stood at 96.4% (-0.5 p.p.), mainly due to lower claims in the non-motor line and the positive contribution
from prior years in the motor line, which offset a greater impact from natural catastrophes claims. The contribution deriving from
discounting was positive, benefiting from the trend in interest rates.
International: CEE, Mediterranean & Latin America area and Asia
Gross written premiums
€ 16,058 mln
+18.6%
Total operating result
€ 1,499 mln
+26.5%
Our people
30,007
-0.7%
CEE
Gross written premiums
€ 4,827 mln
+7.0%
Total operating result
€ 658 mln
+35.7%
Our people
11,952
+0.2%
The Generali Group operates in Central-Eastern Europe through Generali CEE Holding, a company that heads up ten geographic
areas (Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, Poland, Romania, Serbia, Slovakia and Slovenia) with a total of
11,952 employees. In terms of gross written premiums, the Group is the third largest insurer in the region, with a market share of
11.4%.
The Group boasts a presence in the central-eastern European area for nearly 200 years and after the re-opening of the markets in
1989, it has strengthened its position over the years, becoming one of the largest insurance companies in the area:
• 2008: a joint venture collaboration with PPF Holding started, which then ended in 2015, the year in which the Generali Group
acquired full control and powers over Generali CEE Holding;
• 2018: entry of Austria into the region, where Generali has operated since 1832, and of Russia. In addition, Generali has strengthened
its presence in the CEE area through two important acquisitions, Adriatic Slovenica in Slovenia and Concordia in Poland, enabling
portfolios, sales channels and its operations in the area to be balanced and diversified. Lastly, it signed a collaboration agreement
with Unicredit for the distribution of insurance solutions mainly concerning Credit Protection Insurance (CPI) in the entire region;
Annual Integrated Report and Consolidated Financial Statements 2023
140
Generali Group
• 2019: in line with the Group’s strategy, the acquisition in Poland of Union Investment TFI S.A from the German group Union Asset
Management Holding AG was completed and the agreement to acquire all Life, P&C and Mixed portfolios of three companies of
ERGO International AG in Hungary and Slovakia was concluded;
• 2020: the Group completed the acquisition of the Izvor osiguranje portfolio in Croatia;
• 2021: Generali Ceska Pojistovna acquires the insurance business of Generali Poistovna in Slovakia;
• 2022: the Generali Group completed the geographical reorganisation by including CEE in the International perimeter and inserting
Austria in the new DACH perimeter (Germany, Austria and Switzerland);
• 2023: Generali CEE Holding finalised the agreement for the purchase of 100% of 4LifeDirect, a company selling life insurance
policies in Poland. Again in 2023, an agreement was signed to further support the automation of Generali’s Business Health
ecosystem in the CEE region via the AdvanceCare platform.
LIFE SEGMENT
Life premiums
€ 1,171 mln
-0.7%
Life OR
€ 284 mln
+42.9%
PVNBP
€ 965 mln
-2.7%
NBV
€ 93 mln
+2.2%
The drop in Life premiums mainly derived from the savings and pension (-10.4%) and unit-linked lines (-0.4%), offset in part by the
positive performance deriving from the protection line (+2.5%, mostly recurring premium policies).
The decrease in volumes was mostly recorded in Croatia (-40.8% linked to the temporary suspension of the distribution agreement
with Unicredit) and Poland (-3.3% attributable to the reduction of the unit-linked line). Volumes increased mainly in Hungary (+8.4%
thanks to greater unit-linked and protection insurance coverage), Slovenia (+6.4% thanks to the increase in the unit-linked line) and
Romania (+19.3% attributable to the increase in protection products).
New business (expressed in terms of present value of new business premiums - PVNBP) decreased by 2.7%. The contraction was
mainly related to Poland (-46.1%), partially offset by a good performance of unit-linked lines in Hungary and protection line in Czech
Republic.
The profitability of new business on the PVNBP (NBM) slightly increased from 9.27% to 9.68%, especially thanks to the improvements
registered in Czech Republic and in Poland where a higher share of individual protection products with high profitability was sold.
New business value (NBV) amounted to € 93 million (+2.2%).
P&C SEGMENT
P&C premiums
€ 3,656 mln
+9.7%
P&C OR
€ 385 mln
+30.1%
CoR
91,8%
-2.0 p.p.
P&C premiums grew by 9.7%, driven by the positive overall performance of the main businesses and are attributable to the increase
in tariffs in the main areas. The motor line recorded an increase of 11.9% thanks to the development of the volumes of the TPL
lines (+14.2%) and the greater volumes of the Casco (comprehensive insurance) lines (+9.6%). This performance is supported by all
the areas of the region with the exception of Poland (-7.9%, negatively affected by the market cycle). The main contributions were
recorded in Romania (+85.8%, also linked to the default of a local competitor), in the Czech Republic including Slovakia (+5.3%) and
in Hungary (+14.8%).
The non-motor lines grew by 7.6% thanks to the increase in premiums recorded in all the countries of the region, with the exception
of Poland (-4.0%, due to the agro business), mostly in the Czech Republic including Slovakia (+7.3%), Hungary (+13.9%), Serbia
(+27.9%) and Slovenia (+7.1%).
The improvement in the combined ratio (-2.0 p.p.) is mainly due to the greater contribution of prior years, impacted by the trend in
inflation last year, followed by the increase in the current year loss ratio, also due to the impact of higher natural catastrophes claims
for +1.8 p.p., especially in Slovenia. The expense ratio was essentially stable.
Our financial performance
141
Mediterranean & Latin America area
Gross written premiums
€ 5,231 mln
+33.3%
Total operating result
€ 515 mln
+25.1%
Our people
6,485
-1.0%
The Mediterranean & Latin America area is the new region created within the International perimeter, officially established from 1
September 2022, which includes Argentina, Brazil, Chile, Ecuador, Greece, Portugal, Spain and Turkey.
Argentina, where Generali represents the third largest player in terms of premiums, is the main South American market for the Group
and is characterised by a historically elevated rate of inflation and by high volatility.
In this context, the Group implemented some best practices, investing in digital transformation projects based on business needs,
which enabled the Argentinian company to stand out in terms of service quality and innovation.
Generali also operates in Brazil, where, after several years of loss related to the motor portfolio and related restructuring, Generali
recorded satisfactory recovery. The successful implementation of a recovery plan allowed the company to return to being profitable
as early as 2022, a trend then confirmed in 2023. Focused on Life business, and in particular on the protection line, the company
benefited from a significant increase in revenues, a stable loss ratio and a strong investment result.
In Chile, Generali operates through AFP PlanVital, a company active in the management of pension and savings funds. PlanVital
has 1.8 million active customers and total assets under management of around € 9.3 billion. In addition to managing mandatory
pension contributions, PlanVital sells voluntary savings and pension products (mainly through direct channels), providing financial
advice for savings and pension purposes.
In Greece, the AXA Insurance integration plan, acquired in 2021, was concluded in 2023, and at the same time maintaining strategic
growth as its main objective, it presented a 7% increase in GWP at YE23, exceeding for the first time € 500 million in premiums.
Generali has been present in Spain since 1834 and operates in the country through Generali España, and two bancassurance
joint ventures with Cajamar (Life and P&C), which guarantee the Group exposure to the main Life distribution channel, as well as
continuous expansion in P&C.
The original agreements with Cajamar were renewed in 2022 and extended until 2035, strengthening the partnership in all lines of
business.
Generali is one of the main insurance groups in Spain, with a market share of 2.9% in the Life segment and 4.3% in the P&C
segment. The Generali España group offers a wide range of Life and P&C policies dedicated to private individuals and companies,
using a multi-channel distribution strategy including not only bank offices, but also a network of agents and brokers which is among
the most extensive in Spain.
The Generali Group has been present in Portugal since 1942, where it operates in the P&C and Life segments. In January 2020, the
Generali Group acquired 100% of Seguradoras Unidas and AdvanceCare. The merger of the three Generali insurance companies
operating in Portugal led to the creation of Generali Seguros, S.A. and permitted Generali to rapidly proceed with the integration
and the development of growth plans in the country.
Generali Seguros, S.A. is the second largest operator in the P&C market in Portugal, with a share of 18.5% in the P&C segment
and 1.3% in the Life segment, offering a wide range of policies addressing private individuals and businesses, sold mainly under
the brand name Tranquilidade (an established local brand since 1871), and adopting a multi-channel distribution strategy, which
can count on a solid network of agents (around 70% of total premiums issued), brokers and a direct channel, via the Logo brand.
In June 2023, Generali announced the acquisition of Liberty Seguros, Compañia de Seguros y Reaseguros, S.A. from Liberty Mutual
Generali, a Spanish insurance company operating in Spain, Portugal, the Republic of Ireland and Northern Ireland. The transaction
was finalised on 31 January 2024. The transaction is fully aligned with the Generali Lifetime Partner 24: Driving Growth strategy and
aims to improve the Group’s income profile, strengthen the P&C business and enhance its leadership position in Europe.
Annual Integrated Report and Consolidated Financial Statements 2023
142
Generali Group
LIFE SEGMENT
Life premiums
€ 1,359 mln
+16.8%
Life OR
€ 257 mln
+11.4%
PVNBP
€ 1,236 mln
+10.2%
NBV
€ 115 mln
-7.8%
Life premiums grew by 16.8% thanks to the positive performance recorded in Argentina (linked to hyperinflation), Spain (+5.0%,
mainly driven by the unit-linked line), Portugal (+43.9%, also in this case thanks to the contribution of the unit-linked line) and Greece
(+10.7%).
New business (expressed in terms of present value of new business premiums - PVNBP) increased by 10.2%. All main countries of
the area had a good development. Portugal showed the most significant growth, with an increase of 40.0%. Unit-linked and saving
business increased by 42.5% and 14.4% respectively, while protection line remained stable (-0.1%).
The profitability of new business on the PVNBP (NBM) decreased by 1.87 pp, from 10.90% in 2022 to 9.32% in 2023 on account
of the higher interest rates that strongly penalized both unit-linked and protection lines, while positively impacted the savings and
pension line.
New business value (NBV) amounted to € 115 million (-7.8%).
P&C SEGMENT
P&C premiums
€ 3,873 mln
+39.0%
P&C OR
€ 194 mln
+43.7%
CoR
99.4%
-2.1 p.p.
In the P&C segment, premiums increased by + 39.0%, mainly due to the motor business in Argentina (linked to hyperinflation) and
the positive performance of Portugal (+11.0%) and Spain (+6.3%) in both lines of business.
The combined ratio of the region recorded an improvement (99.4%, -2.1 p.p.) compared to last year, mainly thanks to the contribution
of Portugal and Spain, which offset the negative performance of Greece, impacted by natural catastrophes claims.
Asia
Gross written premiums
€ 6,000 mln
+13.8%
Total operating result
€ 344 mln
+13.9%
Our people
11,570
-1.4%
Generali is one of the key European insurers in the Asian market, and currently operates in eight territories. In particular, the Group is
present both as Life and P&C insurer in China, Hong Kong (where it also coordinates the activities of the entire region and has been
operating since 1980), India, Malaysia and Thailand. It is also present as a Life insurer in Indonesia, Vietnam and the Philippines.
The predominant segment is Life, with premium income mostly concentrated in the protection line and savings and pension line.
Generali offers its products in the entire region adopting a distribution strategy that includes agents, brokers, digital channels and
agreements with banking groups.
Generali operates in China with Generali China Life, in partnership with China National Petroleum Corporation (CNPC), which is
one of the largest Chinese state-owned companies as well as one of the major energy groups in the world. Owing to its prominent
presence in the Chinese market, Generali China Life is the leading contributor to the turnover and operating result of the entire region.
Generali has a joint venture agreement with CNPC for the P&C products range as well with Generali China Insurance Company
Our financial performance
143
Limited (GCI). In January 2024, Generali signed an agreement with CNPC to become a 100% shareholder in GCI, from the current
49% stake. This transaction, subject to the approval of the local authorities, will strengthen Generali’s strategic position in China,
creating the basis for future growth in the P&C segment.
The 2023 consolidated financial statements include for the first time the full annual contribution of the Indian consolidated entities,
following the step up in 2022 to acquire majority control of Future Generali P&C and Life insurance companies.
Generali is the first operator among international insurers to achieve a majority stake in the Indian Life and P&C companies under
Joint Venture since the new foreign ownership limit came into force.
In 2022, Generali completed the acquisition of the majority shares of the AXA-Affin joint ventures and also increased its stake in MPI
Generali Insurans Berhad to 100%. On 1 April 2023, the two units were merged as a single Generali Malaysia brand, positioning itself
as one of the largest insurance companies in the Malaysian market.
LIFE SEGMENT
Life premiums
€ 4,646 mln
+15.8%
Life OR
€ 297 mln
+6.0%
PVNBP
€ 3,027 mln
+20.2%
NBV
€ 126 mln
+17.9%
Life premiums grew by 15.8%, in particular thanks to the contribution of China, especially in the savings and pension line.
New business (expressed in terms of present value of new business premiums - PVNBP) registered a good progression (+20.2%)
mostly thanks to the high savings and pension line collection in China, while unit-linked line reported a marked contraction (-55.8%).
Protection line had a slight improvement (+5.0%).
The profitability of new business on the PVNBP (NBM) decreased by 0.08 pp at 4.15% mainly driven by the higher weight of less
profitable savings and pension line.
New business value (NBV) amounted to € 126 million (+17.9%).
P&C SEGMENT
P&C premiums
€ 1,354 mln
+4.4%
P&C OR
€ 87 mln
+37.6%
CoR
97.9%
-0.2 p.p.
In the P&C segment, premiums recorded an increase of 4.4%, thanks to the contribution of India. It should also be noted that 2023
recorded a strong increase in volumes, on a historical basis, as it was the first year with the consolidation of India and Malaysia for
the entire year.
The combined ratio is in line with last year and in profitable territory at 97.9% (-0.2 p.p.)
Annual Integrated Report and Consolidated Financial Statements 2023
144
Generali Group
Asset & Wealth Management
Total operating result
€ 964 mln
+4.8%
Cost/Income ratio
49%
Calculated as the incidence of operating costs on
operating revenues of the Asset Management segment
Our people
2,796
+4.3%
In continuity with the Group strategy in recent years and following the reorganisation announced at the beginning of 2021, the Asset
& Wealth Management business unit is the Group’s main managerial entity operating in the area of asset management and financial
planning. In a continuously evolving market in which specialisation, efficiency and innovation are key elements in order to compete,
Generali intends to become a benchmark in the asset management market not only for the insurance companies of the Generali Group,
but also for external customers. The pursuit of this objective was mainly achieved through the following courses of action:
• cross-selling opportunities, promoting the growth of a capital-light business, such as the services of LDI (Liability Driven Investments),
which offer institutional customers the expertise developed in insurance investment management;
• the expansion of the multi-boutique platform in order to diversify the range of products and services to all customers. Multi-
boutiques are companies acquired on the market or created in partnership with operators with acknowledged investment skills in
highly specialised asset classes, both in traditional asset classes and alternative ones.
The boutiques operating in the Asset & Wealth Management business unit are:
• Infranity, a partnership created with the aim of investing in infrastructure debt with a diversified portfolio, both in terms of geography
and sector;
• Aperture Investors, an innovative asset management company based on a revenue model that is different from that present on
the market;
• Lumyna, a leading company in developing alternative UCITS (Undertakings for the Collective Investment of Transferable Securities)
strategies, with an important international clientele that positively contributes to Generali’s offer and distribution;
• Sycomore Factory SAS, a benchmark in ESG/SRI investment solutions in France;
• Sosteneo, a boutique specialising in investments in greenfield infrastructure related to energy transition, with a focus on projects
that produce clean energy;
• Plenisfer Investments SGR, which offers an innovative and integrated approach for a wide range of asset classes.
The business unit operates in the two areas indicated by the name:
• Asset Management, for both Group insurance companies and external customers.
• Wealth Management, which seeks to protect the entire family wealth of the Private and Affluent customer segments through the
network of Banca Generali advisors.
The operating result of the Asset & Wealth Management business unit was € 964 million, up by 4.8%.
This positive change was driven by Banca Generali’s Wealth Management, which increased its operating result by 39.6%, from € 316
million in 2022 to € 441 million in 2023. The operating result of the Asset Management segment decreased by 12.3%, from € 638 million
in 2022 to € 559 million in 2023.
Our financial performance
145
Group holdings and other companies
The Group holdings and other companies includes the Parent Company’s management and coordination activities, including Group
reinsurance, Europ Assistance, Generali Employee Benefits, Global Corporate & Commercial, other financial holding companies and
international service providers not included in the previous geographic areas.
Europ Assistance (EA)
Established in 1963, Europ Assistance, which falls within the scope of responsibility of the Country Manager France, is one of the
leading global brands in the field of private assistance, with a presence in over 200 countries thanks to its assistance centres and its
network of partner suppliers. EA offers insurance coverage and assistance in the travel sector, the automotive area with road-side
assistance, personalised coverage for assisting the elderly, cyber-security, and medical and concierge services.
In 2023, the turnover of the EA group amounted to € 3.4 billion, recording an increase of 21% compared to the previous year, spread
across all channels and areas of operation. After the recovery recorded at the end of Covid-19, the travel insurance segment is still
one of the main drivers of EA’s growth in recent years thanks to new important commercial partnerships with international customers
(Crédit Agricole, Expedia, Airbnb).
In a difficult international context, characterised by persistently high inflation and an increasingly uncertain geopolitical scenario, in
2023 EA recorded the best performance on record in terms of turnover and results, thanks to a constant focus on cost containment
and benefiting from its diversification both in terms of business and geography. Europ Assistance continues to pursue a growth
strategy focused on strengthening its leadership position in the travel sector, consolidated thanks to the recent commercial
agreements in the United States, at the same time expanding and diversifying its range of motor and personal assistance products.
In addition to systemic growth, the Europ Assistance group has completed a series of acquisitions in recent years, further extending
its geographical coverage in strategic countries. In 2023, EA acquired new insurance companies in Southeast Asia, Hong Kong and
Japan.
Generali Employee Benefits (GEB) Network
An integrated network based on a global platform of services that protect and improve the well-being of employees throughout the
world. It represents the Generali Group’s line of business, a leading provider of global employee benefit solutions and re-insurance
services, designed for local and seconded employees of multinational companies and made up of life protection (health, accident
and invalidity), emotional support (e.g. prevention of mental health problems) and financial protection (life and pension). The network
supports customers in the implementation of financial solutions better known as captive, pooling and reinsurance only and offers
them guidance to meet the needs of a world in continuous evolution. Guided by innovation, by people and by knowledge, GEB is
based on an ecosystem of partnerships to provide customers with support on their ESG path. Its global presence in 121 countries,
with the support of 136 local network partners, permits it to provide skills and support to 54 captive clients and to 347 coordinated
multinational programmes, with a volume of premiums totalling € 1.7 billion.
The GEB network is an entity of partnerships based on reinsurance, which operates through its regional offices worldwide, that cover
the APAC, EMEA and Americas regions, coordinated centrally by its head office in Luxembourg.
Global Corporate and Commercial (GC&C)
Generali GC&C provides insurance solutions and P&C services to medium-large companies and intermediaries in over 180 countries
worldwide. Backed by its solid global experience and knowledge of the local markets and of the corporate sector, integrated solutions
that can be personalised in property, casualty, engineering, marine, aviation, cyber and speciality risks are provided. Furthermore,
GC&C guarantees companies the same level of assistance and protects everywhere in the world through its Multinational Programs,
Claims and Loss Prevention experts. GC&C’s total earned premiums were € 3.1 billion in 2023.
2023 was characterised by a growth in earned premiums in a favourable market context and an increase in operating result despite
the significant impact of natural catastrophes claims. From a technical perspective, in 2023 GC&C continued to pursue a policy
to develop through Multinational Programs, Parametric Solutions and Cyber risk, focusing on and balancing the portfolio in the
medium-large companies segment at global level.
Annual Integrated Report and Consolidated Financial Statements 2023
146
Generali Group
SHARE PERFORMANCE
KPI per share
31/12/2023 31/12/2022
Earnings per share (EPS) 2.43 1.42
Adjusted EPS (*) 2.32 2.00
Dividend per share (DPS) (**) 1.28 1.16
Total dividend (in € million) (**) 1,987 1,790
Adjusted payout ratio (***) 55.6% 57.1%
Share price 19.11 16.62
Minimum share price 16.78 13.75
Maximum share price 20.00 21.11
Average share price 18.62 16.67
Weighted average number of ordinary shares outstanding 1,541,766,041 1,570,223,226
Market capitalization (in € million) 29,790 26,365
Average daily number of traded shares 3,253,086 4,942,689
Total shareholders’ return (TSR) (****) 22.4% -5.3%
(*) Refer to the Methodological notes on alternative performance measures for the definition of adjusted net result also used as numerator of adjusted EPS calculation.
(**) The proposed total dividend takes into account all the transactions resolved by the Board of Directors up to 11 March 2024 or carried out on the share capital up to the same date, and excludes the own
shares held by the Company.
(***) The adjusted payout ratio is calculated as the ratio of the total dividend to the adjusted net result. Also the 31 December 2022 figures were presented in accordance to the new IFRS 17 and IFRS 9
accounting standards.
(****) The total shareholders’ return (TSR) is the measure of performance which combines share price variation and dividends paid to show the total return to the shareholder expressed as an annualized
percentage.
€ 1.25
€ 1.00
€ 0.75
€ 0.50
€ 0.25
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
90%
80%
70%
60%
50%
40%
30%
20%
Dividend per share Payout ratio
2023 total shareholders’ return performance
FTSE MIB
ASSICURAZIONI GENERALI Stoxx Europe 600 Ins
40%
35%
30%
25%
20%
15%
10%
5%
0%
-5%
-10%
31/12/22 31/01/23 28/02/23 31/03/23 30/04/23 31/05/23 30/06/23 31/07/23 31/08/23 30/09/22 31/10/23 30/11/23 31/12/23
Our financial performance
147
AGENCY 31/12/2023 31/12/2022
Moody’s
Rating A3 A3
Outlook Stable Stable
Fitch
Rating A+ A
Outlook Stable Positive
AM Best
Rating A A
Outlook Stable Stable
AGENCY 31/12/2023 31/12/2022
Moody’s
Senior Baa1 Baa1
Subordinated Baa2 Baa2
Hybrid Baa3 Baa3
Outlook Stable Stable
Fitch
Senior A A-
Subordinated A- BBB
Hybrid BBB+ BBB
Outlook Stable Positive
AM Best
Senior a a
Subordinated a- a-
Hybrid bbb+ bbb+
Outlook Stable Stable
Financial ratings
Ratings refer to a judgement of the credit rating and probability of default of an entity or the security to which the rating has been
assigned. Every rating agency uses a different method to compile its ratings.
Sustainability indices
Over the years, the commitments and the results achieved by the Generali Group have improved the ratings assigned by the main
agencies in the ESG (environmental, social and governance) performances and have led to the inclusion of the Group in important
international sustainability indices.
In November 2023, MSCI ESG Ratings confirmed Generali’s highest ESG rating of AAA, and the Group continues to be included in
the MSCI ESG Leaders indices; furthermore, as of the end of 2023, Generali ranked in the 98th percentile in the Insurance sector
in the Standard & Poor’s Global Corporate Sustainability Assessment (S&P CSA), confirming its sixth consecutive year in the Dow
Jones Sustainability World Index (DJSI World) and fifth year in the Dow Jones Sustainability Europe Index (DJSI Europe).
www.generali.com/investors/debt-ratings/ratings
www.generali.com/sustainability/responsible-business/sustainability-indices-and-ratings
RISK REPORT
Annual Integrated Report and Consolidated Financial Statements 2023
150
Generali Group
A. EXECUTIVE SUMMARY
The purpose of this section is to provide an overview of the Group’s solvency position and risk profile, as well as its risk management
framework. To this end a brief introduction on economic and regulatory environment is hereby provided.
External context
In line with the whole insurance sector, the Group is mainly exposed to vulnerabilities arising from the financial markets and the
macroeconomic landscape, the latter, in turn, has been deeply impacted by the most recent geopolitical developments.
Notwithstanding the context, the Group proved to be particularly resilient, and the solvency position remained above the tolerances
set out in the Group Risk Appetite Framework (Group RAF).
The markets’ instability and volatility, in addition to the geopolitical international tensions, represent the main challenges for the
insurance and financial sector, as well as for Generali Group.
In particular, financial markets were characterized by persistent high level of inflation and rising interest rates until the third quarter of
2023, with a gradual reduction in the last quarter of the year, and a volatility lower than the maximum levels observed in 2022. The
high market yields, observed in 2023, that significantly surpassed the levels witnessed in the last decade, rendered fixed income
securities more attractive compared to less liquid asset classes and the real estate market. On the other hand, the stock market
experienced positive returns and low volatility. The financial markets volatility, and in particular the performance of certain sectors,
was also impacted by the escalation of geopolitical tensions, induced by the prosecution of the war in Ukraine and by the extension
of the conflict in the Middle East with consequences on the commercial routes of the Red Sea. Albeit the geopolitical context, the
credit markets demonstrated stability, showing low volatility in 2023. Finally, geopolitical balances may be reshaped as a result of the
numerous elections scheduled throughout 2024, with over half of the world’s population called to vote in more than 70 countries,
for national, community, and local elections. It is worth mentioning the European elections and those in the United States, as well as
the vote in India, Russia, and South Africa, which have the potential to significantly reshuffle global balances, including international
trade and the volume of international financial flows.
The current context, characterized by ongoing market instability and geopolitical tensions, has thus led, on one hand, to an increase
in the level of perceived uncertainty by policyholders, and, on the other hand, to a greater awareness of vulnerabilities arising from
global challenges, which require greater attention to sustainable growth, including climate change, demographic and social issues,
and the risks related to digitization. In 2023, a series of weather events occurred, including hailstorms, storms, and floods which
affected several countries where the Group operates, from Italy to central and eastern-central Europe, as well as other continents
where the Group’s exposure is lower. The relevance of sustainability risks, and specifically of climate change, prompted the Group
to further strengthen controls on future risks and sustainability risks, characterized by a greater number of interconnections and
longer time span, in addition to the controls for those risks treated within the Solvency II prudential system, such as financial, credit,
insurance, and operational risks, as well as liquidity risks.
The risk management system of the insurance market, based on the Solvency II framework, focuses on financial, underwriting,
operational risks (including IT and cyber-attacks risks) and other risks, such as strategic and liquidity risks. At the same time, there
are emerging and future risks that present new vulnerabilities, such as climate change, digitalisation, geopolitical instability and
demographic changes. These risks should therefore be analysed, as well as increasingly focusing on sustainability ones. In particular,
among the latter, climate change is considered of primary importance for the financial sector and specifically for insurance, since it
has also implications for the insurance business, in addition to those on investment portfolio.
Moreover, the Group operates through the Asset & Wealth Management Business Unit in the asset management and banking
sectors. Risk management in these sectors is primarily focused on wealth management activities, and where applicable, is managed
by specific regulatory frameworks.
Management Report, Challenges and opportunities of the market context, p. 20, for further
details on financial markets’ developments, climate change, demographics and digitalization
Regulatory context
The constant regulatory monitoring of both national and supranational legislation led to the identification, in 2023, of the continuous
issuance of customer protection rules, with particular reference to: the proper definition and monitoring of the insurance product
value for customer (value for money), the publication of the proposals relating to the so-called Retail Investment Strategy, the wide
review proposal of Solvency II regulation, the proposal of Directive on Corporate Sustainability Due Diligence, and the increasing
requirements on IT security and Information and Communications Technology governance
1
. Finally, it is also worth noting the proposal
of European regulation on artificial intelligence and the ongoing definition of the ESG requirements applicable to financial operators’
corporate processes.
1. In particular, in consideration of the introduction of EU Regulation 2022/2554 (Digital Operational Resilience Act).
Risk Report
151
In this respect, the Group has established and monitored the process of implementing the European legislative provisions, in particular
those introduced by the EU Directive 2022/2464 relating to the corporate sustainability reporting, the EU Regulation 2019/2088 on
sustainability-related disclosures in the financial services sector (known as Disclosure Regulation), the EU Regulation 2020/852
on the establishment of a framework to facilitate sustainable investment (known as EU Taxonomy Regulation), the integration into
Solvency II of the sustainability risks and the integration into the Insurance Distribution Directive (IDD) of the sustainability factors,
risks, and preferences.
With respect to the risk related to financial crimes, a growing attention of the International Supervisory Authorities on the compliance
with the regulatory requirements on anti-money laundering, counter-terrorism financing (AML/CTF)
2
, anti-corruption and international
sanctions is observed. In 2022, the European Banking Authority (EBA) released the guidelines on the roles and responsibilities of
AML/CTF Compliance Officer, imposing greater involvement of the governing bodies of the regulated entities on the management
and prevention of the AML/CTF risks and increased supervisory obligations for the Groups. The Italian Authority IVASS will publish
a revised Regulation aligned with the EBA requirements in 2024. The entry into force of the EU AML/CTF Regulation and the
establishment of the International Supervisory Authority will determine a standardisation across Europe of the risk prevention models
associated to financial crimes with the subsequent need of adoption of stricter procedures and controls.
Solvency position and risk profile
In terms of solvency position, the Group and all its European insurance subsidiaries comply with Solvency II regulation, which
requires capital to be held for all quantifiable risks.
For this purpose, the Group uses its Partial Internal Model (PIM), which has been approved by the Supervisory Authority, to calculate
capital requirements to better reflect its risk profile. The Group Solvency Capital Requirement (SCR) is calculated with the Internal
Model (IM) for the legal entities which received the authorization, namely all the major Business Units in Italy, Germany, France,
Austria, Switzerland, Czech Republic and Spain. Other insurance and reinsurance entities adopt the Standard Formula. Other
financial regulated entities (mostly banks, pension funds, and asset managers) contribute to the SCR based on local sectoral
regulatory requirements such as the Basel one.
The Group confirmed the solid solvency position
3
(220%), thanks to the excellent contribution from the normalized capital generation,
offsetting the impacts from the variances
4
, above the tolerances and within the operating target range, both defined in the Group
RAF.
Also in 2023, given the current geopolitical context, a monthly monitoring process of the Group and local solvency position was
maintained, it was thus possible to provide timely and constant information on the solvency position with respect to the evolution of
the financial markets.
For risks not included in SCR calculation, additional assessment techniques are used. In particular, for liquidity risk, the Group has in
place methodologies and models to grant a sound risk management in line with the Group risk strategy, defined in the Group RAF.
Generali Group risk management system is based on a system of governance and structured risk management processes, defined
within a set of risk policies in the broader Generali Internal Regulation System (GIRS).
Together with the Group RAF which outlines the Group’s risk strategy, the Own Risk and Solvency Assessment (ORSA) process
represents a fundamental risk management tool, with the twofold purpose to provide a comprehensive risk reporting and supporting
the Group risk strategy update.
In addition to the ORSA process, the Group also relies on a set of tools, such as the Recovery Plan, the Liquidity Risk Management
Plan and the Systemic Risk Management Plan defined following the Financial Stability Board (FSB) and the International Association
of Insurance Supervisors (IAIS) standards
5
.
The Risk Report structure is the following:
• section B providing a brief oversight of the risk management system;
• section C providing the Group solvency position and the key elements of the capital management process, as well as the sensitivity
analysis to main risks;
• section D providing a highlight on the Group risk profile.
More details on the solvency position and risk profile are then provided in the Solvency and Financial Condition Report (SFCR),
available on Generali Group website.
Finally, Group rating assessment by external rating agencies is provided on the Group website in the section www.generali.com/
investors/debt-ratings/ratings.
2. Anti-Money Laundering and Counter Terrorism Financing.
3. The solvency position (SCR and Own Funds) and the Minimum Solvency Ratio (Own Funds and related MCR), disclosed within this Report, are based on the last available information. Differences
may arise in comparison to the official values, which will be included in the 2023 Solvency and Financial Condition Report (SFCR) and Quantitative Reporting Templates (QRT).
4. More details on solvency position are provided in the paragraph “Solvency Capital Requirement Coverage”.
5. Generali Group is not included in the list of Global Systemically Important Insurers (GSIIs) issued by FSB.
4. Regolamento Delegato UE 2021/1256.
5. Regolamento Delegato UE 2021/1257.
6. Anti-Money Laundering and Counter-Terrorism Financing.
Annual Integrated Report and Consolidated Financial Statements 2023
152
Generali Group
B. GROUP RISK MANAGEMENT SYSTEM
Risk Governance
Risk governance is a part of the broader Group system of governance.
The Group system of governance, which includes the internal control and risk management system, consists of the roles and
responsibilities of the Administrative, Management or Supervisory Body (AMSB), of the Senior Management and of the Key Functions.
Furthermore, it consists of policies, administrative and accounting procedures and organizational structures aimed at identifying,
evaluating, measuring, managing, and monitoring the main risks.
To ensure a consistent framework through the Group, the Parent Company sets Group Directives on the System of Governance,
complemented by Group internal control and risk management policies.
The Group system of governance is founded on the establishment of an AMSB and of three lines of defence:
• the operating functions (risk owners), which represent the first line of defence and have ultimate responsibility for risks relating to
their area of responsibility;
• Risk Management, Compliance, Actuarial and Anti Financial Crime Functions (where applicable), which represent the second line
of defence;
• Internal Audit Function, which represents the third line of defence.
Internal Audit Function together with Risk Management, Compliance and Actuarial Functions represent the Key Functions; the Anti
Financial Crime Function is considered equivalent to the Key Functions.
Key roles within the internal control and risk management system are outlined below:
• the AMSB is the ultimate responsible for the system of governance and ensure that the system of governance and internal
control and risk management system are consistent with all the applicable regulations, the Group Directives on the System of
Governance and Group policies on internal control and risk management system. To this end, the AMSB, supported by the Key
Functions, reassesses the adequacy of the system of governance periodically, at least once a year. The AMSB approves the
organizational set-up, establishes the Key Functions defining their mandate and reporting lines as well as, where appropriate, any
support committee, adopts Group internal control and risk management policies, performs the duties related to the ORSA, risk
concentration and intragroup transactions, approves the ORSA results and, based on them, defines the risk appetite;
• the Senior Management is responsible for the implementation, maintenance and monitoring of the internal control and risk
management system, including risks arising from non-compliance with regulations, in accordance with the directives of the AMSB;
• Key Functions are established at Group level and within the Group legal entities:
- the Risk Management Function supports the AMSB and Senior Management in ensuring the effectiveness of the risk management
system and provides advice and support to the main business decision-making processes;
- the Compliance Function grants that the organizational and the internal procedures are adequate to manage the risk to incur
in administrative or judiciary fines, economic losses or reputational damages as a consequence of non-compliance with laws,
regulations, provisions issued by the Supervisory Authorities or with the internal regulations, as well as the risk deriving from
unfavourable changes in the law or judicial orientation (compliance risk);
- the Actuarial Function coordinates the technical provisions calculation and grants the adequacy of underlying methodologies,
models and assumptions, verifies the quality of the related data and provides an opinion on the underwriting policy and on the
adequacy of reinsurance arrangements;
- the Internal Audit Function verifies business processes and the adequacy and effectiveness of controls in place also providing
support and advice.
• the Anti Financial Crime Function supports the Board of Directors and the Senior Management in defining the Group requirements
with the aim of preventing and counteracting the risks of money laundering, terrorist financing, bribery and corruption and
international sanctions, as well as of confirming the adherence to FATCA (Foreign Account Tax Compliance Act) requirements
6
.
Heads of Key Functions and of Anti Financial Crime Function report to the AMSB.
Group Key Functions, including the Anti Financial Crime Function, collaborate according to a pre-defined coordination model, in
order to share information and create synergies. A strong Parent Company coordination and direction for Key Functions are granted
by the so-called solid reporting lines model established between the Head of the Group Key Function and Heads of the respective
functions within the legal entities.
6. The Heads of the local Anti Financial Crime Functions have the responsibilities related to the abovementioned topics with exceptions subject to approval by the Group Anti Financial Crime
Function.
Risk Report
153
Risk Management System
The principles defining the Group risk management system, including strategies, processes and reporting procedures, are provided
in the Risk Management Group Policy
7
, which is the cornerstone of all risk-related policies and guidelines. The Risk Management
Group Policy covers all risks, on a current and forward-looking basis, and is implemented in a consistent manner across the Group.
Generali Group’s risk management process is defined in the following phases:
1. Risk Identification
The risk identification process, so-called Main Risks Self-Assessment, aims to ensure that all material risks to which the Group is
exposed are properly identified. To this end, the Risk Management Function interacts with the main business functions and Business
Units in order to identify the main risks, assess their importance and ensure that adequate measures are taken to mitigate them,
according to a sound governance process. The identified risks are divided into quantifiable risks in terms of capital (life and non-
life underwriting risks, financial and credit risks, and operational risks) and non-quantifiable (liquidity, strategic, reputational and
contagion risks). At Group level, risks related to intra-group transactions, concentrations and interdependencies between risks are
also considered within the scope of non-quantifiable risks.
Within this process also emerging risks
8
related to future risks, characterised by uncertain evolution and often of systemic nature, are
considered, as well as sustainability risks
9
. In order to identify these risks, dedicated surveys are conducted with the main business
functions and Top management in all major countries where the Group operates.
The Group main risks’ identification process, Main Risks Self-Assessment, is conducted at both Group and local levels, and the
main conclusions are reported in ORSA Reports. For the identification process at Group level, the results of local risk identification
processes are also taken into consideration.
The process is conducted annually, with a periodic monitoring and with at least a further update during the year to capture any
significant changes in the identified risks.
2. Risk Measurement
Identified risks are then measured through their contribution to the SCR, complemented by other modelling techniques deemed
appropriate and proportionate to better reflect the Group risk profile. Using the same metric for measuring the risks and the capital
requirements ensures that each quantifiable risk is covered by an adequate amount of capital that could absorb the loss incurred if
the risk materializes. For SCR calculation purposes 1 in 200 years events are considered.
The SCR is calculated by means of the IM for financial, credit, life underwriting risk, non-life underwriting risk and operational risk, for
what may concern the most relevant Group legal entities
10
. The IM provides an accurate representation of the main risks the Group is
exposed to, measuring not only the impact of each risk taken individually but also their combined impact on the Group Own Funds.
Insurance and re-insurance entities not included in the IM scope calculate the capital requirement based on Standard Formula, while
other financial entities (e.g., banks, pension funds and asset managers) calculate the capital requirement based on their own specific
sectoral regimes.
Group PIM methodology and governance are provided in the section C. Solvency Position.
For liquidity risk a Group model is used to calculate the metrics, as defined in section D. Liquidity Risk. Other risks are assessed by
means of quantitative and qualitative techniques.
7. The Risk Management Group Policy covers all Solvency II risk categories and, in order to adequately deal with each specific risk category and the underlying business processes, is complemented
by the following risk policies: Investment Governance Group Policy; P&C Underwriting and Reserving Group Policy; Life Underwriting and Reserving Group Policy; Operational Risk Management
Group Policy; Liquidity Risk Management Group Policy, Tax Absorption Capacity of Deferred Taxes Group Policy, Risk Appetite Framework Group Policy; other risk-related policies, such as Capital
Management Group Policy, Supervisory Reporting and Public Disclosure Group Policy, Risk Concentrations Management Group Policy - Investment Exposures, Risk Concentrations Management
Group Policy – Reinsurance and Underwriting Exposures etc.
8. More details on emerging risks’ definition are provided in section D. Risk Profile.
9. More details on sustainability risks’ definition are provided in section D. Risk Profile.
10. For the SCR calculation, the use of IM has been approved for the most relevant insurance entities in Italy, Germany, France, Austria, Switzerland, Czech Republic and Spain.
2. Risk
measurement
1. Risk
identification
3. Risk management
and control
4. Risk
reporting
Annual Integrated Report and Consolidated Financial Statements 2023
154
Generali Group
3. Risk Management and Control
The risks which the Group is exposed to are managed on the basis of the Group RAF defined by the Board of Directors of Assicurazioni
Generali S.p.A. (hereafter, Board of Directors). The Group RAF defines the level of risk the Group is willing to accept in conducting
business and thus provides the overall framework for embedding risk management into business processes. In particular, the Group
RAF includes the statement of risk appetite, the risk preferences, the risk metrics, the tolerance and the target levels.
The purpose of the Group RAF is to set the desired level of risk on the basis of the Group strategy. The Group RAF statement is
complemented by:
• qualitative assertions (risk preferences) supporting the decision-making processes;
• risk tolerances providing quantitative boundaries to limit excessive risk-taking;
• an operating target range providing indications on the solvency level at which the Group aims to operate.
The tolerance levels and the operating target range are referred to capital and liquidity metrics.
The Group RAF governance provides a framework for embedding risk management into day-to-day and extraordinary business
operations, control mechanisms as well as escalation and reporting processes to be applied in case of risk tolerance breaches.
Should an indicator approach or breach the defined tolerance levels, pre-defined escalation mechanisms are activated.
4. Risk Reporting
The purpose of risk reporting is to keep business functions, Senior Management, AMSB and Supervisory Authority aware and
informed on an ongoing basis on the development of the risk profile and of the single risks, as well as any breaches of risk tolerances.
The ORSA process includes the reporting on the assessment of all risks, in a current and forward-looking view. For the purposes of
the evaluations, both quantifiable risks and not quantifiable risks in terms of capital requirements are considered. Within the ORSA,
stress tests, sensitivity analyses and reverse stress tests are also performed to assess the resilience of the solvency position and
risk profile to changed market conditions or specific risk factors. Moreover, exercises such as those related to measurement of the
impacts across various climate scenarios, including long-term ones, are also considered.
Generali Group applies a Group-wide process, which implies that each Group insurance legal entity is responsible for the preparation
of its own ORSA Report and the Parent Company coordinates the Group ORSA reporting process. The other entities, other than
insurance ones, set-up simplified reports by taking into account the principles of proportionality and/or reports prepared according
to local sectoral regulations.
At Group level, the process is coordinated by the Risk Management Function, supported by other functions for what concerns Own
Funds, technical provisions and other risks.
The purpose of the ORSA process is to provide the assessment of risks and of the overall solvency needs on a current and forward-
looking basis. The ORSA process ensures an ongoing assessment of the solvency position based on the Strategic Plan and the
Group Capital Management Plan.
The Group ORSA Report, documenting main results of this process, is produced on an annual basis. A non-regular ORSA Report
can also be produced in case of significant changes of the risk profile.
Risk Report
155
C. SOLVENCY POSITION
Solvency Capital Requirement Coverage
Risk and capital management are closely integrated processes aimed at managing the Group solvency position (or capital position)
and the Group risk profile.
The solvency position is defined as the ratio between Group Own Funds (GOF) and Solvency Capital Requirement (SCR).
At year-end 2023, the capital position
11
of the Group is confirmed solid, with the Solvency Ratio at 220% (221% as at 31 December
2022). The excellent contribution of the capital generation and the positive effect of M&A disposals were offset by the negative
impacts stemming from economic variances (due in particular to the decline in interest rates in the last part of the year), non-
economic variances (mainly linked to higher lapses in Italy and in France and to increased non-life insurance and reinsurance risks,
as well as to the business growth in Asia and the Long Term Incentive Plan buy-back), regulatory changes and capital movements
(from the dividend of the period, net of the subordinated debt issuances).
SCR coverage
(€ million) 31/12/2023 31/12/2022
GOF 49,049 46,421
SCR 22,304 21,050
Solvency Ratio 220% 221%
Based on last available information for 2023, official figures for 2022.
1. Group Own Funds
In compliance with the Solvency II regulatory requirements, Group Own Funds are defined as the sum of consolidated Basic Own
Funds (BOF) related to insurance entities, holdings and ancillary undertakings attributable to insurance activity and the Own Funds
attributable to financial entities, defined according to their sectoral solvency regulatory regimes.
Basic Own Funds, can be further analysed as the sum of the following components:
• the Excess of Assets over Liabilities as defined in accordance with art. 75 of Directive 2009/138/EC
12
;
• plus subordinated debt eligible in Basic Own Funds;
• less foreseeable dividends;
• less deductions for participations in financial entities;
• less deductions for Solo Own Funds items that are non-available for Group purposes
13
and for shares of the Parent Company.
Within Generali Group, ancillary Own Funds are not present.
The contribution to the Group Own Funds of the elements above listed is detailed in the following table:
Group Own Funds components
(€ million) 31/12/2023 31/12/2022
Excess of assets over liabilities 46,470 44,380
Subordinated debt eligible in Basic Own Funds 8,521 7,492
Foreseeable dividend -1,987 -1,790
Deductions for participations in financial entities -4,365 -3,827
Impact of deductions for non-availability & minorities and other deductions -1,895 -2,155
Basic Own Funds after deductions 46,744 44,099
Contribution of financial entities 2,305 2,322
GOF 49,049 46,421
Based on last available information for 2023, official figures for 2022.
11. The SCR and Own Funds, disclosed within this Report, are based on the last available information. Differences may arise in comparison to the official values, which will be included in the 2023
Solvency and Financial Condition Report (SFCR) and Quantitative Reporting Templates (QRT).
12. Net of minority interest for entities that are evaluated with the proportional consolidation method, according to article 335 of Commission Delegated Regulation (EU) 2015/35 of 10 October 2014.
13. Such as minority deductions, surplus funds and other items non-available to cover losses at Group level.
Annual Integrated Report and Consolidated Financial Statements 2023
156
Generali Group
Commenting on the items contributing to the GOF, it can be noted that:
• the increase (€ 2,090 million) of the Excess of Assets over Liabilities mainly reflects the excellent contribution of the capital
generation that, together with the positive effect of the economic variances, more than offsets the negative impacts stemming from
operating variances, regulatory changes and dividend paid during the year;
• the positive contribution (€ 1,030 million) of subordinated debt eligible in Basic Own Funds derives from the issuance of new Tier
2 subordinated debt eligible in Basic Own Funds and from the positive effect of the decline in interest rates;
• the amount of the foreseeable dividend increased by € 197 million (from € 1,790 to € 1,987 million);
• the higher impact (€ -538 million) of deductions for participations in financial entities mainly comes from the deduction related to
the participation in the French pension business and from the increase in the fair value of the outstanding shares of Banca Generali;
• the change of the impact (€ -260 million) of deductions for minorities and non-available items is mainly explained by the lower
amount of surplus funds deducted at Group level, by the cancellation of own shares of the Parent Company following the share
buyback plan in 2023, partially compensated by the higher amount of subordinated debt not available and deducted at Group
level;
• the slight decrease (€ -17 million) of the contribution of financial entities, also including the effects of the disposal of Generali
Deutschland Pensionskasse AG.
Group Own Funds Tiering
According to Solvency II regulation, Group Own Funds items are classified into three tiers representing different level of quality,
depending on the ability to absorb losses due to adverse business fluctuations on a going-concern basis and in the case of winding-
up.
The Group’s tiering is described below:
• tier 1 unrestricted Own Funds represents the following items:
- ordinary share capital and the related share premium account of the Parent Company;
- available surplus funds (from German, Austrian and French business);
- reconciliation reserve;
- deductions for minorities and other not available Own Funds items;
- available capital of financial entities.
• tier 1 restricted Own Funds includes subordinated liabilities that benefit from grandfathering regime
14
;
• tier 2 Own Funds is composed of subordinated liabilities, including the remaining part of grandfathered
15
subordinated debts, and
the positions issued after the entry into force of Solvency II Directive;
• tier 3 is composed by net deferred tax assets, which are characterised by lower capital quality being not immediately available to
absorb losses.
The GOF split by tiers is reported in the following table:
Group Own Funds by tiering
(€ million) 31/12/2023 31/12/2022
Tier 1 (unrestricted) 40,590 38,536
Tier 1 (restricted) 1,404 1,704
Tier 2 6,832 5,788
Tier 3 222 393
GOF 49,049 46,421
Based on last available information for 2023, official figures for 2022.
2023 Group Own Funds confirmed the high-quality of the capital tiering. Tier 1 amounts to 85.6% of the total (86.7% in 2022), Tier
2 represents 13.9% (12.5% in 2022), and Tier 3 only 0.5% of the total (0.8% in 2022).
No eligibility deductions are triggered thanks to the high-quality of the capital-tiering.
14. These items were issued before the entry into force of the Solvency II Directive and cover the Solvency margin up to 50% according to Solvency I regime.
15. Differently from tier 1 restricted, these grandfathered items cover the Solvency margin up to 25% according to Solvency I regime.
Risk Report
157
2. Solvency Capital Requirement
The SCR covers underwriting, financial, credit and operational risks as follows:
SCR split by risk
(€ million) 31/12/2023 31/12/2022
Total Impact (%) Total Impact (%)
SCR before diversification 34,012 100% 33,380 100%
Financial risk
(1)
12,820 38% 13,530 41%
Credit risk
(2)
7,849 23% 6,814 20%
Life underwriting risk 3,973 12% 3,920 12%
Health underwriting risk 345 1% 475 1%
Non-life underwriting risk 6,307 19% 5,868 18%
Intangible risk - - - -
Operational risk 2,717 8% 2,773 8%
Diversification benefit -8,167 -8,994
SCR after diversification 25,844 24,386
Tax absorption -4,902 -4,745
SCR excl. other regimes 20,942 19,641
Other regimes
(3)
1,362 1,409
SCR 22,304 21,050
Based on last available information for 2023, official figures for 2022.
(1) Financial risk includes spread risk (for Standard Formula entities).
(2) Credit risk includes default risk, spread widening and rating migration risks (for IM entities).
(3) Within this category other regulated financial entities are included (e.g., IORP, banks etc.).
The above SCR breakdown highlights that:
• financial and credit risks account for the 61% of the total SCR before diversification, due to the predominance of traditional life
business;
• life and non-life underwriting risks account for respectively 12% and 19% of the total SCR before diversification;
• health underwriting risk deriving from Standard Formula entities account for 1% of the total SCR before diversification;
• operational risks contribute to the Group SCR for the 8%.
Compared to the previous year, an overall SCR increase is observed, mainly due to:
• a reduction of financial risks, mostly linked to a reduction in the interest rate volatility;
• an increase of credit risks, mainly due to the rise in values of bond investments, consequent to the downturn of interest rates.
Finally, in the second half of this year, some Standard Formula Italian entities
16
and the German pension fund Generali Deutschland
Pensionskasse AG have been ceded.
Each risk category is further detailed in the section D. Risk Profile.
Minimum Capital Requirement Coverage
In addition to SCR coverage, the Group calculates the Minimum Consolidated Group SCR (MCR) coverage. The MCR calculation
is required to determine the minimum level of capital, under which the Group would be exposed to an unacceptable level of risk to
continue its operations.
The Minimum Solvency Ratio
17
stands at 256% as at 31 December 2023, with an increase of 9 p.p. compared to the previous year.
16. BCC Assicurazioni S.p.A., BCC Vita S.p.A., Vera Assicurazioni S.p.A., Vera Protezione S.p.A., Vera Vita S.p.A..
17. The MCR and Own Funds, disclosed within this Report, are based on the last available information. Differences may arise in comparison to the official values, which will be included in the 2023
Solvency and Financial Condition Report (SFCR) and Quantitative Reporting Templates.
Annual Integrated Report and Consolidated Financial Statements 2023
158
Generali Group
In the following table, the MCR coverage is reported:
MCR Coverage
(€ million) 31/12/2023 31/12/2022
GOF to meet the MCR 43,058 41,255
MCR 16,839 16,686
Ratio of GOF to MCR 256% 247%
Based on last available information for 2023, official figures for 2022.
To define MCR coverage, stricter Own Fund eligibility rules are applied compared to the ones previously used for the SCR
18
. In the
following table, the split by tiers of the Own Funds covering the MCR is reported:
GOF to meet the MCR by tiering
(€ million) 31/12/2023 31/12/2022
Tier 1 (unrestricted) 38,285 36,215
Tier 1 (restricted) 1,404 1,704
Tier 2 3,368 3,337
GOF to meet MCR 43,058 41,255
Based on last available information for 2023, official figures for 2022.
Sensitivity Analysis
In addition to the calculation of the SCR, the Group regularly performs sensitivity analyses of the variability of its Solvency Ratio to
changes in specific risk factors. The aim of these analyses is to assess the resilience of the Group capital position to the main risk
drivers and evaluate the impact of a wide range of shocks.
For this purpose, several sensitivity analyses have been performed as at 31 December 2023, in particular:
• increase and decrease of interest rates by 50bps;
• increase of Italian government bonds spread (Buoni del Tesoro Poliennali - BTP) by 100bps;
• increase of corporate bonds spread by 50bps;
• increase and decrease of equity values by 25%.
The changes in terms of percentage points with respect to baseline scenario as at 31 December 2023 (Solvency Ratio equal to
220%) are the following:
Sensitivity Analysis
Interest rates
+50bps
Interest rates
-50bps
BTP spread
+100bps
Corporate spread
+50bps
Equity
+25%
Equity
-25%
Delta on Solvency Ratio +2 p.p. -3 p.p. -6 p.p. -1 p.p. +6 p.p. -6 p.p.
Based on last available information for 2023.
Following EIOPA’s review of the Solvency II risk free rates term structure, the UFR (Ultimate Forward Rate) will be modified (for Euro,
the UFR will be decreased by 15bps): the expected impact of such change as at 31 December 2023 Solvency Ratio amounts to
about -1 p.p..
Group Partial Internal Model (Group PIM)
19
The IM is considered to be the most appropriate way of assessing the Group risk profile. It represents the best way of capturing the risk
profile of the entire Group and of the legal entities in scope in terms of granularity, calibration and correlation of the various risk factors.
The IM is structured around a Risk Map, defined in the Risk Management Group Policy, which contains all quantifiable risks that
Generali Group has identified as relevant to its business, allowing for the calculation of the SCR both at single risk level and at higher
aggregation level.
18. The amounts of tier 2 and tier 3 items eligible to cover the MCR are subject to stricter quantitative limits. The eligible amount of tier 1 items shall be at least 80% of the MCR; the same limitation
on subordinated liabilities and preference shares applied for the SCR coverage is set also for MCR coverage. The eligible amounts of tier 2 items shall not exceed 20% of the MCR. No tier 3 items
are allowed to cover the Minimum Capital Requirement. No capital from financial entities is considered.
19. The Internal Model at Group level is defined as "Partial" because a limited number of entities still use the Standard Formula to determine the capital requirement.
Risk Report
159
1. Group PIM Methodology
In order to calculate PIM SCR, the Group combines the results of the IM with two additional components: Standard Formula and
other sectoral regimes, in order to meet the regulatory requirements. To this extent Generali has decided to opt for the so-called
“Two-World Approach” to aggregate different regimes and methodologies. Under this approach, the PIM is calculated summing
up SCR evaluated with the approved IM methodology, with the SCR of Group legal entities based on Standard Formula and those
entities where a sectoral solvency regime is applicable.
In implementing the PIM, the Group has adopted, for the entities that received an IM approval, the so-called Monte-Carlo approach
with proxy functions to determine the Probability Distribution Forecast (PDF) of the changes in the Basic Own Funds over a one-year
time horizon.
2. Group PIM Governance
Governance and processes regarding the IM are defined in the Internal Model Governance Group Policy, ensuring that:
• models and components are appropriate for their purpose;
• procedures are in place to design, implement, use and validate new models and model changes;
• the appropriateness of models on an ongoing basis is confirmed.
To rule the activities related to the IM developments necessary to ensure its appropriateness over time and, more in general, to
support the IM change process, the Internal Model Change Group Policy has been also defined with the aim to specify roles and
responsibilities in the implementation of major and minor changes.
Within IM Governance, a dedicated committee, the Internal Model Committee, has been established to review Group IM calibrations,
and evaluate the proposals on all model methodologies, assumptions used, parameters, results, documentation and all other model
related elements in order to support the Group Chief Risk Officer (GCRO) in the decision-making process on IM developments
or model changes and to control the full model lifecycle, assuring proper compliance with the Internal Model Governance Group
Policy. This Committee is chaired by the Model Design Authority, in the person of the Head of Group Enterprise Risk Management,
responsible for ensuring the overall consistency and appropriateness of the IM. The members of the Internal Model Committee are
all the Model Owners and the Model Design Authority and any additional participants required by the Model Design Authority.
The GCRO defines the processes and controls to ensure the ongoing appropriateness of the design and operations of the IM, so
that it continues to appropriately reflect the Group risk profile. The GCRO is also responsible for defining the methodology of each
model component, based on the Group Internal Model Committee’s proposals, as well as for the results’ production and ultimately
for submitting the relevant IM reporting to the Risk and Control Committee and the Board of Directors.
The Board of Directors, assisted by the Risk and Control Committee, ensures the ongoing appropriateness of the design and
operations, the ongoing compliance of the IM and also that the IM continues to appropriately reflect the risk profile of the Group.
These roles are generally mirrored within the organizational structure of each Group legal entity within IM scope.
3. Group PIM Validation
The IM is subject to validation review on an ongoing basis, which aims to gain independent assurance of the completeness, robustness
and reliability of the processes and results of the IM, as well as their compliance with the Solvency II regulatory requirements.
The validation process follows the principles and procedures defined within the Internal Model Validation Group Policy and related
guidelines.
The validation outputs are designed to support Senior Management and Board of Directors in understanding the appropriateness of
the IM, including areas of weaknesses and limitations, especially with regards to its use.
To ensure an adequate level of independence, the resources performing the validation activities are not involved in the development
or operation of the IM.
Within the validation process, also the results obtained during previous validation exercises are considered, as well as developments
within internal and external business environment, financial market trends and IM changes. The IM validation process excludes those
aspects covered by the assurance work of the Actuarial Function (i.e. technical provisions and related IT systems, actuarial platforms
and their governance).
Furthermore, the validation process also serves as an incentive mechanism to ensure timely and accurate incorporation of modelling
refinements.
In order to warrant the appropriateness of the array of elements contained within the IM, the validation covers both the quantitative
and qualitative aspects of the IM and is therefore not limited to the calculation engine and methodology. Other important items such
as data quality, documentation and uses of the IM are validated accordingly.
The validation process is carried out on regular annual basis and when requested by either the Senior Management, Board of
Directors or Supervisory Authorities.
Annual Integrated Report and Consolidated Financial Statements 2023
160
Generali Group
D. RISK PROFILE
Life Underwriting Risk
Life underwriting risks derive from the Group’s core insurance business in the life and health segments. The major part of the
business and the related risks derive from direct portfolio underwritten by the Group. Health business represents a minor component
of the portfolio.
Management Report, Our financial performance for the indicators by
country, by volumes of premiums and related geographic breakdown
Notes, Insurance and investment contracts
The life portfolio consists of traditional business, which mainly includes insurance with profit participation, and unit-linked products.
The prevailing component of traditional business includes products with insurance coverages linked to the policyholders’ life and
health. It also includes pure risk covers, with related mortality risk, and some annuity portfolios, with the presence of longevity risk.
The vast majority of the insurance coverages includes legal or contractual policyholder rights to fully or partly terminate, surrender,
decrease, restrict or suspend the insurance cover or permit the insurance policy to lapse, or to fully or partially establish, renew,
increase, extend or resume the insurance or reinsurance cover. For these reasons, the products are subject to lapse risk.
Life and health underwriting risks can be distinguished in biometric and operating risks embedded in the life insurance policies.
Biometric risks derive from the uncertainty in the assumptions regarding mortality, longevity, health, morbidity, and disability rates
taken into account in the insurance liability valuations. Operating risks derive from the uncertainty regarding the amount of expenses
and the adverse exercise of contractual options by policyholders. Policy lapse is the main contractual option held by the policyholders,
together with the possibility to reduce, suspend or partially surrender the insurance coverage.
Life and health underwriting risks are:
• mortality risk, defined as the risk of loss, or of adverse change in the value of insurance liabilities, resulting from changes in mortality
rates, where an increase in mortality rates leads to an increase in the value of insurance liabilities. Mortality risk also includes
mortality catastrophe risk, resulting from the significant uncertainty of pricing and provisioning assumptions related to extreme or
irregular events;
• longevity risk, similarly to mortality, is defined as the risk resulting from changes in mortality rates, where a decrease in mortality
rates leads to an increase in the value of insurance liabilities;
• disability and morbidity risks derive from changes in the disability, sickness, morbidity and recovery rates;
• lapse risk is linked to the loss or adverse change in liabilities due to a change in the expected exercise rates of policyholder options.
The relevant options are all legal or contractual policyholder rights to fully or partly terminate, surrender, decrease, restrict or
suspend insurance cover or permit the insurance policy to lapse. Mass lapse events are also considered;
• expense risk results from changes in the expenses incurred in servicing insurance or reinsurance contracts;
• health risk, for the companies using IM, refers specifically to health insurance also linked to catastrophic events.
In addition to the risks above, the Group Risk Map includes also the going concern reserve risk, a German business specific risk that
refers to the misestimate of new business assumptions.
The approach underlying the life underwriting risk measurement is based on the calculation of the loss resulting from unexpected
changes in biometric and/or operating assumptions. Capital requirements for life underwriting risks are calculated on the basis of the
difference between the insurance liabilities before and after the application of the stress.
Life underwriting risks are measured by means of the PIM
20
.
The SCR for life underwriting risk amounts to € 3,973 million before diversification (equal to 12% of total SCR before diversification).
This is mainly driven by lapse risk, followed by expense
21
and mortality
22
risks. In terms of contribution to the risk profile, it is to be
noted that life underwriting risks are well diversified with other risk categories. The overall contribution to the risk profile therefore
remains limited.
Life underwriting risk management is embedded in the key underwriting processes being:
• product development and accurate pricing;
• ex-ante selection of risks through underwriting;
• setting and monitoring of operative underwriting limits;
• portfolio management and monitoring.
20. For the scope of the PIM please refer to section A. Executive Summary. Entities not included in the IM scope calculate the capital requirement based on Standard Formula or the capital
requirements of sectoral regime.
21. Including also the going concern reserve.
22. Including also Mortality Cat.
Risk Report
161
Product pricing consists in setting product features and assumptions regarding expenses, financial, biometric and policyholders’
behaviour to allow the Group legal entities to withstand any adverse development in the realization of these assumptions.
For savings business, this is mainly achieved through profit testing, while for protection and health business with a biometric
component, it is achieved by setting prudent assumptions.
Lapse risk, related to voluntary withdrawal from the contract, and expense risk, related to the uncertainty around the expenses that
the Group expects to incur in the future, are evaluated in a prudential manner in the pricing of new products. This evaluation is taken
into account in the construction and profit testing of a new tariff, considering the underlying assumptions derived from the Group’s
experience.
For insurance portfolios with a biometric risk component, comprehensive reviews of the mortality experience are compared with
expected mortality of the portfolio, determined according to the most up-to-date mortality tables available in each market. To this
end, mortality by sex, age, policy year, sum assured, and other underwriting criteria are taken into consideration to ensure mortality
assumptions remain adequate and avoid the risk of misestimating for the next underwriting years.
The same annual assessment of the adequacy of the mortality tables used in the pricing is performed for longevity risk. In this case,
not only biometric risks are considered but also the financial risks related to the minimum interest rate guarantee and any potential
mismatch between the liabilities and the corresponding assets.
For the purpose of long-term health insurance pricing, the monitoring of health-related market claims and corresponding indexing
mechanisms is performed.
As part of the underwriting process, Generali Group adopts underwriting guidelines. The Risk Management Function reviews
implications of new lines of business/products on the Group risk profile.
Moreover, a particular emphasis is placed on the underwriting of new contracts with reference to medical, financial and moral hazard
risks. The Group has defined clear underwriting standards through manuals, forms, medical and financial underwriting requirements.
For insurance riders, which are most exposed to moral hazard, maximum insurability levels are also set, lower than those applied for
death covers. In order to mitigate these risks, policy exclusions are also defined.
Regular risk exposure monitoring and adherence to the operative limits, reporting and escalation processes are also in place,
allowing for potential remediation actions to be undertaken.
During 2023 the evolution of the macroeconomic context influenced a market trend related to the increase in surrenders, which was
observed also for Generali Group, where surrendered volumes are mostly concentrated on the savings and hybrid business line, in
the bancassurance and financial advisor channels. Generali Group considered several initiatives to successfully sustain the business
results, which is also reflected in the increase in written premiums with respect to 2022.
To monitor the abovementioned effects, in addition to the sensitivity analyses which are part of the recurring activity during the year,
the Group carries out further analyses on life underwriting risks also considering longer time horizons such as those of the Strategic
Plan, which are reported in the scope of the ORSA process.
The available historical observations contribute to define the risk metrics of the IM, therefore, also the increases in inflation rates
started in 2022 are already integrated into the calibration of the IM.
Reinsurance represents the main risk mitigation technique. The Parent Company acts as core reinsurer for the Group legal entities
and cedes or retrocedes part of the underwritten risks to external reinsurers.
The Group reinsurance strategy is developed consistently with the risk appetite and with the risk preferences defined in the Group
RAF, and with the reinsurance market cycle. The reinsurance process and the definition of reinsurance treaties are coordinated by
the Group Reinsurance Function with the involvement of Risk Management and Actuarial Functions.
Finally, Generali Group, in addition to the strengthened monitoring process of premium, claims, and surrenders, has kept in place the
monitoring framework of the so-called “Unknown event”’ implemented in 2020 with the aim of identifying and assessing the negative
effects linked to the Covid-19 pandemic. During the “Unknown event” analysis conducted in 2023, no significant impacts emerged.
Non-Life Underwriting Risk
Non-life underwriting risks arise from the Group’s insurance business in the P&C segment.
Management Report, Our financial performance for the indicators by
country, by volumes of premiums and related geographic breakdown
Notes, Insurance and investment contracts
Annual Integrated Report and Consolidated Financial Statements 2023
162
Generali Group
Non-life underwriting risks include the risk of underestimating the frequency and/or severity of the claims in defining pricing and
reserves (respectively pricing risk and reserving risk), the risk of losses arising from extreme or exceptional events (catastrophe risk),
and the risk of policyholder lapses from P&C insurance contracts (lapse risk). In particular:
• pricing and catastrophe risks derive from the possibility that premiums are not sufficient to cover future claims, also in connection
with extremely volatile events and contract expenses;
• reserving risk derives from the uncertainty of the claims reserves (in a one-year time horizon);
• non-life lapse risk arises from the uncertainty of the underwriting profits recognised in the premium provisions.
Non-life underwriting risks are measured by means of the PIM
23
. For the majority of risks assessed through the PIM, the valuations
are based on in-house developed models and external models that are primarily used to assess the catastrophic events, for which
broad market experience is considered beneficial.
The SCR for non-life underwriting risk amounts to € 6,307 million before diversification (equal to 19% of total SCR before diversification).
This is mainly given by reserving risk, followed by Cat and pricing risks. Non-life lapse risk contributes only for a marginal amount to
the risk profile.
Moreover, the Group uses additional indicators for risk concentrations. This is specifically the case for catastrophe risks and Corporate
& Commercial risks, which are both coordinated at central level.
In terms of Cat risk, the Group’s largest exposures are earthquakes in Italy, European floods, and windstorms. Less material
catastrophe risks are also taken into account and assessed by means of additional scenario analysis.
At the same time, there is a constant ongoing improvement to consider risk adjusted KPIs in decision making processes in the
underwriting, portfolio monitoring, and reinsurance.
Based on the Group RAF, P&C risk selection starts with an overall proposal in terms of underwriting strategy and corresponding
business selection criteria. During the strategic planning process, targets are established and translated into underwriting limits to
ensure business is underwritten according to the Plan. Underwriting limits define the maximum size of risks and classes of business
that Group legal entities shall be allowed to write without seeking any additional or prior approval. The limits may be set based on
value, risk type, product exposure or class of occupancy. The purpose of these limits is to attain a coherent and profitable book of
business founded on the expertise of each legal entity.
Additional indicators such as relevant exposures, risk concentration and risk capital figures are used for the purpose of P&C
underwriting risk monitoring. The indicators are calculated at least on a half-yearly basis to ensure alignment with the Group RAF.
Regarding the customers’ assessment on sustainability matters in the non-life underwriting process, the Group has developed and
adopts the Responsible Underwriting Group Guideline, to guarantee the adoption of responsible behaviours and reduce exposures
to counterparties operating in potentially sensitive sectors, as defined in the aforementioned guideline.
During 2023, the strengthened monitoring process put in place during 2020 following the Covid-19 pandemic has been maintained
to ensure a constant oversight of the premiums, frequency and severity of claims, as well as of the related impact on the combined
ratio. As a result of the significant increase in cost of claims inflation observed across all lines of business, this monitoring has been
strengthened since 2022.
Furthermore, in addition to the sensitivity analyses which are part of the recurring activity during the year, the Group carries out further
analyses on non-life underwriting risks also considering longer time horizons such as those of the Strategic Plan, which are reported
in the scope of the ORSA process.
The available historical observations contribute to define the risk metrics of the IM, therefore, also the increases in inflation rates
started in 2022 are already integrated into the calibration of the IM.
Group entities have also reviewed the contractual conditions of P&C policies, in order to reduce the exposure to pandemics and/or
similar events.
Reinsurance is the key mitigation technique for balancing the P&C portfolio. It aims to optimise the use of risk capital by ceding part
of the underwriting risk to selected counterparties, whilst simultaneously minimising the credit risk associated with such operations.
The P&C Group reinsurance strategy is developed consistently with the risk appetite and the risk preferences defined in the Group
RAF, on one side, and taking into account the reinsurance market trend, on the other, especially in the recent years characterized by
a hardening of reinsurance market, resulting in renewals with higher retention levels at increased costs.
The Group has historically preferred traditional reinsurance as a tool for mitigating catastrophe risk resulting from its P&C portfolio,
adopting a centralised approach where the placement of reinsurance towards the market is managed by the Group Reinsurance
Function.
23. For the scope of the PIM please refer to section A. Executive Summary. Entities not included in the IM scope calculate the capital requirement based on Standard Formula or the capital
requirements of sectoral regime.
Risk Report
163
The Group aims at diversifying its cessions to reinsurers to avoid excessive concentrations, to optimise its reinsurance purchases,
including from a pricing perspective, and to continuously develop a proper know-how in the most innovative risk transfer techniques.
For this reason, part of the Italian earthquake and European windstorm exposures are carved out from the traditional catastrophe
reinsurance program and placed in the Insurance Linked Securities (ILS) market.
Finally, Generali Group, in addition to the strengthened monitoring process abovementioned, has kept in place the monitoring
framework of the so-called “Unknown event”’ implemented in 2020 with the aim of identifying and assessing the negative effects
linked to the Covid-19 pandemic. During the “Unknown event” analysis conducted in 2023, no significant impacts emerged.
Financial Risk and Credit Risk
The Group invests collected premiums in a wide variety of financial assets, with the purpose of honouring future obligations to
policyholders and generating value for its shareholders.
As a result, the Group is exposed to the financial risks driven by either:
• invested assets not performing as expected because of falling or volatile market prices;
• reinvested proceeds of existing assets being exposed to unfavourable market conditions, typically at lower interest rates.
Generali Group traditional life savings business is long-term in nature. Therefore, the Group’s portfolio is characterized by long-term
investments which are less impacted by short-term decreases and fluctuations in the market value of assets.
The Group manages its investments in a prudent way according to the so-called Prudent Person Principle
24
, and strives to optimize
the sustainability and the return of its assets while minimizing the negative impact of short-term market fluctuations on its solvency
position.
Under Solvency II, the Group is also required to hold a capital buffer, with the purpose of maintaining a sound solvency position even
under adverse market conditions.
To ensure a comprehensive management of the impact of financial and credit risks on assets and liabilities, the Group Strategic Asset
Allocation process has to take into consideration the coherence with the liabilities (liability-driven) and has to be strongly correlated
with insurance-specific targets and constraints. For this reason, the Asset Liability Management (ALM) and the Strategic Asset
Allocation (SAA) are strongly interdependent activities within the Group and Local ALM and SAA definition process.
The aim of the ALM and SAA process is to define the most efficient combination of asset classes which, according to the Prudent
Person Principle, maximizes the investment contribution to value creation, considering solvency, actuarial and accounting indicators.
The aim is not just to mitigate risks but also to define an optimal risk-return profile that satisfies both the return target and the risk
appetite of the Group over the business planning period.
The Group proactively integrates material sustainability matters into the investment process. Therefore, the Group defines a sustainable
investment framework and adopts guidelines to integrate material sustainability matters into the decision-making process across
asset classes in order to:
• manage the actual or potential impacts on the environment and the society generated by its investment strategy (inside-out
perspective);
• manage the potential impact of sustainability risk on the value of its investments (outside-in perspective).
Where relevant, the Group integrates the material sustainability matters into the SAA and TAA (Tactical Asset Allocation) processes
also through the definition of specific targets and constraints.
Furthermore, as a long-term liability-driven institutional investor and assets owner with a fiduciary duty, the Group integrates active
ownership in its sustainable investment framework, considering it a contributor to long-term risk mitigation and value creation for
clients and shareholders.
The assets’ selection is performed by taking into consideration the risk profile of the liabilities, so to ensure that they are covered by
appropriate and sufficient assets. This selection process aims at guaranteeing the security, quality, profitability, and liquidity of the
overall portfolio, providing an adequate diversification of the investments.
The asset portfolio is invested and rebalanced according to asset class and duration weights. The main risk mitigation techniques
used by the Group are the liability-driven management of the assets and the regular portfolio rebalancing.
The liability driven approach helps granting a comprehensive management of assets that takes into account the liability structure;
at the same time, the regular portfolio rebalancing redefines target weights for the different asset classes and related durations,
respecting the tolerance ranges set as investment limits. This approach contributes to an appropriate mitigation of financial risks.
24. The Prudent Person Principle set out in Article 132 of Directive 2009/138/EC requires the company to only invest in assets and instruments whose risks can be identified, measured, monitored,
controlled and reported as well as taken into account in the company overall solvency needs. The adoption of this principle is ruled in the Investment Governance Group Policy.
Annual Integrated Report and Consolidated Financial Statements 2023
164
Generali Group
ALM and SAA activities aim at ensuring the Group holds sufficient and adequate assets to reach defined targets and meet liability
obligations. For this purpose, analyses of the asset-liability relationship under a range of market scenarios and expected/stressed
investment conditions are undertaken.
The Group works to ensure a close interaction between the Group Chief Investment Officer (GCIO), Group Chief Financial Officer
(GCFO, incl. Treasury), Actuarial and Risk Management Functions to secure that the ALM and SAA processes remain consistent with
the Group RAF, the strategic planning and the capital allocation mechanisms. The annual SAA proposal defines:
• target exposures and boundaries for each relevant asset class, including minimum and maximum allowed exposure, and a set of
key indicators (e.g., duration), embedding potential ALM mismatches deemed acceptable and respecting the risk limits;
• target returns at portfolio and asset class level, which are then transposed to Asset Management Companies.
Regarding specific asset classes such as (i) private equity, (ii) bond instruments of private issuers, (iii) hedge funds and liquid
alternative, (iv) derivatives and structured products, the Group has mainly centralized their management and monitoring. This kind of
investments is subject to accurate due diligence to assess their quality, the level of risk related to the investment, and its consistency
with the approved liability-driven SAA.
The Group also uses derivatives with the aim of mitigating the risk present in the asset and/or liability portfolios. The derivatives help
the Group to improve the quality, liquidity and profitability of the portfolio, according to the business planning targets. Also operations
in derivatives are subject to a regular monitoring and reporting process.
In 2023 the effects of the Covid-19 pandemic came to an end, however, the geopolitical context and in particular the conflicts in
Ukraine and Middle East have contributed to maintaining high the financial markets’ volatility. Therefore, some strategic measures,
already adopted since 2020, have been maintained. In particular:
• for equity exposures, hedging strategies have been implemented;
• for the bond component, in order to monitor any accelerations in the deterioration of creditworthiness, a bi-weekly reporting was
prepared on issuers subject to a rating deterioration or to a spread widening that might suggest an increased probability of default.
Furthermore, in 2023, a macro hedge was implemented to cover possible negative developments in the credit market.
In addition to the risk tolerance limits set on the Group solvency position within the Group RAF, the current Group risk monitoring
process is also integrated by the application of the Investments Risk Group Guideline (IRGG). The IRGG include general principles,
quantitative risk limits (with a strong focus on credit and market concentration), and, for specific asset classes (e.g., private debt
and private equity), the minimum requirements to be met for fund selection and portfolio management. Moreover, the IRGG define
authorization processes and prohibitions that Group entities need to comply with.
With reference to the geopolitical context and its impacts on financial and credit markets observed during 2023, please refer to the
section A. Executive Summary (External Context).
Financial Risk
Within the life business, the Group assumes a considerable financial risk related to guarantees to policyholders with a minimum
return on the accumulated capital over a potentially long period. If the yields generated by the financial investments are lower
than the guaranteed return during this period, then the Group shall compensate the shortfall for those contractual guarantees. In
addition, independently on the achieved asset returns, the Group has to secure that the value of the financial investments backing
the insurance contracts remains sufficient to meet the value of its obligations.
Unit-linked business typically does not represent a source of financial risk for insurers (except when there are guarantees embedded
in the contracts), although market fluctuations typically have profitability implications.
Regarding P&C business, the Group has to ensure that the benefits can be paid on a timely basis when claims occur.
In more detail, the Group is exposed to the following generic financial risk types:
• equity risk deriving from the risk of adverse changes in the market value of the assets or in the value of liabilities due to changes in
the level of equity market prices which can lead to financial losses;
• equity volatility risk deriving from changes in the volatility of equity markets. The exposure to equity volatility is typically related to
equity option contracts or to insurance products sold with embedded guarantees whose market consistent value is sensitive to
the level of equity volatility;
• interest rate risk, defined as the risk of adverse changes in the market value of the assets or in the value of liabilities due to changes
in the level of interest rates in the market. The Group is mostly exposed to downward changes in interest rates as lower interest
rates increase the present value of the commitments towards policyholders more than the value of the assets backing those
commitments. As a result, it may become increasingly costly for the Group to maintain its commitments assumed, thereby leading
to financial losses;
Risk Report
165
• interest rate volatility risk derives from changes in the level of interest rate implied volatilities. This risk related, for example, from
insurance products with embedded minimum guarantees whose market consistent value is sensitive to the level of interest rates
volatility;
• property risk deriving from changes in the level of property market prices. Exposure to property risk arises from property asset
positions held;
• currency risk deriving from adverse changes in exchange rates;
• concentration risk deriving from asset portfolio concentration to a small number of counterparties.
Notes, Investments
Financial risks are measured by means of the PIM
25
. In particular:
• equity risk is modelled by associating each equity exposure to a market index representative of its industrial sector and/or
geography. Potential changes in market value of the equities are then estimated based on past shocks observed for the selected
indices;
• equity volatility risk models the impact that changes in the equity implied volatility can have on the market value of derivatives;
• interest rate risk models the changes in the term structure of the interest rates for various currencies and the impact of these
changes on any interest rate sensitive asset and on the value of future liability cash flows;
• interest rate volatility risk models the impact that the variability in interest rate curves can have on both the market value of
derivatives and the value of liabilities sensitive to interest rate volatility assumptions (such as minimum pension guarantees);
• property risk models the returns on a selection of property investment indices and the associated impact on the value of the
Group’s property assets. These are mapped to various indices based on property location and type of use;
• for currency risk, the plausible movements in exchange rate of the reporting currency of the Group in respect to foreign currencies
are modelled, as well as the consequent impact on the value of asset holdings not denominated in the domestic currency;
• for concentration risk the extent of additional risk borne by the Group due to insufficient diversification in its equity, property and
bond portfolios is assessed.
Risk measurement by means of the IM also applies to complex and/or illiquid financial instruments, ensuring their correct valuation
within the modules included in the Group Risk Map.
The SCR for financial risk amounts to € 12,820 million before diversification (equal to 38% of total SCR before diversification). This
risk is mainly driven by equity risk, interest rate risk, real estate risk and currency risk.
The available historical observations contribute to define the risk metrics of the IM, therefore, also the market events related to 2023
are integrated into the calibration of the IM.
Credit Risk
The Group is exposed to credit risks related to invested assets and those arising from other counterparties (e.g., cash, reinsurance).
Credit risks include the following two categories:
• spread widening risk, defined as the risk of adverse changes in the market value of debt security assets. Spread widening can be
linked either to the market’s assessment of the creditworthiness of the specific obligor (often implying also a decrease in rating) or
to a market-wide systemic reduction in the price of credit assets;
• default risk, defined as the risk of incurring in losses because of the inability of a counterparty to honour its financial obligations.
Notes, Investments
Credit risks are measured by means of the PIM
26
. In particular:
• credit spread risk models the possible movement of the credit spread levels for bond exposures of different rating, industrial sector
and geography based on the historical analysis of a set of representative bond indices. Spread-sensitive assets held by the Group
are associated with specific indices based on the characteristics of their issuer and currency;
• default risk models the impact of default of bond issuers or counterparties to derivatives, reinsurance and in general other
transactions on the value of the Group’s assets. Distinct modelling approaches have been implemented to model default risk for
the bond portfolio (i.e. credit default risk) and the risk arising from the default of counterparties in cash deposits, risk mitigation
contracts (such as reinsurance), and other types of exposures (i.e. counterparty default risk).
25. For the scope of the PIM please refer to section A. Executive Summary. Entities not included in the IM scope calculate the capital requirement based on Standard Formula or the capital
requirements of sectoral regime.
26. For the scope of the PIM please refer to section A. Executive Summary. Entities not included in the IM scope calculate the capital requirement based on Standard Formula or the capital
requirements of sectoral regime.
Annual Integrated Report and Consolidated Financial Statements 2023
166
Generali Group
Risk measurement by means of the IM also applies to complex and/or illiquid financial instruments, ensuring their correct valuation
within the modules included in the Group Risk Map.
The IM credit risk model evaluates spread risk and default risk also for sovereign bond exposures. This approach is more prudent
than the Standard Formula, which treats bonds issued by EU Central Governments and denominated in domestic currency as
exempt from credit risk.
The SCR for credit risk amounts to € 7,849 million before diversification (equal to 23% of total SCR before diversification). Credit
risk mainly derives from the spread risk of fixed-income securities, while the contribution to SCR of the counterparty risk (including
reinsurer’s default) remains more limited.
In addition, all the credit risk monitoring tools introduced following the Covid-19 pandemic have been maintained, and in particular
the continuous monitoring of portfolio downgrades to identify their solvency impacts and to define possible risk mitigation actions.
The available historical observations contribute to define the risk metrics of the IM, therefore, also the credit events related to 2023
are integrated into the calibration of the IM.
The credit risk assessment is based on the credit rating assigned to counterparties and financial instruments. To limit the reliance on
rating assessments provided by external rating agencies, an internal credit rating assignment framework has been set.
Within this framework, additional rating assessments can be performed at counterparty and/or financial instrument level. The
assigned rating is normally reviewed on an annual basis. This process applies independently from the availability of external ratings.
Moreover, additional assessments are performed each time the parties involved in the process gain access to new information,
deriving from reliable sources, that may affect the creditworthiness of the issuer and/or the financial instrument.
The internal credit rating assignment system at counterparty level is based on the evaluation of quantitative metrics and qualitative
elements. The risk elements that are considered, among others, are referred to the assessment of the riskiness of the sector to
which the counterparties belong, of the country in which their activities are carried out, and of the controlling group, where present.
Additionally, macroeconomic factors potentially affecting the credit stance of the borrowers are considered, such as: interest rates
levels, movements in the FX market and prices of raw materials. At financial instrument level, instead, the risk of the issuer is one of
the main elements considered, together with the peculiarities of the instrument itself.
The most important strategy for the mitigation of credit risk used by the Group is the application of a liability-driven SAA, which can
limit the impact of the market spread volatility. In addition, the Group is actively mitigating counterparty default risk by using, where
feasible (e.g., for derivative transactions), collateralisation strategies mitigating the losses the Group might suffer as a result of the
default of one or more of its counterparties.
Operational Risk
Operational risk is the risk of loss arising from inadequate or failed internal processes, personnel or systems, or from external events.
The definition includes the risk of non-compliance with regulations (compliance risk) and the risk of incorrect information in financial
reporting (financial reporting risk), and excludes strategic and reputational risks which, however, can be indirect consequence of
operational risk.
The operational risks to which Generali Group is exposed are identified and classified in the in the Operational Risk Management
Group Policy detailing the Group Risk Map defined in the Risk Management Group Policy.
Operational risks are measured by means of the PIM
27
. In particular, the operational risk capital is calculated using an approach
based on scenario analysis carried out by the Head of operational areas (risk owner) who, by expert judgement and with the support
of Subject Matter Experts, provides estimation of frequency and severity for each of the scenarios related to the identified operational
risk category. Only material operational risks are then considered as input for the IM calibration. The probability distributions of losses
over one-year horizon are thus derived, which are subsequently aggregated in order to obtain the annual loss distribution allowing to
determine the capital requirement at a confidence level of 99.5% (as per Solvency II principles).
This approach allows to better reflect Group risk profile capturing its specificities. The SCR for operational risk amounts to € 2,717
million before diversification (equal to 8% of total SCR before diversification).
27. For the scope of the PIM please refer to section A. Executive Summary. Entities not included in the IM scope calculate the capital requirement based on Standard Formula or the capital
requirements of sectoral regime.
Risk Report
167
Based on the 2023 risk assessment results, the most relevant risks for the Group, also considering the indirect impacts of strategic
and reputational risks, are confirmed, in continuity with last year, the risks linked to cyber-attacks, data protection, unavailability or
dysfunction of applications and critical infrastructures, the risks of non-compliance with regulations concerning money laundering,
terrorist financing and international sanctions (particularly related to the current geopolitical situation and the continuous evolution
of the regulatory framework), as well as the risks of errors in the product development and documentation, in distribution and in
management of customer relationship (also in light of the new transparency rules and considerations on the sustainability matters
defined by the legislation on sustainable finance).
The risk assessment results are influenced by the current external context. During 2023, indeed, geopolitical tensions combined with
market instability have hampered the economic recovery in a context severely affected by the post-pandemic crisis,contributing to
maintaining high the exposure to risks related to cyber-attacks, operational resilience, and financial crimes. Cybersecurity remains
among the most significant concerns in the financial sector and for the Group, due to the increased sophistication of cyber-attacks
and the growing number of malicious vectors (cyber criminals), independent or supported by the States. Potential losses from a
cyber-attack have been estimated through a specific scenario analysis conducted within the risk assessment process of the Group.
In the current environment where dependence on digital technologies is increasing and the degree of interconnections among
infrastructures are more complex, the rise in cyber-attacks and technological threats contribute to the exposure to risks that can
compromise the operational resilience of the Group, such as the security and protection of data and the availability of applications
and critical infrastructures, internal or managed by third parties. Furthermore, geopolitical tensions and market uncertainty have
weakened supply chains and caused the increase in costs of raw materials, energy, growth in inflation and interest rates, especially
in the first half of 2023, increasing the potential risks liked to the availability of critical services and utilities, and exposing the Group
to the risk of socio-political events induced by the phenomenon of social erosion.
In terms of governance, the responsibility for managing the risk is placed in the first line of defence, the so-called risk owners,
whereas the Risk Management Function defines methodologies and processes aimed at identifying, measuring, managing, and
monitoring the main risks which the Group is exposed to. In this way, management at all levels is guaranteed with a holistic view of
the broad operational risk spectrum that is essential for prioritizing actions and allocating resources in most risk related critical areas.
The target is achieved by adopting methodologies and tools in line with industry best practices and by establishing a strong dialogue
with the first line of defence.
To further strengthen the risk management system and in addition to the usual risk owners’ responsibilities, the Group has established
specialised units within the first line of defence with the aim of dealing with specific risks (relating, for example, to cyber-attacks, fraud
events and financial reporting risk) acting as a key partner for the Risk Management Function.
An example is the creation of a dedicated unit for the management and coordination of the Group-wide IT Security (cyber risk) that
steers the evolution of the IT security strategy and operating model, ensuring a timely detection and resolution of the vulnerabilities
that may affect the business.
Finally, it should be noted that Generali Group exchanges operational risk data, properly anonymized, through the Operational Risk
data eXchange Association (ORX), a global association of operational risk practitioners where main banking and insurance players
at global level participate. The aim is to use the data to improve the risk management and to anticipate emerging trends. In addition,
since losses are collected by the first line, the process contributes to create awareness among the risk owners upon risks that could
impact the Group. In this sense, a primary role is played by forward-looking assessments that aim to estimate the evolution of the
operational risk exposure in a given time horizon, supporting the anticipation of potential threats, the efficient allocation of resources
and the definition of related initiatives.
The loss data collection integrates the previously mentioned scenario analysis (forward-looking perspective) with a backward
perspective, thus allowing for a comprehensive assessment of operational risks.
Other Material Risks
Liquidity Risk
Liquidity risk is defined as the uncertainty, emanating from business operations, investment or financing activities, over the ability of
the Group and its legal entities to meet payment obligations in a full and timely manner, in a current or stressed environment.
The Group is exposed to liquidity risk from its insurance and reinsurance operating activity, due to the potential mismatches between
the cash inflows and the cash outflows deriving from the business.
Liquidity risk can also stem from investing activity, due to potential liquidity gaps deriving from the management of the asset portfolio
as well as from a potentially insufficient level of liquidity in case of disposals (e.g., capacity to sell adequate amounts at a fair price
and within a reasonable timeframe).
Annual Integrated Report and Consolidated Financial Statements 2023
168
Generali Group
Liquidity risk from financing activity is related to the potential difficulties in accessing external funding or in paying excessive financing
costs.
The Group can be also exposed to liquidity risk stemming from issued guarantees, commitments, derivative contracts margin calls,
or regulatory constraints.
The Group liquidity risk management framework relies on projecting cash obligations and available cash resources over a 12-month
time horizon, to monitor that available liquid resources are at all times sufficient to cover cash obligations that will become due in the
same horizon.
A liquidity risk metric (liquidity indicator) has been defined to monitor the liquidity situation of each Group insurance legal entity on a
regular basis. Such metric is forward-looking, i.e. it is based on projections of cash flows, stemming both from assets and liabilities
and on the assessment of the level of liquidity and ability to sell the asset portfolio at the beginning of period.
The metric is calculated under both the so-called base scenario, in which the values of cash flows, assets and liabilities correspond
to those projected according to each legal entity’s Strategic Plan, and the so-called liquidity stress scenario, in which the projected
cash inflows and outflows and the market price of assets are calculated to take into account unlikely but plausible circumstances
that would adversely impact the liquidity of each Group insurance legal entity.
Liquidity risk limits have been defined in terms of value of the abovementioned liquidity indicator. The limit framework is designed to
ensure that each Group legal entity holds an adequate buffer of liquidity in excess of the amount required to withstand the adverse
circumstances described in the liquidity stress scenario.
The Group has defined a metric to measure liquidity risk at Group level, based on the liquidity metric calculated at legal entity
level. The Group manages expected cash inflows and outflows to maintain a sufficient available level of liquid resources to meet
its medium-term needs. The Group metric is forward-looking and is calculated both under the base and liquidity stress scenario;
liquidity risk limits have been defined in terms of value of the abovementioned Group liquidity risk indicator.
The Group has established clear governance for liquidity risk management, including specific limit setting and the escalation process
in case of limit breaches or other liquidity issues.
The principles for liquidity risk management designed at Group level are fully embedded in strategic and business processes,
including investments and product development.
Since the Group explicitly identifies liquidity risk as one of the main risks connected to investments, indicators as cash flow duration
mismatch are embedded in the SAA process. In addition, investment limits are set to ensure that the share of illiquid assets (including
also complex financial instruments) remains within a level that does not impair the Group asset liquidity. These limits are subject to a
regular monitoring at Group and Business Unit level.
The Group has defined in its Life and P&C Underwriting and Reserving Group Policies the principles to be applied to mitigate the
impact on liquidity from surrenders in life business and claims in non-life business.
During 2023, all the expected cash remittances from Group companies have been secured, contributing to the Parent Company’s
significant cash position, despite the still uncertain macroeconomic context, influenced by persistent geopolitical tensions but with
gradual stabilization of the price level following the intervention of the Central Banks especially concentrated in the first semester.
The Group continues to closely monitor the liquidity position of the companies in order to anticipate any repercussions arising from
the economic environment.
Management Report, Debt and liquidity, p. 113 for further details on the management of financial liabilities and of the related maturities, including
exhaustive analyses on liabilities linked to financial activities and on available liquidity in terms of cash and cash equivalents
Notes, Insurance and investment contracts
Concentration Risk
The Group identifies three main sources of concentration risk for the Group:
• investment risk concentration;
• exposures to reinsurance counterparty default risk stemming from ceded reinsurance;
• non-life underwriting exposures, specifically natural disasters or man-made catastrophes.
Investments risk concentration is the potential loss in the value of the investment portfolio and corporate treasury portfolio when an
individual or a group of exposures are large enough to threaten the solvency or liquidity position of the Group or a significant change
in the Group risk profile.
Investment concentrations at Group level are managed through the Risk Concentrations Management Group Policy - Investment
Exposures. This Policy defines a comprehensive framework for managing investments risk concentrations, in particular, it defines the
categories against which the concentration has to be measured: ultimate, geography, industry sector and currency.
Risk Report
169
The metrics for measuring investments risk concentrations are based on both market value and Risk Based Exposure (Risk Based
Exposure is calculated by multiplying the market value by a stress coefficient identified in coherence with the IM considering the risk
profile of each individual position in terms of rating, country of issue, asset type and industry sector).
The exposure is subject to specific concentration limits (above which the Board of Directors approval is needed) and concentration
reporting thresholds (above which the exposure is reported to the Board of Directors for informative purposes).
Alongside the limits defined in terms of market value and Risk Based Exposure, the aforementioned Policy also provides further limits
set for bonds in terms of incidence of exposure with respect to the issuer’s total debt, and for shares in terms of voting rights. The
concentrations on investments are monitored on a quarterly basis and are reported on half-yearly basis to the Board of Directors.
The Group has developed a specific framework for identifying, measuring, monitoring, managing and reporting Group risk
concentrations stemming from exposures to reinsurance counterparties and non-life underwriting exposures, within the Risk
Concentrations Management Group Policy - Reinsurance and Underwriting Exposures.
Reputational, Emerging and Sustainability Risks
Although not included in the calculation of SCR, the following risks are also taken into account:
• reputational risk referring to potential losses arising from deterioration or a negative perception of the Group among its customers
and other stakeholders. Within the Sustainability Risks Group Guideline and Operational Risk Group Guidelines
28
, reputational risks
are mostly considered second order risks, closely referred to sustainability matters or consequent to operational risks;
• emerging risks arising from new or future risks, more complex to identify and quantify, and typically systemic. These risks generally
refer to environmental topics and climate change, technological changes and digitalisation, geopolitical developments, and
demographic and social changes. For the identification and the assessment of these risks and to raise the awareness on the
implications of the main emerging risks, the Risk Management Function engages with a dedicated network, including specialists
from business functions (Group Chief Life & Health Officer, Group Chief P&C and Reinsurance Officer, Group Chief Investment
Officer, Asset & Wealth Management, Group Planning Processes, Cost Control & Performance Monitoring, Group Data, Analytics
& AI Strategy, Methods and Governance, Group Integrated Reporting, Group Chief Marketing & Customer Officer, Group Strategy
& Business Transformation and Group Chief Sustainability Officer given the relevant interrelation with sustainability topics). The
Group also participates in the Emerging Risk Initiative (ERI), a dedicated working group of the CRO Forum, which involves the
CROs of the main European groups. Within the ERI, risks common to the insurance industry are discussed and published in the
ERI Radar as well as specific studies (Position Papers) on selected emerging risks. During 2023, for example, the ERI updated the
Radar available on the CRO Forum’s website;
• sustainability risks referring to an environmental, social or governance event or condition that, in case of occurrence, it could
cause an actual or a potential negative impact on the value of the investment or on the value of the liability. The management of
sustainability risks, as well as the management of the potential negative impacts resulting from business decisions on sustainability
matters, in addition to being defined in the Risk Management Group Policy, are mainly ruled in the Sustainability Group Policy,
Investment Governance Group Policy, Life Underwriting and Reserving Group Policy, P&C Underwriting and Reserving Group
Policy and further detailed in the related guidelines.
During 2023, the Climate Change Risk project continued with the aim of strengthening the risk management framework, starting
from risk assessment through climate scenarios and including management tools such as limitations and controls in the investment
process.
Management Report, Challenges and opportunities of the market context, p. 20, for further details on climate change - including the Climate
Change Risk project - demographics and digitalization
www.generali.com/what-we-do/emerging-risks for more details on emerging risks
28. Details are within the Operational Risk Internal Model Group Guideline and the Operational Risk for Regulated Non-Internal Model and Operative Legal Entities Group Guideline.
OUTLOOK
Annual Integrated Report and Consolidated Financial Statements 2023
172
Generali Group
The expected timing and extent of interest rate cuts by central banks are set to drive financial markets in 2024. Inflationary pressures
continue to ease and markets are already discounting lower rates by the end of 2023. Nevertheless, the Fed and ECB may err on
the side of caution and proceed cautiously in easing their policy rates amid tight labour markets and resilient wage growth. Global
growth in 2024 is set to moderately slow down versus 2023; however, the global economy seems increasingly well-positioned to
avoid a recession.
In this context, the Group continues to execute its strategy to rebalance the Life portfolio to further increase profitability and allocate
capital more efficiently. It will also maintain its focus on product simplification and innovation, with the introduction of a range of
modular product solutions that are designed to meet the customer needs, and are marketed through the most suitable and efficient
distribution channels. Generali’s objective to be a Lifetime Partner to its customers underpins all Life, Protection and Health business
development processes in line with the strategic plan.
This strategic approach for new business growth continues to be centered on the selective development of business lines designed
to better respond to increasingly competitive financial markets. Primary focus areas include protection and health, as well as capital-
light savings. The development of these business lines aims to offer a wide range of insurance solutions adapted to risk and
investment profiles for the benefit of both the policyholder and the Group. In particular, for protection and health products the Group
aims to offer modular solutions in which traditional risk coverage is combined with substantial service packages to provide enhanced
prevention and resolution. For capital-light savings, an increasing number of unit-linked products benefit from financial mechanisms
that mitigate potential market contractions (e.g. protected funds and guided investment management options).
The Group will increase its focus on developing insurance solutions that adequately and effectively align with its ESG goals. ESG
criteria have become an important factor for a growing number of customers who are looking to generate investment returns while
also being mindful of environmental, social and governance issues. The development of this type of investment solutions has been
further accelerated by the EU’s Sustainable Finance Disclosure Regulation and the related transparency commitments towards
customers.
With regards to the Group’s in-force business as part of Generali’s Lifetime Partner commitment, efforts will continue to further
strengthen relations with existing customers responding to their insurance needs.
Premium trends will continue to reflect the Group’s priorities identified in the strategic plan, centered on customer needs and a
prudent underwriting approach consistent with the Risk Appetite Framework, which is focused on continuous value creation through
capital-light products.
In the Property & Casualty segment, the Group’s objective is to maximize profitable growth - with a focus on the non-motor line -
across the insurance markets in which it operates, strengthening its position and offering especially in countries with high growth
potential.
The Group confirms and strengthens its adaptive approach towards tariff adjustments, also considering the increase in reinsurance
coverage costs due to the increased natural catastrophe claims in recent years.
Consistent with the strategic priorities of profitable growth and with the aim of being a Lifetime Partner to our customers, the non-
motor offer will continue to be enhanced with additional modular solutions designed to meet specific customer interests and needs.
This is resulting in an improved and innovative prevention, assistance and protection services, supported by the latest digital tools
and platforms. These actions will also be beneficial to address the impact of climate events in terms of both frequency and severity.
The Group confirms its prudent approach towards P&C market opportunities, discipline in risk underwriting, portfolio management
optimization (pricing, selection and profitability of risks, efficient management of claims), and the careful evaluation of new coverage
needs in line with the Group’s customer-centric approach to product development.
Given these product opportunities which require a low level of capital absorption, growth of the P&C segment will continue with the
aim to enhance - also thanks to the recent acquisition of Liberty Seguros, operating in Spain, Portugal and Ireland - its leadership in
the European insurance market for private individuals, professionals and small and medium-sized enterprises (SMEs).
Building on its commitment to embed sustainability across the business, the Group will also increase its focus on developing
insurance solutions that respond to its ESG goals in the P&C segment, to environmental topics and climate change in particular.
The two main goals of this focus on sustainability will be to increase our customers’ resilience to climate risks by developing specific
products, which meet the European Taxonomy requirements, and to implement an underwriting approach that also considers
climate change mitigation aspects, with the aim to reduce emissions associated with our insurance portfolios.
In the Asset & Wealth Management segment, Asset Management will continue to implement its strategy with the objectives of
expanding the product catalog, particularly in real assets and private assets, enhancing distribution capabilities, and extending its
presence in new markets. This strategy will also be supported by the acquisition of Conning Holdings Limited and its affiliates, which
is expected to be completed by the first half of 2024. In Wealth Management, the Banca Generali group will continue to focus on its
targets of size, profitability and shareholders’ high remuneration as outlined in its strategic plan.
With reference to the Group’s investment policy, it will continue to pursue an asset allocation strategy aimed at ensuring consistency
with liabilities to policyholders and, where possible, at increasing current returns.
In order to efficiently match assets and liabilities, the Group will continue to mainly use long-term government bonds with high credit
ratings to ensure effective coverage of long-term liabilities. The Group will also maintain its balanced approach to investments in
investment-grade corporate bonds that contribute to improving the profitability of portfolios.
Thanks to their contribution to portfolio diversification and returns, and to the protection offered in inflationary scenarios, investments
Outlook
173
The Report contains statements concerning events, estimates, forecasts and future expectations based on the current knowledge of the Group’s
management. Such statements are generally preceded by expressions such as “a decrease/increase is expected”, “is forecast”, “should grow”, “we
believe it may decline” or other similar wording. Please note that these forward-looking statements should not be considered forecasts of the Group’s
actual results or of factors outside the Group. Generali assumes no obligation to update or revise such forecasts, even after new information, future
events or other elements come to light, unless required by law.
in private and real assets continue to be an important part of the Group’s strategy, following a prudent approach that takes into
account the lower liquidity of these instruments. In the real estate sector, the controlled investment funds’ strategy will focus on major
European cities mainly in France, Italy and CEE, whereas in Asia the Group will invest through funds of funds.
The Group’s equity investments are managed with particular attention to periods of volatility, in order to seize market opportunities
and ensure greater portfolio diversification. Equity exposure is also managed through hedging derivative strategies.
The Group proactively integrates sustainability factors into the investment process for all asset classes. In this context, the Group’s
policy is strongly focused on environmental aspects above all, prioritizing investments that are consistent with green energy policies
aimed at reducing climate change impacts.
Thanks to the business actions taken to continue to increase profitability as well as the strategic initiatives launched in line with the
plan, the Group confirms its commitment to pursue sustainable growth, enhance its earnings profile and lead innovation in order
to achieve a compound annual growth rate in earnings per share
1
between 6% and 8% in the period 2021-2024, to generate Net
Holding Cash Flow
2
exceeding € 8.5 billion in the period 2022-2024 and to distribute cumulative dividends to shareholders for an
amount between € 5.2 billion and € 5.6 billion in the period 2022-2024, with a ratchet policy on the dividend per share. The Group
expects to achieve this latter target by May 2024: more specifically, on the assumption that the Shareholders’ Meeting on 24 April
2024 will approve the proposal of distributing dividends in 2024 for € 2.0 billion, cumulative dividends in the period 2022-2024 will
be € 5.5 billion.
The Lifetime Partner 24: Driving Growth strategic plan also embeds sustainability commitments, including growing premiums from
insurance solutions with ESG components by 5%-7% CAGR in the period 2021-2024, a net-zero insurance portfolio by 2050, the
full integration
3
of ESG criteria into direct investments by 2024 and new green and sustainable investments worth between € 8.5
and € 9.5 billion in the period 2021-2025. The Group is committed to make its investment portfolio net-zero by 2050, by reducing
the carbon footprint of listed equities and corporate bonds by 25% by 2024
4
. In addition, a roadmap was defined for the complete
exclusion of investments and underwriting activities in the thermal coal sector in OECD countries by 2030 and later in the rest of the
world through more stringent exclusion criteria. The Group also defined exclusion criteria for other controversial sectors such as the
conventional and unconventional oil and gas sector. To demonstrate consistency with what is required from companies insured and
financed by the Group, it has set a science-based greenhouse gas emissions reduction target on own operations.
The Group will continue to invest in its employees to ensure they are engaged with the successful delivery of the strategic plan, while
fostering a sustainable work environment. It will also focus on further enhancing its customer-centric culture, based on competencies
and skills development, including the 70% target for upskilling employees with new digital and strategic skills. Generali will continue
to support its employees with fair processes and equal opportunities, considering diversity in all its components as a value with the
ambition to have 40% women in strategic positions
5
. The Group is also committed to embracing new sustainable and balanced
hybrid work models in all of its entities, delivering important benefits to its employees and stakeholders in the Next Normal.
1. 3-year CAGR based on 2024 Adjusted EPS (according to IFRS 17/9 accounting standards and Adjusted net result definition currently adopted by the Group), versus 2021 Adjusted EPS
(according to IFRS 4 accounting standards and Adjusted net result definition adopted by the Group until 2022).
2. Net Holding Cash Flow and dividend expressed on cash basis (i.e. cash flows are reported under the year of payment).
3. General account - Direct investments (corporate bond and equity, sovereign bond).
4. Reduction in terms of GHG intensity per invested amount. Baseline: 2019.
5. Group Management Committee, Generali Leadership Group and their first reporting line.
Annual Integrated Report and Consolidated Financial Statements 2023
176
Generali Group
The Annual Integrated Report of the Generali Group includes non-financial information in compliance
with the provisions of legislative decree of 30 December 2016, no. 254 (leg. decree 2016/254), in
implementation of European Directive 2014/95. In line with the approach adopted, this information
is clearly identified through a specific infographic to improve accessibility to the information itself.
Information relating to environmental matters, social and employee-related matters, respect for human rights, anti-corruption and
bribery matters - which is relevant to the activities and characteristics of the Group - is reported to the extent necessary for an
understanding of the Group’s development, performance, position and impact of its activity. It comprises a description of the:
• organization and management model, including direct and indirect impact (p. 18-19). The main operating companies based in
Italy have adopted models, pursuant to art. 6, paragraph 1, letter a), of legislative decree of 8 June 2001, no. 231. These models
aim at mitigating risks connected to offences that are relevant also to leg. decree 2016/254;
Corporate Governance and Share Ownership Report 2023, p. 111 for the organization and management model of the Parent Company
• policies applied (p. 20-33; 86-91);
• non-financial key performance indicators (p. 11; 34-91);
• principal risks related to the matters mentioned above, as reported in the table below, and their management.
The Report also complies with art. 8 of Regulation EU 2020/852 (known as EU Taxonomy Regulation) on transparency of undertakings
in non-financial statements and the relative Delegated Regulations.
Our strategy, Responsible investor, p. 57
Our strategy, Responsible insurer, p. 68
The Report is in accordance with the criteria of the International <IR> Framework
1
. It adopts for the disclosure of non-financial
matters envisaged by leg. decree 2016/254 selected indicators from the GRI Standards 2021 and indicators in accordance with
a proprietary methodology.
The Report is in line with the 2023 priorities on non-financial information by ESMA
2
and considers the Task force on Climate-related
Financial Disclosures (TCFD) recommendations and the guidelines on non-financial reporting of the European Commission
3
as for
the environmental matters.
Notes to the Management Report, p. 188 for further information
Sustainability Integrated Reporting Project
To address developments in regulatory obligations compliant to the EU Taxonomy and the Corporate Sustainability Reporting Directive
(CSRD), in 2022 the Group initiated the Sustainability Integrated Reporting (SIR) project with the coordination of the Group CFO area. The
goal is to structure a solid operational model for sustainability reporting, supporting the Group’s strategic developments and business
objectives, as well as incorporating native data quality principles.
The timely involvement of all contributing corporate functions (e.g. Group Chief Sustainability Officer, Group Chief Risk Officer, Group Chief
P&C & Reinsurance Officer, Group Chief Investment Officer, and Group Chief HR & Organization Officer) and Group business units, as well
as the continuous effort to seize opportunities and synergies with the business, are some of the key factors of the project.
Various activities were carried out, including a specific analysis of the reporting requirements provided by the standards, the definition
of Group methodological guidelines and interpretations for the information to be included in future reporting, governance, processes,
and related controls. Additionally, a dedicated technological solution for data collection and reporting was identified. A training program,
in collaboration with the Group Academy, was also initiated for all Group employees with the aim of further strengthening awareness of
sustainability reporting issues.
This strategic project represents Generali’s journey in addressing sustainability matters, emphasizing the sharing and integration of
stakeholders - both internal and external to the Group - and communicating externally the results in a comprehensive and transparent
manner.
The methodology employed for the materiality analysis, developed in 2019, concentrates on the identification of the mega trends, i.e.
the large social, environmental and governance transformations, which are expected to be able to significantly change the world of
enterprises, society and the natural environment over a ten-year horizon, entailing risks and opportunities for Generali, its value chain
and its stakeholders. We intend to gather strategies, actions and reporting to support the Group’s ability to create lasting value over
NFS
1. The responsibility of the document, developed by the International Integrated Reporting Council (IIRC) in 2021, has been assumed by the IFRS Foundation starting from August 2022.
2. The document European common enforcement priorities for 2023 annual financial reports is available on www.esma.europa.eu.
3. Guidelines on non-financial reporting: supplement on reporting climate-related information (C/2019/4490) were published in June 2019. They are available on eur-lex.europa.eu.
Consolidated Non-Financial Statement
177
time. The Statement reflects this analysis: it focuses on the most material identified mega trends and describes the management
tools in place to mitigate risks and seize opportunities related to them.
The following activities were carried out to identify the material megatrends:
• identification of the potentially material mega trends in connection with the Group’s activities, strategy and countries, which were
identified based on public scenario analysis documents and sustainable development research drawn up by international non-
government institutions or associations, think tanks, trade associations and forums in the industry;
• assessment of the mega trends, aggregating the viewpoint of both internal and external stakeholders, who were asked to order
the identified mega trends by priority, considering both their potential impact on Generali and the possibility that they are influenced
by us, also through our value chain.
Over 120 top managers at the Group Head Office and business unit levels were involved internally through interviews and focus
groups. To guarantee an adequate consideration of the risk component of the identified mega trends, the internal assessment also
considered the results of the Group Own Risk and Solvency Assessment process.
The assessment of the external stakeholders was supplemented by the analysis of the investment policies of 20 large SRI and
traditional investors, by the results of opinion polls conducted by Eurobarometer involving a sample of over 114,000 people in
Europe, and by the analysis of a survey conducted with the sustainability managers of roughly 190 multinational companies.
Furthermore, about 1,700 company reports, 2,600 rules and bills of law, 4,000 articles published online and over 108 million tweets
published between April and October 2019 were analysed using Artificial Intelligence technology and computational linguistics with
the support of a specialised provider;
• processing of the Group materiality analysis, previously discussed by the Board Committee competent for sustainability issues and
the Board of Statutory Auditors, and then approved by the Board of Directors.
In 2020, considered the context change triggered by the Covid-19 pandemic, Generali’s top management reviewed the current
relevance of the materiality analysis carried out the year before and confirmed its validity, still considering it an effective synthesis of
the priority corporate and social challenges for the years to come.
There was just a limited number of changes compared to the results from the analysis carried out in 2019: the Pandemics and
extreme events mega trend was moved to cluster 1, which currently includes only two other priorities for the benefit of a greater
focus: Climate change and Ageing and new welfare. In November 2020, the Board of Directors approved these updates together
with a more immediate representation of the materiality analysis, which further highlights the distribution of the mega trends within
the three priority clusters that determine the Group’s approach for their management.
In 2023, the methodology adopted in 2019 continued to guide the Group’s approach to managing and reporting on megatrends;
however, it was deemed appropriate to update the materiality analysis to better reflect the evolution of the current context linked to
the pandemic crisis.
The megatrend Pandemics and extreme events has been moved from the central cluster to the intermediate one. This shift is based
on the fact that in May 2023, the World Health Organization (WHO) officially declared the end of the state of emergency linked to
the Covid-19 pandemic. Even though the crisis is officially over, we believe that the topic is still relevant and potentially impactful for
Generali, its stakeholders, the environment and society, and it is for this reason that it was decided to move it to the intermediate
cluster. In the central cluster, two priorities remain: Climate change and Ageing and new welfare.
The proposed change was discussed by internal and external stakeholders of the Group, validated by the Board Committee
responsible for sustainability issues, and subsequently approved by the Board of Directors.
NFS
Glossary available at the end of this document
1
Central cluster that identifies the material
mega trends on which the strategic initiatives
common to the Group are focused and the
disclosure of which is included in this Report
2
Intermediate cluster that groups the mega trends
of considerable relevance, which are addressed
by specific business units or functions
3
External cluster that groups the mega trends
to be monitored, which are of minor relevance
compared to the other factors analysed
Geopolitical and
financial instability
Polarization
of lifestyles
Transparency and
purpose-driven businesses
Regulatory complexity
Changing
nature of work
Digital revolution
and cybersecurity
Biodiversity
degradation
Resource scarcity
and sharing economy
Change
in healthcare
Urbanization
Migrations
and new households
Unmediated access to
information
Ageing and
new welfare
Pandemics and
extreme events
Climate
change
Increasing
inequalities
Women
and minorities
inclusion
123
Annual Integrated Report and Consolidated Financial Statements 2023
178
Generali Group
The material information pursuant to the decree
4
was identified taking the mega trends belonging to the first two clusters into
consideration. Confirming the approach adopted in the previous Statement, the material mega trends specified above are reported in
this Report using indicators announced through the strategic plan and monitored in the planning and control processes, comparing
them - where feasible - to the previous period and considering their consolidated reporting scope, unless otherwise reported in the
chapters dedicated to them. In general, exclusions from the consolidated reporting scope may apply to the entities when alternatively:
• their data are not relevant for an understanding of the Group’s development, performance, position and impact of its activity;
• they are classified as discontinued operations (ex IFRS 5);
• they are acquired in the financial year covered by the Consolidated Non-Financial Statement and don’t have adequate non-
financial data collection processes already in place;
• there’s a lack of access to the necessary data beyond reasonable efforts.
In order to monitor the processes for the collection of non-financial information, the Group has implemented an integrated data
quality framework. This model leverages the approach adopted for the financial reporting disclosed to the market. In specific, the
integrated approach to data quality, for which recurring awareness campaigns have been held, is based both on general principles
adopted by all employees and on a dedicated system of governance (i.e. roles and responsibilities) over the data governance at
Group level. For supporting the alignment of data and information in this Consolidated Non-Financial Statement with the Group’s
methodology, a Reporting Guidebook has been drawn. It includes indicators, calculation methods and reporting flows, as well as
main roles and responsibilities and a standard catalogue of control objectives applicable to the processes at Assicurazioni Generali
and each Group contributing company level. The integrated data quality framework is based on a streamlined approach that allows
the control activities to be identified and assessed compared to the applicable control objectives and risks. For monitoring purposes,
specific activities aimed at verifying the design of the processes and the effectiveness of controls are also carried out, where
necessary, by an independent advisor.
The following table connects the material mega trends and those of considerable relevance as mentioned above to the five matters
envisaged by leg. decree 2016/254, including the related main risk categories, key performance indicators and pages of the Report
in which they are reported. It also highlights our support for the Sustainable Development Goals of the United Nations.
NFS
4. The following matters envisaged by leg. decree 2016/254, art. 3, paragraph 2 are not material: water use, air pollutant emissions and impact on health and safety.
5. Categories are defined in accordance with the provisions of European Directive 2009/138 on the taking-up and pursuit of the business of insurance and reinsurance (Solvency II). Specifically,
within the sustainability risks, which are by their nature cross and impact several risk categories, a specific framework was defined for the climate change risk management. See the Risk Report
chapter in the Annual Integrated Report and Consolidated Financial Statements 2023 for their specific management. As for operational risks, the taxonomy is in line with the provisions of Solvency
II Directive/Basel III. See also the page What we do/Emerging Risks on the Group’s website for the analysis of the emerging risks and their relations with sustainability factors.
6. The mega trend Climate change also includes extreme events.
7. Limited to possible risks of non-compliance with laws.
MATTERS ex leg.
decree 2016/254
MATERIAL MEGATRENDS
AND THOSE OF
CONSIDERABLE RELEVANCE
MAIN RISK
CATEGORIES
5
KEY PERFORMANCE
INDICATORS
PAGES OF THE
REPORT
SUSTAINABLE
DEVELOPMENT GOALS
1.
ENVIRONMENTAL
MATTERS
CLIMATE CHANGE
6
Emerging sustainability risks with
foreseeable developments on underwriting,
financial, operational and reputational risks
(Clients and products: Product flaws; Damage
to physical assets: Accidents and natural
disasters, Human caused events; Business
disruption and system failure: Infrastructure
dysfunction, Unavailability of facilities/utilities)
∙ GHG emissions from Group operations
∙ Electricity purchased from renewable sources
∙ Carbon footprint of investment portfolio (EVIC)
∙ New green and sustainable investments
∙ Direct investments by the Group’s insurance
companies subject to negative screening
approach
∙ Assets managed ex art. 8/9 SFDR
∙ Shareholders’ Meetings attended
∙ Resolutions voted
∙ Against votes
∙ GRE portfolio aligned to the CRREM pathway
∙ GHG emissions of GRE portfolio
∙ GHG intensity of GRE portfolio
∙ Premiums from insurance solutions with ESG
components - environmental sphere
∙ Insurance exposure to fossil fuel sector
p. 11, 24-32, 44-57,
66-67, 72, 81-82,
88-90
RESOURCE SCARCITY AND
SHARING ECONOMY
p. 24-25, 82, 90
BIODIVERSITY DEGRADATION p. 44-57, 88
TRANSPARENCY AND
PURPOSE-DRIVEN
BUSINESSES
Operational risks
7
(Clients and products:
Suitability, disclosure and fiduciary duties,
Improper business or market practices,
Selection, sponsorship and exposure;
Transaction capture, execution and
maintenance: Third Party management)
p. 44-57, 88
Consolidated Non-Financial Statement
179
NFS
8. Extreme events are illustrated in the megatrend Climate change.
Pursuant to art. 5 of the Consob Regulation of 18 January 2018, no. 20267, the Generali Group assigned the auditing firm KPMG
S.p.A. - the current external auditor for the financial statements - with the task of performing the limited assurance activity on this
Statement, except for the provisions of Regulation EU 2020/852 and the relative Delegated Regulations in line with the guidelines
issued by Assonime and Assirevi.
Milan, 11 March 2024
The Board of Directors
2.
SOCIAL MATTERS
PANDEMICS AND EXTREME
EVENTS
8
Operational risks (External fraud: System
security (from external attack); Employment
practices: Employee relations, Workplace safety)
with possible impact in terms of strategic
and underwriting risks
∙ Direct investments by the Group’s insurance
companies subject to negative screening
approach
∙ Assets managed ex art. 8/9 SFDR
∙ Shareholders’ Meetings attended
∙ Resolutions voted
∙ Against votes
∙ Fenice 190
∙ Investments in Digital & Technology
∙ Premiums from insurance solutions with ESG
components - social sphere
∙ Relationship NPS
∙ % multi-holding customers
∙ Customers
∙ Agents
∙ Active countries for The Human Safety Net
∙ Active partners for The Human Safety Net
p. 11, 51
DIGITAL REVOLUTION AND
CYBERSECURITY
Operational risks (External fraud: System
security (from external attack); Employment
practices: Employee relations, Workplace safety,
Workplace discrimination; Transaction capture,
execution and maintenance: Third Party
management)
p. 21-23, 39
TRANSPARENCY AND
PURPOSE-DRIVEN
BUSINESSES
p. 10-11, 39-42,
44-57
AGEING AND NEW WELFARE
Emerging risks with foreseeable
developments on strategic, underwriting
and operational risks (Clients and products:
Product flaws, Selection, sponsorship and
exposure, Advisory activities; Employment
practices: Workplace discrimination; Damage to
physical assets: Human caused events)
p. 11, 33, 66-67
CHANGE IN HEALTHCARE p. 11, 33, 66-67
POLARIZATION OF
LIFESTYLES
p. 11, 33, 66-67
INCREASING INEQUALITIES p. 11, 83-85
3.
EMPLOYEE-RELATED
MATTERS
TRANSPARENCY AND
PURPOSE-DRIVEN
BUSINESSES
Operational risks (Employment practices:
Employee relations, Workplace safety,
Workplace discrimination)
∙ Women in strategic positions
∙ Upskilled employees
∙ Entities working hybrid
∙ Engagement rate
∙ Our people
∙ Women
∙ Average training hours per capita
∙ Training investment
∙ Equal pay gap
∙ Gender pay gap
∙ Accessibility gap to variable remuneration
between males and females
p. 11, 75, 79-80
CHANGING NATURE OF WORK p. 10-11, 74, 81
WOMEN AND MINORITIES
INCLUSION
p. 11, 74, 76-79
4.
RESPECT FOR
HUMAN RIGHTS
MATTERS
TRANSPARENCY AND
PURPOSE-DRIVEN
BUSINESSES
Operational risks
7
(Employment practices:
Employee relations, Workplace safety,
Workplace discrimination; Clients and products:
Product flaws, Selection, sponsorship and
exposure, Advisory Activities; Transaction
capture, execution and maintenance: Third
Party management)
∙ Direct investments by the Group’s insurance
companies subject to negative screening
approach
∙ Assets managed ex art. 8/9 SFDR
∙ Shareholders’ Meetings attended
∙ Resolutions voted
∙ Against votes
p. 44-57, 87-88
5.
ANTI-CORRUPTION
AND BRIBERY
MATTERS
TRANSPARENCY AND
PURPOSE-DRIVEN
BUSINESSES
Operational risks (Internal fraud: Unauthorised
activity; Clients and products: Improper
business or market practices)
∙ Direct investments by the Group’s insurance
companies subject to negative screening
approach
∙ Assets managed ex art. 8/9 SFDR
∙ Shareholders’ Meetings attended
∙ Resolutions voted
∙ Against votes
∙ Employees who completed the training
course on the Code of Conduct
∙ Whistleblowing reports on the Group Code
of Conduct
p. 44-57, 87-88,
90-91
REGULATORY COMPLEXITY p. 87-88, 90-91
Independent Auditor’s
Report on the
Consolidated
Non-Financial Statement
Annual Integrated Report and Consolidated Financial Statements 2023
182
Generali Group
KPMG S.p.A.
Revisione e organizzazione contabile
Via Pierluigi da Palestrina, 12
34133 TRIESTE TS
Telefono +39 040 3480285
Email it-fmauditaly@kpmg.it
PEC kpmgspa@pec.kpmg.it
Ancona Bari Bergamo
Bologna Bolzano Brescia
Catania Como Firenze Genova
Lecce Milano Napoli Novara
Padova Palermo Parma Perugia
Pescara Roma Torino Treviso
Trieste Varese Verona
Società per azioni
Capitale sociale
Euro 10.415.500,00 i.v.
Registro Imprese Milano Monza Brianza Lodi
e Codice Fiscale N. 00709600159
R.E.A. Milano N. 512867
Partita IVA 00709600159
VAT number IT00709600159
Sede legale: Via Vittor Pisani, 25
20124 Milano MI ITALIA
KPMG S.p.A. è una società per azioni di diritto italiano e fa parte del
network KPMG di entità indipendenti affiliate a KPMG International
Limited, società di diritto inglese.
(This independent auditors’ report has been translated into English solely for the convenience of
international readers. Accordingly, only the original Italian version is authoritative.)
Independent auditors’ report on the consolidated non-financial
statement pursuant to article 3.10 of Legislative Decree no. 254 of
30 December 2016 and article 5 of the Consob Regulation adopted
with Resolution no. 20267 of 18 January 2018
To the Board of Directors of
Assicurazioni Generali S.p.A.
Pursuant to article 3.10 of Legislative Decree no. 254 of 30 December 2016 (the “Decree”) and article
5.1.g) of the Consob (the Italian Commission for listed companies and the stock exchange) Regulation
adopted with Resolution no. 20267 of 18 January 2018, we have been engaged to perform a limited
assurance engagement on the 2023 consolidated non-financial statement of the Generali Group (the
“Group”) prepared in accordance with article 4 of the Decree, presented in the specific section of the
Annual integrated report and consolidated financial statements 2023 and approved by the Board of
Directors on 11 March 2024 (the “NFS”).
Our procedures did not cover the information set out in the “European Taxonomy” sections from page 57
to page 65 and from page 68 to page 71 of the NFS, required by article 8 of Regulation (EU) 852 of 18
June 2020.
Responsibilities of the Directors and Board of Statutory Auditors (“Collegio Sindacale”)
of Assicurazioni Generali S.p.A. (the “Parent”) for the NFS
The Directors are responsible for the preparation of an NFS in accordance with articles 3 and 4 of the
Decree and the “Global Reporting Initiative Sustainability Reporting Standards” issued by GRI - Global
Reporting Initiative (the “GRI Standards”), with reference to selected GRI Standards and certain
indicators of the GRI G4 Financial Services Sector Disclosures (the “GRI Standards - Referenced
option”), as well as performance indicators defined by a proprietary reporting methodology, as specified
in the “Notes to the management report” section of the Annual integrated report and consolidated
financial statements 2023 (the “performance indicators”).
The Directors are also responsible, within the terms established by the Italian law, for such internal
control as they determine is necessary to enable the preparation of an NFS that is free from material
misstatement, whether due to fraud or error.
183
KPMG S.p.A.
Revisione e organizzazione contabile
Via Pierluigi da Palestrina, 12
34133 TRIESTE TS
Telefono +39 040 3480285
Email it-fmauditaly@kpmg.it
PEC kpmgspa@pec.kpmg.it
Ancona Bari Bergamo
Bologna Bolzano Brescia
Catania Como Firenze Genova
Lecce Milano Napoli Novara
Padova Palermo Parma Perugia
Pescara Roma Torino Treviso
Trieste Varese Verona
Società per azioni
Capitale sociale
Euro 10.415.500,00 i.v.
Registro Imprese Milano Monza Brianza Lodi
e Codice Fiscale N. 00709600159
R.E.A. Milano N. 512867
Partita IVA 00709600159
VAT number IT00709600159
Sede legale: Via Vittor Pisani, 25
20124 Milano MI ITALIA
KPMG S.p.A. è una società per azioni di diritto italiano e fa parte del
network KPMG di entità indipendenti affiliate a KPMG International
Limited, società di diritto inglese.
(This independent auditors’ report has been translated into English solely for the convenience of
international readers. Accordingly, only the original Italian version is authoritative.)
Independent auditors’ report on the consolidated non-financial
statement pursuant to article 3.10 of Legislative Decree no. 254 of
30 December 2016 and article 5 of the Consob Regulation adopted
with Resolution no. 20267 of 18 January 2018
To the Board of Directors of
Assicurazioni Generali S.p.A.
Pursuant to article 3.10 of Legislative Decree no. 254 of 30 December 2016 (the “Decree”) and article
5.1.g) of the Consob (the Italian Commission for listed companies and the stock exchange) Regulation
adopted with Resolution no. 20267 of 18 January 2018, we have been engaged to perform a limited
assurance engagement on the 2023 consolidated non-financial statement of the Generali Group (the
“Group”) prepared in accordance with article 4 of the Decree, presented in the specific section of the
Annual integrated report and consolidated financial statements 2023 and approved by the Board of
Directors on 11 March 2024 (the “NFS”).
Our procedures did not cover the information set out in the “European Taxonomy” sections from page 57
to page 65 and from page 68 to page 71 of the NFS, required by article 8 of Regulation (EU) 852 of 18
June 2020.
Responsibilities of the Directors and Board of Statutory Auditors (“Collegio Sindacale”)
of Assicurazioni Generali S.p.A. (the “Parent”) for the NFS
The Directors are responsible for the preparation of an NFS in accordance with articles 3 and 4 of the
Decree and the “Global Reporting Initiative Sustainability Reporting Standards” issued by GRI - Global
Reporting Initiative (the “GRI Standards”), with reference to selected GRI Standards and certain
indicators of the GRI G4 Financial Services Sector Disclosures (the “GRI Standards - Referenced
option”), as well as performance indicators defined by a proprietary reporting methodology, as specified
in the “Notes to the management report” section of the Annual integrated report and consolidated
financial statements 2023 (the “performance indicators”).
The Directors are also responsible, within the terms established by the Italian law, for such internal
control as they determine is necessary to enable the preparation of an NFS that is free from material
misstatement, whether due to fraud or error.
2
Generali Group
Independent auditors’ report
31 December 2023
Moreover, the Directors are responsible for the identification of the content of the NFS, considering the
aspects indicated in article 3.1 of the Decree and the Group’s business and characteristics, to the extent
necessary to enable an understanding of the Group’s business, performance, results and the impacts it
generates.
The Directors’ responsibility also includes the design of an internal model for the management and
organisation of the Group’s activities, as well as, with reference to the aspects identified and disclosed in
the NFS, the Group’s policies and the identification and management of the risks generated or borne.
The Collegio Sindacale is responsible for overseeing, within the terms established by the Italian law,
compliance with the Decree’s provisions.
Auditors’ independence and quality control
We are independent in compliance with the independence and all other ethical requirements of the
International Code of Ethics for Professional Accountants (including International Independence
Standards, the IESBA Code) issued by the International Ethics Standards Board for Accountants, which
is founded on fundamental principles of integrity, objectivity, professional competence and due care,
confidentiality and professional behaviour. Our company applies International Standard on Quality
Control 1 (ISQC Italia 1) and, accordingly, maintains a system of quality control including documented
policies and procedures regarding compliance with ethical requirements, professional standards and
applicable legal and regulatory requirements.
Auditors’ responsibility
Our responsibility is to express a conclusion, based on the procedures performed, about the compliance
of the NFS with the requirements of the Decree and the GRI Standards - Referenced option, as well as
the performance indicators. We carried out our work in accordance with the criteria established by
“International Standard on Assurance Engagements ISAE 3000(revised) - Assurance Engagements
other than Audits or Reviews of Historical Financial Information” (“ISAE 3000 revised”), issued by the
International Auditing and Assurance Standards Board applicable to limited assurance engagements.
This standard requires that we plan and perform the engagement to obtain limited assurance about
whether the NFS is free from material misstatement. A limited assurance engagement is less in scope
than a reasonable assurance engagement carried out in accordance with ISAE 3000 revised, and
consequently does not enable us to obtain assurance that we would become aware of all significant
matters and events that might be identified in a reasonable assurance engagement.
The procedures we performed on the NFS are based on our professional judgement and include
inquiries, primarily of the Parent’s personnel responsible for the preparation of the information presented
in the NFS, documental analyses, recalculations and other evidence gathering procedures, as
appropriate.
Specifically, we performed the following procedures:
1. Analysing the material aspects based on the Group’s business and characteristics disclosed in the
NFS, in order to assess the reasonableness of the identification process adopted on the basis of the
provisions of article 3 of the Decree and taking into account the reporting standards applied.
2. Analysing and assessing the identification criteria for the reporting scope, in order to check their
compliance with the Decree.
Annual Integrated Report and Consolidated Financial Statements 2023
184
Generali Group
3
Generali Group
Independent auditors’ report
31 December 2023
3. Comparing the financial disclosures presented in the NFS with those included in the Group’s
consolidated financial statements.
4. Gaining an understanding of the following:
• the Group’s business management and organisational model, with reference to the management
of the aspects set out in article 3 of the Decree;
• the Group’s policies in connection with the aspects set out in article 3 of the Decree, the
achieved results and the related key performance indicators;
• the main risks generated or borne in connection with the aspects set out in article 3 of the
Decree.
Moreover, we checked the above against the disclosures presented in the NFS and carried out the
procedures described in point 5.a).
5. Understanding the processes underlying the generation, recording and management of the
significant qualitative and quantitative information disclosed in the NFS.
Specifically, we held interviews and discussions with the Parent’s management personnel and
personnel of Assicurazioni Generali S.p.A., Generali Italia S.p.A., Generali Deutschland AG, Generali
Vie S.A., Generali Versicherung AG, Generali España S.A., de Seguros y Reaseguros, Generali
Personenversicherung AG, Generali Česká Pojišťovna a.s. and Generali China Life Insurance Co.
Ltd.. We also performed selected procedures on documentation to gather information on the
processes and procedures used to gather, combine, process and transmit non-financial data and
information to the office that prepares the NFS.
Furthermore, with respect to significant information, considering the Group’s business and
characteristics:
• at Group level,
a) we held interviews and obtained supporting documentation to check the qualitative
information presented in the NFS and, specifically, the business model, the policies applied
and main risks for consistency with available evidence,
b) we carried out analytical and limited procedures to check, on a sample basis, the correct
aggregation of data in the quantitative information;
• we visited Assicurazioni Generali S.p.A., Generali Italia S.p.A., Generali Deutschland AG,
Generali Vie S.A., Generali Versicherung AG, Generali España S.A., de Seguros y Reaseguros,
Generali Personenversicherung AG, Generali Česká Pojišťovna s.a. and Generali China Life
Insurance Co. Ltd., which we have selected on the basis of their business, contribution to the key
performance indicators at consolidated level and location, to meet their management and obtain
documentary evidence supporting the correct application of the procedures and methods used to
calculate the indicators.
185
3
Generali Group
Independent auditors’ report
31 December 2023
3. Comparing the financial disclosures presented in the NFS with those included in the Group’s
consolidated financial statements.
4. Gaining an understanding of the following:
• the Group’s business management and organisational model, with reference to the management
of the aspects set out in article 3 of the Decree;
• the Group’s policies in connection with the aspects set out in article 3 of the Decree, the
achieved results and the related key performance indicators;
• the main risks generated or borne in connection with the aspects set out in article 3 of the
Decree.
Moreover, we checked the above against the disclosures presented in the NFS and carried out the
procedures described in point 5.a).
5. Understanding the processes underlying the generation, recording and management of the
significant qualitative and quantitative information disclosed in the NFS.
Specifically, we held interviews and discussions with the Parent’s management personnel and
personnel of Assicurazioni Generali S.p.A., Generali Italia S.p.A., Generali Deutschland AG, Generali
Vie S.A., Generali Versicherung AG, Generali España S.A., de Seguros y Reaseguros, Generali
Personenversicherung AG, Generali Česká Pojišťovna a.s. and Generali China Life Insurance Co.
Ltd.. We also performed selected procedures on documentation to gather information on the
processes and procedures used to gather, combine, process and transmit non-financial data and
information to the office that prepares the NFS.
Furthermore, with respect to significant information, considering the Group’s business and
characteristics:
• at Group level,
a) we held interviews and obtained supporting documentation to check the qualitative
information presented in the NFS and, specifically, the business model, the policies applied
and main risks for consistency with available evidence,
b) we carried out analytical and limited procedures to check, on a sample basis, the correct
aggregation of data in the quantitative information;
• we visited Assicurazioni Generali S.p.A., Generali Italia S.p.A., Generali Deutschland AG,
Generali Vie S.A., Generali Versicherung AG, Generali España S.A., de Seguros y Reaseguros,
Generali Personenversicherung AG, Generali Česká Pojišťovna s.a. and Generali China Life
Insurance Co. Ltd., which we have selected on the basis of their business, contribution to the key
performance indicators at consolidated level and location, to meet their management and obtain
documentary evidence supporting the correct application of the procedures and methods used to
calculate the indicators.
4
Generali Group
Independent auditors’ report
31 December 2023
Conclusion
Based on the procedures performed, nothing has come to our attention that causes us to believe that the
2023 consolidated non-financial statement of the Generali Group has not been prepared, in all material
respects, in accordance with the requirements of articles 3 and 4 of the Decree and the GRI Standards -
Referenced option, as well as the performance indicators.
Our conclusion does not extend to the information set out in the information set out in the “European
Taxonomy” sections from page 57 to page 65 and from page 68 to page 71 of the NFS required by article
8 of Regulation (EU) 852 of 18 June 2020.
Trieste, 2 April 2024
KPMG S.p.A.
(signed on the original)
Andrea Rosignoli
Director of Audit
Annual Integrated Report and Consolidated Financial Statements 2023
188
Generali Group
NOTES TO THE MANAGEMENT REPORT
The Annual Integrated Report and Consolidated Financial Statements 2023 is drafted in compliance with currently effective regulations
and it applies the IAS/IFRS international accounting standards as well as the International <IR> Framework.
Notes, Basis of presentation and accounting principles for further details
The Group used the option provided for under art. 70, paragraph 8, and art. 71, paragraph 1-bis of Issuers’ Regulation to waive the
obligation to publish the information documents provided for in relation to significant mergers, de-mergers or capital increases by
contribution of assets, acquisitions and disposals.
The Report is drawn up in euro, i.e. the functional currency used by the entity that prepares the Annual Integrated Report and
Consolidated Financial Statements. The amounts are shown in million and rounded to the first decimal, unless otherwise reported.
Therefore, the sum of each rounded amounts may sometimes differ from the rounded total.
Information broken down by geographical area reported in this document reflects the Group’s managerial structure that is made up
of:
• Italy;
• France;
• DACH: Germany, Austria and Switzerland;
• International: Central Eastern Europe (CEE), Mediterranean & Latin America and Asia;
• Asset & Wealth Management;
• Group holdings and other companies, which consists of the Parent Company’s management and coordination activities, including
Group reinsurance, as well as Europ Assistance, Global Business Activities and other financial holding companies and suppliers of
international services not included in the previous geographical areas.
At 31 December 2023, the consolidation area totalled 529 companies (542 at 31 December 2022), of which 467 subsidiaries
consolidated line by line and 62 associated companies valued at equity.
Transactions with related parties
The related information is available in the chapter Transactions with related parties in the Notes.
Appendices to the Management Report
189
1. The Report includes links to web pages that might not exist in the future.
WE, GENERALI
Group’s highlights
►
Performance
2023 and 2024 key facts
►
Organisational overview and external environment
The value creation process
►
Business model
Challenges and opportunities of the market context
►
Risks and opportunities
Our strategy
►
Strategy
Performance
Risks and opportunities
Our rules for running business with integrity
►
Organisational overview and external environment
Risks and opportunities
Our governance and remuneration policy
►
Governance
OUR FINANCIAL PERFORMANCE
►
Performancea
OUTLOOK
►
Outlook
Group Annual Integrated Report Content Elements of the International <IR> Framework
The Report is drafted also applying the Guiding Principles of the Framework.
The strategy, together with our value creation process, remains at the heart of our story. The strategic focus and future orientation
principle is, in fact, applied in the whole document.
The key forms of connectivity of information used by Generali include the connectivity between qualitative and quantitative
information, financial and non-financial information, present and future information, that is coherent with the information included in
other communication tools in accordance with the Core & More reporting approach. Other elements that improve the connectivity of
information and the overall usefulness of the Report are the cross-referencing
1
, the graphic component and a glossary at the end of
this document to use in case of insurance sector’s terminology.
Generali maintains stakeholder relationships in order to understand and meet their needs,
especially their information and dialogue needs.
We regularly engage with investors, analysts and rating agencies by meeting them every
quarter following our results’ presentation as well as on specific occasions, thus sharing
the reporting required. We organise roadshows and participate in sector conferences.
Some of the main annual recurring occasions for interaction between the financial
community and the Company’s top management are the Shareholders’ Meeting, events
dedicated to investors, as well as the main presentations of the financial results. During
2023, we came into contact with over 600 people based in the main financial centres of
Europe and North America, with individual and small group meetings. We successfully
continued our dialogue with relevant stakeholders both via virtual platforms and during
physical events.
We regularly interact with national and European regulators and supervisors, as well as with European and international institutions to
maintain good relationships and share authoritative and updated information in order to properly interpret and apply new regulations.
We are committed to transparency in our relations with European public authorities: in 2014 the Group joined the Transparency
Register, a joint initiative of the European Parliament and the European Commission with the aim of informing the public on how
Generali represents its interests.
We also offer our skills and expertise by contributing to public consultations to share our point of view with regard to new laws
and regulations in the sector, by providing, in view of the Group’s direct experience, concrete indications in order to safeguard the
specificities of the Group and the insurance industry.
To this purpose, we collaborate with several trade organizations and associations in the sector. Our active presence in these
organizations allows us also to expand our knowledge of the different regulations and their potential impacts, and influence the
industry’s thinking in line with Generali’s business and commercial priorities.
We also engage clients, agents and employees of the Group with a view to continuous improvement.
Our strategy, p. 44
www.generali.com/our-responsibilities/responsible-business/stakeholder-engagement
for different methods of dialogue with stakeholders
Clients
Agents and
distributors
Employees
Financial
community
Contractual
partners
Community
Clienti
Agenti
e distributori
Dipendenti
Comunità
finanziaria
Partner
contrattuali
Comunità
A
M
B
I
E
N
T
E
A
M
B
I
E
N
T
E
Report and International <IR> Framework
The Report is drafted in line with the International <IR> Framework: each chapter of the Report meets one or more Content Elements
envisaged by the Framework.
Annual Integrated Report and Consolidated Financial Statements 2023
190
Generali Group
The materiality approach is presented in the Consolidated Non-Financial Statement..
Consolidated Non-Financial Statement, p. 175
The conciseness principle is met through the issue of the Group Annual Integrated Report. The diagram below shows the shift
from the Group Annual Integrated Report, drafted in accordance with the materiality principle, to the Annual Integrated Report and
Consolidated Financial Statements, compliant with regulations.
Reliability and completeness are supported by a structured information system, built for the drafting of the Report and processing
financial and non-financial information while ensuring their homogeneity and reliability. They are also supported by a specific integrated
data quality framework, which is based on general principles adopted by all employees, on a dedicated system of governance (i.e.
roles and responsibilities) over the data governance and on a monitoring system at Group level. The performance indicators are
those used in the business management in line with the strategic plan. They refer to the whole Group, unless otherwise reported in
the chapters dedicated to them.
Consolidated Non-Financial Statement, p. 175
The integrated data quality control framework covers the consistency and comparability principle and the Report includes, therefore,
information that is consistent with the previous year, unless otherwise reported.
Report and Consolidated Non-Financial Statement
The Report adopts for the disclosure of non-financial matters envisaged by leg. decree 2016/254 the GRI Standards 2021 with
reference to selected GRI Standards as well as some indicators of the GRI G4 Financial Services Sector Disclosures.
Group Annual
Integrated Report
Additional management
information on segments
Risk Report
Further financial statements
and Notes
Annual Integrated Report
and Consolidated Financial
Statements
Management Report
GROUP ANNUAL
INTEGRATED REPORT 2023
SUSTAINABILITY HEROES OF THE YEAR
192
nd
year
ANNUAL INTEGRATED
REPORT AND CONSOLIDATED
FINANCIAL STATEMENTS 2023
SUSTAINABILITY HEROES OF THE YEAR
192
nd
year
NFS
GRI STANDARD DISCLOSURE LOCATION
GRI 2: General Disclosures 2021
2-6 Activities, value chain and other business relationships (b) p. 42
2-29 Approach to stakeholder engagement p. 42, 75, 188
GRI 205: Anti-corruption 2016
205-2 Communication and training about anti-corruption policies and procedures (e, aggregated data) p. 88
GRI 302: Energy 2016
302-1 Energy consumption within the organization (c,f) p. 82
GRI 305: Emissions 2016
305-1 Direct (Scope 1) GHG emissions (a,b,d,g) p. 81-82
305-2 Energy indirect (Scope 2) GHG emissions (a,b,c,d,g) p. 81-82
305-3 Other indirect (Scope 3) GHG emissions (a,e,g) p. 53-55, 81-82
305-4 GHG emissions intensity (a,b) p. 53-54
305-5 Reduction of GHG emissions (a,c,d,e) p. 53-55, 81-82
Statement of use
The Generali Group has reported the information cited in this GRI content index for the period 1 January 2023 - 31 December 2023
with reference to the GRI Standards.
GRI 1 used GRI 1: Foundation 2021
GRI Sector Standard used GRI G4 Financial Services Sector Disclosures
Appendices to the Management Report
191
GRI 404: Training and Education 2016
404-1 Average hours of training per year per employee (a, aggregated data) p. 79-80
404-2 Programs for upgrading employee skills and transition assistance programs (a) p. 80
GRI 413: Local Communities 2016
Topic management disclosures p. 83-85
GRI G4 Financial Services Sector Disclosures
FS7 Monetary value of products and services designed to deliver a specific social benefit for each business line broken
down by purpose
p. 66-67
FS8 Monetary value of products and services designed to deliver a specific environmental benefit for each business
line broken down by purpose
p. 66-67
FS11 Percentage of assets subject to positive and negative environmental or social screening p. 45-46, 57
FS12 Voting policy(ies) applied to environmental or social issues for shares over which the reporting organization holds
the right to vote shares or advises on voting
p. 49-50
We use key performance indicators in accordance with a proprietary disclosure methodology for material and relevant mega trends.
They are not envisaged by the standard adopted but they are representative of our business and, in line with our strategy, they are
monitored in the planning and control processes.
NFS
MATERIAL MEGA TRENDS AND
THOSE OF CONSIDERABLE
RELEVANCE
INDICATORS IN ACCORDANCE WITH
A PROPRIETARY METHODOLOGY
INDICATORS COVERED BY GRI STANDARDS
Climate change
GRE portfolio aligned to the CRREM pathway
GHG emissions of GRE portfolio
GHG intensity of GRE portfolio
Insurance exposure to fossil fuel sector
GHG emissions from Group operations [305-1 (a,b,d,g), 305-2 (a,b,c,d,g), 305-3 (a,e,g) and 305-5 (a,c,d,e)]
Carbon footprint of investment portfolio (EVIC) [305-3 (a,e,g), 305-4 (a,b) and 305-5 (a,c,d,e)]
New green and sustainable investments [FS11]
Premiums from insurance solutions with ESG components - environmental sphere [FS8]
Ageing and new welfare - Premiums from insurance solutions with ESG components - social sphere [FS7]
Pandemics and extreme events Fenice 190 -
Digital revolution and cybersecurity Investments in Digital & Technology -
Biodiversity degradation - Direct investments by the Group’s insurance companies subject to negative screening approach [FS11]
Resource scarcity and sharing
economy
- Electricity purchased from renewable sources [302-1 (c,f)]
Change in healthcare - Premiums from insurance solutions with ESG components - social sphere [FS7]
Polarization of lifestyles - Premiums from insurance solutions with ESG components - social sphere [FS7]
Transparency and purpose-driven
businesses
% multi-holding customers
Customers
Training investment
Direct investments by the Group’s insurance companies subject to negative screening approach [FS11]
Mandates managed ex art. 8/9 SFDR [FS11]
Investments managed ex art. 8/9 SFDR [FS11]
Shareholders’ Meetings attended [FS12]
Resolutions voted [FS12]
Against votes [FS12]
Relationship NPS [2-29]
Agents [2-6 (b)]
Upskilled employees [404-2 (a)]
Engagement rate [2-29]
Average training hours per capita [404-1 (a, aggregated data)]
Employees who completed the training course on the Code of Conduct [205-2 (e, aggregated data)]
Increasing inequalities
Active countries for The Human Safety Net
Active partners for The Human Safety Net
-
Women and minorities inclusion Women in strategic positions
Women
Equal pay gap
Gender pay gap
Accessibility gap to variable remuneration
between males and females
-
Changing nature of work
Entities working hybrid
Our people
-
Regulatory complexity
Whistleblowing reports on the Group Code of
Conduct
Employees who completed the training course on the Code of Conduct [205-2 (e, aggregated data)]
Glossary available at the end of this document
The reporting process and methodologies to calculate all indicators are included in a specific manual (Reporting Guidebook), shared
at both the Group Head Office and each contributing company level.
Consolidated Non-Financial Statement, p. 175
Annual Integrated Report and Consolidated Financial Statements 2023
192
Generali Group
PILLARS RECOMMENDATIONS RECOMMENDED DISCLOSURES LOCATION
Governance
Disclose the organization’s
governance around climate-related
risks and opportunities
a) Describe the Board’s oversight of climate-related risks and opportunities. p. 95
b) Describe management’s role in assessing and managing climate-related risks and
opportunities.
p. 95
Strategy
Disclose the actual and potential
impacts of climate-related risks and
opportunities on the organization’s
businesses, strategy, and financial
planning where such information is
material.
a) Describe the climate-related risks and opportunities the organization has identified over the
short, medium, and long term.
p. 24-25
b) Describe the impact of climate-related risks and opportunities on the organization’s
businesses, strategy, and financial planning.
p. 24-25, 28-32
c) Describe the resilience of the organization’s strategy, taking into consideration different
climate-related scenarios, including a 2°C or lower scenario.
p. 24-28
Risk Management
Disclose how the organization
identifies, assesses, and manages
climate-related risks.
a) Describe the organization’s processes for identifying and assessing climate-related risks. p. 26-32
b) Describe the organization’s processes for managing climate-related risks. p. 24-32
c) Describe how processes for identifying, assessing, and managing climate-related risks are
integrated into the organization’s overall risk management.
p. 24-32
Metrics and targets
Disclose the metrics and targets
used to assess and manage
relevant climate-related risks and
opportunities where such information
is material.
a) Disclose the metrics used by the organization to assess climate-related risks and opportunities
in line with its strategy and risk management process.
p. 26-28
b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and
the related risks.
p. 44-57, 66-67,
72, 81-82
c) Describe the targets used by the organization to manage climate-related risks and
opportunities and performance against targets.
p. 44-57, 66-67,
72, 81-82
Mapping of the Climate-related Financial Disclosure
against the TCFD framework
The Report is in line with the recommendations of the Task force on Climate-related Financial Disclosures (TCFD).
NFS
Appendices to the Management Report
193
METHODOLOGICAL NOTES ON ALTERNATIVE
PERFORMANCE MEASURES
In order to help the assessment of the quality and sustainability of the net result of the Generali Group in the various business
segments and territorial areas, the Management Report includes the following alternative performance measures.
Gross written premiums
Gross written premiums in the Management Report differ from insurance income generated from insurance contracts issued shown
in the income statement. To better present the insurance turnover of the Group they include the inflows coming from both insurance
contracts and investment contracts.
Operating result
The operating result cannot replace earnings before taxes calculated in accordance with IAS/IFRS. In addition, it should be read with
the financial information and related notes on the accounts which are included in the audited financial statements.
The operating result is drawn up by reclassifying items of earnings before taxes for each segment on the basis of the management
characteristics of each segment and taking into consideration the recurring holding expenses.
Specifically, the operating result represents earnings before taxes, gross of interest expense on financial debt, non-operating
investment result and non-operating income and expenses, including non-operating holding expenses.
In the Life segment, all profit and loss accounts are considered as operating items, except for the following which are represented
in the non-operating result:
• net gains from investments valued at fair value through profit and loss, net gains on currencies, allocation and reversal to expected
credit losses and other net impairments only related to investments not backing portfolios with direct profit participation, and the
free assets;
• net other non-operating expenses that mainly include company restructuring costs, amortization of intangible assets generated by
business combinations and bancassurance agreements and net other non-recurring expenses.
Furthermore, where a new fiscal law or other non-recurring fiscal impacts materially affects the operating result, thanks to the
policyholders’ profit participation mechanisms, the estimated amount of non-recurring effects mentioned above is accounted for in
the operating result.
In the Property & Casualty segment, all profit and loss accounts are considered as operating items, except for the following which
are represented in the non-operating result:
• net gains from investments valued at fair value through profit and loss, net gains on currencies, net realized gains, allocation and
reversal to expected credit losses and other net impairments from the other investments;
• net other non-operating expenses that mainly include company restructuring costs, amortization of intangible assets generated by
business combinations and bancassurance agreements and net other non-recurring expenses..
In the Asset & Wealth Management segment, all profit and loss accounts are considered as operating items, except for the following
which are represented in the non-operating result:
• net gains from investments valued at fair value through profit and loss, net gains on currencies, net realized gains, allocation and
reversal to expected credit losses and other net impairments from the other investments;
• net other non-operating expenses that mainly include company restructuring costs, amortization of intangible assets generated by
business combinations and bancassurance agreements and net other non-recurring expenses.
In the Holding and other businesses segment, all profit and loss accounts are considered as operating items, except for the following
which are represented in the non-operating result:
• net gains from investments valued at fair value through profit and loss, net gains on currencies, net realized gains, allocation and
reversal to expected credit losses and other net impairments from the other investments;
• net other non-operating expenses that mainly include company restructuring costs, amortization of intangible assets generated by
business combinations and bancassurance agreements and net other non-recurring expenses.
As for holding expenses, general expenses incurred for management and coordination by the Parent Company and territorial sub-
holdings are considered as operating items. Non-operating holding expenses include:
• interest expenses on financial debt;
• company restructuring costs and other non-recurring expenses incurred for management and coordination activities;
• costs arising from the assignment of stock options and stock grants by the Group.
Annual Integrated Report and Consolidated Financial Statements 2023
194
Generali Group
The operating result and non-operating result of the Group are equivalent to the sum of the operating result and the non-operating result
of the abovementioned segments and related consolidation adjustments.
In accordance with the approach described above, the operating result in the main countries where the Group operates is reported
for the Life and Property & Casualty segments and the consolidated figures. In order to provide a management view of the operating
result by geographical area, the disclosure by business segment and geographical area allows measurement of the result of each
geographical area from a country viewpoint instead of as a contribution to the Group’s results.
Within the context of the Life and Property & Casualty operating result of each country, reinsurance operations between Group companies
in different countries are considered as transactions concluded with external reinsurers. This representation of the Life and Property
& Casualty operating result by geographical area makes this performance indicator more consistent with both the risk management
policies implemented by each company and the other indicators measuring the technical profitability of the Group’s companies..
The main reclassifications made in the calculation of the operating result with respect to the corresponding items in the income
statement are:
• income related from the release of the liability for incurred claims acquired in a business combination or in a portfolio transfer are
deducted from the insurance expenses;
• financial investments and properties management expenses not linked to contracts with direct profit participation are reclassified
from acquisition and administration costs to net operating income from financial instruments, more specifically to other expenses
from financial instruments and land and buildings (investment properties);
• net financial expenses related to insurance contracts linked to the change in underlying items different from investments are
reclassified in the net insurance service result;
• income and expenses related to real estate development activities are classified under other non-operating income and expenses,
in accordance with the management model adopted that provides for sale at completion;
• gains and losses on foreign currencies, in Life segment, if related to portfolios with direct profit participation are reclassified in net
operating income from financial instruments at fair value through profit or loss, while, in all the other cases, they are classified as
net non-operating income from financial instruments at fair value through profit or loss;
• in case of new fiscal law or other non-recurring fiscal which impacts materially affects the operating result, thanks to the
policyholders’ profit participation mechanisms, the estimated amount of non-recurring effects mentioned above is accounted for
in the operating result and excluded from taxes.
From operating result to result of the period
Notes
Consolidated operating result
Operating insurance service result
It includes 5. Insurance service result and technical profit sharing (included in 12. Net finance result), net fee and commissions
(included in 18. Other income/charges), depreciation of land and properties (from 16. Net impairment on tangible assets), other
administration costs, operating holding expenses and other income/expenses classified as operating according to the Group
methodology (in particular, as for holding expenses, general expenses incurred for management and coordination by the Parent
Company and territorial sub-holdings are considered as operating items).
Operating investment result
It includes 12. Net finance result (excluded the technical profit sharing previously mentioned), where - according to the Group
methodology - all profit and loss accounts are considered as operating items, except for the ones represented in the non-operating
result.
Consolidated non-operating result
Non-operating investment result
It includes 12. Net finance result items classified as non-operating according to the Group methodology: net gains from investments
valued at fair value through profit and loss, net gains on currencies, net realized gains (except for Life segment), allocation and reversal
to expected credit losses and other net impairments only related to investments not backing portfolios with direct profit participation,
and the free assets..
Net other non-operating expenses
It includes 15. Net provisions for risks and charges and other income/expenses classified as non-operating items according to the
Group methodology: net other non-operating expenses that mainly include company restructuring costs, amortization of intangible
assets generated by business combinations and bancassurance agreements and net other non-recurring expenses or exceptional
items included in 5. Insurance service result.
Non-operating holding expenses
Non-recurring unallocated holding expenses included in 18. Other income/charges and interest expenses on financial debt included in
12. Finance result.
Earnings before taxes
Income taxes
It includes the items of 20. Taxes, net of adjustments for operating taxes and for non-recurring taxes that significantly affect the
operating result of the countries where the policyholders’ profit sharing is determined also by taking into account the taxes for the
period (these adjustments are excluded from income taxes and included in net other operating expenses).
Earnings after taxes
Operating result by margins
The operating result of the Life and Property & Casualty segments are reported also in accordance with a margin-based view which
shows the operating trends of the changes occurred in each segment performance more clearly.
The Life operating result is made up of the operating insurance service result, which includes the release of contractual service
margin, risk adjustment release, losses on onerous contracts, experience variances and other operating income and expenses, and
Appendices to the Management Report
195
of the operating investment result which includes income and expenses from investments and financial income and expenses related
to insurance contracts. The Property & Casualty operating result is made up of the operating insurance service result which includes
income, claims, expenses and other charges from insurance services, and of the operating investment result which includes income
and expenses from investments and financial income and expenses related to insurance contracts.
Adjusted net result
The adjusted net result is obtained deduction from the net result the following items:
• volatility effects deriving from the valuation at fair value through profit and loss of investments not backing portfolios with direct
profit participation and the free assets;
• profit and loss impact deriving from the application of IAS 29 - Financial Reporting in Hyperinflationary Economies;
• amortization of intangible assets related to M&A, if material;
• impact of gains and losses from business acquisitions and disposals, including possible restructuring costs incurred during the
first year from the acquisition, if material.
Return on investments
The indicators for the return on investments are:
• net current return calculated as the ratio of:
- interest and other income, including income from financial instruments at fair value through profit and loss (excluding income
from financial instruments related to linked contracts) net of depreciation on real estate investments; to
- average investments (calculated on book value);
• harvesting rate calculated as the ratio of:
- net realized gains, net impairment losses and realized and unrealized gains and losses from financial instruments at fair value
through profit and loss (excluding those from financial instruments related to linked contracts); to
- average investments (calculated on book value).
The profit and loss return is the sum of the net current return and the harvesting rate net of investment management expenses as
well as gains and losses on foreign currencies.
The average investments (calculated on book value) include: land and buildings (investment properties), investments in subsidiaries,
associated companies and joint ventures, loans and receivables, cash and cash equivalents, financial assets at fair value through
other comprehensive income, financial assets at fair value through profit or loss excluding those related to linked contracts. Total
investments are adjusted for both derivative instruments classified as financial liabilities at fair value through profit of loss and REPOs
classified as other financial liabilities. The average is calculated on the average investment base of each quarter of the reporting
period.
The indicators for the return on investments described above are presented for the Group and for Life and Property & Casualty
segments.
Consolidated investments
In order to provide a presentation of investments that is consistent with the calculation of the return on investments, the Group’s
investments in the Management Report differ from those reported in the balance sheet items since:
• Investment Fund Units (IFU) are split by nature in equity, bond and investment property instruments as well as cash equivalents;
• derivatives are presented on a net basis, thus including derivative liabilities. Moreover, hedging derivatives are classified in the
respective asset class hedged;
• reverse REPOs (Repurchase Agreements) are reclassified from other fixed income instruments to cash and cash equivalents in
accordance with their nature of short-term liquidity commitments; and
• REPOs classified as liabilities are presented in cash and cash equivalents.
• specific items accounted within receivables are included.
Investments by segment are presented in accordance with the methods described in the chapter Segment reporting in the Notes.
CONSOLIDATED
FINANCIAL
STATEMENTS
CONSOLIDATED FINANCIAL STATEMENTS
Balance sheet
Income statement
Statement of comprehensive income
Statement of changes in equity
Statement of cash flows (indirect method)
NOTES
Basis of presentation and accounting principles
Segment reporting
Information on consolidation area and related operations
1 Consolidation area
2. Disclosures on interests in other entities
3. Non-current assets or disposal group classified as held for sale
4. Investments in subsidiaries, associated companies and joint ventures
5. Goodwill and other intangible assets
6. New entities acquisition
7. Transactions with related parties
Investments
8. Financial assets valued at amortised cost
9. Financial assets at fair value through other comprehensive income
10. Financial assets at fair value through profit or loss
11. Investment properties
12. Cash and cash equivalents
13. Financial liabilities at fair value through profit or loss
14. Financial liabilities at amortised cost
15. Investments income and expenses
16. Expected credit losses
17. Details on investments
Insurance and investment contracts
18. Insurance contracts
19. Reinsurance contracts
20. Income and expenses related to insurance contract issued and reinsurance contracts held
21. Detailed information related to insurance contracts issued and reinsurance contracts held
Shareholders’ equity and share
22. Shareholders’ equity
23. Details of the other components of the comprehensive income statement
24. Earning per share
25. Reconciliation statement of the result of the period and shareholders’ equity of the Group and the Parent Company
Other balance sheet items
26. Tangible assets
27. Other financial assets
28. Other assets
29. Other provisions
30. Payables
31. Other liabilities
201
202
204
205
206
208
211
212
248
254
254
254
258
259
259
263
266
268
270
272
274
274
275
276
276
279
284
284
292
292
296
299
303
332
332
334
335
336
337
337
339
339
339
340
340
198
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
INDEX
341
341
341
342
345
346
347
347
350
351
351
351
354
364
365
365
365
368
368
368
371
Other notes to the income statement
32. Other income statement items
33. Net commissions
34. Income taxes
Fair value measurement
35. Fair value hierarchy
36. Transfers of financial instruments at fair value between Level 1 and Level 2
37. Additional information on Level 3
38. Information on fair value hierarchy of assets and liabilities not measured at fair value
Additional information
39. Information about employees
40. Provisions for defined benefit plans
41. Share-based compensation plans
42. Contingent liabilities, commitments, guarantees, pledged assets and collateral
43. Significant non-recurring events and transactions
44. Significant events after 31 December 2023
45. Leasing
46. Other information
47. Audit and other service fees for the fiscal year
48. Information about climate change
APPENDICES TO THE NOTES
199
Consolidated Financial Statements
200
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Consolidated financial
statements
BALANCE SHEET
1
BALANCE SHEET - ACTIVITIES
| Note | Items of assets | 31/12/2023 | 31/12/2022 | |
| 5 | 1. | INTANGIBLE ASSETS | ||
| 5 | of which: goodwill | |||
| 26 | 2. | TANGIBLE ASSETS | ||
| 18, 19 | 3. | INSURANCE ASSETS | ||
| 3.1 | Insurance contracts that areassets | |||
| 3.2 | Reinsurance contracts that areassets | |||
| 4. | INVESTMENTS | |||
| 11 | 4.1 | Land and buildings (investment properties) | ||
| 4 | 4.2 | Investments in subsidiaries, associated companies and joint ventures | ||
| 8 | 4.3 | Financial assets at amortised cost | ||
| 9 | 4.4 | Financial assets at fair value through other comprehensive income | ||
| 10 | 4.5 | Financial assets at fair value through profit or loss | ||
| 10 | a) financial assets held for trading | |||
| 10 | b) financial assets designated at fair value | |||
| 10 | c) financial assets mandatorily at fair value through profit or loss | |||
| 27 | 5. | OTHER FINANCIAL ASSETS | ||
| 28 | 6. | OTHER ASSETS | ||
| 3 | 6.1 | Non-current assets or disposal groups classified as held for sale | ||
| 34 | 6.2 | Tax receivables | ||
| a) current | ||||
| b) deferred | ||||
| 6.3 | Other assets | |||
| 12 | 7. | CASH AND CASH EQUIVALENTS | ||
| TOTAL ASSETS |
202
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
1. In compliance with IFRS 8, it should be noted that, following the changes introduced by the application of the new IFRS 9 and IFRS 17, comparative data in the financial statements have been
appropriately restated.
BALANCE SHEET - EQUITY AND LIABILITIES
| Note | Items of shareholders’ equity and liabilities | 31/12/2023 | 31/12/2022 | |
| 22 | 1. | SHAREHOLDERS' EQUITY | ||
| of which: attributable to the Group | ||||
| of which: attributable to minority interests | ||||
| 1.1 | Share capital | |||
| 1.2 | Other equity instruments | |||
| 1.3 | Capital reserves | |||
| 1.4 | Revenue reserves and other reserves | |||
| 1.5 | (Own shares) | - | - | |
| 1.6 | Valuation reserves | - | - | |
| 1.7 | Shareholders' equity attributable to minority interests | |||
| 1.8 | Result of the period attributable to the Group | |||
| 1.9 | Result of the period attributable to minority interests | |||
| 2. | OTHER PROVISIONS | |||
| 3. | INSURANCE PROVISIONS | |||
| 18 | 3.1 | Insurance contracts that areliabilities | ||
| 19 | 3.2 | Reinsurance contracts that areliabilities | ||
| 4. | FINANCIAL LIABILITIES | |||
| 13 | 4.1 | Financial liabilities at fair value through profit or loss | ||
| 13 | a) financial liabilities held for trading | |||
| 13 | b) financial liabilities designated at fair value | |||
| 14 | 4.2 | Financial liabilities at amortised cost | ||
| 30 | 5. | PAYABLES | ||
| 31 | 6. | OTHER LIABILITIES | ||
| 3 | 6.1 | Liabilities associated with non-current assets and disposal groups classified as held for sale | ||
| 34 | 6.2 | Tax payables | ||
| a) current | ||||
| b) deferred | ||||
| 6.3 | Other liabilities | |||
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES |
203
Consolidated Financial Statements
INCOME STATEMENT
2
| Note | Items | 31/12/2023 | 31/12/2022 | |
| 20 | 1. | Insurance revenue from insurance contracts issued | ||
| 20 | 2. | Insurance service expenses from insurance contracts issued | - | - |
| 20 | 3. | Insurance revenue from reinsurance contracts held | ||
| 20 | 4. | Insurance service expenses from reinsurance contracts held | - | - |
| 5. | Insurance service result | |||
| 15 | 6. | Income/expenses from financial assets and liabilities at fair value through profit or loss | - | |
| 15 | 7. | Income/expenses from investments in subsidiaries, associated companies and joint ventures | ||
| 15 | 8. | Income/expenses from other financial assets and liabilities and investment properties | ||
| 15 | 8.1 | - Interest income calculated using the effective Interest rate method | ||
| 15 | 8.2 | - Interest expenses | - | - |
| 15 | 8.3 | - Other income/expenses | ||
| 15 | 8.4 | - Realised gains/losses | - | |
| 15 | 8.5 | - Unrealised gains/losses | - | - |
| 16 | of which: linked to credit impaired financial assets | - | - | |
| 9. | Result of investments | - | ||
| 10. | Net finance income/expenses related to insurance contracts issued | - | ||
| 11. | Net finance income/expenses related to reinsurance contracts held | - | ||
| 12. | Net finance result | |||
| 32 | 13. | Other income/expenses | ||
| 32 | 14. | Acquisition and administration costs: | - | - |
| 14.1 | - Investment management expenses | - | - | |
| 14.2 | - Other administrative costs | - | - | |
| 32 | 15. | Net provisions for risks and charges | - | - |
| 32 | 16. | Net impairment and depreciation of tangible assets | - | - |
| 32 | 17. | Net impairment and amortisation of intangible assets | - | - |
| of which: impairment on goodwill | - | - | ||
| 32 | 18. | Other income/charges | - | - |
| 19. | Profit (Loss) before tax | |||
| 34 | 20. | Income tax | - | - |
| 21. | Profit (Loss) after tax | |||
| 22. | Profit (Loss) from discontinued operations | - | ||
| 23. | Consolidated result of the period | |||
| of which attributable to the Group | ||||
| of which attributable to minority interests |
204
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
2. In compliance with IFRS 8, it should be noted that, following the changes introduced by the application of the new IFRS 9 and IFRS 17, comparative data in the financial statements have been
appropriately restated.
STATEMENT OF COMPREHENSIVE INCOME
3
| Items | 31/12/2023 | 31/12/2022 | |
| 1. | Profit (Loss) for the period | ||
| 2. | Other items, net of taxes, that may not be reclassified to profit and loss in future periods | - | |
| 2.1 | Share of valuation reserves of associated companies valued at equity method | ||
| 2.2 | Reserve for revaluation model of intangible assets | ||
| 2.3 | Reserve for revaluation model of tangible assets | ||
| 2.4 | Net finance expenses/income from insurance contracts issued | ||
| 2.5 | Result of discontinued operations | - | |
| 2.6 | Actuarial gains or losses arising from defined benefit plans | - | |
| 2.7 | Net gains and losses on equity instruments designated at fair value through other comprehensive income | - | |
| 2.8 | Changes in own credit risk on financial liabilities designated at fair value through profit or loss | - | |
| 2.9 | Other items | ||
| 3. | Other items, net of taxes,that may be reclassified to profit or loss in future periods | - | |
| 3.1 | Foreign currency translation differences | - | |
3.2 | Net gains and losses on financial assets (other than equity instruments) at fair value through other comprehensive income | - | |
| 3.3 | Net gains and losses on cash flows hedging derivatives | - | |
| 3.4 | Net gains and losses on hedge of a net investment in foreign operations | - | - |
| 3.5 | Share of valuation reserves of associated companies valued at equity method | - | |
| 3.6 | Net finance expenses/income from insurance contracts issued | - | |
| 3.7 | Net finance expenses/income from reinsurance contracts held | - | |
| 3.8 | Result of discontinued operations | - | |
| 3.9 | Other items | ||
| 4. | TOTAL OTHER COMPREHENSIVE INCOME (EXPENSES) | - | |
| 5. | TOTAL COMPREHENSIVE INCOME (EXPENSES) | ||
| 5.1 | of which: attributable to the Group | ||
| 5.2 | of which: attributable to minority interests |
205
Consolidated Financial Statements
3. In compliance with IFRS 8, it should be noted that, following the changes introduced by the application of the new IFRS 9 and IFRS 17, comparative data in the financial statements have been
appropriately restated..
STATEMENT OF CHANGES IN EQUITY
4
206
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Share capital Other equity
instruments
Capital
reserves
Revenue
reserves and
other reserves
Own shares Valuation reserves Profit (Loss) for the period Shareholders’ equity
attributable to the Group
Shareholders’ equity
attributable to minority interests
Shareholders’ equity
Amounts at 1/1/2022 1,581 0 7,107 20,106 -82 -100 0 28,612 2,480 31,091
of which: Change in opening balances 0 0 0 4,967 0 -5,663 0 -696 -88 -784
Result of the period allocation 2021 0 0
Reserves 0 0 0 0 0 0 0 0 0 0
Dividends and other destination 0 0 0 -1,691 0 0 0 -1,691 -219 -1,910
Changes in amount 0 0
New issuance shares 6 0 0 0 0 0 0 6 0 6
Purchase own shares 0 0 0 0 -500 0 0 -500 0 -500
Change in owhership interest 0 0 0 60 0 0 0 60 -215 -155
Other Comprehensive Income 0 0 0 0 0 -2,060 0 -2,060 -165 -2,225
Other changes -0 0 0 -11 -0 0 2,235 2,223 443 2,666
Amount at 31/12/2022 1,587 0 7,107 18,464 -583 -2,160 2,235 26,650 2,323 28,973
Change in opening balances 0 0 0 0 0 0 0 0 0 0
Result of the period allocation 2022 0 0
Reserves 0 0 0 2,235 0 0 0 2,235 0 2,235
Dividends and other destination 0 0 0 -1,790 0 0 0 -1,790 -238 -2,028
Changes in amount 0 0
New issuance shares 6 0 0 0 0 0 0 6 0 6
Purchase own shares 0 0 0 0 -191 0 0 -191 0 -191
Change in owhership interest 0 0 0 74 0 0 0 74 39 113
Other Comprehensive Income 0 0 0 0 0 296 0 296 -133 163
Other changes 0 0 -500 176 500 0 1,512 1,688 325 2,013
Amount at 31/12/2023 1,592 0 6,607 19,159 -273 -1,863 3,747 28,968 2,316 31,284
4. In compliance with IFRS 8, it should be noted that, following the changes introduced by the application of the new IFRS 9 and IFRS 17, comparative data in the financial statements have been
appropriately restated.
207
Consolidated Financial Statements
Share capital Other equity
instruments
Capital
reserves
Revenue
reserves and
other reserves
Own shares Valuation reserves Profit (Loss) for the period Shareholders’ equity
attributable to the Group
Shareholders’ equity
attributable to minority interests
Shareholders’ equity
Amounts at 1/1/2022 1,581 0 7,107 20,106 -82 -100 0 28,612 2,480 31,091
of which: Change in opening balances 0 0 0 4,967 0 -5,663 0 -696 -88 -784
Result of the period allocation 2021 0 0
Reserves 0 0 0 0 0 0 0 0 0 0
Dividends and other destination 0 0 0 -1,691 0 0 0 -1,691 -219 -1,910
Changes in amount 0 0
New issuance shares 6 0 0 0 0 0 0 6 0 6
Purchase own shares 0 0 0 0 -500 0 0 -500 0 -500
Change in owhership interest 0 0 0 60 0 0 0 60 -215 -155
Other Comprehensive Income 0 0 0 0 0 -2,060 0 -2,060 -165 -2,225
Other changes -0 0 0 -11 -0 0 2,235 2,223 443 2,666
Amount at 31/12/2022 1,587 0 7,107 18,464 -583 -2,160 2,235 26,650 2,323 28,973
Change in opening balances 0 0 0 0 0 0 0 0 0 0
Result of the period allocation 2022 0 0
Reserves 0 0 0 2,235 0 0 0 2,235 0 2,235
Dividends and other destination 0 0 0 -1,790 0 0 0 -1,790 -238 -2,028
Changes in amount 0 0
New issuance shares 6 0 0 0 0 0 0 6 0 6
Purchase own shares 0 0 0 0 -191 0 0 -191 0 -191
Change in owhership interest 0 0 0 74 0 0 0 74 39 113
Other Comprehensive Income 0 0 0 0 0 296 0 296 -133 163
Other changes 0 0 -500 176 500 0 1,512 1,688 325 2,013
Amount at 31/12/2023 1,592 0 6,607 19,159 -273 -1,863 3,747 28,968 2,316 31,284
STATEMENT OF CASH FLOWS
(INDIRECT METHOD)
5
Amount | ||
| 31/12/2023 | 31/12/2022 | |
Net cash flow from (used in): | ||
| - Earnings before taxes | ||
| - Net revenues and expenses from insurance contracts issued and reinsurance contracts held (-/+) | - | |
| - Gains/losses on financial assetsat fair value through profit and loss (-/+) | - | |
- Other non-monetary income and expenses arising from financial instruments, investment property and investments in subsidiaries, associated companies and joint venture (-/+) | ||
| - Net provisions for risks and charges (+/-) | ||
| - Interest income, dividends, interest expense, taxes (+/-) | - | - |
| - Other adjustments (+/-) | - | |
| - Interest income collected (+) | ||
| - Dividends collected (+) | ||
| - Interest paid (-) | - | - |
| - Taxes paid (-) | - | - |
Net cash flow from (used in) other monetary items related to operating activities | ||
| - Insurance contracts issued that are liabilities/assets (+/-) | - | |
| - Reinsurance contracts held that are assets/liabilities (+/-) | - | |
| - Liabilities from financial contracts issued by insurance companies (+/-) | - | - |
| - Receivables from banks (+/-) | ||
| - Payables to banks (+/-) | - | - |
| - Other financial assets and liabilities measured at fair value through profit or loss (+/-) | ||
| - Other financial assets and liabilities (+/-) | - | |
| Net cash flow from (used in) operating activities | ||
Net cash flow from (used in): | ||
| - Sales/purchases of investment property (+/-) | - | |
| - Sale/purchases of investments in associated companies and joint ventures (+/-) | ||
| - Dividends collected on investmentsin subsidiaries, associated companies and joint venture (+) | ||
| - Sales/purchases of financial assets measured at amortised cost (+/-) | - | |
| - Sales/purchases of financial assets at fair value through other comprehensive income (+/-) | ||
| - Sales/purchases of tangible and intangible assets (+/-) | - | - |
| - Sales/purchases of subsidiaries and business branches (+/-) | - | |
| - Other net liquidity flows from investing activities (+/-) | - | - |
| Net cash flow from (used in) investing activities | - | |
Net cash flow from (used in): | ||
| - Share capital increases (+/-) | ||
| - Issues/purchases of own shares (+/-) | - | - |
| - Dividend distribution and other (-) | - | - |
| - Disposal/acquisition of minority interests in subsidiaries | ||
| - Issues/purchases of subordinated liabilities and participating financial instruments (+/-) | - | |
| - Issues/purchases of liabilities measured at amortised cost (+/-) | - | |
| Net cash flow from (used in) financing activities | - | - |
| NET CASH FLOW FROM/USED IN THE PERIOD | - |
208
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
5. In compliance with IFRS 8, it should be noted that, following the changes introduced by the application of the new IFRS 9 and IFRS 17, comparative data in the financial statements have been
appropriately restated.
| Balance sheet items | Amount | |
| 31/12/2023 | 31/12/2022 | |
| Cash and cash equivalents opening balance | ||
| Net cash flows from (used in) for the period | - | |
| Cash and cash equivalents: foreign exchange effect | - | |
| Cash and cash equivalents closing balance |
209
Consolidated Financial Statements
210
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Notes
212
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
BASIS OF PRESENTATION AND
ACCOUNTING PRINCIPLES
Basis of presentation
This document is the consolidated financial statements of Generali Group, registered under number 026 of the Insurance Groups
Register, whose Parent Company is Assicurazioni Generali S.p.A., a company established in Trieste in 1831 with a share capital of
€ 1.592.382.832 fully paid up.
The registered office of the Group and the Parent Company is established in Trieste, Piazza Duca degli Abruzzi, 2 and is registered
under the number 1,00003 of the register of insurance and reinsurance companies.
The Generali Group’s consolidated financial statements at 31 December 2022 were drawn up in accordance with the IAS/IFRS
issued by the IASB and endorsed by the European Union, in accordance with the Regulation (EC) No. 1606 of 19 July 2002 and the
Legislative Decree No. 58/1998, as subsequently amended.
The Legislative Decree No. 209/2005 empowered ISVAP (now IVASS) to give further instructions for financial statements and chart
of accounts in compliance with the international accounting standards.
In this yearly report the Generali Group prepared its consolidated financial statements and Notes in conformity with the ISVAP (now
IVASS) Regulation No. 7 of 13 July 2007 as amended by Art. 12 of IVASS Order no. 121 of 7 June 2022 and information of the
Consob Communication No. 6064293 of 28 July 2006.
As allowed by the aforementioned Regulation, the Generali Group believed it appropriate to provide further details in the Notes, to
fulfil also IAS/IFRS international accounting standards requirements. In particular, information on discontinued operations and their
accounting treatment are included in the chapter Non-current assets or disposal group classified as held for sale in the section
Information on consolidation area and related operations.
The consolidated financial statements at 31 December 2023 were approved by the Board of Directors on 11 March 2024.
The consolidated financial statements at 31 December 2023 are subject to audit by the firm KPMG S.p.A., in charge of the statutory
Consolidated Financial Statements and Notes
Consolidated statements are made up of the balance sheet, the income statement, the statement of comprehensive income, the
statement of changes in equity, the statement of cash flows and Notes, as required by the ISVAP Regulation No. 7 of 13 July 2007,
as amended by Art. 12 of IVASS Order no. 121 of 7 June 2022.
Tables that are mandatorily required as minimum content by the Regulator are presented within to the Notes. In case those regulatory
tables foresee some cells with invalid combinations, it should be noted that Regulator required to insert a “x” to point out the non-
applicability of related information.
This yearly report is drawn up in euro (the functional currency used by the entity that prepared the financial statements) and the
amounts are shown in millions, unless otherwise stated, the rounded amounts may not add to the rounded total in all cases.
Consolidation methods
Investments in subsidiaries are consolidated line by line, whereas investments in associated companies and interests in joint ventures
are accounted for using the equity method.
Investments in associated companies and interests in joint ventures underlying contracts with direct participation features are
measured at fair value through profit or loss.
The balance sheet items of the financial statements denominated in foreign currencies are translated into euro based on the exchange
rates at the end of the year.
The profit and loss account items are translated based on the average exchange rates of the year. They reasonably approximate the
exchange rates at the dates of the transactions.
The exchange rate differences arising from the translation of the statements expressed in foreign currencies are accounted for in
equity in an appropriate reserve and recognized in the profit and loss account only at the time of the disposal of the investments.
For what concerns the accounting criterion for the translation of the financial statements of subsidiaries operating in countries subject
to hyperinflation, please refer to a subsequent section.
213
Consolidated Financial Statements
Exchange rates of the balance sheet
Currency Exchange rate at the end of the period (€)
31/12/2023 31/12/2022
US dollar 1.105 1.067
Swiss franc 0.930 0.988
British pound 0.867 0.887
Argentine peso 893.105 189.026
Czech Koruna 24.689 24.154
Chinese renmimbi 7.834 7.419
Exchange rates of the income statement
Currency Average exchange rate (€)
31/12/2023 31/12/2022
US dollar 1.081 1.054
Swiss franc 0.972 1.005
British pound 0.870 0.853
Argentine peso* 319.946 136.893
Czech Koruna 23.999 24.559
Chinese renmimbi 7.657 7.080
Basis of consolidation
The consolidated financial statements of the Group include the financial statements of Assicurazioni Generali S.p.A. (Parent Company)
and its subsidiaries.
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an investee if, and
only if, the Group has:
• power over the investee (i.e. existing not merely protective rights that give it the current ability to direct the relevant activities of the
investee, that impact meaningfully the returns of the investee);
• exposure, or rights, to variable returns from its involvement with the investee;
• the ability to use its power over the investee to affect its returns.
Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Group
has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in
assessing whether it has power over an investee, including:
• the contractual arrangements with the other vote holders of the investee;
• rights arising from other contractual arrangements;
• Group voting rights and potential voting rights.
The Group reviews periodically and systematically if there was a variation of one or more elements of control, based on the analysis
of the facts and the essential circumstances.
Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated
financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.
In preparing the consolidated financial statements:
• the financial statements of the Parent Company and its subsidiaries are consolidated line by line through specific reporting
packages, which contribute to the consistent application of the Group’s accounting policies. For consolidation purposes, if the
financial year-end date of a company differs from that of the Parent Company, the former prepares anyhow for the financial period
the financial statements closed at 31 December of each financial year;
• all intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the
Group are eliminated in full on consolidation process (intra-group losses are eliminated, except to the extent that the underlying
asset is impaired);
• the carrying amount of the Parent Company’s investment in each subsidiary and the Parent Company’s portion of the shareholder’s
equity of each subsidiary are eliminated at the date of acquisition;
• profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the Parent of the
Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. The non-
controlling interests, together with their share of profit are shown as separate items.
The impact of the changes in the ownership interest of a subsidiary, without a change of control, is accounted for as an equity
214
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
If the Group loses control over a subsidiary, it derecognizes the related assets (including goodwill), liabilities, non-controlling interest
and other components of equity while any resultant gain or loss is recognized in the profit or loss. Any retained investment is
recognized at fair value.
Investment funds managed by the Group in which the Group holds an interest and that are not managed in the primary interest of the
policyholders are consolidated based on the substance of the economic relationship and whether the conditions of control stated by
IFRS 10 are satisfied. On consolidation of an investment fund, a liability is recognized to the extent that the Group is legally obliged
to buy back participations held by third parties. Where this is not the case, other participations held by third parties are presented as
Business combination and goodwill
Business combinations are acquisitions of assets and liabilities that constitutes a business and are accounted for by applying
the so-called acquisition method. The acquisition cost is measured as the sum of the consideration transferred measured at its
acquisition date fair value, including contingent consideration, liabilities assumed towards the previous owners and the amount of
any non-controlling interests. For each business combination, the Group elects whether to measure the non-controlling interests in
the acquiree at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition-related costs are expensed
as incurred and included in the administrative expenses.
If in a business combination achieved in stages, the acquirer’s previously held equity interests in the acquiree are re-measured at its
acquisition date fair value and any resulting gain or loss is recognized in the profit or loss.
Any contingent consideration to be transferred or received by the acquirer will be recognised at fair value at the acquisition date.
Change in fair value of contingent consideration classified as an asset or liability is accounted for according to IFRS 9.
The assets acquired and liabilities deriving from a business combination are initially recognized at fair value at the acquisition
date. Goodwill is initially measured at cost being the excess of the aggregate acquisition cost over the net value of the identifiable
assets acquired and liabilities assumed. If this amount is greater than acquisition cost, difference is recognized in profit and loss
(badwill).
Investments in associates and joint ventures
The investments in associates and joint ventures are consolidated trough the equity method.
An associate is an entity over which the investor has significant influence. Significant influence is the power to participate in the
financial and operating policy decisions of the investee but is not control or joint control over those policies. If an investor holds,
directly or indirectly through subsidiaries, 20% or more of the voting power of the investee, it is presumed that the investor has
significant influence.
In general, joint arrangements are contractual agreements whereby the Group undertakes with other parties an economic activity
that is subject to joint control. Investments in joint arrangements are classified as either joint operations or joint ventures depending
on the contractual rights and obligations each investor has rather than the legal structure of the joint arrangement. A joint venture is
a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint
venture. Joint control exists when it is contractually agreed to share control of an economic activity, which exists only when decisions
about the relevant activities require the unanimous consent of the parties sharing control.
Generali Group has assessed the nature of its current joint arrangements and determined them to be joint ventures.
The considerations made in determining significant influence or joint control are similar to those necessary to determine control over
subsidiaries. Investments in associates and joint ventures are accounted for using the equity method and they are initially recognized
at cost, which includes goodwill arising on acquisition. Any excess between the share of interest in the net fair value of the identifiable
assets and liabilities of the investee compared to the initial cost is recognized in the income statement at the date of acquisition.
The carrying amount of the investment is subsequently adjusted to recognize changes in the Group’s share of the net assets of the
associate or joint venture since the acquisition date. The income statement reflects the Group’s share of the results of operations of
the associate or joint venture. Any change in OCI of those investees is presented as part of the Group’s OCI. Dividends receivable
from associates are recognized as a reduction in the carrying amount of the investment.
At each reporting date, after application of the equity method the Group determines whether there is objective evidence that the
investment in the associate or joint venture is impaired. If there is such evidence, the Group calculates the amount of impairment as
the difference between the recoverable amount of the associate or joint venture and its carrying value, then recognizes the loss as
share of losses of an associate in the income statement. Where the Group’s share of losses in an associate equals or exceeds its
interest in the associate, including any other unsecured long-term receivables, the group does not recognize further losses, unless it
has incurred obligations or made payments on behalf of the associate or joint venture.
Upon loss of significant influence over the associate or joint control over the joint venture the Group measures and recognizes the
retained investment at its fair value. Any difference between the net proceeds and the fair value of the retained interest and the
carrying amount is recognized in the income statement and gains and losses previously recorded directly through OCI are reversed
215
Consolidated Financial Statements
Investments in associated companies and joint ventures underlying contracts with direct participation features are measured at
fair value through profit or loss, according to IFRS 17 Amendment to IAS 28 Investments in Associates and Joint Ventures which
foresees that when an investment in an associated company or a joint venture is held by, or is held indirectly through, an entity that is
a venture capital organisation, or a mutual fund, unit trust and similar entities including investment-linked insurance funds, the entity
Significant judgements in determining control, joint control and
significant influence over an entity
The control is normally ensured by the full ownership of the voting rights, having thus the ability to direct the relevant activities and
consequently being exposed to the variability of results arising from those activities.
The Group controls all the companies for which holds more than half of the voting rights. In three cases the Group controls the
company owning half of the voting rights, being exposed to the variability of returns that depend on the operating policies that the
Group, in substance, has the power to direct. The Group controls one subsidiary having less than the majority of voting rights.
To a minor extent, the Group holds interests in associates and joint ventures. The agreements under which the Group has joint
control of a separate vehicle are qualified as joint ventures where they give rights to the net assets.
In two cases, the Group has no significant influence on a subject for which it holds more than 20% of the voting rights as the
government structure is such that the Group, in substance, does not have the power to participate in financial and operating policies
of the investee.
Regardless of the legal form of the investment, the evaluation of the control is made considering the real power on the investee and
the practical ability to influence relevant activities, regardless of the voting rights held by the parent company or its subsidiaries.
In the Annexes to the consolidated financial statements the list of fully consolidated subsidiaries and of associated and joint
ventures valued using the equity method included in consolidated financial statements as at 31 December 2023 is presented.
Unless otherwise stated, the annex shows the proportion of ownership interest held by the Group which equals the voting rights
of the Group.
The qualitative and quantitative disclosures required by IFRS 12 - Disclosure of Interests in Other Entities are provided in the chapter
Information on consolidation area and related operations in the Notes.
Foreign currency transactions and balances
Transactions in foreign currencies are initially recorded by the Group’s entities at their respective functional currency spot rates at the
date the transaction first qualifies for recognition.
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at
the reporting date.
Differences arising on settlement or translation of monetary items are recognised in profit or loss with the exception of the monetary
items that are designated as part of the hedge of the Group’s net investment of a foreign operation. These are recognised in other
comprehensive income until the net investment is disposed of, at which time, the cumulative amount is reclassified to profit or loss.
Tax charges and credits attributable to exchange differences on those monetary items are also recorded in other comprehensive
income.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the
dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange
rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair
value is treated in line with the recognition of gain or loss on change in fair value of the item (i.e. translation differences on items whose
fair value gain or loss is recognised in other comprehensive income or profit or loss are also recognised in other comprehensive
income or profit or loss, respectively).
IAS 29 - Financial Reporting in Hyperinflationary Economies
application
At 31 December 2023, as in the previous year, the IAS 29 - Financial Reporting in Hyperinflationary Economies to the financial
statement values of the Argentine companies of the Group, Caja de Seguros S.A, Europ Assistance Argentina S.A, Caja de Ahorro
y Seguro S.A., Ritenere S.A. is required, in particular the cumulative inflation rate over three years exceeds 100%.
216
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
The financial statements items of the abovementioned Argentine companies have been restated, applying the Argentine Consumer
Price Index, which reflects the change of general purchasing power. In particular, the following items have been restated at the unit
current at the end of the reporting period:
• non-monetary assets and liabilities;
• all items of comprehensive income, applying the change of the general price index from the date when income and expenses were
initially registered in the financial statements;
• the items of the income statement have been restated at the closing exchange rate;
• restatement in the first period of application of the standard of the components of owners’ equity, except retained earnings and
any revaluation surplus, applying the Consumer Price Index from the dates the components were contributed. Restated retained
earnings derive from the restatement of assets and liabilities;
• restatement at the end of the period of the components of owner’s equity, applying the Consumer Price Index at the beginning of
the period.
The effects of reassessment until 31 December 2022 are included in the opening balance of shareholder’s equity. The impacts at
consolidated level are not material and do not require the presentation of the statements of Argentine companies.
As at 31 December 2023, as in the previous year, the conditions were still met for applying the IAS 29 - Financial Reporting
in Hyperinflationary Economies to the financial statement values of the Turkish company Generali Sigorta A.S. as well. Impacts
of redetermination of the financial statement values of this company are to be considered negligible for the purposes of these
Accounting principles
The accounting standards adopted in preparing the consolidated financial statements, and the contents of the items in the financial
statements are presented in this section.
New accounting principles, changes in the accounting rules and in
the financial statements
Starting from 1 January 2023 the Group applies new accounting standards IFRS 9 and IFRS 17, and related amendments to other
standards (with particular reference to those related to IAS 16 - Property, Plant and Equipment, IAS 40 - Investment Property and
to IAS 28 concerning the fair value of investments). The first application of both standards has introduced significant changes in
measurement and accounting of both (re)insurance contracts and financial instruments.
Compared to Consolidated Financial Statements as at 31 December 2022, financial statements have been modified and new tables
have been added in the Notes with reference to specific areas of information as required by the ISVAP Regulation No. 7 of 13 July
2007, as amended by Art. 12 of IVASS Order no. 121 of 7 June 2022.
The Group has retrospectively applied the period of comparison to the first application of IFRS 9 for all financial instruments, to
produce 2022 comparative information consistent with IFRS 9 and IFRS 17 requirements and in line with the financial information
provided from 1 January 2023, as foreseen by Amendment to IFRS 4 - Applying IFRS 9 Financial Instruments with IFRS 4 - Insurance
Contracts, published by the International Accounting Standard Board (IASB) on 9 December 2021.
Main impacts related to adoption of new accounting standards IFRS 9 and IFRS 17 are described below.
Following the endorsement of the European Union, as from 1 January 2023 new minor Amendments, which are described below,
Impacts of the transition to new accounting standards
Main impacts of the adoption of new standards IFRS 9 and IFRS 17 are reported below.
Impact deriving from the first-time adoption of IFRS 19 and IFRS 17
The impact on shareholders’ equity from the combined application of IFRS 9 and IFRS 17 has been determined on 1 January 2022,
identified as the start of the financial year immediately prior to the date of first-time application of new standards.
On the basis of realized valuations, the impact of combined application of new standards on the Group shareholders’ equity at the
transition date has been approximately -2%.
The table below summarizes the main impacts by presenting a reconciliation between the Group shareholders’ equity as at 31
December 2021, calculated according to IAS 39 and IFRS 4, and the Group shareholders’ equity at the transition date (i.e. 1 January
2022) measured with the new IFRS 9 and IFRS 17 accounting standards:
217
Consolidated Financial Statements
Reconciliation between the Group shareholders’ equity calculated according to IAS 39 and IFRS 4, and the Group shareholders’ equity
measured with the new IFRS 17 and IFRS 9 accounting standards
(€ million)
Total Shareholders' equity (31 December 2021) 31,875
Shareholders' equity attributable to the Group 29,308
Shareholders' equity attributable to minority interests 2,568
Change in Fair Value of assets 9,753
Voba and Deferred Acquisition Costs derecognition -2,793
IFRS 4 insurance provisions derecognition and IFRS 17 fulfillment cash flows recognition 28,141
Risk Adjustment recognition -2,793
Contractual Service Margin recognition -33,170
Deferred taxes and other changes 78
Total Shareholders' equity at transition (1 January 2022) 31,091
Shareholders' equity attributable to the Group 28,612
Shareholders' equity attributable to minority interests 2,480
Transition effects on Shareholders' equity (*) -784
(*) Impacts at transition date include the contribution of Italian bancassurance joint venture (former Cattolica Group) that are classified as disposal group held for sale. This current classification do not have
any effect on impacts on shareholders’ equity.
The change in the Group shareholders’ equity is the result of the combined effect of the introduction of the new standards. In
particular, the gross effect related to the first application of IFRS 9 and IFRS 17 is equal to € 10.6 billion, while the one related to the
first application of IFRS 9 and of IFRS 17 Amendments to IAS 40, IAS 16 and IAS 28 is equal to € 9.8 billion.
Net combined effect on the two main segments in which the Group operates can instead be summarized as follows:
• in the Life segment, the reduction in equity is equal to around € 2.3 billion is mainly associated with recognition of the Contractual
Service Margin (CSM) of contracts with direct participation features (business VFA) absorbing the unrealised gains and losses,
previously accounted for within the equity reserve relating to available for sale assets;
• in the P&C segment, there is a positive effect on shareholders’ equity equal to approximately € 1.6 billion, which mainly reflects the
release of the adequacy reserve previously embedded within the measurements of the outstanding claims provisions compliant
with the accounting principles applied locally.
The below table summarizes the amount of contractual service margin, net of reinsurance contract held, broken down by transition
method:
Contractual service margin broken down by transition method
(€ million) Total Life Segment P&C segment
Contractual Service Margin 33,170 32,397 773
Modified Retrospective Approach 28,534 28,532 2
Full Retrospective Approach 1,682 1,682 0
Fair Value Approach 2,954 2,182 771
It is specified that contractual service margin of group of insurance contracts that do not apply the annual cohort requirement (so
called Carve-out option, referred to in the paragraph “Level of aggregation” of the section “Insurance assets and liabilities”) is equal to
€ 28,287 million. Contractual service margin of these contracts measured at the transition date by applying the modified retrospective
application amounts to € 25,515 million; the residual portion is valued with fair value and with full retrospective application for
respectively € 1,850 million and € 923 million.
The contractual service margin at transition without considering the contribution of Italian bancassurance joint venture (former
Cattolica Group) that are classified as disposal group held for sale is equal to € 32,888 million, of which € 33,029 million are referred
to insurance contract issued.
As already described in paragraph dealing with transition within section New accounting principles of the Half-yearly consolidated
financial report 2023, it is worth remembering that no impact on the statement of Comprehensive Income has been determined at
the transition date on liabilities for incurred claims related to claims with an accident year prior to 2016. The indicative amount of
other comprehensive income related to financial assets at fair value through other comprehensive income, addressable to cover
aforementioned liabilities, is represented below gross of fiscal impact:
• € 196 mln at the transition date, 1 January 2022;
• € -559 mln at 31 December 2022;
• € -255 mln at the closing date of this financial statement.
218
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
The development of other comprehensive income is mainly attributable to the decline in reference interest rates and to the market
trend of underlying assets.
Impacts of the transition on the Group Balance Sheet
The table below shows the effects from the application of IFRS 9 and IFRS 17 on the Group Balance Sheet as at 31 December 2021,
highlighting the main items that have been impacted by the transition.
Impacts of the transition on the Group Balance Sheet
(€ million) Balance
Sheet
as of YE 2021
Items
derecognized
Items
reclassified
IFRS 17/9
remeasurement
Change in
consolidation
scope
Pro-forma
Balance Sheet
at Transition
31/12/2021 01/01/2022 Change
Intangible assets 9,970 -595 -37 -82 9,257 -713
Tangible assets 3,990 -156 -3 3,832 -159
Insurance assets 6,646 -967 55 -115 5,619 -1,027
Investments 527,904 -2,384 9,753 -14,813 520,460 -7,444
Other financial assets 13,912 -8,522 -50 5,340 -8,572
Other assets, cash and cash equivalents 23,802 -2,198 -4,634 1,580 15,052 33,602 9,801
Non-current assets or disposal groups
classified as held for sale
0 15,570 15,570 15,570
Deferred tax assets 3,633 0 -347 1,553 -216 4,623 990
TOTAL ASSETS 586,225 -2,793 -16,701 11,389 -11 578,109 -8,116
Insurance provisions 479,449 -6,699 7,877 -14,103 466,524 -12,926
Financial liabilities 47,713 -3,134 -206 44,373 -3,341
Payables 13,250 -6,029 -68 7,153 -6,097
Other liabilities and other provisions 13,937 -837 1,502 14,367 28,968 15,032
Liabilities associated with non-current assets and
disposal groups classified as held for sale
0 14,752 14,752 14,752
Deferred tax liabilities 3,815 -757 1,502 -234 4,326 511
TOTAL LIABILITIES 554,349 -16,700 9,379 -11 547,018 -7,3 32
SHAREHOLDERS' EQUITY 31,875 -2,793 -0 2,009 0 31,091 -784
The main impacts on the Group shareholders’ equity are as follows:
• the decrease in intangible assets and other assets, mainly attributable to derecognition of the VOBA and deferred acquisition costs
(negative effect);
• the increase in investments mainly determined by the fair value measurement of real estate investments backing VFA business
(following the choice made by the Group to measure at fair value the investment properties underlying contracts with direct
participation features), and of some debt securities measured at cost according to IAS 39 (positive effect);
• the measurement of liabilities for insurance contracts due to the following reasons:
- recognition of the portion of unrealised gains on investments to cover the liability measured according to the VFA model within
the CSM (negative effect);
- application of best estimate assumptions instead of locked -in prudential assumptions for insurance liabilities (positive effect);
- discounting at market rates of liabilities for claims of the P&C segment previously not discounted (positive effect);
- recognition of future profits of insurance contracts accounted for according to the General Model (GMM) and VFA within the
CSM under insurance liabilities (negative effect);
• the tax effect on the changes commented on above.
In addition, the application of IFRS 17 entailed the reclassification of some assets and liabilities previously accounted for in other
elements of the balance sheet under assets and liabilities of insurance contracts. These reclassification effects mainly concerned:
reinsurance deposits, receivables and payables related to (re)insurance contracts, policyholder loans.
Please note that the Group considers the Italian bancassurance joint ventures (former Gruppo Cattolica) as disposal group held for
sale and, in compliance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, they are separately reclassified
within the Group Balance Sheet.
219
Consolidated Financial Statements
Reconciliation of IAS 39 and IFRS 9 balances for financial instruments as at the date of
first-time application of IFRS 9
In accordance with the disclosure requirements at the date of first-time application of IFRS 9 (i.e. 1 January 2023), as referred to in
IFRS 7, the following tables show the reconciliation of IAS 39 and IFRS 9 balances of financial assets and liabilities as at the date of
first-time application of the new standard, together with the related impact on the balance sheet arising from changes in classification
and measurement as at that date. Note that the effects on shareholders’ equity of transition to the new accounting standards were
recorded at 1 January 2022. The impact on the balance sheet at 1 January 2023 is therefore intended as the impacts at 1 January
2022 and the changes in value associated with the financial instruments during 2022 between the IAS 39 and IFRS 9 classification
and measurement rules, and is shown in the tables reconciling IAS 39 and IFRS 9 balances for financial instruments provided below.
In the interpretation of the table reported below, the following comments are highlighted.
• The scope of financial instruments illustrated considers the financial assets classified under “investments” in the new balance
sheet format envisaged by ISVAP Regulation no. 7 of 13 July 2007, as replaced by article 12, IVASS Measure no. 121 of 7 June
2022. The IAS 39 like for like perimeter does not consider elements previously included under the IAS 39 scope of application,
now absorbed into the scope of IFRS 17 at the date of transition. The main differences refer to policy loans and deposits under
reinsurance business accepted (approximately € -5 billion). In addition, the IAS 39 like for like perimeter does not consider financial
assets held by the companies classified under IFRS 5 (around € 9.3 billion).
• The columns relating to changes in classification between accounting categories of financial assets represent reclassifications
among asset items resulting from a change in the destination accounting category (at IAS 39 balance sheet values) due to the
application of the new standard.
With reference to the composition of the portfolio of financial instruments in the IFRS 9 scope at 1 January 2023, note the
preponderance of financial instruments measured at fair value through other comprehensive income (FVOCI), equal to 53% (66%
of available-for-sale financial assets pursuant to IAS 39). This category mainly includes debt instruments classified in line with the
Group “Hold to collect and sell” business model and that pass the Solely Payments of Principal and Interest (SPPI) test, as well
as equity instruments measured at fair value through other comprehensive income without recycling to the income statement, the
option adopted by the Group for equity instruments underlying non-VFA business.
Financial instruments measured at fair value through profit or loss are 42% (27% in IAS 39), while those measured at amortised
cost are 6% (7% in IAS 39). In particular, 46% of the financial instruments measured at fair value through profit or loss relate to non-
unit-linked instruments. Of these, 81% relate to VFA business portfolios and therefore not directly impacting the income statement,
as changes in the fair value of the underlying financial assets are offset by symmetrical movement in the reference insurance
liabilities.
The reclassification as financial instruments at fair value through profit or loss (around € 65 billion) mainly includes investment fund
units and debt securities that do not pass the SPPI test, to which there is limited exposure, and equity instruments measured at
fair value through profit or loss that are essentially attributable to VFA business.
• In terms of measurement, the total balance sheet impact on financial assets is € -0.5 billion, mainly related to loans and unlisted
debt instruments. Note that, at 1 January 2023, the total reserve for valuation gains or losses on debt instruments and loans at
FVOCI was € -27,643 million, including minorities, of which € -671 million referring to debt instruments previously recognised at
amortised cost.
• The column “Other impacts” mainly includes accrued interest previously classified under “Other assets” (outside the investments
category) and the effect of the change in presentation of some fully consolidated investment fund units measured at fair value
through profit or loss. Consequently, these changes had no impact on shareholders’ equity.
220
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Reconciliation of IAS 39 and IFRS 9 balances for financial assets as at the date of first-time application of IFRS 9
(€ million) Change in classification
IAS39
like-for-like
perimeter
FVtPL prev.
at AC
FVOCI prev.
at AC
FVTPL prev.
at AFS
AC prev.
at AFS
FVOCI prev.
at FVTPL
AC prev.
at FVTPL
31/12/2022
FINANCIAL ASSETS 417,188 14 - - - - -
Financial assets at amortised cost 29,684 -851 -15,447 - 9,549 - 2
Financial assets at FVOCI 275,012 - 15,447 -64,026 -9,549 2,629 -
Bonds 216,585 - 11,513 -7,724 -9,549 2,614 -
Other financial instruments 58,427 - 3,934 -56,302 - 14 -
Financial assets at FVTPL 112,492 865 - 64,026 - -2,629 -2
Bonds 3,365 488 - 7,724 - -2,614 -
Other financial instruments 109,127 376 - 56,302 - -14 -2
Fiscal impact
Impacts on Shareholders' Equity net of fiscal impact
Reconciliation of IAS 39 and IFRS 9 balances for financial liabilities as at the date of first-time application of IFRS 9
(€ million) IAS 39 like-for-like perimeter Other impacts IFRS 9 carrying amount
31/12/2022 01/01/2023
Financial liabilities 44,619 493 45,111
Financial liabilities at fair value through profit or loss 9,393 25 9,417
Financial liabilities at amortised cost 35,226 468 35,694
The IAS 39 like for like perimeter does not consider elements previously included under the IAS 39 scope of application, now
absorbed into the scope of IFRS 17 at the date of transition, mainly associated with financial liabilities relating to investment contracts
and deposits with ceding companies (around € 3.3 billion).
There were no changes to the classification and measurement of financial liabilities. Other impacts refer mainly to accrued interest
previously classified under “other liabilities”.
Reconciliation between the closing balance of the IAS 39 provision for impairments and the opening balance of the IFRS 9 provision for
impairments
(€ million) Impairment allowance
under IAS 39
Reclassification
impact
Increase/Decrease
due to new ECL
calculation
Total ECL reserve/
allowance
Financial assets at amortised cost -55 - 11 -44
Impairment on bonds - - -8 -8
Impairment other financial instruments -55 - 19 -36
Available for sale investments/Financial assets at fair value -70 - -413 -482
Impairment on bonds -37 - -428 -465
Impairment other financial instruments -32 - 15 -17
Expected credit losses on financial guarantees issued and loan
commitment issued
- - - -
Total impairment -125 - -402 -527
221
Consolidated Financial Statements
Change in measurement
FVTPL prev.
at AC
FVOCI prev.
at AC
AC prev.
at AFS
AC prev. at
FVTPL
Reversal of
impairment (AC)
Other impacts Impairment
allowance (AC)
IFRS 9 carrying
amount
Shareholders'
equity
impact
01/01/2023
-41 -722 287 - 55 2,872 -44 419,609 -468
- - 287 - 55 61 -44 23,297 300
- -722 - - - 2,531 - 221,322 -724
- -671 - - - 2,905 - 215,673 -673
- -51 - - - -374 - 5,648 -51
-41 - - - - 280 - 174,991 -44
-45 - - - - 127 - 9,045 -45
3 - - - - 153 - 165,946 1
149
-319
222
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Amendments that shall be applied from 1 January 2023
New amendments to existing standards, effective from 1 January, are illustrated below.
Amendments to IAS 12 Income taxes: International Tax Reform – Pillar Two Model
Rules
On 23 May 2023, IASB published the International Tax Reform - Pillar Two Model Rules - Amendments to IAS 12 to clarify the
application of IAS 12 Income Taxes to income taxes arising from tax law enacted or substantively enacted to implement the Pillar
Two model rules published by the Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework on
Base Erosion and Profit Shifting (BEPS) according to which large Multinational Entities Groups (more than € 750 million turnover) pay
a minimum level of tax (15%) on income arising in each of the jurisdictions where they run their businesses. The Generali Group falls
within the scope of the application of the above mentioned tax regime, provided by the Directive (EU) 2022/2523 of 14 December
2022, adopted in Italy by Legislative Decree 209 of 27 December 2023, which has the objective of guaranteeing a level of global
minimum tax for the multinational groups and national groups operating on a large scale in the European Union.
The Amendments introduce:
• a mandatory temporary exception – the use of which is required to be disclosed – to the disclosure of information and the
accounting for deferred taxes arising from the jurisdictional implementation of the Pillar Two Model Rules,
• a requirement to disclose separately the current taxes arising from the application of the Pillar Two Model Rules,
• disclosure requirements (both qualitative and quantitative) for affected entities to help users of financial statements better understand
the entity’s exposure to Pillar Two income taxes arising from that legislation, particularly before its effective date,
• the possibility to disclose a statement in which the information about the progress in assessing the exposure to the impacts of the
Pillar Two Model Rules are described - to the extent that information is not reasonably estimable.
The mandatory temporary exception applies retrospectively and immediately upon issuance of the Amendments.
The remaining disclosure requirements apply for annual reporting periods beginning on or after 1 January 2023, but not for any
interim period ending on or before 31 December 2023.
The Amendment has been endorsed on 9 November 2023.
The Group, on the basis of paragraph 4.A of the Amendment to IAS 12, proposes not to recognize and communicate information
on deferred tax assets and liabilities relating to income taxes arising from the application of the Pillar Two Model Rules. Furthermore,
no current taxes relating to income taxes deriving from the application of the Pillar Two Model Rules were recognized since the rules
are not effective at the closing date of these financial statements.
The exposure to the income taxes concerned follows, with regard to all the companies of the Group and all the jointly controlled
entities located in each individual jurisdiction, from the level of effective taxation which, at the level of each jurisdiction, depends on
various factors including interconnected with each other such as mainly the generated income, the level of the nominal rate, tax rules
for determining the taxable base, provisions, type and impact of incentives or other tax benefits.
Furthermore, taking into consideration the novelty and complexity inherent in the determination of the level of effective taxation,
the legislation of the Pillar Two Model Rules provides, for the first periods of effectiveness (so-called transitional regime valid for the
periods starting before 31 December 2026 and ending no later than 30 June 2028) the possibility of applying a simplified regime (so-
called transitional safe harbours) based mainly on accounting information available for each relevant jurisdiction which, in the event of
passing at least one of three tests, involves the reduction of the costs of regulatory requirement and the possibility of assuming the
taxes deriving from the application of the Pillar Two Model Rules as nil.
The exposure of the Generali Group to income taxes resulting from the application of the Pillar Two Model Rules on the basis of
information known, or reasonably estimable, at the closing date of the financial year is assessed as not significant also on the basis
of the simplified regime. In particular, based on information known or reasonably estimable:
• in connection with the majority of the Group entities and jointly controlled entities, which are located in jurisdictions that satisfy at
least one of the three tests required by the transitional safe harbours, the conditions for considering the taxes deriving from the
application of the Pillar Two Model Rules as nil are satisfied, and
• for the other Group entities and jointly controlled entities, located in jurisdictions that do not satisfy any of the three tests required
by the transitional safe harbors, the exposure is not significant as the level of effective taxation of these jurisdictions is closer to the
minimum amount of 15% or profits in such jurisdictions are not material compared to the Group’s total profits.
The Group is organizing and preparing for the obligations required by the legislation - also for subsequent periods - through the
preparation of adequate systems and procedures aimed at:
• identify, locate and characterize, also continuously, all Group companies and jointly controlled entities in scope for the purposes
of the relevant legislation; and
• calculate the simplified tests for each relevant jurisdiction, in order to benefit from the advantages in terms of reduction of compliance
costs and to assume as nil the taxes deriving from the application of the Pillar Two Model Rules; and
• proceed with complete and detailed calculations of the relevant amount as required by the legislation in force for any jurisdictions
that do not pass any of the aforementioned tests.
223
Consolidated Financial Statements
Amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a
Single Transaction
On 7 May 2021 IASB published Amendments to IAS12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction,
which modified paragraphs 15, 22 and 24 and added paragraphs 22A and 98J-98L, in order to clarify cases in which it is necessary
to recognize deferred taxation, in particular for transactions such as leases and decommissioning obligations.
In particular, with amendments to paragraphs 15 and 14, it was clarified that the exemption from recognition of a deferred tax liability
or deferred tax asset does not apply in case of initial recognition of an asset or liability in a transaction that, even if it is not a business
combination and at the time of the transaction affects neither accounting profit nor taxable profit, gives rise to equal and offsetting
temporary differences.
Moreover, new paragraph 22A added by Amendments, gives as an example for the non-application of exemption foreseen by
paragraphs 15 and 24 the case of a lease transaction, which is not a business combination and, at the time of the transaction, affects
neither accounting profit nor taxable profit. Depending on the applicable tax law, equal taxable and deductible temporary differences
may arise on initial recognition of the asset and liability in such a transaction. The exemption provided by paragraphs 15 and 24 does
not apply to such temporary differences and the lessee recognises any resulting deferred tax liability and asset.
The effective date of Amendments is 1 January 2023. Amendments have been endorsed on 11 August 2022.
There are negligible impacts on shareholders’ equity from the application of the Amendments as at 1 January 2023.
Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice
Statement 2: Disclosure of Accounting Policies; Amendments to IAS 8 Accounting
policies, Changes in Accounting Estimates and Errors: Definition of Accounting
Estimates
On 12 February 2021, IASB issued following Amendments:
• Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting Policies;
• Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates.
The effective date of Amendments is 1 January 2023. Amendments have been endorsed on 2 March 2022.
These Amendments have no impacts for the Group.
Amendments not yet applicable
Below are reported the Amendments published by the IASB which are not yet applicable and which are expected to have marginal
or completely not significant impacts for the Group.
Standard Amendments Date of publication Effective date
IAS 1
Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as
Current or Non-current Date
23 January 2020 1 January 2024
IAS 1
Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as
Current or Non-current - Deferral of Effective Date
15 July 2020 1 January 2024
IAS 1
Amendments to IAS 1 Presentation of Financial Statements: Non-current Liabilities with
Covenants
31 October 2022 1 January 2024
IFRS 16 Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback 22 September 2022 1 January 2024
IAS 7
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments:
Disclosures: Supplier Finance Arrangements
25 May 2023 1 January 2024
IAS 21
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack
of Exchangeability
15 August 2023 1 January 2025
On 15 August 2023, IASB published Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of
Exchangeability. These Amendments introduce a consistent approach in assessing whether a currency can be exchanged into
another currency and, when it cannot, in determining the exchange rate to use and the disclosures to provide.
Effective date of Amendments is 1 January 2025. Amendments have not yet been endorsed.
Considering the currency exposures held by the Group and the current macroeconomic conditions, the provisions of Amendments
for currencies that cannot be exchanged into another currency apply to the Argentine Peso.
To date, the potentially estimated impacts linked to the future application of the Amendment are not significant for the Group.
224
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Balance sheet - Assets
Intangible assets
In accordance with IAS 38 – Intangible Assets, an intangible asset is recognised if, and only if, it is identifiable and controllable, and
it is probable that the expected future economic benefits attributable to the asset will flow to the company and the cost of the asset
can be measured reliably.
This category includes goodwill and other intangible assets, such as goodwill recognised in the separate financial statements of the
consolidated companies, software and intangible assets arising from insurance business combinations and related to bancassurance
operations.
This item also includes right of use of leased assets which are allocated to the individual macro-items in the financial statements on
the basis of the nature of the assets.
Goodwill
Goodwill is the sum of future benefits not separately identifiable acquired in a business combination. At the date of acquisition,
the goodwill is equal to the excess between the sum of the consideration transferred, including contingent consideration, liabilities
assumed towards the previous owners the fair value of non-controlling interests as well as, in a business combination achieved in
stages, the fair value of the acquirer’s previously held equity interest in the acquiree and the fair value of net amount of the separately
identifiable assets and liabilities acquired.
After initial recognition, goodwill is measured at cost less any impairment losses and it is no longer amortised. According to IAS 36
- Impairment of Assets, goodwill is not subject to amortisation. Realized gains and losses on investments in subsidiaries include the
related goodwill. Goodwill is tested at least annually in order to identify any impairment losses.
The purpose of the impairment test on goodwill is to identify the existence of any impairment losses on the carrying amount recognised
as intangible asset. In this context, cash-generating units or group of cash-generating units to which the goodwill is allocated are
identified and tested for impairment. Cash-generating units or group of cash-generating units (hereinafter “CGU”) usually represent
the consolidated units within the same primary segment in each country. Any impairment is equal to the difference, if negative,
between the carrying amount and the recoverable amount, which is the higher between the fair value of the cash-generating unit
and its value in use, i.e. the present value of the future cash flows expected to be derived from the cash-generating units. The fair
value of the CGU is determined on the basis of current market quotation or usually adopted valuation techniques (mainly Dividend
Discount Model - DDM or alternatively Market Value Balance Sheet or appraisal value). The Dividend Discount Model is a variant
of the Cash flows method. In particular the Dividend Discount Model, in the excess capital methodology, states that the economic
value of an entity is equal to the discounted dividends flow, together with any excess capital quota, calculated considering the capital
requirements consistent with the Risk Appetite Framework (RAF) defined by the Group for specific CGU. Such models are based
on the projections on budgets/forecasts approved by management or conservative or prudential assumptions covering a maximum
period of five years. Cash flow projections for a period longer than five years are extrapolated using estimated among others growth
rates. The discount rates reflect the free risk rate, adjusted to take into account specific risks. Should any previous impairment losses
no longer exist, they cannot be reversed.
For further details see section Information on consolidation area and related operations in the Notes.
Other intangible assets
Intangible assets with finite useful life are measured at acquisition or production cost less any accumulated amortisation and
impairment losses. Specifically, the purchased software expenses are capitalised on the basis of the cost for purchase and usage.
The costs related to their development and maintenance are charged to the profit and loss account of the period in which they are
incurred.
The amortisation is based on the useful life and begins when the asset is available for use.
In particular, licenses for the use of software are amortised based on the expected technological obsolescence and in any case
generally no longer than a period of 10 years. Intangible assets related to bancassurance operations are generally amortised over a
period corresponding to the duration of the contracts.
Other intangible assets with indefinite useful life are not subject to amortisation. They are periodically tested for impairment.
Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposal proceeds
and the carrying amount of the asset and are recognised in the income statement when the asset is de-recognised.
Other intangible assets include the right of use of leased assets and is subject to the recoverability test, carried out with a view to the
Tangible assets
225
Consolidated Financial Statements
Land and buildings (Self-Used)
In accordance with IAS 16, this item includes land and buildings used for own activities.
Land and buildings (self-used) are measured applying the cost model set out by IAS 16. The cost of the self-used property comprises
purchase price and any directly attributable expenditure.
The depreciation is systematically calculated applying specific economic/technical rates which are determined locally in accordance
with the residual value over the useful economic life of each individual component of the property. For the purposes of determining the
useful life of the different types of properties, the Group has adopted appropriate internal procedures which have led to determining
a useful life of between 20 and 125 years.
Land and buildings (self-used) are measured at cost less any accumulated depreciation and impairment losses. Land and agricultural
properties are not depreciated but periodically tested for impairment losses. Costs, which determine an increase in value, in the
functionality or in the expected useful life of the asset, are directly charged to the assets to which they refer and depreciated in
accordance with the residual value over the assets’ useful economic life. Cost of the day-to-day servicing are charged to the profit
and loss account.
For land and buildings underlying contracts with direct participation features (for a share at least equal to or greater than 50%), the
Group adopts fair value measurement through profit or loss, according to the model foreseen by IAS 40 and in line with provisions of
paragraph 29A of IAS 16. For additional details on the measurement of these land and buildings, please refer to section Fair Value.
This item also includes right of use of leased assets that are allocated to the specific balance sheet items based on the nature of the
assets and that are accounted for according to IFFRS 16. For further information please refer to section Leasing.
Other tangible assets
Property, plant, equipment, furniture and property inventories are classified in this item as property inventory. In particular, property,
plant, equipment and furniture, as provided by IAS 16, are initially measured at cost and subsequently recognised net of any
accumulated depreciation and any impairment losses. They are systematically depreciated on the basis of economic/technical rates
determined in accordance with their residual value over their useful economic life. Other tangible assets are depreciated over useful
lives of between 2 and 16 years.
Inventories, as stated by IAS 2 - Inventories, are measured at the lower of cost (including cost of purchase, cost of conversion and
cost incurred the inventories to their present location and condition) and net realizable value, i.e. the estimated selling price in the
ordinary course of business less the estimated cost of completion and costs to sell. An item of property, plant and equipment and
any significant part initially recognised is de-recognised upon disposal or when no future economic benefits are expected from its use
or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds
and the carrying amount of the asset) is included in the income statement when the asset is de-recognised.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year
end and adjusted prospectively, if appropriate.
This item also includes right of use of leased assets that are allocated to the specific balance sheet items based on the nature of the
assets and that are accounted for according to IFFRS 16. For further information please refer to section Leasing.
Capitalization of borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily take a substantial
period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are
expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection
Insurance assets and liabilities
The IFRS 17 standard establishes the accounting rules for insurance contracts based on a measurement model structured on
a Building Block Approach based on the Fulfilment Cash Flows (FCF), which comprise the present value of future cash flows,
weighted by the probability of occurrence (Present Value of Future Cash Flows – PVFCF), and the adjustment for non-financial risk
(Risk Adjustment - RA), and on the expected value of the unearned profit for the services provided (Contractual Service Margin -
CSM). The adoption of a simplified approach (Premium Allocation Approach - PAA) is allowed if the contractual coverage period
is less than one year or if the model used for the measurement provides a reasonable approximation with respect to the building
block approach. The simplification applies to the measurement of the Liability for Remaining Coverage (LRC), which does not
have to be broken down into PVFCF, RA and CSM, but is essentially based on the premium received net of acquisition costs.
As it pertains to the Liability for Incurred Claims (LIC), the measurement is applied consistently with the General Measurement
Model (GMM), for which all the claims occurred are subject to discounting and the calculation of the Risk Adjustment is executed
accordingly.
The Variable Fee Approach (VFA) is envisaged for contracts entailing the direct participation of the policyholders in the Company’s
financial and/or insurance results; this is an alternative model to GMM, which provides for a different treatment of changes in cash
226
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Insurance revenues and costs for insurance services gross of reinsurance will be presented with the reinsurance result included in
the costs of the insurance service. Pursuant to the IFRS 17, insurance liabilities are subject to discounting; the periodic unwinding of
discounting will be a financial charge included in the financial result.
Scope and separation of components of an insurance contract
IFRS 17 provisions apply to all contracts that meet the definition of an insurance contract, including:
• insurance contracts, including reinsurance contracts (i.e., assumed business), issued;
• reinsurance contracts held; and
• investment contracts with discretionary participation features (DPF) issued if the entity also issues insurance contracts.
A contract is classified as an insurance contract based on assessment of the significance of the insurance risk transferred to
the entity issuing the policy, agreeing to compensate the policyholder if a specified uncertain future event adversely affects the
policyholder.
The Group has classified policies of the Life segment as insurance contracts or investments contracts on the basis of the following
steps:
• identification of the characteristics of products (guarantees/options, discretionary participation features) and services provided;
• determination of the level of insurance risk in the contract;
• application of the applicable international principle.
Insurance contracts create a bundle of rights and obligations that work together to generate a package of cash flows. Indeed,
while some types of insurance contracts only provide insurance coverage (e.g., most short-term non-life contracts), other types
of insurance contracts could contain one or more components that would be within the scope of another Standard if they were
separate contracts. For example, some insurance contracts may contain:
• investment components (e.g., pure deposits, such as financial instruments whereby an entity receives a specified sum and
undertakes to repay that sum with interest);
• good and service components (e.g., services other than insurance contract services, such as pension administration, risk
management services, asset management or custody services); and
• embedded derivatives (e.g., financial derivatives, such as interest rate options or options linked to an equity index).
In certain cases, specifically defined by IFRS 17, the above-mentioned components must be separately considered and measured
under another IFRS standard.
IFRS 17 requires separating from the host contract the distinct investment components only. Indeed, the investment component is
distinct if, and only if, both of the following criteria are met:
• the investment component and the insurance component are not highly interrelated. The two components are highly interrelated
if the value of one component varies with the value of the other component and hence the entity is unable to measure each
component without considering the other one. The components are also highly interrelated if the policyholder is unable to benefit
from one component unless the other is also present;
• a contract with terms equivalent to the investment component is sold, or could be sold, separately in the same market or same
jurisdiction.
If the investment component does not satisfy the two conditions above, it would be identified as non-distinct and IFRS 17 would
apply on the contract as a whole (no separation from host contract).
With reference to service component, the latter is considered as a separate component when cash flows and its associated risks
are not closely related with the one arising from the primary insurance contract and therefore there is no evidence of an integration
between service and insurance component.
Level of aggregation
IFRS 17 requires that an entity should aggregate issued contracts at inception in groups for recognition, measurement, presentation
and disclosure. The groups are established at initial recognition and their composition shall not be reassessed subsequently.
The starting point for aggregating contracts is to identify portfolios of insurance contracts. A portfolio comprises contracts that are
subject to similar risks and managed together.
The assessment of “similar risks” should take into consideration the prevailing risks of the contracts. In case the prevailing risks are
similar, then two contracts can be considered as exposed to similar risks.
The Group apply level of aggregation criteria requested by IFRS17 valuing portfolios of contracts on the basis of a variety of
characteristics that consider underlying contracts risk as well as products features that can influence management and profitability
of contracts. A non-exhaustive list of segmentation drivers can be represented by:
• line of business;
• individual policies vs group policies;
• contract features that imply different measurement models (e.g. multiyear vs annual contracts or participating contract vs non
participating contract).
227
Consolidated Financial Statements
Group also considers currency segmentation as driver for portfolio definition when it has a significant impact on profitability.
In case of mutualised business, the “mutualised portfolio” is generally set in line with the level of granularity where mutualisation
applies.
With reference to reinsurance contracts, the Group’s position is that a portfolio of reinsurance contracts could be composed by one
or more reinsurance treaties grouped together that are managed together if exposed to similar risks. Type of coverage (proportional
or non-proportional, Loss Occurring or Risk Attaching), as well as the nature of reinsurance contracts, can be considered as drivers
that may be used to determine whether reinsurance contracts belong to the same portfolio.
The contracts in each portfolio shall be divided on initial recognition into the following groups:
• group of contracts that are onerous at initial recognition;
• group of contracts that at initial recognition have no significant possibility of becoming onerous subsequently; and
• group of the remaining contracts in the portfolio.
Same group of contracts cannot include contracts issued more than one year apart in the same group. Therefore, each portfolio
should be disaggregated into annual cohorts, or cohorts consisting of periods of less than one year. The Group applies the
amendment done in the endorsement phase of IFRS 17 that, at Art.2 of European Commission Regulation (EU) 2021/2036, grants
an entity applying IFRS 17 the option (i.e., Carve-out option) to not to apply the requirement laid down in paragraph 22 of the IFRS
17 (i.e., annual cohort requirement) to:
• groups of insurance contracts with direct participation features and groups of investment contracts with discretionary participation
features as defined in Appendix A to the Annex to the Regulation , and with cash flows that affect or are affected by cash flows to
policyholders of other contracts as laid down in paragraphs B67 and B68 of Appendix B of that Annex;
• groups of insurance contracts that are managed across generations of contracts and that meet the conditions laid down in
Article 77b of Directive 2009/138/EC and have been approved by supervisory authorities for the application of the matching
adjustment.
Measurement models
General Model Measurement
The GMM represents the standard measurement model envisaged by the standard for the measurement of insurance assets and
liabilities.
Within the Life segment, the Group applies the GMM measurement model mainly to pure risk multiyear products and traditional
savings policies not eligible for application of the VFA business. Within the P&C segment, the broad eligibility for the simplified PAA
model determines a residual application of the standard measurement model.
Variable Fee Approach
The VFA is the mandatory measurement model to be applied for insurance contracts with direct participation features.
The Group classifies as contract with direct participation features (i.e. direct participating contract) a contract for which:
• the contractual terms specify that the policyholder participates in a share of a clearly identified pool of underlying items,
• the Group expects to pay to the policyholder an amount equal to a substantial share of the fair value returns on the underlying
items; and
• the Group expects a substan tial proportion of any change in the amounts to be paid to the policyholder to vary with the change
in fair value of the underlying items.
In addition to the transfer of significant insurance risk to the issuer, a direct participating contracts includes a significant investment-
related service. Underlying items can include different type of items such as a reference portfolio of assets, technical items, the net
assets of the entity, or a specified subset of the net assets of the entity. The nature of underlying items mainly depends on local
regulation and products’ features.
The Group assesses whether the conditions above are met using its expectations at inception of the contract and do not expect the
repeat the assessment unless the contract is modified.
The Group applies the VFA predominantly to the insurance portfolio of the Life segment. The VFA measurement model is mainly
applied to traditional savings policies underwritten in the EU market and unit-linked policies. For contracts characterised by direct
participation features and with cash flows that affects or are affected by cash flows to policyholder of other contracts, the Group
make use of the exemption from the application of the requirement of annual cohorts (i.e. carve-out option). Finally, as part of this
approach, the Group applies for some groups of contracts the option provided for in paragraph B115 of IFRS 17 (so-called risk
mitigation option).
228
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Premium Allocation Approach
This is a simplified method for the measurement of insurance contracts. It can be applied for contracts having a coverage period
shorter than one year or when the entity reasonably expects that such simplification would produce a measurement of the liability
for remaining coverage for the group that would not differ materially from the one that would be produced applying the standard
measurement model. Using the Premium Allocation Approach, the Liability for Remaining Coverage is equal premiums received at
initial recognition less any insurance acquisition cash flows and any amounts recognized on a pro-rata temporis basis as insurance
revenue at the closing date. The GMM remains applicable for the measurement of the Liability for Incurred Claims.
This model is predominantly applied to the insurance portfolio of the P&C segment. With reference to the life segment, the application
of this measurement model is limited only to groups of contracts with a duration not exceeding one year.
Initial recognition
A group of insurance contracts issued is recognized from the earliest of the following events:
• the beginning of the coverage period;
• the date when the first payment from a policyholder in the group becomes due;
• for a group of onerous contracts, when the group becomes onerous.
With reference to reinsurance contracts held, the initial recognition is set:
• at the beginning of the coverage period, except reinsurance contracts for which the initial recognition is postponed until the date
that the underlying insurance contract is initially recognised;
• at the date the entity recognizes an onerous group of underlying insurance contracts if the entity entered into the related reinsurance
contract at or before that date.
Initial recognition of contracts acquired in a transfer of insurance contracts or in a business combination is set at acquisition date.
Contract boundaries valuation on initial recognition
The measurement of a group of insurance contracts includes all the expected cash flows within the boundary of each contract within
the group. Generali Group considers the contract boundary requirements as linked to the entity ability to fully reprice a contract. All
future premiums and policyholder options should be included in the initial projections if the entity does not have the ability to fully
reprice the contract when the premium is paid/the option is exercised.
According to this requirement, the contract boundaries will be set considering the insurance contract as a whole and not considering
each single component independently, leading to difference compared to the current approach applied in Solvency II, with particular
reference to multi-risk contracts, where different risk components may have different contracts boundaries.
On initial recognition, groups of insurance contracts are valued as the sum of:
• Fulfilment Cash Flows, that include the discounted and probability weighted estimate of future cash flows, and the Adjustment for
Non-financial Risks; and
• the Contractual Service Margin.
Expected Future Cash Flows
Expected Future Cash Flows are the first element of Fulfilment Cash Flows and represents an estimate of future cash flows within
the contract boundary.
The estimate of future cash flows shall: i) incorporate, in an unbiased way, all reasonable and supportable information available;
ii) reflect the perspective of the entity, provided that the estimates of any relevant market variables are consistent with observable
market prices for those variables, iii) be current and iv) be explicit.
Where not required by specific regulatory requirements, the operating assumptions underlying the projections of Expected Future
Cash Flows are generally in line with the ones adopted by the Group within the Solvency II framework. However, as regard expense
perimeter, differences may arise because of the IFRS 17 requirement envisaging that only expenses directly attributable to insurance
229
Consolidated Financial Statements
Time value of money (discount rates)
IFRS 17 requires adjusting the estimates of expected cash flows to reflect the time value of money and the financial risks associated
with those cash flows to the extent that the financial risks are not already included in the cash flow estimates.
In order to comply with the market consistent approach prescribed by the principle, the Group will apply a bottom-up approach to
define the discount rates to apply to insurance and reinsurance contracts, consistently with Solvency II framework, where appropriate.
In detail, the Group’s position is to apply a risk neutral approach for IFRS 17 both for participating and non-participating business
for the purpose of fulfilling market consistency requirements. In this context, the IFRS 17 discount curve, for each currency in the
portfolio, will be determined as the sum of:
• a risk-free base curve; and
• an adjustment for the illiquidity premium (so-called IFRS 17 adjustment).
As regards the risk-free base curve, the approach is aligned with the parameterization and the current Solvency II method. In
particular, the same extrapolation algorithm is applied (i.e., the Smith-Wilson method) and the same convergence rate (i.e. ultimate
forward rate) is used for all currencies.
To determine the IFRS 17 adjustment, the Group considers the average spread of a reference asset portfolio, adjusted to exclude
credit risk components (i.e., risk corrections) and the effect of potential misalignments of cash flows of underlying assets with respect
to the portfolio of liabilities. In particular:
• for the GMM and PAA businesses, the same Solvency II adjustment is used (i.e., the volatility adjustment);
• for the VFA business, an adjustment for the specific illiquidity premium is calibrated for each insurance company in order to ensure
a better economic representation of the life business and avoid creating artificial volatility in the balance sheet and in the income
statement due to the movement of market spreads.
The illiquidity premium of the VFA business is based on the following Group entity specific characteristics:
• asset mix (instead of the EIOPA reference portfolio considered by Solvency II);
• a duration ratio aimed to better reflect the assets and liabilities matching (instead of 65% required by Solvency II)).
Tables below include the zero-coupon rate of the main markets in which the Group operates, divided for VFA e not-VFA portfolios.
230
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
IFRS 17 discounting curve ZC - Contract portfolios measured under VFA
Currency Italy France Germany Austria Switzerland Czech Republic China
EUR EUR EUR EUR CHF CZK CNY
Maturity (years) 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022
1 4.15% 4.03% 3.86% 3.72% 3.85% 3.72% 3.77% 3.63% 1.25% 1.60% 5.19% 6.51% 2.15% 2.44%
2 3.48% 4.14% 3.19% 3.83% 3.18% 3.83% 3.10% 3.74% 1.22% 1.69% 4.14% 6.23% 2.19% 2.63%
3 3.23% 4.05% 2.94% 3.74% 2.93% 3.74% 2.85% 3.65% 1.18% 1.78% 3.68% 5.78% 2.29% 2.80%
4 3.14% 4.00% 2.85% 3.69% 2.84% 3.69% 2.76% 3.60% 1.15% 1.87% 3.49% 5.36% 2.40% 2.93%
5 3.11% 3.98% 2.82% 3.67% 2.81% 3.67% 2.73% 3.58% 1.13% 1.95% 3.41% 5.05% 2.51% 3.04%
6 3.11% 3.96% 2.82% 3.65% 2.81% 3.65% 2.73% 3.56% 1.14% 2.01% 3.37% 4.87% 2.58% 3.12%
7 3.12% 3.94% 2.83% 3.63% 2.82% 3.63% 2.74% 3.54% 1.16% 2.06% 3.36% 4.75% 2.63% 3.19%
8 3.14% 3.94% 2.85% 3.63% 2.84% 3.63% 2.76% 3.54% 1.18% 2.11% 3.36% 4.68% 2.68% 3.26%
9 3.16% 3.94% 2.87% 3.63% 2.86% 3.63% 2.78% 3.54% 1.21% 2.15% 3.37% 4.64% 2.73% 3.31%
10 3.18% 3.94% 2.89% 3.63% 2.88% 3.63% 2.80% 3.54% 1.24% 2.18% 3.38% 4.60% 2.78% 3.37%
15 3.26% 3.87% 2.97% 3.56% 2.96% 3.56% 2.88% 3.47% 1.41% 2.27% 3.42% 4.49% 3.03% 3.58%
20 3.20% 3.61% 2.91% 3.30% 2.90% 3.30% 2.82% 3.21% 1.56% 2.27% 3.44% 4.38% 3.26% 3.73%
25 3.18% 3.49% 2.91% 3.20% 2.90% 3.20% 2.83% 3.11% 1.69% 2.24% 3.45% 4.26% 3.43% 3.84%
30 3.20% 3.44% 2.95% 3.18% 2.94% 3.18% 2.88% 3.10% 1.78% 2.20% 3.46% 4.17% 3.57% 3.93%
35 3.22% 3.42% 3.00% 3.19% 2.99% 3.19% 2.93% 3.12% 1.86% 2.16% 3.46% 4.08% 3.69% 3.99%
40 3.23% 3.41% 3.04% 3.20% 3.03% 3.20% 2.98% 3.14% 1.93% 2.13% 3.46% 4.02% 3.78% 4.05%
45 3.25% 3.41% 3.08% 3.22% 3.07% 3.22% 3.03% 3.17% 1.98% 2.09% 3.46% 3.96% 3.85% 4.09%
50 3.27% 3.41% 3.11% 3.24% 3.11% 3.24% 3.06% 3.19% 2.02% 2.07% 3.46% 3.91% 3.91% 4.13%
IFRS 17 discounting curve ZC - Contract portfolios measured under non - VFA
Currency EUR CHF CZK CNY
Maturity (years) 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022
1 3.56% 3.37% 1.14% 1.48% 5.34% 6.75% 1.97% 2.16%
2 2.89% 3.48% 1.11% 1.57% 4.29% 6.47% 2.01% 2.35%
3 2.64% 3.39% 1.07% 1.66% 3.83% 6.02% 2.11% 2.52%
4 2.55% 3.34% 1.04% 1.75% 3.64% 5.60% 2.22% 2.65%
5 2.52% 3.32% 1.02% 1.83% 3.56% 5.29% 2.33% 2.76%
6 2.52% 3.30% 1.03% 1.89% 3.52% 5.11% 2.40% 2.84%
7 2.53% 3.28% 1.05% 1.94% 3.51% 4.99% 2.45% 2.91%
8 2.55% 3.28% 1.07% 1.99% 3.51% 4.92% 2.50% 2.98%
9 2.57% 3.28% 1.10% 2.03% 3.52% 4.88% 2.55% 3.03%
10 2.59% 3.28% 1.13% 2.06% 3.53% 4.84% 2.60% 3.09%
15 2.67% 3.21% 1.31% 2.15% 3.57% 4.73% 2.87% 3.32%
20 2.61% 2.95% 1.48% 2.16% 3.58% 4.60% 3.12% 3.51%
25 2.63% 2.87% 1.61% 2.14% 3.58% 4.46% 3.32% 3.65%
30 2.70% 2.89% 1.72% 2.11% 3.58% 4.34% 3.47% 3.76%
35 2.77% 2.93% 1.81% 2.08% 3.57% 4.24% 3.60% 3.85%
40 2.84% 2.98% 1.88% 2.06% 3.56% 4.15% 3.70% 3.92%
45 2.90% 3.02% 1.94% 2.03% 3.55% 4.08% 3.78% 3.98%
50 2.95% 3.06% 1.98% 2.01% 3.54% 4.02% 3.85% 4.03%
231
Consolidated Financial Statements
Risk Adjustment
The Risk Adjustment corresponds to the component of the insurance liability that captures the uncertainty the entity bears on the
amount and timing of cash flows arising from non-financial risk. In evaluating the Risk Adjustment, the Group considers the following
scope of risks:
• Life and Health Underwriting risks (i.e., mortality and mortality catastrophe, longevity, lapse, morbidity);
• P&C Underwriting risks (i.e., Reserving risk and Pricing risk, Lapse and CAT risks);
• Expense risk.
The Group RA reflects the risk diversification at legal entity level only, not benefitting from diversification among different legal entities
and between life and property & casualty segments.
Differently from Solvency II framework for which the Cost of Capital method is applied to quantify the Risk Margin, IFRS 17 does not
prescribe a specific method to calculate the Risk Adjustment. In this context, the Group defines the RA as the value at risk at the
75th percentile of the PVFCF probability distribution, leveraging on methodology and calculation models developed for the Solvency
II Internal Model.
Similarly to Solvency II, where the Solvency Capital Requirement corresponds to the value at risk of the basic own funds of the
insurance or reinsurance undertaking subject to a confidence level of 99.5% over a period of one year, the percentile considered for
the purposes of calculating RA refers to the probability distribution of losses over a one-year horizon, however applied to the entire
cash flow projection of the liability portfolio.
For the sake of comparison, please note that the 75-th percentile applied by the Group adopting a “one-year” approach is estimated
to be approximately equivalent, at Group level, to the following percentiles determined on the basis of an “ultimate” view, i.e.,
considering a risk distribution that reflects cash -flows volatility on a multi-year horizon, consistent with liability’s duration:
• the 60-th percentile for Life segment – assuming a normal distribution of future cash flows;
• the 70-th percentile for P&C segment – deriving from “ultimate” distribution of P&C Underwriting risks.
Contractual Service Margin
The Contractual Service Margin reflects the estimate of the unearned profit of a group of insurance contracts that has not yet been
recognized in profit or loss at the reporting date, because it relates to future service still to be provided.
The carrying amount of the CSM at the end of the reporting period is equal to the carrying amount at the beginning of the reporting
period adjusted by:
• the New Business contribution;
• the impact of changes in non-financial variables on future fulfilment cash flows or experience variances of the reporting period
related to future services (i.e., operating variances). Not exhaustive examples of these variances, can be represented by updates
of operating assumptions or by differences between expected and observed cash flows relating to non-distinct investment
components (e.g., surrenders for savings products);
• the impact of financial variables on current and future fulfilment cash flows (i.e., economic variances), which includes:
- under GMM measurement model, interest accreted on CSM. Interest accreted is determined on the basis of discount rates
identified at the date of initial recognition of the group of contracts (the so called locked- in rate);
- under VFA measurement model, the unwinding of discount on the carrying amount of the CSM determined at current rates, the
systematic economic variance due to the expected realization of the real- world assumptions over risk-free rates in the reporting
period and the other non-systematic economic variances;
• the effect of currency exchange differences;
• CSM release in the income statement including both the systematic economic variance due to expected realization of real-world
assumptions over risk-free rates and a quota of opening CSM, new business, operating variances, unwinding and non-systematic
economic variances based on the pattern of services rendered over time defined by means of appropriate coverage units.
Contractual Service Margin release
IFRS 17 requires to calculate the release of CSM in accordance to the pattern of the coverage units that are determined by
considering for each contract the quantity of the benefits provided to the policyholder and its expected coverage duration.
Depending on the type of service provided, the coverage unit and the related quantity of benefit are defined by the Group Legal
entities following centrally defined Group rules that varies on the basis of product’s features and type of coverage:
• in case of Saving contracts, the coverage units are generally defined as a function of the assets under management;
• in case of contracts providing only insurance services, the coverage units are generally defined as a function of the sum insured;
• in case of contracts that envisages a bundling of services, hybrid approaches are generally adopted (e.g., combination of assets
under management and sum insured).
Future coverage units used to determine the CSM release are generally discounted. In details:
• for GMM business, coverage units are discounted using the reference locked -in curve of each group of insurance contracts,
• for VFA business, in order to avoid undue CSM release volatility caused by the fluctuations of interest rates, a 10- year rolling
weighted average curve is applied.
232
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
The coverage unit mechanics spread over the duration of the insurance contracts the opening and new business CSM as well as the
variances, including the systematic economic variance, defined as the impact on the CSM of the excess of real-world returns over
risk-free rates over a projection horizon that is consistent with the reporting period.
According to the Group’s position, this “systematic” variance reflects the investment-related services provided to the policyholder
and, as such, consistently with IFRS 17 requirements, is considered as an adjustment to the coverage units of the reporting period.
This approach allows to avoid the deferral of the systematic economic variance and its concentration towards the end of the
projection horizon (so called “bow-wave” effect).
The systematic variance is determined with expected hypotheses defined at the beginning of the reporting period assuming that a
long-term risk premium (so-called over-the-cycle) is achieved for some classes of risky assets; for the Euro area for example:
• for equity investments, the Group applies a risk premium of 4% above the yield of the ten-year German government bond,
• for real estate investments, the Group applies a risk premium of 3% above the yield of the ten-year German government bond,
• for investments in private equity the Group applies a risk premium of 6.5% above the yield of the ten-year government bond.
No risk premium is taken into account for corporate and government bonds, as market risk-adjusted spreads are already included
in the illiquidity premium.
Acquisition cash flows
Insurance acquisition cash flows (IACF) are generally identified under IFRS 17 with reference to those acquisition costs incurred at
initial recognition of insurance contracts. Any insurance acquisition cash flows paid in advance (i.e., before the coverage period starts)
or unconditionally paid to the distribution channels embedding a renewal probability are considered out of contractual boundaries
and recognized as an asset. In applying the PPA model, the insurance acquisition cash flows occurred after the inception date are
not recognize as expenses if paragraph 59(a) of IFRS 17 applies.
The IACF asset is allocated on a systematic basis on the group of insurance contracts to which they belong to. Consequently, the
allocated amount of IACF asset is recognized as part of:
• the fulfilment cash flows and reduce the CSM of the related group of contracts for contracts measured under GMM and VFA;
• the liability for remaining coverage for contracts measured under PAA.
When applying GMM and VFA, the amortisation of the IACF asset follows the same coverage unit pattern used for releasing the
CSM. If, however, the IACF asset relates to insurance contracts accounting for under the PAA model, the amortisation follows the
release of the LRC.
For group of contracts to be recognized or for the future renewals or for contracts that have a delay in the beginning of the coverage,
in case the expected net inflow (including Risk Adjustment) does not exceed the IACF assets, an impairment of the asset should be
considered and reported in profit or loss. At each reporting date, if a reversal of impairment is recognized based on the outcome of
the impairment test, the IACF asset is increased, and a gain is recognized in profit or loss.
Insurance finance income and expenses
The Group applies the disaggregation approach to its existing portfolio of insurance contracts issued and reinsurance contracts held
recognizing any change in discount rates into other comprehensive income. This accounting policy choice is applied consistently at
the level of a portfolio of insurance contracts issued and reinsurance contracts held.
Investments
Land and Buildings (Investment Properties)
In accordance with IAS 40, this item includes land and buildings held to earn rentals or for capital appreciation or both. Land and
buildings for own activities and property inventories are instead classified as tangible assets.
To measure the value of land and buildings (investment properties), the Group applies the cost model set out by IAS 40 and adopts
the depreciation criteria defined by IAS 16. Please refer to the paragraph on land and buildings (self-used) for information about
criteria used by the Group.
For investment properties underlying contracts with direct participation features (for a share at least equal to or greater than 50%),
the Group adopts fair value measurement through profit or loss, in line with provisions of paragraph 32A of IAS 40. For additional
details on the measurement of these land and buildings, please refer to section Fair Value.
233
Consolidated Financial Statements
Investments in subsidiaries, associated companies and joint ventures
This item includes investments in subsidiaries and associated companies valued at equity or at cost. Immaterial investments in
subsidiaries and associated companies, as well as investments in associated companies and interests in joint ventures valued using
the equity method belong to this category.
For investments in subsidiaries, associated companies and joint ventures underlying contracts with direct participation features (for
a share at least equal to or greater than 50%), the Group adopts fair value measurement through profit or loss, in line with provisions
of paragraph 18 of IAS 28. For additional details on the measurement of these investments, please refer to section Fair Value.
A list of such investments, excluding investments in subsidiaries, associated companies and joint ventures at cost, is shown in
attachment to this Consolidated financial statement.
Financial assets
IFRS 9 envisages a classification approach for financial instruments based on models through which financial instruments are
managed (business models) and on their contractual cash flow characteristics (SPPI test - Solely Payments of Principal and Interest).
The standard identifies three possible business models:
• “Hold to collect” with the aim of holding financial assets to maturity and collecting the contractual cash flows.
• “Hold to collect and sell” with the aim of holding financial assets, both to collect the contractual cash flows and to realise gains
from their sale.
• “Other” which covers all cases not included in the previous two business models.
The “Hold to collect and sell” model is the main business model for the Group. There are a limited number of exceptions, largely
referring to the banking business, for which the specific business characteristics were considered in determining the main business
model and were consistently reflected in the accounting classification of the related portfolios.
In addition to the analysis related to the business model, the standard requires analysis of the contractual terms of financial assets. To
allow their classification at amortised cost or at fair value through other comprehensive income, cash flows generated by the financial
asset must be represented by Solely Payments of Principal and Interest (SPPI test). This analysis is conducted, in particular, for debt
securities and loans, at individual financial instrument level, and from the moment of initial recognition in the financial statements.
The contractual cash flow analysis for a financial asset must be based on the general concept of “basic lending arrangement”.
Where specific contractual clauses introduce exposure to risk or volatility of contractual cash flows that are not consistent with this
concept, the contractual flows are not compliance with the SPPI requirements (e.g., cash flows exposed to changes in share, index
or commodity prices). If there are contractual conditions that modify the time value of money element, a “benchmark cash flows test”
should be performed - considering quantitative and qualitative elements - to confirm whether the contractual cash flows still satisfy
the SPPI requirements.
In accordance with the results of the business model and SPPI test, financial assets can be classified in the following accounting
categories.
Financial assets at amortised cost
Financial assets at amortised cost include debt instruments managed under the “Hold to collect” business model, the contractual
terms for which are represented solely by payments of principal and interest (SPPI test passed).
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include debt instruments managed under the “Hold to collect and
sell” business model, the contractual terms for which are represented solely by payments of principal and interest (SPPI test passed).
Moreover, this category includes equity instruments held in portfolios other than those covering contracts underlying insurance
contracts with direct participation features (VFA business), for which the Group has adopted the option of designation at fair value
234
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include all financial assets managed under the “Other” business model and
financial assets compulsorily measured at fair value due to failing the SPPI test.
For equity instruments, the standard requires the measurement at fair value through profit or loss, except for instruments that are
not held for trading purposes, for which the option of irrevocable designation at fair value through other comprehensive income is
adopted. If this option is adopted, income components other than dividends cannot be recycled in the income statement.
There is also the option, on initial recognition, to designate a financial instrument at fair value through profit or loss if that would
eliminate or significantly reduce the accounting mismatch in the measurement of assets or liabilities or recognition of gains and losses
related to them.
Other financial assets
The category includes other financial assets not included in item Investments, such as trade receivables, receivables towards
insurance intermediaries and financial assets referred to in IFRS 15 – Revenue from Contracts with Customers.
Impairment
In line with IFRS 9 accounting standard dictates, Generali Group introduced an impairment model to determine expected credit
losses (ECL) in accordance with the principle’s guidelines which recommends, for each financial instrument categorized as either
bond, loans or trade receivables and it is accounted for as amortised cost or fair value through other comprehensive income, the
assessment of its credit risk (probability of default, PD) and potential consequential loss (loss given default, LGD) necessary to
determine the corresponding expected loss.
Above mentioned parameters must be estimated based on all information available without undue costs or efforts regarding past
events, current economic situation, and future forecasts, and considering a pool of possible scenarios. The Group decided to
determine expected losses starting from three scenarios: a baseline one and two alternative scenarios, respectively an optimistic and
a conservative one both compared to the central estimate of the evolution of macroeconomic variables.
The standard foresees also three different credit risk stages in which an entity should classify various financial assets:
• in the first stage falls all debt securities and loans that do not show a significant increase in credit risk since the initial recognition
date or that present low credit risk at reporting date. For these assets, expected losses for the next 12 months (one year ECL) are
recognized in the income statement. Interest income recognized on these assets is calculated on the gross carrying amount of
the financial asset.
• the second stage includes all debt instruments and loans that, at reporting date, present a significant increase in credit risk
compared to the initial recognition, but do not show evidences of impairment. For these assets, expected losses resulting from
all possible default events over the entire remaining life of the instrument (lifetime ECL) are recognized in the income statement.
Interest income recognized on these assets is calculated on the gross carrying amount of the financial asset.
• the third stage consist of all debt instruments and loans that show evidence of impairment. For these assets, the expected loss
is defined as the difference between the present value of contractual cash flows and the present value of cash flows estimated in
relation to the default process. Interest income recognized on these assets is calculated on the net carrying amount of the financial
assets.
With regards to its own investment portfolio and the assessment of expected losses, Generali Group has devised two distinct
models, tailored to the unique characteristics of main financial asset classes within the portfolio. Specifically:
• bonds and bond likes; and
• trade receivables and loans to individuals.
Regarding investments in Bond and bond likes, the calculation of expected credit losses is based on the assessment of each
single position, intended as the sum of exposures to a specific instrument which have identical characteristics at the time of
acquisition.
The identified positions undergo an evaluation that quantifies their creditworthiness, considering the respective sector and country
of risk, thereby defining a specific probability of default and consequential loss.
More in detail, the definition of probability of default, intended as the inability to meet the expected payment of principal or interest,
originates from the quantification of the generic credit risk (through the cycle) of the issuer, expressed through the usage of credit
ratings. Subsequently, each position is associated with a probability of default related to the issuer’s credit risk in the specific
economic context (point in time) and with a probability of default related to future expectations (forward-looking) according to specific
models designed to consider sector and country of risk characteristics.
These pieces of information are used both for estimating the twelve-month probability of default and the lifetime probability of default.
Subsequently, the same quantitative information, combined with qualitative elements and managerial assessments, is utilized to
define any significant increase in credit risk.
It is worth noting that within the methodologies used by the Group for quantifying the significant increase in credit risk, the so-called
low credit risk exemption is not directly taken into account, whereas for what regards the classification within the third stage, the
process can originate from by the quantitative results of the stage allocation process or by a managerial decision, but it is always
235
Consolidated Financial Statements
The probability of default thus identified, combined with a loss given default also parameterized at single instrument level, based on
issuer’s characteristics and debt seniority, is then attributed to each single position exposure at default, in order to finally determine
the expected credit loss.
For what concerns trade receivables and loans to individuals, also referred to as ‘other than bonds,’ a dedicated ECL model has
been defined to allow the quantification of the probability of default, despite their intrinsic characteristics that do not permit the use
of public or market information (e.g., ratings).
According to this model, the probability of default and the related loss given default result from a retrospective analysis of each
company’s portfolio. This analysis aims to identify trends and define risk classes among companies’ positions, which are then used
to classify borrowers based on the duration of non-performing periods and subsequently define corresponding PD and LGD.
In particular, starting from these risk classes and constantly observing the evolution of the loan portfolio over time, a point-in-time
probability of default is then determined. This probability is subsequently transformed into a forward-looking estimate through the
usage of a dedicated satellite model which aims at linking the evolution of the probability of default to specific macroeconomic
indexes.
Also stage allocation process leverages on the analysis of non-performing positions and it foresees, for installment loans, the
possibility of allocation to first, second, or third stage, while for trade receivables, a simplification allowed by IFRS 9 is applied where
stage allocation process is bypassed, and expected credit losses are calculated directly throughout the instruments’ entire life.
It is worth noting that, given the heterogeneous composition of trade receivables and loans to individuals portfolios within Group’s
companies, as well as the Group’s nature of financial conglomerate, the adoption of specific local procedures is encouraged where
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is de-recognised when:
• the rights to receive cash flows from the asset have expired;
• the Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash
flows in full without material delay to a third party under a pass-through arrangement; and either (a) the Group has transferred
substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks
and rewards of the asset, but has transferred control of the asset.
When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement,
it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained
substantially all of the risks and rewards of the asset, nor transferred control of the asset, the asset is recognised to the extent of the
Group’s continuing involvement in the asset. In that case, the Group also recognises an associated liability. The transferred asset
and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained. Continuing
involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of
the asset and the maximum amount of consideration that the Group could be required to repay.
Other assets
Non-current assets or disposal groups classified as held for sale, tax receivables, deferred tax assets, and other assets not classified
in other items of assets are classified in this item.
Non-Current Assets or Disposal Groups Classified as Held For Sale
This item comprises non-current assets or disposal groups classified as held for sale under IFRS 5. Non-current assets and disposal
groups are classified as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than
through continuing use. The criteria for held for sale classification is regarded as met only when the sale is highly probable, and the
asset or disposal group is available for immediate sale in its present condition. Management must be committed to the sale, which
should be expected to qualify for recognition as a completed sale within one year from the date of classification.
They are measured at the lower of their carrying amount and fair value less costs to sell.
Discontinued operations are excluded from the results of continuing operations and are presented as a single amount in profit or loss
after tax from discontinued operations in the income statement.
Deferred tax assets
Deferred tax assets are recognized for deductible temporary differences between the carrying amounts of assets and liabilities and
the corresponding amounts recognized for tax purposes.
In the presence of tax losses carried forward or unused tax credits, deferred tax assets are recognized to the extent that it is probable
that future taxable profit will be available against which the aforementioned tax losses or unused tax credits.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised
in correlation to the underlying transaction either in other comprehensive income or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to offset current tax assets against current
income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
236
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Deferred tax assets are measured at the tax rates that are expected to be applied in the year when the asset is realized, based on
information available at the reporting date.
Deferred tax assets are not recognized in the following cases provided in paragraph 24 of IAS 12:
• when the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability
in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor
taxable profit or loss;
• in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint
ventures, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the
foreseeable future and taxable profit will be available against which the temporary differences can be utilised;
• for all deductible temporary differences between the carrying amount of assets or liabilities and their tax base to the extent that it
Tax receivables
Receivables related to current income taxes as defined and regulated by IAS 12 are classified in this item. They are accounted for
based on the tax laws in force in the countries where the consolidated subsidiaries have their offices.
Current income tax relating to items recognised directly in equity are recognised in equity and not in the income statement.
Other assets
This item comprises deferred commissions for investment management services related to investment contracts. Deferred fee and
commission expenses include acquisition commissions related to investment contracts without DPF fair valued as provided for by
IFRS 9 as financial liabilities at fair value through profit or loss. Acquisition commissions related to these products are accounted for
in accordance with the IFRS 15. For further information please refer to paragraph Revenues from contracts with customers within
to scope of IFRS 15.
Deferred commissions for investment management services are amortised, after assessing their recoverability in accordance with
IAS 36.
Tax credits not arising from Income Taxes, therefore out of the scope of IAS 12 (including tax credits acquired on the market) are also
included among Other assets).
Cash and cash equivalents
Cash in hand and equivalent assets, cash and balances with banks payable on demand (including treasury current accounts with
negative balances at the end of the period) and with central banks are accounted for in this item at their carrying amounts.
Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant
risk of changes in value are included in this item. Investments are qualified as cash equivalents only when they have a short maturity
Balance sheet - Equity and Liabilities
Shareholder’s equity
Shareholder’s Equity Attributable to the Group
Share Capital
Ordinary shares are recognized as share capital and their value equals the nominal value.
Other equity instruments
The item includes preference shares and equity components of compound financial instruments.
Capital reserves
237
Consolidated Financial Statements
Revenue reserves and other reserves
The item comprises retained earnings or losses adjusted for the effect of changes arising from the first-time application of IAS/IFRS
(including IFRS 9 and IFRS 17), the reserve deriving from the derecognition of equity instruments designated at fair value through
other comprehensive income, the reserve for changes in fair value with impact on other comprehensive income of investments in
subsidiaries, associated companies and joint ventures measured at fair value, the reserve deriving from the application of the IAS 29,
reserves for share-based payments, legal reserves envisaged by the Italian Civil Code and special laws before the adoption of IAS,
as well as reserves from the consolidation process.
Own shares
As provided for by IAS 32, the item includes equity instruments of the Parent company held by the same company or by its
consolidated subsidiaries.
Valuation reserves
The item mainly includes:
• exchange differences to be recognised in equity in accordance with IAS 21, which derive from accounting for transactions in
foreign currencies and from the translation of subsidiaries’ financial statements denominated in foreign currencies;
• gains or losses arising from changes in the fair value of financial assets at fair value through other comprehensive income, as
previously described in the corresponding item of investments. The amounts are accounted for net of the related deferred taxes
and deferred policyholder liabilities;
• gains or losses arising from changes in the fair value of equity instruments designated at fair value through other comprehensive
income, as previously described in the corresponding item of investments. The amounts are accounted for net of the related
deferred taxes and deferred policyholder liabilities;
• finance income and expenses related to existing insurance contracts issued and reinsurance contracts held for which the Group
applies the disaggregation approach;
• gains or losses on cash flow hedging instruments and gains or losses on hedging instruments of a net investment in a foreign
operation;
• profits and losses relating to defined benefit plans; and
• the part of the balance sheet reserves whose variation is part of the comprehensive income of participations and those relating to
non-current assets or disposal groups classified as held for sale.
Shareholder’s Equity attributable to minority interests
The item comprises equity instruments attributable to minority interests. It also includes also unrealized gains and losses on financial
assets at fair value through other comprehensive income and any other gains or losses recognized directly in equity attributable to
minority interests.
Result of the period attributable to the Group
The item refers to the Group consolidated result of the period. Dividend payments are accounted for after the approval of the
Result of the period attributable to minority interests
This item refers to the consolidated result of the period attributable to minority interests.
Other provisions
Provisions for risks and charges are provided only when it is deemed necessary to respond to an obligation (legal or implicit) arising
from a past event and it is probable that an outflow of resources whose amount can be reliably estimated, as required by IAS 37 -
37 – Provisions Contingent Liabilities and Contingent Assets.
Within this item are also included financial guarantees issued within the scope of IFRS 9 and related loss allowance, commitments
to provide a loan at a below-market interest rate and related loss allowance, and loss allowance on loan commitments that are not
within the scope of IFRS 9.
Financial liabilities
238
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Financial liabilities at fair value through profit or loss
The item refers to financial liabilities at fair value through profit or loss, as defined and regulated by IFRS 9. In detail, it includes
financial liabilities related to investment contracts where the investment risk is borne by the policyholders, other financial liabilities
designated at fair value through profit or loss, as well as derivative liabilities.
IFRS 9 requires that the amount of change in fair value of financial liabilities at fair value through profit or loss attributable to changes
in the credit risk of that liability shall be presented in other comprehensive income. The Group does not hold liabilities with own credit
risk. The only financial liabilities designated at fair value through profit or loss are investment contracts, the value change of which is
therefore linked to the underlying asset and not to credit risk of the liability.
Financial liabilities at amortised cost
The item includes financial liabilities measured at amortised cost within the scope of IFRS 9.
This item comprises both subordinated liabilities, which, in the case of bankruptcy, are to be repaid only after the claims of all other
creditors have been met, and hybrid instruments.
Bond instruments issued are measured at issue price, net of costs directly attributed to the transaction. The difference between the
aforesaid price and the reimbursement price is recognised along the duration of the issuance in the profit and loss account using the
effective interest rate method.
Furthermore, it includes liabilities to banks or customers, deposits received from reinsurers, bonds issued, lease liabilities, other loans
and financial liabilities at amortised cost related to investment contracts that do not fall under IFRS 17 scope.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled, or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and
Payables
This item includes other financial liabilities not included in item Financial liabilities. In particular within this item are included provisions
for the Italian trattamento di fine rapporto (employee severance pay). These provisions are accounted for in accordance with IAS
19 - Employee Benefits.
Other liabilities
The item comprises liabilities not elsewhere accounted for. In detail, it includes liabilities directly associated with non-current assets
and disposal groups classified as held for sale, tax payables and deferred tax liabilities and other liabilities.
Liabilities Associated With Non-Current Assets and Disposal Groups
Classified As Held For Sale
The item includes liabilities directly associated with a disposal group, for which assets are equally classified as held for sale, as by
defined by IFRS 5.
Deferred tax liabilities
Deferred tax liabilities are recognised for all taxable temporary differences between the carrying amount of assets and liabilities and
their tax base, Deferred tax liabilities are measured at the tax rates that are expected to be applied in the year when temporary
differences will be taxable, are based on the tax rates and tax laws enacted or substantively enacted at the reporting date.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised
in correlation to the underlying transaction either in other comprehensive income or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current
income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
Deferred tax liabilities are not recognized in the following cases provided for in paragraph 15 of IAS 12:
• when the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a
business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;
• in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures,
when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will
239
Consolidated Financial Statements
Tax payables
The item includes payables due to tax authorities for current taxes. Current income tax relating to items recognised directly in
equity is recognised in equity and in the comprehensive income, while not in the income statement. This item includes also the
uncertainties in the accounting treatment of income taxes, as required by IFRIC 23 – Uncertainty over Income Tax Treatments.
Other liabilities
This item includes provisions for defined benefit plans, such as termination benefit liabilities and other long-term employee benefits
(the Italian provision for trattamento di fine rapporto is excluded and classified within Payables). In compliance with IAS 19, these
provisions are measured according to the project unit credit method. This method implies that the defined benefit liability is influenced
by many variables, such as mortality, employee turnover, salary trends, expected inflation, expected rate of return on investments,
etc. The liability recognised in the balance sheet represents the net present value of the defined benefit obligation less the fair
value of plan assets (if any), adjusted for any actuarial gains and losses and any past service costs not amortised. The rate used to
discount future cash flows is determined by reference to market yields on high-quality corporate bonds. The actuarial assumptions
are periodically tested to confirm their consistency. The actuarial gains and losses arising from subsequent changes in variables used
to make estimates are recognised shall be accounted for in other comprehensive income without any possibility of recycling to profit
and loss. Deferred fee and commission income include acquisition loadings related to investment contracts without DPF, which are
classified as financial liabilities at fair value through profit or loss, according to IFRS 9.
Profit and loss account
Insurance service result
This item includes insurance revenue and insurance expenses related to insurance contracts issued or reinsurance contracts
held.
Insurance revenue from insurance contracts issued or from reinsurance
contracts held
This item includes revenue from insurance contracts issued which reflect the portion of the consideration received from the
policyholder which is deemed to be due for the services provided in the period. The recognition of insurance revenues in the income
statement depends on the measurement model applied.
For insurance contracts that fall within the General Measurement Model or the Variable Fee Approach, the revenues recognized
in the reference period are mainly represented by the release of the CSM (on the basis of the coverage units as better detailed in
the chapter Contractual Service Margin release); by the adjustment for the non-financial risk relating to current services and from
changes in liabilities for remaining coverage for incurred claims and other expenses for expected insurance services, in addition to
the recovery of the relevant share of acquisition costs.
In the context of the Premium Allocation Approach model, the insurance revenues for the period are instead equal to the amount of
expected premium receipts attributed to the period (excluding investment components) on the basis of the passage of time. In the
event that the expected pattern of release of insurance risk during the coverage period differs significantly from the passage of time,
a release model is identified on the basis of the expected timing of future claims and costs.
With reference to reinsurance contracts held, this item includes the amounts recovered from the reinsurers such as, for example, the
amount of losses recovered on insurance contracts, in addition to the positive balance between recoveries and value adjustments
connected with the expected losses arising from the risk of default by the reinsurer.
Insurance service expenses from insurance contracts issued or from
reinsurance contracts held
Insurance service expenses from insurance contracts issued are mainly composed of:
• claims incurred during the year (excluding investment components) and other directly attributable expenses;
• change in liabilities for incurred claims;
• losses on onerous groups of contracts;
• commissions and expenses for the acquisition of insurance contracts, amortised or entirely recognised in profit or loss in the
period;
• management expenses related to investments backing insurance contracts to which VFA is applied.
240
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
For reinsurance contracts held, expenses of the period are represented by the allocation of the premiums paid in the period, net of
the amounts expected by the reinsurers which are not connected with the claims relating to the underlying insurance contracts, in
addition to the other acquisition costs entirely recognized in profit or loss and the negative balance between recoveries and value
adjustments connected with expected losses deriving from the risk of default by the reinsurer.
Result of investments
Income/expenses from financial assets and liabilities at fair value through
profit or loss
The item comprises realized gains and losses, interests, dividends and unrealized gains and losses on financial assets and liabilities
measured at fair value through profit or loss.
Income/expenses from investments in subsidiaries, associated companies
and joint ventures
The item comprises income and expenses of investments in associated companies and joint ventures, which are accounted for in
the corresponding asset item of the balance sheet and it is related to the Group share of result attributable to each associate or joint
venture.
Income/expenses from other financial assets and liabilities and investment
properties
The item includes income and expenses from financial instruments not at fair value through profit or loss and from land and
buildings (investment properties). In detail, it includes interest income calculated using the effective interest method, interest
expenses, other income including dividends from equity instruments which are recognised when the right arises, income from
properties used by third parties, expenses on land and buildings (investment properties) (such as general property expenses and
maintenance and repair expenses not recognised in the carrying amount of investment properties); realized gains and realized
losses from financial assets, financial liabilities and investment properties; depreciations, impairment and reversals of impairment
of investment properties; unrealized gains and losses from investment properties underlying contracts with direct participation
features.
This item includes also the balance, positive or negative, between expected credit losses allocation and reversal on financial assets
at amortised cost and at fair value through other comprehensive income.
Net finance result
Net finance result is composed of result of investments, net finance income/expenses related to insurance contracts issued and net
finance income/expenses related to reisurance contracts held.
Net finance income/expenses related to insurance contracts issued
The item includes the balance, positive or negative, of changes in carrying amount of insurance contracts issued related to effects
of time value of money, as well as effects of financial risks arising from cash flows of insurance contracts issued, different from those
that are recognized in other comprehensive income.
As previously highlighted, the Group applies the disaggregation approach to its existing portfolio of insurance contracts issued and
reinsurance contracts held recognizing any change in discount rates into other comprehensive income. In particular:
• for insurance contracts measured under VFA, the insurance finance expenses to be included in profit or loss are an amount that
offsets the finance income arising on the financial underlying items, resulting in the net of the separately items being nil;
• for insurance contracts measured under GMM and for the LRC of insurance contracts measured under PPA, the insurance finance
expenses to be included in profit or loss are only the amount arising by discounting insurance liabilities with the discount rates
determined at initial recognition (i.e. locked-in rate). Any changes in financial assumptions arising from the application of currents
rates are accounted for in the other components of the statement of comprehensive income;
• for the LIC of insurance contracts measured under PAA the insurance finance expenses to be included in profit or loss are only
the amount arising by discounting LIC with the discount rates determined at incurred claims date (i.e. “accident-year” rate). Any
changes in financial assumptions arising from the application of currents rates are accounted for in the other components of the
statement of comprehensive income.
241
Consolidated Financial Statements
This item also includes changes of groups of insurance contracts with discretionary participation features related to effects and
variations of financial risks that do not modify contractual service margin because subject to mitigation of financial risks with the
use of derivatives, financial instruments measured at fair value through profit or loss, or reinsurance contracts held (so-called risk
mitigation).
Net finance income/expenses related to reinsurance contracts held
The item includes the balance, positive or negative, of changes in carrying amount of reinsurance contracts held related to effects
and variations of time value of money, as well as effects and variations of financial risks arising from cash flows of reinsurance
contracts held, different from those that are recognized in other comprehensive income.
Other income/expenses
The item includes revenue arising from sale of goods and rendering of services other than financial services, gains and losses
on foreign currency accounted for under IAS 21, realized gains and losses and impairment, depreciation and reversals of
impairment on self-used land and buildings, tangible assets and other assets, unrealized gains and losses from properties
underlying contracts with direct participation features and gains and losses on the re-measurement of non-current assets or
disposal groups classified as held for sale, other than discontinued operations. The item includes also fee and commission
expenses for financial services rendered by companies belonging to the financial segment and fee and commission expenses
related to investment contracts.
Acquisition and administration costs
The item includes acquisition and administration costs for investment management, such as overheads and personnel expenses for
investment management and other administration expenses, including overheads and personnel expenses related to the acquisition
and administration of investment contracts without discretionary participation features and administration expenses of non-insurance
companies.
Net provisions for risks and charges
The item contains the balance, positive or negative, between the provisions and any profit or loss releases relating to the provisions
for risks and charges.
Net impairment and depreciation of tangible assets
The item contains the balance, positive or negative, between impairment, depreciation and reversals of impairment on tangible
assets different than those related to investment properties, those related to leased assets and right of use assets acquired with the
lease and related to the use of tangible assets.
Net impairment and amortisation of intangible assets
The item contains the balance, positive or negative, between impairment, depreciation and reversals of impairment on intangible
assets, including those related to leased assets and right of use assets acquired with the lease and related to the use of intangible
assets.
Other income/charges
The item includes income and charges not attributable to the other items that contribute to the determination of the profit (loss)
242
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Income tax
The item includes income taxes for the period and for previous years, deferred taxes and tax losses carried back, as well as the tax
benefit from tax losses. This item includes also the uncertainties in the accounting treatment of income taxes, as required by IFRIC
23.
Profit (Loss) from discontinued operations
The item includes income and expenses from discontinued operations, net of taxes.
Statement of Comprehensive income
The statement of comprehensive income was introduced by the revised IAS 1 issued in September 2007 by the IASB, approved by
the EC Regulation No 1274/2008. The statement comprises items of income and expenses different from those included in profit or
loss, recognised directly in equity other than those changes resulting from transactions with shareholders.
In accordance with the ISVAP (now IVASS) Regulation No. 7 of 13 July 2007, as amended by Art. 12 of IVASS Order no. 121 of
7 June 2022, items of income and expenses are net of taxes. Total comprehensive income is divided by distinguishing the part
attributable to the Group from that attributable to minority interests.
Statement of changes in equity
The statement was prepared in accordance with the requirements of the ISVAP (now IVASS) No. 7 of 13 July 2007, as amended by
Art. 12 of IVASS Order no. 121 of 7 June 2022 and explains all the variations of equity.
Statement of cash flows
The report, prepared using the indirect method, is drawn up in accordance with the ISVAP (now IVASS) requirements n. 7 of 13 July
2007, as amended by Art. 12 of IVASS Order no. 121 of 7 June 2022, and distinguishing its component items among operating,
investing and financing activities.
Other information
Fair value
IFRS 13 - Fair Value Measurement provides guidance on fair value measurement and requires disclosures about fair value
measurements, including the classification of financial assets and liabilities in fair value hierarchy levels.
With reference to the investments, Generali Group measures financial assets and liabilities at fair value in the financial statements,
or discloses the contrary in the notes.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date (exit price). In particular, an orderly transaction takes place in the principal or most advantageous
market at the measurement date under current market conditions.
A fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either:
• in the principal market for the asset or liability; or
• in the absence of a principal market, in the most advantageous market for the asset or liability.
The fair value is equal to market price if market information is available (i.e. relative trading levels of identical or similar instruments)
into an active market, which is defined as a market where the items traded within the market are homogeneous, willing buyers and
sellers can normally be found at any time and prices are available to the public.
If there isn’t an active market, a valuation technique should be used which shall maximise the observable inputs. If the fair value
cannot be measured reliably, amortised cost is used as the best estimate in determining the fair value.
As for measurement and disclosure, the fair value depends on the unit of account, depending on whether the asset or liability is a
stand-alone asset or liability, a group of assets, a group of liabilities or a group of assets and liabilities in accordance with the related
IFRS.
However, when determining fair value, the valuation should reflect its use if in combination with other assets.
With reference to non-financial assets, fair value measurement of a non-financial asset takes into account a market participant’s
ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that
would use the asset in its highest and best use. The highest and best use of a non-financial asset takes into account the use of the
243
Consolidated Financial Statements
asset that is physically possible and legally permissible taking into account financial feasibility. However, an entity’s current use of a
non-financial asset is presumed to be its highest and best use unless market or other factors suggest that a different use by market
participants would maximise the value of the asset.
For the liabilities, the fair value is represented by the price that would be paid to transfer a liability in an orderly transaction in the
principal (or most advantageous) market at the measurement date under current market conditions (i.e. an exit price).
When a quoted price for the transfer of an identical or a similar liability or entity’s own equity instrument is not available and the
identical item is held by another party as an asset, an entity shall measure the fair value of the liability or equity instrument from the
return perspective of a market participant that holds the identical item as an asset at the measurement date. This return perspective
is determined, where relevant, also having regard to the remuneration of the capital necessary to assume this liability.
Fair value hierarchy
Assets and liabilities measured at fair value in the consolidated financial statements are measured and classified in accordance
with the fair value hierarchy in IFRS13, which consists of three levels based on the observability of inputs within the corresponding
valuation techniques used.
The fair value hierarchy levels are based on the type of inputs used to determine the fair value with the use of adequate valuation
techniques, which shall maximize the market observable inputs and limit the use of unobservable inputs:
• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date.
• Level 2 inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly
(i.e. quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets
that are not active; inputs other than quoted prices that are observable for the asset or liability; market-corroborated inputs).
• Level 3 inputs are unobservable inputs for the asset or liability, which reflect the assumptions that market participants would use
when pricing the asset or liability, including assumptions about risk (of the model used and of inputs used).
The fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is
significant to the entire measurement. Assessing the significance of a particular input to the entire measurement requires judgement,
taking into account factors specific to the asset or liability.
A fair value measurement developed using a present value technique might be categorised within level 2 or level 3, depending on the
inputs that are significant to the entire measurement and the level of the fair value hierarchy within which those inputs are categorised.
If an observable input requires an adjustment using an unobservable input and that adjustment results in a significantly higher or
lower fair value measurement, the resulting measurement would be categorised within the level attributable to the input with the
lowest level utilized.
Adequate controls have been set up to monitor all measurements including those provided by third parties. If these checks show
that the measurement is not considered as market corroborated the instrument is classified in level 3. In this case, generally the
main inputs used in the valuation techniques are volatility, interest rate, yield curves, credit spreads, dividend estimates and foreign
exchange rates.
Valuation techniques
Valuation techniques are used when a quoted price is not available or shall be appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.
Single or multiple valuation techniques valuation technique will be appropriate. If multiple valuation techniques are used to measure
fair value, the results shall be evaluated considering the reasonableness of the range of values indicated by those results. A fair value
measurement is the point within that range that is most representative of fair value in the circumstances.
Three widely used valuation techniques are:
• market approach: uses prices and other relevant information generated by market transactions involving identical or comparable
(i.e. similar) assets, liabilities or a group of assets and liabilities;
• cost approach: reflects the amount that would be required currently to replace the service capacity of an asset; and
• income approach: converts future income to the related current (i.e. discounted amount).
Application to assets and liabilities
Debt securities
Generally, if available and if the market is defined as active, fair value is equal to the market price.
In the opposite case, the fair value is determined using the market and income approach. Primary inputs to the market approach
are quoted prices for identical or comparable assets in active markets where the comparability between security and benchmark
defines the fair value level. The income approach in most cases means a discounted cash flow method where either the cash flow
or the discount curve is adjusted to reflect credit risk and liquidity risk, using interest rates and yield curves commonly observable at
frequent intervals. Depending on the observability of these parameters, the security is classified in level 2 or level 3. In particular, for
244
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Equity securities
Generally, if available and if the market is defined as active, fair value is equal to the market price.
In the opposite case, the fair value is determined using the market and income approach. Primary inputs to the market approach are
quoted prices for identical or comparable assets in active markets where the comparability between security and benchmark defines
the fair value level. The income approach in most cases means a discounted cash flow method estimating the present value of future
dividends. Depending on the observability of these parameters, the security is classified in level 2 or level 3.
Investment funds and SICAV
Generally, if available and if the market is defined as active, fair value is equal to the market price.
The fair value of investment funds is mainly determined using net asset values (NAV) at the balance sheet date or audited financial
statements provided by the responsible subjects, in case adjusted for the illiquidity of the same funds. The level of fair value hierarchy
is assigned consistently with the quality of the inputs used. If at the balance sheet date such information is not available, the latest
official net asset value is used.
With reference to SICAV, if fair value is not available or if the market is not active, the fair value is mainly determined using net asset
values provided by the responsible subjects. This value is based on the valuation of the underlying assets carried out through the
use of the most appropriate approach and inputs. Depending on how the share value is collected, directly from public providers or
through counterparts, the appropriate hierarchy level is assigned. If this NAV equals the price at which the quote can be effectively
traded on the market in any moment, the Group considers this value comparable to the market price.
Derivatives
Generally, if available and if the market is defined as active, fair value is equal to the market price.
In the opposite case, the fair value of derivatives is determined using internal valuation models or provided by third parties. In particular,
the fair value is determined primarily on the basis of income approach using deterministic or stochastic models of discounted cash
flows commonly shared and used by the market.
The main input used in the valuation include volatility, interest rates, yield curves, credit spreads, dividend estimates and exchange
rates observed at frequent intervals.
With reference to the fair value adjustment for credit and debt risk of derivatives (credit and debt valuation adjustment CVA / DVA),
the Group considered this adjustment as not material for the valuation of its positive and negative derivatives, as almost entirely of
them is collateralized. Their evaluation does not take into account for these adjustments.
Financial assets where the investment risk is borne by the policyholders and related to
pension funds
Generally, if available and if the market is defined as active, fair value is equal to the market price. On the contrary, fair value is
determined by reference to the fair value of the underlying assets.
Financial liabilities
Generally, if available and if the market is defined as active, fair value is equal to the market price.
If there is not an active market, the fair value is determined primarily on the basis of the income approach using discounting
techniques.
In particular, the fair value of debt instruments issued by the Group is valued using discounted cash flow models based on the current
marginal rates of funding of the Group for similar types of loans, with maturities consistent with the maturity of the debt instruments
subject to valuation.
The fair value of liabilities relating to investment contracts is determined by reference to the fair value of the underlying assets.
Real estate properties
Real estate properties are mainly valuated on the basis of inputs for similar assets in active markets for similar property in terms of
location and condition and subject to similar lease and other contracts or via discounted cash flows of future income and expenses
of the rental considered as part of the higher and best use by a market participant. In particular, the valuation takes into consideration
not only the discounted net future income but also the peculiarities of the properties such as intended use and location as well as
the size of the vacancy rate. Fair value is determined according to the characteristics of the real estate under assessment. However,
the hierarchy used for choosing valuation models foresees the market approach as the model to be preferred, followed by income
approach and finally by the cost approach.
In order to guarantee homogeneous methodology for fair valuation, the Group defined a structured process of evaluation of both
properties directly owned by the Group and those held through vehicles.
The fair market value of real estate properties is updated using valuations provided by independent appraisers. All appraisers
appointed comply with the international professional standards, local legal requirements and guidelines published by the Royal
Institution of Chartered Surveyors (RICS). The valuation methodology for properties leads to the determination of the market value
245
Consolidated Financial Statements
of the properties, which should reflect the definitions and methodologies stated within the international valuation standards (Red
Book and Blue Book). Generali provides the appraisers with all relevant information related to the properties (e.g., detailed tenancy
schedules, capex plan, certifications) which they use to make their assessment of projected rental revenue in addition to their own
leasing assumptions (e.g., estimated rental values, vacancy). The appraisers also make their own estimates of discount rates, exit
capitalization rates and estimated rental value (ERV). The terminal value is calculated based on net rental income capitalized by an
exit yield.
The change in valuation during 2023 was mainly attributable in the main changes in appraisers’ assumptions: negative impact by
increase in discount and exit rates linked to interest rates outbreak, partially compensated by new indexation and ERV projections.
Accounting for derivatives
Derivatives are financial instruments or other contracts with the following characteristics:
• their value changes in response to the change in interest rate, security price, commodity price, foreign exchange rate, index of
prices or rates, credit rating or other pre-defined underlying variables;
• they require no initial net investment or, if necessary, an initial net investment that is smaller than one which would be required for
other types of contracts that would be expected to have a similar response to changes in market factors;
• they are settled at a future date. Derivatives are classified as at fair value through profit or loss.
The Group carries out hedging transactions accounted for using the hedge accounting technique.
With reference to emissions of some subordinated liabilities, the Group has entered into hedging transactions of the interest rates
volatility and exchange rate fluctuations GBP/EURO, which for accounting purposes is designated as hedging the volatility of cash
flows (cash flow hedge).
According to this accounting model the portion of the gain or loss on the hedging instrument that is determined to be an effective
hedge is recognized directly in an appropriate item of comprehensive income while the ineffective portion of the gains or loss on the
hedging instrument is recognized in profit or loss.
The amount accumulated in the other components of comprehensive income is reversed to profit and loss account in line with the
economic changes of the hedged item.
When the hedging instrument expires or is sold, or the hedge no longer meets the criteria for hedge accounting, the cumulative gain
or loss on the hedging instruments, that remains recognized directly in the other components of other comprehensive income from
the period when the hedge was effective, remains separately recognized in comprehensive income until the forecast transaction
occurs. However, if the forecasted transaction is no longer expected to occur, any related cumulative gain or loss on the hedging
instrument that remains recognized directly in the other components of comprehensive income from the period when the hedge was
effective is immediately recognized in profit or loss.
Further the Group set cash flow hedges on forecast refinancing operations of subordinated liabilities that are accounted for as hedge
of forecast operations, that are highly probable and could affect profit or loss.
In addition, Group set also hedges of a net investment in a foreign operation that are accounted for similarly to cash flow hedges:
the effective portion of gain or loss on the hedging instrument is recognized among the components of profit or loss, while the part
is not effective be recognized in the separate income statement.
Finally, the Group applies the fair value hedge accounting technique in order to cover the change in the fair value of financial
instruments deriving from financial risk.
The fair value hedge is accounted for as follows:
• the book value of the hedged instrument is adjusted for the change in fair value attributable to the hedged risk. This change is
recognized in the income statement (i.e. in other comprehensive income in the case of hedging of equity securities designated at
fair value through other comprehensive income In the case of debt instruments classified at amortised cost, the adjustment to the
book value (so-called basis adjustment) is amortised in the income statement, based on the effective interest rate method, over
the duration of the hedged item.
In the case of debt instruments measured at fair value through other comprehensive income, the book value is not adjusted; the
adjustment consists of the cumulative amount of gains and losses, on which depreciation is calculated;
• the hedging derivative is recognized in the income statement (except for derivatives hedging equity securities designated at fair
value through other comprehensive income, for which hedging changes are recognized in other comprehensive income).
If the fair value hedge relationship is fully effective, the gain or loss on the hedging derivative is fully compensated by the change in
Revenues from contracts with customers within to scope of IFRS 15
The Generali Group is a predominantly insurance group. The revenues arising from this business are defined by IFRS 17; the
other revenues arising from the sale of goods and services different from financial and insurance services, and arising from asset
management are defined and disciplined by IFRS 15. These revenues are included in the income statement items Other income/
expenses and Other income/charges. In particular, within Generali Group, entities specialized in in banking, asset management and
other residual businesses included in the segment Holding and other activities operates.
Revenues from contracts with customers for Generali Group are mainly financial and real estate asset manager, investment and
pension funds commissions, as well as service and assistance. These revenues are not multi-annual and recognized on accrual
246
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
basis during the financial year. In some cases, in particular in case of asset and pension fund management, the revenues are linked
to managed amounts or to the performance of the assets. Despite this, significant judgements in estimate and measurement of
revenues are rarely needed, as for example the definition of transfer price and timing.
Use of estimates
The preparation of financial statements compliant to IFRS requires the Group to make estimates and assumptions that affect items
reported in the consolidations financial balance sheet and income statement and the disclosure of contingent assets and liabilities.
The use of estimates mainly refers to as follows:
• assets and liabilities related to insurance contracts issued and reinsurance contracts held;
• financial instruments measured at fair value classified in level 3 of the fair value hierarchy;
• expected credit losses on financial assets;
• the analysis in order to identify durable impairments on intangible assets (e.g. goodwill) booked in in the balance sheet (impairment
test);
• other provisions;
• deferred and anticipated taxes;
• defined benefit plan obligation;
• share-based payments.
Estimates and valuations are periodically verified by the Group and are based on best knowledge of current facts and circumstances.
However, due to the complexity and uncertainty affecting the abovementioned items, future events and actions, actual results
ultimately may differ from those estimates, possibly significantly.
Further information on the process used to determine assumptions affecting the abovementioned items and the main risk factors are
included in the paragraphs on accounting principles and in the risk report.
In particular, macroeconomic variables such as inflation, interest rate trends, and other financial variables were taken into account in
Share-based payments
The stock option plans granted by the Board in past periods configure as share based payments to compensate officers and
employees. The fair value of the share options granted is estimated at the grant date and is based on the option pricing model
that takes into account, at the grant date, factors such as the exercise price and the life of the options, the current price of the
underlying shares, the expected volatility of the share price, the dividends expected on the shares and the risk-free interest rate as
well as the specific characteristics of the plan itself. The pricing model is based on a binomial simulation that takes into account
the possibility of early exercise of the options. If present, the pricing model estimates separately the option value and the probability
that the market conditions are satisfied. Therefore, the abovementioned values determine the fair value of equity instruments
granted.
Long term incentive plans, aimed at strengthening the bond between the remuneration of management and expected performance
in accordance with the Group strategic plan, as well as the link between remuneration and generation of value in comparison with
peers, are also treated as an equity-settled share-based payment.
The fair value of the right to obtain free shares in relation to market condition is assessed at grant date and is based on a model
that takes into account factors such as historical volatility of the Generali share price and of the peer group, the correlation between
these shares, the dividends expected on the shares, the risk-free interest rate as well as the specific characteristics of the plan itself.
The pricing model is based on simulation models generally used for this type of estimation. Other conditions different than market
condition are considered external to this valuation. The probability that these conditions are satisfied, combined with the estimated
fair value of the right to obtain free shares, defines the overall plan cost.
The cost is charged to the profit and loss account and, as a double-entry, to equity during the vesting period, taking into account,
where possible, the probability of satisfaction of the vesting condition related to the rights granted.
The charge or credit to the profit or loss for a period represents the change in cumulative expense recognised as at the beginning
and end of that period.
No expense is recognised for awards that do not ultimately vest, except for equity-settled transactions for which vesting is conditional
upon a market or a non-vesting condition. These are treated as vested irrespective of whether or not the market or non-vesting
condition is satisfied, provided that all other performance and/or service conditions are satisfied.
When the terms of an equity-settled award are modified, the minimum expense to be recognised is the expense had the terms had
not been modified, only if the original terms of the award are met.
An additional expense is recognized for any modification that increases the total fair value of the share-based payment transaction,
247
Consolidated Financial Statements
When an equity-settled award is cancelled, it is treated as if it vested on the date of cancellation, and any expense not yet recognised
for the award is recognized immediately. This includes any award where non-vesting conditions within the control of either the entity
or the employee are not met. However, if a new award is substituted for the cancelled award, and designated as a replacement
award on the date that it is granted, the cancelled and new awards are treated as if they were a modification of the original award,
as described in the previous paragraph.
The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.
Information of financial and insurance risk
In accordance with IFRS 7 and IFRS 17, the information which enables the users of financial statements to evaluate the Group
exposure to financial and insurance risks and how these risks are managed is disclosed in the section Risk report in the Management
Report. It provides a description of the principal risks to which the Group is exposed and risk governance.
Further information regarding risk exposures are included in the Notes.
248
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
SEGMENT REPORTING
Generali activities could be split in different lines of business according to the products and services offered. In particular, in
accordance to IFRS 8, four main sectors of activity have been defined in line with the performance monitoring made by the Chief
Operating Decision Maker (CODM):
• Property & Casualty segment, which includes insurance activities performed in the Property & Casualty business;
• Life segment, which includes insurance activities performed in the Life business;
• Asset & Wealth Management;
• Holding and other business segment.
The performances from each single segment are reported in the Management Report, in the section Our financial performance at
page 105.
Life segment
Activities of Life segment include saving and protection business, both individual and for family, as well as unit-linked products with
investment purposes and complex plans for multinationals.
Investment vehicles and entities supporting the activities of Life companies are also reported in this segment.
Property & Casualty segment
Activities of Property & Casualty segment include both motor and non-motor businesses, among which motor third party liabilities,
casualty, accident and health. It includes also more sophisticated covers for commercial and industrial risks.
Investment vehicles and entities supporting the activities of Property & Casualty companies are also reported in this segment.
Asset & Wealth Management
This segment, in addition to including the activities of the Banca Generali group, operates as a supplier of products and services both
for the insurance companies of the Generali Group and for third-party customers identifying investment opportunities and sources
of income for all of its customers, simultaneously managing risks. These products include equity and fixed-income funds, as well as
alternative products.
The segment includes companies that may specialize in institutional or retail clients, rather than on Group insurance companies or
on third-party customers, or on products such as real assets, high conviction strategies or more traditional solutions.
Holding and other businesses
This grouping is a heterogeneous pool of activities different form insurance and asset & wealth management – included in the above-
mentioned segments - and in particular it includes financial holding activities, activities for the supply of international services and
other activities that the Group considers ancillary to the core insurance business as well as the expenses related to the management
and coordination activities and to the Group business financing. The holding expenses mainly include the holding and regional sub-
holding expenses regarding coordination activities, the expenses related to parent company stock option and stock grant plans as
well interest expenses on the Group financial debt.
249
Consolidated Financial Statements
Methods of disclosure presentation
According to IFRS 8, the disclosure regarding operating segments of the Group is consistent with the evidence reviewed periodically
at the highest managerial level for the purpose of making operational decisions about resources to be allocated to the segments and
assessment of the results.
Assets, liabilities, income and expenses of each segment are prepared as defined by the ISVAP Regulation No. 7 of 13 July 2007 as
replaced by article 12 of IVASS Order no. 121 of 7 June 2022.
Segment data derives from a separate consolidation of the amounts of subsidiaries and associated companies in each business
segment, eliminating the effects of transactions between companies belonging to the same segment and, where applicable,
eliminating the carrying amount of the investments in subsidiaries and the related shareholder’s equity quota. The reporting and
control process implemented by the Group implies that assets, liabilities, income and expenses of the companies operating in
different business segments are allocated to each segment directly by the entity through specific segment reporting. Intra-group
balances between companies belonging to different business segments are accounted for in the consolidation adjustments column
in order to reconcile segment information with consolidated information.
In this context, the Group adopts a business approach on segment reporting, characterized by the fact that some transactions
between companies belonging to different segments are eliminated within each segment.
The main impacts are explained below:
• the elimination in the Property & Casualty segment and Holding and other businesses segment of participations and loans to
companies of other segments, belonging to the same country, as well as related income (dividends and interests);
• the elimination in the Property & Casualty segment and Holding and other businesses segment of the realized gains and losses
arising from intra-segment operations;
• the elimination in the Life segment of the participations and loans to companies of other segments, belonging to the same country,
as well the related income (dividends and interests) if not backing technical reserves;
• the elimination in the Life segment of the realized gains and losses arising from intra-segment operations if not backing technical
reserves.
Furthermore, loans and related interest expenses on loans between Group companies belonging to different segments are eliminated
directly in each segment.
This approach allows to reduce consolidation adjustments, which in this view principally consist of investments in subsidiaries and
dividends received by Life and Property & Casualty companies from companies belonging to other segments, intragroup financing
and related interest income and fee and commissions income and expenses on financial services rendered or received by Group
companies, still allowing for an adequate performance presentation for each segment.
250
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Statement of financial position by business segment
(€ million) Property&Casualty Life business Asset&Wealth Management Holding and Other Businesses Consolidation adjustments Total
Items/Business segments 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022
1
INTANGIBLE ASSETS 4,781 4,838 4,666 4,674 495 489 48 30 0 0 9,990 10,031
2
TANGIBLE ASSETS 2,335 2,587 810 821 200 218 437 444 -100 -108 3,683 3,963
3
INSURANCE ASSETS 4,322 3,291 554 863 0 0 0 0 0 0 4,876 4,154
3.1
Insurance contracts that are assets 0 10 315 233 0 0 0 0 0 0 315 243
3.2
Reinsurance contracts that are assets 4,322 3,281 239 631 0 0 0 0 0 0 4,561 3,912
4
INVESTMENTS 43,388 42,863 408,696 394,616 14,221 16,554 15,481 11,849 -15,740 -18,152 466,046 447,728
4.1
Land and buildings (investment properties) 2,838 3,022 20,985 22,601 0 0 8 4 0 0 23,831 25,627
4.2
Investments in subsidiaries, associated companies and joint ventures 2,983 2,577 3,129 5,252 11 14 122 118 -3,533 -5,469 2,712 2,492
4.3
Financial assets at amortised cost 4,096 5,431 4,568 4,452 12,244 13,931 10,767 10,402 -10,442 -10,919 21,232 23,297
4.4
Financial assets at fair value through other comprehensive income 26,821 25,471 195,964 194,968 1,186 1,661 1,153 985 -1,765 -1,764 223,359 221,322
4.5
Financial assets at fair value through profit or loss 6,651 6,363 184,051 167,343 780 948 3,431 339 0 -1 194,912 174,991
5
OTHER FINANCIAL ASSETS 2,874 2,497 2,772 3,413 508 424 180 150 0 0 6,334 6,484
6
OTHER ASSETS 4,446 3,872 5,188 19,287 782 749 250 259 -54 -180 10,613 23,988
7
CASH AND CASH EQUIVALENTS 2,455 2,309 3,549 3,379 810 993 457 380 -201 -173 7,070 6,887
TOTAL ASSETS 64,602 62,258 426,235 427,0 54 17,017 19,428 16,853 13,110 -16,095 -18,613 508,611 503,236
1 SHAREHOLDERS' EQUITY 31,284 28,973
2
OTHER PROVISIONS 876 1,160 800 629 314 268 300 349 29 0 2,318 2,406
3
INSURANCE PROVISIONS 35,369 33,463 377,0 40 362,301 0 0 -0 -0 0 0 412,409 395,764
3.1
Insurance contracts that are liabilities 35,347 33,453 376,978 362,262 0 0 -0 -0 0 0 412,325 395,715
3.2
Reinsurance contracts that are liabilities 21 10 63 39 0 0 0 0 0 0 84 49
4
FINANCIAL LIABILITIES 4,505 7,9 78 20,451 19,857 13,125 15,077 9,591 6,076 -3,586 -3,346 44,086 45,642
4.1
Financial liabilities at fair value through profit or loss 230 243 8,361 9,040 133 124 17 11 0 -1 8,740 9,417
4.2
Financial liabilities at amortised cost 4,275 7,734 12,090 10,817 12,992 14,954 9,574 6,065 -3,586 -3,346 35,346 36,225
5
PAYABLES 4,068 3,667 3,202 2,676 460 537 1,016 894 -0 0 8,746 7,774
6 OTHER LIABILITIES 5,504 4,389 3,342 17,444 641 742 325 265 -43 -163 9,768 22,677
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 508,611 503,236
251
Consolidated Financial Statements
Statement of financial position by business segment
(€ million) Property&Casualty Life business Asset&Wealth Management Holding and Other Businesses Consolidation adjustments Total
Items/Business segments 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022
1
INTANGIBLE ASSETS 4,781 4,838 4,666 4,674 495 489 48 30 0 0 9,990 10,031
2
TANGIBLE ASSETS 2,335 2,587 810 821 200 218 437 444 -100 -108 3,683 3,963
3
INSURANCE ASSETS 4,322 3,291 554 863 0 0 0 0 0 0 4,876 4,154
3.1
Insurance contracts that are assets 0 10 315 233 0 0 0 0 0 0 315 243
3.2
Reinsurance contracts that are assets 4,322 3,281 239 631 0 0 0 0 0 0 4,561 3,912
4
INVESTMENTS 43,388 42,863 408,696 394,616 14,221 16,554 15,481 11,849 -15,740 -18,152 466,046 447,728
4.1
Land and buildings (investment properties) 2,838 3,022 20,985 22,601 0 0 8 4 0 0 23,831 25,627
4.2
Investments in subsidiaries, associated companies and joint ventures 2,983 2,577 3,129 5,252 11 14 122 118 -3,533 -5,469 2,712 2,492
4.3
Financial assets at amortised cost 4,096 5,431 4,568 4,452 12,244 13,931 10,767 10,402 -10,442 -10,919 21,232 23,297
4.4
Financial assets at fair value through other comprehensive income 26,821 25,471 195,964 194,968 1,186 1,661 1,153 985 -1,765 -1,764 223,359 221,322
4.5
Financial assets at fair value through profit or loss 6,651 6,363 184,051 167,343 780 948 3,431 339 0 -1 194,912 174,991
5
OTHER FINANCIAL ASSETS 2,874 2,497 2,772 3,413 508 424 180 150 0 0 6,334 6,484
6
OTHER ASSETS 4,446 3,872 5,188 19,287 782 749 250 259 -54 -180 10,613 23,988
7
CASH AND CASH EQUIVALENTS 2,455 2,309 3,549 3,379 810 993 457 380 -201 -173 7,070 6,887
TOTAL ASSETS 64,602 62,258 426,235 427,0 54 17,017 19,428 16,853 13,110 -16,095 -18,613 508,611 503,236
1 SHAREHOLDERS' EQUITY 31,284 28,973
2
OTHER PROVISIONS 876 1,160 800 629 314 268 300 349 29 0 2,318 2,406
3
INSURANCE PROVISIONS 35,369 33,463 377,0 40 362,301 0 0 -0 -0 0 0 412,409 395,764
3.1
Insurance contracts that are liabilities 35,347 33,453 376,978 362,262 0 0 -0 -0 0 0 412,325 395,715
3.2
Reinsurance contracts that are liabilities 21 10 63 39 0 0 0 0 0 0 84 49
4
FINANCIAL LIABILITIES 4,505 7,9 78 20,451 19,857 13,125 15,077 9,591 6,076 -3,586 -3,346 44,086 45,642
4.1
Financial liabilities at fair value through profit or loss 230 243 8,361 9,040 133 124 17 11 0 -1 8,740 9,417
4.2
Financial liabilities at amortised cost 4,275 7,734 12,090 10,817 12,992 14,954 9,574 6,065 -3,586 -3,346 35,346 36,225
5
PAYABLES 4,068 3,667 3,202 2,676 460 537 1,016 894 -0 0 8,746 7,774
6 OTHER LIABILITIES 5,504 4,389 3,342 17,444 641 742 325 265 -43 -163 9,768 22,677
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 508,611 503,236
Income statement by business segment
(€ million) Property&Casualty Life Asset&Wealth Management Holding and Other Businesses Consolidation adjustments Total
Items/Business segments 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022
1 Insurance revenue from insurance contracts issued 30,498 28,141 18,979 16,997 0 0 0 0 19 3 49,496 45,141
2 Insurance service expenses from insurance contract issued -28,342 -26,032 -15,291 -14,050 -11 -7 -0 0 363 360 -43,281 -39,730
3 Insurance revenue from reinsurance contracts held 2,131 1,443 1,246 1,300 0 0 0 0 0 0 3,377 2,743
4 Insurance service expenses from reinsurance contracts held -2,139 -1,990 -1,591 -1,392 0 0 0 0 0 0 -3,730 -3,382
5 Insurance service result 2,148 1,562 3,344 2,855 -11 -7 -0 0 381 363 5,862 4,772
6
Income/expenses from financial assets and liabilities at fair value through
profit or loss
330 -193 12,047 -18,081 7 57 34 -32 0 0 12,419 -18,248
7
Income/expenses from investments in subsidiaries, associated companies and
joint ventures
166 215 322 202 48 56 90 71 -362 -351 264 194
8
Income/expenses from other financial assets and liabilities and investment
properties
937 648 6,316 7,686 400 168 -388 -376 -88 -61 7,177 8,064
9 Result of investments 1,433 670 18,685 -10,193 455 282 -264 -337 -449 -412 19,860 -9,990
10 Net finance income/expenses related to insurance contracts issued -262 24 -17,434 10,732 0 0 0 0 -0 0 -17,696 10,756
11 Net finance income/expenses related to reinsurance contracts held 17 -7 -9 -12 0 0 0 0 0 0 8 -19
12 Net finance result 1,188 686 1,242 528 455 282 -264 -337 -449 -412 2,171 747
13 Other income/expenses 180 260 144 218 1,451 1,475 125 146 -468 -518 1,432 1,582
14 Acquisition and administration costs -117 -126 -163 -205 -748 -678 -120 -107 141 151 -1,006 -965
15 Other income/charges -1,174 -1,013 -723 -275 -158 -121 -757 -785 -73 -3 -2,886 -2,196
Profit (Loss) before tax 2,225 1,369 3,843 3,121 990 952 -1,016 -1,082 -468 -419 5,574 3,940
252
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Income statement by business segment
(€ million) Property&Casualty Life Asset&Wealth Management Holding and Other Businesses Consolidation adjustments Total
Items/Business segments 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022
1 Insurance revenue from insurance contracts issued 30,498 28,141 18,979 16,997 0 0 0 0 19 3 49,496 45,141
2 Insurance service expenses from insurance contract issued -28,342 -26,032 -15,291 -14,050 -11 -7 -0 0 363 360 -43,281 -39,730
3 Insurance revenue from reinsurance contracts held 2,131 1,443 1,246 1,300 0 0 0 0 0 0 3,377 2,743
4 Insurance service expenses from reinsurance contracts held -2,139 -1,990 -1,591 -1,392 0 0 0 0 0 0 -3,730 -3,382
5 Insurance service result 2,148 1,562 3,344 2,855 -11 -7 -0 0 381 363 5,862 4,772
6
Income/expenses from financial assets and liabilities at fair value through
profit or loss
330 -193 12,047 -18,081 7 57 34 -32 0 0 12,419 -18,248
7
Income/expenses from investments in subsidiaries, associated companies and
joint ventures
166 215 322 202 48 56 90 71 -362 -351 264 194
8
Income/expenses from other financial assets and liabilities and investment
properties
937 648 6,316 7,686 400 168 -388 -376 -88 -61 7,177 8,064
9 Result of investments 1,433 670 18,685 -10,193 455 282 -264 -337 -449 -412 19,860 -9,990
10 Net finance income/expenses related to insurance contracts issued -262 24 -17,434 10,732 0 0 0 0 -0 0 -17,696 10,756
11 Net finance income/expenses related to reinsurance contracts held 17 -7 -9 -12 0 0 0 0 0 0 8 -19
12 Net finance result 1,188 686 1,242 528 455 282 -264 -337 -449 -412 2,171 747
13 Other income/expenses 180 260 144 218 1,451 1,475 125 146 -468 -518 1,432 1,582
14 Acquisition and administration costs -117 -126 -163 -205 -748 -678 -120 -107 141 151 -1,006 -965
15 Other income/charges -1,174 -1,013 -723 -275 -158 -121 -757 -785 -73 -3 -2,886 -2,196
Profit (Loss) before tax 2,225 1,369 3,843 3,121 990 952 -1,016 -1,082 -468 -419 5,574 3,940
253
Consolidated Financial Statements
254
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
INFORMATION ON CONSOLIDATION AREA AND
RELATED OPERATIONS
1. Consolidation area
Based on IFRS 10, the Consolidated financial statements include the figures for both the Parent company and the subsidiaries
directly or indirectly controlled.
As at 31 December 2023, the consolidation area totaled 529 companies (542 at 31 December 2022), of which 467 subsidiaries
consolidated line by line and 62 associated companies valued at equity.
Changes in the consolidation area compared to the previous year and the table listing companies included in the consolidation area
are attached to these Notes, in the Appendix related to the change in the consolidation area, compared to 2022.
2. Disclosures on interests in other entities
2.1. Interests in subsidiaries
Non-controlling interests
A summary of the financial information relating to the most significant subsidiaries that have non-controlling interests material for
the Group is provided here below. The amounts disclosed are before inter-company eliminations (except for the items Net result,
presented net of dividends paid to Banca Generali by its subsidiaries, and cumulated non-controlling interests and profit or loss
attributable to non-controlling interests that are disclosed from a consolidated perspective).
Non-controlling interests
Principal place of business Banca Generali Group
Italy
Generali China Life Insurance Co. Ltd
China
(€ million) 31/12/2023 31/12/2022 31/12/2023 31/12/2022
BALANCE SHEET
Investments 13,751 15,112 17,300 15,238
Other assets 1,332 1,320 165 342
Cash and cash equivalents 627 826 68 159
TOTAL ASSETS 15,710 17,2 57 17,53 4 15,739
Technical provisions - - 14,014 13,086
Financial liabilities 13,416 15,311 2,215 1,173
Other liabilities 1,066 1,093 65 74
Shareholders' equity 1,227 853 1,240 1,406
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 15,710 17,257 17,5 34 15,739
SHAREHOLDERS' EQUITY ATTRIBUTABLE TO NON-CONTROLLING INTERESTS 495 403 576 665
INCOME STATEMENT
Insurance revenues - - 1,055 1,116
Fee and commissions income from financial service activities 1,096 1,078 - -
NET RESULT 324 214 183 164
OTHER COMPREHENSIVE INCOME -10 11 289 140
TOTAL COMPREHENSIVE INCOME 314 225 472 304
TOTAL COMPREHENSIVE ATTRIBUTABLE TO NON-CONTROLLING INTERESTS 157 103 86 76
DIVIDENDS PAID TO NON-CONTROLLING INTERESTS 105 104 30 30
CASH FLOW
cash flow from operating activities 95 -592 810 110
cash flow from investing activities -27 -21 -638 44
cash flow from financing activities -223 -233 -262 -58
255
Consolidated Financial Statements
Equity investments in exclusively controlled companies with significant third party interests
Entity name % Minority interests % Availability of votes in
the ordinary meeting by
third parties
Dividend distributed to third
parties
Consolidated profit (loss)
attributable to minority
interests
Shareholders’ equity
attributable to minority
interests
Banca Generali S.p.A. 48.68% 48.68% 105 158 495
Generali China Life Insurance Co. Ltd 50.00% 50.00% 30 92 576
Significant restrictions
In relation to the Group’s interests in subsidiaries, no significant restrictions exist on the Group’s ability to access or use its assets
and settle its liabilities.
2.2. Interests in associates
The most significant associates entities for the Group
6
, accounted for according to the equity method, are the following ones:
Material Group associates
Company
Deutsche Vermogensberatung
Aktiengesellshaft DVAG
Guotai Asset Manegement Company Alliance Klesia Generali Generali 3Banken
Nature of the relationship with the Group
DVAG is the leading sales network for
financial services in Germany and has
an exclusive distribution partnership
with a company held by Generali
Deutschland Group.
Guotai is one of the first professional
fund management companies in
China. The company manages mutual
funds and several Social Security
Fund (SSF) portfolios.
AKG is the holding company
which helds the participation
in the French mutual insurance
company Klesia SA.
G3B is a holding company which
holds shares in three significant
Austrian regional banks
(Bank für Tirol und Vorarlberg
Aktiengesellschaft, BKS Bank AG
and Oberbank AG).
Principal Place of business Germany China France Austria
Profit rights/voting rights held (if different) 30% / 40% 30% 43% 50%
The summarised financial information relating to the most material associates in which the Group has an interest including the
reconciliation with the related carrying amounts (including goodwill, where present) are provided here below.
Summarized financial information - material associates
(€ million) Deutsche Vermogensberatung
Aktiengesellshaft DVAG
Guotai Asset Manegement
Company
Alliance Klesia Generali Generali 3Banken
31/12/2022(*) 31/12/2021(*) 31/12/2023 31/12/2022 31/12/2022(*) 31/12/2021(*) 31/12/2022(*) 31/12/2021(*)
INCOME STATEMENT
Revenues 2,232 2,262 433 478 624 695 15 1
Profit from continuing operations 246 242 198 249 41 31 14 1
Profit from discontinued operations after taxes 0 0 0 0 0 0 0 0
Net result after taxes 246 242 149 187 31 27 12 1
Other comprehensive income 0 0 0 0 0 0 0 0
TOTAL COMPREHENSIVE INCOME 246 242 149 187 31 27 12 1
BALANCE SHEET
Intangible Assets 57 74 12 15 0 0 0 0
Property, Plant and Equipment 270 275 0 0 0 0 0 0
Amounts ceded to reinsurers from insurance provisions 0 0 0 0 339 339 0 0
Investments 679 526 721 646 1,247 1,279 165 135
Other assets 329 115 188 179 11 15 0 0
Cash and cash equivalents 204 421 61 65 0 0 2 1
TOTAL ASSETS 1,539 1,409 982 904 1,597 1,633 168 136
Other provisions 0 0 0 0 0 0 0 0
Technical provisions 0 0 0 0 1,290 1,275 0 0
Financial liabilities 167 139 0 0 0 7 0 0
Other liabilities 707 671 319 312 0 0 18 7
TOTAL LIABILITIES 874 811 319 312 1,290 1,282 18 7
SHAREHOLDERS' EQUITY 665 599 663 593 307 351 149 130
6. Please note that associates are related parties of the Group.
256
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Carrying amount reconciliation - material associates
(€ million) Deutsche
Vermogensberatung
Aktiengesellshaft DVAG
Guotai Asset Manegement
Company
Alliance Klesia Generali Generali 3Banken
31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022
Carrying amount in investee as at
31 December previous year
292 230 274 244 135 81 132 118
Total comprehensive income
attributable to the Group
68 108 32 43 27 54 31 14
Dividends received during the year -45 -46 -13 -12 0 0 0 0
Carrying amount in investee as at
the end of the year
315 292 293 274 162 135 163 132
As part of the commercial relationships in the German area with the distribution partner DVAG, we inform that the current controlling
shareholder hold a put option exercisable in respect of Generali Group.
At the reporting date no liability has been accounted for because the put option refers to an associate and therefore it does not fall
into the category of the options on non-controlling interests referred to in par. 23 of IAS 32. The potential outflow of resources will
be defined by the parties when and if the option is exercised on the basis of the fair value measurement criteria of the option itself.
Furthermore, the Group holds interests in associates which are not individually material that are accounted for at fair value through
profit or loss or alternatively according to the equity method (for a total amount of € 182 million) and, on a minor extent, held at cost
(for an amount of € 24 million). The associates in which the Group has interest mainly operate in the insurance and financial services
industries.
For these associates aggregated summarised financial information are provided here below:
Aggregated information on other associates
(€ million) 31/12/2023 31/12/2022
Carrying amount of interests in not significant associates 205 234
Aggregated Group's share of:
Profit from continuing operations 3 3
Profit from discontinued operations after taxes 0 0
Other comprehensive income 0 0
Total comprehensive income 3 3
In relation to the Group’s interests in associates, no significant contractual, legal or regulatory restrictions exist on the Group’s ability
257
Consolidated Financial Statements
2.3. Joint ventures
The most significant joint venture for the Group, accounted for using the equity method, is Saxon Land B.V., a real estate investment
company that owns the “One Fen Court” building, located in the heart of the financial district in London. The company is now jointly
controlled with Munich RE, which during the year acquired a 50% stake in the company from the Generali Group.
The value of the investment stands at € 338 million at Group level. Below is a summary of the economic-financial data for the
company.
Summarized financial information - material joint ventures
(€ million) Saxon Land B.V.
31/12/2022(*) 31/12/2021(*)
INCOME STATEMENT
Revenues 29 27
Profit from continuing operations 19 77
Profit from discontinued operations after taxes 0 0
Net result after taxes 16 61
Other comprehensive income 0 0
TOTAL COMPREHENSIVE INCOME 16 61
BALANCE SHEET
Intangible Assets 0 0
Property, Plant and Equipment 0 0
Amounts ceded to reinsurers from insurance provisions 0 0
Investments 601 614
Other assets 69 78
Cash and cash equivalents 19 17
TOTAL ASSETS 689 710
Other provisions 0 0
Technical provisions 0 0
Financial liabilities 0 0
Other liabilities 44 23
TOTAL LIABILITIES 44 23
SHAREHOLDERS' EQUITY 645 686
(*) The financial information are referred to the last approved financial statements by the respective Shareholders’ meeting of company.
Here below please find the information on Group joint ventures:
Aggregated information on joint ventures
(€ million) 31/12/2023 31/12/2022
Summarized carrying amount on associates and joint ventures 1,023 1,214
Aggregated Group's share of:
Profit from continuing operations -116 40
Profit from discontinued operations after taxes 0 0
Other comprehensive income 2 -1
Total comprehensive income -114 38
The carrying value related to interests in joint ventures is basically stable compared to last year and it mainly includes real estate
investment vehicles.
Significant restrictions
In relation to the Group’s interests in joint ventures, no significant contractual, legal or regulatory restrictions exist on the Group’s ability
258
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
2.4. Unconsolidated structured entities
As of 31 December 2023, Generali Group holds no interests in unconsolidated structured entities that expose the Group to the
variability of returns arising from their performance.
However, please find below the following case. In June 2021, Assicurazioni Generali S.p.A. stipulated a reinsurance contract with
Lion III Re DAC, an Irish special purpose company, which for a period of four years will cover the possible catastrophic losses suffered
by the Generali Group following storms in Europe and earthquakes in Italy. The Lion III Re transaction transfers part of the risk to bond
investors, thus optimizing the Group’s protection against disasters. Generali paid an annual premium of 3.83% for a total of €200
million of reinsurance coverage. This amount will be returned by Lion III Re DAC to investors if during the 4 years of operation of the
transaction no events occur on the Generali Group, deriving respectively from storms in Europe or earthquake in Italy, in excess of
pre-established damage thresholds for each type of risk.
The aforementioned vehicle is not consolidated as the Generali Group has no control over the entity and is not exposed to the
resulting variable returns.
3. Non-current assets or disposal group classified as
held for sale
Generali Deutschland Pensionskasse
On 12
th
December 2023, Generali has completed the disposal of Generali Deutschland Pensionskasse AG (GDPK) to Frankfurter
Leben following the approval by the German Federal Financial Supervisory Authority (BaFin) and the relevant German antitrust
authorities.
The transaction, at consolidated level, has generated an after-tax gain from disposal of € 255 million, recorded in the fourth quarter
of 2023, with a positive impact on the reported net result and no impact on the adjusted net result.
Italian bancassurance joint ventures (former Gruppo Cattolica)
On 12 of October 2022, the Board of Directors approved the termination of the bancassurance agreement in place between
Cattolica Assicurazioni S.p.A. and ICCREA Banca S.p.A., through the exercise of the option to sell the two companies BCC Vita and
BCC Assicurazioni, agreed upon the renewal of the bancassurance partnership in July 2019. The completion of this operation took
place on 27th September 2023. The reference price for 70% of the shares is equal to € 189 million, with an overall negative impact
on the reported net result if € 5 million and no impact on the adjusted net result.
Moreover, on 29 of May, Banco BPM exercised the call option provided for in the agreements signed in 2021 with Cattolica
Assicurazioni, on 65% of the share capital of Vera Vita S.p.A. and Vera Assicurazioni S.p.A., companies in which Banco BPM already
owned a 35% stake. Vera Vita, in turn, holds the entire share capital of Vera Financial DAC, an insurance company incorporated
under Irish law, while Vera Assicurazioni holds 100% of the share capital of Vera Protezione S.p.A..
The completion of this operation took place on 14th September 2023. The reference price for 65% of the shares is equal to € 439
million, with an overall positive impact on the reported net result if € 54 million and no impact on the adjusted net result.
TUA Assicurazioni
On 12 October 2023, Generali reached an agreement with Allianz for the sale of TUA Assicurazioni S.p.A..
TUA Assicurazioni is an insurance company focused on the non-life business in the Italian market. The company operates mainly in
the automotive sector, which represents approximately 60% of the volume of premiums issued, through a distribution network made
up mainly of agents and intermediaries without mandate constraints.
The consideration for the transaction is equal to € 280 million in cash and is subject to adjustments in line with market practice for
this type of transaction. The transaction was completed on 1
st
March 2024.
Cronos Vita
Finally, it should be noted that as part of the agreements aimed at implementing a systemic solution to Eurovita crisis, the Group
classified the stake in Cronos Vita owned 22.5% by Generali Italia for € 49.5 million, as a non-current asset held for sale. This
classification took into consideration the existence, from the concept of the operation, of the intention to maintain this participation
for a limited period of time, as a planned step in the broader overall intervention process.
It was also verified that at 31 December 2023 the fair value of the investment, net of sales costs, was not lower than the book value.
259
Consolidated Financial Statements
4. Investments in subsidiaries, associated companies
and joint ventures
Investments in subsidiaries, associated companies and joint venture
(€ million) 31/12/2023 31/12/2022
Investments in subsidiaries, associated companies and joint ventures at cost or at equity 1,889 1,532
Investments in non-consolidated subsidiaries at cost 211 211
Investments in associated companies at equity and other associated companies at cost 1,030 969
Investments in joint ventures at equity 648 352
Investments in subsidiaries, associated companies and joint ventures at fair value through profit or loss 823 961
Investments in associated companies at fair value through profit or loss 116 102
Investments in joint ventures at fair value through profit or loss 706 859
Total 2,712 2,492
Item Investments in non-consolidated subsidiaries at cost includes interests in entities non-consolidated as not material and that
carry which mainly perform ancillary services to the insurance business.
The change in Investments in joint ventures at equity is attributable to the inclusion of Saxon Land B.V. as a result of the change in
consolidation method arising from the sale of 50% of the stake formerly fully owned.
Significant investments in subsidiaries, associated companies and joint venture: book value, fair value and dividends received
Entity name
Type (1) Balance Sheet Value Fair value Dividends received
Joint venture
Saxon Land B.V. c 339 17
Associates
Deutsche Vermögensberatung Aktiengesellschaft DVAG b 315 45
Guotai Asset Management Company b 293 13
Aliance Klesia Generali b 162
Generali 3 Banken Holding AG b 163
Total 1,272 0 75
(1) a=subsidiaries (only for IAS/IFRS financial statements); b= connected; c= joint venture
5. Goodwill and other intangible assets
Intangible asset: composition
(€ million) Total
31/12/2023
Total
31/12/2022
Activities/Values Finite useful life Indefinite useful life Finite useful life Indefinite useful life
A.1 Goodwill X 7,841 X 7,89 5
A.1.1 attributable to the Group X 7,841 X 7,895
A.1.2 attributable to minority interests X 0 X 0
A.2 Other intangible assets 2,130 20 2,116 20
A.2.1 Assets measured at cost 2,130 20 2,116 20
a) Self developed intangible assets 362 0 311 0
b) Other assets 1,768 20 1,805 20
A.2.2 Assets valued at restated value: 0 0 0 0
a) Self developed intangible assets 0 0 0 0
b) Other assets 0 0 0 0
Total 2,130 7,8 61 2,116 7,915
Intangible asset: variations
260
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
(€ million) Goodwill Other intangible assets: self-
developed
Other intangible assets: others Total
Finite useful life Indefinite useful
life
Finite useful life Indefinite useful
life
A. Opening balances 8,201 1,071 0 4,209 20 13,502
A.1 Accumulated depreciation and impairment -307 -760 0 -2,405 0 -3,471
A.2 Net opening balance 7,89 5 311 0 1,805 20 10,031
A.2.a Adjustment opening balances 0 0 0 0 0 0
B. Increases 3 142 0 190 0 335
B.1 Acquisitions 0 125 0 133 0 257
B.2 Increases in self-developed intangible assets X 0 0 7 0 7
B.3 Reversals of impairment losses X 0 0 0 0 0
B.4 Positive changes in restated value 0 0 0 0 0 0
- through comprehensive income statement X 0 0 0 0 0
- through profit or loss X 0 0 0 0 0
B.5 Positive exchange differences 0 0 0 0 0 0
B.6 Other changes 3 17 0 50 0 70
C. Decreases -57 -92 0 -227 0 -376
C.1 Sales 0 -11 0 -53 0 -64
C.2 Changes in value -44 -81 0 -161 0 -286
- Amortisations X -81 0 -136 0 -217
- Impairment losses -44 0 0 -25 0 -69
- through comprehensive income statement X 0 0 0 0 0
- through profit or loss -44 0 0 -25 0 -69
C.3 Negative changes in restated value 0 0 0 0 0 0
- through comprehensive income statement X 0 0 0 0 0
- through profit or loss X 0 0 0 0 0
C.4 Transfers to non-current assets held for sale 0 0 0 0 0 0
C.5 Negative exchange differences -13 0 0 -14 0 -27
C.6 Other changes 0 0 0 0 0 0
D. Net final carrying amount 7,8 41 362 0 1,767 20 9,990
D.1 Accumulated depreciation and impairment -351 -892 0 -2,371 0 -3,614
E. Gross book value 8,191 1,254 0 4,139 20 13,603
F. Measured at cost 8,191 1,254 0 4,159 0 13,603
Deferred tax liabilities were accounted for with reference to the above mentioned intangible assets. Further information on calculation
method are detailed in the paragraph Other intangible assets of the section Basis for presentation and accounting principles.
As at 31 December 2023 Group’s goodwill amounted to € 7,841 million. The change is attributable to the conclusion of Purchare
Price Allocation (PPA) process of MPI Generali Insurans Berhad, Generali Insurance Malaysia Berhad, and Generali Life Insurance
Malaysia Berhad. For further details of the PPA please refer to the chapter New Entites Acquisition.
The exchange differences are mainly attributable to the currency translation of goodwill booked on Generali CEE Holding e Generali
Schweiz Holding AG.
Item C.2. Impariment losses includes the write-down of the entire residual goodwill allocated to the CGU India Property&Casualty.
For details related to the price allocation process, as defined by IFRS 3, please refer to the chapter New Entites Acquisition.
Cash generating units (or group of cash generating units) - CGUs - were established in accordance with the Group’s participation
structure, the manner in which management monitors operations and the business of the CGUs and considering the IFRS 8
requirements relating to operating segments, which Assicurazioni Generali identified as Life, Property&Casualty and Asset&Wealth
Management, in continuity with the previous year.
261
Consolidated Financial Statements
Goodwill by CGU at 31 december 2023
(€ million) Life Property&Casualty Asset&Wealth
Management
Total
Generali Deutschland Holding 562 1,617 0 2,179
Alleanza Assicurazioni 1,461 0 0 1,461
Generali Italia 640 692 0 1,332
Gruppo Generali CEE Holding 420 385 62 868
Gruppo Generali France 319 248 0 567
Generali Seguros - Portogallo 0 372 0 372
Gruppo Europ Assistance 0 269 0 269
Generali Schweiz Holding AG 0 240 0 240
Multiboutique 0 0 227 227
Generali Versicherung AG 76 77 0 154
Generali Malaysia 0 60 0 60
Others 113
Goodwill 7,841
Goodwill by CGU at 31 december 2022
(€ million) Life Property&Casualty Asset&Wealth
Management
Total
Generali Deutschland Holding 562 1,617 0 2,179
Alleanza Assicurazioni 1,461 0 0 1,461
Generali Italia 640 692 0 1,332
Gruppo Generali CEE Holding 429 387 58 874
Gruppo Generali France 319 248 0 567
Generali Seguros - Portogallo 0 372 0 372
Gruppo Europ Assistance 0 278 0 278
Generali Schweiz Holding AG 0 233 0 233
Multiboutique 0 0 227 227
Generali Versicherung AG 76 77 0 153
Generali Malaysia 0 62 0 62
Others 157
Goodwill 7,895
The goodwill booked was subject to impairment tests as stated by IAS 36.
The cash generating units have been defined consistently with IAS 36; with regard to the measurement of the recovery value, of the
cash generating unit of Generali Deutschland Holding, Generali Italia, Alleanza Assicurazioni, Generali CEE Holding Group, Generali
Schweiz Holding AG, Europ Assistance, Generali Versicherung AG, Generali France, Multiboutique, Generali Seguros – Portugal and
Generali Malaysia (split by operating segment Life, Property&Casualty and Asset Management) the Dividend Discount Model (DDM)
has been used, as described in the basis of presentation and accounting principles, for the determination of the recovery value.
This method represents a variant of the method of cash flows. In particular, the Excess Capital variant, defines the entity’s economic
value as the discounted dividend maintaining an appropriate capital structure taking into consideration the capital constraints
imposed by the Supervisor as the solvency margin. This method results in the sum of discounted value of future dividends and the
CGU’s terminal value.
The application of this criterion entailed in general the following phases:
• explicit forecast of the future cash flows to be distributed to the shareholders in the planned time frame, taking into account the
limit due to the necessity of maintaining an adequate capital level;
• calculation of the cash generating unit’s terminal value, that was the foreseen value of the cash generating unit at the end of the
latest year planned.
The cash flow are defined by local financial plans approved by the competent bodies of the entities that make up the relevant CGU
More specifically, the detailed data were taken from the 2024 - 2026 financial plans drawn up by the CGUs taking into account the
indications shared by the Group’s Strategic Planning, Monitoring and Control and the Group’s Cash & Capital Management functions.
The projections of Own Funds and the Solvency Capital Requirement for the companies belonging to the CGUs to which the goodwill
is allocated are taken from the Group Capital Management Plan for the three-year period 2024-2026 approved by the Board of
Directors in December 2023, from the Group Risk Appetite Framework and the local Capital Management Plans for the three-year
262
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
In order to extend the analysis horizon to a 5 years period, the main economic and financial data were estimated for a further two
years (2027 and 2028). The net result (2027 e 2028) was mainly calculated using a sustainable growth rate for each CGU.
The table below shows the evaluation parameters used for the main CGU:
A) Nominal Growth Rate (g):
Goodwill: nominal growth rate (g)
(€ million) 31/12/2023 31/12/2022
Generali Deutschland Holding 2.0% 2.0%
Alleanza Assicurazioni 2.0% 1.5%
Generali Italia 2.0% 1.5%
Gruppo Generali CEE Holding 2.5% 2.5%
Gruppo Generali France 2.0% 2.0%
Generali Seguros - Portogallo 1.0% 1.0%
Gruppo Europ Assistance 2.0% 2.0%
Generali Schweiz Holding AG 1.0% 1.0%
Multiboutique 2.0% 2.0%
Generali Malaysia 3.0% 3.0%
Generali Versicherung AG 2.0% 2.0%
B) Cost of Equity of the company net of taxes (Ke):
Goodwill: cost of equity net of taxes (Ke)
31/12/2023 31/12/2022
Generali Deutschland Holding
Life 9.4% 8.8%
Property&Casualty 7.9% 7.5%
Alleanza Assicurazioni
Life 11.2% 10.9%
Generali Italia
Life 11.2% 10.9%
Property&Casualty 9.7% 9.6%
Gruppo Generali CEE Holding
Life 11.8% 12.6%
Property&Casualty 10.4% 10.9%
Asset&Wealth Management 13.7% 16.7%
Generali France Group
Life 9.9% 9.3%
Property&Casualty 8.5% 8.0%
Generali Seguros - Portogallo
Property&Casualty 8.6% 8.5%
Europ Assistance Group
Property&Casualty 10.1% 9.6%
Generali Schweiz Holding AG
Property&Casualty 6.3% 6.6%
Multiboutique
Asset&Wealth Management 11.5% 12.3%
Generali Malaysia
Property&Casualty 8.3% 8.7%
Generali Versicherung AG
Life 10.0% 9.4%
Property&Casualty 8.5% 8.2%
263
Consolidated Financial Statements
The cost of equity (Ke) for each entity is extrapolated based on the Capital Asset Pricing Model (CAPM) formula eventually adjusted
to reflect specifics and identified risks.
In detail:
• Risk free rate was defined as the average value - observed during the last three months of 2023 of the 10-years government bond
of the reference country of operation of the CGU, on which the goodwill has been allocated;
• The Beta coefficient was determined based on a homogeneous basket of securities of the non-life and life insurance sectors,
which was compared to market indexes. The observation period was 5 years with weekly frequency;
• The market risk premium amounts to 5.5% for all Group’s CGUs.
The impairment test results have confirmed the recoverability of all CGU carrying amount.
Furthermore, within the goodwill impairment test, a sensitivity analysis was performed on the results, by changing the cost of own
capital of the company (Ke) (+/-1%) and the perpetual growth rate of distributable future cash flows (g) (+/-0.5%).
Variations of financial assumptions have for the sensitivity has not been reflected, for prudency reasons, on the cash flows detailed
in the plan used for the test, and on the CGUs carrying amounts.
For Life and Asset&Wealth management the sensitivity analysis have confirmed the recoverability of carrying amounts.
For Property&Casualty segment the sensitivity analysis on financial hypothesis highlighted that for the CGUs Europ Assistance and
Generali Malaysia Property&Casualty a balance between recoverable amount and carrying amount is reached by increasing Ke by
0.8% and 0.3% respectively. With reference to the CGU Generali Seguros – Portogallo, the balance between recoverable amount
and carrying amount is reached by increasing Ke by 0.57% and decrese of (g) by 0.18%. Following this evidence, which in any case
confirms the recoverability of the book values recorded in the financial statements, the Group is going to monitor the performance of
these CGUs in order to identify any future elements of attention.
6. New entities acquisition
As reported in the Annual Integrated Report and Consolidated Financial Statement 2022 approved by Board of Director on 13 March
2023, in relation to the acquisition of the AXA Affin Life Insurance (AALI) joint venture renamed Generali Life Insurance Malaysia
Berhad, AXA Affin General Insurance (AAGI) joint venture renamed Generali Insurance Malaysia Berhad and MPI Generali Berhad the
evaluation period and, consequently, the PPA process, as defined in the IFRS 3 par. 45 is concluded as the allocation of the price
paid to the fair value of the technical provision and other intangible assets has been completed. As regards the methodological note
on the accounting of the acquisition, please refer to what has been published in the Integrated Annual Report and Consolidated
Financial Statements 2022.
The conclusion of the process generated the following result:
MPI Generali Insurans Berhad
In the context of the aggregation by the Generali Group of MPI Generali Insurans Berhard, 30 August 2022 constitutes the date of
acquisition of control pursuant to IFRS 10 as it corresponds to the time of the transfer to Assicurazioni Generali of the ownership of
the shares.
In view of the short time lapse between the acquisition date (30 August 2022) and the reference date of the last financial statements
and in the absence of significant events occurring between the two dates, for the purposes of applying IFRS 3 it was deemed
appropriate to refer to the fair values of the assets acquired and liabilities assumed determined with reference to 31 August 2022.
The acquisition cost, determined in accordance with IFRS 3 par. 37, is equal to the price paid to Multi-Purpose Capital Holdings
Berhad (MPHB Capital) for the purchase of 51% of the shares of MPIG, to which was added the value of the previously held 49%
stake.
Acquisition Cost - MPI Generali Insurans Berhad
(€ million)
Price paid for the acquisition of 51% from Multi-Purpose Capital Holdings Berhad (MPHB Capital) 116 a
Quota Previously Held 112 b
Total Acquisition Cost 228 c = b + a
264
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
The following table illustrates the details with reference to the calculation of the goodwill arising from the PPA process:
Purchase Price Allocation - MPI Generali Insurans Berhad
(€ million)
Net Asset Value at 31/08/2022 163
Intangible Asset Recognition 17
Fair value Adjustment on Financial Investment 0
Fair value Adjustment on Technical Provision 1
Other Adjustment 1
Tax Effect -4
Fair Value of Net Asset at 31 August 2022 177
Non Controlling Interest 0
Fair Value of Net Assets at 31 August 2022 net of Non Controlling Interest 177 a
Acquisition Cost 228 b
Goodwill 51 c = b - a
The main difference from the previously provisional PPA is attributable to the measurement of technical reserve for and the
corresponding tax effect.
The following table summarises the balance sheet of the first-time consolidation of MPIG:
First consolidation Balance Sheet - MPI Generali Insurans Berhad
(€ million)
Intangible Assets 28
Insurance Asset 161
Investments 315
Other Financial Asset and Other Asset 45
Cash and cash equivalents 1
Total Asset 550
Other Provision, Payables and Other Liabilities 28
Insurance Liabilities 344
Financial liabilities 1
Total Liabilities 373
Fair Value of Net Asset at 31 August 2022 177
Generali Insurance Malaysia Berhad (ex AXA Affin General Insurance)
In the context of the Generali Group’s aggregation of Generali Insurance Malaysia Berhad (formerly AXA Affin General Insurance -
AAGI) joint venture, 30 August 2022 constitutes the date of acquisition of control within the meaning of IFRS 10 as it corresponds to
the time of the transfer to Assicurazioni Generali of the ownership of the shares.
In consideration of the short time lapse between the acquisition date (30 August 2022) and the reference date of the latest financial
statements and in the absence of relevant events occurring between the two dates, for the purposes of applying IFRS 3 it was
deemed appropriate to refer to the fair values of the assets acquired and liabilities assumed determined with reference to 31 August
2022. The acquisition cost, determined in accordance with IFRS 3 par. 37, is equal to the price paid to AXA-Affin joint venture for the
purchase of 53% of the shares of AAGI.
Acquisition Cost - Generali Insurance Malaysia Berhad
(€ million)
Price paid for acquisition of 53% from Axa-Affin joint venture 165
Total Acquisition Cost 165
265
Consolidated Financial Statements
The following table illustrates the details with reference to the calculation of the goodwill arising from the PPA process:
Purchase Price Allocation - Generali Insurance Malaysia Berhad
(€ million)
Net Asset Value at 31/08/2022 272
Intangible Asset Recognition 24
Fair value Adjustment on Financial Investment 0
Fair value Adjustment on Technical Provision -12
Other Adjustment -3
Tax Effect -2
Fair Value of Net Asset at 31 August 2022 279
Non Controlling Interest -131
Fair Value of Net Assets at 31 August 2022 net of Non Controlling Interest 148 a
Acquisition Cost 165 b
Goodwill 17 c = b - a
The conclusion of the price allocation process showed no significant differences from the provisional price allocation as at 31
December 2022.
The following table summarises the balance sheet of the first-time consolidation of Generali Insurance Malaysia Berhad:
First consolidation Balance Sheet - Generali Insurance Malaysia Berhad
(€ million)
Intangible Assets 31
Insurance Asset 106
Investments 684
Other Financial Asset and Other Asset 86
Cash and cash equivalents 9
Total Asset 916
Other Provision, Payables and Other Liabilities 107
Insurance Liabilities 520
Financial liabilities 10
Total Liabilities 637
Fair Value of Net Asset at 31 August 2022 279
Generali Life Insurance Malaysia Berhad (ex AXA Affin Life Insurance)
In the context of the aggregation by the Generali Group of Generali Life Insurance Malaysia Berhad (former AXA Affin Life Insurance
- AALI) joint venture, 30 August 2022 constitutes the date of acquisition of control in accordance with IFRS 10 as it corresponds to
the moment of the transfer to Assicurazioni Generali of the ownership of the shares.
In view of the short time lapse between the acquisition date (30 August 2022) and the reference date of the latest financial statements
and in the absence of material events occurring between the two dates, for the purposes of applying IFRS 3 it was deemed
appropriate to refer to the fair values of the assets acquired and liabilities assumed determined with reference to 31 August 2022.
The acquisition cost, determined in accordance with IFRS 3 par. 37, is equal to the price paid to AXA-Affin joint venture for the
acquisition of 70% of the shares of AALI:
Acquisition cost - Generali Life Insurance Malaysia Berhad
(€ million)
Price paid for acquisition of 70% from Axa-Affin joint venture 36
Total Acquisition Cost 36
266
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
The following table illustrates the details with reference to the calculation of the goodwill arising from the PPA process:
Purchase Price Allocation - Generali Life Insurance Malaysia Berhad
(€ million)
Net Asset Value at 31/08/2022 50
Intangible Asset Recognition 7
Fair value Adjustment on Financial Investment 1
Fair value Adjustment on Technical Provision -10
Other Adjustment 0
Tax Effect 2
Fair Value of Net Asset at 31 August 2022 51
Non Controlling Interest -15
Fair Value of Net Assets at 31 August 2022 net of Non Controlling Interest 36 a
Acquisition Cost 36 b
Goodwill 0 c = b - a
The conclusion of the price allocation process showed no significant differences from the provisional price allocation as at 31
st
December 2022
The following table summarises the balance sheet of the first-time consolidation of Generali Life Insurance Malaysia Berhad.
First consolidation Balance Sheet - Generali Life Insurance Malaysia Berhad
(€ million)
Intangible Assets 7
Insurance Asset 3
Investments 570
Other Financial Asset and Other Asset 10
Cash and cash equivalents 13
Total Asset 603
Other Provision, Payables and Other Liabilities 61
Insurance Liabilities 491
Financial liabilities 1
Total Liabilities 552
Fair Value of Net Asset at 31 August 2022 51
7. Transactions with related parties
With regards to transactions with related parties, the main activities, set on an arm’s length basis, mainly consist in relations of
insurance, reinsurance and co-insurance, also including claims settlement, administration and management of securities and real
estate assets, leasing, loans and guarantees, financial advice, IT and administrative services.
When carried out with companies belonging to the Group, these operations substantially aim at guaranteeing the streamlining of
operational functions, an exploitation of synergies, greater economies in overall management and an appropriate level of service.
For further information regarding related parties’ transactions - and in particular regarding the procedures adopted by the Group
to ensure that these transactions are performed in accordance with the principles of transparency and substantive and procedural
correctness - please refer to the paragraph Related Party Transactions Procedures included in section Internal control and risk
management system of the Corporate governance and Ownership Report.
The total remuneration due to the Members of the Board of Directors, the Board of Statutory Auditors and the Managers with Strategic
Responsibilities and the shareholdings held by the same are shown, as per Consob regulations, in the Report on Remuneration
Policy and Payments, in the specific tables 1, 3a, 3b and 4 of Part II of Section II of the report itself. The remuneration components
were assigned and quantified according to the Remuneration Policy approved by the Shareholders’ Meeting on 28
th
of April 2023,
267
Consolidated Financial Statements
Remuneration Components
(€ million) Non-executive Directors and
Members of the Board of
Statutory Auditors(*)
Other Managers
with Strategie
Responsibilities(**)
a Short-term employee benefits 5 35
b Post-employment benefits - 2
c Other long-term employee benefits - 1
d Termination benefits - 0
e Share-based payment - 15
Total 5 54
(*) It includes 18 individuals.
(**) It includes 21 individuals, including the Managing Director/Group CEO.
Below we highlight the economic and financial transactions relating to loans and interest income and expenses with Group companies
not included in the area of full consolidation and with other related parties.
The transactions between Group companies consolidated line-by-line have been eliminated in the consolidation and are not disclosed
in the Notes.
As shown in the table below, the impact of such transactions, if compared on a Group basis, is not material.
Related parties
(€ million) Subsidiaries
with significant
control not
consolidated
Associated
companies and
joint-ventures
Other related
parties
Total % on balance
sheet item
Loans 6 756 0 762 0.16%
Loans issued -3 -6 -14 -22 0.06%
Interest income 0 15 0 15 -0.20%
Interest expense -0 -0 0 -0 -0.05%
In particular, the subtotal Associated companies and Joint ventures includes loans to Group companies valued with equity method
for € 756 million, mostly related to real estate companies.
With reference to the related parties as stated by IAS 24 par 19 letter b, it should be noted that with regard to transactions with
Mediobanca Banca di Credito Finanziario S.p.A. – company that exerts significant influence over the Generali Group – and its
subsidiaries, the main balances on assets and liabilities at 31 December 2023 are represented by investment funds (approximately
€ 400 million), debt securities issued by Mediobanca and its subsidiaries (approximately € 80 million) and equity investments
(approximately € 28 million), as well as collateralised hedging derivatives for about € -5 million. The main impacts on the profit and
loss account at 31 December 2023 amounted to about € -27 million, mainly due to costs related to commercial relations, in force in
Italy on insurance activity, as well as to the net commissions.
These relationships, regulated at market conditions, have not a significant impact on the size of the Generali Group.
With reference to the paragraph 18 of Related Party Transactions Procedures relating to periodic reporting requirements, there
were no (i) Related Party Transactions of major importance concluded during the reporting period (ii) Related Party Transactions,
concluded during the reference period, which influenced the Group’s financial statements or profit to a significant extent (iii) changes
or developments of the Transactions described in the previous annual report that have had a significant effect on the Group’s financial
statements or profit.
268
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
INVESTMENTS
The table below detailed the Group’s total investments, which include:
• General Account investments, presented by nature (equity investments, fixed income investments, land and building – investment
properties and similar investments, other investments and cash and cash equivalents); and
• Financial assets linked to technical reserves where the investment risk is borne by the policyholders, to financial liabilities related
to investment contracts, and reserves linked to pension funds.
General Account investments are further split into the relevant IFRS categories, as presented in the Balance Sheet.
Given their short-term investments nature, the reverse repurchase agreements are reclassified within cash and cash equivalents.
Furthermore, repurchase agreements are reclassified in the same item. Derivatives instruments are presented net of derivatives held
as financial liabilities and hedging derivatives which are presented within Other investments, as well as specific items classified in the
financial statement among other assets. Investment funds units (IFUs) are allocated to respective asset classes based on prevailing
underlying assets, therefore, they allocated within equity investments, fixed income investments, land and buildings (investment
properties and similar investments), cash and cash equivalents.
Financial assets where investment risk is borne by the policyholders are unit-linked and index-linked related to investment contracts
within the scope of IFRS 9 and pension funds.
Comments on the specific financial statement items are reported in the following paragraphs.
269
Consolidated Financial Statements
Investments table
(€ million) 31/12/2023 31/12/2022
Total Book value Impact (*) Total Book value Impact (*)
Equity investments 25,291 5.4% 26,129 5.8%
At fair value through other comprehensive income 2,460 0.5% 2,464 0.6%
At fair value through profit or loss 22,831 4.9% 23,665 5.3%
Fixed income investments 280,665 60.1% 280,489 62.7%
Bonds 233,835 50.1% 235,386 52.6%
At amortised cost 9,636 2.1% 10,691 2.4%
At fair value through other comprehensive income 216,149 46.3% 215,649 48.2%
At fair value through profit or loss 8,050 1.7% 9,045 2.0%
Other fixed income investments 46,830 10.0% 45,104 10.1%
At amortised cost 9,339 2.0% 10,051 2.2%
At fair value through other comprehensive income 4,475 1.0% 2,973 0.7%
At fair value through profit or loss 33,016 7.1% 32,079 7.2%
Land and buildings (investment properties and similar investments) 27,038 5.8% 28,942 6.5%
At acquisition cost 3,064 0.7% 3,515 0.8%
At fair value 23,973 5.1% 25,427 5.7%
Other investments 8,233 1.8% 5,878 1.3%
Investments in subsidiaries, associated companies and joint ventures at
cost or at equity
1,889 0.4% 1,532 0.3%
Investments in subsidiaries, associated companies and joint ventures at
fair value through profit or loss
823 0.2% 961 0.2%
Derivatives -164 0.0% -71 0.0%
Financial assets at fair value through profit or loss 1,041 0.2% 1,292 0.3%
Financial liabilities at fair value through profit or loss -1,205 -0.3% -1,364 -0.3%
Receivables from banks or customers 2,014 0.4% 2,122 0.5%
Other Investments 3,672 0.8% 1,335 0.3%
At fair value through other comprehensive income 5 0.0% 112 0.0%
At fair value through profit or loss 2,249 0.5% 328 0.1%
Other assets 1,418 0.3% 895 0.2%
Cash and cash equivalents 17,3 52 3.7% 10,606 2.4%
At cost/nominal 3,104 0.7% 3,676 0.8%
At fair value through other comprehensive income 269 0.1% 123 0.0%
At fair value through profit or loss 13,978 3.0% 6,807 1.5%
Total General Account investments 358,578 76.8% 352,044 78.7%
Financial assets linked to technical reserves where the investment risk
is borne by the policyholders, to financial liabilities related to investment
contracts, and reserves linked to pension funds
108,265 23.2% 95,251 21.3%
Group’s total investments 466,843 100.0% 4 47,295 100.0%
General Account investments are investments reported in the financial statements (excluding financial assets categorized as unit/
index-linked contracts and deriving from investment contract management) and cash and cash equivalents. They also include some
liabilities, with features similar to investments, among which derivative liabilities referred to the investment portfolio and repurchase
agreements (REPOs).
The item Cash and cash equivalents includes repurchase agreements accounted for as liabilities for € -4,209 million (€ -3,644 million
at 31 December 2022), while the items Derivatives and Other investments include derivative instruments accounted for as liabilities
for € -3,481 million (€ -4,572 million at 31 December 2022). The item Other investments includes Other assets, contained in the
correspondent balance sheet item.
270
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
8. Financial assets valued at amortised cost
The table below details the carrying amounts and the fair value hierarchy, by product composition, of financial assets valued at
amortised cost.
Financial assets valued at amortised cost: product composition, percentage composition and fair value hierarchy
(€ million)
Items/Values
31/12/2023 31/12/2022
Carrying
Amounts
Comp. % L1 L2 L3 Fair value Carrying
Amounts
Comp. % L1 L2 L3 Fair value
1) Debt securities 9,636 45.4% 9,190 267 75 9,532 10,679 45.8% 10,007 295 78 10,381
Government bonds 7,288 34.3% X X X X 8,085 34.7% X X X X
a) listed 7,288 34.3% X X X X 8,085 34.7% X X X X
b) unlisted 0 0.0% X X X X 0 0.0% X X X X
Other bonds 2,348 11.1% X X X X 2,594 11.1% X X X X
a) listed 2,348 11.1% X X X X 2,594 11.1% X X X X
b) unlisted 0 0.0% X X X X 0 0.0% X X X X
2) Loans and receivables 11,596 54.6% 279 8,477 2,764 11,521 12,618 54.2% 429 9,266 2,682 12,377
Total 21,232 100.0% 9,469 8,745 2,839 21,053 23,297 100.0% 10,436 9,561 2,760 22,758
The category includes 4.6% (5.2% at 31 December 2022) of the amount recognized in the investments item presented in the
balance sheet. The exposures mainly refer to bonds, equal to 45.4% (45.8% at 31 December 2022) of the category, attributable to
the operations of the Group’s banking companies, and to mortgage loans, equal to 26.2% (24 .2% as of December 31, 2022) of
this category.
The decrease recognized compared to 31 December 2022 is attributable to the decrease in exposures in bonds which amounts to
€ 9,636 million (€ 10,679 at 31 December 2022), in particular in government bonds, equal to € 7,288 million (€ 8,085 million at 31
December 2022).
The table below illustrates the amount of unrealized gains and losses for financial assets classified at amortised cost.
Financial assets at amortised cost: unrealized gains and losses
(€ million) Book Value Fair value Unrealized gains/ losses
31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022
Bonds 9,636 10,679 9,532 10,381 -104 -299
Loans and receivables 11,596 12,618 11,521 12,377 -75 -241
Total 21,232 23,297 21,053 22,758 -179 -539
The table below shows the details of financial assets valued at amortised cost by nature and credit risk stages.
Financial assets at amortised cost: product composition and credit risk stages
(€ million) Carrying Amounts 31/12/2023 Carrying Amounts 31/12/2022
First stage Second stage Third stage First stage Second stage Third stage
Government bonds 7,288 0 0 8,085 0 0
Other bonds 2,326 22 0 2,565 29 0
Loans and receivables 11,293 249 54 12,292 272 54
a) to banks 3,187 0 0 4,182 0 0
b) to customers 8,106 249 54 8,110 272 54
- mortgage loans 5,687 56 26 5,556 62 30
- policy loans 0 0 0 0 0 0
- other loans and receivables 2,419 193 28 2,554 210 25
Total 31/12/2023 20,907 271 54 0 0 0
Total 31/12/2022 0 0 0 22,942 302 54
271
Consolidated Financial Statements
Financial assets at amortised cost: gross carrying amount and ECL allocation
(€ million) Gross amount Net expected credit losses allocation Total
31/12/2023
Total
31/12/2022
First stage of which:
Assets with
low credit
risk
Second
stage
Third stage First stage of which:
Assets with
low credit
risk
Second
stage
Third stage
Government bonds 7,291 0 0 0 -3 0 0 0 7,288 8,085
di cui investment grade 7,158 0 0 0 -2 0 0 0 7,156 7,754
of which non investment
grade
33 0 0 0 -0 0 0 0 33 160
of which not rated 100 0 0 0 -1 0 0 0 98 171
Other bonds 2,329 0 22 0 -3 0 -0 0 2,348 2,594
di cui investment grade 2,147 0 2 0 -1 0 -0 0 2,147 2,437
of which non investment
grade
71 0 0 0 -1 0 0 0 70 85
of which not rated 111 0 20 0 -1 0 -0 0 130 79
Loans and receivables 11,319 0 251 99 -26 0 -2 -45 11,596 12,619
- to banks 3,198 0 0 0 -11 0 0 0 3,187 4,182
- to customers 8,121 0 251 99 -15 0 -2 -45 8,409 8,437
Total 31/12/2023 20,939 0 273 99 -32 0 -2 -45 21,232 0
Total 31/12/2022 22,966 0 305 80 -25 0 -3 -26 0 23,297
In line with the stage allocation methodology adopted by the Group, which does not explicitly provide for the use of the low credit
risk exemption, the column relating to assets with low credit risk allocated in the first stage is not filled in.
The table below presents the evolution of the credit risk stages of financial assets valued at amortised cost.
Financial assets at amortised cost: credit risk stages roll forward
31/12/2023
Fist stage Second stage Third stage Total
Opening balance -25 -3 -26 -53
Purchases and issues -5 -0 -1 -6
Sales and pay-backs 5 0 4 10
ECL remeasurement -17 0 -15 -32
Reclassification from first stage -0 0 -0
Reclassification from second stage 0 0 0
Reclassification from third stage 1 1 2
Other variations 9 -0 -8 0
Closing balance -32 -2 -45 -79
272
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
9. Financial assets at fair value through other
comprehensive income
The table below details the carrying amounts, by product composition, of financial assets valued through other comprehensive
income.
Financial assets at fair value through other comprehensive income: composition and impact
(€ million) 31/12/2023 31/12/2022
Carrying Amounts Comp. % Carrying Amounts Comp. %
Equities 2,074 0.9% 2,039 0.9%
a) quoted 1,379 0.6% 1,389 0.6%
b) unquoted 695 0.3% 650 0.3%
Bonds 216,149 96.8% 215,673 97.4%
Government bonds 128,178 57.4% 130,411 58.9%
a) quoted 121,443 54.4% 124,231 56.1%
b) unquoted 6,734 3.0% 6,181 2.8%
Other bonds 87,971 39.4% 85,262 38.5%
a) quoted 82,041 36.7% 79,228 35.8%
b) unquoted 5,930 2.7% 6,034 2.7%
Other financial assets 5,135 2.3% 3,609 1.6%
Total 223,359 100% 221,322 100%
The category includes 47.9% (49.4% at 31 December 2022) of the amount recognized in the investments item presented in the
balance sheet. It mainly consists of bonds, corresponding to 96.8% (97.4% at 31 December 2022) of the total amount recognized in
the accounting category, reflecting the Group’s hold to collect and sell business model, aimed at holding the assets financial assets
both for the purpose of collecting the contractual cash flows and for realization purposes. These exposures mainly consist of bonds
with a rating equal to or higher than BBB, the rating class assigned to Italian government bonds.
Equities held in portfolios relating to products without discretionary profit participation, amounting to € 2,074 million (€ 2,039 million
at 31 December 2022), are also included in this category.
The increase recorded compared to 31 December 2022 is attributable to the greater incidence of other bonds, equal to € 87,971
million (€ 85,262 million at 31 December 2022) and as well as to other financial assets, equal to € 5,135 million (€ 3,609 million at 31
December 2022), in particular other loans, amounting to € 4,213 million (€ 2,973 million at 31 December 2022).
Equity investments designated at fair value through other comprehensive income without recycling to the income statement
amounted to € 2,074 million (€ 2,039 million at 31 December 2022), a slight increase, following net acquisitions of shares included
in the aforementioned category.
Dividends recognized in the income statement, deriving from equity investments designated at fair value through other comprehensive
income without recycling to the income statement, amounted to € 130 million at 31 December 2023 (€ 119 million at 31 December
2022), of which € 6 million (€ 40 million at 31 December 2022) relating to assets sold during the year.
The fair value of the equity investments included in this category sold during the year is € 1,300 million (€ 1,358 million in 2022).
The realized gains recognized in equity reserve during the year amounted to € 36 million (€ -59 million at 31 December 2022).
The item “Other financial assets”, which amounts to € 5,135 million (€ 3,609 million at 31 December 2022), also includes other
273
Consolidated Financial Statements
The table below shows unrealized profits and losses for financial assets at fair value through other comprehensive income.
Financial assets through other comprehensive income: unrealized gains and losses
(€ million) Book Value Amortised cost Unrealized gains/ losses
31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022
Equity investments 2,074 2,039 1,901 1,983 173 56
Bonds 216,149 215,673 240,646 253,229 -24,497 -37,556
Other financial assets 5,135 3,609 4,834 3,745 302 -136
Total 223,359 221,322 247,381 258,958 -24,022 -37,636
The table below shows the detail of financial assets at fair value through other comprehensive income by nature and stage of credit
risk.
Financial assets at fair value through other comprehensive income: gross carrying amount and ECL allocation
(€ million) Gross amount Net expected credit losses allocation Total
31/12/2023
Total
31/12/2022
First
stage
of which:
Assets with
low credit
risk
Second
stage
Third stage First
stage
of which:
Assets with
low credit
risk
Second
stage
Third stage
Government bonds 128,156 0 22 1 -112 0 -17 -12 128,038 130,190
of which investment grade 121,362 0 0 0 -90 0 0 0 121,273 124,086
of which non investment
grade
876 0 17 0 -18 0 -16 0 860 1,169
of which not rated 5,917 0 4 1 -4 0 -1 -12 5,905 4,568
Other bonds 87,372 0 453 146 -241 0 -35 -72 87,623 84,849
of which investment grade 82,443 0 234 0 -193 0 -9 0 82,474 78,156
of which non investment
grade
4,733 0 209 27 -26 0 -25 -45 4,873 5,454
of which not rated 196 0 11 119 -21 0 -1 -28 276 1,165
Other financial assets 4,748 0 1 0 -32 0 -0 0 4,717 3,173
Total 31/12/2023 220,276 0 476 146 -385 0 -52 -84 220,378 0
Total 31/12/2022 217,13 0 0 1,186 548 -559 0 -46 -48 0 218,212
In line with the stage allocation methodology adopted by the Group, which does not explicitly provide for the use of the low credit
risk exemption, the column relating to assets with low credit risk allocated in the first stage is not filled in.
The table below shows the evolution of the credit risk stages of financial assets through other comprehensive income.
Financial assets at fair value through other comprehensive income: credit risk stages roll forward
(€ million) 31/12/2023
Fist stage Second stage Third stage Total
Opening balance -559 -46 -48 -652
Purchases and issues -48 -0 -0 -49
Sales and pay-backs 63 2 22 88
ECL remeasurement 120 -0 -44 76
Reclassification from first stage 0 -22 -9 -32
Reclassification from second stage 3 0 0 3
Reclassification from third stage 0 0 0 0
Other variations 36 14 -5 45
Closing balance -385 -52 -84 -520
274
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
10. Financial assets at fair value through profit or loss
The table below shows the carrying amounts, by product composition, of financial assets at fair value through profit or loss. It should
be noted that the financial assets linked to technical reserves where the investment risk is borne by the policyholders, to financial
liabilities related to investment contracts, and reserves linked to pension funds, are included, by convention, in the item “Financial
assets designated at fair value”.
Financial assets at fair value through profit or loss: composition and impact
(€ million) Financial assets held for trading Financial assets designed at fair value Financial assets mandatorily measured at
fair value
31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022
Items/Values Carrying
Amounts
Comp. % Carrying
Amounts
Comp. % Carrying
Amounts
Comp. % Carrying
Amounts
Comp. % Carrying
Amounts
Comp. % Carrying
Amounts
Comp. %
Equities 1 0.1% 1 0.1% 5,796 5.3% 5,299 5.5% 4,359 5.1% 5,974 7.7%
a) quoted 1 0.1% 1 0.1% 4,304 4.0% 3,417 3.6% 3,788 4.5% 5,645 7.3%
b) unquoted 0 0.0% 0 0.0% 1,492 1.4% 1,882 2.0% 571 0.7% 328 0.4%
Own shares 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
Own financial liabilities 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
Bonds 0 0.0% 14 1.1% 9,363 8.6% 6,651 6.9% 8,050 9.5% 9,018 11.6%
a) quoted 0 0.0% 14 1.1% 9,153 8.4% 6,443 6.7% 7,283 8.6% 8,618 11.1%
b) unquoted 0 0.0% 0 0.0% 210 0.2% 208 0.2% 767 0.9% 400 0.5%
Investment fund units 55 5.0% 38 2.8% 91,896 84.5% 81,741 85.2% 58,212 68.4% 49,239 63.4%
Derivatives 1,041 94.9% 1,292 96.0% -186 -0.2% -251 -0.3% 0 0.0% 0 0.0%
Hedging derivatives 0 0.0% 0 0.0% 437 0.4% 649 0.7% 0 0.0% 0 0.0%
Other financial assets 0 0.0% 0 0.0% 1,395 1.3% 1,853 1.9% 14,492 17.0% 13,473 17.3%
Total 1,097 100% 1,346 100% 108,701 100% 95,942 100% 85,114 100% 77,703 100%
The category represents 41.8% (39.1% at 31 December 2022) of total investments. In particular, these investments are mainly
concentrated in the Life segment, equal to 94.4% of the total amount (€ 184,051 million at 31 December 2023). The increase
recorded compared to 31 December 2022 is mainly attributable to the increase in carrying amounts of financial assets designated
at fair value, in particular of investment fund units, almost entirely attributable to financial assets linked to technical reserves where
the investment risk is borne by the policyholders, to financial liabilities related to investment contracts, and reserves linked to pension
funds, and quoted bonds.
11. Investment properties
The table below shows, split by measurement model, the amount of investment properties held for the purpose of receiving rent and/
or to achieve objectives of appreciation of the invested capital.
Investment properties: composition
(€ million) At cost At fair value
Activities/Values 31/12/2023 31/12/2022 31/12/2023 31/12/2022
1. Land and buildings (investment properties) owned 956 961 9,338 9,739
a) land 83 101 2 2
b) buildings 873 861 9,336 9,738
2. Land and buildings (investment properties) subject to operating
leases
2,109 2,554 11,429 12,373
a) land 164 180 357 363
b) buildings 1,945 2,373 11,072 12,009
Total 3,064 3,515 20,767 22,112
275
Consolidated Financial Statements
Land and buildings (investment properties) amounted to € 23,381 million (€ 25,627 million at 31 December 2022).
In term of incident, land and buildings (investment properties) measured at fair value represent 86.9% (86.3% at 31 December 2022)
of the total of this category and mainly consists of backing contracts with direct participation feature.
The table below presents the main changes that occurred in the period and the detail of fair value:
Investment properties: variations
(€ million) Land Buildings Total
A. Opening balances 646 25,884 26,530
A.1 Accumulated depreciation and impairment 0 -903 -903
A.2 Net opening balance 646 24,981 25,627
A.2.a Adjustment opening balances 0 0 0
B. Increases 22 1,672 1,694
B.1 Acquisitions 20 859 879
B.2 Capitalized expenses 0 115 115
B.3 Positive changes in fair value 0 346 346
B.4 Reversals of impairment losses 0 0 0
B.5 Positive exchange differences 0 96 96
B.6 Transfers from self-used properties 2 256 258
B.7 Other changes 0 0 0
C. Decreases -63 -3,428 -3,490
C.1 Sales -55 -1,161 -1,217
C.2 Depreciations 0 -60 -60
C.3 Negative changes in fair value 0 -1,828 -1,828
C.4 Impairment losses 0 -51 -51
C.5 Negative exchange differences -0 0 -0
C.6 Transfers to: -0 -236 -236
a) self-used properties for own use -0 -236 -236
b) non-current assets and disposal groups held for sale 0 0 0
C.7 Other changes -7 -92 -99
D. Net final carrying amount 606 23,225 23,831
D.1 Accumulated depreciation and impairment 0 -905 -905
D.2 Gross book value 606 24,130 24,736
E. Fair value measurement 614 25,464 26,078
The fair value of the investment properties at the end of the period was determined on the basis of appraisals commissioned mainly
12. Cash and cash equivalents
Cash and cash equivalents
(€ million) 31/12/2023 31/12/2022
Cash and cash equivalents 148 332
Cash and balances with central banks 578 706
Cash at bank and credit balances with banks payable on demand 6,344 5,849
Total 7,0 70 6,887
During the year, cash and cash equivalents increased to €7,070 million (€ 6,887 million at 31 December 2022). This trend is
consistent with the aim of supporting any liquidity needs arising from Life segment operations.
276
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
13. Financial liabilities at fair value through profit or loss
The below table provides the breakdown of the carrying value, by composition, of financial liabilities measured at fair value through
profit or loss.
Financial liabilities at fair value through profit or loss: composition and impact
(€ million) Financial liabilities held for trading Financial liabilities designated at fair value Total
31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022
Items/Values Carrying
Amounts
Comp. % Carrying
Amounts
Comp. % Carrying
Amounts
Comp. % Carrying
Amounts
Comp. % Carrying
Amounts
Comp. % Carrying
Amounts
Comp. %
Investment contracts issued
IFRS 9:
0 0.0% 0 0.0% 5,104 67.7% 4,694 58.3% 5,104 58.4% 4,694 49.8%
a) investment contracts
where the investment
risk is borne by the
policyholders
0 0.0% 0 0.0% 3,560 47.2% 3,776 46.9% 3,560 40.7% 3,776 40.1%
b) pension funds 0 0.0% 0 0.0% 636 8.4% 756 9.4% 636 7.3% 756 8.0%
c) other financial liabilities
issued
0 0.0% 0 0.0% 908 12.1% 162 2.0% 908 10.4% 162 1.7%
Derivatives 1,205 100.0% 1,364 100.0% 0 0.0% 0 0.0% 1,205 13.8% 1,364 14.5%
Hedging derivatives 0 0.0% 0 0.0% 2,404 31.9% 3,332 41.4% 2,404 27.5% 3,332 35.4%
Other financial liabilities 0 0.0% 0 0.0% 28 0.4% 28 0.3% 28 0.3% 28 0.3%
Total 1,205 100.00% 1,364 100.00% 7,535 100.00% 8,054 100.00% 8,740 100.00% 9,417 100.00%
The financial liabilities at fair value through profit or loss mainly consist of financial liabilities designated at fair value, accounting for
86.2% (85.5% at 31 December 2022) of the total item. In particular, this category includes investment contracts falling within the
scope of IFRS 9, amounting to € 5,104 million (€ 4,694 million at 31 December 2022), primarily related to investment contracts where
the investment risk is borne by the policyholders for € 3,560 million (€ 3,776 million at 31 December 2022). Additionally, the amount
14. Financial liabilities at amortised cost
Financial liabilities at amortised cost: composition, impact and fair value hierarchy
(€ million)
Items/Values
31/12/2023 31/12/2022
Carrying
Amounts
Comp. % L1 L2 L3 Total Fair
value
Carrying
Amounts
Comp. % L1 L2 L3 Total Fair
value
Equity instruments 0 0.0% 0 0 0 0 0 0.0% 0 0 0 0
Subordinated liabilities 9,040 25.6% 8,263 523 26 8,812 8,358 23.1% 7,248 571 24 7,843
Bonds issued 1,767 5.0% 1,757 0 0 1,757 1,765 4.9% 1,791 0 0 1,791
Other loans received 24,538 69.4% 244 15,753 8,553 24,549 26,101 72.1% 940 17,197 8,458 26,595
- from banks 6,565 18.6% X X X X 5,980 16.5% X X X X
- from customers 17,973 50.8% X X X X 20,121 55.5% X X X X
Total 35,346 100% 10,264 16,276 8,578 35,118 36,225 100% 9,979 17,768 8,482 36,229
The increase in Subordinated liabilities primarily stems from two bond issuances occurred in April and September, totaling € 1 billion.
This rise was partly mitigated by a cash buyback of roughly € 500 million of a perpetual bond, approximately € 351 million of which was
held by external investors, along with the exercise of an early redemption option worth € 100 million for a bond issued by Genertel S.p.A,
about € 51 million of which was held by external investors.
The following tables sort Senior and Subordinated liabilities into categories based on maturity, or first call date, when applicable. For
each category of maturity, the undiscounted cash flows (including the related hedging derivatives), the book value and the fair value of
financial liabilities are reported.
277
Consolidated Financial Statements
Subordinated liabilities - undiscounted cash flows
31/12/2023 31/12/2022
(€ million) Contractual
undiscounted
cash flows
Book value Fair value Contractual
undiscounted
cash flows
Book value Fair value
Up to 1 year 399 8 8 467 55 53
From 1 year up to 5 years 6,304 5,124 5,110 5,999 4,578 4,472
From 5 years up to 10 years 4,362 3,908 3,694 4,075 3,725 3,318
Over 10 years 0 0 0 0 0 0
Total subordinated liabilities 11,065 9,040 8,812 10,542 8,358 7,84 3
The following main subordinated issuances are included as part of the subordinated liabilities category:
Main subordinated issues
Nominal rate Nominal issued
(*)
Currency Ammortized cost
(**)
Issuance Call Maturity
Assicurazioni Generali 6.27% 350 GBP 417 16/06/2006 16/06/2026 Perp
Assicurazioni Generali 4.13% 1,000 EUR 1,024 02/05/2014 n.a. 04/05/2026
Assicurazioni Generali 4.60% 1,000 EUR 995 21/11/2014 21/11/2025 Perp
Assicurazioni Generali 5.50% 1,250 EUR 1,259 27/10/2015 27/10/2027 27/10/2047
Assicurazioni Generali 5.00% 850 EUR 869 08/06/2016 08/06/2028 08/06/2048
Assicurazioni Generali 3.88% 500 EUR 516 29/01/2019 n.a. 29/01/2029
Assicurazioni Generali 2.12% 750 EUR 752 01/10/2019 n.a. 01/10/2030
Assicurazioni Generali 2.43% 600 EUR 604 14/07/2020 14/01/2031 14/07/2031
Assicurazioni Generali 1.71% 500 EUR 502 30/06/2021 30/12/2031 30/06/2032
Assicurazioni Generali 5.80% 500 EUR 512 06/07/2022 06/01/2032 06/07/2032
Assicurazioni Generali 5.40% 500 EUR 516 20/04/2023 20/10/2032 20/04/2033
Assicurazioni Generali 5.27% 500 EUR 505 12/09/2023 12/03/2033 12/09/2033
Genertel S.p.A. 4.25% 500 EUR 542 14/12/2017 14/12/2027 14/12/2047
(*) In millions, in currency.
Subordinated liabilities issued by Assicurazioni Generali S.p.A. and Genertel S.p.A. are classified in this category. The remaining
subordinated liabilities are related to the securities issued by Austrian subsidiaries and correspond to an amortised cost of
approximately € 26 million.
As previously mentioned, the primary changes are related with the issuance of new subordinated green bonds totaling € 1 billion in
nominal value on one side, and the partial cash repurchase of perpetual bonds totaling roughly € 500 million, alongside the exercise
of an early redemption option worth € 100 million on the other.
The fair value of subordinated liabilities amounted to € 8,812 million (€ 7,843 million at 31 December 2022).
Senior bonds - undiscounted cash flows
(€ million) 31/12/2023 31/12/2022
Contractual
undiscounted
cash flows
Book value Fair value Contractual
undiscounted
cash flows
Book value Fair value
Up to 1 year 1,840 1,767 1,757 90 0 0
From 1 year up to 5 years 0 0 0 1,840 1,765 1,791
From 5 years up to 10 years 0 0 0 0 0 0
Over 10 years 0 0 0 0 0 0
Total debt securities issued 1,840 1,767 1,757 1,929 1,765 1,791
278
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
The category of bonds includes the listed senior issuance shown below:
Main senior bonds issues
Issuer Nominal rate Nominal issued
(*)
Currency Ammortized cost
(**)
Issuance Maturity
Assicurazioni Generali 5.13% 1,750 EUR 0 16/09/2009 16/09/2024
(*) In millions, in currency.
Details on financial liabilities
The major monetary and non-monetary changes occurred during the period for the main items of financial liabilities (non-insurance)
as well as for derivatives at fair value are shown below:
Details on financial liabilities
(€ million) Carrying
amount as at
31 December
previous year
Monetary
movements
Non-monetary movements Carrying
amount as at
the end of the
period
Changes in fair
value
Changes in
consolidation
scope
Foreign
currency
translation
effects
Other non-
monetary
movements
Subordinated liabilities 8,358 714 0 -41 9 0 9,040
Net position of hedging derivatives on
subordinated liabilities
124 -0 3 0 3 0 128
Bonds and other loans at long term 4,736 -299 0 136 2 9 4,584
Derivatives and hedging derivatives
classified as financial liabilities
4,572 -1,156 -91 0 60 0 3,385
REPO and other short-term financial
liabilities
3,644 650 0 0 -85 0 4,209
Other liabilities evaluated at fair value 28 0 0 0 0 0 28
Total 21,462 -92 -89 95 -11 9 21,375
279
Consolidated Financial Statements
15. Investments income and expenses
Insurance activities - Net financial result of investments by Life and Property&Casualty segment
(€ million)
Items/Bases of aggregation
Life business
31/12/2023
Of which:
DPF
Property&Casualty
31/12/2023
Total
31/12/2023
Life business
31/12/2022
Of which:
DPF
Property&Casualty
31/12/2022
Total
31/12/2022
A. NET FINANCIAL RESULT OF
INVESTMENTS
30,219 27,565 3,333 33,552 -70,279 -67, 260 -3,407 -73,686
A.1 Interest income from
financial assets at amortised
cost and fair value through other
comprehensive income
6,164 5,330 843 7,007 6,525 5,839 646 7,171
A.2 Net gains/losses on assets at
fair value through profit or loss
12,346 11,896 348 12,694 -18,740 -17,829 -188 -18,928
A.3 Net expected credit losses
allocation
20 57 -27 -7 -256 -214 -95 -352
A.4 Other income/expenses 516 45 270 786 1,674 1,354 306 1,981
A.5 Net gains/losses on financial
assets at fair value through other
comprehensive income
11,173 10,237 1,900 13,072 -59,481 -56,409 -4,077 -63,558
B. NET CHANGE IN IFRS9
INVESTMENT CONTRACTS
-361 0 0 -361 605 -1 0 605
1. TOTAL NET FINANCIAL
RESULT OF INVESTMENTS
29,858 2 7,5 65 3,333 33,191 -69,674 -67,261 -3,407 -73,081
of which: recorded in profit
or loss
18,685 17,32 8 1,433 20,118 -10,193 -10,851 670 -9,523
of which: recorded in other
comprehensive income
11,173 10,237 1,900 13,072 -59,481 -56,409 -4,077 -63,558
The table above shows the composition of net investments financial result for each operating segment, detailing the amount
recognized in profit or loss (€ 20,118 million at 31 December compared to € -9,523 million at 31 December 2022) and in the
statement of other comprehensive income (€ 13,072 million at 31 December 2023 compared to € -63,558 million at 31 December
2022). The net change in IFRS9 investment contracts stands at € -361 million (€ 605 million at 31 December 2022).
280
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Investment return by asset class
(€ million) 31/12/2023 Financial assets IAS 28 IAS 40 Other assets and
financial liabilities
Investment
management
expenses/net
gains on foreign
currencies
Total
Equity Instruments Fixed Income Investment funds Other Investments Subsidiaries,
associated
companies and
joint ventures
Real Estate
FVTPL FVOCI FVTPL FVOCI AC FVTPL AC
Income/expenses from financial assets, investment properties,
subsidiaries, associated companies and joint ventures
225 130 366 6,606 576 1,850 355 58 198 710 0 0 11,074
Realized gains/losses 384 0 58 -306 5 310 -183 272 -9 252 0 0 783
Realized gains 477 0 68 487 10 406 1,128 324 0 273 0 0 3,171
Realized losses -93 0 -9 -792 -5 -96 -1,311 -51 -9 -21 0 0 -2,388
Unrealized gains/losses 227 0 391 10 -17 590 -143 -67 -1,462 -51 0 0 -522
Unrealized gains 452 0 459 0 0 1,723 1,150 0 198 0 0 0 3,982
Unrealized losses -224 0 -68 0 0 -1,133 -1,290 -0 -1,660 0 0 0 -4,375
Net expected credit losses allocation and impairment 0 0 0 10 -17 0 -4 -67 0 -51 0 0 -129
- Unrealized losses 0 0 0 0 0 0 0 0 0 0 429 0 429
Investment results from unit-linked assets and pension funds (*) 0 0 0 0 0 0 0 0 0 0 8,450 0 8,450
Total Finance result 836 130 815 6,310 563 2,751 29 264 -1,273 911 8,878 0 20,213
Investment management expenses 0 0 0 0 0 0 0 0 0 0 0 -339 -339
FX effect 0 0 0 0 0 0 0 0 0 0 0 -142 -142
Total P&L return 836 130 815 6,310 563 2,751 29 264 -1,273 911 8,397 0 19,732
Net gains and losses on equity instruments designated at fair value
through other comprehensive income
0 30 0 0 0 0 -38 0 0 0 0 0 -8
Net gains and losses on financial assets (other than equity instruments)
at fair value through other comprehensive income
0 0 0 12,390 0 0 0 0 0 0 0 0 12,390
Net gains and losses on hedging derivatives and other gains and losses 0 0 0 312 0 0 427 0 0 0 0 0 739
Total investments comprehensive return 836 160 815 19,012 563 2,751 418 264 -1,273 911 8,397 0 32,855
(*) The investment result from unit-linked assets and pension funds refers to financial assets linked to technical reserves where the investment risk is borne by the policyholders, to financial liabilities related
to investment contracts, and reserves linked to pension funds.
281
Consolidated Financial Statements
Investment return by asset class
(€ million) 31/12/2023 Financial assets IAS 28 IAS 40 Other assets and
financial liabilities
Investment
management
expenses/net
gains on foreign
currencies
Total
Equity Instruments Fixed Income Investment funds Other Investments Subsidiaries,
associated
companies and
joint ventures
Real Estate
FVTPL FVOCI FVTPL FVOCI AC FVTPL AC
Income/expenses from financial assets, investment properties,
subsidiaries, associated companies and joint ventures
225 130 366 6,606 576 1,850 355 58 198 710 0 0 11,074
Realized gains/losses 384 0 58 -306 5 310 -183 272 -9 252 0 0 783
Realized gains 477 0 68 487 10 406 1,128 324 0 273 0 0 3,171
Realized losses -93 0 -9 -792 -5 -96 -1,311 -51 -9 -21 0 0 -2,388
Unrealized gains/losses 227 0 391 10 -17 590 -143 -67 -1,462 -51 0 0 -522
Unrealized gains 452 0 459 0 0 1,723 1,150 0 198 0 0 0 3,982
Unrealized losses -224 0 -68 0 0 -1,133 -1,290 -0 -1,660 0 0 0 -4,375
Net expected credit losses allocation and impairment 0 0 0 10 -17 0 -4 -67 0 -51 0 0 -129
- Unrealized losses 0 0 0 0 0 0 0 0 0 0 429 0 429
Investment results from unit-linked assets and pension funds (*) 0 0 0 0 0 0 0 0 0 0 8,450 0 8,450
Total Finance result 836 130 815 6,310 563 2,751 29 264 -1,273 911 8,878 0 20,213
Investment management expenses 0 0 0 0 0 0 0 0 0 0 0 -339 -339
FX effect 0 0 0 0 0 0 0 0 0 0 0 -142 -142
Total P&L return 836 130 815 6,310 563 2,751 29 264 -1,273 911 8,397 0 19,732
Net gains and losses on equity instruments designated at fair value
through other comprehensive income
0 30 0 0 0 0 -38 0 0 0 0 0 -8
Net gains and losses on financial assets (other than equity instruments)
at fair value through other comprehensive income
0 0 0 12,390 0 0 0 0 0 0 0 0 12,390
Net gains and losses on hedging derivatives and other gains and losses 0 0 0 312 0 0 427 0 0 0 0 0 739
Total investments comprehensive return 836 160 815 19,012 563 2,751 418 264 -1,273 911 8,397 0 32,855
(*) The investment result from unit-linked assets and pension funds refers to financial assets linked to technical reserves where the investment risk is borne by the policyholders, to financial liabilities related
to investment contracts, and reserves linked to pension funds.
282
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Investment return by asset class
(€ million) 31/12/2022 Financial assets IAS 28 IAS 40 Other assets and
financial liabilities
Investment
management
expenses/net
gains on foreign
currencies
Total
Equity Instruments Fixed Income Investment funds Other Investments Subsidiaries,
associated
companies and
joint ventures
Real Estate
FVTPL FVOCI FVTPL FVOCI AC FVTPL AC
Income/expenses from financial assets, investment properties,
subsidiaries, associated companies and joint ventures
326 119 389 6,895 420 1,554 46 210 198 697 0 0 10,853
Realized gains/losses -253 0 -17 194 11 -258 274 -7 2 100 0 0 46
Realized gains 210 0 23 635 35 85 1,135 8 2 107 0 0 2,240
Realized losses -463 0 -40 -441 -24 -343 -861 -15 0 -7 0 0 -2,194
Unrealized gains/losses -866 0 -1,706 -321 -5 -4,451 -564 -9 137 -41 0 0 -7,825
Unrealized gains 570 0 79 0 0 1,773 2,787 0 601 0 0 0 5,810
Unrealized losses -1,435 0 -1,785 0 0 -6,224 -3,349 -3 -464 0 0 0 -13,260
Net expected credit losses allocation and impairment 0 0 0 -321 -5 0 -2 -6 0 -41 0 0 -375
- Unrealized losses 0 0 0 0 0 0 0 0 0 0 -151 0 -151
Investment results from unit-linked assets and pension funds (*) 0 0 0 0 0 0 0 0 0 0 -12,467 0 -12,467
Total Finance result -793 119 -1,334 6,767 426 -3,155 -244 194 338 756 -12,618 0 -9,544
Investment management expenses 0 0 0 0 0 0 0 0 0 0 0 -300 -300
FX effect 0 0 0 0 0 0 0 0 0 0 0 140 140
Total P&L return -793 119 -1,334 6,767 426 -3,155 -244 194 338 756 -12,778 0 -9,704
Net gains and losses on equity instruments designated at fair value
through other comprehensive income
0 -375 0 0 0 0 0 0 0 0 0 0 -375
Net gains and losses on financial assets (other than equity instruments)
at fair value through other comprehensive income
0 0 0 -63,246 0 0 0 0 0 0 0 0 -63,246
Net gains and losses on hedging derivatives and other gains and losses 0 0 0 63 0 0 -1,587 0 0 0 0 0 -1,524
Total investments comprehensive return -793 -256 -1,334 -56,415 426 -3,155 -1,831 194 338 756 -12,778 0 -74,849
(*) The investment result from unit-linked assets and pension funds refers to financial assets linked to technical reserves where the investment risk is borne by the policyholders, to financial liabilities related
to investment contracts, and reserves linked to pension funds.
283
Consolidated Financial Statements
Investment return by asset class
(€ million) 31/12/2022 Financial assets IAS 28 IAS 40 Other assets and
financial liabilities
Investment
management
expenses/net
gains on foreign
currencies
Total
Equity Instruments Fixed Income Investment funds Other Investments Subsidiaries,
associated
companies and
joint ventures
Real Estate
FVTPL FVOCI FVTPL FVOCI AC FVTPL AC
Income/expenses from financial assets, investment properties,
subsidiaries, associated companies and joint ventures
326 119 389 6,895 420 1,554 46 210 198 697 0 0 10,853
Realized gains/losses -253 0 -17 194 11 -258 274 -7 2 100 0 0 46
Realized gains 210 0 23 635 35 85 1,135 8 2 107 0 0 2,240
Realized losses -463 0 -40 -441 -24 -343 -861 -15 0 -7 0 0 -2,194
Unrealized gains/losses -866 0 -1,706 -321 -5 -4,451 -564 -9 137 -41 0 0 -7,825
Unrealized gains 570 0 79 0 0 1,773 2,787 0 601 0 0 0 5,810
Unrealized losses -1,435 0 -1,785 0 0 -6,224 -3,349 -3 -464 0 0 0 -13,260
Net expected credit losses allocation and impairment 0 0 0 -321 -5 0 -2 -6 0 -41 0 0 -375
- Unrealized losses 0 0 0 0 0 0 0 0 0 0 -151 0 -151
Investment results from unit-linked assets and pension funds (*) 0 0 0 0 0 0 0 0 0 0 -12,467 0 -12,467
Total Finance result -793 119 -1,334 6,767 426 -3,155 -244 194 338 756 -12,618 0 -9,544
Investment management expenses 0 0 0 0 0 0 0 0 0 0 0 -300 -300
FX effect 0 0 0 0 0 0 0 0 0 0 0 140 140
Total P&L return -793 119 -1,334 6,767 426 -3,155 -244 194 338 756 -12,778 0 -9,704
Net gains and losses on equity instruments designated at fair value
through other comprehensive income
0 -375 0 0 0 0 0 0 0 0 0 0 -375
Net gains and losses on financial assets (other than equity instruments)
at fair value through other comprehensive income
0 0 0 -63,246 0 0 0 0 0 0 0 0 -63,246
Net gains and losses on hedging derivatives and other gains and losses 0 0 0 63 0 0 -1,587 0 0 0 0 0 -1,524
Total investments comprehensive return -793 -256 -1,334 -56,415 426 -3,155 -1,831 194 338 756 -12,778 0 -74,849
(*) The investment result from unit-linked assets and pension funds refers to financial assets linked to technical reserves where the investment risk is borne by the policyholders, to financial liabilities related
to investment contracts, and reserves linked to pension funds.
284
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
16. Expected credit losses
The table below shows the ECL allocation and reversal details for the financial assets divided by credit risk stage.
ECL allocation and reversal by stage
(€ million) ECL allocation Reversal ECL
First stage of which:
Assets with
low credit risk
Second stage Third stage First stage of which:
Assets with
low credit risk
Second stage Third stage
Government bonds -27 0 -10 -12 106 0 7 1
Other bonds -85 0 -23 -46 129 0 8 5
Loans and receivables -52 0 -2 -28 12 0 1 4
- to banks -10 0 0 0 3 0 0 0
- to customers -42 0 -2 -28 10 0 1 4
Total 31/12/2023 -163 0 -35 -85 247 0 16 9
Total 31/12/2022 -392 0 -15 -55 117 0 11 8
During 2023 an ECL reduction is observed, resulting in a reversal at profit or loss, following improved macroeconomic scenario which
17. Details on investments
17.1. Bonds
The below table presents the book value of bonds (government and corporate bonds), divided by accounting treatment, detailed by
rating and maturity:
Bonds: details for rating
(€ million) Financial assets at
fair value through
other comprehensive
income
Financial assets at
fair value through
profit or loss
Financial assets at
amortised cost
Total
AAA 12,883 255 1,131 14,269
AA 46,723 987 746 48,456
A 57,320 2,132 773 60,225
BBB 87,113 2,973 6,654 96,740
Non investment grade 5,863 915 104 6,882
Not rated 6,247 788 229 7,264
Total General account 216,149 8,050 9,636 233,835
Financial assets linked to technical reserves where the investment risk
is borne by the policyholders, to financial liabilities related to investment
contracts, and reserves linked to pension funds
0 9,363 0 9,363
Total 216,149 17,413 9,636 243,198
285
Consolidated Financial Statements
Bonds: details for maturity
(€ million) Financial assets at
fair value through
other comprehensive
income
Financial assets at
fair value through
profit or loss
Financial assets at
amotized cost
Total
Up to 1 year 11,950 948 1,507 14,405
Between 1 and 5 years 54,618 1,063 5,501 61,181
Between 5 and 10 years 51,409 605 2,080 54,094
Beyond 10 years 95,481 4,167 548 100,196
Perpetual 2,691 1,267 0 3,959
Total General account 216,149 8,050 9,636 233,835
Financial assets linked to technical reserves where the investment risk
is borne by the policyholders, to financial liabilities related to investment
contracts, and reserves linked to pension funds
0 9,363 0 9,363
Total 216,149 17,413 9,636 243,198
Bond investments, amounting to € 243,198 million, is composed for € 137,359 million of government bonds, for € 96,476 million of
corporate bonds, and for € 9,363 million of financial assets linked to technical reserves where the investment risk is borne by the
policyholders, to financial liabilities related to investment contracts, and reserves linked to pension funds.
With reference to government bonds exposures, reported at book value, the breakdown by country of risk is provided below:
Government bonds: breakdown by country of risk
(€ million) 31/12/2023 31/12/2022
Book Value Impact (%) Book Value Impact (%)
Italy 38,511 27.4% 42,569 29.7%
France 21,964 15.6% 25,030 17.4%
Spain 20,565 14.6% 20,194 14.1%
Central - Eastern Europe 12,908 9.2% 12,965 9.0%
Rest of Europe 23,952 17.1% 22,277 15.5%
Germany 2,875 2.0% 2,838 2.0%
Austria 1,792 1.3% 1,844 1.3%
Belgium 7,893 5.6% 7,441 5.2%
Other 11,391 8.1% 10,153 7.1%
Rest of World 13,896 9.9% 12,615 8.8%
Supranational 5,563 4.0% 5,205 3.6%
Total General account 137,359 97.8% 140,855 98.1%
Financial assets linked to technical reserves where the investment risk
is borne by the policyholders, to financial liabilities related to investment
contracts, and reserves linked to pension funds
3,120 2.2% 2,695 1.9%
Total Government bonds 140,479 100.0% 143,551 100.0%
The government bonds portfolio amounted to € 140,479 million (€ 143,551 million at 31 December 2022), of which € 3,120 million
(€ 2,695 million at 31 December 2022) of financial assets linked to technical reserves where the investment risk is borne by the
policyholders, to financial liabilities related to investment contracts, and reserves linked to pension funds. In term of exposures,
57.6% of the portfolio consists of Italian, French, and Spanish government bonds. The exposure to individual sovereign bonds is
mainly allocated to their respective countries of operation.
286
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
With reference to government bonds exposures, reported at book value, the breakdown by rating is provided below:
Government bonds: breakdown by rating
(€ million) 31/12/2023 31/12/2022
Book Value Impact (%) Book Value Impact (%)
AAA 8,892 6.3% 8,100 5.6%
AA 39,399 28.0% 41,253 28.7%
A 32,295 23.0% 29,497 20.5%
BBB 50,893 36.2% 57,382 40.0%
Non investment grade 1,191 0.8% 1,471 1.0%
Not rated 4,689 3.3% 3,152 2.2%
Total General account 137,359 97.8% 140,856 98.1%
Financial assets linked to technical reserves where the investment risk
is borne by the policyholders, to financial liabilities related to investment
contracts, and reserves linked to pension funds
3,120 2.2% 2,695 1.9%
Total Government bonds 140,479 100.0% 143,551 100.0%
In term of exposures to different asset classes, the Class AAA includes mainly Swiss and German government bonds, the Class
AA predominantly includes French and German government bonds, while both the Class A and Class BBB primarily include Italian
government bonds.
With reference to corporate bonds exposures, reported at book value, the breakdown by sector is provided below:
Corporate bonds: breakdown by sector
(€ million) 31/12/2023 31/12/2022
Book Value Impact (%) Book Value Impact (%)
Financial 32,314 31.5% 30,507 31.0%
Covered Bonds 7,864 7.7% 8,853 9.0%
Utilities 12,297 12.0% 11,794 12.0%
Consumer 9,786 9.5% 9,148 9.3%
Industrial 7,689 7.5% 7,148 7.3%
Health care 4,618 4.5% 4,433 4.5%
Energy 2,960 2.9% 3,377 3.4%
Other 18,947 18.4% 19,286 19.6%
Total General account 96,476 93.9% 94,545 96.0%
Financial assets linked to technical reserves where the investment risk is borne
by the policyholders, to financial liabilities related to investment contracts, and
reserves linked to pension funds
6,243 6.1% 3,942 4.0%
Total Corporate bonds 102,719 100.0% 98,488 100.0%
The corporate bonds portfolio amounted to € 102,719 million (€ 98,488 million at 31 December 2022), of which € 6,243 million
(€ 3,942 million at 31 December 2022) of financial assets linked to technical reserves where the investment risk is borne by the
policyholders, to financial liabilities related to investment contracts, and reserves linked to pension funds. In terms of exposures, the
portfolio is composed for 54.8% (56.1% at 31 December 2022) by non-financial corporate bonds, for 39.2% (40.0% at 31 December
2022) by financial corporate bonds and for 6.1% (4.0% at 31 December 2022) by exposures in financial assets linked to technical
reserves where the investment risk is borne by the policyholders, to financial liabilities related to investment contracts, and reserves
linked to pension funds.
287
Consolidated Financial Statements
With reference to corporate bonds exposures, reported at book value, the breakdown by rating is provided below:
Corporate bonds: breakdown by rating
(€ million) 31/12/2023 31/12/2022
Book Value Impact (%) Book Value Impact (%)
AAA 5,377 5.2% 6,424 6.5%
AA 9,057 8.8% 8,297 8.4%
A 27,915 27.2% 25,347 25.7%
BBB 45,862 44.6% 45,467 46.2%
Non investment grade 5,691 5.5% 6,957 7.1%
Not rated 2,575 2.5% 2,054 2.1%
Total General account 96,476 93.9% 94,546 96.0%
Financial assets linked to technical reserves where the investment risk
is borne by the policyholders, to financial liabilities related to investment
contracts, and reserves linked to pension funds
6,243 6.1% 3,942 4.0%
Total Corporate bonds 102,719 100.0% 98,488 100.0%
In term of exposures to different asset classes, the Class AAA includes mainly German corporate bonds, the Class AA predominantly
includes French and German corporate bonds, while both the Class A and Class BBB primarily include Italian, French and German
corporate bonds.
17.2. Equities
With reference to equity investments, reported at book value, the breakdown by sector is provided below:
Equity investments: breakdown by sector
(€ million) 31/12/2023 31/12/2022
Book Value Impact (%) Book Value Impact (%)
Equity investments 25,291 100.0% 26,129 100.0%
Financial 1,820 7.2% 2,005 7.7%
Consumer 803 3.2% 1,309 5.0%
Industrial 565 2.2% 977 3.7%
Energy 604 2.4% 622 2.4%
Other 2,643 10.4% 3,102 11.9%
Alternative investments 14,238 56.3% 13,447 51.5%
Indirect investments 4,619 18.3% 4,667 17.9%
The equity investment portfolio amounted to € 25,291 million (€ 26,129 million at 31 December 2022) and is composed for 18.2%
(23.0% at 31 December 2022) by non-financial sector equity instruments and by 7.2% (7.7% at 31 December 2022) by financial
sector equity instruments.
Alternative investments mainly include private equity exposures, amounted to € 11,831 million (€ 10,912 million at 31 December
2022), as well as other alternative funds amounting to € 2,407 million (€ 2,535 million at 31 December 2022). Indirect investments
included in this representation refer to funds whose investments consist of investments in equity instruments.
288
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Direct equity investments: breakdown by country of risk
(€ million) 31/12/2023 31/12/2022
Book Value Impact (%) Book Value Impact (%)
Direct equity investments 6,434 100.0% 8,014 100.0%
Italy 762 11.8% 810 10.1%
France 1,852 28.8% 2,529 31.6%
Germany 677 10.5% 870 10.9%
Central - Eastern Europe 135 2.1% 145 1.8%
Rest of Europe 1,088 16.9% 1,795 22.4%
Rest of World 1,920 29.8% 1,865 23.3%
The exposures to direct equity investments amounted to € 6,434 million (€ 8,014 million at 31 December 2022), with 51.1% (52.6%
at 31 December 2022) of portfolio represented by Italian, French and German equity investments.
17.3. Real estate investments
With reference to exposure in real estate investments, as presented in the financial statements
7
, is provided below the breakdown
by country of location, reported at fair value. Additionally, for completeness, the table presents also the fair value detail of self-used
real estate is provided.
Direct real estate investments: breakdown by country of location
(€ million) 31/12/2023 31/12/2023
Investment properties Self-used real estates
Fair value Impact (%) Fair value Impact (%)
Direct real estate investments 26,078 3,406
Italy 7,556 29.0% 2,006 58.9%
France 8,119 31.1% 554 16.3%
Germany 3,658 14.0% 148 4.4%
Central - Eastern Europe 1,156 4.4% 314 9.2%
Rest of Europe 5,524 21.2% 189 5.5%
Spain 1,198 4.6% 58 1.7%
Austria 1,831 7.0% 51 1.5%
Switzerland 1,633 6.3% 12 0.3%
Others 861 3.3% 67 2.0%
Rest of World 66 0.3% 196 5.7%
The fair value of direct real estate investments amounts to € 29,484 million, of which € 26,078 million of investments properties and
€3,406 million of self-used real estates.
17.4. Derivative financial instruments
The Group’s balance sheet exposure to derivative instruments is mainly associated with economic hedging transactions of financial
assets or liabilities, in line with strategies aiming at mitigating financial and currency risks. The total exposure amounts to € - 2,472
million (€ -2,728 million at 31 December 2022) for a corresponding notional amount of € 66,159 million (€ 54,019 million at 31
December 2022). The notional exposure, presented in absolute amounts, including positions with both positive and negative balances,
arises for an amount of € 17,512 million (€ 18,369 million at 31 December 2022) from instruments for which a hedge accounting
relationship has been formally designated, in accordance with the international accounting standard IFRS 9. The remaining notional
amount is attributable to derivative instruments for which, notwithstanding their purpose as economic hedging instruments, a formal
hedge accounting relationship has not been activated.
7. Indirect exposures are excluded.
289
Consolidated Financial Statements
Derivative instruments designated for hedge accounting
The exposures in terms of amounts recognized in the financial statements amounts to € -1,967 million (€ - 2,347 million at 31
December 2022).
• Fair value hedge
Fair value hedging relationships mainly relate to hedging strategies implemented in Life portfolio of subsidiaries operating in
Central-Eastern Europe, with particular reference to risks arising from fluctuations in interest rated and foreign exchange rates.
• Cash flow hedge
The cash flow hedging relationships mainly relate to cross currency swaps hedging subordinated liabilities issued by the Group in
British pound, to micro-hedge and reinvestment risk reduction operations in the Life portfolios.
• Hedge of net investment in foreign operations
The Group continued the hedging strategy aimed at neutralizing risks arising from foreign exchange fluctuations of its subsidiaries
whose functional currency is the Swiss franc, Czech crowns and British pound.
Other derivative instruments
The recognized amounts in the financial statements for these exposures at 31 December 2023 amount to € -505 million (€ 292
million at 31 December 2022) for a corresponding notional amount of € 48,647 million (€ 35,623 million at 31 December 2022), which
mainly relates to over-the-counter positions. The exposure is mainly associated with operations relating to interest rates hedges and
foreign exchange rates hedges. Furthermore, the Group undertakes macro hedge strategies aimed at protecting the capital and the
income statement from the risk of a significant reduction in share prices. In general, in order to mitigate the credit risk arising from
over-the-counter transactions, the Group collateralized most of them. Furthermore, a list of selected authorized counterparties is
identified for the opening of new derivative transactions.
Below the detail of exposures to derivative instruments designated as hedge accounting and other derivative instruments. This
representation does not include derivatives included in financial assets covering technical reserves, the investment risk of which is
borne by policyholders, financial liabilities arising from investment contracts, and reserves arising from pension fund management.
Details on exposures in derivative instruments
(€ million) Maturity distribution by nominal amount Derivative assets
fair value
Derivative
liabilities fair
value
Net fair value
Within 1 year 00/01/1900 More than 5
years
Total notional
Total equity / index contracts 5,584 310 95 5,989 32 -119 -87
Total interest rate contracts 4,005 13,897 26,740 44,642 1,611 -2,853 -1,243
Total foreign exchange contracts 4,054 5,835 5,228 15,117 289 -1,431 -1,143
Credit derivatives 400 10 0 410 1 -0 0
Total 14,044 20,053 32,063 66,159 1,932 -4,404 -2,472
17.5. Assets transferred that do not qualify for derecognition
Generali Group in the context of its business activities enters into securities lending transactions (REPO e Reverse REPO). Generally,
collaterals can be in cash or in readily available assets other than cash.
In general, if the Group retains substantially all risks and rewards of the financial assets underlying these transactions, the Group
continues to recognise the underlying assets whereas cash instruments shall be transferred as a consequence of debit and credit
relationships.
For REPO contracts, the Group continues to recognise in its financial statements the underlying financial asset as the risks and
benefits are retained by the Group. The consideration received upon sale is recognised as a liability.
As far as Reverse REPO transactions are concerned, considering that all underlying risks and rewards are retained by the counterparty
for the entire life of the transaction, the related financial asset is not recognised as an asset in the Group’s financial statements. The
consideration paid is accounted for within the loans and receivable category.
Finally, the Group is committed in other transactions in which some financial assets are pledged as collateral but they are still
recognised in the financial statements because all risks and rewards are retained by the Group.
Consequently, some of the assets recorded are not fully available and usable by the Group as they are subject to securitization
agreements, REPOs and other forms of collateralisation. Furthermore, considering the insurance business of the Group and in
particular the life business with profit sharing, it should be noted that in some countries where the Group operates, the national
legislation indicates that the related collateral assets are to be considered fully dedicated to those contracts and thus to the business
290
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
As at 31 December 2023, the Group has retained substantially all risks and rewards arising from the ownership of the transferred
assets and there are no transfers of financial assets which have been completely or partially derecognised on which the Group
continues to control. In particular, the Group continues to recognize, in terms of market value, € 18,561 million of financial assets
linked to various contracts such as, securities lending transactions for € 8,195 million, mainly in France, repurchase agreements for
€ 4,216 million and assets pledged as collateral to cover its reinsurance activities for € 774 million, as well as € 1,514 million have
been pledged in derivatives transactions. Residual part is related to collateral pledged other operations (please refer to the chapter
Contingent liabilities, commitments, guarantees, pledged assets and collaterals in section Additional Information).
With reference to collateral for derivative transactions, it should be noted that over-the-counter derivatives are subject to Master
Netting Agreements. In particular, the Group requires the so-called ISDA Master Agreement (or equivalent), including bilateral clearing
agreements, and the ISDA Credit Support Annex (or equivalent) to be adopted for each derivative transaction in order to mitigate
counterparty risk. Furthermore, the Group requires that such transactions shall be carried out only with counterparties admitted by
internal risk management policies.
These agreements require that offsetting between derivatives is granted only in the event of bankruptcy or failure of the parties and,
to mitigate the counterparty credit risk relating to such transactions, the parties sign a collateralization agreement.
As a result of these agreements, the net exposure in derivatives becomes close to zero as it is neutralized by the collateral given or
received, both as cash or assets other than cash.
Similar considerations apply to securities lending and REPO / Reverse REPO transactions which are covered by framework
agreements with characteristics similar to the ISDAs, named respectively Global Master Securities Lending Agreement (GMSLA)
and Global Master Repurchase Agreement (GMRA), making the counterparty risk substantially intangible. These considerations are
evident in the case of REPO / Reverse REPO transactions where the value of the collateral is, for each transaction, substantially equal
to the asset object of the repurchase agreement.
ISDAs and similar netting agreements signed by the Group do not meet the requirements for the purpose of offsetting between items
in the financial statements. These agreements in fact guarantee the parties the right to offset the flows only in the event of bankruptcy,
insolvency or failure of the Group or the counterparty. Furthermore, there is no intention by the Group and its counterparties to realize
17.6. Sensitivity analysis to market and credit risks
The Generali Group makes its own analysis of sensitivity to market and credit risks following the logic of Solvency 2. For further
information and the relevant numerical evidence please refer to the Risk Report in the Management Report.
Information on climate changes is provided in the relevant chapter of these Notes.
291
Consolidated Financial Statements
Insurance contracts issued balances
(€ million) 31/12/2023 31/12/2022 01/01/2022
Total Contracts with direct
participation features
Contracts without direct
participation features
Total Contracts with
direct participation
features
Contracts without direct
participation features
Total Contracts with
direct participation
features
Contracts without direct
participation features
General Model PAA General Model PAA General Model PAA
Life Segment
Insurance contracts that are assets -315 -139 -173 -3 -233 -32 -197 -3 -358 -20 -338 -
Insurance contracts that are liabilities 376,978 358,871 16,835 1,272 362,262 346,469 14,867 926 432,835 416,557 15,309 969
Net closing balance 376,663 358,731 16,662 1,269 362,029 346,437 14,670 923 432,477 416,538 14,971 969
Present Value Future Cash Flows 344,317 330,808 12,289 1,220 330,153 319,045 10,226 882 398,353 386,803 10,628 922
Risk Adjustment 1,435 941 445 49 1,669 827 802 41 1,868 966 856 46
Contractual Service Margin 30,911 26,982 3,928 30,207 26,565 3,642 32,256 28,769 3,487
Property & Casualty segment
Insurance contracts that are assets - - - -
-10 - - -10 -78 - -75 -4
Insurance contracts that are liabilities 35,347 136 247 34,964 33,453 139 285 33,029 33,548 163 6 33,380
Net closing balance 35,347 136 247 34,964 33,443 139 285 33,019 33,470 163 -69 33,376
Present Value Future Cash Flows 33,308 135 -706 33,879 31,530 139 -580 31,971 31,403 161 -873 32,115
Risk Adjustment 1,144 1 58 1,085 1,095 - 47 1,048 1,294 - 33 1,260
Contractual Service Margin 896 - 896 818 - 818 773 1 772
Total
Insurance contracts that are assets -315 -139 -173 -3
-243 -32 -197 -13 -436 -20 -413 -4
Insurance contracts that are liabilities 412,325 359,007 17,082 36,236 395,715 346,608 15,152 33,955 466,384 416,720 15,315 34,349
Net closing balance 412,010 358,867 16,910 36,233 395,472 346,576 14,955 33,942 465,947 416,700 14,903 34,345
Present Value Future Cash Flows 377,625 330,943 11,582 35,099 361,683 319,184 9,646 32,853 429,756 386,964 9,755 33,037
Risk Adjustment 2,578 942 503 1,134 2,764 827 848 1,089 3,162 966 889 1,307
Contractual Service Margin 31,807 26,982 4,824 31,025 26,565 4,460 33,029 28,770 4,259
INSURANCE AND INVESTMENT CONTRACTS
18. Insurance contracts
The purpose of this section is to provide a reconciliation of amounts recognized in the Balance Sheet and in the Income Statement
with reference to insurance contracts issued and investments contracts with direct participation features.
The following table provides details regarding the carrying amounts recognized in the consolidated Balance Sheet broken down by
segment and measurement model.
The purpose of the following tables is to provide a reconciliation from the opening balance at 1 January 2023 to the closing balance
at 31 December 2023 of the carrying amount of insurance contracts issued. Equally, the comparative period shows the reconciliation
from the opening balance at 1 January 2022 to the closing balance at 31 December 2022.
The first table provides an analysis of movements of carrying amount of insurance contracts issued detailed by Liability for Remaining
Coverage and Liability for Incurred Claims. The second table analyses movements of insurance contracts issued measured under
the Variable Fee Approach and General Measurement Model broken down by measurement components: (i) Present Value of Future
Cash Flows, (ii) Risk Adjustment and (iii) Contractual Service Margin. It shall therefore be noted that the second table does not report
the analysis of movements of carrying amount of insurance contracts issued measured under the Premium Allocation Approach.
292
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Insurance contracts issued balances
(€ million) 31/12/2023 31/12/2022 01/01/2022
Total Contracts with direct
participation features
Contracts without direct
participation features
Total Contracts with
direct participation
features
Contracts without direct
participation features
Total Contracts with
direct participation
features
Contracts without direct
participation features
General Model PAA General Model PAA General Model PAA
Life Segment
Insurance contracts that are assets -315 -139 -173 -3 -233 -32 -197 -3 -358 -20 -338 -
Insurance contracts that are liabilities 376,978 358,871 16,835 1,272 362,262 346,469 14,867 926 432,835 416,557 15,309 969
Net closing balance 376,663 358,731 16,662 1,269 362,029 346,437 14,670 923 432,477 416,538 14,971 969
Present Value Future Cash Flows 344,317 330,808 12,289 1,220 330,153 319,045 10,226 882 398,353 386,803 10,628 922
Risk Adjustment 1,435 941 445 49 1,669 827 802 41 1,868 966 856 46
Contractual Service Margin 30,911 26,982 3,928 30,207 26,565 3,642 32,256 28,769 3,487
Property & Casualty segment
Insurance contracts that are assets - - - -
-10 - - -10 -78 - -75 -4
Insurance contracts that are liabilities 35,347 136 247 34,964 33,453 139 285 33,029 33,548 163 6 33,380
Net closing balance 35,347 136 247 34,964 33,443 139 285 33,019 33,470 163 -69 33,376
Present Value Future Cash Flows 33,308 135 -706 33,879 31,530 139 -580 31,971 31,403 161 -873 32,115
Risk Adjustment 1,144 1 58 1,085 1,095 - 47 1,048 1,294 - 33 1,260
Contractual Service Margin 896 - 896 818 - 818 773 1 772
Total
Insurance contracts that are assets -315 -139 -173 -3
-243 -32 -197 -13 -436 -20 -413 -4
Insurance contracts that are liabilities 412,325 359,007 17,082 36,236 395,715 346,608 15,152 33,955 466,384 416,720 15,315 34,349
Net closing balance 412,010 358,867 16,910 36,233 395,472 346,576 14,955 33,942 465,947 416,700 14,903 34,345
Present Value Future Cash Flows 377,625 330,943 11,582 35,099 361,683 319,184 9,646 32,853 429,756 386,964 9,755 33,037
Risk Adjustment 2,578 942 503 1,134 2,764 827 848 1,089 3,162 966 889 1,307
Contractual Service Margin 31,807 26,982 4,824 31,025 26,565 4,460 33,029 28,770 4,259
With reference to the analysis of movements at 31 December 2023, the decrease of insurance liabilities reported in “Other
changes” is related to disposal of Generali Deutschland Pensionskasse AG, whose liabilities were mainly measured under the
Variable Fee Approach. With reference to the analysis of movements at 31 December 2022, the increase reported in “Other
changes” is related to the acquisition of majority control of Future Generali India Insurance Company Ltd., Future Generali India
Life Insurance Company Ltd. and MPI Generali Insurans Berhad, and acquisition of La Médicale, Generali Insurance Malaysia
Berhad and Generali Life Insurance Malaysia Berhad. “Other changes” item also includes exchange rate impacts related to the
293
Consolidated Financial Statements
Movements in Insurance Contracts Issued – Liability for Remaining Coverage and Liability for Incurred claims
(€ million) Liability for remaining
coverage 31/12/2023
Liability for incurred claims 31/12/2023 Total
31/12/2023
Liability for remaining
coverage 31/12/2022
Liability for incurred claims
31/12/2022
Total
31/12/2022
Contracts under PAA Contracts under PAA
Items Excluding
Loss
Component
Loss
Component
Contracts
not under
PAA
Estimates
of Present
Value of
Future
Cash
flows
Risk
Adjustment for
non-financial
risks
Excluding
Loss
Component
Loss
Component
Contracts
not under
PAA
Estimates
of Present
Value of
Future
Cash
flows
Risk
Adjustment for
non-financial
risks
A. Opening balance
1. Insurance contracts that are liabilities 354,442 754 11,456 27,974 1,089 395,715 424,121 671 10,958 29,326 1,307 466,384
2. Insurance contracts that are assets -315 25 52 -4 -0 -243 -506 0 67 2 0 -436
3. Net opening balance at 1st January 354,127 779 11,508 27,970 1,089 395,472 423,615 672 11,025 29,328 1,307 465,947
B. Insurance revenue -49,496 0 0 0 0 -49,496 -45,137 0 0 0 0 -45,137
C. Insurance service expenses
1. Incurred claims and other directly attributable
expenses
0 -669 13,615 32,186 0 45,131 0 -751 11,568 30,177 377 41,372
2. Adjustment to liability for Incurred Claims 0 0 -1,655 -7,493 -3 -9,151 0 0 -656 -7,317 -629 -8,602
3. Losses and reversal of losses on onerous
contracts
0 720 0 0 0 720 0 867 0 0 0 867
4. Amortisation of insurance acquisition cash
flows
6,581 0 0 0 0 6,581 6,090 0 0 0 0 6,090
5. Total 6,581 51 11,959 24,693 -3 43,281 6,090 116 10,912 22,861 -252 39,726
D. Insurance service result (Total B+C+D+E) -42,915 51 11,959 24,693 -3 -6,215 -39,048 116 10,912 22,861 -252 -5,411
E. Finance expenses/income
1. Related to insurance contracts issued 29,168 26 424 1,295 37 30,950 -69,521 13 -907 -3,322 0 -73,737
1.1 Recognised in the income statement 17,476 24 57 130 37 17,724 -10,624 3 -47 -59 0 -10,726
1.2 Recognised in the other comprehensive
income statement
11,692 2 367 1,165 0 13,226 -58,898 10 -860 -3,263 0 -63,011
2. Effects of movements in exchange rates 2 -1 6 -32 -1 -27 -28 0 -18 14 2 -30
3. Total 29,170 25 430 1,262 35 30,923 -69,550 13 -925 -3,308 2 -73,767
F. Non-Distinct investment component -40,986 0 40,986 0 0 0 -32,063 0 32,063 0 0 0
G. Total amount of changes recognized
in the income statement and in the Other
Comprehensive income statement (D+E+F)
-54,731 75 53,376 25,956 32 24,708 -140,660 129 42,051 19,553 -250 -79,178
H. Other changes -3,210 -60 379 -213 -8 -3,112 4,007 -22 435 -199 32 4,253
I. Cash flows
1. Premiums received 83,173 0 0 0 0 83,173 76,072 0 0 0 0 76,072
2. Payments related to insurance acquisition
cash flows
-9,057 0 0 0 0 -9,057 -8,907 0 0 0 0 -8,907
3. Claims paid and other cash outflows 0 0 -55,556 -23,618 0 -79,174 0 0 -42,003 -20,712 0 -62,715
4. Total 74,116 0 -55,556 -23,618 0 -5,058 67,165 0 -42,003 -20,712 0 4,450
Net balance at 31 December (A.3+G+H+I.4) 370,303 793 9,706 30,095 1,113 412,010 354,127 779 11,508 27,970 1,089 395,472
M. Closing balance
1. Insurance contracts that are liabilities 370,738 756 9,616 30,102 1,113 412,325 354,442 754 11,456 27,974 1,089 395,715
2. Insurance contracts that are assets -436 38 90 -7 -0 -315 -315 25 52 -4 -0 -243
Net closing balance at 31 December 370,303 793 9,706 30,095 1,113 412,010 3 54,127 779 11,508 27,970 1,089
395,472
294
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Movements in Insurance Contracts Issued balances by measurement components
(€ million) Measurement components
Items Estimates of
Present Value
of Future
Cash flows
31/12/2023
Risk Adjustment
for non-
financial risks
31/12/2023
Contractual
service margin
31/12/2023
Total
31/12/2023
Estimates of
Present Value
of Future
Cash flows
31/12/2022
Risk Adjustment
for non-
financial risks
31/12/2022
Contractual
service margin
31/12/2022
Total
31/12/2022
A. Opening balance
1. Insurance contracts that are liabilities 329,669 1,617 30,474 361,760 398,494 1,760 31,781 432,035
2. Insurance contracts that are assets -839 58 552 -230 -1,775 96 1,247 -432
3. Net opening balance at 1st January 328,830 1,675 31,025 361,531 396,719 1,855 33,029 431,603
B. Changes that relate to current services
1. Contractual Service Margin recognized in the income statement 0 0 -3,081 -3,081 0 0 -2,930 -2,930
2. Change in Risk Adjustment for expired non-financial risks 0 -159 0 -159 0 -159 0 -159
3. Changes related to experience adjustments 901 0 0 901 309 0 0 309
4. Total 901 -159 -3,081 -2,340 309 -159 -2,930 -2,780
C. Changes that relate to future services
1. Changes in estimates that adjust the Contractual Service Margin -1,280 57 1,223 0 2,322 -306 -2,016 0
2. Losses and reversal of losses on onerous contracts 150 3 0 153 198 19 0 217
3. Effects of contracts initially recognized in the year -3,013 176 2,853 16 -3,325 242 3,117 34
4. Total -4,14 3 236 4,076 169 -805 -45 1,102 251
D. Changes that relate to past services
1. Adjustment to Liability for Incurred Claims -1,319 -336 0 -1,655 -632 -24 0 -656
3. Total -1,319 -336 0 -1,655 -632 -24 0 -656
E. Insurance services results (Total B+C+D+E) -4,561 -259 995 -3,826 -1,129 -227 -1,829 -3,185
F. Finance expenses/income
1. Related to insurance contracts issued 29,371 32 121 29,524 -70,056 2 -370 -70,424
1.1 Recognised in the income statement 17,309 32 121 17,462 -10,308 2 -370 -10,676
1.2 Recognised in the other comprehensive income statement 12,062 0 0 12,062 -59,748 0 0 -59,748
2. Effects of movements in exchange rates -1 1 4 4 -28 -2 -8 -38
3. Total 29,369 33 125 29,527 -70,085 -0 -378 -70,462
G. Total amount of changes recognized in the income statement
and in the Other Comprehensive Income statement (E+ F)
24,808 -227 1,120 25,701 -71,214 -227 -2,206 -73,647
H. Other changes -2,256 -4 -338 -2,599 1,728 47 203 1,979
I. Cash flows
1. Premiums received 49,761 0 0 49,761 46,669 0 0 46,669
2. Payments related to insurance acquisition cash flows -3,060 0 0 -3,060 -3,070 0 0 -3,070
3. Claims paid and other cash outflows -55,556 0 0 -55,556 -42,003 0 0 -42,003
4. Total -8,856 0 0 -8,856 1,597 0 0 1,597
Net balance at 31 December (A.3+G+H+I.4) 342,526 1,444 31,807 375,777 328,830 1,675 31,025 361,531
M. Closing balance
1. Insurance contracts that are liabilities 343,807 1,358 30,924 376,089 329,669 1,617 30,474 361,760
2. Insurance contracts that are assets -1,281 86 882 -312 -839 58 552 -230
Net closing balance at 31 December 342,526 1,444 31,807 375,777 328,830 1,675 31,025 361,531
295
Consolidated Financial Statements
The purpose of this section is to provide a reconciliation of amounts recognized in the Balance Sheet and in the Income Statement
with reference to reinsurance contracts held.
The following table provides details regarding the carrying amounts recognized in the consolidated Balance Sheet broken down by
segment and measurement model.
Reinsurance contracts held balances
(€ million) 31/12/2023 31/12/2022 01/01/2022
Total General
Model
PAA Total General
Model
PAA Total General
Model
PAA
Life Segment
Reinsurance contracts that are assets 239 203 36 631 344 286 1,004 769 235
Reinsurance contracts which are liabilities -63 -63 - -39 -39 - -86 -86 -
Net closing balance 176 140 36 591 305 286 918 683 235
Present Value Future Cash Flows -90 -123 33 222 -63 285 597 365 232
Risk Adjustment 44 42 2 170 168 2 180 177 3
Contractual Service Margin 222 222 200 200 141 141
Property & Casualty segment
Reinsurance contracts that are assets 4,322 93 4,229 3,281 115 3,166 4,178 - 4,178
Reinsurance contracts that are liabilities -21 - -21 -10 - -10 -54 - -54
Net closing balance 4,301 93 4,208 3,271 115 3,156 4,124 - 4,124
Present Value Future Cash Flows 4,107 69 4,038 3,061 95 2,966 3,895 - 3,895
Risk Adjustment 183 14 169 209 19 190 229 - 229
Contractual Service Margin 11 11 1 1 - -
Total
Reinsurance contracts that are assets 4,561 296 4,264 3,912 460 3,452 5,182 769 4,413
Reinsurance contracts that are liabilities -84 -63 -21 -49 -39 -10 -140 -86 -54
Net closing balance 4,477 234 4,243 3,863 420 3,442 5,042 683 4,359
Present Value Future Cash Flows 4,017 -54 4,072 3,283 32 3,251 4,492 365 4,127
Risk Adjustment 227 55 172 379 187 192 409 177 232
Contractual Service Margin 233 233 201 201 141 141
The purpose of the following tables is to provide a reconciliation from the opening balance at 1 January 2023 to the closing balance
at 31 December 2023 of the carrying amount of reinsurance contracts held. Equally, the comparative period shows the reconciliation
from the opening balance at 1 January 2022 to the closing balance at 31 December 2022.
The first table provides an analysis of movements of carrying amount of reinsurance contracts held detailed by Asset for Remaining
Coverage and Asset for Incurred Claims. The second table analyzes movements of reinsurance contracts held measured under the
General Measurement Model broken down by measurement components: (i) Present Value of Future Cash Flows, (ii) Risk Adjustment
and (iii) Contractual Service Margin. It shall therefore be noted that the second table does not report the analysis of movements of
carrying amount of reinsurance contracts held measured under the Premium Allocation Approach.
“Other changes” item includes impacts related to disposals and acquisitions in the reporting period and the previous one, exchange
rate impacts related to reinsurance contracts held assets denominated in functional currencies different from Euro and consolidation
impacts.
296
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Movements in Reinsurance Contracts Held balances – Asset for Remaining Coverage and Asset for Incurred claims
(€ million) Assets for remaining
coverage 31/12/2023
Asset for Incurred claims 31/12/2023 Total
31/12/2023
Assets for remaining
coverage 31/12/2022
Asset for Incurred claims 31/12/2022 Total
31/12/2022
Contracts under PAA Contracts under PAA
Items / Breakdown of book value Excluding
loss
recovery
component
Loss
recovery
component
Contracts
not under
PAA
Estimates
of Present
Value of
Future
Cash
flows
Risk
Adjustment for
non-financial
risks
Excluding
loss
recovery
component
Loss
recovery
component
Contracts
not under
PAA
Estimates
of Present
Value of
Future
Cash
flows
Risk
Adjustment for
non-financial
risks
A. Opening balance
1. Reinsurance contracts that are assets 1,174 34 315 2,197 192 3,912 671 61 684 3,534 232 5,182
2. Reinsurance contracts that are liabilities -41 0 2 -10 -0 -49 -91 0 3 -53 0 -140
3. Net opening balance at 1st January 1,133 34 317 2,187 192 3,863 580 61 688 3,481 232 5,042
B. Net result from reinsurance contracts
held
1. Reinsurance service expenses -3,730 0 0 0 0 -3,730 -3,382 0 0 0 0 -3,382
2. Claims and other expenses recovered 149 0 1,114 3,257 0 4,519 60 0 981 2,163 42 3,245
3. Adjustments to asset for incurred claims 0 0 -453 -676 -17 -1,146 0 0 -282 -116 -93 -491
4. Loss recovery on onerous contracts 0 6 0 0 0 6 0 -26 0 0 0 -26
4.1 Loss recovery from initial
recognition of onerous contracts
0 37 0 0 0 37 0 53 0 0 0 53
4.2 Releases of the loss recovery
component other than changes in
estimates related to reinsurance
contracts held
0 -21 0 0 0 -21 0 -52 0 0 0 -52
4.3 Changes in estimates related to
reinsurance contracts held resulting
from onerous underlying insurance
contracts
0 -10 0 0 0 -10 0 -26 0 0 0 -26
5. Changes in the risk of non-performance
of the reinsurer
0 0 0 -3 0 -3 0 0 5 10 0 15
6. Total -3,581 6 661 2,578 -17 -353 -3,322 -26 704 2,057 -52 -639
C. Insurance service result (Total B) -3,581 6 661 2,578 -17 -353 -3,322 -26 704 2,057 -52 -639
D. Finance income/expenses
1. Related to reinsurance contracts held -15 -0 66 134 7 191 29 7 -262 -388 -0 -614
1.1 Recognised in the income statement 6 -0 -9 -1 7 3 -4 7 -22 -21 -0 -39
1.2. Recognised in the other
comprehensive income statement
-21 0 75 134 0 188 32 0 -240 -367 0 -574
2. Effects of movements in exchange rates 5 0 -0 -0 0 5 11 -0 0 9 0 20
3. Total -10 -0 66 133 7 196 40 7 -262 -379 -0 -593
E. Non-distinct investment components 0 0 0 0 0 0 -1 0 1 0 0 0
F. Total amount recorded in the income
statement and in the comprehensive
income statement (C+ D+E)
-3,591 6 727 2,712 -10 -157 -3,283 -19 443 1,678 -52 -1,232
G. Other changes -225 9 73 -142 -14 -299 341 -9 126 382 12 852
H. Cash flows
1. Premiums paid net of amounts not related
to claims recovered from reinsurers
3,665 0 0 0 0 3,665 3,494 0 0 0 0 3,494
2. Amounts recovered from reinsurers 0 0 -939 -1,656 0 -2,595 0 0 -939 -3,354 0 -4,293
3. Total 3,665 0 -939 -1,6 56 0 1,070 3,494 0 -939 -3,354 0 -800
I. Net balance at 31 December
(A.3+F+G+H.3)
982 49 177 3,101 168 4,477 1,133 34 317 2,187 192 3,863
L. Closing balance
1. Reinsurance contracts that are assets 1,058
44 174 3,116 168 4,561 1,174 34 315 2,197 192 3,912
2. Reinsurance contracts that are liabilities -76 4 3 -15 -0 -84 -41 0 2 -10 -0 -49
3. Net closing balance at 31 December 982 49 177 3,101 168 4,477 1,133 34 317 2,187 192 3,863
297
Consolidated Financial Statements
Movements in Reinsurance Contracts Held balances by measurement components
(€ million) Measurement components
Items Estimates of
Present Value
of Future
Cash flows
31/12/2023
Risk Adjustment
for non-
financial risks
31/12/2023
Contractual
service margin
31/12/2023
Total
31/12/2023
Estimates of
Present Value
of Future
Cash flows
31/12/2022
Risk Adjustment
for non-
financial risks
31/12/2022
Contractual
service margin
31/12/2022
Total
31/12/2022
A. Opening balance
1. Reinsurance contracts that are assets 159 181 120 460 586 166 17 769
2. Reinsurance contracts that are liabilities -126 6 81 -39 -221 11 124 -86
3. Net opening balance at 1st January 32 187 201 420 365 177 141 683
B. Changes that relate to current services
1. Contractual Service Margin recognized in the income statement 0 0 -45 -45 0 0 9 9
2. Change in Risk Adjustment for expired non-financial risks 0 -26 0 -26 0 -21 0 -21
3. Changes related to experience adjustments 293 0 0 293 217 0 0 217
4. Total 293 -26 -45 222 217 -21 9 205
C. Changes that relate to future services
1. Changes in estimates that adjust the Contractual Service Margin -81 4 77 -0 -57 2 54 -1
2. Effects of contracts initially recognized in the year -41 12 30 1 -24 16 19 11
3. Changes on Contractual Service Margin related to recovery of
losses from initial recognition of underlying onerous contracts
0 0 0 0 0 0 0 0
4. Releases of the loss recovery component other than changes in
estimates related to reinsurance contracts held
0 0 -1 -1 0 0 -11 -11
5. Changes in estimates related to reinsurance contracts held resulting
from onerous underlying insurance contracts
0 0 2 2 0 0 -18 -18
6. Total -122 16 107 1 -81 18 44 -18
D. Changes that relate to past services -326 -127 0 -453 -282 -3 0 -285
1. Adjustments to the activity for claims that have occurred -326 -127 0 -453 -282 -3 0 -285
E. Changes in the risk of non-performance of the reinsurer 0 0 0 0 -5 0 0 -5
F. Insurance service results (Total B+C+D+E) -155 -137 62 -229 -152 -5 54 -103
G. Finance income/expenses
1. Related to reinsurance contracts held 32 9 6 46 -235 -0 9 -226
1.1 Recognised in the income statement -22 9 6 -7 -28 -0 9 -19
1.2. Recognised in the other comprehensive income statement 54 0 0 54 -208 0 0 -208
2. Effects of movements in exchange rates 9 -0 -0 9 20 0 -0 20
3. Total 41 9 6 56 -216 -0 9 -207
H. Total amount recorded in the income statement and in the
comprehensive income statement (F+G)
-114 -128 68 -173 -367 -5 63 -310
I. Other changes 67 -4 -36 27 185 15 -3 197
L. Cash flows
1. Premiums paid net of amounts not related to claims recovered from
reinsurers
899 0 0 899 790 0 0 790
2. Amounts recovered from reinsurers -939 0 0 -939 -939 0 0 -939
3. Total -40 0 0 -40 -150 0 0 -150
M. Net balance at 31 December (A.3+H+I+L.3) -54 55 233 234 32 187 201 420
N. Closing balance
1. Reinsurance contracts that are assets 146 45 104 296 159 181 120 460
2. Reinsurance contracts that are liabilities -201 10 128 -63 -126 6 81 -39
Net closing balance at 31 December -54 55 233 234 32 187 201 420
298
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
20. Income and expenses related to insurance contract
issued and reinsurance contracts held
The purpose of the following tables is to provide further details on insurance income and expenses from insurance contracts
issued.
In accordance with ISVAP Regulation No. 7 of 13th of July 2007, each of the following aggregation bases are separately presented:
• Insurance contracts issued with direct participation features – Life segment (Basis A1);
• Insurance contracts issued without direct participation features – Life segment (Basis A2);
• Insurance contracts issued without direct participation features – P&C segment – Non-Motor (Basis A4).
As allowed by ISVAP Regulation No. 7 of 13th of July 2007, the aggregation base “Insurance contract issued with direct participation
features – Life segment” also includes investment contracts with direct participation features.
Please note that in the aggregation base A4 are also included income and expenses arising from insurance contracts issued
with direct participation features related to P&C segment. Income/expenses included in the base A4 for insurance contracts
issued with direct participation features related to P&C segment is equal to € 6 million at 31 December 2023 (€ -22 million at 31
December 2022).
Insurance revenue and expenses from insurance contract issued
(€ million)
Items/Bases of aggregation
Basis A1
31/12/2023
Basis A2
31/12/2023
Basis A4
31/12/2023
Total
31/12/2023
Basis A1
31/12/2022
Basis A2
31/12/2022
Basis A4
31/12/2022
Total
31/12/2022
A. Insurance revenue from insurance contracts issued measured
under GMM and VFA
A.1 Changes related to the Liability for Remaining coverage 10,247 5,526 84 15,857 8,973 5,117 98 14,18 8
1. Claims incurred and other costs for expected insurance services 7,927 4,706 44 12,677 6,919 4,573 28 11,521
2. . Changes in risk adjustment for expired non-financial risks 44 111 4 159 48 108 2 159
3. Contractual Service Margin recognized in the income statement 2,346 689 47 3,081 2,299 587 44 2,930
4. Other amounts -70 19 -10 -61 -294 -151 24 -421
A.2 Recovery of Insurance acquisition Cash Flows 832 366 27 1,226 722 249 1 971
A.3 Total Insurance revenue from insurance contracts measured
under GMM and VFA
11,079 5,892 111 17,082 9,694 5,366 99 15,159
A.4 Total insurance revenues from insurance contracts issued
valued under the PAA
32,414 29,981
- Life business X X X 2,027 X X X 1,937
- Property&Casualty - motor X X X 10,414 X X X 9,920
- Property&Casualty - non motor X X X 19,973 X X X 18,125
A.5 Total insurance revenues from insurance contracts issued 11,079 5,892 111 49,496 9,694 5,366 99 45,141
B. Insurance service expenses from insurance contracts
measured under GMM and VFA
0 0 0 0 0 0 0 0
1. Incurred claims and other directly attributable expenses -8,122 -5,732 -24 -13,878 -6,764 -5,072 -29 -11,865
2. Adjustment to Liability for Incurred Claims 404 1,253 -1 1,656 -38 695 -1 656
3. Losses and reversal of losses on onerous contracts -68 -99 -2 -169 -96 -133 -21 -251
4. Amortisation of insurance acquisition cash flows -832 -366 -27 -1,226 -722 -249 -3 -974
5. Other amounts 319 37 5 361 331 128 459
B.6 Total Insurance service expenses from insurance contracts
measured under GMM and VFA
-8,300 -4,908 -49 -13,256 -7,289 -4,631 -55 -11,974
B.7 Total Insurance service expenses from insurance contracts
measured under PAA
0 0 0 -30,025 0 0 0 -27,755
- Life business X X X -1,784 X X X -1,839
- Property&Casualty - motor X X X -10,058 X X X -9,642
- Property&Casualty - non motor X X X -18,183 X X X -16,274
C. Insurance Service Result from insurance contracts issued
(A.5+B.6+B.7)
2,779 984 63 6,215 2,406 736 44 5,411
299
Consolidated Financial Statements
The purpose of the following table is to provide further details on insurance expenses and revenue from reinsurance contracts held.
In accordance with ISVAP Regulation No. 7 of 13th of July 2007, each of the following aggregation bases are separately presented:
• Life Segment (Basis 1);
• P&C Segment (Basis 2).
Insurance expenses and revenue from reinsurance contracts held
(€ million)
Items/Bases of aggregation
Basis of
aggregation 1
31/12/2023
Basis of
aggregation 2
31/12/2023
Total
31/12/2023
Basis of
aggregation 1
31/12/2022
Basis of
aggregation 2
31/12/2022
Total
31/12/2022
A. Insurance service expenses from reinsurance
contracts held measured under GMM
A.1 Changes related to the Asset for Remaining
coverage
1. Expected Claims and other expected expenses to be
recovered
-901 -16 -917 -766 -6 -771
2. Changes in the risk adjustment for non-financial risks
expired
-23 -3 -26 -19 -1 -21
3. Contractual service margin recognized in the income
statement
-37 -7 -45 20 -10 9
4. Other amounts 93 0 93 15 -12 3
5. Total -869 -26 -895 -750 -29 -779
A.2 Other directly attributable expenses
A.3 Insurance service expenses from reinsurance
contracts held measured under PAA
-722 -2,113 -2,835 -642 -1,961 -2,603
B. Total expenses from reinsurance contracts held
(A.1+A.2+A.3)
-1,591 -2,140 -3,730 -1,392 -1,990 -3,382
C. Changes in the risk of non-performance of the
reinsurer
-0 -2 -2 -3 7 4
D. Insurance revenue from reinsurance contracts held 1,860 2,821 4,681 1,310 1,920 3,230
E. Adjustment to Asset for Incurred Claims -614 -688 -1,302 -7 -484 -491
F. Other reinsurance recoveries 0 0 0 0 0 0
G. Insurance service result from reinsurance contracts
held (B+C+D+E+F)
-344 -8 -353 -92 -547 -639
The following table contains a breakdown of Insurance service expenses related to insurance contracts issued and other services
recognized in the income statement.
In accordance with ISVAP Regulation No. 7 of 13th of July 2007, in the table each of the following aggregation bases are separately
presented:
• Insurance contracts issued with direct participation features – Life segment (Basis A1);
• Insurance contracts issued without direct participation features – Life segment (Basis A2);
• Insurance contracts issued without direct participation features – P&C segment – Motor (Basis A3);
• Insurance contracts issued without direct participation features – P&C segment – Non Motor (Base A4);
• Other.
Breakdown of insurance service expenses and other costs
(€ million)
Items / Bases of aggregation
Basis A1 –
with DPF
31/12/2023
Basis A2 –
without DPF
31/12/2023
Basis A1 +
Base A2
31/12/2023
Basis A3
31/12/2023
Basis A4
31/12/2023
Basis A3 +
Basis A4
31/12/2023
Other 31/12/2023 Basis A1 –
with DPF
31/12/2022
Basis A2 –
without DPF
31/12/2022
Basis A1 +
Base A2
31/12/2022
Basis A3
31/12/2022
Basis A4
31/12/2022
Basis A3 +
Basis A4
31/12/2022
Other 31/12/2022
Expenses attributable to the acquisition of insurance contracts 1,195 620 1,814 1,684 4,476 6,160 X 1,039 482 1,521 1,566 4,036 5,603 X
Other directly attributable expenses 2,841 938 3,779 947 1,285 2,232 X 2,186 593 2,779 910 1,174 2,085 X
Investment management expenses X X
0 X X 0
40 X X 0 X X 0 55
Other expenses X X
0 X X 0
966 X X 0 X X 0 910
Total X X 5,594 X X 8,392 1,006 X X 0 X X 7,687 965
300
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Breakdown of insurance service expenses and other costs
(€ million)
Items / Bases of aggregation
Basis A1 –
with DPF
31/12/2023
Basis A2 –
without DPF
31/12/2023
Basis A1 +
Base A2
31/12/2023
Basis A3
31/12/2023
Basis A4
31/12/2023
Basis A3 +
Basis A4
31/12/2023
Other 31/12/2023 Basis A1 –
with DPF
31/12/2022
Basis A2 –
without DPF
31/12/2022
Basis A1 +
Base A2
31/12/2022
Basis A3
31/12/2022
Basis A4
31/12/2022
Basis A3 +
Basis A4
31/12/2022
Other 31/12/2022
Expenses attributable to the acquisition of insurance contracts 1,195 620 1,814 1,684 4,476 6,160 X 1,039 482 1,521 1,566 4,036 5,603 X
Other directly attributable expenses 2,841 938 3,779 947 1,285 2,232 X 2,186 593 2,779 910 1,174 2,085 X
Investment management expenses X X
0 X X 0
40 X X 0 X X 0 55
Other expenses X X
0 X X 0
966 X X 0 X X 0 910
Total X X 5,594 X X 8,392 1,006 X X 0 X X 7,687 965
301
Consolidated Financial Statements
The purpose of the following table is to provide further details on finance expenses and income arising from insurance contracts
issued.
In accordance with ISVAP Regulation No. 7 of 13th of July 2007, each of the following aggregation bases are separately presented:
• Insurance contracts issued with direct participation features – Life segment (Basis A1);
• Insurance contracts issued without direct participation features – Life segment (Basis A2);
• Insurance contracts issued without direct participation features – P&C segment (Basis A3).
Net finance expenses and income arising from insurance contracts issued
(€ million)
Items/Bases of aggregation
Basis A1
31/12/2023
Basis A2
31/12/2023
Basis A3
31/12/2023
Total
31/12/2023
Basis A1
31/12/2022
Basis A2
31/12/2022
Basis A3
31/12/2022
Total
31/12/2022
1. Interest accreted 8 -337 -263 -593 41 -210 21 -148
2. Effects of changes in interest rate and other
financial assumptions
-2 -84 4 -83 2 44 0 46
3. Changes in fair value of underlying items for
contracts measured under VFA
-16,976 0 0 -16,976 10,436 0 0 10,436
4. Effects of movements in exchange rates 21 -26 32 27 22 14 -6 30
5. Other -46 8 -34 -72 410 -27 8 392
6. Total net finance expenses/income arising from
insurance contract issued
-16,995 -439 -262 -17,696 10,911 -178 24 10,756
Total finance income/expenses arising from insurance contracts issued recognized in other comprehensive income is equal to
€-13,226 million at 31 December 2023 (€ 63,011 million at 31 December 2022).
The item “5.Other” for the A1 basis includes the adjustment of contractual service margin deriving from risk mitigation option
application (IFRS17 – paragraph B115). The amount is equal to € 3 million at 31 December 2023 (€ 470 million at 31 December
2022).
The purpose of the following table is to provide further details on finance income and expenses arising from reinsurance contracts
held.
In accordance with ISVAP Regulation No. 7 of 13th of July 2007, each of the following aggregation bases are separately presented:
• Life segment (Basis A1);
• P&C segment (Basis A2);
Net finance income and expenses arising from reinsurance contracts held
(€ million)
Items/Bases of aggregation
Basis A1
31/12/2023
Basis A2
31/12/2023
Total
31/12/2023
Basis A1
31/12/2022
Basis A2
31/12/2022
Total
31/12/2022
1. Interest accreted -22 28 6 -27 -7 -35
2. Effects of changes in interest rate and other
financial assumptions
1 -0 1 -1 0 -1
3. Effects of movements in exchange rates 12 -7 5 17 3 20
4. Other -0 -3 -4 -0 -3 -3
5. Total net finance income/expenses arising from
reinsurance contracts held
-9 17 8 -12 -7 -19
Total finance expenses/income arising from reinsurance contracts held recognized in other comprehensive income is equal to € -188
million at 31 December 2023 (€ 574 million at 31 December 2022).
302
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
The following table summarizes economic results broken down by Life and P&C segments.
Insurance operations - Summary of the economic results broken down by life and P&C segments
(€ million) 31/12/2023 31/12/2022
Summary of results/Basis of aggregation
Life business Property&Casualty Total Life business Property&Casualty Total
A. Financial results 177 1,911 2,088 -255 1,497 1,241
A.1 Amounts recorded in the income statement
1. Total net financial result of investments 18,685 1,433 20,118 -10,193 670 -9,523
2. Net finance income/expenses arising from
insurance contracts
-17,443 -245 -17,688 10,720 17 10,737
3. Total 1,242 1,188 2,430 528 686 1,214
A2. Amounts recognised in the comprehensive
income statement
1. Total net financial result of investments 11,173 1,900 13,072 -59,481 -4,077 -63,558
2. Net finance income/expenses arising from
insurance contracts
-12,238 -1,176 -13,415 58,698 4,887 63,585
3. Total -1,065 723 -342 -783 810 27
B. Net insurance and financial result
1. Insurance service result 3,662 2,200 5,862 3,147 1,626 4,772
2. Total net financial result of investments 29,858 3,333 33,191 -69,674 -3,407 -73,081
3. Net finance result from insurance contracts -29,681 -1,422 -31,103 69,419 4,904 74,322
4. Total 3,838 4,112 7,950 2,892 3,122 6,014
21. Detailed information related to insurance contracts
issued and reinsurance contracts held
21.1. Detailed information related to insurance contracts issued –
Movements of carrying amount by bases of aggregations
The purpose of the following tables is to provide a reconciliation from the opening balance at 1 January 2023 to the closing balance
at 31 December 2023 of the carrying amount of insurance contracts issued. Equally, the comparative period shows the reconciliation
from the opening balance at 1 January 2022 to the closing balance at 31 December 2022.
The first set of tables provides an analysis of movements of carrying amount of insurance contracts issued detailed by Liability for
Remaining Coverage and Liability for Incurred Claims. The second set of tables analyzes movements of insurance contracts issued
measured under the Variable Fee Approach and General Measurement Model broken down by measurement components: (i)
Present Value of Future Cash Flows, (ii) Risk Adjustment and (iii) Contractual Service Margin.
In accordance with ISVAP Regulation No. 7 of 13 July 2007, the tables are presented separately for each of the following aggregation
bases:
• Insurance contracts issued with direct participation features – Life segment (Basis 1);
• Insurance contracts issued without direct participation features – Life segment (Basis 2);
• Insurance contracts issued without direct participation features – P&C segment – Motor (Basis 3);
• Insurance contracts issued without direct participation features – P&C segment – Non-Motor (Basis 4).
As allowed by ISVAP Regulation No. 7 of 13 July 2007, the aggregation base “Insurance contract issued with direct participation
features – Life segment” also includes investment contracts with direct participation features.
Please note that, considering the low materiality of amounts, the aggregation base “Insurance contracts issued without direct
participation features – P&C segment – Non-Motor” also includes the carrying amount of insurance contracts issued with direct
participation features related to P&C segment. The total carrying amount of these contracts is equal to € 136 million at 31 December
2023.
303
Consolidated Financial Statements
Basis of aggregation 1 – Insurance contracts issued with direct participation features – Life segment
Movements in Insurance Contracts Issued – GMM or VFA - Liability for Remaining Coverage and Liability for Incurred claims
(€ million) Liability for remaining coverage
31/12/2023
Liability for
incurred
claims
31/12/2023
Total
31/12/2023
Liability for remaining coverage
31/12/2022
Liability for
incurred
claims
31/12/2022
Total
31/12/2022
Items Excluding Loss
Component
Loss
Component
Excluding Loss
Component
Loss
Component
A. Opening balance
1. Insurance contracts that are liabilities 341,274 76 5,119 346,469 412,211 1 4,345 416,557
2. Insurance contracts that are assets -35 0 2 -32 -20 0 1 -20
3. Net opening balance at 1st January 341,240 76 5,121 346,437 412,191 1 4,346 416,538
B. Insurance revenue -11,079 0 0 -11,079 -9,694 0 0 -9,694
C. Insurance service expenses
1. Incurred claims and other directly attributable expenses 0 -56 7,859 7,803 0 -35 6,468 6,433
2. Adjustment to liability for Incurred Claims 0 0 -404 -404 0 0 38 38
3. Losses and reversal of losses on onerous contracts 0 68 0 68 0 96 0 96
4. Amortisation of insurance acquisition cash flows 832 0 0 832 722 0 0 722
5. Total 832 12 7, 4 55 8,300 722 61 6,506 7,2 89
D. Insurance service result (Total B+C+D+E) -10,247 12 7,455 -2,779 -8,973 61 6,506 -2,406
E. Finance expenses/income
1. Related to insurance contracts issued 27,959 20 122 28,101 -69,102 11 -7 -69,098
1.1 Recognised in the income statement 16,961 20 35 17,016 -10,885 -0 -4 -10,889
1.2 Recognised in the other comprehensive income statement 10,998 0 87 11,085 -58,218 12 -3 -58,210
2. Effects of movements in exchange rates -20 0 -1 -21 -21 -0 -1 -22
3. Total 27,9 3 9 20 121 28,080 -69,124 11 -8 -69,120
F. Non-Distinct investment component -39,975 0 39,975 0 -31,245 0 31,245 0
G. Total amount of changes recognized in the income statement and in the
Other Comprehensive income statement (D+E+F)
-22,283 32 47,551 25,300 -109,341 73 37,74 3 -71,526
H. Other changes -2,614 10 174 -2,431 1,266 2 337 1,606
I. Cash flows
1. Premiums received 41,113 0 0 41,113 39,284 0 0 39,284
2. Payments related to insurance acquisition cash flows -2,110 0 0 -2,110 -2,159 0 0 -2,159
3. Claims paid and other cash outflows 0 0 -49,578 -49,578 0 0 -37,304 -37,304
4. Total 39,002 0 -49,578 -10,575 37,124 0 -3 7,304 -180
Net balance at 31 December (A.3+G+H+I.4) 355,345 118 3,269 358,731 341,240 76 5,121 346,437
M. Closing balance
1. Insurance contracts that are liabilities 355,485 118 3,268 358,871 341,274 76 5,119 346,469
2. Insurance contracts that are assets -140 0 1 -139 -35 0 2 -32
Net closing balance at 31 December 355,345 118 3,269 358,731 341,240 76 5,121 346,437
304
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Basis of aggregation 2 – Insurance contracts issued without direct participation features – Life segment
Movements in Insurance Contracts Issued – GMM or VFA - Liability for Remaining Coverage and Liability for Incurred claims
(€ million) Liability for remaining coverage
31/12/2023
Liability for
incurred
claims
31/12/2023
Total
31/12/2023
Liability for remaining coverage
31/12/2022
Liability for
incurred
claims
31/12/2022
Total
31/12/2022
Items Excluding Loss
Component
Loss
Component
Excluding Loss
Component
Loss
Component
A. Opening balance
1. Insurance contracts that are liabilities 8,362 266 6,238 14,867 8,347 349 6,612 15,309
2. Insurance contracts that are assets -272 25 50 -197 -400 0 62 -338
3. Net opening balance at 1st January 8,091 291 6,288 14,670 7,947 349 6,675 14,971
B. Insurance revenue -5,892 0 0 -5,892 -5,363 0 0 -5,363
C. Insurance service expenses
1. Incurred claims and other directly attributable expenses 0 -37 5,731 5,695 0 -131 5,072 4,940
2. Adjustment to liability for Incurred Claims 0 0 -1,253 -1,253 0 0 -695 -695
3. Losses and reversal of losses on onerous contracts 0 99 0 99 0 133 0 133
4. Amortisation of insurance acquisition cash flows 366 0 0 366 249 0 0 249
5. Total 366 63 4,479 4,908 249 2 4,376 4,627
D. Insurance service result (Total B+C+D+E) -5,526 63 4,479 -984 -5,114 2 4,376 -736
E. Finance expenses/income
1. Related to insurance contracts issued 1,130 6 300 1,436 -622 2 -901 -1,521
1.1 Recognised in the income statement 412 4 19 436 250 3 -44 210
1.2 Recognised in the other comprehensive income statement 718 2 281 1,001 -872 -2 -857 -1,731
2. Effects of movements in exchange rates 19 -1 7 25 1 -0 -17 -16
3. Total 1,150 5 306 1,461 -621 2 -918 -1,537
F. Non-Distinct investment component -1,002 0 1,002 0 -806 0 806 0
G. Total amount of changes recognized in the income statement and in the
Other Comprehensive income statement (D+E+F)
-5,377 67 5,787 477 -6,541 4 4,265 -2,273
H. Other changes -342 -22 203 -161 301 -62 7 245
I. Cash flows
1. Premiums received 8,519 0 0 8,519 7,267 0 0 7,267
2. Payments related to insurance acquisition cash flows -918 0 0 -918 -883 0 0 -883
3. Claims paid and other cash outflows 0 0 -5,924 -5,924 0 0 -4,658 -4,658
4. Total 7,601 0 -5,924 1,677 6,384 0 -4,658 1,726
Net balance at 31 December (A.3+G+H+I.4) 9,972 336 6,354 16,662 8,091 291 6,288 14,670
M. Closing balance
1. Insurance contracts that are liabilities 10,276 295 6,264 16,835 8,362 266 6,238 14,867
2. Insurance contracts that are assets -304 41 89 -173 -272 25 50 -197
Net closing balance at 31 December 9,972 336 6,354 16,662 8,091 291 6,288 14,670
305
Consolidated Financial Statements
Basis of aggregation 4 – Insurance contracts issued without direct participation features – P&C segment Non-
Motor
Movements in Insurance Contracts Issued – GMM or VFA - Liability for Remaining Coverage and Liability for Incurred claims
(€ million) Liability for remaining coverage
31/12/2023
Liability for
incurred
claims
31/12/2023
Total
31/12/2023
Liability for remaining coverage
31/12/2022
Liability for
incurred
claims
31/12/2022
Total
31/12/2022
Items Excluding Loss
Component
Loss
Component
Excluding Loss
Component
Loss
Component
A. Opening balance
1. Insurance contracts that are liabilities 295 30 99 424 168 0 0 169
2. Insurance contracts that are assets 0 0 0 0 -79 0 4 -75
3. Net opening balance at 1st January 295 30 99 424 89 0 5 94
B. Insurance revenue -111 0 0 -111 -99 0 0 -99
C. Insurance service expenses
1. Incurred claims and other directly attributable expenses 0 -5 24 19 0 0 29 29
2. Adjustment to liability for Incurred Claims 0 0 1 1 0 0 1 1
3. Losses and reversal of losses on onerous contracts 0 2 0 2 0 21 0 21
4. Amortisation of insurance acquisition cash flows 27 0 0 27 3 0 0 3
5. Total 27 -4 25 49 3 21 30 55
D. Insurance service result (Total B+C+D+E) -84 -4 25 -63 -96 21 30 -44
E. Finance expenses/income
1. Related to insurance contracts issued -16 0 3 -13 194 0 1 195
1.1 Recognised in the income statement 7 0 3 10 2 0 1 3
1.2 Recognised in the other comprehensive income statement -24 0 0 -24 192 0 -0 192
2. Effects of movements in exchange rates 0 0 0 0 0 0 0 0
3. Total -16 0 3 -13 194 0 1 195
F. Non-Distinct investment component -10 0 10 0 -12 0 12 0
G. Total amount of changes recognized in the income statement and in the
Other Comprehensive income statement (D+E+F)
-110 -4 38 -76 86 21 44 151
H. Other changes -8 -0 2 -7 28 9 90 128
I. Cash flows
1. Premiums received 129 0 0 129 118 0 0 118
2. Payments related to insurance acquisition cash flows -32 0 0 -32 -27 0 0 -27
3. Claims paid and other cash outflows 0 0 -55 -55 0 0 -40 -40
4. Total 97 0 -55 42 92 0 -40 51
Net balance at 31 December (A.3+G+H+I.4) 273 26 84 383 295 30 99 424
M. Closing balance
1. Insurance contracts that are liabilities 273 26 84 383 295 30 99 424
2. Insurance contracts that are assets 0 0 0 0 0 0 0 0
Net closing balance at 31 December 273 26 84 383 295 30 99 424
306
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Basis of aggregation 2 – Life segment
Movements in Insurance Contracts Issued balances measured under PAA – Liability for Remaining Coverage and Liability for Incurred claims
(€ million) Liability for remaining coverage
31/12/2023
Liability for incurred claims
31/12/2023
Total
31/12/2023
Liability for remaining coverage
31/12/2022
Liability for incurred claims
31/12/2022
Total
31/12/2022
Items Excluding Loss
Component
Loss
Component
Estimates of
Present Value
of Future Cash
flows
Risk
Adjustment for
non-financial
risks
Excluding Loss
Component
Loss
Component
Estimates of
Present Value
of Future Cash
flows
Risk
Adjustment for
non-financial
risks
A. Opening balance
1. Insurance contracts that are liabilities 58 6 821 41 926 154 1 768 46 969
2. Insurance contracts that are assets -2 0 -1 0 -3 -0 0 0 -0 -0
3. Net opening balance at 1st January 56 6 819 41 923 154 1 768 46 969
B. Insurance revenue -2,027 0 0 0 -2,027 -1,937 0 0 0 -1,937
C. Insurance service expenses
1. Incurred claims and other directly
attributable expenses
0 0 2,261 0 2,261 0 0 1,692 5 1,697
2. Adjustment to liability for Incurred Claims 0 0 -612 -2 -613 0 0 13 -11 1
3. Losses and reversal of losses on onerous
contracts
0 -2 0 0 -2 0 6 0 0 6
4. Amortisation of insurance acquisition
cash flows
139 0 0 0 139 135 0 0 0 135
5. Total 139 -2 1,649 -2 1,784 135 6 1,705 -6 1,839
D. Insurance service result (Total
B+C+D+E)
-1,888 -2 1,649 -2 -243 -1,801 6 1,705 -6 -97
E. Finance expenses/income
1. Related to insurance contracts issued 3 0 46 2 50 2 0 -219 -0 -218
1.1 Recognised in the income statement 3 0 -26 2 -22 2 0 -19 -0 -17
1.2 Recognised in the other
comprehensive income statement
0 0 72 0 72 0 0 -201 0 -201
2. Effects of movements in exchange rates 10 0 -9 0 1 -5 0 6 1 2
3. Total 13 0 36 2 51 -4 0 -213 1 -216
F. Non-Distinct investment component 0 0 0 0 0 0 0 0 0 0
G. Total amount of changes recognized
in the income statement and in the
Other Comprehensive income statement
(D+E+F)
-1,875 -2 1,685 0 -192 -1,805 6 1,492 -6 -313
H. Other changes 314 -0 -44 -0 269 23 -0 -31 0 -8
I. Cash flows
1. Premiums received 2,278 0 0 0 2,278 2,083 0 0 0 2,083
2. Payments related to insurance acquisition
cash flows
-371 0 0 0 -371 -398 0 0 0 -398
3. Claims paid and other cash outflows 0 0 -1,638 0 -1,638 0 0 -1,409 0 -1,409
4. Total 1,907 0 -1,638 0 270 1,684 0 -1,409 0 275
Net balance at 31 December
(A.3+G+H+I.4)
402 4 823 41 1,269 56 6 819 41 923
M. Closing balance
1. Insurance contracts that are liabilities 404 4 824 41 1,272 58 6 821 41 926
2. Insurance contracts that are assets -2 0 -1 0 -3 -2 0 -1 0 -3
Net closing balance at 31 December 402 4 823 41 1,269 56 6 819 41 923
307
Consolidated Financial Statements
Basis of aggregation 2 – P&C segment Motor
Movements in Insurance Contracts Issued balances measured under PAA – Liability for Remaining Coverage and Liability for Incurred claims
(€ million) Liability for remaining coverage
31/12/2023
Liability for incurred claims
31/12/2023
Total
31/12/2023
Liability for remaining coverage
31/12/2022
Liability for incurred claims
31/12/2022
Total
31/12/2022
Items Excluding Loss
Component
Loss
Component
Estimates of
Present Value
of Future Cash
flows
Risk
Adjustment for
non-financial
risks
Excluding Loss
Component
Loss
Component
Estimates of
Present Value
of Future Cash
flows
Risk
Adjustment for
non-financial
risks
A. Opening balance
1. Insurance contracts that are liabilities 2,262 62 10,182 352 12,858 1,704 54 11,377 450 13,585
2. Insurance contracts that are assets -0 0 -0 -0 -0 -0 0 -0 0 -0
3. Net opening balance at 1st January 2,262 62 10,182 352 12,858 1,704 54 11,377 450 13,585
B. Insurance revenue -10,414 0 0 0 -10,414 -9,920 0 0 0 -9,920
C. Insurance service expenses
1. Incurred claims and other directly
attributable expenses
0 -121 10,585 0 10,464 0 -101 11,100 113 11,112
2. Adjustment to liability for Incurred Claims 0 0 -1,952 15 -1,937 0 0 -2,716 -227 -2,942
3. Losses and reversal of losses on onerous
contracts
0 131 0 0 131 0 69 0 0 69
4. Amortisation of insurance acquisition
cash flows
1,401 0 0 0 1,401 1,346 0 0 0 1,346
5. Total 1,401 10 8,633 15 10,058 1,346 -32 8,384 -114 9,584
D. Insurance service result (Total
B+C+D+E)
-9,013 10 8,633 15 -356 -8,574 -32 8,384 -114 -336
E. Finance expenses/income
1. Related to insurance contracts issued 36 0 526 12 574 -12 0 -1,432 2 -1,442
1.1 Recognised in the income statement 36 0 67 12 115 -12 0 -15 2 -25
1.2 Recognised in the other
comprehensive income statement
0 0 459 0 459 0 0 -1,417 0 -1,417
2. Effects of movements in exchange rates 9 0 2 0 11 1 -0 -3 -0 -2
3. Total 45 0 528 12 585 -11 -0 -1,43 5 2 -1,444
F. Non-Distinct investment component 0 0 0 0 0 0 0 0 0 0
G. Total amount of changes recognized
in the income statement and in the
Other Comprehensive income statement
(D+E+F)
-8,968 10 9,160 27 229 -8,585 -32 6,949 -112 -1,780
H. Other changes -263 -31 338 6 50 627 40 -103 14 578
I. Cash flows
1. Premiums received 10,843 0 0 0 10,843 9,881 0 0 0 9,881
2. Payments related to insurance acquisition
cash flows
-1,445 0 0 0 -1,445 -1,364 0 0 0 -1,364
3. Claims paid and other cash outflows 0 0 -8,760 0 -8,760 0 0 -8,041 0 -8,041
4. Total 9,398 0 -8,760 0 638 8,516 0 -8,041 0 475
Net balance at 31 December
(A.3+G+H+I.4)
2,430 42 10,920 384 13,775 2,262 62 10,182 352 12,858
M. Closing balance
1. Insurance contracts that are liabilities 2,430 42 10,927 384 13,783 2,262 62 10,182 352 12,858
2. Insurance contracts that are assets -1 0 -7 -0 -8 -0 0 -0 -0 -0
Net closing balance at 31 December 2,430 42 10,920 384 13,775 2,262 62 10,182 352 12,858
308
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Basis of aggregation 2 – P&C segment Non-Motor
Movements in Insurance Contracts Issued balances measured under PAA – Liability for Remaining Coverage and Liability for Incurred claims
(€ million) Liability for remaining coverage
31/12/2023
Liability for incurred claims
31/12/2023
Total
31/12/2023
Liability for remaining coverage
31/12/2022
Liability for incurred claims
31/12/2022
Total
31/12/2022
Items Excluding Loss
Component
Loss
Component
Estimates of
Present Value
of Future Cash
flows
Risk
Adjustment for
non-financial
risks
Excluding Loss
Component
Loss
Component
Estimates of
Present Value
of Future Cash
flows
Risk
Adjustment for
non-financial
risks
A. Opening balance
1. Insurance contracts that are liabilities 2,189 313 16,972 697 20,171 1,536 267 17,182 811 19,795
2. Insurance contracts that are assets -7 0 -3 -0 -10 -6 0 2 0 -4
3. Net opening balance at 1st January 2,182 313 16,969 697 20,161 1,530 267 17,184 811 19,791
B. Insurance revenue -19,973 0 0 0 -19,973 -18,125 0 0 0 -18,125
C. Insurance service expenses
1. Incurred claims and other directly
attributable expenses
0 -451 19,341 0 18,890 0 -484 17,385 259 17,161
2. Adjustment to liability for Incurred Claims 0 0 -4,929 -16 -4,946 0 0 -4,614 -391 -5,005
3. Losses and reversal of losses on onerous
contracts
0 422 0 0 422 0 541 0 0 541
4. Amortisation of insurance acquisition
cash flows
3,816 0 0 0 3,816 3,635 0 0 0 3,635
5. Total 3,816 -28 14,411 -16 18,183 3,635 57 12,772 -132 16,332
D. Insurance service result (Total
B+C+D+E)
-16,157 -28 14,411 -16 -1,790 -14,489 57 12,772 -132 -1,79 3
E. Finance expenses/income
1. Related to insurance contracts issued 56 0 724 23 803 19 0 -1,670 -1 -1,653
1.1 Recognised in the income statement 56 0 89 23 168 19 0 -25 -1 -8
1.2 Recognised in the other
comprehensive income statement
0 0 635 0 635 0 0 -1,645 0 -1,645
2. Effects of movements in exchange rates -16 -0 -25 -2 -43 -3 0 10 1 8
3. Total 40 -0 699 22 760 16 0 -1,66 0 -1 -1,645
F. Non-Distinct investment component 0 0 0 0 0 0 0 0 0 0
G. Total amount of changes recognized
in the income statement and in the
Other Comprehensive income statement
(D+E+F)
-16,117 -28 15,110 5 -1,030 -14,474 57 11,112 -132 -3,437
H. Other changes -296 -16 -507 -14 -833 1,761 -11 -65 18 1,704
I. Cash flows
1. Premiums received 20,291 0 0 0 20,291 17,440 0 0 0 17,440
2. Payments related to insurance acquisition
cash flows
-4,180 0 0 0 -4,180 -4,075 0 0 0 -4,075
3. Claims paid and other cash outflows 0 0 -13,220 0 -13,220 0 0 -11,262 0 -11,262
4. Total 16,111 0 -13,220 0 2,891 13,365 0 -11,262 0 2,103
Net balance at 31 December
(A.3+G+H+I.4)
1,880 268 18,352 688 21,189 2,182 313 16,969 697 20,161
M. Closing balance
1. Insurance contracts that are liabilities 1,870 272 18,351 688 21,181 2,189 313 16,972 697 20,171
2. Insurance contracts that are assets 11 -4 1 -0 8 -7 0 -3 -0 -10
Net closing balance at 31 December 1,880 268 18,352 688 21,189 2,182 313 16,969 697 20,161
309
Consolidated Financial Statements
Basis of aggregation 1 – Insurance contracts issued with direct participation features – Life segment
Movements in Insurance Contracts Issued balances by measurement components
(€ million) Measurement components
Items Estimates of
Present Value
of Future
Cash flows
31/12/2023
Risk Adjustment
for non-
financial risks
31/12/2023
Contractual
service margin
31/12/2023
Total
31/12/2023
Estimates of
Present Value
of Future
Cash flows
31/12/2022
Risk Adjustment
for non-
financial risks
31/12/2022
Contractual
service margin
31/12/2022
Total
31/12/2022
A. Opening balance
1. Insurance contracts that are liabilities 319,192 810 26,467 346,469 386,868 958 28,731 416,557
2. Insurance contracts that are assets -147 16 98 -32 -65 8 38 -20
3. Net opening balance at 1st January 319,045 827 26,565 346,437 386,803 966 28,769 416,538
B. Changes that relate to current services
1. Contractual Service Margin recognized in the income statement 0 0 -2,346 -2,346 0 0 -2,299 -2,299
2. Change in Risk Adjustment for expired non-financial risks 0 -44 0 -44 0 -48 0 -48
3. Changes related to experience adjustments -54 0 0 -54 -193 0 0 -193
4. Total -54 -44 -2,346 -2,444 -193 -48 -2,299 -2,540
C. Changes that relate to future services
1. Changes in estimates that adjust the Contractual Service Margin -1,116 87 1,029 0 2,309 -283 -2,026 0
2. Losses and reversal of losses on onerous contracts 58 -1 0 58 57 33 0 90
3. Effects of contracts initially recognized in the year -2,193 81 2,122 10 -2,635 116 2,526 7
4. Total -3,251 168 3,152 68 -270 -134 500 96
D. Changes that relate to past services
1. Adjustment to Liability for Incurred Claims -403 -1 0 -404 38 0 0 38
3. Total -403 -1 0 -404 38 0 0 38
E. Insurance services results (Total B+C+D+E) -3,708 123 806 -2,779 -425 -182 -1,799 -2,406
F. Finance expenses/income
1. Related to insurance contracts issued 28,104 0 -3 28,101 -68,629 0 -470 -69,098
1.1 Recognised in the income statement 17,019 0 -3 17,016 -10,419 0 -470 -10,889
1.2 Recognised in the other comprehensive income statement 11,085 0 0 11,085 -58,210 0 0 -58,210
2. Effects of movements in exchange rates -20 -0 -1 -21 -21 -0 -1 -22
3. Total 28,084 -0 -4 28,080 -68,649 -0 -471 -69,120
G. Total amount of changes recognized in the income statement
and in the Other Comprehensive Income statement (E+ F)
24,376 123 802 25,300 -69,074 -182 -2,270 -71,526
H. Other changes -2,037 -9 -385 -2,431 1,496 43 66 1,606
I. Cash flows
1. Premiums received 41,113 0 0 41,113 39,284 0 0 39,284
2. Payments related to insurance acquisition cash flows -2,110 0 0 -2,110 -2,159 0 0 -2,159
3. Claims paid and other cash outflows -49,578 0 0 -49,578 -37,304 0 0 -37,30 4
4. Total -10,575 0 0 -10,575 -180 0 0 -180
Net balance at 31 December (A.3+G+H+I.4) 330,808 941 26,982 358,731 319,045 827 26,565 346,437
M. Closing balance
1. Insurance contracts that are liabilities 331,047 928 26,896 358,871 319,192 810 26,467 346,469
2. Insurance contracts that are assets -239 13 87 -139 -147 16 98 -32
Net closing balance at 31 December 330,808 941 26,982 358,731 319,045 827 26,565 346,437
310
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Basis of aggregation 2 – Insurance contracts issued without direct participation features – Life segment
Movements in Insurance Contracts Issued balances by measurement components
(€ million) Measurement components
Items Estimates of
Present Value
of Future
Cash flows
31/12/2023
Risk Adjustment
for non-
financial risks
31/12/2023
Contractual
service margin
31/12/2023
Total
31/12/2023
Estimates of
Present Value
of Future
Cash flows
31/12/2022
Risk Adjustment
for non-
financial risks
31/12/2022
Contractual
service margin
31/12/2022
Total
31/12/2022
A. Opening balance
1. Insurance contracts that are liabilities 10,918 760 3,189 14,867 11,499 794 3,016 15,309
2. Insurance contracts that are assets -692 42 453 -197 -871 62 470 -338
3. Net opening balance at 1st January 10,226 802 3,642 14,670 10,628 856 3,487 14,971
B. Changes that relate to current services
1. Contractual Service Margin recognized in the income statement 0 0 -689 -689 0 0 -587 -587
2. Change in Risk Adjustment for expired non-financial risks 0 -111 0 -111 0 -108 0 -108
3. Changes related to experience adjustments 969 0 0 969 522 0 0 522
4. Total 969 -111 -689 169 522 -108 -587 -174
C. Changes that relate to future services
1. Changes in estimates that adjust the Contractual Service Margin -107 -37 144 0 8 -14 6 0
2. Losses and reversal of losses on onerous contracts 91 3 0 95 120 -14 0 106
3. Effects of contracts initially recognized in the year -752 83 674 4 -624 122 530 27
4. Total -767 49 818 99 -496 94 536 133
D. Changes that relate to past services
1. Adjustment to Liability for Incurred Claims -921 -332 0 -1,253 -672 -24 0 -695
3. Total -921 -332 0 -1,253 -672 -24 0 -695
E. Insurance services results (Total B+C+D+E) -719 -394 129 -984 -646 -38 -51 -736
F. Finance expenses/income
1. Related to insurance contracts issued 1,300 31 106 1,436 -1,608 1 86 -1,521
1.1 Recognised in the income statement 299 31 106 436 123 1 86 210
1.2 Recognised in the other comprehensive income statement 1,001 0 0 1,001 -1,731 0 0 -1,731
2. Effects of movements in exchange rates 19 1 5 25 -8 -1 -7 -16
3. Total 1,318 31 111 1,461 -1,615 -1 79 -1,537
G. Total amount of changes recognized in the income statement
and in the Other Comprehensive Income statement (E+ F)
600 -363 240 477 -2,261 -39 27 -2,273
H. Other changes -214 6 47 -161 134 -16 127 245
I. Cash flows
1. Premiums received 8,519 0 0 8,519 7,267 0 0 7,267
2. Payments related to insurance acquisition cash flows -918 0 0 -918 -883 0 0 -883
3. Claims paid and other cash outflows -5,924 0 0 -5,924 -4,658 0 0 -4,658
4. Total 1,677 0 0 1,677 1,726 0 0 1,726
Net balance at 31 December (A.3+G+H+I.4) 12,289 445 3,928 16,662 10,226 802 3,642 14,670
M. Closing balance
1. Insurance contracts that are liabilities 13,331 372 3,133 16,835 10,918 760 3,189 14,867
2. Insurance contracts that are assets -1,042 73 796 -173 -692 42 453 -197
Net closing balance at 31 December 12,289 445 3,928 16,662 10,226 802 3,642 14,670
311
Consolidated Financial Statements
Basis of aggregation 4 - Insurance contracts issued without direct participation features – P&C Segment Non-
Motor
Movements in Insurance Contracts Issued balances by measurement components
(€ million) Measurement components
Items Estimates of
Present Value
of Future
Cash flows
31/12/2023
Risk Adjustment
for non-
financial risks
31/12/2023
Contractual
service margin
31/12/2023
Total
31/12/2023
Estimates of
Present Value
of Future
Cash flows
31/12/2022
Risk Adjustment
for non-
financial risks
31/12/2022
Contractual
service margin
31/12/2022
Total
31/12/2022
A. Opening balance
1. Insurance contracts that are liabilities -441 47 818 424 127 7 34 169
2. Insurance contracts that are assets 0 0 0 0 -839 26 739 -75
3. Net opening balance at 1st January -441 47 818 424 -712 33 773 94
B. Changes that relate to current services
1. Contractual Service Margin recognized in the income statement 0 0 -47 -47 0 0 -44 -44
2. Change in Risk Adjustment for expired non-financial risks 0 -4 0 -4 0 -2 0 -2
3. Changes related to experience adjustments -14 0 0 -14 -20 0 0 -20
4. Total -14 -4 -47 -65 -20 -2 -44 -66
C. Changes that relate to future services
1. Changes in estimates that adjust the Contractual Service Margin -57 7 50 0 5 -9 4 0
2. Losses and reversal of losses on onerous contracts 0 0 0 0 21 0 0 21
3. Effects of contracts initially recognized in the year -68 12 57 1 -66 4 61 0
4. Total -125 19 107 2 -39 -5 66 21
D. Changes that relate to past services
1. Adjustment to Liability for Incurred Claims 4 -4 0 1 1 0 0 1
3. Total 4 -4 0 1 1 0 0 1
E. Insurance services results (Total B+C+D+E) -135 11 60 -63 -59 -7 22 -44
F. Finance expenses/income
1. Related to insurance contracts issued -33 2 18 -13 180 1 15 195
1.1 Recognised in the income statement -9 2 18 10 -12 1 15 3
1.2 Recognised in the other comprehensive income statement -24 0 0 -24 192 0 0 192
2. Effects of movements in exchange rates 0 0 0 0 0 0 0 0
3. Total -33 2 18 -13 180 1 15 195
G. Total amount of changes recognized in the income statement
and in the Other Comprehensive Income statement (E+ F)
-167 13 78 -76 121 -7 37 151
H. Other changes -5 -1 -0 -7 99 20 9 128
I. Cash flows
1. Premiums received 129 0 0 129 118 0 0 118
2. Payments related to insurance acquisition cash flows -32 0 0 -32 -27 0 0 -27
3. Claims paid and other cash outflows -55 0 0 -55 -40 0 0 -40
4. Total 42 0 0 42 51 0 0 51
Net balance at 31 December (A.3+G+H+I.4) -571 58 896 383 -441 47 818 424
M. Closing balance
1. Insurance contracts that are liabilities -571 58 896 383 -441 47 818 424
2. Insurance contracts that are assets 0 0 0 0 0 0 0 0
Net closing balance at 31 December -571 58 896 383 -441 47 818 424
312
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
21.2. Detailed information related to insurance contracts issued
– Insurance revenues and movements in CSM split by transition
methode
The following tables detail insurance revenues and contractual service margin by transition method. The information refers to
insurance contracts issued measured under Variable Fee Approach and General Measurement Model. The reported values refer to
31 December 2023 and 31 December 2022.
In accordance with ISVAP Regulation No. 7 of 13 July 2007, the tables are presented separately for each of the following aggregation
bases:
• Insurance contracts issued with direct participation features – Life segment (Basis 1);
• Insurance contracts issued without direct participation features – Life segment (Basis 2);
• Insurance contracts issued without direct participation features – P&C segment – Non-Motor (Basis 4).
As allowed by ISVAP Regulation No. 7 of 13 July 2007, the aggregation base “Insurance contract issued with direct participation
features – Life segment” also includes investment contracts with direct participation features.
Please note that, considering the low materiality of amounts, the Basis 4 “Insurance contracts issued without direct participation
features – P&C segment – Non-Motor” also includes the carrying amount of insurance contracts issued with direct participation
features related to P&C segment. As of 31 December 2023, there is no Contractual Service Margin for this type of contracts.
Basis 1 - Insurance contracts issued with direct participation features – Life segment
Insurance revenue and movements in Contractual Service Margin balances of insurance contracts issued split by transition method
(€ million) 31/12/2023 31/12/2022
New contracts
and contracts
measured at
the transition
date with the
full retroactive
approach
Contracts
measured at the
transition date
with the modified
retroactive
approach
Contracts
measured at the
transition date
using the fair
value approach
Contracts
under
carve-out
options
Total New contracts
and contracts
measured at
the transition
date with the
full retroactive
approach
Contracts
measured at the
transition date
with the modified
retroactive
approach
Contracts
measured at the
transition date
using the fair
value approach
Contracts
under
carve-out
options
Total
Insurance revenue 223 392 27 10,437 11,079 105 470 31 9,089 9,694
Contractual service margin - Opening
balance
264 408 62 25,831 26,565 183 472 60 28,054 28,769
Changes that relate to current services -30 -38 -5 -2,272 -2,346 -18 -55 -5 -2,222 -2,299
- Contractual services margin recognised in
income statement
-30 -38 -5 -2,272 -2,346 -18 -55 -5 -2,222 -2,299
Changes that relate to future service 106 -65 -1 3,111 3,152 90 -0 -11 421 500
- Changes in estimates that adjust the
contractual services margin
11 -65 -1 1,084 1,029 -0 -0 -11 -2,015 -2,026
- Effects of contracts initially recognized
in the year
95 0 0 2,027 2,122 90 0 0 2,436 2,526
Finance expenses/income
1. Related to insurance contracts issued 0 0 0 -3 -3 0 0 0 -470 -470
2. Effects of movements in exchange rates 0 0 0 -1 -1 0 -0 -0 -1 -1
3. Total 0 0 0 -4 -4 0 -0 -0 -471 -471
Total amount of changes recognised in
the income statement and in the Other
Comprehensive Income statement
76 -104 -6 835 802 72 -55 -16 -2,272 -2,270
Other movements -22 -5 -12 -346 -385 9 -8 18 48 66
Contractual service margin - Closing
balance
318 300 44 26,320 26,982 264 408 62 25,831 26,565
313
Consolidated Financial Statements
Basis 2 - Insurance contracts issued without direct participation features – Life segment
Insurance revenue and movements in Contractual Service Margin balances of insurance contracts issued split by transition method
(€ million) 31/12/2023 31/12/2022
New contracts
and contracts
measured at
the transition
date with the
full retroactive
approach
Contracts
measured at the
transition date
with the modified
retroactive
approach
Contracts
measured at the
transition date
using the fair
value approach
Contracts
under
carve-out
options
Total New contracts
and contracts
measured at
the transition
date with the
full retroactive
approach
Contracts
measured at the
transition date
with the modified
retroactive
approach
Contracts
measured at the
transition date
using the fair
value approach
Contracts
under
carve-out
options
Total
Insurance revenue 3,268 2,318 306 0 5,892 2,452 2,554 360 0 5,366
Contractual service margin - Opening
balance
933 2,374 335 0 3,642 490 2,652 345 0 3,487
Changes that relate to current services -292 -336 -61 0 -689 -190 -327 -71 0 -587
- Contractual services margin recognised in
income statement
-292 -336 -61 0 -689 -190 -327 -71 0 -587
Changes that relate to future service 655 158 5 0 818 512 -20 44 0 536
- Changes in estimates that adjust the
contractual services margin
-19 158 5 0 144 -18 -20 44 0 6
- Effects of contracts initially recognized
in the year
674 0 0 0 674 530 0 0 0 530
Finance expenses/income
1. Related to insurance contracts issued 34 63 9 0 106 10 68 8 0 86
2. Effects of movements in exchange rates 4 1 -0 0 5 -4 -2 -1 0 -7
3. Total 38 64 9 0 111 6 66 7 0 79
Total amount of changes recognised in
the income statement and in the Other
Comprehensive Income statement
401 -113 -48 0 240 329 -281 -20 0 27
Other movements 90 -46 3 0 47 114 3 10 0 127
Contractual service margin - Closing
balance
1,423 2,215 290 0 3,928 933 2,374 335 0 3,642
314
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Basis 4 - Insurance contracts issued without direct participation features – P&C segment – Non-Motor
Insurance revenue and movements in Contractual Service Margin balances of insurance contracts issued split by transition method
(€ million) 31/12/2023 31/12/2022
New contracts
and contracts
measured at
the transition
date with the
full retroactive
approach
Contracts
measured at the
transition date
with the modified
retroactive
approach
Contracts
measured at the
transition date
using the fair
value approach
Contracts
under
carve-out
options
Total New contracts
and contracts
measured at
the transition
date with the
full retroactive
approach
Contracts
measured at the
transition date
with the modified
retroactive
approach
Contracts
measured at the
transition date
using the fair
value approach
Contracts
under
carve-out
options
Total
Insurance revenue 37 0 74 0 111 14 0 84 1 99
Contractual service margin - Opening
balance
67 0 751 0 818 0 0 771 1 773
Changes that relate to current services -9 0 -38 0 -47 -5 0 -38 -0 -44
- Contractual services margin recognised in
income statement
-9 0 -38 0 -47 -5 0 -38 -0 -44
Changes that relate to future service 63 0 44 -0 107 63 0 3 -1 66
- Changes in estimates that adjust the
contractual services margin
6 0 44 -0 50 2 0 3 -1 4
- Effects of contracts initially recognized
in the year
57 0 0 0 57 61 0 0 0 61
Finance expenses/income
1. Related to insurance contracts issued 2 0 16 0 18 0 0 15 0 15
2. Effects of movements in exchange rates 0 0 0 0 0 0 0 0 0 0
3. Total 2 0 16 0 18 0 0 15 0 15
Total amount of changes recognised in
the income statement and in the Other
Comprehensive Income statement
56 0 22 -0 78 58 0 -20 -1 37
Other movements -0 0 0 0 -0 9 0 0 0 9
Contractual service margin - Closing
balance
123 0 773 0 896 67 0 751 0 818
315
Consolidated Financial Statements
21.3. Detailed information related to insurance contracts issued –
Contracts initially recognized in the year
The following tables detail contracts initially recognized in the year by measurement components, such as Present Value of Future
Cash Flows, Risk Adjustment and Contractual Service Margin related to insurance contracts issued measured under Variable Fee
Approach and General Measurement Model. The reported values refer to 31 December 2023 and 31 December 2022.
In accordance with ISVAP Regulation No. 7 of 13 July 2007, the tables are presented separately for each of the following aggregation
bases:
• Insurance contracts issued with direct participation features – Life segment (Basis 1);
• Insurance contracts issued without direct participation features – Life segment (Basis 2).
As allowed by ISVAP Regulation No. 7 of 13 July 2007, the aggregation base “Insurance contract issued with direct participation
features – Life segment” also includes investment contracts with direct participation features.
Considering the low materiality of amounts, the Basis 4 “Insurance contracts issued without direct participation features – P&C
segment – Non-Motor” has not been reported. The contractual service margin deriving from insurance contracts issued without
direct participation features relating to the P&C Segment Non Motor is equal to € 57 million as of 31 December 2023.
Please note that, information detailed for the comparative period in the column “Contracts acquired in business combination”
represents the carrying amount of insurance contracts issued by measurement component with regard to the acquisitions of the
reference financial year.
Basis of aggregation 1 - Insurance contracts issued with direct participation features - Life segment
Measurement components of insurance contracts issued initially recognized in financial year
(€ million) Contracts Issued 31/12/2023 Contracts acquired in business combinations
31/12/2023
Contracts Transferred by Third Parties
31/12/2023
Entries/Groups of contracts Onerous
contracts
Profitable
contracts
Total Onerous
contracts
Profitable
contracts
Total Onerous
contracts
Profitable
contracts
Total
A. Estimate of the present value of future cash outflows
1. Insurance acquisition cash flows 4 1,978 1,982 0 0 0 0 0 0
2. Amount of claims and other directly attributable expenses 671 28,726 29,397 0 0 0 0 0 0
3. Total 675 30,704 31,379 0 0 0 0 0 0
B. Estimate of the present value of future cash inflows -665 -32,906 -33,572 0 0 0 0 0 0
C. Estimate of the net present value of future cash flows (A-B) 9 -2,202 -2,193 0 0 0 0 0 0
D. Risk adjustment for non-financial risks 1 80 81 0 0 0 0 0 0
E. Amount derecognised from asset for insurance acquisition cash
flows
0 0 0 0 0 0 0 0 0
F. Contractual service margin 0 2,122 2,122 0 0 0 0 0 0
G. Increase of liability for insurance contracts issued during the year
(C+D+E+F)
10 0 10 0 0 0 0 0 0
316
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
(€ million) Contracts Issued 31/12/2022 Contracts acquired in business combinations
31/12/2022
Contracts Transferred by Third Parties
31/12/2022
Entries/Groups of contracts Onerous
contracts
Profitable
contracts
Total Onerous
contracts
Profitable
contracts
Total Onerous
contracts
Profitable
contracts
Total
A. Estimate of the present value of future cash outflows
1. Insurance acquisition cash flows 17 1,814 1,831 0 5 5 0 0 0
2. Amount of claims and other directly attributable expenses 313 31,488 31,801 0 998 998 0 0 0
3. Total 330 33,302 33,632 0 1,003 1,003 0 0 0
B. Estimate of the present value of future cash inflows -324 -35,944 -36,267 0 -440 -440 0 0 0
C. Estimate of the net present value of future cash flows (A-B) 7 -2,642 -2,635 0 563 563 0 0 0
D. Risk adjustment for non-financial risks 0 116 116 0 22 22 0 0 0
E. Amount derecognised from asset for insurance acquisition cash
flows
0 0 0 0 0 0 0 0 0
F. Contractual service margin 0 2,526 2,526 0 22 22 0 0 0
G. Increase of liability for insurance contracts issued during the year
(C+D+E+F)
7 0 7 0 607 607 0 0 0
Basis of aggregation 2 - Insurance contracts issued with direct participation features - Life segment
Measurement components of insurance contracts issued initially recognized in financial year
(€ million) Contracts Issued 31/12/2023 Contracts acquired in business combinations
31/12/2023
Contracts Transferred by Third Parties
31/12/2023
Entries/Groups of contracts Onerous
contracts
Profitable
contracts
Total Onerous
contracts
Profitable
contracts
Total Onerous
contracts
Profitable
contracts
Total
A. Estimate of the present value of future cash outflows
1. Insurance acquisition cash flows 82 634 717 0 0 0 0 0 0
2. Amount of claims and other directly attributable expenses 763 3,688 4,451 0 0 0 0 0 0
3. Total 845 4,323 5,168 0 0 0 0 0 0
B. Estimate of the present value of future cash inflows -842 -5,078 -5,920 0 0 0 0 0 0
C. Estimate of the net present value of future cash flows (A-B) 3 -755 -752 0 0 0 0 0 0
D. Risk adjustment for non-financial risks 2 81 83 0 0 0 0 0 0
E. Amount derecognised from asset for insurance acquisition cash
flows
0 0 0 0 0 0 0 0 0
F. Contractual service margin 0 674 674 0 0 0 0 0 0
G. Increase of liability for insurance contracts issued during the year
(C+D+E+F)
4 0 4 0 0 0 0 0 0
(€ million) Contracts Issued 31/12/2022 Contracts acquired in business combinations
31/12/2022
Contracts Transferred by Third Parties
31/12/2022
Entries/Groups of contracts Onerous
contracts
Profitable
contracts
Total Onerous
contracts
Profitable
contracts
Total Onerous
contracts
Profitable
contracts
Total
A. Estimate of the present value of future cash outflows
1. Insurance acquisition cash flows 165 443 609 0 9 9 0 0 0
2. Amount of claims and other directly attributable expenses 1,111 4,267 5,378 0 779 779 0 0 0
3. Total 1,276 4,710 5,987 0 788 788 0 0 0
B. Estimate of the present value of future cash inflows -1,26 5 -5,346 -6,611 0 -452 -452 0 0 0
C. Estimate of the net present value of future cash flows (A-B) 11 -636 -624 0 336 336 0 0 0
D. Risk adjustment for non-financial risks 16 106 122 0 18 18 0 0 0
E. Amount derecognised from asset for insurance acquisition cash
flows
0 0 0 0 0 0 0 0 0
F. Contractual service margin 0 530 530 0 12 12 0 0 0
G. Increase of liability for insurance contracts issued during the year
(C+D+E+F)
27 0 27 0 366 366 0 0 0
317
Consolidated Financial Statements
21.4. Detailed information related to insurance contracts issued
and reinsurance contracts held – Expected release of Contractual
Service Margin
Insurance Contracts issued and Reinsurance Contracts held - Time bands for expected release of Contractual Service Margin
(€ million) Within 1 year Between 1
and 2 years
Between 2
and 3 years
Between 3
and 4 years
Between 4
and 5 years
Between 5
and 10 years
Between 10
and 20 years
More than 20
years
Total
Time bands
Insurance contracts
Life Segment 2,269 2,002 1,884 1,740 1,618 6,531 7,721 7,145 30,911
P&C Segment 46 43 42 39 37 165 255 270 896
Reinsurance contracts
Life Segment 15 17 18 14 12 49 56 41 222
The table provides disclosure about when the Group expects to recognise the contractual service margin reported on Balance Sheet
at 31 December 2023 in the income statement of the subsequent years.
It shall be noted that the amounts included in the different time bands exclusively reflect the application of the coverage units as
expected at the reporting date and do not consider:
• in the case of insurance contracts issued with direct participation features, measured with the Variable Fee Approach measurement
model, the unwinding of discount on the carrying amount of the CSM determined at current rates and the systematic economic
variance due to the expected realization of the real-world assumptions;
• in the case of groups of contracts measured with the General Model, the interest accreted determined on the basis of discount
rates identified on the initial recognition date (the so-called locked-in rates);
• the contribution deriving from the contractual service margin of the new business, i.e. the new contracts that will be recognised
in the following years.
Consequently, it is underlined that the table above does not represent the expected release of the contractual service margin that will
be recognised through the Group Income Statement in the following years.
As required by ISVAP Regulation no. 7 of 13 July 2007, the disclosure is provided with reference to the contractual service margin
of the insurance contracts issued, detailed for Life segment and P&C segment.
With reference to the reinsurance contracts held, the disclosure is provided exclusively for life segment contracts considering the
low materiality of amounts related to the reinsurance held contracts of the P&C segment whose CSM is equal to €11 million at 31
December 2023.
318
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
21.5. Detailed information related to insurance contracts issued –
Asset for Insurance Acquisition Cash Flow
The purpose of the following table is to provide a reconciliation from the opening balance at 1 January 2023 to the closing balance at
31 December 2023 of the carrying amount of insurance acquisition cash flow. Equally, the comparative period shows the reconciliation
from the opening balance at 1 January 2022 to the closing balance at 31 December 2022.
In accordance with ISVAP Regulation No. 7 of 13 July 2007, the tables are presented separately for each of the following aggregation
bases:
• Life segment - Basis 1;
• P&C segment - Basis 2.
Insurance Contracts issued - Movements of Asset for Insurance Acquisition Cash Flow
(€ million) Basis of aggregation
1
Basis of aggregation
2
Total
Items/Bases of aggregation 31/12/2023 31/12/2022
A. Opening balance 28 36 64 42
B. Increases
1. Cash flows recognized as an asset in the period 28 3 31 9
2. Reversals of impairment losses 0 0 0 0
3. Other increases 0 0 0 14
4. Total 28 3 31 23
C. Decreases
1. Amounts derecognized on initial recognition of groups of insurance
contracts issued
-26 -22 -49 -2
2. Impairment losses 0 -0 -0 -0
3. Other decreases -0 -11 -11 0
4. Total -26 -34 -60 -2
D. Closing balance 29 5 34 64
The table below provides information about expected derecognition of Asset for Insurance Acquisition Cash Flows due to their
inclusion in the measurement of insurance contracts issued.
In accordance with ISVAP Regulation No. 7 of 13 July 2007, the tables are presented separately for each of the following aggregation
bases:
• Life segment - Basis 1;
• P&C segment - Basis 2.
Insurance Contracts issued - Time bands for expected release of asset for insurance acquisition cash flows
(€ million) Basis of
aggregation 1
31/12/2023
Basis of
aggregation 2
31/12/2023
Total
31/12/2023
Basis of
aggregation 1
31/12/2022
Basis of
aggregation 2
31/12/2022
Total
31/12/2022
Expected times/Bases of aggregation
1. Up to 1 year 29 4 33 28 35 63
2. From over 1 year up to 2 years 0 1 1 0 1 1
3. From over 2 years up to 3 years 0 0 0 0 0 0
4. For over 3 years 0 0 0 0 0 0
319
Consolidated Financial Statements
21.6. Detailed information related to insurance contracts issued
and reinsurance contracts held – Claims development
The tables below provide information on development of cumulative claims paid and estimate of ultimate claims cost (not discounted)
by accident year. Ultimate claims cost includes actual claims paid, liability for incurred claims and settlement expenses.
As allowed by ISVAP Regulation No. 7 of 13 July 2007, the Group has adopted the option to provide claims and ultimate cost
development only for financial years for which an estimate based on IFRS17 is available (2021-2023), without reporting amounts
related to prior financial years.
Data provided refers to insurance contracts issued of P&C segment measured under PAA model. This model represents the
predominantly model applied in this segment. The disclosure is presented gross and net of reinsurance contracts held.
Non-Life Claims development - Gross of Reinsurance Held
(€ million)
Claims/Time ranges
Year 2014 Year 2015 Year 2016 Year 2017 Year 2018 Year 2019 Year 2020 Year 2021 Year 2022 Year 2023 Total
A. Cumulative claims paid and other directly attributable costs
1. At the end of the accident year 0 0 0 0
0 0 0 7,450 7,930 8,863 X
2. A year later 0 0 0 0 0 0 10,222 11,950 12,811 X X
3. Two years later 0 0 0 0 0 12,555 11,200 13,195 X X X
4. Three years later 0 0 0 0 12,811 13,069 11,647 X X X X
5. Four years later 0 0 0 13,011 13,115 13,385 X X X X X
6. Five years after 0 0 12,560 13,216 13,355 X X X X X X
7. Six years later 0 12,440 12,730 13,381 X X X X X X X
8. Seven years later 12,070 12,543 12,851 X X X X X X X X
9. Eight years later 12,165 12,627 X X X X X X X X X
10. Nine years later 12,315 X X X X X X X X X X
Total cumulative claims paid and other directly attributable costs
(Total A)
12,315 12,627 12,851 13,381 13,355 13,385 11,647 13,195 12,811 8,863 124,430
B. Estimate of the ultimate cumulative claim cost (gross of
reinsurance and undiscounted amount)
1. At the end of the accident year 0 0 0 0
0 0 0 16,166 17,287 19,543 X
2. A year later 0 0 0 0 0 0 13,872 16,354 17,186 X X
3. Two years later 0 0 0 0 0 14,988 13,937 16,282 X X X
4. Three years later 0 0 0 0 14,604 14,993 13,830 X X X X
5. Four years later 0 0 0 14,577 14,665 14,936 X X X X X
6. Five years after 0 0 13,798 14,561 14,603 X X X X X X
7. Six years later 0 13,227 13,811 14,494 X X X X X X X
8. Seven years later 12,758 13,226 13,777 X X X X X X X X
9. Eight years later 12,740 13,209 X X X X X X X X X
10. Nine years later 12,719 X X X X X X X X X X
Estimate of the gross undiscounted ultimate cumulative claim cost
(Total B)
12,719 13,209 13,777 14,494 14,603 14,936 13,830 16,282 17,186 19,543 150,579
C. Gross undiscounted liability for incurred claims - accident year
from 2023 to 2014 (Total B – Total A)
404 582 926 1,114 1,247 1,552 2,182 3,087 4,376 10,680 26,149
D. Gross undiscounted claims liability - years prior to 2014 X X X X X X X X X X 5,347
E. Discount effect X X X X X X X X X X -4,512
F. Effect of risk adjustment for non-financial risks X X X X X X X X X X 977
G. Gross Liability for incurred claims from insurance contracts
issued
X X X X X X X X X X 27,961
320
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Non-Life Claims development - Gross of Reinsurance Held
(€ million)
Claims/Time ranges
Year 2014 Year 2015 Year 2016 Year 2017 Year 2018 Year 2019 Year 2020 Year 2021 Year 2022 Year 2023 Total
A. Cumulative claims paid and other directly attributable costs
1. At the end of the accident year 0 0 0 0
0 0 0 7,450 7,930 8,863 X
2. A year later 0 0 0 0 0 0 10,222 11,950 12,811 X X
3. Two years later 0 0 0 0 0 12,555 11,200 13,195 X X X
4. Three years later 0 0 0 0 12,811 13,069 11,647 X X X X
5. Four years later 0 0 0 13,011 13,115 13,385 X X X X X
6. Five years after 0 0 12,560 13,216 13,355 X X X X X X
7. Six years later 0 12,440 12,730 13,381 X X X X X X X
8. Seven years later 12,070 12,543 12,851 X X X X X X X X
9. Eight years later 12,165 12,627 X X X X X X X X X
10. Nine years later 12,315 X X X X X X X X X X
Total cumulative claims paid and other directly attributable costs
(Total A)
12,315 12,627 12,851 13,381 13,355 13,385 11,647 13,195 12,811 8,863 124,430
B. Estimate of the ultimate cumulative claim cost (gross of
reinsurance and undiscounted amount)
1. At the end of the accident year 0 0 0 0
0 0 0 16,166 17,287 19,543 X
2. A year later 0 0 0 0 0 0 13,872 16,354 17,186 X X
3. Two years later 0 0 0 0 0 14,988 13,937 16,282 X X X
4. Three years later 0 0 0 0 14,604 14,993 13,830 X X X X
5. Four years later 0 0 0 14,577 14,665 14,936 X X X X X
6. Five years after 0 0 13,798 14,561 14,603 X X X X X X
7. Six years later 0 13,227 13,811 14,494 X X X X X X X
8. Seven years later 12,758 13,226 13,777 X X X X X X X X
9. Eight years later 12,740 13,209 X X X X X X X X X
10. Nine years later 12,719 X X X X X X X X X X
Estimate of the gross undiscounted ultimate cumulative claim cost
(Total B)
12,719 13,209 13,777 14,494 14,603 14,936 13,830 16,282 17,186 19,543 150,579
C. Gross undiscounted liability for incurred claims - accident year
from 2023 to 2014 (Total B – Total A)
404 582 926 1,114 1,247 1,552 2,182 3,087 4,376 10,680 26,149
D. Gross undiscounted claims liability - years prior to 2014 X X X X X X X X X X 5,347
E. Discount effect X X X X X X X X X X -4,512
F. Effect of risk adjustment for non-financial risks X X X X X X X X X X 977
G. Gross Liability for incurred claims from insurance contracts
issued
X X X X X X X X X X 27,961
The difference between ultimate cost and cumulative claims paid in 2023 represents the undiscounted liability for incurred claims
for accident year between 2014 and 2023 (item C. of below tables). The liability for incurred claims represented in item G. in below
tables is the sum of the latter liability plus the residual liability for incurred claims for accident year not included in the triangle (item
D.), the discounting effect (item E.) and the Risk Adjustment (item G.).
Please note that liability for incurred claims as reported in the Balance Sheet for P&C contracts measured under PAA model is
equal to € 30.344 million and € 26.971 million respectively gross and net of reinsurance held. The difference from the total amount
presented in the following tables in the item G. is mainly related to residual components of liabilities that have not been included in
the actuarial claims development by accident year.
321
Consolidated Financial Statements
Non-Life Claims development - Net of Reinsurance Held
(€ million)
Claims/Time ranges
Year 2014 Year 2015 Year 2016 Year 2017 Year 2018 Year 2019 Year 2020 Year 2021 Year 2022 Year 2023 Total
A. Cumulative claims paid and other directly attributable costs
1. At the end of the accident year 0 0 0 0
0 0 0 7,102 8,166 8,827 X
2. A year later 0 0 0 0 0 0 9,912 11,074 12,895 X X
3. Two years later 0 0 0 0 0 11,949 10,833 12,042 X X X
4. Three years later 0 0 0 0 11,856 12,391 11,194 X X X X
5. Four years later 0 0 0 12,357 12,103 12,646 X X X X X
6. Five years after 0 0 12,194 12,525 12,323 X X X X X X
7. Six years later 0 12,334 12,322 12,676 X X X X X X X
8. Seven years later 11,633 12,427 12,431 X X X X X X X X
9. Eight years later 11,707 12,504 X X X X X X X X X
10. Nine years later 11,852 X X X X X X X X X X
Total cumulative claims paid and other directly attributable costs
(Total A)
11,852 12,504 12,431 12,676 12,323 12,646 11,194 12,042 12,895 8,827 119,391
B. Estimate of the ultimate cumulative claim cost (net of
reinsurance and undiscounted amount)
1. At the end of the accident year 0 0 0 0
0 0 0 15,179 16,805 18,105 X
2. A year later 0 0 0 0 0 0 13,126 15,235 16,760 X X
3. Two years later 0 0 0 0 0 14,076 13,166 15,181 X X X
4. Three years later 0 0 0 0 13,427 14,080 13,052 X X X X
5. Four years later 0 0 0 13,748 13,449 14,028 X X X X X
6. Five years after 0 0 13,260 13,738 13,379 X X X X X X
7. Six years later 0 13,035 13,268 13,671 X X X X X X X
8. Seven years later 12,223 13,037 13,231 X X X X X X X X
9. Eight years later 12,220 13,011 X X X X X X X X X
10. Nine years later 12,190 X X X X X X X X X X
Estimate of the gross undiscounted ultimate cumulative claim cost
(Total B)
12,190 13,011 13,231 13,671 13,379 14,028 13,052 15,181 16,760 18,105 142,608
C. Net Liability for Incurred Claims - accident year from 2023 to
2014
338 506 800 995 1,056 1,382 1,858 3,138 3,865 9,278 23,217
D. Net undiscounted loss liability incurred - years prior to 2014 X X X X X X X X X X 5,063
E. Discount effect X X X X X X X X X X -4,028
F. Effect of risk adjustment for non-financial risks X X X X X X X X X X 864
G. Net Liability for incurred claims X X X X X X X X X X 25,115
322
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Non-Life Claims development - Net of Reinsurance Held
(€ million)
Claims/Time ranges
Year 2014 Year 2015 Year 2016 Year 2017 Year 2018 Year 2019 Year 2020 Year 2021 Year 2022 Year 2023 Total
A. Cumulative claims paid and other directly attributable costs
1. At the end of the accident year 0 0 0 0
0 0 0 7,102 8,166 8,827 X
2. A year later 0 0 0 0 0 0 9,912 11,074 12,895 X X
3. Two years later 0 0 0 0 0 11,949 10,833 12,042 X X X
4. Three years later 0 0 0 0 11,856 12,391 11,194 X X X X
5. Four years later 0 0 0 12,357 12,103 12,646 X X X X X
6. Five years after 0 0 12,194 12,525 12,323 X X X X X X
7. Six years later 0 12,334 12,322 12,676 X X X X X X X
8. Seven years later 11,633 12,427 12,431 X X X X X X X X
9. Eight years later 11,707 12,504 X X X X X X X X X
10. Nine years later 11,852 X X X X X X X X X X
Total cumulative claims paid and other directly attributable costs
(Total A)
11,852 12,504 12,431 12,676 12,323 12,646 11,194 12,042 12,895 8,827 119,391
B. Estimate of the ultimate cumulative claim cost (net of
reinsurance and undiscounted amount)
1. At the end of the accident year 0 0 0 0
0 0 0 15,179 16,805 18,105 X
2. A year later 0 0 0 0 0 0 13,126 15,235 16,760 X X
3. Two years later 0 0 0 0 0 14,076 13,166 15,181 X X X
4. Three years later 0 0 0 0 13,427 14,080 13,052 X X X X
5. Four years later 0 0 0 13,748 13,449 14,028 X X X X X
6. Five years after 0 0 13,260 13,738 13,379 X X X X X X
7. Six years later 0 13,035 13,268 13,671 X X X X X X X
8. Seven years later 12,223 13,037 13,231 X X X X X X X X
9. Eight years later 12,220 13,011 X X X X X X X X X
10. Nine years later 12,190 X X X X X X X X X X
Estimate of the gross undiscounted ultimate cumulative claim cost
(Total B)
12,190 13,011 13,231 13,671 13,379 14,028 13,052 15,181 16,760 18,105 142,608
C. Net Liability for Incurred Claims - accident year from 2023 to
2014
338 506 800 995 1,056 1,382 1,858 3,138 3,865 9,278 23,217
D. Net undiscounted loss liability incurred - years prior to 2014 X X X X X X X X X X 5,063
E. Discount effect X X X X X X X X X X -4,028
F. Effect of risk adjustment for non-financial risks X X X X X X X X X X 864
G. Net Liability for incurred claims X X X X X X X X X X 25,115
323
Consolidated Financial Statements
21.7. Detailed information related to reinsurance contracts held
– Movements in reinsurance contract held balances by bases of
aggregation
The purpose of the following tables is to provide a reconciliation from the opening balance at 1 January 2023 to the closing balance
at 31 December 2023 of the carrying amount of reinsurance contracts held. Equally, the comparative period shows the reconciliation
from the opening balance at 1 January 2022 to the closing balance at 31 December 2022.
The first set of tables provides an analysis of movements of carrying amount of reinsurance contracts held detailed by Asset for
Remaining Coverage and Asset for Incurred Claims. The second set of tables analyzes movements of reinsurance contracts held
measured under the General Measurement Model broken down by measurement components: (i) Present Value of Future Cash
Flows, (ii) Risk Adjustment and (iii) Contractual Service Margin.
In accordance with ISVAP Regulation No. 7 of 13 July 2007, the tables are presented separately for each of the following aggregation
bases:
• Life segment (Basis 1);
• P&C segment (Basis 2).
Please note that, considering the low materiality of amounts, the following tables do not include the carrying amount of reinsurance
contracts held related to P&C segment measured under the General Measurement Model. The total carrying amount of these
324
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Basis 1 – Life segment
Movements in Reinsurance Contracts held balances - GMM - Asset for Remaining Coverage and Asset for Incurred Claims
(€ million) Assets for remaining coverage
31/12/2023
Asset for
Incurred
claims
31/12/2023
Total
31/12/2023
Assets for remaining coverage
31/12/2022
Asset for
Incurred
claims
31/12/2022
Total
31/12/2022
Excluding
loss recovery
component
Loss recovery
component
Excluding
loss recovery
component
Loss recovery
component
A. Opening balance
1. Reinsurance contracts that are assets 107 19 218 344 41 44 684 769
2. Reinsurance contracts that are liabilities -41 0 2 -39 -89 0 3 -86
3. Net opening balance at 1st January 66 20 219 305 -49 44 688 683
B. Net result from reinsurance contracts held
1. Reinsurance service expenses -869 0 0 -869 -750 0 0 -750
2. Claims and other expenses recovered 5 0 1,119 1,123 1 0 970 971
3. Adjustments to asset for incurred claims 0 0 -454 -454 0 0 -282 -282
4. Loss recovery on onerous contracts 0 0 0 0 0 -29 0 -29
4.1 Loss recovery from initial recognition of onerous contracts 0 0 0 0 0 0 0 0
4.2 Releases of the loss recovery component other than changes in
estimates related to reinsurance contracts held
0 -1 0 -1 0 -11 0 -11
4.3 Changes in estimates related to reinsurance contracts held resulting
from onerous underlying insurance contracts
0 1 0 1 0 -18 0 -18
5. Changes in the risk of non-performance of the reinsurer 0 0 0 0 0 0 5 5
6. Total -864 0 665 -199 -749 -29 693 -85
C. Insurance service result (Total B) -864 0 665 -199 -749 -29 693 -85
D. Finance income/expenses
1. Related to reinsurance contracts held -20 -0 63 43 28 7 -263 -227
1.1 Recognised in the income statement 1 -0 -12 -11 -4 7 -23 -20
1.2. Recognised in the other comprehensive income statement -21 0 75 54 32 0 -240 -208
2. Effects of movements in exchange rates 9 0 -0 9 20 -0 0 20
3. Total -11 -0 63 52 48 7 -262 -207
E. Non-distinct investment components 0 0 0 0 -1 0 1 0
F. Total amount recorded in the income statement and in the
comprehensive income statement (C+ D+E)
-875 0 728 -147 -702 -22 432 -292
G. Other changes -22 -12 77 42 39 -3 29 65
H. Cash flows
1. Premiums paid net of amounts not related to claims recovered from reinsurers 859 0 0 859 778 0 0 778
2. Amounts recovered from reinsurers 0 0 -919 -919 0 0 -929 -929
3. Total 859 0 -919 -60 778 0 -929 -151
I. Net balance at 31 December (A.3+F+G+H.3) 28 8 105 140 66 20 219 305
L. Closing balance
1. Reinsurance contracts that are assets 98 3 102 203 107 19 218 344
2. Reinsurance contracts that are liabilities -70 4 3 -63 -41 0 2 -39
3. Net closing balance at 31 December 28 8 105 140 66 20 219 305
325
Consolidated Financial Statements
Basis 1 – Life segment
Movements in Reinsurance Contracts Held balances measured under PAA – Asset for Remaining Coverage and Asset for Incurred claims
(€ million) Assets for remaining coverage
31/12/2023
Asset for Incurred claims
31/12/2023
Total
31/12/2023
Assets for remaining coverage
31/12/2022
Asset for Incurred claims
31/12/2022
Total
31/12/2022
Excluding
loss recovery
component
Loss recovery
component
Estimates of
Present Value
of Future Cash
flows
Risk
Adjustment for
non-financial
risks
Excluding
loss recovery
component
Loss recovery
component
Estimates of
Present Value
of Future Cash
flows
Risk
Adjustment for
non-financial
risks
A. Opening balance
1. Reinsurance contracts that are assets 153 0 132 2 286 115 0 117 3 235
2. Reinsurance contracts that are liabilities 0 0 0 0 0 0 0 0 0 0
3. Net opening balance at 1st January 153 0 132 2 286 115 0 117 3 235
B. Net result from reinsurance contracts
held
1. Reinsurance service expenses -722 0 0 0 -722 -642 0 0 0 -642
2. Claims and other expenses recovered 9 0 729 0 738 5 0 352 0 357
3. Adjustments to asset for incurred claims 0 0 -160 -0 -160 0 0 276 -1 275
4. Loss recovery on onerous contracts 0 -1 0 0 -1 0 0 0 0 0
4.1 Loss recovery from initial recognition
of onerous contracts
0 -1 0 0 -1 0 0 0 0 0
4.2 Releases of the loss recovery
component other than changes in
estimates related to reinsurance
contracts held
0 0 0 0 0 0 0 0 0 0
4.3 Changes in estimates related to
reinsurance contracts held resulting from
onerous underlying insurance contracts
0 0 0 0 0 0 0 0 0 0
5. Changes in the risk of non-performance
of the reinsurer
0 0 -1 0 -1 0 0 3 0 3
6. Total -713 -1 568 -0 -14 6 -637 0 631 -1 -7
C. Insurance service result (Total B) -713 -1 568 -0 -14 6 -637 0 631 -1 -7
D. Finance income/expenses
1. Related to reinsurance disposals 0 0 18 0 18 0 0 -90 0 -90
1.1 Recorded in the income statement 0 0 -10 0 -10 0 0 -9 0 -9
1.2. Recognised in the other
comprehensive income statement
0 0 28 0 28 0 0 -80 0 -80
2. Effects of movements in exchange rates -0 0 3 0 3 -1 0 -2 -0 -3
3. Total -0 0 21 0 21 -1 0 -92 -0 -93
E. Non-distinct investment components 0 0 0 0 0 0 0 0 0 0
F. Total amount recorded in the income
statement and in the comprehensive
income statement (C+ D+E)
-713 -1 589 0 -125 -637 0 539 -1 -99
G. Other changes -53 15 -17 -0 -54 -27 0 39 0 12
H. Cash flows
1. Premiums paid net of amounts not related
to claims recovered from reinsurers
738 0 0 0 738 702 0 0 0 702
2. Amounts recovered from reinsurers 0 0 -810 0 -810 0 0 -562 0 -562
3. Total 738 0 -810 0 -71 702 0 -562 0 139
I. Net balance at 31 December
(A.3+F+G+H.3)
125 15 -106 2 36 153 0 132 2 286
L. Closing balance
1. Reinsurance contracts that are assets 125 15 -106 2 36 153 0 132 2 286
2. Reinsurance contracts that are liabilities 0 0 -0 0 -0 0 0 0 0 0
3. Net closing balance at 31 December 125 15 -106 2 36 153 0 132 2 286
326
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Basis 2 – P&C segment
Movements in Reinsurance Contracts Held balances measured under PAA – Asset for Remaining Coverage and Asset for Incurred claims
(€ million) Assets for remaining coverage
31/12/2023
Asset for Incurred claims
31/12/2023
Total
31/12/2023
Assets for remaining coverage
31/12/2022
Asset for Incurred claims
31/12/2022
Total
31/12/2022
Excluding
loss recovery
component
Loss recovery
component
Estimates of
Present Value
of Future Cash
flows
Risk
Adjustment for
non-financial
risks
Excluding
loss recovery
component
Loss recovery
component
Estimates of
Present Value
of Future Cash
flows
Risk
Adjustment for
non-financial
risks
A. Opening balance
1. Reinsurance contracts that are assets 896 14 2,065 190 3,166 515 17 3,417 229 4,178
2. Reinsurance contracts that are liabilities 0 0 -10 -0 -10 -1 0 -53 0 -54
3. Net opening balance at 1st January 896 14 2,055 190 3,156 514 17 3,364 229 4,124
B. Net result from reinsurance contracts
held
1. Reinsurance service expenses -2,113 0 0 0 -2,113 -1,961 0 0 0 -1,961
2. Claims and other expenses recovered 135 0 2,528 0 2,663 54 0 1,811 42 1,906
3. Adjustments to asset for incurred claims 0 0 -516 -17 -533 0 0 -392 -92 -484
4. Loss recovery on onerous contracts 0 6 0 0 6 0 3 0 0 3
4.1 Loss recovery from initial recognition
of onerous contracts
0 37 0 0 37 0 53 0 0 53
4.2 Releases of the loss recovery
component other than changes in
estimates related to reinsurance
contracts held
0 -20 0 0 -20 0 -41 0 0 -41
4.3 Changes in estimates related to
reinsurance contracts held resulting from
onerous underlying insurance contracts
0 -11 0 0 -11 0 -8 0 0 -8
5. Changes in the risk of non-performance
of the reinsurer
0 0 -2 0 -2 0 0 7 0 7
6. Total -1,978 6 2,010 -17 22 -1,907 3 1,426 -51 -529
C. Insurance service result (Total B) -1,978 6 2,010 -17 22 -1,907 3 1,426 -51 -529
D. Finance income/expenses
1. Related to reinsurance disposals 4 0 116 7 127 1 0 -298 -0 -297
1.1 Recorded in the income statement 4 0 9 7 20 1 0 -11 -0 -11
1.2. Recognised in the other
comprehensive income statement
0 0 107 0 107 0 0 -287 0 -287
2. Effects of movements in exchange rates -4 -0 -3 -0 -7 -8 0 11 0 3
3. Total 0 -0 112 7 120 -7 0 -287 0 -294
E. Non-distinct investment components 0 0 0 0 0 0 0 0 0 0
F. Total amount recorded in the income
statement and in the comprehensive
income statement (C+ D+E)
-1,978 6 2,123 -10 142 -1,914 3 1,139 -51 -823
G. Other changes -134 1 -125 -14 -272 294 -6 344 12 644
H. Cash flows
1. Premiums paid net of amounts not related
to claims recovered from reinsurers
2,028 0 0 0 2,028 2,003 0 0 0 2,003
2. Amounts recovered from reinsurers 0 0 -846 0 -846 0 0 -2,792 0 -2,792
3. Total 2,028 0 -846 0 1,182 2,003 0 -2,792 0 -789
I. Net balance at 31 December
(A.3+F+G+H.3)
812 22 3,207 166 4,208 896 14 2,055 190 3,156
L. Closing balance
1. Reinsurance contracts that are assets 818 22 3,222 166 4,229 896 14 2,065 190 3,166
2. Reinsurance contracts that are liabilities -6 -0 -15 -0 -21 0 0 -10 -0 -10
3. Net closing balance at 31 December 812 22 3,207 166 4,208 896 14 2,055 190 3,156
327
Consolidated Financial Statements
Basis 1 – Life segment
Movements in Reinsurance Contracts Held balances by measurement components
(€ million) Measurement components
Items Estimates of
Present Value
of Future
Cash flows
31/12/2023
Risk Adjustment
for non-
financial risks
31/12/2023
Contractual
service margin
31/12/2023
Total
31/12/2023
Estimates of
Present Value
of Future
Cash flows
31/12/2022
Risk Adjustment
for non-
financial risks
31/12/2022
Contractual
service margin
31/12/2022
Total
31/12/2022
A. Opening balance
1. Reinsurance contracts that are assets 64 162 119 344 586 166 17 769
2. Reinsurance contracts that are liabilities -126 6 81 -39 -221 11 124 -86
3. Net opening balance at 1st January -63 168 200 305 365 177 141 683
B. Changes that relate to current services
1. Contractual Service Margin recognized in the income statement 0 0 -37 -37 0 0 20 20
2. Change in Risk Adjustment for expired non-financial risks 0 -23 0 -23 0 -19 0 -19
3. Changes related to experience adjustments 314 0 0 314 224 0 0 224
4. Total 314 -23 -37 253 224 -19 20 224
C. Changes that relate to future services
1. Changes in estimates that adjust the Contractual Service Margin -69 4 65 -0 -57 2 54 -1
2. Effects of contracts initially recognized in the year -33 10 24 1 -24 16 19 11
3. Changes on Contractual Service Margin related to recovery of
losses from initial recognition of underlying onerous contracts
0 0 0 0 0 0 0 0
4. Releases of the loss recovery component other than changes in
estimates related to reinsurance contracts held
0 0 -1 -1 0 0 -11 -11
5. Changes in estimates related to reinsurance contracts held resulting
from onerous underlying insurance contracts
0 0 1 1 0 0 -18 -18
6. Total -102 14 89 1 -81 18 44 -19
D. Changes that relate to past services -331 -123 0 -454 -282 -3 0 -285
1. Adjustments to the activity for claims that have occurred -331 -123 0 -454 -282 -3 0 -285
E. Changes in the risk of non-performance of the reinsurer 0 0 0 0 -5 0 0 -5
F. Insurance service results (Total B+C+D+E) -118 -132 52 -199 -145 -4 64 -85
G. Finance income/expenses
1. Related to reinsurance contracts held 31 6 6 43 -235 -1 9 -227
1.1 Recognised in the income statement -23 6 6 -11 -28 -1 9 -20
1.2. Recognised in the other comprehensive income statement 54 0 0 54 -208 0 0 -208
2. Effects of movements in exchange rates 9 -0 -0 9 20 0 -0 20
3. Total 40 6 6 52 -216 -1 9 -207
H. Total amount recorded in the income statement and in the
comprehensive income statement (F+G)
-78 -126 57 -147 -360 -5 73 -292
I. Other changes 78 -0 -36 42 84 -5 -14 65
L. Cash flows
1. Premiums paid net of amounts not related to claims recovered from
reinsurers
859 0 0 859 778 0 0 778
2. Amounts recovered from reinsurers -919 0 0 -919 -929 0 0 -929
3. Total -60 0 0 -60 -151 0 0 -151
M. Net balance at 31 December (A.3+H+I+L.3) -123 42 222 140 -63 168 200 305
N. Closing balance
1. Reinsurance contracts that are assets 78 32 94 203 64 162 119 344
2. Reinsurance contracts that are liabilities -201 10 128 -63 -126 6 81 -39
Net closing balance at 31 December -123 42 222 140 -63 168 200 305
328
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
21.8. Detailed information related to reinsurance contracts held –
Movements in CSM by transition method
The following table details the contractual service margin movements by transition method. The information refers to reinsurance
contracts held measured under the General Measurement Model. The reported values refer to 31 December 2023 and 31 December
2022.
In accordance with ISVAP Regulation No. 7 of 13 July 2007, the table presents the following aggregation basis: Life segment (Basis
1) related to reinsurance contracts held.
Please note that, considering the low materiality of amounts, information related to the Basis 2 “Reinsurance contracts held - P&C
segment” has not been included. As of 31 December 2023, the Contractual Service Margin of these contracts is equal to € 11 million.
Basis 1 – Life segment
Movements in Contractual Service Margin of Reinsurance Contracts held split by transition method
(€ million) 31/12/2023 31/12/2022
New contracts
and contracts
measured at
the transition
date with the
full retroactive
approach
Contracts
measured at the
transition date
with the modified
retroactive
approach
Contracts
measured at the
transition date
using the fair
value approach
Contracts
under
carve-out
options
Total New contracts
and contracts
measured at
the transition
date with the
full retroactive
approach
Contracts
measured at the
transition date
with the modified
retroactive
approach
Contracts
measured at the
transition date
using the fair
value approach
Contracts
under
carve-out
options
Total
Contractual service margin - Opening
balance
78 101 21 0 200 15 105 21 0 141
Changes referring to current services -5 -31 -0 0 -37 -2 -8 0 0 -9
Contractual services margin recognised
in income statement to reflect services
received
-5 -31 -0 0 -37 -2 -8 0 0 -9
Changes that relate to future service 6 90 -7 0 89 72 1 0 0 73
- Changes in estimates affecting the
contractual services margin
-18 90 -7 0 65 53 1 0 0 54
- Effects of contracts initially recognized
in the reference year
24 0 0 0 24 19 0 0 0 19
Finance expenses/income
1. Related to reinsurance disposals 6 2 -2 0 6 8 1 -0 0 9
2. Effects of movements in exchange
rates
0 0 -0 0 -0 -0 0 0 0 -0
3. Total 6 2 -2 0 6 8 1 -0 0 9
Total amount of changes recognised in
the income statement and in the Other
Comprehensive Income statement
7 61 -10 0 57 77 -5 0 0 73
Other movements -43 17 -9 0 -36 -14 1 -1 0 -14
Contractual service margin - Closing
balance
41 179 2 0 222 78 101 21 0 200
329
Consolidated Financial Statements
21.9. Detailed information related to reinsurance contracts held –
Contracts initially recognized in the period
With reference to Life segment reinsurance contracts held valued under General Measurement Model, the Contractual Service
Margin for contracts initially recognized in period is equal to € 24 million at 31 December 2023.
With reference to P&C segment reinsurance contracts held valued under General Measurement Model, the Contractual Service
Margin for contracts initially recognized in period is equal to € 6 million at 31 December 2023.
21.10. Other details related to insurance contracts
The following table details the net carrying amount of reinsurance contracts held as presented in the Balance Sheet broken down
by counterparties rating.
With reference to the reinsurance policy followed by the Group, the table below proves that the careful criteria adopted for the
selection of reinsurers over the past allowed Generali to have a significant presence of counterparties in rating classes of high quality.
Reinsurance contracts held: breakdown by rating
(€ million) 31/12/2023 31/12/2022
AAA 0 0
AA 2,155 1,611
A 1,774 1,858
BBB 102 74
Non-investment grade 118 1
No Rating 327 319
Total 4,477 3,863
In some circumstances, local regulations, market practices, or specific type of business allow the Group to benefit from deposits
and/or letters of credit as a guarantee on ceded reserve, thereby mitigating the credit risk associated arising from these balance
sheet items.
The increase in Non-Investment Grade is primarily linked to French reinsurance portfolios, which, however, are covered by guarantees.
No Rating Counterparties, as in the past, include a significant component of captive insurance companies of large industrial enterprises
that do not have a credit rating despite demonstrating good financial strength, companies no longer active in the reinsurance market
and not evaluated by rating agencies but not necessarily less financially sound, companies belonging to major insurance groups that
benefit from a high rating but have abandoned their reinsurance activities, or finally, mutuals and reinsurance pools.
No rating is partially mitigated by the presence of forms of guarantee such as parental guarantee or other collateral.
21.11. Sensitivity analysis to insurance risks
The Generali Group conducts analyses on the sensitivity to insurance and market risks following Solvency 2 principles. For further
information and numerical evidence, please refer to the Risk Report included in the Management Report.
330
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
21.12. Fair value of underlying items of insurance contracts with
direct participation features
Underlying items of contracts with direct participation features are assets that determine amounts payable to policyholders and
may include a specific portfolio of assets or a subset of the assets of a company. On the basis of this definition, underlying items of
contracts with direct participation features have been measured with reference to each company within the Group considered as
independent entity and without taking into consideration any specific adjustment related to consolidation process.
Considered this assumption, at 31 December 2023 the fair value of underlying items for contracts with direct participation features is
equal to approximately € 360 billion and their composition is as follows: 57% fixed-income investments, 6% real estate investments,
6% equity instruments, and 3% other instruments. The remaining 29% is primarily related to portfolios where the risk is borne by the
331
Consolidated Financial Statements
SHAREHOLDERS’ EQUITY AND SHARE
22. Shareholders’ equity
Equity
(€ million) 31/12/2023 31/12/2022
Shareholders' equity attributable to the Group 28,968 26,650
Share capital 1,592 1,587
Capital reserves 6,607 7,107
Revenue reserves and other reserves 19,159 18,464
(Own shares) -273 -583
Reserve for currency transaltion differences -335 -116
Reserve for unrealised gains and losses on equity instruments designated at fair value through other
comprehensive income
-69 -96
Reserve for unrealised gains and losses on financial assets (different from equity instruments) designated
at fair value through other comprehensive income
-17,184 -26,792
Net financial expenses/revenues related to insurance contracts issued and to reinsurance disposals 16,613 25,914
Reserve for other unrealized gains and losses through equity -888 -1,069
Result of the period 3,747 2,235
Shareholders' equity attributable to minority interest 2,316 2,323
Total 31,284 28,973
The share capital amounts to € 1,592 million.
The capital reserve amount to € 6,607 million (€ 7,107 as at 31 December 2022). The change is attributable to the cancellation of
€500 million of own shares following their repurchase.
The Group’s own shares are € -273 million, amounting to 16,936,421 shares (€ -583 million amounting to 39,537,792 shares as at
31 December 2022).
During 2023 the Parent company resolved a dividend distribution amounting to € 1,790 million. The entire amount of the dividend
declared was deducted from Revenue reserves.
The reserve for currency translation differences arising from the translation of subsidiaries’ financial statement denominated in foreign
currencies amounted to € -335 million (€ -116 million as at 31 December 2022) due to the appreciation of the euro against the most
major currencies.
The reserve for unrealised gains and losses on equity instruments designated at fair value through other comprehensive income
amounted to € - 69 million (€ - 96 million as at 31 December 2022).
The reserve for unrealised gains and losses on financial assets (different from equity instruments) designated at fair value through
other comprehensive income amounted to € -17,184 million (€ - 26,792 million as at 31 December 2022). The change is influenced
by the positive trend in the financial markets, mainly in equities and bonds. This effect is offset by Net financial expenses/revenues
related to insurance contracts issued and to reinsurance disposals amounting to € 16,613 million (€ 25,914 million as at 31
December 2022).
The reserve for other unrealised gains and losses through equity amounted to € -888 million (€ -1,069 as at 31 December 2022)
comprised, among other component gains and losses on re-measurement of the net defined benefit liability in accordance with IAS
19, and gains and losses on derivative instruments hedging variation on interest rates and exchange rates accounted for as hedging
derivatives (cash flow hedge).
332
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Share capital - Number of shares of the parent company: annual changes
Items/Types
Ordinary Other
A. Shares existing at the beginning of the financial year 1,586,833,696 0
- fully paid-in 1,586,833,696 0
- not fully paid-in 0 0
A.1 Own shares (-) -39,208,627 0
A.2 Shares outstanding: initial number 1,547,625,069 0
B. Increases 5,549,136 0
B.1 New issues 5,549,136 0
- for consideration 0 0
- Business combination 0 0
- conversion of bonds 0 0
- exercise of warrants 0 0
- other 0 0
- for free 5,549,136 0
- in favour of employees 5,530,127 0
- in favour of directors 19,009 0
- other 0 0
B.2 Sale of own shares 0 0
B.3 Other changes 0 0
C. Decreases 10,500,000 0
C.1 Annulment 0 0
C.2 Purchase of treasury shares 10,500,000 0
C.3 Disposal of companies 0 0
C.4 Other changes 0 0
D. Shares outstanding: final number 1,542,674,205 0
D.1 Own shares (+) 16,607,256 0
D.2 Shares existing at the end of the financial year 1,559,281,461 0
- fully paid-in 1,559,281,461 0
- not fully paid-in 0 0
It should be noted that during 2023, the program for the acquisition of treasury shares was launched to service the Group Long
Term Incentive Plan (LTIP) 2022-2024 and the ongoing Group incentive and remuneration plans, in execution of the resolution of the
Shareholders’ Meeting of 29 April 2022. This purchase program ended on 13 March 2023, for a total of 10.5 million treasury shares
purchased.
Consequently, the cancellation of 33,101,371 treasury shares was carried out without a corresponding reduction in the share capital,
as resolved by the Board of Directors on 13 March 2023, and which affected the entire amount of the shares repurchased in 2023
and part of treasury shares existing at the beginning of the financial year.
333
Consolidated Financial Statements
23. Details of the other components of the
comprehensive income statement
(€ million)
Items
31/12/2023 31/12/2022
1. Profit (Loss) for the period 4,122 2,470
2. Other income components without reclassification to the income statement
2.1 Share of valuation reserves of associates 1 0
2.2 Reserve for revaluation model of intangible asset 0 0
2.3 Reserve for revaluation model of tangible asset 0 0
2.4 Net financial expenses/revenues related to insurance contracts issued 0 0
2.5 Result of discontinued operations 0 -0
2.6 Actuarial gains or losses arising from defined benefit plans -233 908
2.7 Net gains and losses on equities designated at fair value through other comprehensive income 34 -317
a) change in fair value 68 -405
b) transfers to other equity's components -34 88
2.8 Changes in own credit standing on financial liabilities designated at fair value through profit or loss -1 1
a) change in fair value -1 1
b) transfers to other equity's components 0 0
2.9 Other changes: 0 0
a) change in fair value (hedged instrument) 0 0
b) change in fair value (hedging instrument) 0 0
c) other change in fair value 0 0
2.10 Income taxes related to other changes that may be not reclassified to profit or loss 70 -231
3 Other items (net of tax) that may be reclassified to the income statement
3.1 Foreign currency translation differences: -290 193
a) change in value -288 199
b) reclassification to profit or loss -2 -6
c) other changes 0 0
3.2
Net gains and losses on financial assets (other than equities) at fair value through other
comprehensive income
13,311 -63,710
a) change in fair value 12,629 -63,806
b) reclassification to profit or loss 682 96
- adjustments for credit risk -64 279
- gains / losses from realization 746 -183
c) other changes 0 0
3.3 Net gains and losses on cash flows hedging derivatives 376 -1,479
a) change in fair value 318 -1,667
b) reclassification to profit or loss 58 188
c) other changes 0 0
3.4 Net gains and losses on hedge of a net investment in foreign operations -30 -23
a) change in fair value -44 15
b) reclassification to profit or loss 14 -38
c) other changes 0 0
334
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
3.5 Share of valuation reserves of associates: 2 36
a) change in fair value 3 100
b) reclassification to profit or loss -1 -65
- impairment losses -1 -54
- gains / losses from realization 0 -11
c) other changes 0 0
3.6 Net financial expenses/revenues related to insurance contracts issued -13,367 62,234
a) change in fair value -13,064 62,216
b) reclassification to profit or loss -303 17
c) other changes 0 0
3.7 Net financial income/expenses related to reinsurance disposals 177 -569
a) change in fair value 181 -569
b) reclassification to profit or loss -4 0
c) other changes 0 0
3.8 Result of discontinued operations: 143 -138
a) change in fair value 143 -138
b) reclassification to profit or loss 0 0
c) other changes 0 0
3.9 Other changes: 0 0
a) change in value 0 0
b) reclassification to profit or loss 0 0
c) other changes 0 0
3.10 Income taxes related to other changes that may be reclassified to profit or loss -32 872
4 OTHER COMPREHENSIVE INCOME (EXPENSES) (Sum of items 2.1 to 3.10) 163 -2,225
5. CONSOLIDATED COMPREHENSIVE INCOME (Items 1+4) 4,285 245
5.1 of which: attributable to the Group 4,043 175
5.2 of which: attributable to minority interests 241 70
Items from 2.1 to 2.9 and from 3.1 to 3.9 above are expressed gross of taxes as the latter are included into items respectively into 2.10 and 3.10.
24. Earning per share
Basic earnings per share are calculated by dividing the result of the period attributable to the Group by the weighted average number
of ordinary shares outstanding during the period, adjusted for the Parent Company’s average number of shares owned by itself or
by other Group companies during the period.
Diluted earnings per share reflect the dilution effect of ordinary shares potentially attributable to treasury shares purchased but not
335
Consolidated Financial Statements
Earning per share
31/12/2023 31/12/2022
Result of the period (€ million) 3,747 2,235
- from continuing operations 3,663 2,328
- from discontinued operations 84 -93
Weighted average number of ordinary shares outstanding 1,541,766,041 1,570,223,226
Adjustments for potential diluitive effect 9,176,629 16,231,762
Total weighted average number of ordinary shares outstanding 1,550,942,670 1,586,454,988
Earning per share (in €) 2.43 1.42
- from continuing operations 2.38 1.48
- from discontinued operations 0.05 -0.06
Diluited earnings per share (in €) 2.42 1.41
- from continuing operations 2.36 1.47
- from discontinued operations 0.05 -0.06
Please refer to Management Report for information regarding the dividend per share.
25. Reconciliation statement of the result of the period
and shareholders’ equity of the Group and the Parent
Company
In accordance with the Consob Communication No. 6064293 of 28 July 2006, the table below summarizes the reconciliation of the
result of the period and shareholders’ equity of the Group and the Parent Company.
Reconciliation report
(€ million) 31/12/2023 31/12/2022
Shareholders' equity
before the result of
the period
Result of the period Shareholders' equity
before the result of
the period
Result of the period
Parent Company amounts in conformity with the Italian accounting
principles
16,648 1,446 15,767 2,821
Adjustments to Parent Company for IAS/IFRS application 1,742 460 1,211 178
Parent Company amounts in conformity with IAS/IFRS principles 18,389 1,907 16,978 2,998
Result of the period of entities included in the consolidation area 0 7,782 0 8,889
Dividends 6,109 -6,109 7,954 -7,954
Elimination of participations, equity valuation impacts and other
consolidation adjustments
2,962 167 1,643 -1,698
Reserve for currency translation differences -335 0 -116 0
Reserve for unrealised gains and losses on financial assets (different
from equity instruments) designated at fair value through other
comprehensive income
-17,428 0 -26,640 0
Net financial expenses/revenues related to insurance contracts issued
and to reinsurance disposals
16,166 0 25,444 0
Reserve for other unrealized gains and losses through equity -641 0 -849 0
Shareholders equity attributable to the group 25,221 3,747 24,415 2,235
336
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
OTHER BALANCE SHEET ITEMS
26. Tangible assets
Tangible asset: composition
(€ million)
Activities/Values
Tangible asset self-used Inventories
At cost At fair value
31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022
1. Land and buildings (investment properties) 2,548 2,569 245 255 522 620
a) land 348 351 14 14 0 0
b) buildings 1,894 1,889 231 242 0 0
c) furniture 0 0 0 0 0 0
e) facilities 305 328 0 0 0 0
e) Other assets 1 1 0 0 522 620
2. Real rights subject to leasing 368 518 0 0 0 0
a) land 0 52 0 0 0 0
b) buildings 304 393 0 0 0 0
c) furniture 0 0 0 0 0 0
e) facilities 39 45 0 0 0 0
e) Other assets 25 28 0 0 0 0
Total 2,915 3,087 245 255 522 620
Inventories, which amounted to € 522 million (€ 620 million at 31 December 2022), mainly include property inventories allocated to
337
Consolidated Financial Statements
Tangible asset self-used: variations
(€ million) Land Buildings Furniture Facilities Other items of
property, plant
and equipment
Total
A. Opening balances 486 3,272 0 1,903 680 6,341
A.1 Accumulated depreciation and impairment -69 -748 0 -1,530 -31 -2,379
A.2 Net opening balance 417 2,524 0 373 649 3,963
A.2.a Adjustment opening balances 0 0 0 0 0 0
B. Increases 1 165 0 97 16 279
B.1 Acquisitions 0 140 0 76 16 233
B.2 Capitalized expenses 0 12 0 3 0 15
B.3 Reversals of impairment losses 0 0 0 0 0 0
B.4 Positive changes in the recalculated value
recognized a
0 0 0 0 0 0
a) comprehensive income statement 0 0 0 0 0 0
b) income statement 0 0 0 0 0 0
B.5 Positive exchange differences 0 0 0 0 0 0
B.6 Transfers from investment property 0 13 X X X 13
B.7 Other changes 0 0 0 18 0 18
C. Decreases -55 -260 0 -126 -117 -559
C.1 Sales -0 -24 0 -18 -13 -55
C.2 Depreciations -0 -107 0 -101 0 -208
C.3 Impairment losses recognised in: -0 -1 0 0 -14 -15
a) comprehensive income statement 0 0 0 0 0 0
b) income statement -0 -1 0 0 -14 -15
C.4 Negative changes in the restated value 0 -11 0 0 0 -11
a) comprehensive income statement 0 0 0 0 0 0
b) income statement 0 -11 0 0 0 -11
C.5 Negative exchange differences -0 -34 0 -7 0 -41
C.6 Transfers to: -4 -44 0 -0 0 -48
a) investments property -4 -44 X X X -48
b) non-current assets and disposal groups held
for sale
0 0 0 -0 0 -0
C.7 Other changes -51 -39 0 0 -90 -179
D. Net final carrying amount 362 2,429 0 343 548 3,683
D.1 Accumulated depreciation and impairment -83 -739 0 -1,555 -31 -2,409
D.2 Gross book value 445 3,169 0 1,898 579 6,092
E. Measured at cost 362 2,385 0 343 548 3,638
338
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
27. Other financial assets
Other financial assets
(€ million) 31/12/2023 31/12/2022
Receivables arising out of insurance operations out of IFRS17 scope 1,385 1,323
Receivables arising from operation with collateral 1,277 2,126
Commercial receivables 1,524 1,335
Other receivables 2,148 1,700
Other financial assets 6,334 6,484
28. Other assets
Other assets
(€ million) 31/12/2023 31/12/2022
Non-current asset or disposal groups classified as held for sale 728 14,314
Tax receivables 3,947 3,807
Deferred tax assets 1,828 3,003
Other assets 4,109 2,864
Total 10,613 23,988
Item Non-current asset or disposal groups classified as held for sale comprehends assets classified as held for sale mainly of TUA
Assicurazioni S.p.A.. The decrease compared to 31 December 2022 is due to the completion of the sale of Italian bancassurance
joint ventures (former Gruppo Cattolica) and the related write off of related assets.
29. Other provisions
Other provisions
(€ million) 31/12/2023 31/12/2022
Provisions for taxation other than income taxes 49 22
Provisions for corporate restructuring 67 54
Other provisions for potential liabilities 2,203 2,331
Total 2,318 2,406
Provisions for commitments and other provisions included provisions for corporate restructuring, litigation or similar events as well as
other commitments for which, at balance sheet date, an outflow of resources to setting the related obligation is considered probable
and estimated in a reliable way.
The amounts recognized in the financial statements represents the best estimate of their value. In particular, in the assessment all the
peculiarities of the specific provisions are taken into account, including the effective period of incurrence of the contingent liabilities
and consequently the expected cash flows on the different estimates and assumptions.
339
Consolidated Financial Statements
The table below summarized the main changes occurred during the period:
Other provisions - main changes occurred during the period
(€ million) 31/12/2023 31/12/2022
Carrying amount as at 31 December previous year 2,406 2,322
Foreign currency translation effects -19 -0
Changes in consolidation scope -1 133
Changes -68 -48
Carrying amount as at the end of the period 2,318 2,406
In the normal course of business, the Group may enter into arrangements that do not lead to the recognition of those commitments
as assets and liabilities in the consolidated financial statements under IFRS (contingent assets and liabilities). For further information
regarding contingent liabilities please refer to the paragraph Contingent liabilities, commitments, guarantees, pledged assets and
collaterals in section Additional information.
30. Payables
Payables
(€ million) 31/12/2023 31/12/2022
Payables arising out of insurance operations out of IFRS17 scope 1,511 1,570
Other payables 7,235 6,204
Payables to employees 1,156 1,162
Provision for defined benefit plans 70 73
Payables to suppliers 2,017 1,899
Social security 264 249
Other payables 3,727 2,821
Total 8,746 7,774
31. Other liabilities
Other liabilities
(€ million) 31/12/2023 31/12/2022
Liabilities directly associated to non-current assets and disposal groups classified as held for sale 509 13,676
Deferred tax liabilities 1,640 2,430
Tax payables 1,917 1,533
Other liabilities 5,702 5,038
Total 9,768 22,677
Other liabilities include liabilities related to defined employee benefit plans amounting to € 3,563 million (€ 2,826 million as of
31December 2022). In particular, this item also includes the amounts relating to the solidarity funds of Italian companies.
Item Liabilities directly associated to non-current assets and disposal groups classified as held for sale comprehends liabilities
classified as held for sale mainly of TUA Assicurazioni S.p.A.. The decrease compared to 31 December 2022 is due to the completion
of the sale of Italian bancassurance joint ventures (former Gruppo Cattolica) and the related write off of related liabilities.
For more details, please refer to paragraph Non-current asset or disposal groups classified as held for sale.
340
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
OTHER NOTES TO THE INCOME
STATEMENT
32. Other income statement items
Other income statement items
(€ million) 31/12/2023 31/12/2022
Other income/expenses 1,432 1,582
Net income from tangible assets -32 71
Net income from service and assistance activities and recovery of charges 320 409
Net commission 1,068 1,060
Other 76 42
Management expenses -1,006 -965
Investment management expenses -40 -55
Other administrative expenses -966 -910
Net provisions for risks and charges -351 -34
Net impairment and depreciation of tangible assets -137 -145
Net impairment and amortisation of intangible assets -205 -319
Other operating expenses/income -2,194 -1,698
Net gains on foreign currencies -101 122
Holding costs -769 -709
Other -1,325 -1,112
Total -2,460 -1,579
33. Net commissions
Fee and commissions income from financial service activities
(€ million) 31/12/2023 31/12/2022
Fee and commission income from banking activity 345 340
Fee and commission income from asset management activity 1,269 1,266
Fee and commission income related to investment contracts 30 36
Fee and commission income related to pension funds management 247 180
Other fees and commission income 4 37
Total 1,895 1,860
Fee and commissions expenses from financial service activities
(€ million) 31/12/2023 31/12/2022
Fee and commission expenses from banking activity 563 536
Fee and commission expenses from asset management activity 241 247
Fee and commission expenses related to investment contracts 3 3
Fee and commission expenses related to pension funds management 19 14
Total 827 800
341
Consolidated Financial Statements
34. Income taxes
This item shows the income taxes due by the Italian and the foreign consolidated companies by applying the income tax rates and
rules in force in each country.
The components of the income tax expense for 2023 and 2022 are the following:
Income taxes
(€ million) 31/12/2023 31/12/2022
Income taxes 1,147 853
Deferred taxes 389 524
Total taxes of period 1,536 1,378
Income taxes on discontinued operations 26 -39
Total income taxes 1,562 1,339
In Italy, with respect to the 2023 fiscal year, income taxes are calculated by using the ordinary corporate income tax rate of 24%
(IRES). Furthermore, income taxes of Italian companies include the regional tax on productive activities (IRAP).
In Germany, income is subject to the corporate income tax - which is calculated on a rate of 15% plus a solidarity surcharge of
5.5% on 15%. In addition, income earned by German companies is subject to a local tax (Gewerbesteuer), the rate of which varies
depending on the municipality in which the company is situated. In 2023 the weighted average tax rate stood at approximately
16.6%.
In France, income taxes are calculated by using an overall corporate income tax rate of 25.825%. In particular, this overall rate
includes the basic rate expected in the tax on corporate income, equal to 25%, increased by an additional (contribution sociale) of
3.3% on 25%.
All other foreign subsidiaries apply their national tax rates, including: Austria (24%), Bulgaria (10%), China (25%), Czech Republic
(19%), the Netherlands (25.8%), Poland (19%), Spain (25%), Switzerland (18%) and United States (21%).
The following table shows a reconciliation from the theoretical income tax expense, by using the Italian corporate income tax rate of
24%, to the effective tax rate.
Reconciliation from theoretical income tax expenses to the effective tax rate
(€ million) 31/12/2023 31/12/2022
Expected income tax rate 24.0% 24.0%
Earning before taxes 5,574 3,940
Expected income tax expense 1,338 946
Effect of foreign tax rate differential 74 43
Effect of permanent differencies -107 107
IRAP, trade tax and other local income taxes 143 202
Substitute taxes 21 27
Foreign withholding taxes not recoverable 51 43
Income taxes for prior years -15 -9
Other 31 19
Tax expenses 1,536 1,378
Effective tax rate 27.6% 35.0%
The tax Rate decreased from 35.0% to 27.6% due to different effects among which the absence of some non-deductible charges
booked in 2022 and to the non-taxable step up of some participations and the disposal of Generali Deutschland PensionKasse in
2023.
The tax benefit deriving from the tax losses that can be carried forward is recognized in the financial statements only to the extent
that it is probable that a future taxable income will be available against which the aforementioned tax losses can be used by the
respective due date.
342
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Fiscal losses carried forward are scheduled according to their expiry periods as follows:
Fiscal losses
(€ million) 31/12/2023 31/12/2022
2023 0 0
2024 0 0
2025 0 0
2026 0 0
2027 127 138
2028 52 45
2029 209 208
2030 143 0
2031 and over 0 7
Ulimited 1,331 1,964
Fiscal losses carried forward 1,862 2,364
With regards to fiscal losses, it is worth noting that Italian Law by Decree 98/2011 introduced that fiscal losses can be carried forward
with no time limits (as opposed to the previous five-year limitation). Losses from a given year may, however, only be used to offset up
to 80% of the taxable income of any following fiscal year.
Deferred income taxes are calculated on the temporary differences between the carrying amounts of assets and liabilities reported
in the financial statements and their tax base, by using the tax rates applicable at the expected time of realisation according to each
country’s current legislation.
The ultimate realisation of deferred tax assets is dependent on the generation of future taxable income during the periods in which
those temporary differences become deductible.
Furthermore, in making this assessment, management considers the scheduled reversal of deferred tax liabilities and tax planning
strategies.
Assessments show that deferred tax assets will be recovered in the future through either (i) expected taxable income of each
consolidated company or (ii) expected taxable income of other companies included in the same tax group (e.g. Consolidato fiscale
in Italy, Ertragsteuerlicher Organkreis in Germany and Régime d’intégration fiscale in France).
The following tables show the details of the deferred tax assets and liabilities recorded in the financial statements, based on the
nature of the temporary differences that generated them.
Net deferred tax assets
(€ million) 31/12/2023 31/12/2022
Intangible assets 356 591
Property, Plant and Equipment 93 99
Land and buildings (investment properties) 137 119
Financial assets measured at fair value through other comprehensive income 13,973 17,657
Other investments 1,957 2,540
Other assets 3,251 3,074
Fiscal losses carried forward 219 477
Allocation to other provisions and payables 1,212 1,236
Insurance provisions 9,178 10,073
Financial liabilities and other liabilities 1,701 1,748
Other 1,533 1,492
Total deferred tax assets 33,609 39,105
Netting -31,780 -36,102
Total net deferred tax assets 1,828 3,003
343
Consolidated Financial Statements
Net deferred tax liabilities
(€ million) 31/12/2023 31/12/2022
Intangible assets 51 415
Property, Plant and Equipment 168 146
Land and buildings (investment properties) 818 1,029
Financial assets measured at fair value through other comprehensive income 6,869 5,817
Other investments 2,671 4,131
Other assets 2,464 2,571
Allocation to other provisions and payables 124 128
Insurance provisions 18,966 23,076
Financial liabilities and other liabilities 1,151 1,077
Other 137 142
Total deferred tax liabilities 33,420 38,532
Netting -31,780 -36,102
Total net deferred tax liabilities 1,640 2,430
344
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
FAIR VALUE MEASUREMENT
The International Financial Reporting Standard IFRS 13 - Fair Value Measurement provides the requirements for fair value measurement
and the related supplementary disclosures on these valuations, including the classification of financial assets and liabilities within the
three levels of fair value hierarchy as stipulated by the Standard itself.
With reference to the investments and financial liabilities, Generali Group assesses financial assets and liabilities at fair value in the
financial statements or provides evidence of fair value for asset and liabilities not measured at fair value in the notes. Fair value is
defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date (exit price). In particular, an orderly transaction takes place in the principal or in the most
advantageous market at the measurement date, considering current market conditions. A fair value measurement assumes that
the transaction to sell an asset or transfer a liability takes place either: (a) in the principal market for the asset or liability; or (b) in
the absence of a principal market, in the most advantageous market for the asset or liability. Fair value corresponds to the price
obtainable in the market, where such information is available in an active market (e.g., a market with adequate trading levels for
identical instruments). This active market is defined as a market, even if not regulated, where the items traded are homogeneous,
willing buyers and sellers can normally be found at any time, and prices are available to the public. In cases where there is no active
market, a valuation technique maximizing the use of observable input, if possible, should be used. For purpose of measurement and
disclosure, fair value is determined based on its unit of account depending on whether the asset or liability is a standalone asset or
liabilities, a group of assets, a group of liabilities or a group of assets and liabilities, determined in accordance with the respective
International Accounting Standards (IFRS) of reference.
The table below presents the carrying amount and fair value of financial assets and liabilities recorded in the balance sheet at 31
December 2023.
Carrying amount and fair value
(€ million) 31/12/2023
Carrying amount Fair value
Financial assets at fair value through other comprehensive income 223,359 223,359
Financial assets measured at fair value through profit or loss 194,912 194,912
a) Financial assets held for trading 1,097 1,097
b) Financial assets designated at fair value 108,701 108,701
c) Other financial assets mandatory measured at fair value 85,114 85,114
Investment properties 23,831 26,078
Self-used land and buildings 2,792 3,653
Investments in subsidiaries, associated companies and joint ventures 2,712 2,613
Financial assets at amortised cost 21,232 21,053
Cash and cash equivalents 7,070 7,070
Total investments 475,908 478,737
Financial liabilities at fair value through profit or loss 8,740 8,740
Financial liabilities at amortised cost 35,346 35,118
Total Financial liabilities 44,086 43,858
345
Consolidated Financial Statements
The table below presents the carrying amount and fair value of financial assets and liabilities recorded in the balance sheet at 31
December 2022.
Carrying amount and fair value
(€ million) 31/12/2022
Carrying amount Fair value
Financial assets at fair value through other comprehensive income 221,322 221,322
Financial assets measured at fair value through profit or loss 174,991 174,991
a) Financial assets held for trading 1,346 1,346
b) Financial assets designated at fair value 95,942 95,942
c) Other financial assets mandatory measured at fair value 77,703 77,703
Investment properties 25,627 28,321
Self-used land and buildings 2,941 3,781
Investments in subsidiaries, associated companies and joint ventures 2,492 2,410
Financial assets at amortised cost 23,297 22,758
Cash and cash equivalents 6,887 6,887
Total investments 457,557 460,471
Financial liabilities at fair value through profit or loss 9,417 9,417
Financial liabilities at amortised cost 36,225 36,229
Total Financial liabilities 45,642 45,646
35. Fair value hierarchy
In the consolidated financial statements, assets and liabilities measured at fair value on a recurring basis are assessed and classified
in accordance with the fair value hierarchy established by IFRS 13. This hierarchy classifies fair value into three levels based on the
observability of the inputs and techniques used in the valuation.
Below are the characteristics of the inputs used in the valuation for classification within the three level of the fair value hierarchy:
• Level 1: inputs are listed prices (unadjusted) in active markets for identical assets or liabilities that the company can access at the
measurement date;
• Level 2: inputs are listed prices for similar or observables assets and liabilities in non-active markets or input to the valuation other
than prices, such as interest rates, yield curves, implied volatility and other market-supported inputs;
• Level 3: inputs are unobservable inputs for the asset or liability. These inputs are based on the company’s own assumptions about
the assumptions that market participates would use in pricing the asset or liability.
The classification within fair value hierarchy is determined based on the lowest level input, among the significant ones, used for
valuation. This assessment of input significance considers various specific factors of the asset or liability itself. If a present value
technique is used for fair value valuation, it may be classified within the second and third levels of the hierarchy, depending on the
observability of the inputs and the fair value hierarchy level in which such inputs have been classified. If an observable input requires
adjustment based on unobservable inputs and such adjustments are material to the valuation itself, the resulting measurement would
be classified in the level corresponding to the lowest-level input used. Adequate controls have been implemented to monitor all
measurement, including those provided by third parties. In case such checks demonstrate that the valuation cannot be considered
market-corroborated, the instrument must be classified within the third level of the hierarchy.
The table below presents the classification of assets and liabilities measured at fair value within the levels of the fair value hierarchy
as defined by IFRS 13.
346
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Assets and liabilities measured at fair value on a recurring basis: breakdown by fair value hierarchy levels
(€ million) Level 1 Level 2 Level 3 Total
Assets/Liabilities at fair value 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022
Financial assets at fair value through other
comprehensive income
189,090 190,308 28,009 25,117 6,260 5,896 223,359 221,322
Financial assets measured at fair value through profit
or loss
139,110 123,464 18,516 18,740 37,286 32,787 194,912 174,991
a) financial assets held for trading 75 81 936 1,155 85 110 1,097 1,346
b) financial assets designated at fair value 97,332 85,695 6,697 6,707 4,673 3,541 108,701 95,942
c) financial assets mandatorily measured at fair
value
41,703 37,688 10,884 10,878 32,528 29,136 85,114 77,703
Investments in subsidiaries, associated companies
and joint venture
0 0 0 0 823 961 823 961
Investment property 0 0 0 0 20,767 22,112 20,767 22,112
Property, Plant and Equipment 0 0 0 0 245 255 245 255
Intangible assets 0 0 0 0 0 0 0 0
Total Assets 328,200 313,772 46,525 43,857 65,380 62,011 440,105 419,640
Financial liabilities measured at fair value through
profit or loss
a) Financial liabilities held for trading 0 0 1,205 1,364 0 0 1,205 1,364
b) Financial liabilities designated at fair value 4,096 3,659 2,971 3,922 468 472 7,535 8,054
Total Liabilities 4,096 3,659 4,176 5,286 468 472 8,740 9,417
36. Transfers of financial instruments at fair value
between Level 1 and Level 2
Generally, transfers between levels are attributable to the changes in the market activities and to the observability of the inputs used
in the valuation techniques to determine the fair value of certain instruments.
Financial assets and financial liabilities are mainly transferred from Level 1 to Level 2, following shifts in liquidity or variation in the
frequency of market observed transaction, which result in the absence of an active market (and vice versa for transfers from Level
2 to Level 1).
The main transfers from Level 1 to Level 2 relate to bonds, mostly classified as financial assets at fair value through other comprehensive
income, which are subject to transfers form Level 1 to Level 2 for € 8,437 million and from Level 2 to Level 1 for € 2,659 million.
37. Additional information on Level 3
The amount of financial instruments classified within Level 3 represents 14.9% of total financial assets at fair value, substantially in
line with 31 December 2022 (14.6%).
Generally, the main inputs used in valuation techniques are volatility, interest rates, yield curves, credit spreads, dividend estimates
and exchange rates. The evaluation methods used haven’t significantly changed compared to 31 December 2022.
The more significant assets classified within the third level of the hierarchy are the following:
• Unquoted equities
It includes unquoted equity securities, mainly classified among financial assets at fair value through other comprehensive income.
Their fair value is determined using the valuation methods described above or based on the net asset value of the company. These
contracts are valued individually using appropriate input depending on the security and therefore neither a sensitivity analysis nor an
aggregate of unobservable inputs used would be indicative of the valuation.
• Unquoted IFU funds
It includes quotas in unquoted IFU funds (mainly in private debt and real estate funds) classified among financial assets at fair value
through profit or loss. Their fair value is determined using the net asset value data provided, adjusted as necessary to meet the
valuation requirements expressed by IFRS 13. Being the unquoted IFU funds linearly affected by the variation of the underlying
assets, the Group assumes that a variation in the value of the underlying assets causes the same variation in the fair value of these
unquoted IFU bonds as well.
347
Consolidated Financial Statements
Details of the variations of assets and liabilities measured at fair value on a recurring basis classified in Level 3
(€ million) Financial assets at fair
value through other
comprehensive income
Financial assets measured at fair value through profit or loss Investment property Property, Plant and
Equipment
Equity investments Intangible Assets Financial liabilities measured at fair value through
profit or loss
Financial assets held for
trading
Financial assets
designed at fair value
Financial assets
mandatorily measured at
fair value
Financial liabilities held for
trading
Financial liabilities
designated at fair value
1. Opening balances 5,896 110 3,541 29,136 22,112 255 961 0 0 472
2. Increases 1,663 1 2,640 5,789 845 1 41 0 0 125
2.1. Acquisitions 1,273 0 692 5,482 464 1 41 0 0 94
2.2 Gains recognised in: 148 1 148 308 114 0 0 0 0 0
2.2.1 Profit or loss 0 1 148 308 114 0 0 0 0 0
of which gains 0 1 148 308 114 0 0 0 0 X
of which losses X X X X X X X X X 0
2.2.2 Other comprehensive income 148 X X X 0 0 0 0 0 X
2.3. Transfer from/to other levels 236 0 1,800 0 42 0 0 0 0 0
2.4 Other variations (+) 5 0 0 0 225 0 0 0 0 32
3. Decreases -1,299 -26 -1,507 -2,398 -2,190 -12 -179 0 0 -129
3.1 Sales -575 0 -1,108 -1,430 -1,040 -0 -6 0 0 -0
3.2 Paybacks -502 0 -10 -6 0 0 0 0 0 -146
3.3 Losses recognized in: -222 -14 -350 -729 -1,150 -11 -118 0 0 17
3.3.1 Profit or loss 0 -14 -350 -729 -1,150 -11 -86 0 0 17
of which losses 0 -14 -350 -729 -1,150 -11 -86 0 0 X
of which gains X X X X X X X X X 17
3.3.2 Other comprehensive income -222 X X X 0 0 -33 0 0 X
3.4 Transferts to other levels 0 0 -2 0 0 0 0 0 0 0
3.5 Other variations (-) 0 -11 -37 -232 0 0 -55 0 0 0
• Private equity funds
It includes quotas in private equity funds principally classified among financial assets at fair value through profit or loss. Their fair
value is generally defined considering the net asset value at the reporting date, which is determined by using the periodical net
asset value provided by the manager of the funds, possibly adjusted considering the liquidity of the funds, and subject, where
relevant, to further valuation considerations developed by the Group. The Group also periodically conducts an analysis of any
significant variances compared to the certified financial statements provided by the fund administrators. Being the private equity
funds linearly affected by the variation of the underlying assets, the Group assumes that a variation in the value of the underlying
assets causes the same variation in the fair value of these funds as well.
• Bonds
This category includes both government and corporate bonds, mainly classified among financial assets at fair value through other
comprehensive income and, to a less extent, among financial assets at fair value through profit or loss. Their fair value is mainly
determined based on the market or income approach. In terms of sensitivity analysis any changes in the inputs used in the valuation
do not cause a significant impact on the fair value at the Group level considering the lack of materiality of these securities classified
within the third level of the hierarchy. Moreover, given the analyses described above, the Group has decided to classify all the asset-
backed securities items within the third level of the hierarchy considering that their evaluation is generally not corroborated by market
inputs. For what regards prices provided by providers or counterparties, bonds for which it is not possible to replicate the price using
market inputs have been classified within the third level of the hierarchy.
• Investment properties
It includes land and buildings held for investment purposes measured at fair value on a recurring basis. The Group has adopted
a standardized property valuation process based on appraisals mainly commissioned from third parties. Their fair value is mainly
determined based on the income approach. The Group considers these assets to be linearly sensitive to changes in the inputs
used in their valuation.
The table below presents a reconciliation between the opening balance and the final amount of assets and liabilities measured at fair
value on recurring basis and classified as Level 3.
348
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Details of the variations of assets and liabilities measured at fair value on a recurring basis classified in Level 3
(€ million) Financial assets at fair
value through other
comprehensive income
Financial assets measured at fair value through profit or loss Investment property Property, Plant and
Equipment
Equity investments Intangible Assets Financial liabilities measured at fair value through
profit or loss
Financial assets held for
trading
Financial assets
designed at fair value
Financial assets
mandatorily measured at
fair value
Financial liabilities held for
trading
Financial liabilities
designated at fair value
1. Opening balances 5,896 110 3,541 29,136 22,112 255 961 0 0 472
2. Increases 1,663 1 2,640 5,789 845 1 41 0 0 125
2.1. Acquisitions 1,273 0 692 5,482 464 1 41 0 0 94
2.2 Gains recognised in: 148 1 148 308 114 0 0 0 0 0
2.2.1 Profit or loss 0 1 148 308 114 0 0 0 0 0
of which gains 0 1 148 308 114 0 0 0 0 X
of which losses X X X X X X X X X 0
2.2.2 Other comprehensive income 148 X X X 0 0 0 0 0 X
2.3. Transfer from/to other levels 236 0 1,800 0 42 0 0 0 0 0
2.4 Other variations (+) 5 0 0 0 225 0 0 0 0 32
3. Decreases -1,299 -26 -1,507 -2,398 -2,190 -12 -179 0 0 -129
3.1 Sales -575 0 -1,108 -1,430 -1,040 -0 -6 0 0 -0
3.2 Paybacks -502 0 -10 -6 0 0 0 0 0 -146
3.3 Losses recognized in: -222 -14 -350 -729 -1,150 -11 -118 0 0 17
3.3.1 Profit or loss 0 -14 -350 -729 -1,150 -11 -86 0 0 17
of which losses 0 -14 -350 -729 -1,150 -11 -86 0 0 X
of which gains X X X X X X X X X 17
3.3.2 Other comprehensive income -222 X X X 0 0 -33 0 0 X
3.4 Transferts to other levels 0 0 -2 0 0 0 0 0 0 0
3.5 Other variations (-) 0 -11 -37 -232 0 0 -55 0 0 0
4. Final amount 6,260 85 4,673 32,528 20,767 245 823 0 0 468
349
Consolidated Financial Statements
38. Information on fair value hierarchy of assets and
liabilities not measured at fair value
The table below presents the classification of assets and liabilities not measured at fair value or designated at fair value on a non-
recurring basis among the levels of the fair value hierarchy as defined by IFRS 13.
Assets and liabilities not valued at fair value or designated at fair value on a non-recurring basis: breakdown by fair value hierarchy levels
(€ million) Carrying Amounts Fair value
Assets/Liabilities not measured at fair value
or measured at fair value on a non-recurring
basis
Level 1 Level 2 Level 3 Total
31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022
Assets
Financial assets measured at amortised cost 21,232 23,297 9,469 10,436 8,745 9,561 2,839 2,760 21,053 22,758
Investments in associates and joint ventures 1,889 1,532 0 0 0 0 1,657 1,317 1,657 1,317
Investment property 3,064 3,515 0 0 0 0 5,312 6,209 5,312 6,209
Non-current assets and disposal groups
held for sale
0 0 0 0 0 0 0 0 0 0
Property, plant and equipment 0 0 0 0 0 0 4,310 4,550 4,310 4,550
Total Assets 26,186 28,343 9,469 10,436 8,745 9,561 14,119 14,837 32,332 34,834
Liabilities
Financial liabilities valued at amortised cost 35,346 36,225 10,264 9,979 16,276 17,768 8,578 8,482 35,118 36,229
Liability of a disposal group held for sale 0 0 0 0 0 0 0 0 0 0
Total Liabilities 35,346 36,225 10,264 9,979 16,276 17,768 8,578 8,482 35,118 36,229
• Financial assets measured at amortised cost
This category includes bonds, which valuation is described above, mortgages and other loans. For more details on the product
composition, please refer to the section Investments in the Notes.
In particular, mortgages and other loans are valued on the basis of future payments of principal and interest discounted at the
interest rates for similar investments by incorporating the expected future losses or alternatively discounting (with risk-free rate) to
the probable future cash flows considering market or entity- specific data ( i.e. probability of default). These assets are classified
within the second or third level of the hierarchy, depending on whether or not the inputs are corroborated by market data.
If the fair value cannot be reliably determined, the amortised cost is used as the best estimate for the determination of fair value
itself.
• Receivables from banks or customers
Considering their nature, the amortised cost is generally considered a good approximation of fair value and therefore classified
within the third level of the hierarchy. If deemed appropriate, they are valued at market value, considering observable inputs, and
therefore classified within the second level of the hierarchy.
• Land and buildings (investment and self-used properties)
These assets are mainly valuated on the basis of inputs of similar assets in active markets or of discounted cash flows of future
income and expenses of the rental considered as part of the higher and best use by a market participant. Based on the analysis of
inputs used for the valuation process, considering the limited cases where the inputs are observable in active markets, the entire
category has been classified within the third level of the hierarchy. In particular, the valuation process considers both discounted
future net income and the specific characteristic of the asset, including for example, the type of use, location, and vacancy rate.
The fair value of land and buildings (investment properties) at the end of the period is determined based on appraisal commissioned
mainly to third-party entities.
• Investments in subsidiaries, associated companies and joint ventures
The carrying amount, based on the share of equity for associates and interests in joint ventures or on cost adjusted for eventual
impairment losses for non-consolidated subsidiaries, is used as a reasonable estimate of the related fair value. Therefore, these
investments are classified within the third level of the hierarchy.
• Subordinated debts, loans and bonds issued, liabilities to banks and customers
Generally, if available and if the market is active, fair value is equal to the market price. The fair value is determined primarily on the
basis of the income approach using discounting techniques. In particular, the fair value of debt instruments issued by the Group
are valued using discounted cash flow models, based on the current marginal rates of the Group financing for similar types of
instruments, with maturities consistent with the residual maturity of the debt instruments subject to valuation.
350
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
ADDITIONAL INFORMATION
39. Information about employees
Information about employees
31/12/2023 31/12/2022
Managers 2,307 2,292
Middle managers 9,483 12,179
Employees 52,165 50,297
Sales attendant 17,751 17,006
Others 173 287
Total 81,879 82,061
40. Provisions for defined benefit plans
The pension benefits of Generali Group’s employees are mainly in the form of defined benefit plans and defined contribution plans.
As for defined benefit plans, participants are granted a defined pension benefits either by the employers or via external entities.
The main defined benefits plans are concentrated in Germany, Austria and Switzerland, while in Italy the provision for Trattamento di
fine rapporto (employee severance pay) matured until 1 January 2007 is included in the provisions for defined benefit plan for €70
million.
The table below shows the movements in the defined benefit plans liability which occurred during the financial year, net of assets
legally separate and held solely to pay or fund employee benefits:
Net defined benefit plans liabilities: movements
(€ million) 31/12/2023 31/12/2022
Net liability as at 31 December previous year 2,880 3,894
Foreign currency translation effects -1 1
Net expense recognised in the income statement 162 98
Re-measuraments recognised in Other Comprehensive Income 232 -905
Contributions and benefits paid -209 -208
Changes in consolidation scope and other changes -25 0
Net liability as at 31 December current year 3,039 2,880
Part of the Group’s defined benefit plans have assets that are designated, but not legally segregated, to meet the pension defined
benefit obligations. These are investments backing insurance provisions or policies issued by Generali Group companies, or other
investments owned by the Group entities. Consequently, in accordance with IAS 19, these investments are not recognised as plan
assets and so cannot be deducted from the defined benefit obligations. However, to assess the net liability for defined benefit plans,
these assets should have been netted against the present value of the related pension obligations.
In Germany and Austria, where is allocated approximately 92% of the present net value of defined benefit obligations, the pension
guarantee associations, for yearly contributions to be paid by the companies, are liable for the fulfilment of the pension commitments
351
Consolidated Financial Statements
The net defined benefit plans expense of the year recognised in the profit or loss account is represented as follows:
Net defined benefit plans expenses recognised in profit or loss
(€ million) 31/12/2023 31/12/2022
Current service cost 53 53
Net interest 106 32
Past service cost 1 1
Losses (gains) on settlements 1 1
Net expense recognised in the income statement 162 87
The re-measurement of liabilities related to defined benefit plans and plan assets, recognised in Other comprehensive income are
detailed as follows:
Re-measurements recognised in Other Comprehensive Income
(€ million) 31/12/2023 31/12/2022
Actuarial gains (losses) from change in financial assumptions -194 1,033
Actuarial gains (losses) from change in demographical assumptions -8 7
Actuarial gains (losses) from experience -71 10
Return on plan assets (other than interest) 41 -160
Re-measurements recognised in Other Comprehensive Income -232 891
In comparison with the previous year, the variation in the reference rates at the end of year, in application of IAS 19 for the determination
of the discount rate applicable to the valuation of these liabilities, leads to higher actuarial losses and the consequent increase of
liabilities under evaluation.
The amounts reported are gross of deferred taxes.
The table below shows the movements in the defined benefit obligation during the financial year and the current value of the plan
assets:
Present value of defined benefit obligation: movements
(€ million) 31/12/2023 31/12/2022
Defined benefit obligation as at 31 December previous year 4,027 5,169
Foreign currency translation effects 52 31
Current service cost 53 55
Past service cost 1 1
Interest expense 133 50
Actuarial losses (gains) 273 -1,065
Losses (gains) on settlements 1 1
Contribution by plan participants 15 21
Benefits paid -242 -240
Changes in consolidation scope and other changes -47 4
Defined benefit obligation as at 31 December current year 4,268 4,027
352
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Current value of plan assets: movements
(€ million) 31/12/2023 31/12/2022
Fair value of plan assets as at 31 December previous year 1,147 1,274
Foreign currency translation effects 53 30
Interest income 28 8
Return on plan assets (other than interest) 43 -160
Gains (losses) on settlements 0 -0
Employer contribution 41 37
Contribution by plan participants 15 21
Benefits paid -74 -68
Changes in consolidation scope and other changes -23 5
Fair value of plan assets as at 31 December current year 1,229 1,147
The defined benefit plans’ weighted-average asset allocation by asset category is as follows:
Defined benefit plans: assets allocation
(%) 31/12/2023 31/12/2022
Bonds 42.6% 42.9%
Equities 18.4% 18.9%
Real estate 17.6% 17.0%
Investment fund units 3.5% 1.3%
Insurance policies issued by non Group insurers 1.4% 1.2%
Other investments 16.5% 18.7%
Total 100.0% 100.0%
The assumptions used in the actuarial calculation of the defined benefit obligations and the related periodic pension cost are based
on the best estimates of each companies granting defined benefit plans. The main weighted-average hypotheses considered for the
value definition of defined benefits plans obligations are summarized in the following table, for the main operating areas:
Assumptions for actuarial calculation of defined benefit plans
% Eurozone Switzerland United Kingdom
31/12/2023 31/12/2022 31/12/2023 31/12/2022 31/12/2023 31/12/2022
Discount rate for evaluation at reporting date 3.2% 3.9% 1.7% 1.9% 4.5% 4.8%
Rate of salary increase 2.9% 3.0% 1.7% 1.7% 0.0% 0.0%
Rate of pension increase 2.0% 2.1% 0.0% 0.0% 3.0% 3.2%
The average duration of the obligation for defined benefit plans is 12 years as at 31 December 2023 (12 years at 31 December 2022).
A sensitivity analysis was carried out showing how the defined benefit obligation would have been affected by changes in the
discount rate and the most relevant actuarial assumptions on these liabilities:
Defined benefit plans: sensitivity
(€ million)
Assumptions
Discount rate for evaluation at
reporting date
Rate of salary increase Rate of pension
increase
0,5% increase 0,5% decrease 0,5% increase 0,5% decrease 0,5% increase
Impact on defined benefit obligation -202 224 20 -19 104
353
Consolidated Financial Statements
354
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
To provide an indication of the effect of the defined benefit plans on the future cash flows of the Group, the future expected payments,
divided by bands of maturity, are presented below:
Defined benefit plans: expected payments
(€ million) 31/12/2023 31/12/2022
Within the next 12 months 259 245
Between 2 and 5 years 1,002 967
Between 5 and 10 years 1,200 1,163
Beyond 10 years 3,822 3,891
Total 6,283 6,266
41. Share-based compensation plans
At 31 December 2023, different incentive plans based on equity instruments granted by the Parent Company and other Group
companies are outstanding.
41.1. Share-based compensation plans granted by the Parent
Company
Long-Term Incentives (LTI) represent the long-term variable remuneration of Generali, which takes the form of multi-year plans,
approved from time to time by the competent bodies and may be addressed to directors, managers with strategic responsibilities
and other Generali employees; they may be based on cash disbursements or financial instruments.
The plan LTI 2020 has completed the performance cycle at the end of 2022. The corresponding share allocation has been carried
out starting from April 2023, depending on the target population.
The LTI plans 2021 and 2022, currently in progress, may result in shares’ granting in the financial years envisaged under the plan
rules depending on the different categories of beneficiaries, subject to the achievement of certain Group performance levels.
Further details are given in the information reports approved at the time by the Shareholders’ Meeting and published on the Generali
Group website, as well as in the Remuneration Report annually published.
A new long-term incentive plan based on Assicurazioni Generali S.p.A. shares – Long Term Incentive (LTI) 2023 - has been submitted
for the approval of the Shareholders’ Meeting of 28 April 2023.
In line with market practices and investor expectations, shares are assigned and made available to beneficiaries over a deferred
long-term time span, subject to the achievement of Group’s performance conditions (Net Holding Cash Flow, Total Shareholder
Return – relevant TSR and ESG targets) and the achievement of a minimum level of Regulatory Solvency Ratio, as the only access
threshold, as detailed below.
The Plan is based on the following essential aspects:
• the incentive connected with the achievement of the targets is paid through the grant of Assicurazioni Generali S.p.A. ordinary
shares;
• the right to receive the shares is subject to an entry threshold, defined annually by the Board of Directors and which represents a
condition precedent;
• the targets to which payment of the incentive is subject are Group financial and non-financial/ESG ones and are defined at the
beginning of the performance period and kept consistent with the strategic long-term plans of the group.
The maximum number of shares that can be assigned is determined at the start of the plan. The maximum potential bonus to be
disbursed in shares equals to 175% of the gross fixed remuneration of the Global Leadership Group (GLG) members (or a different
percentage considering the role of the beneficiary); therefore, the maximum number of shares that can be assigned is the result of
the ratio of the maximum bonus and the share value, with the latter calculated as the average price of the share in the three months
prior to the meeting of the Board of Directors called to resolve on the draft statutory financial statements of the Parent Company and
the consolidated financial statements for the year prior to that when the Plan is started.
With reference to methods and time frame for granting the shares, they are differentiated by:
• the Managing Director/Group CEO and the members of the Group Management Committee:
- at the end of the three-year performance period, 50% of the shares accrued on the basis of the targets met will be granted; 25%
are immediately available (to allow the beneficiaries to bear the tax charges connected with the grant), while the remaining 25%
are subject to a one-year lock-up period;
- the remaining 50% of the accrued shares is subject to another two years of deferral, during which the accrued amount may
become zero if the Regulatory Solvency Ratio threshold level established by the plan is not met, or if a malus provided for by
the plan regulation should occur. After having check that the aforesaid threshold level has been reached and that there is no
355
Consolidated Financial Statements
8. The pay-out is identified through linear interpolation with a calculation range between the maximum payout, recognized in the case of certification of the same on levels greater than or equal to
40% and a zero pay-out in the case of certification of the same on levels lower than 25%.
9. The pay-out is identified through linear interpolation with a calculation range between the maximum payout, recognized in the case of certification of the same on levels greater than 44% and a
zero pay-out in the case of certification of the same on levels lower than 40%.
the remaining 50% of the shares accrued are granted; 25% are immediately available (to allow the beneficiaries to bear the tax
charges connected with the grant), while the remaining 25% are subject to a one year lock-up period;
• the remaining key employees, GLG, Directors and talents: at the end of the three-year performance period, 100% of the shares
accrued will be granted, of which 50% are immediately available (to allow the beneficiaries to bear the tax charges connected with
the grant), while the remaining 50% are subject to a two-year lock-up period.
The performance level is expressed as a percentage of the level of individual indicators achievement, which final results are calculated
using a linear interpolation approach.
During each year of the plan and at the end of the three-year performance period and, in any case, at the end of the additional
two-year deferral period, an evaluation is carried out on the degree to which access threshold has been achieved, defined in
terms of Regulatory Solvency Ratio equal to 130% - the limit set considering the hard limit level defined in the Group Risk Appetite
Framework - or an alternative percentage as may be chosen from time to time by the Board of Directors. This evaluation is a malus
mechanism based on which the number of shares to grant definitively may be reduced or set at zero by the Board of Directors should
the Regulatory Solvency Ratio be lower than the set threshold. The Board of Directors is also entitled to set a reduced number of
shares to grant definitively should the Regulatory Solvency Ratio be lower than the soft limit level established by the Risk Appetite
Framework, that is 150% - but in any case, higher than 130%.
In any case, no incentive will be paid in the event of a significant worsening of the capital and financial situation of the Group. Any
amount disbursed will be subject to claw-back if the performance considered should later be found to be non-lasting or ineffective
as a result of willful misconduct or gross negligence.
In line with what has already been established for the existing plans, the 2023 Plan has a dividend equivalent mechanism on the
basis of the dividends distributed during the performance period (dividend equivalent). In particular, should the shareholders’ meeting
resolve upon the distribution of dividends in favour of the shareholders during the reference period, at the expiry of such period, an
additional number of shares determined in relation to the overall dividends distributed during the reference period will be assigned in
favour of the beneficiaries. The additional number of shares thus determined shall be assigned simultaneously and in relation with the
other shares assigned in favour of each beneficiary, subject to the same restrictions (holding period) and determined considering the
shares’ value at the assignment of the plan, to be calculated as the average price of the share in the three months prior to the meeting
of the Board of Directors called to resolve on the draft statutory financial statements of the Parent Company and the consolidated
financial statements for the year before that when the Plan is started.
The maximum number of shares that can be granted is 11,300,000, accounting for 0.71% of the current share capital.
In line with the previous plans, the 2023 LTI plan can be treated as an equity-settled share-based payment falling under IFRS 2 –
Share-based Payment, which provides a grant date measurement model seeking to capture the value of the contingent right to
shares promised at grant date, to the extent that promises become an entitlement of the counterparty, rather than the value of any
shares finally delivered.
The condition related to relative TSR configures as a market condition, other conditions mentioned above are considered whether
as performance or as service condition.
The value of the right to receive free shares related to the market condition is estimated at grant date using a statistical model which
estimates the statistically probable positioning of relative TSR of the Generali share compared to a peer group panel of selected
companies.
The fair value of the bonus right linked to market condition is made by multiplying the forward price of assignable shares (taking
into account the lock-up period set by the plan for the different beneficiary types) to the grant date with the pay-out ratio of the
relative TSR. Such pay-out is determined as the average of the pay-outs resulting from the processing of a series of scenarios using
a statistical model. The pay-out of the single simulation is zero in the case of the TSR of Generali’s shares positioning below the
median of the panel peer group, while it is positive in the case of the TSR of Generali’s shares positioning above the median of the
panel peer group. The maximum pay-out is recognized in the case of the relative TSR value of Generali shares positioning above the
90th percentile.
The estimated fair value of LTI 2023 plan at the grant date of the bonus right related to the performance level in terms of relative TSR
is € 13.16 with reference to the members of the GLG category.
The related cost on the overall plan is obtained by multiplying the fair value mentioned above by the number of rights related to
the market condition, to be assigned based on the satisfaction of the vesting condition. A similar calculation was applied to the
bonus portion linked to Net Holding Cash Flow (NHCF), identifying the pay-out through the linear interpolation applied to the level
of performance considered most probable. The range applied to the linear interpolation of NHCF is included between the maximum
pay-out, granted in case of level equal to or greater than € 9.7 billion and a pay-out equal to 0 in case of a level equal or lower than
€ 8.2 billion. Payment related to the achievement of ESG target is determined based on 1) the amount of investments classifiable as
New Green & Bond Investments
8
and 2) the percentages of women in strategic positions
9
.
356
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Finally, the cost related to the recognition of dividends paid during the period (so called dividend equivalent) was estimated by applying
an estimated dividend to the expected number of shares to be assigned under the plan, based on the degree of achievement
assessed as above described. For additional information related to incentive plans refer to the 2023 Remuneration Report.
The Annual General Meeting of 29
th
April 2022 approved the proposal to launch a new three-year share ownership plan for Group
employees, in line with the 2022-2024 Strategy, focused on a culture of ownership and empowerment, and promoting participation
in the creation of Group sustainable value.
The Plan offers Group employees the opportunity to purchase Generali shares at favorable conditions based on the appreciation of
the value of the stock with the introduction of an ESG objective connected to the reduction of CO
2
emissions relating to the Group’s
operating activities in line with the Group’s climate strategy.
The Share Plan is addressed is addressed to employees of Assicurazioni Generali and the companies belonging to the Group,
excluding members of the Group Management Committee and the Global Leadership Group who cannot subscribe to the Plan as
well as employees operating in countries and companies in which it is not possible to implement the Share Plan on the terms set and
approved by Generali, for reasons of a legal, fiscal, operating or organizational nature.
The Plan will be launched in June 2023 and will end at the end of May 2026, thus having a duration of indicatively 3 years.
The essential features of the Plan are set out below:
• at the beginning of the Plan, employees who decide to participate (‘participants’) will be able to define the amount of their individual
contribution;
• the amount of the individual contribution shall be between a minimum of € 660 and a maximum of € 9,900 and will be committed
for the entire duration of the Plan;
• based on the amount of the individual contribution, participants will receive free of charge the right (‘options’) to purchase, at the
end of the Plan, underlying Generali share at a price determined at the beginning of the Plan (‘initial price’). The number of options
assigned to each participant will be equal to the ratio between the individual contribution and the initial price. The initial price shall
be calculated as the average of the official closing prices of Generali shares on Euronext Milan of the month following the date on
which this Plan is launched by the Board of Directors with the possibility of applying an adjustment factor up to the +/- 10% on
the defined average price;
• at the end of the Plan, the final price of Generali shares shall be determined and:
- in case of share price appreciation (final price equal to or higher than the initial price, i.e. options ‘in-the-Money’), participants
will automatically purchase the Underlying Shares by paying to the Company the individual contribution accrued throughout the
Plan and will receive free of charge:
1. dividend Equivalent Shares, amounting to the ration between the value of the dividends per share (paid by Assicurazioni
Generali on a cash basis during the years 2023, 2024 and 2025) and the initial price, multiplied by the number of Underlying
Shares purchased;
2. two Matching Shares for every ten Underlying Shares purchased;
3. two ESG Shares for every ten Underlying Shares purchased, if the ESG Goal is also achieved.
- In case of share price depreciation (final price lower than the initial price, i.e. options ‘out-of-the-Money’), participants will receive:
1. the refund of the individual contribution accrued (protection mechanism);
2. the Dividend Equivalent Shares in case the Net Holding Cash Flow (NHCF) goal is achieved.
The maximum number of shares for the Plan is 9,000,000 (about 0.6% of current share capital), to be executed through the
purchase of treasury shares in the market without capital dilution. In the event that the aggregate number of subscriptions to the Plan
exceeds the maximum threshold of distributable options, or the maximum threshold of Generali purchasable or attributable shares,
the number of options to be assigned free of charge shall be reduced on a pro rata basis for all the participants (reallotment). The
reallotment shall be carried out for a percentage value such as to guarantee the allocation of options (or, subsequently of Generali
shares) within the stated maximum limits.
The Plan also provides for mauls, clawback and prohibitions on hedging clauses in the line with Group Policies.
The overall cost of the LTI plans 2020, 2021, 2022, 2023, as well as We Share plan is allocated over the period of maturity (vesting
period) starting from the first financial year on which the performance levels are assessed, with a corresponding increase in equity.
The cost associated with all above-mentioned outstanding plans recognized during the period amounted to € 110.64 million. The
maximum number of shares that can be granted in relation to mentioned plans is approximately 35.4 million.
41.2. Share-based compensation plans granted by the other
Group companies
The main share-based payments granted by the other Group companies are detailed here below.
357
Consolidated Financial Statements
10. Bank of Italy Circular No. 285/2013, “Supervisory Provisions for Banks”, Part I, Title IV, Chapter 2, Compensation and incentive mechanisms, as updated on 24 November 2021 (37th update).
11. Provided for by the Management by Objectives (MBO) mechanism or by specific incentive/recruitment plans.
Share-based compensation plans granted by Banca Generali
At 31 December 2023, Banca Generali activated the following payment agreements based on own equity instruments:
• the plans launched with respect to the Banca Generali Group’s Remuneration and Incentive Policy, in effect from time to time, which
calls for a part of the variable remuneration of Key Personnel to be paid by assigning Banca Generali’s own financial instruments;
• the plans launched in service of the Framework Loyalty Programme 2017-2026, approved by the General Shareholders’ Meeting
on 20 April 2017 and now in its fifth annual cycle (2021-2026), which calls for a maximum of 50% of the indemnity accrued to be
paid using own financial instruments;
• the LTI (Long term Incentive) plans for the Banking Group’s top managers, based on Banca Generali shares, launched in 2018.
Share-based payment plans linked to the variable component of remuneration based
on performance objectives
The Remuneration and Incentive Policy for the Key Personnel of Banca Generali Group — adopted in compliance with the Supervisory
Provisions
10
currently in force — requires a portion of the variable component of remuneration, both current and deferred, to be
paid by assigning Banca Generali’s own financial instruments, based on the rules annually submitted for approval to the General
Shareholders’ Meeting of the Bank.
In addition to Top Managers, who qualify as Managers with Strategic Responsibilities, Key Personnel includes employees with special
managerial responsibilities, Financial Advisors who serve as network managers and Financial Advisors whose total remuneration is
a particularly high amount.
As of 2022, if the variable component of the Key Personnel’s remuneration exceeds 50 thousand euros and one third of ordinary
remuneration, at least 40% of it is subject to deferred payment systems for a period of time of no less than four years and will be at
least 50% paid in Banca Generali shares according to the following assignment and retention mechanism:
• 60% of the bonus is paid up-front, normally by the first half of the year after that of reference, 50% in cash and 50% in Banca
Generali shares, which will be subject to a retention period of one calendar year;
• 40% of the bonus will be paid according to a linear pro-rated approach and will be further deferred by four years from the payment
of the first instalment, 50% in cash and 50% in Banca Generali shares, which will be subject to a retention period of one calendar
year.
For Non-Top Key Personnel whose variable remuneration is a particularly high amount, the portion subject to deferral is increased to
60%, without prejudice to the payment of 50% of it in Banca Generali shares, whereas for Top Key Personnel the deferral period is
increased to five years, with a 56% paid in shares.
Up to 2021, 40% of Key Personnel’s variable remuneration, exceeding the threshold of 75 thousand euros, had been subject to
deferral but for a period of no less than 2 years, with a 25% paid in Banca Generali shares according to the following assignment
and retention mechanism:
• 60% of the bonus was paid up-front during the year after that of reference, 75% in cash and 25% in Banca Generali shares, which
were subject to a retention period until the end of the year of assignment;
• 40% of the bonus was paid in two instalments of equal amount and deferred for one year and for two years, respectively, to be
paid 75% in cash and 25% in Banca Generali shares, subject to a retention period until the end of the year of assignment.
In calculating the number of shares to be assigned, a method is applied where:
• the numerator is the portion of variable remuneration subject to payment in shares accrued in relation to the achievement of
objectives set for the year in question; and
• the denominator is equal to the average price of Banca Generali shares during the three months prior to the meeting of the Board
of Directors that approves the draft Separate and Consolidated Financial Statements for the year prior to that in which the cycle
in question begins.
The payment in shares is executed after the Board of Directors verifies the earnings results for the year in question and is conditional
not only upon the achievement of the pre-set objectives
11
, but also to the satisfaction of access gates established by the Banking
Group (TCR – Total Capital Ratio, LCR – Liquidity Coverage Ratio) for the year in which the remuneration is accrued and, where
appropriate, for the following years of deferral.
The Banking Group’s Remuneration Policy for the reference year together with the authorisation to buy back treasury shares to
be used to service it are submitted annually to the General Shareholders’ Meeting that approves the previous year’s Financial
Statements. The resolution authorising the buy-back of treasury shares is also subject to authorisation by the Bank of Italy.
358
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
These plan categories also include any other compensation paid in the form of shares related to:
• ordinary sales incentives and recruitment plan for Financial Advisors other than the main network managers and employed sales
personnel;
• agreements entered into in view of or upon the early termination of the employment or agency relationship, with regard to the
beneficiaries falling within the category of Key Personnel.
The mechanisms to recognise variable remuneration — discussed in the previous section — are considered as equity-settled share-
based payment transactions, falling within the scope of application of IFRS 2 – Share-based Payments.
The accounting treatment set forth for these transactions requires an entity to reflect in its accounts, under the most appropriate
items (staff expenses, fee expense), the estimated expense associated with services received, determined on the basis of the fair
value of the rights granted (stock options/stock grants), as an offsetting entry to an increase in net equity through allocation to a
specific equity reserve.
As the agreements relating to share-based payments based on the above-mentioned plans do not call for an exercise price,
they can be considered similar to a stock grant and recognised in compliance with the rules set forth for this category of
transactions.
The overall expense regarding said agreements is therefore determined based on the number of shares expected to be assigned,
multiplied by the fair value of the Banca Generali stock at the date of assignment.
The fair value of Banca Generali stock at the assignment date is measured based on the market price reported at the date of the
General Shareholders’ Meeting that is called annually to approve the Remuneration Policy for the year of reference, adjusted to
account for the estimate of expected dividends, that will not be received by the beneficiaries during the deferral period.
The recognition through the equity reserve of the value of the plans — determined as described above — is measured pro-rata
temporis, based on the vesting conditions, i.e., the period between assignment and final maturity of the right to receive the shares,
likewise taking into account the probability that exercise conditions will not be realised for all beneficiaries.
Since the plans are organised into different instalments with differentiated vesting periods, each plan is valued separately.
In detail, the vesting period for the first instalment paid up-front assigned after the approval of the Financial Statements for the year
of reference lasts from 1 January to 31 December of the year of reference of the remuneration (12 months). The vesting period of
the subsequent instalments, whose payment is conditional upon both the continuation of service and the satisfaction of the access
gates established on an annual basis, is further extended to 31 December of the year preceding that in which the shares are actually
disbursed, according to a graded vesting criteria
12
13
.
However, the number of shares actually granted to beneficiaries may change based on the assessment of satisfaction of the
individual objectives.
The IFRS 2 expense relating to any beneficiaries belonging to Banking Group companies other than the parent company Banca
Generali is recognised directly by those companies. However, when the treasury shares bought back are actually assigned to them,
the Bank charges back to the companies involved an amount corresponding to the fair value of the relevant plans
14
.
At 31 December 2023, there are three active cycles of share-based plans in connection to the Remuneration Policies relating to
2021, 2022 and 2023, whereas the 2020 cycle ended in the year, with the payment of the second deferred instalment.
Moreover, a limited number of non-standardised entry plans envisaging a longer, multi-year deferment are active.
The main features of the share-based plan, linked to the 2020 Remuneration Policies and approved by the General Shareholders’
Meeting on 23 April 2020, are as follows:
• for the purpose of determining the number of shares to be assigned, the price of reference of Banca Generali shares, calculated
as the average official market price during the period 9 December 2019 to 9 March 2020, had been determined to be 29.71
euros;
• the fair value of Banca Generali stock at the assignment date had been equal to the market price reported on 23 April 2020
(approximately 20.76 euros), subsequently adjusted to account for the loss of dividends expected in the deferral period.
In that cycle, total shares assigned to Key Personnel had amounted to 152.8 thousand, for a total fair value of 2.8 million euros.
In 2023, 28.7 thousand shares referring to the second deferred instalment were assigned and the plan then ended.
The main features of the share-based plan, linked to the 2021 Remuneration Policies and approved by the General Shareholders’
Meeting on 22 April 2021, are as follows:
• for the purpose of determining the number of shares to be assigned, the price of reference of Banca Generali shares, calculated as
the average official market price during the period 7 December 2020 to 5 March 2021, had been determined to be 27.58 euros;
• the fair value of Banca Generali stock at the assignment date had been equal to the market price reported on 22 April 2021
12. On the basis of the new Remuneration Policy in effect from 2022, the vesting period of portions of deferred variable remuneration may be extended from 24 to 72 months for Top Key Personnel
with a particularly high remuneration.
13. Since 2018, IFRS 2-related charges regarding ordinary incentives accrued by Financial Advisors and linked to objectives of net inflows or acquisition of new customers, where paid in shares, are
expensed over the longer time period of 5 years. In addition, share grants relating to various recruitment plans for Financial Advisors who are included among Key Personnel only after the plan is
concluded may be covered by other provisions for liabilities and contingencies previously allocated.
14. The amount includes, in particular, the bonuses paid in shares to Key Personnel and some managers of the subsidiary BGFML and the Key Personnel of BG Valeur and BG Suisse.
359
Consolidated Financial Statements
In that cycle, the total shares to be assigned to Key Personnel had amounted to 191.8 thousand, for a total fair value of approximately
5.1 million euros.
In 2023, 40.4 thousand shares, referring to the first deferred instalment, were paid to the beneficiaries.
Shares still to be assigned amounted to 39.9 thousand and refer to the second deferred instalment that will become payable in 2024.
The main features of the share-based plan, linked to the 2022 Remuneration Policies and approved by the General Shareholders’
Meeting on 21 April 2022, are as follows:
• for the purpose of determining the number of shares to be assigned, the price of reference of Banca Generali shares, calculated
as the average official market price during the period 9 December 2021 to 9 March 2022, had been determined to be 36.0 euros;
• the fair value of Banca Generali stock at the assignment date had been equal to the market price reported on 22 April 2021
(approximately 32.35 euros), subsequently adjusted to account for the loss of dividends expected in the longer deferral period.
In that cycle, the total shares to be assigned to Key Personnel had amounted to 250 thousand, for a total fair value of approximately
7.1 million euros.
In 2023, 139.3 thousand shares, referring to the up-front portion, were paid to the beneficiaries.
Shares still to be assigned amounted to 110.7 thousand and refer to the deferred instalments that will become payable from 2024
to 2028, respectively.
The main features of the share-based plan, linked to the 2023 Remuneration Policies and approved by the General Shareholders’
Meeting on 19 April 2023, are as follows:
• for the purpose of determining the number of shares to be assigned, the price of reference of Banca Generali shares, calculated
as the average official market price during the period 8 December 2022 to 8 March 2023, was determined to be 33.18 euros;
• the fair value of Banca Generali stock at the assignment date was equal to the market price reported on 19 April 2023 (approximately
30.34 euros), subsequently adjusted to account for the loss of dividends expected in the longer deferral period.
In respect of the assessment of the achievement by Key Personnel of the objectives set for 2023, it was estimated that the portion
of variable remuneration subject to share-based payment amounted to approximately 227.8 thousand shares, for a total plan fair
value of 6.0 million euros.
The estimate of the shares in the process of accruing referring to the 2022-2024 three-year incentive plan launched by the Bank in
2022 that can be allotted to Key Personnel within the sales network (Financial Advisors and Relationship Managers) amounted to
98.3 thousand, for a total value of 2.1 million euros.
There are other share-based plans, activated within the framework of the Remuneration Policies in force from time to time, which
call for longer deferral periods of several years greater than those in effect when the plans were activated or, in any case, for vesting
periods not in line with those envisaged in the Remuneration Policies.
In relation to such plans, the shares to be assigned to Key Personnel are estimated at a total of 35.3 thousand, corresponding to a
fair value of 0.9 million euros, of which 18.8 thousand shares already allotted to the beneficiaries.
In the reporting year, on the basis of the achievement of the performance objectives set out in the 2020, 2021 and 2022 Remuneration
Policy, 215,953 treasury shares were granted to company managers and network managers, of which 176,073 shares assigned
to Area Managers and Financial Advisors, 33,127 shares allotted to employees, and 6,753 shares to other beneficiaries of Banking
Group companies.
In particular, the shares assigned for 2020 and 2021 related, respectively, to the first and second instalments deferred by one year
(20%), whereas the shares assigned for 2022 related to the up-front amount (60%); a residual amount of shares were granted under
previous years’ plans with different deferral mechanisms.
(Thousands of shares) Deferral Date of
Shareholders'
Meeting
Bank of Italy's
authorisation
Assignment
price
Weighted
average FV
Overall shares
(/000)
Already
assigned
shares (/000)
of which
assigned
in 2022
Shares to
be assigned
(/000)
Fair value
(in € million)
Year 2020 2021-2023 23/04/2020 16/07/2020 29.71 18.07 152.4 -123.3 -28.7 0.4 2.8
Year 2021 2022-2024 22/04/2021 01/07/2021 27.58 26.36 191.8 -111.5 -40.4 39.9 5.1
Year 2022 2022-2027 22/04/2022 01/07/2022 36.00 28.24 250.0 0.0 -139.3 110.7 7.1
Year 2023 2023-2028 19/04/2023 01/07/2022 33.18 26.44 227.8 0.0 0.0 227.8 6.0
Year 2022 incl. Triennale 2022-2028 22/04/2022 28/06/2023 36.00 21.61 98.3 0.0 0.0 98.3 2.1
Other multi-year plans 26.42 56.3 -17.7 -7.6 31.1 1.5
Total 976.6 -252.5 -216.0 508.2 24.6
360
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
2017-2026 Framework Sales Network Loyalty Programme
The 2017-2026 Framework Loyalty Programme for the Sales Network was approved by the Board of Directors on 21 March 2017
and ratified by the General Shareholders’ Meeting on 20 April 2017.
The Framework Loyalty Programme is divided into eight annual individual plans, all set to expire on 31 December 2026 and of
decreasing lengths, to be activated following prior authorisation by the General Shareholders’ Meeting of Banca Generali.
The indemnities accrued over the term of the Programme will be, in any event, paid out in one instalment, within 60 days from the
General Shareholders’ Meeting called to approve the 2026 Financial Statements.
For each plan, a portion of the accrued indemnity may be paid out in Banca Generali shares (up to a maximum of 50%), following an
assessment of the potential effects at the level of capital ratios and floating capital by the corporate bodies (Board of Directors and
General Shareholders’ Meeting).
Participation in each of the plans envisaged by the Programme is reserved for Financial Advisors and Relationship Managers who
have at least five years of company seniority by 31 December of the financial year before the reference year for each plan.
To be eligible to access the benefits of the plans activated it is necessary to:
• achieve at the end of the reference year a minimum volume of total AUM and qualified AUM increasing over time and with no net
outflows (vesting condition);
• be regularly employed and not in a notice period on the disbursement date, except when the termination of employment is
caused by death or permanent incapacity, retirement or withdrawal from the relationship by Banca Generali not for cause (service
condition).
In the event of death, the indemnities accrued are understood to be permanently acquired, but are payable to the heirs under the
same conditions specified for the other beneficiaries.
In addition, the accrued indemnity is commensurate for each individual plan with a rate for verified AUM and is differentiated according
to the type of person (Financial Advisor/RM) and service seniority until a cap is reached.
Recognition of the indemnities on the disbursement date is also subject to the Banking Group’s access gates being exceeded as
defined in the Remuneration Policies applicable from time to time and the rules of propriety.
The number of Banca Generali shares due is determined in the same way as for the share-based payment plans connected with the
Remuneration Policies, namely based on the average price of Banca Generali shares during the three months prior to the meeting
of the Board of Directors that approves the draft Separate and Consolidated Financial Statements for the year prior to that of the
annual plan of reference.
Without prejudice to the accounting framework already analysed in point above, set out below are the specific details of the share-
based payment plans that can be activated as part of the Loyalty Programme.
The fair value of Banca Generali share for plan valuation purposes is determined based on the market stock price reported on the
date of the General Shareholders’ Meeting that approves their activation, adjusted to take account of the estimate of expected
dividends that the Bank will distribute along all the time horizon, decreasing for each successive plan, running up to the date the
shares are actually assigned.
The plans’ impact on the profit and loss account is measured pro-rata temporis based on the vesting period, which decreases for
each successive plan, i.e., the period between the year of reference and final maturity of the right to receive the shares, taking also
into account the probability that the vesting conditions for the year will not be realised for all beneficiaries.
For all the annual plans launched up to the reporting date, 50% of the indemnity accrued can be paid out in shares.
The accrued indemnity value was determined based on the AUM of the plan’s potential beneficiaries at end of the year of reference,
whilst the number of financial instruments that can be assigned was determined based on the same reference value as the Banca
Generali stock applied for the Remuneration Policies in force in the respective years.
Overall, the total number of shares, either assigned or in the process of accruing, in service of the five plans amounted to about 1,415
thousand (1,375 thousand net of the estimated turnover), for a total value of 20.2 million euros, of which 10.9 million euros already
recognised through profit and loss.
361
Consolidated Financial Statements
15. For further details on the Plan, reference should be made to the Report on Remuneration Policy and Compensations Paid approved annually by the Shareholders’ Meeting and published on the
Bank’s website.
16. In particular, the maximum performance level is associated with a percentage of 175%.
N. maximum of
attributable shares
No. of shares net
estimated turnover
Fair value plan IFRS2 Revenue Cost 2023
Thousands of shares In € million
Plan 2017 - 2026 204 198 2.4 1.6 0.3
Plan 2018 - 2026 162 158 2.3 1.4 0.3
Plan 2019 - 2026 334 324 4.4 2.6 0.5
Plan 2020 - 2026 278 270 2.7 1.4 0.4
Plan 2021 - 2026 437 424 8.4 3.8 1.3
Total 1,415 1,374 20.2 10.9 2.7
Long Term Incentive (LTI) Plans
The Long Term Incentive (LTI) Plan, based exclusively on Banca Generali S.p.A. shares, is governed by Banca Generali’s Remuneration
Policies for Key Personnel and is approved annually by the Shareholders’ Meeting of the Bank
15
.
The plan aims at increasing the value of Banca Generali shares, by further strengthening the link between the remuneration of
beneficiaries and the performance of the Banking Group, without prejudice to the consistency required with the expected results set
forth in the Insurance Group’s strategic plan.
This incentive instrument was introduced in 2018 to replace an incentive of a similar nature activated annually by the parent company
Assicurazioni Generali for an extensive group of Key Managers of the Insurance Group and based on the assignment of Assicurazioni
Generali shares.
Within this framework, the performance objectives envisaged by the plans assign a weight of 80% to the Banking Group’s objectives
and 20% to the Insurance Group’s objectives.
The performance indicators identified, to which various weights are assigned, may vary year by year and present the following
characteristics:
• Banking Group’s objectives (80%): tROE and adjusted EVA, ESG AUM ratio;
• Insurance Group’s objectives (20%): ROE (Return on Equity), rTSR (relative Total Shareholders’ Return compared to a peer group),
net cash flows, sustainability indicators.
The main characteristics of the plans approved as of 2020 are:
• the maximum number of the shares to be granted is determined at the beginning of the period of reference using a multiplier of
the beneficiary’s current remuneration;
• each year, it is determined that the access gate conditions of the Banking Group and of the Insurance Group have been met with
regard to the specific year of the plan and the attainment of the objectives set at the beginning of the three-year period is assessed;
• at the end of the three years, once it has been determined that the access gates have been exceeded, the overall level of
achievement of the objectives set at the beginning of the three years is assessed on the basis of the average annual results
achieved in order to determine the actual number of shares due;
• the total shares accrued are then disbursed to the plan beneficiaries, provided that there is still a professional relationship between
the beneficiary and a Banking Group company (service condition), through the free allotment of ordinary treasury shares bought
back on the market (stock granting), in two instalments:
- 50% of the shares is assigned immediately, subject to a further retention period of one year;
- the remaining 50% is subject to a deferral of two additional years, without prejudice to a retention period of an additional year;
• the plan does not include dividend equivalent mechanisms, in accordance with the law and common practice in the banking
sector;
• the plans envisage the customary malus and claw-back clauses.
The level of achievement of objectives, expressed in percent terms, is determined separately for each basket, consisting in an
indicator and the weight assigned to it, using the linear interpolation method on the basis of the reference levels set at the outset of
the plan (minimum, target and maximum)
16
.
362
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Here below is a presentation of the performance indicators defined for the plans activated up to now.
Without prejudice to the accounting framework already analysed in point above, set out below are the specific details of the share-
based payment plans that can be activated as part of the LTI plans launched by Banca Generali.
The number of shares due shall be valued separately for each plan year and for each of the weighted baskets linked to the objectives
of the Banking Group and the Insurance Group.
In particular, baskets tied to the performance indicator formed by the Insurance Group’s rTSR contain a market condition, whereas
the other baskets are based on achievement of performance conditions.
KPI Weight Banking-
Insurance Group
Access gate Banking
Group
Access gate Insurance
Group
KPI Banking Group KPI Insurance Group
LTI 2020 80% -20%
Total Capital Ratio
(TCR) Liquidity
Coverage Ratio (LCR)
(*)
Regulatory Solvency
ratio
1. tROE (50%,
2. adjusted EVA (50%)
1. rTSR (50%)
2. Net Holding cash
flow (50%)
LTI 2021 80% -20%
1. tROE (50%),
2. adjusted EVA (50%),
3. AUM ESG (fattore
correttivo da 0,8 a
1,2) (g)
1. rTSR (50%)
2. Net Holding cash
flow (50%),
3. indicatori ESG
(fattore correttivo da
0,8 a 1,2)
LTI 2022 80% -20%
1. tROE (40%),
2. adjusted EVA (40%),
3. AUM ESG (20%) (h)
1. rTSR (45%)
2. Net Holding cash
flow (35%),
3. indicatori ESG (20%)
LTI 2023 80% -20%
1. tROE (40%),
2. adjusted EVA (40%),
3. AUM ESG (20%) (i)
1. rTSR (55%)
2. Net Holding cash
flow (25%),
3. indicatori ESG (20%)
a) tROE (tangible – Return on equity): the ratio of net profit and average net equity, excluding net profit for the year and intangible assets.
b) Recurring income, net profit less the following one-off components: gains/losses on the proprietary securities portfolio, performance fees, one-off component of the contributions to the FITD/BRRD bank
rescue funds and the income and costs related to the extraordinary transactions completed during the reference period.
c) Adjusted EVA – Embedded value added: an indicator that expresses the value creation as the difference between recurring net profit (as defined above) and the cost of capital (Ke * average absorbed
capital).
d) Net ROE (return on equity): ratio of consolidated net result and IFRS consolidated net equity of Generali Group (excluding item “Other Comprehensive Income”).
e) rTSR – relative Total Shareholder Return: the total return on shareholder investment, calculated as the change in the market price of Generali Group shares, in which distributions or dividends reinvested
in the shares are included, as compared to a peer group of competitors included in the STOXX Euro Insurance index.
f) Net Holding cash flow (Generali Group): net cash flows available at the level of the parent company in a given period, after holding expenses and interest expense. Its main components, from a cash
perspective, are: remittances from subsidiaries; the result of centralised reinsurance; interest on borrowings; and expenses and taxes paid or reimbursed at the level of the Parent Company.
g) 2021 ESG indicators:
1) Banking Group: Assets Under Management (AUM) of retail funds and insurance and financial underlying with ESG (Environmental, Social e Governance) rating by an external provider. The parameter is
applied as a multiplier from 0.8 to 1.2 based on the period-end volume of the ESG component of AUM;
2) Insurance Group: i) ESG rating assigned by MSCI (Morgan Stanley Capital International) in the multi-line insurance & brokerage sector; ii) positioning of the score assigned by Standard & Poor’s Global
Corporate Sustainability Assessment for the banking sector. The parameter is applied as a multiplier from 0.8 to 1.2 based on the rating assigned.
h) 2022 ESG indicators:
1) Banking Group: Assets Under Management (AUM) of retail funds and insurance and financial underlying with ESG (Environmental, Social e Governance) rating by an external provider. The parameter is
applied as a multiplier from 0.8 to 1.2 based on the period-end volume of the ESG component of AUM (in a range of 8%-13% of the AUM of reference);
2) Insurance Group: i) new green and sustainable bond investments (10% weight); ii) % of women managers in management positions on total management positions (10% weight).
i) 2023 ESG indicators:
1) Banking Group: ESG Assets Under Management (AUM), i.e., the ratio of Assets Under Management to AUM invested in (i) “eligible” financial and insurance products/services pursuant to Articles 8 or 9 in
accordance with the MiFID ESG approach, and (ii) financing that, although included in portfolio management schemes or insurance policies that do not fall under Articles 8 or 9, actually qualify as pursuant
to Articles 8 or 9 with an MIFID-ESG score of >3;
2) Insurance Group: i) the CO2 Emissions Reduction Target for Group Operations, which refers to the percent reduction in CO2-equivalent emissions generated by the Group’s operations, measured
comparing the year 2025 with the 2019 baseline; ii) % of women managers in management positions on total management positions.
(*) In detail, the 2023 banking access gates were TCR >=11% and LCR >=150%, whereas the insurance access gate was Regulatory Solvency Ratio (RSR) >150%.
Market conditions are assessed solely at the assignment date on the basis of a statistical model that estimates the probable future
positioning of the rTSR for Generali shares compared to a peer group identified by the STOXX Euro Insurance Index for each plan
year. The fair value of the rights associated with this plan component is thus determined by multiplying the fair value of a Banca
Generali share at the assignment date by the level of achievement of the objective associated with the resulting positioning.
Baskets associated with the achievement of performance conditions are assessed on the basis of the fair value of a Banca Generali
share and the number of shares potentially assignable.
In this case as well, the fair value of the Banca Generali share used for evaluating the plans is determined starting from the market
stock price reported on the date of the General Shareholders’ Meeting that approves their activation, adjusted to take account of the
estimate of expected dividends that the Bank will distribute along all the time horizon, running up to the date the shares are actually
assigned.
363
Consolidated Financial Statements
The total cost of the LTI plans is therefore equal to the sum of the cost calculated for each basket on the basis of the fair value of
rights assigned, determined according to the above methods, multiplied by the number of shares that may potentially be granted in
respect of the level of achievement of the performance condition, the market condition, the likelihood that the service condition will
be met and the achievement of the minimum access gate.
The recognition through the equity reserve of the value of the plans — determined as described above — is measured pro-rata
temporis, based on the vesting conditions, i.e., the period between assignment and final maturity of the right to receive the shares,
likewise taking into account the probability that exercise conditions will not be realised for all beneficiaries.
In particular, for plans activated from 2020 onwards, the vesting period of the first instalment is three years from the year of approval
of the plan to the end of the final year of the three years of reference, whereas the vesting period of the second instalment extends
to the end of the year before that of the actual assignment of the shares (five years).
In 2023, the shares relating to the first instalment of the second 2020-2023 LTI Plan were assigned. In detail, based on the objectives
reached, a total of 42,803 shares were assigned out of a maximum number of 85,606 shares. The second instalment will be
assigned in 2025.
Overall, the total number of shares in the process of accruing for the four plans underway amounted to about 385 thousand, for a
total value of 8.7 million euros, of which 5.1 million euros already recognised through profit or loss (2.1 million euros for 2023).
No. of shares (thousands of shares) Fair value plan IFRS2 Revenue Cost 2023
Total Assigned (€ Million)
Plan 2020 2022 (assignments 2023 - 2025) 85.6 42.8 1.2 1.1 0.2
Plan 2021 2023 (assignments 2024 - 2026) 123.4 2.6 2.0 0.6
Plan 2022 2024 (assignments 2025 - 2027) 105.1 2.4 1.3 0.7
Plan 2023 2025 (assignments 2026 - 2028) 114.0 2.4 0.7 0.7
Total of in course plans 428.1 42.8 8.6 5.1 2.2
The value of treasury shares assigned during the year was 7.4 million euros, against IFRS 2 reserves totalling 6.6 million euros, with
a negative net effect on the share premium reserve of about 0.8 million euros.
New provisions were also allocated to the reserve for 11.8 million euros.
At 31 December 2023, total IFRS 2 reserves allocated therefore amounted to 23.8 million euros, of which:
• 8.3 million euros in relation to the Remuneration Policy;
• 10.9 million euros in relation to the Loyalty Programme;
• 4.4 million euros in relation to the Long Term Incentive Plans of Banca Generali;
• 0.2 million euros in relation to foreign subsidiaries.
Share-based compensation plans granted by Generali France
At 31 December 2023, share-based compensation plans, in IFRS2 scope, granted by Generali France to the employees of Generali
France group are composed by seventeen stock grant plans approved by the board on 21 December 2006, 20 December 2007, 4
December 2008, 10 December 2009, 9 December 2010, 14 March 2012, 25 June 2013, 7 March 2014, 6 March 2015, 9 March
2016, 9 March 2017, 1 March 2018, 7 March 2019, 11 March 2020, 8 March 2021, 9 March 2022 and 8 March 2023.
At 31 December 2023, the number of shares granted amounted to 6,945,455 preferred shares, of which 121.077 related to the plan
granted for 175th anniversary of foundation of Parent Company.
The plans are considered as cash-settled, for which a liability is recorded in the balance sheet equaling € 80.2 million. The charge
364
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
42. Contingent liabilities, commitments, guarantees,
pledged assets and collateral
42.1. Contingent liabilities
A contingent liability is:
• a possible obligation that arises from past events and whose existence will be confirmed only by occurrence or non- occurrence
of one or more uncertain future events not wholly within the control of the entity; or
• a present obligation that arises from past events but is not recognized because:
(i) it is not probable than an outflow of resources embodying economic benefits will be required to settle the obligation; or
(ii) the amount of the obligation cannot be measured with sufficient reliability.
As at 31 December 2023 the estimate of the contingent liabilities at Group level results as of € 16 million, related to some disputes
for which the probability of occurrence is not considered as remote, however not sufficiently material to recognise them as liabilities
42.2. Commitment
Generali Group at 31 December 2023 held outstanding commitments for a total amount of € 15,577 million, related to potential
commitments on investments, loans and other commitments.
Because part of these commitments may expire without being called, the amounts disclosed are not indicative of the actual liquidity
needs arising from these commitments.
In particular, € 10,055 million represent commitments associated with alternative investments (private equity), mainly allocated in
private equity funds which are consolidated by the Group.
Moreover, € 4,985 million refer to several investment opportunities and, in particular, to real estate investment funds and private debt
as well as residually in equities and loans, the latter mainly associated to liquidity or funding needs of the customers of the Group’s
banking operations.
Other commitments amounted totally to € 537 million and the main part refers to potential commitments of the German life
companies towards a specific German entity founded in order to protect the local policyholders if the funds already available within
42.3. Guarantees
The Group’s nominal exposure in guarantees provided towards third parties amounts to € 1,254 million, of which € 1,094 million refer
to the guarantee issued by Generali Italia in favor of banks financing Cronos Vita, € 116 million to sureties normally granted as part of
the Group’s banking business and other services provided by some Group Companies and € 36 million refer to guarantees provided
in the context of the Group’s real estate development.
Furthermore, the Group in the context of its business operations in some countries receives guarantees provided by third parties.
42.4. Pledged assets and collaterals
As at 31 December 2023, as already mentioned in the chapter Assets transferred that do not qualify for derecognition of the section
Investments, the Group has pledged € 18,561 million of its assets as collateral. In particular, € 3,021 million have been pledged to
cover loans and bonds issued, mainly related to the Group’s real estate activities, € 774 million in its reinsurance activities, € 4,216
million in repurchase agreements (REPO), € 8,195 million in securities lending operations, as well as € 1,514 million in derivatives
transactions. Residual part is related to collateral pledged other minor operations.
Furthermore, the Group has received assets as collateral for € 12,310 million, in particular for transactions in bonds and loans for €
10,134 million, in Reverse REPO for € 513 million and € 520 million in reinsurance activities. Residual part is related to transactions
in derivatives and other minor operations.
365
Consolidated Financial Statements
43. Significant non-recurring events and transactions
There are no significant non-recurring events and transactions to be reported in 2023 other than the acquisition transactions reported
in the paragraph New Entities Acquisition.
44. Significant events after 31 December 2023
There are no significant events reported after 31 December 2023 that will impact the financial statements. For further information,
please refer to the relevant paragraph of the Management Report.
45. Leasing
IFRS 16 provides presentation and disclosure requirements on leasing operations both for lessees and for lessors.
Here below details on lessees and lessors activities and related disclosures can be found.
45.1. Lessees
Group companies acting as lessees are mainly involved in real estate leases (mainly for offices, agencies and similar items), land,
company cars and other assets.
Right of use assets
Right of use assets are allocated based on their nature within specific Balance sheet items Tangible assets and, to a residual extent,
Intangible assets.
In details, below the carrying amount of right-of-use assets at the end of the reporting period by class of underlying asset can be
found.
Right of use assets by class of underlying assets subject to leasing
31/12/2023 31/12/2022
Land and buildings (self-used) subject to leasing 304 446
Properties used for own activities subject to leasing 304 393
Land and agricultural property subject to leasing 0 52
Other real rights subject to leasing 0 0
Company cars subject to leasing 25 28
Other tangible assets subject to leasing 39 45
Intangible assets suject to leasing 6 2
Total right of use assets 374 520
366
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Main changes incurred during the period are reported below by class of underlying items.
Changes incurred during the period for main asset classes subject to leasing, i.e. land and buildings and tangible assets (company
cars and other tangible assets) are reported below.
Land and buildings (self-used) subject to leasing
(€ million) 31/12/2023 31/12/2022
Net opening balance 446 443
Adjustment opening balance -49 13
Increases 54 81
Acquisitions 54 47
Capitalised expenses 0 1
Reversals of impairment losses 0 0
Positive exchange differences 0 0
Transfers from investment property 0 0
Other changes 0 33
Decreases -147 -91
Sales -28 -1
Depreciations -77 -88
Impairment losses 0 0
Negative exchange differences -2 -2
Trasfer to investments property -1 -0
Trasfer to non-current assets and disposal groups held for sale 0 0
Other changes -39 0
Net final carrying amount 304 446
Fair value of assets subject to leasing is estimated to be, besides for some rare cases, aligned to its carrying amount.
Tangible assets subject to leasing
(€ million) 31/12/2023 31/12/2022
Net opening balance 72 83
Adjustment opening balance 1 3
Increases 23 11
Acquisitions 13 5
Capitalised expenses 0 0
Reversals of impairment losses 0 0
Positive exchange differences 0 0
Other changes 10 6
Decreases -33 -25
Sales -3 -0
Depreciations -29 -24
Impairment losses 0 0
Negative exchange differences -0 -0
Trasfer to non-current assets and disposal groups held for sale 0 0
Other changes 0 0
Net final carrying amount 63 72
Focus on impairment of right of use assets
Under IFRS 16, right-of-use assets are subject to impairment requirements of IAS 36. Similar to other assets, a right-of-use-asset is
tested for impairment when impairment indicators exist. In general, if impairment indicators exist, an entity must determine whether
the right-of-use-asset can be tested on a stand-alone basis or whether it will have to be tested at a cash generating unit (CGU)
level. This will depend on whether the right-of-use-asset generates largely independent cash inflows from other assets or groups of
367
Consolidated Financial Statements
independent cash inflows and therefore they have been assessed at a CGU level. In the majority of situations, CGUs to which
right-of-use assets belong are the same ones used for impairment test of goodwill, as described in specific chapter. Therefore,
the impairment test has been performed at that level, and according to Group methodology already in place for impairment test
of goodwill. In this context, the carrying amount of a CGU is therefore calculated considering, if any, right of use assets and lease
liabilities belonging to that unit. If the recoverable amount of the CGU is less than its carrying amount, carrying amount of goodwill
represents the first asset to be reduced. Then, impairment loss is allocated to other assets of the CGU pro rata based on the carrying
amount of each asset in the unit to which the specific right of use asset belongs. For additional information on impairment test of
goodwill please refer to the chapter Goodwill.
Lease liabilities
Lease liabilities as at 31 December 2023 amounted to € 394 million, while total cash outflows of the period amounted to € 93 million.
Lease liabilities are included in item Financial liabilities at amortised cost on the Balance sheet.
Here below a maturity analysis of undiscounted lease payments can be found.
Maturity analysis of undiscounted lease liabilities
31/12/2023 31/12/2022
Maturity less than one year 107 76
Maturity between 1 and 2 years 80 65
Maturity between 2 and 3 years 60 51
Maturity between 3 and 4 years 41 41
Maturity between 4 and 5 years 34 25
Maturity more than 5 years 90 370
Total undiscounted lease liabilities 411 627
Short-term leases to which Group lessees are committed and exposed in the next reporting year amounted to € 1 million.
Expenses for lessees
Main impacts on expenses for lessees are reported below.
Expenses related to lease contracts
(€ million) 31/12/2023 31/12/2022
Interest expenses for lease payments (*) 8 9
Depreciation of properties used for own activities subject to leasing 77 88
Depreciation of tangible assets subject to leasing 15 11
Depreciation of company cars subject to leasing 14 13
Amortisation of intangible assets subject to leasing 3 2
Impairment and other expenses from assets subject to leasing 3 3
Expenses for leases of low value assets 2 2
Expenses for short term leases 6 7
Total expenses from lease contracts 129 135
(*) In this item is also included income arising from leases with negative yields.
Income from sub-leasing right-of use assets are not material for the period since it is not Group practice to undertake this kind of
business. There have been no sale and leaseback transactions during the period.
368
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
45.2. Lessors
Operating leases
Group companies act also as lessors, mainly related to real estate rentals through operating leases. The majority of investment
properties are consequently leased out for different uses. Group presents underlying assets subject to operating leases according to
the nature of the underlying asset. Please refer therefore to section Investments for additional information on investment properties.
Income from operating leases has been allocated according to the nature of the underlying item rented. Please refer to chapter
Details on economic components of investments for additional information.
Income from variable lease payments that do not depend on an index or a rate amounted are not material.
Financial leases
There are no cases of financial leases within the Group, as it is not Group practice to carry out this type of activity.
46. Other information
With reference to the transparency of public funds legislation introduced by art. 1 of Law 124/2017, paragraphs 125, 125-bis and
following, as modified by art. 35 of Legislative Decree 34/2019, converted into Law 58/2019 (so-called Decreto Crescita), during the
2023 financial year, Generali Group received public funds which are reported in the Registro Nazionale degli Aiuti di Stato pursuant
to art. 52 of Law 234/2012 and subsequent amendments and additions, to which reference is made in the specific Transparency
47. Audit and other service fees for the fiscal year
In the table below, drawn up pursuant to the article 149-duodecies of Consob Regulation, are reported the 2023 fees for auditing
and other services to Parent company’s audit and companies within audit company’s network.
Audit and other service fees
(€ thousand) KPMG Italy KPMG Network
31/12/2023 31/12/2023
Parent Company 4,421 872
Audit fee 1,027 791
Attestation service fees 3,039 40
Other services 355 40
Subsidiaries 10,632 26,170
Audit fee 6,939 22,012
Attestation service fees 3,644 3,070
Other services 50 1,088
Total 15,054 27,04 2
48. Information about climate change
Pursuant to the ESMA Public Statement of 28 October 2022, also recalled to in the Public Statement of 25 October 2023, in this
chapter describes how the assessment of climatic risks is considered in the valuation of the most material assets for the Group such
as: financial instruments, real estates and insurance contracts. For further information about climate changes please refer to the
Management Report, paragraph Challenges and opportunities of the market context.
369
Consolidated Financial Statements
Financial Instruments
Climate-related matters may be relevant as they could affect the range of potential future economic scenarios, the lender’s assessment
of significant increases in credit risk, whether a financial asset is credit impaired and/ or the measurement of expected credit losses.
Regarding pricing topic, the level of the prices of actively traded securities (e.g. listed equities and bonds) should reflect the appetite
of the market for the issuer of the security itself. Prices include any forecast of possible losses due to possible adverse economic
scenarios - climate-related matters included. For this reason, no particular adjustment is made to the prices retrieved from the
market. Concerning not actively traded securities, for which a market price is not available, the valuation is performed which taking
into account the structure of the investment, estimating the relevant factors, such as:
• the risk-free rates curve;
• the issuer specific credit curve;
• the liquidity premium.
In particular, the estimation of the credit spread curves and the liquidity premiums is performed starting from liquid prices, of the same
issuer or peers, observed in the market. As liquid prices should include futures economic scenarios – among them climate-related
matters – also prices of not actively traded securities are indirectly affected by any positive/negative opinion of the market regarding
the potential impact that climate-related matters could have on the issuer.
With reference to the parameters estimated in the calculation of ECL, as described more in detail in paragraph Basis of presentation,
it is highlighted that they are mainly based on external ratings which therefore already incorporate the market’s appreciation of
possible future losses also due to potential climate risks.
Real Estates
Internal Group Real Estate Valuation Policy follows the general principles and definitions from the RICS - Red Book published by the
Royal Institution of Chartered Surveyors (RICS) – in particular with reference to the article 2.6 - and the European Valuation Standards
- Blue Book issued by the European Group of Valuers’ Associations.
The valuation of each asset is carried out by an External Independent Valuer who, following the abovementioned global standards,
considers the Sustainability, ESG, and Climate change aspects that could affect the property value, and that must be declared by
the Asset Manager, such as:
• the presence of hazardous materials, that could have harmful impacts to the building or physical persons;
• the zone map, assessing the key physical risks (including flooding, wildfires, storms and others) for each asset location;
• the Insurance premiums paid for each building that also integrate the climate risk.
The climate risk is therefore an integral part of our valuation process, that will be further strengthen as the global regulation and the
local best practices on the topic will evolve. Generali Real Estate has launched a process of further integration of ESG topics also
in the valuation area, which will lead to greater involvement of valuation companies, a strengthening of the Valuation Policy and in
general the implementation of a shared framework.
Insurance contracts
In Property&Casualty, climate change may potentially affect (for climate change effects that have already occurred) or could affect
(for climate change effects that may arise in the future) the frequency and magnitude of insured events, in a way that is strongly
dependent on geography and peril. There is still much uncertainty on the exact extent of these effects until now and in the future,
given the volatility of the phenomena being measured. However, Generali is following rigorous practices to tackle this challenge.
Regarding insurance liabilities for Property&Casualty segment, Generali regularly monitors risk within its system of risk governance.
Materiality assessments are made regularly to verify what territory and perils may be subject to either:
• an increase in frequency and severity of known risks in specific territories and perils or
• to the emergence of new risks.
This allows the Group to adjust to changes, if any, and to put in place the necessary measures that may help in mitigating the
risk, as better outlined in the following paragraphs. Generali is exposed to natural events and to a number of hazards that may be
impacted by climate change within the territories where it operates. The main exposures are in continental Europe, where the Group
is most concentrated, although the Group also sells covers and is therefore exposed in a number of territories worldwide. The
Group regularly monitors its concentrations of risks and uses external models and actuarial techniques to assess the probability of
insured losses under the current climate. Sensitivity analyses may be conducted to evaluate the models used in a number of areas.
This allows the Group to monitor the risk within its Partial Internal Model, which is recognized under Solvency 2, and to adopt and
calibrate the most suitable mitigation strategies. Given that most policies being sold are one-year policies, and that multiyear policies
often include contractual clauses that allow flexibility, e.g. in case of losses, this approach is deemed appropriate for assessing the
current challenges of climate change. Regarding premiums, tariffs and rates are constantly monitored and updated as necessary,
also to capture chronic and acute climate related hazards, as appropriate. Technically, actuarial models and techniques are being
used in a growing number of cases, to ensure the best pricing of risk possible. Regarding claims and insurance liabilities, these are
regularly processed and estimated using up-to-date accounting and actuarial techniques, which continue to be adequate also in
case of claims tied to events that can be impacted by climate change.
370
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Climate change might affect Life business with impacts deriving from both Physical risk (losses caused by changes in the frequency
and severity of climate-related natural events), Transition risk (losses caused by variation in costs and revenues deriving from the
transition to a green economy) and Litigation risk (losses due to legal cases caused by climate matters). These risks might lead to
variations in both the market value of assets (impact on investment, leading to changes in the fair value of liabilities mainly for with
profit participation and unit-linked products) and in the future living conditions of the policyholders (impact on human life, leading to
possible changes mainly in mortality, longevity and morbidity expectations).
The level of uncertainty about the potential effects of climate change on the biometric, operating and financial variables impacting
life portfolios is extremely high. To actively and timely manage the risks connected to the climate change, the Group monitors the
exposures of its life portfolios by means of sensitivity analyses based on a set of alternative future climate scenarios characterized by
changes in both investment values and human life conditions.
Appendices
to the Notes
Newly consolidated:
1. Arab Assist For Logistic Services Company, Amman
2. Ea1 S.A.S., Paris
3. Europ Assistance Canada Services Inc., Toronto
4. Fondo Canaletto Ii, Trieste
5. Generali Befektetési Zrt, Budapest
6. Generali Investments Distribution Switzerland Gmbh, Zurich
7. Generali Investments Si, Holdinška Družba, D.O.O., Ljubljana
8. Generali Malaysia Holding Berhad, Kuala Lumpur
9. Gre Sc Italy, Trieste
10. Gredif Ii Ita - Generali Real Estate Debt Investment Fund Italy Ii, Trieste
11. Gulf Assist W.L.L., Manama
12. Oppci Residential Living Fund, Paris
13. Sce Château La Pointe, Paris
14. Sci Issy Les Moulineaux, Paris
15. Sosteneo Società Di Gestione Del Risparmio S.P.A., Milan
16. Urbe Retail Real Estate S.R.L., Rome
17. Vivre & Domicile, Lyon
Change in the consolidation area*
* Consolidation area consists of companies consolidated “line by line”.
372
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Company disposed of/wound up/merged in:
1. Advance Mediação De Seguros, Unipessoal Lda, Lisbon
2. Am Sechste Immobilien Ag & Co. Kg, Aachen - Merged in AM Erste Immobilien AG & Co. KG.
3. Bcc Assicurazioni S.P.A., Milan
4. Bcc Vita S.P.A Compagnia Di Assicurazioni Vita, Milan
5. Cattolica Assicurazioni S.P.A., Verona - Merged in Genertel S.p.A.
6. Cattolica Services Società Consortile Per Azioni, Verona - Merged in Generali Business Solutions S.c.p.A.
7. Dwp Partnership, Bangkok
8. Easa Training Academy (Pty) Ltd, Constantia Kloof
9. Elics Services 33170 Sarl, Gradignan
10. Elics Services 69000 S.A.R.L., Lyon - Merged in Vivre & Domicile
11. Elics Services 74600 Sarl, Annecy - Merged in Elics Services 83000 S.a.r.l.
12. Europ Assistance Canada Services Inc, Thornhill - Ontario
13. Europ Assistance Worldwide Services (South Africa) (Pty) Ltd, Midrand
14.
Europ Assistance Yardım Ve Destek Hizmetleri Ticaret Anonim
Ş
irketi, Istanbul
15. Frescobaldi S.À.R.L., Luxembourg - Merged in Generali European Real Estate Investments S.A.
16. Gdpk-Fi1 Gmbh & Co. Offene Investment Kg, Cologne - Merged in Generali Deutschland AG.
17. Generali Business Solutions S.C.P.A., Trieste - Merged in Generali Italia S.p.A.
18. Generali Deutschland Pensionskasse Ag, Aachen
19. Gid Fonds Claot, Cologne
20. Gid-Fonds Alaet Ii, Cologne
21. La Médicale Sa, Paris - Merged in L'Equité S.A. Cie d'Assurances et Réass.contre les risques de toute nature.
22. Pcs Praha Center Spol.S.R.O., Prague
23. Saxon Land B.V., Amsterdam
24. Sci Commerces Regions, Paris
25. Sci Parcolog Combs La Ville 1, Paris - Merged in SC Generali Logistique.
26. Solitaire Real Estate, A.S., Prague
27. Trip Mate, Inc., Topeka - Merged in Customized Services Administrators Inc.
28. Vera Assicurazioni S.P.A., Verona
29. Vera Financial Designated Activity Company, Dublin
30. Vera Protezione S.P.A., Verona
31. Vera Vita S.P.A., Verona
Consolidated Financial Statements
373
Participations in controlled entities
Company Registered
office
Country
Operational
headquarter
Country
(1)
Method
(2)
Activity
(3)
Relationship
type
(4)
% Direct
and indirect
shareholding
Group ratio
(5)
% Voting rights at
the shareholders’
meeting
(6)
% of
consolidation
3 Banken Generali GLBond Spezialfonds 008 G 11 1 100.00 99.95 100.00
3 Banken-Generali - GEN4A Spezialfonds 008 G 11 1 100.00 99.95 100.00
3 Banken-Generali - GNLStock 008 G 11 1 100.00 99.95 100.00
3 Banken-Generali-GHStock 008 G 11 1 100.00 99.95 100.00
3 Banken-Generali-GLStock 008 G 11 1 100.00 99.95 100.00
3 Banken-Generali-GSBond 008 G 11 1 100.00 99.95 100.00
Acredité s.r.o. 275 G 11 1 100.00 100.00 100.00
Advancecare – Gestão de Serviços de Saúde, S.A. 055 G 11 1 100.00 99.99 100.00
ADVOCARD Rechtsschutzversicherung AG 094 G 2 1 100.00 100.00 100.00
AFP Planvital S.A. 015 G 11 1 86.11 40.95 100.00
Agricola San Giorgio S.p.A. 086 G 11 1 100.00 100.00 100.00
Akcionarsko društvo za osiguranje Generali Osiguranje Montenegro 290 G 3 1 100.00 100.00 100.00
Akcionarsko društvo za osiguranje Generali Osiguranje Srbija, Beograd 289 G 3 1 100.00 100.00 100.00
Akcionarsko društvo za reosiguranje Generali Reosiguranje Srbija,
Beograd
289 G 6 1 100.00 100.00 100.00
А
kci
о
n
а
rsk
о
društv
о
z
а
upravljanje dobrovoljnim penzijskim fondom
Generali
289 G 11 1 100.00 100.00 100.00
Alfuturo Servizi Assicurativi S.r.l. 086 G 11 1 100.00 100.00 100.00
Alleanza Assicurazioni S.p.A. 086 G 1 1 100.00 100.00 100.00
Allgemeine Immobilien-Verwaltungs GmbH & Co. KG 008 G 10 1 100.00 99.95 100.00
Alto 1 S.à r.l. 092 G 11 1 100.00 95.99 100.00
AM Erste Immobilien AG & Co. KG 094 G 10 1 100.00 100.00 100.00
AM Vers Erste Immobilien AG & Co. KG 094 G 10 1 100.00 100.00 100.00
Andron RE 086 G 11 1 100.00 100.00 100.00
Aperture Investors France SAS 029 G 8 1 100.00 69.76 100.00
Aperture Investors UK, Ltd 031 G 8 1 100.00 69.76 100.00
Aperture Investors, LLC 069 G 8 1 70.00 69.76 100.00
Arab Assist for Logistic Services Company 122 G 11 1 100.00 74.62 100.00
Asesoria e Inversiones Los Olmos SA 015 G 11 1 47.62 47.55 100.00
Assicurazioni Generali S.p.A. 086 G 1 1 1.09 100.00 100.00
ATLAS Dienstleistungen für Vermögensberatung GmbH 094 G 11 1 74.00 74.00 100.00
Axis Retail Partners S.p.A. 086 G 10 1 100.00 99.66 100.00
Banca Generali S.p.A. 086 G 7 1 51.46 51.32 100.00
BAWAG P.S.K. Versicherung AG 008 G 2 1 75.00 74.96 100.00
BAWAG PSK Spezial 6 008 G 11 1 100.00 74.96 100.00
Berlin Franzosische 53-55 S.à r.l. 092 G 10 1 100.00 98.60 100.00
BG (Suisse) SA 071 G 7 1 100.00 51.32 100.00
BG Fund Management Luxembourg S.A. 092 G 11 1 100.00 51.32 100.00
BG Valeur S.A. 071 G 11 1 90.10 46.24 100.00
Caja de Ahorro y Seguro S.A. 006 G 4 1 90.00 89.96 100.00
Caja de Seguros S.A. 006 G 3 1 100.00 90.05 100.00
Cajamar Seguros Generales, S.A. de Seguros y Reaseguros 067 G 2 1 50.00 50.00 100.00
374
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Participations in controlled entities
Company Registered
office
Country
Operational
headquarter
Country
(1)
Method
(2)
Activity
(3)
Relationship
type
(4)
% Direct
and indirect
shareholding
Group ratio
(5)
% Voting rights at
the shareholders’
meeting
(6)
% of
consolidation
Cajamar Vida S.A. de Seguros y Reaseguros 067 G 2 1 50.00 50.00 100.00
Car Care Consult Versicherungsvermittlung GmbH 008 G 11 1 100.00 99.95 100.00
Cattolica Agricola Società Agricola a Responsabilità Limitata 086 G 11 1 100.00 100.00 100.00
Cattolica Beni Immobili S.r.l. 086 G 11 1 100.00 100.00 100.00
CattRe S.A. 092 G 5 1 100.00 100.00 100.00
CENTRAL Zweite Immobilien AG & Co. KG 094 G 10 1 100.00 100.00 100.00
CityLife S.p.A. 086 G 10 1 100.00 100.00 100.00
CityLife Sviluppo 2 S.r.l. 086 G 10 1 100.00 100.00 100.00
Cleha Invest Sp. z o.o. 054 G 10 1 100.00 100.00 100.00
Cofifo S.A.S. 029 G 9 1 100.00 98.60 100.00
Cofilserv' 029 G 11 1 100.00 80.00 100.00
Cologne 1 S.à.r.l. 092 G 11 1 100.00 96.37 100.00
Cologne Zeppelinhaus S.à r.l. 092 G 11 1 100.00 99.56 100.00
Corbas SCI 029 G 11 1 100.00 96.18 100.00
Core+ Fund GP 092 G 11 1 100.00 99.66 100.00
Corelli S.à.r.l. 092 G 9 1 100.00 99.40 100.00
Cosmos Finanzservice GmbH 094 G 11 1 100.00 100.00 100.00
Cosmos Lebensversicherungs Aktiengesellschaft 094 G 2 1 100.00 100.00 100.00
Cosmos Versicherung Aktiengesellschaft 094 G 2 1 100.00 100.00 100.00
Customized Services Administrators Inc. 069 G 11 1 100.00 99.99 100.00
D.A.S. Difesa Automobilistica Sinistri - S.p.A. di Assicurazione 086 G 1 1 50.01 50.01 100.00
D.A.S. Legal Services S.r.l. 086 G 11 1 100.00 50.01 100.00
DBB Vermögensverwaltung GmbH & Co. KG 094 G 10 1 100.00 100.00 100.00
Dc De Burght B.V. 050 G 11 1 100.00 96.18 100.00
Deutsche Bausparkasse Badenia Aktiengesellschaft 094 G 7 1 100.00 100.00 100.00
Dialog Lebensversicherungs-Aktiengesellschaft 094 G 2 1 100.00 100.00 100.00
Dialog Versicherung Aktiengesellschaft 094 G 2 1 100.00 100.00 100.00
EA1 S.A.S. 029 G 11 1 100.00 99.99 100.00
Elics Services 06700 Sarl 029 G 11 1 100.00 80.00 100.00
Elics Services 13100 Sarl 029 G 11 1 100.00 80.00 100.00
Elics Services 44100 Sarl 029 G 11 1 100.00 80.00 100.00
Elics Services 75015 Sarl 029 G 11 1 100.00 80.00 100.00
Elics Services 78600 Sarl 029 G 11 1 100.00 80.00 100.00
Elics Services 83000 S.a.r.l. 029 G 11 1 100.00 80.00 100.00
Elics Services 92330 Sarl 029 G 11 1 100.00 80.00 100.00
Elics Services Holding SAS 029 G 11 1 80.00 80.00 100.00
ENVIVAS Krankenversicherung Aktiengesellschaft 094 G 2 1 100.00 100.00 100.00
Esumédica - Prestação de Cuidados Médicos, S.A. 055 G 11 1 100.00 99.99 100.00
Europ Assistance - Serviços de Assistencia Personalizados S.A. 055 G 11 1 99.98 99.97 100.00
Europ Assistance (Suisse) Assurances S.A. 071 G 3 1 100.00 70.00 100.00
Europ Assistance (Suisse) Holding S.A. 071 G 4 1 70.00 70.00 100.00
Consolidated Financial Statements
375
Participations in controlled entities
Company Registered
office
Country
Operational
headquarter
Country
(1)
Method
(2)
Activity
(3)
Relationship
type
(4)
% Direct
and indirect
shareholding
Group ratio
(5)
% Voting rights at
the shareholders’
meeting
(6)
% of
consolidation
Europ Assistance (Suisse) S.A. 071 G 11 1 100.00 70.00 100.00
Europ Assistance (Thailand) Company Limited 072 G 11 1 100.00 99.99 100.00
Europ Assistance Argentina S.A. 006 G 11 1 100.00 95.63 100.00
Europ Assistance Australia Pty Ltd 007 G 11 1 100.00 99.99 100.00
Europ Assistance Austria Holding GmbH 008 G 4 1 100.00 99.97 100.00
Europ Assistance Brokerage Solutions S.a.r.l. 029 G 11 1 100.00 99.99 100.00
Europ Assistance Canada Services Inc. 013 G 11 1 100.00 99.99 100.00
Europ Assistance Clearing Center GIE 029 G 11 1 100.00 99.99 100.00
Europ Assistance Gesellschaft mbH 008 G 11 1 100.00 99.97 100.00
Europ Assistance Holding S.A.S. 029 G 4 1 100.00 99.99 100.00
Europ Assistance India Private Ltd 114 G 11 1 100.00 99.99 100.00
Europ Assistance Italia S.p.A. 086 G 1 1 100.00 100.00 100.00
Europ Assistance Magyarorszag Kft 077 G 11 1 100.00 100.00 100.00
Europ Assistance Malaysia SDN. BHD. 106 G 11 1 100.00 99.99 100.00
Europ Assistance North America, Inc. 069 G 4 1 100.00 99.99 100.00
EA French Polynesia 029 G 11 1 100.00 99.99 100.00
Europ Assistance Pacifique 253 G 11 1 100.00 99.99 100.00
Europ Assistance Polska Sp.zo.o. 054 G 11 1 100.00 99.99 100.00
Europ Assistance S.A. 029 G 2 1 100.00 99.99 100.00
Europ Assistance s.r.o. 275 G 11 1 100.00 100.00 100.00
Europ Assistance SA 015 G 11 1 100.00 99.99 100.00
Europ Assistance Service Greece Single Member Private Company 032 G 11 1 100.00 99.99 100.00
Europ Assistance Services GmbH 094 G 11 1 100.00 99.99 100.00
Europ Assistance Services S.A. 009 G 11 1 100.00 99.99 100.00
Europ Assistance Servicios Integrales de Gestion, S.A. 067 G 11 1 100.00 99.99 100.00
Europ Assistance Servisno Podjetje d.o.o. 260 G 11 1 100.00 99.99 100.00
Europ Assistance Singapore Pte. Ltd 147 G 11 1 100.00 99.99 100.00
Europ Assistance Trade S.p.A. 086 G 11 1 100.00 100.00 100.00
Europ Assistance Travel Assistance Services (Beijing) Co Ltd 016 G 11 1 100.00 99.99 100.00
Europ Assistance VAI S.p.A. 086 G 11 1 100.00 100.00 100.00
Europ Servicios S.p.A. 015 G 11 1 100.00 99.99 100.00
Európai Utazási Biztosító Zrt. 077 G 2 1 74.00 70.75 100.00
Europäische Reiseversicherung Aktiengesellschaft 008 G 2 1 74.99 74.97 100.00
Fondo Andromaca 086 G 10 1 100.00 100.00 100.00
Fondo Canaletto 086 G 10 1 100.00 95.99 100.00
Fondo Canaletto II 086 G 10 1 100.00 99.99 100.00
Fondo Donizetti 086 G 10 1 100.00 100.00 100.00
Fondo Euripide 086 G 10 1 79.00 79.00 100.00
Fondo Girolamo 086 G 10 1 83.67 83.67 100.00
Fondo Immobiliare Mantegna 086 G 10 1 100.00 99.56 100.00
Fondo Immobiliare Mascagni 086 G 10 1 100.00 100.00 100.00
376
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Participations in controlled entities
Company Registered
office
Country
Operational
headquarter
Country
(1)
Method
(2)
Activity
(3)
Relationship
type
(4)
% Direct
and indirect
shareholding
Group ratio
(5)
% Voting rights at
the shareholders’
meeting
(6)
% of
consolidation
Fondo Immobiliare Schubert - comparto 1 086 G 10 1 100.00 96.45 100.00
Fondo Immobiliare Tiepolo 086 G 10 1 100.00 99.45 100.00
Fondo Immobiliare Toscanini 086 G 10 1 100.00 99.98 100.00
Fondo Innovazione Salute 086 G 10 1 81.47 81.47 100.00
Fondo Living Fund Italia 086 G 11 1 100.00 100.00 100.00
Fondo Perseide 086 G 10 1 84.52 84.52 100.00
Fondo San Zeno 086 G 10 1 67.9 0 67.90 100.00
Fondo Scarlatti - Fondo Immobiliare chiuso 086 G 10 1 82.87 82.83 100.00
Fortuna Lebens-Versicherungs AG 090 G 3 1 100.00 99.97 100.00
Fortuna Rechtsschutz-Versicherung-Gesellschaft AG 071 G 3 1 100.00 99.97 100.00
FTW Company Limited 072 G 4 1 90.57 90.43 100.00
Future Generali India Insurance Company Ltd 114 G 3 1 99.49 73.88 100.00
Future Generali India Life Insurance Company Ltd 114 G 3 1 74.00 73.88 100.00
Gconcierges S.A.S. 029 G 11 1 100.00 99.99 100.00
Gdansk Logistics 1 054 G 11 1 100.00 96.18 100.00
GDE Construcciones, S.L 067 G 11 1 100.00 99.99 100.00
GEDL-FI1 GmbH & Co. offene Investment KG 094 G 11 1 100.00 100.00 100.00
GEIH France OPCI 029 G 11 1 100.00 95.99 100.00
GEII Rivoli Holding SAS 029 G 10 1 100.00 95.99 100.00
Genagricola 1851 S.p.A. 086 G 11 1 100.00 100.00 100.00
General Securities Corporation of North America 069 G 9 1 100.00 99.47 100.00
Generali (Schweiz) Holding AG 071 G 4 1 100.00 99.97 100.00
Generali Alapkezel
ő
Zártkör
ű
en M
ű
köd
ő
Részvénytársaság
077 G 8 1 100.00 100.00 100.00
Generali Alpha Corp. 069 G 9 1 100.00 99.66 100.00
Generali Asia N.V. 050 G 4 1 100.00 99.84 100.00
Generali Assurances Générales SA 071 G 3 1 99.98 99.95 100.00
Generali Bank AG 008 G 7 1 100.00 99.95 100.00
Generali Befektetési Zrt 077 G 10 1 100.00 100.00 100.00
Generali Beteiligungs- und Vermögensverwaltung GmbH 008 G 4 1 100.00 99.95 100.00
Generali Beteiligungs-GmbH 094 G 4 1 100.00 100.00 100.00
Generali Beteiligungsverwaltung GmbH 008 G 4 1 100.00 99.95 100.00
Generali Biztosító Zrt. 077 G 2 1 100.00 100.00 100.00
Generali Brasil Seguros S.A. 011 G 3 1 100.00 100.00 100.00
Generali CEE Fund 040 G 11 1 100.00 99.77 100.00
Generali CEE Holding B.V. 050 275 G 4 1 100.00 100.00 100.00
Generali
Č
eská distribuce, a.s.
275 G 11 1 100.00 100.00 100.00
Generali
Č
eská Pojiš
ť
ovna a.s.
275 G 2 1 100.00 100.00 100.00
Generali China Assets Management Company Co. Ltd 016 G 8 1 80.00 40.00 100.00
Generali China Life Insurance Co. Ltd 016 G 3 1 50.00 50.00 100.00
Generali Core High Street Retail Fund 092 G 10 1 100.00 99.56 100.00
Generali Core+ Fund GP 092 G 11 1 96.87 96.45 100.00
Consolidated Financial Statements
377
Participations in controlled entities
Company Registered
office
Country
Operational
headquarter
Country
(1)
Method
(2)
Activity
(3)
Relationship
type
(4)
% Direct
and indirect
shareholding
Group ratio
(5)
% Voting rights at
the shareholders’
meeting
(6)
% of
consolidation
Generali Core+ Soparfi S.à r.l. 092 G 11 1 100.00 96.45 100.00
Generali Deutschland AG 094 G 5 1 100.00 100.00 100.00
Generali Deutschland Finanzierungs-GmbH 094 G 10 1 100.00 100.00 100.00
Generali Deutschland Gesellschaft für bAV mbH 094 G 11 1 100.00 100.00 100.00
Generali Deutschland Krankenversicherung AG 094 G 2 1 100.00 100.00 100.00
Generali Deutschland Lebensversicherung AG 094 G 2 1 100.00 100.00 100.00
Generali Deutschland Services GmbH 094 G 11 1 100.00 100.00 100.00
Generali Deutschland Versicherung AG 094 G 2 1 100.00 100.00 100.00
Generali Ecuador Compañía de Seguros S.A. 024 G 3 1 52.82 52.82 100.00
Generali EM Fund 040 G 11 1 100.00 99.81 100.00
Generali Engagement Solutions GmbH 094 G 11 1 100.00 100.00 100.00
Generali España Holding de Entidades de Seguros S.A. 067 G 4 1 100.00 100.00 100.00
Generali España, S.A. de Seguros y Reaseguros 067 G 2 1 99.91 99.90 100.00
Generali Europe Income Holding S.A. 092 G 8 1 96.81 95.99 100.00
Generali European Real Estate Income Investments GmbH & Co. KG 094 G 10 1 100.00 100.00 100.00
Generali European Real Estate Investments S.A. 092 G 8 1 100.00 99.40 100.00
Generali European Retail Investments Holdings S.A. 092 G 8 1 100.00 99.40 100.00
Generali Finance spólka z ogranic on
ą
odpowiedzialno
ś
ci
ą
054 G 11 1 100.00 100.00 100.00
Generali Financial Asia Limited 103 G 9 1 100.00 100.00 100.00
Generali Financial Holding FCP-FIS - Sub-Fund 2 092 G 11 1 100.00 99.81 100.00
Generali Finanz Service GmbH 094 G 11 1 100.00 100.00 100.00
Generali France S.A. 029 G 4 1 98.65 98.60 100.00
Generali Global Assistance Inc. 069 G 11 1 100.00 99.99 100.00
Generali Health Solutions GmbH 094 G 11 1 100.00 100.00 100.00
Generali Hellas Insurance Company S.A. 032 G 2 1 99.99 99.99 100.00
Generali High Street Retail Sàrl 092 G 11 1 100.00 99.56 100.00
Generali Horizon B.V. 050 G 9 1 100.00 99.84 100.00
Generali IARD S.A. 029 G 2 1 100.00 98.60 100.00
Generali Immobilien GmbH 008 G 10 1 100.00 99.95 100.00
Generali Insurance (Thailand) Public Co. Ltd 072 G 3 1 90.86 88.84 100.00
Generali Insurance AD 012 G 2 1 99.96 99.96 100.00
Generali Insurance Agency Company Limited 016 G 11 1 100.00 100.00 100.00
Generali Insurance Asset Management S.p.A. Società di Gestione del
Risparmio
086 G 8 1 100.00 99.66 100.00
Generali Insurance Malaysia Berhad 106 G 3 1 100.00 69.89 100.00
Generali Investments CEE, Investi
č
ní Spole
č
nost, a.s.
275 G 8 1 100.00 100.00 100.00
Generali Investments Distribution Switzerland GmbH 071 G 11 1 100.00 99.66 100.00
Generali Investments Holding S.p.A. 086 G 9 1 100.00 99.66 100.00
Generali Investments Luxembourg S.A. 092 G 8 1 100.00 99.66 100.00
Generali Investments Partners S.p.A. Società di Gestione del Risparmio 086 G 8 1 100.00 99.89 100.00
Generali Investments Schweiz AG 071 G 8 1 100.00 99.66 100.00
Generali Investments SI, holdinška družba, d.o.o. 260 G 9 1 100.00 100.00 100.00
378
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Participations in controlled entities
Company Registered
office
Country
Operational
headquarter
Country
(1)
Method
(2)
Activity
(3)
Relationship
type
(4)
% Direct
and indirect
shareholding
Group ratio
(5)
% Voting rights at
the shareholders’
meeting
(6)
% of
consolidation
Generali Investments Towarzystwo Funduszy Inwestycyjnych S.A. 054 G 8 1 100.00 100.00 100.00
Generali Investments, družba za upravljanje, d.o.o. 260 G 8 1 100.00 100.00 100.00
Generali Italia S.p.A. 086 G 1 1 100.00 100.00 100.00
Generali Jeniot S.p.A. 086 G 11 1 100.00 100.00 100.00
Generali Life (Hong Kong) Limited 103 G 3 1 100.00 99.84 100.00
Generali Life Assurance (Thailand) Public Co. Ltd 072 G 3 1 94.25 92.08 100.00
Generali Life Assurance Philippines, Inc. 027 G 3 1 100.00 99.84 100.00
Generali Life Insurance Malaysia Berhad 106 G 3 1 100.00 69.89 100.00
Generali Luxembourg S.A. 092 G 2 1 100.00 98.60 100.00
Generali Malaysia Holding Berhad 106 G 9 1 70.00 69.89 100.00
Generali North American Holding 1 S.A. 092 G 11 1 100.00 98.60 100.00
Generali North American Holding 2 S.A. 092 G 11 1 100.00 99.89 100.00
Generali North American Holding S.A. 092 G 8 1 100.00 100.00 100.00
Generali Northern America Real Estate Investments GmbH & Co. KG 094 G 10 1 99.89 99.89 100.00
Generali Operations Service Platform S.r.l. 086 G 11 1 95.00 95.00 100.00
Generali Osiguranje d.d. 261 G 3 1 100.00 100.00 100.00
Generali Participations Netherlands N.V. 050 G 4 1 100.00 99.84 100.00
Generali Pensions- und SicherungsManagement GmbH 094 G 11 1 100.00 100.00 100.00
Generali Pensionsfonds AG 094 G 2 1 100.00 100.00 100.00
Generali penzijní spole
č
nost, a.s.
275 G 11 1 100.00 100.00 100.00
Generali Personenversicherungen AG 071 G 3 1 100.00 99.97 100.00
Generali Powszechne Towarzystwo Emerytalne S.A. 054 G 11 1 100.00 100.00 100.00
Generali Real Asset Multi-Manager 092 G 10 1 100.00 99.66 100.00
Generali Real Estate Asset Repositioning S.A. 092 G 11 1 100.00 99.45 100.00
Generali Real Estate Debt Investment Fund II Scsp Raif 092 G 11 1 100.00 99.83 100.00
Generali Real Estate Debt Investment Fund Italy (GREDIF ITA) 086 G 10 1 100.00 85.18 100.00
Generali Real Estate Debt Investment Fund S.C.Sp RAIF 092 G 11 1 85.55 85.18 100.00
Generali Real Estate Fund CEE a.s., investi
č
ní fond
275 G 9 1 100.00 100.00 100.00
Generali Real Estate Living Investment Fund 092 G 11 1 100.00 100.00 100.00
Generali Real Estate Logistics Fund S.C.S. SICAV-RAIF 092 G 10 1 96.89 96.18 100.00
Generali Real Estate S.p.A. 086 G 10 1 100.00 99.66 100.00
Generali Real Estate S.p.A. SGR 086 G 8 1 100.00 99.66 100.00
Generali Reaumur S.C. 029 G 10 1 100.00 98.60 100.00
Generali Retraite S.A. 029 G 2 1 100.00 98.60 100.00
Generali Romania Asigurare Reasigurare S.A. 061 G 2 1 99.97 99.97 100.00
Generali Saxon Land Development Company Ltd 031 G 11 1 100.00 99.58 100.00
Generali SCF Sàrl 092 G 11 1 100.00 99.60 100.00
Generali Seguros, S.A. 055 G 2 1 100.00 100.00 100.00
Generali Services Pte. Ltd. 147 G 11 1 100.00 99.84 100.00
Generali Shopping Centre Fund GP S.à r.l. 092 G 11 1 100.00 99.66 100.00
Generali Shopping Centre Fund S.C.S. SICAV-SIF 092 G 11 1 100.00 99.60 100.00
Consolidated Financial Statements
379
Participations in controlled entities
Company Registered
office
Country
Operational
headquarter
Country
(1)
Method
(2)
Activity
(3)
Relationship
type
(4)
% Direct
and indirect
shareholding
Group ratio
(5)
% Voting rights at
the shareholders’
meeting
(6)
% of
consolidation
Generali Sigorta A.S. 076 G 3 1 100.00 99.84 100.00
Generali Slovenská distribúcia, a.s. 276 G 11 1 100.00 100.00 100.00
Generali Societate de Administrare a Fondurilor de Pensii Private S.A. 061 G 11 1 100.00 100.00 100.00
Generali Towarzystwo Ubezpiecze
ń
Spółka Akcyjna
054 G 2 1 100.00 100.00 100.00
Generali Türkiye Holding B.V. 050 G 4 1 100.00 99.84 100.00
Generali US Fund 040 G 11 1 100.00 99.87 100.00
Generali Versicherung AG 008 G 2 1 100.00 99.95 100.00
Generali Vie S.A. 029 G 2 1 100.00 98.60 100.00
Generali Vietnam Life Insurance Limited Liability Company 062 G 3 1 100.00 100.00 100.00
Generali WE Fund 040 G 11 1 100.00 98.86 100.00
Generali Welion S.c.a.r.l. 086 G 11 1 100.00 100.00 100.00
Generali Zakrila Medical and Dental Centre EOOD 012 G 11 1 100.00 99.96 100.00
Generali zavarovalnica d.d. Ljubljana 260 G 2 1 100.00 100.00 100.00
Generali
Ż
ycie Towarzystwo Ubezpiecze
ń
Spółka Akcyjna
054 G 2 1 100.00 100.00 100.00
Generali-Ingatlan Vagyonkezel
ő
és Szolgáltató Kft.
077 G 10 1 100.00 100.00 100.00
GenerFid S.p.A. 086 G 11 1 100.00 51.32 100.00
Genertel Biztosító Zrt. 077 G 2 1 100.00 100.00 100.00
Genertel S.p.A. 086 G 1 1 100.00 100.00 100.00
Genertellife S.p.A. 086 G 1 1 100.00 100.00 100.00
Genirland Limited 040 G 4 1 100.00 99.84 100.00
Gentum Nr. 1 094 G 11 1 100.00 100.00 100.00
GFA Caraïbes 029 G 2 1 100.00 98.60 100.00
GID Fonds AAREC 094 G 11 1 100.00 100.00 100.00
GID Fonds ALAOT 094 G 11 1 100.00 100.00 100.00
GID Fonds ALRET 094 G 11 1 100.00 100.00 100.00
GID Fonds AMLRET 094 G 11 1 100.00 100.00 100.00
GID Fonds AVAOT 094 G 11 1 100.00 100.00 100.00
GID Fonds AVAOT II 094 G 11 1 100.00 100.00 100.00
GID Fonds AVRET 094 G 11 1 100.00 100.00 100.00
GID Fonds CEAOT 094 G 11 1 100.00 100.00 100.00
GID Fonds CERET 094 G 11 1 100.00 100.00 100.00
GID Fonds DLAET 094 G 11 1 100.00 100.00 100.00
GID Fonds DLRET 094 G 11 1 100.00 100.00 100.00
GID Fonds GDRET 094 G 11 1 100.00 100.00 100.00
GID Fonds GVMET 094 G 11 1 100.00 100.00 100.00
GID Fonds GVRET 094 G 11 1 100.00 100.00 100.00
GID-Fonds AAINF 094 G 11 1 100.00 100.00 100.00
GID-Fonds ALAET 094 G 11 1 100.00 100.00 100.00
GID-Fonds CLRET 094 G 11 1 100.00 100.00 100.00
GID-Fonds CLRET 2 094 G 11 1 100.00 100.00 100.00
GID-Fonds GPRET 094 G 11 1 94.57 94.57 100.00
380
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Participations in controlled entities
Company Registered
office
Country
Operational
headquarter
Country
(1)
Method
(2)
Activity
(3)
Relationship
type
(4)
% Direct
and indirect
shareholding
Group ratio
(5)
% Voting rights at
the shareholders’
meeting
(6)
% of
consolidation
GIE-Fonds AADMSE 094 G 11 1 90.18 90.18 100.00
GIE-Fonds AASBWA 094 G 11 1 100.00 100.00 100.00
GLL AMB Generali Bankcenter S.à.r.l. 092 G 11 1 100.00 100.00 100.00
GLL AMB Generali Cross-Border Property Fund FCP 092 G 9 1 100.00 100.00 100.00
GMMI, Inc. 069 G 11 1 100.00 99.99 100.00
GNAREH 1 Farragut LLC 069 G 10 1 100.00 99.47 100.00
GNAREI 1 Farragut LLC 069 G 10 1 100.00 99.47 100.00
GP Reinsurance EAD 012 G 5 1 100.00 100.00 100.00
GRE Barcelona Retail 1 SL 067 G 10 1 100.00 99.56 100.00
GRE PAN EU London 1 S.à r.l. 092 G 10 1 100.00 95.99 100.00
GRE PAN-EU Barcelona, S.L. 067 G 11 1 100.00 95.99 100.00
GRE PAN-EU Berlin 2 S.à r.l. 092 G 10 1 100.00 95.99 100.00
GRE PAN-EU Brussels 1 s.p.r.l. 009 G 11 1 100.00 95.99 100.00
GRE PANEU Cœur Marais SCI 029 G 10 1 100.00 95.99 100.00
GRE PANEU Fhive SCI 029 G 10 1 100.00 95.99 100.00
GRE PAN-EU Frankfurt 1 S.à r.l. 092 G 10 1 100.00 95.99 100.00
GRE PAN-EU FRANKFURT 3 Sarl 092 G 10 1 100.00 95.99 100.00
GRE PAN-EU Hamburg 1 S.à r.l. 092 G 9 1 100.00 95.99 100.00
GRE PAN-EU Hamburg 2 S.à r.l. 092 G 9 1 100.00 95.99 100.00
GRE PAN-EU Jeruzalemská s.r.o. 275 G 11 1 100.00 99.45 100.00
GRE PAN-EU Lisbon 1, S.A. 055 G 11 1 100.00 95.99 100.00
GRE PAN-EU Lisbon Office Oriente, S.A. 055 G 11 1 100.00 95.99 100.00
GRE PAN-EU LUXEMBOURG 1 Sàrl 092 G 10 1 100.00 99.56 100.00
GRE PAN-EU Madrid 2 SL 067 G 11 1 100.00 95.99 100.00
GRE PAN-EU Munich 1 S.à r.l. 092 G 9 1 100.00 95.99 100.00
GRE PAN-EU Prague 1 s.r.o. 275 G 11 1 100.00 95.99 100.00
GRE SC Italy 086 G 11 1 100.00 100.00 100.00
GRE SICAF Comparto 1 086 G 10 1 100.00 96.18 100.00
GREDIF Finance Sarl 092 G 10 1 100.00 85.18 100.00
GREDIF II ITA - GENERALI REAL ESTATE DEBT INVESTMENT FUND
ITALY II
086 G 10 1 100.00 99.83 100.00
Green Point Offices s.r.o. 276 G 10 1 100.00 100.00 100.00
GRELIF DUTCH S.à r.l. 092 G 11 1 100.00 96.18 100.00
GRELIF SPV1 S.à r.l. 092 G 11 1 100.00 96.18 100.00
Grundstücksgesellschaft Einkaufszentrum Louisen-Center Bad
Homburg mbH & Co. KG
094 G 10 1 100.00 100.00 100.00
Grupo Generali España, A.I.E. 067 G 11 1 100.00 99.90 100.00
Gulf Assist W.L.L. 169 G 11 1 74.62 74.62 100.00
GW Beta B.V. 050 G 4 1 100.00 99.90 100.00
Hermes Sociedad Limitada de Servicios Inmobiliarios y Generales 067 G 10 1 100.00 99.90 100.00
HSR Verpachtung GmbH 008 G 10 1 100.00 84.96 100.00
Humadom S.a.r.l. 029 G 11 1 100.00 80.00 100.00
Consolidated Financial Statements
381
Participations in controlled entities
Company Registered
office
Country
Operational
headquarter
Country
(1)
Method
(2)
Activity
(3)
Relationship
type
(4)
% Direct
and indirect
shareholding
Group ratio
(5)
% Voting rights at
the shareholders’
meeting
(6)
% of
consolidation
IDEE s.r.o. 275 G 10 1 100.00 100.00 100.00
Immobiliere Commerciale des Indes Orientales IMMOCIO 029 G 10 1 100.00 98.60 100.00
Infranity S.A.S. 029 G 8 1 51.00 50.83 100.00
IRC Investments LLC 262 G 4 1 100.00 99.90 100.00
IWF Holding Company Ltd 072 G 4 1 99.98 94.51 100.00
Jeam S.A.S. 029 G 11 1 100.00 80.00 100.00
KAG Holding Company Ltd 072 G 4 1 100.00 95.36 100.00
Købmagergade 39 ApS 021 G 11 1 100.00 95.99 100.00
Krakow Logistics 2 054 G 11 1 100.00 96.18 100.00
Le Tenute del Leone Alato S.p.A. 086 G 11 1 100.00 100.00 100.00
Leone Alato S.p.A. 086 G 11 1 100.00 100.00 100.00
L'Equité S.A. Cie d'Assurances et Réass.contre les risques de toute
nature
029 G 2 1 99.99 98.59 100.00
Lion River I N.V. 050 G 9 1 100.00 99.52 100.00
Lion River II N.V. 050 G 9 1 100.00 99.82 100.00
Living Fund Master HoldCo S.à r.l. 092 G 11 1 100.00 100.00 100.00
Loranze sp. z o.o. 054 G 11 1 100.00 95.99 100.00
Lumyna Investments Limited 031 G 8 1 100.00 99.66 100.00
Main Square S.a.r.l. 092 G 11 1 100.00 100.00 100.00
MGD Company Limited 072 G 4 1 90.57 90.43 100.00
MPI Generali Berhad 106 G 3 1 100.00 99.84 100.00
Mustek Properties, s.r.o. 275 G 10 1 100.00 100.00 100.00
Nám
ě
stí Republiky 3a, s.r.o.
275 G 10 1 100.00 100.00 100.00
NEC Initiative SAS 029 G 11 1 100.00 74.07 100.00
NKFE Company Limited 103 G 11 1 100.00 100.00 100.00
Office Center Purky
ň
ova, a.s.
275 G 10 1 100.00 100.00 100.00
OFI GB1 029 G 10 1 100.00 98.60 100.00
OFI GR1 029 G 10 1 100.00 98.60 100.00
OPCI Generali Bureaux 029 G 10 1 100.00 98.60 100.00
OPCI Generali Residentiel 029 G 10 1 100.00 98.60 100.00
OPCI Parcolog Invest 029 G 10 1 100.00 98.60 100.00
OPPCI K Archives 029 G 10 1 100.00 95.99 100.00
OPPCI K Charlot 029 G 10 1 100.00 95.99 100.00
OPPCI Residential Living Fund 029 G 11 1 100.00 100.00 100.00
Palac Krizik a.s. 275 G 10 1 100.00 100.00 100.00
Palác Špork, a.s. 275 G 10 1 100.00 100.00 100.00
PAN EU IBC Prague s.r.o. 275 G 11 1 100.00 96.45 100.00
PAN EU K26 S.à r.l. 092 G 11 1 100.00 95.99 100.00
PAN EU Kotva Prague a.s. 275 G 11 1 100.00 99.45 100.00
Pankrác East a.s. 275 G 10 1 100.00 100.00 100.00
Pankrác West a.s. 275 G 10 1 100.00 100.00 100.00
PARCOLOG France 029 G 10 1 100.00 96.18 100.00
382
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Participations in controlled entities
Company Registered
office
Country
Operational
headquarter
Country
(1)
Method
(2)
Activity
(3)
Relationship
type
(4)
% Direct
and indirect
shareholding
Group ratio
(5)
% Voting rights at
the shareholders’
meeting
(6)
% of
consolidation
Pa
ř
ížská 26, s.r.o.
275 G 10 1 100.00 100.00 100.00
Pflegix GmbH 094 G 11 1 81.53 81.52 100.00
PL Investment Jerozolimskie I Spòlka Ograniczona Odpowiedzialno
ś
cia
054 G 11 1 100.00 100.00 100.00
Plac M LP Spółka Z Ograniczon
ą
Odpowiedzialno
ś
ci
ą
054 G 11 1 100.00 95.99 100.00
Plenisfer Investments S.p.A. SGR 086 G 8 1 70.00 69.76 100.00
Ponte Alta, SGPS, Unipessoal, Lda. 055 G 11 1 100.00 99.99 100.00
Preciados 9 Desarrollos Urbanos SL 067 G 10 1 100.00 95.99 100.00
Project Montoyer S.A. 009 G 11 1 100.00 95.99 100.00
Prudence Creole 029 G 2 1 96.01 94.67 100.00
PT Asuransi Jiwa Generali Indonesia 129 G 3 1 98.00 97.84 100.00
PT Generali Services Indonesia 129 G 10 1 100.00 98.60 100.00
Redoze Holding N.V. 050 G 9 1 100.00 99.92 100.00
Residenze CYL S.p.A. 086 G 10 1 66.67 66.67 100.00
Retail One Fund OPPCI 029 G 11 1 100.00 97.32 100.00
Retail One Fund SCSp RAIF 092 G 11 1 100.00 95.99 100.00
Ritenere S.A. 006 G 11 1 100.00 89.96 100.00
S.C. Genagricola Romania S.r.l. 061 G 11 1 100.00 100.00 100.00
Salobrena 054 G 11 1 100.00 96.18 100.00
Sarl Breton 029 G 10 1 100.00 98.60 100.00
Sarl Parcolog Lyon Isle d'Abeau Gestion 029 G 10 1 100.00 96.18 100.00
SAS IMMOCIO CBI 029 G 10 1 100.00 98.60 100.00
SAS Lonthènes 029 G 10 1 100.00 98.60 100.00
SAS Parcolog Lille Henin Beaumont 1 029 G 10 1 100.00 98.60 100.00
SAS Retail One 029 G 11 1 100.00 95.99 100.00
Savatiano s.p. z.o.o. 054 G 10 1 100.00 96.18 100.00
SC Commerce Paris 029 G 10 1 100.00 98.60 100.00
SC Generali Logistique 029 G 10 1 100.00 96.18 100.00
SC GF Pierre 029 G 10 1 100.00 98.60 100.00
SC Novatis 029 G 10 1 100.00 98.60 100.00
SCE Château La Pointe 029 G 11 1 100.00 98.60 100.00
SCI 18-20 Paix 029 G 10 1 100.00 98.60 100.00
SCI 204 Pereire 029 G 10 1 100.00 98.60 100.00
SCI 28 Cours Albert 1er 029 G 10 1 100.00 98.60 100.00
SCI 40 Notre Dame Des Victoires 029 G 10 1 100.00 98.60 100.00
SCI 42 Notre Dame Des Victoires 029 G 10 1 100.00 98.60 100.00
SCI 5/7 Moncey 029 G 10 1 100.00 98.60 100.00
SCI 6 Messine 029 G 10 1 100.00 98.60 100.00
SCI Berges de Seine 029 G 10 1 100.00 98.60 100.00
SCI Cogipar 029 G 10 1 100.00 98.60 100.00
SCI du 33 avenue Montaigne 029 G 10 1 100.00 98.60 100.00
SCI du 54 Avenue Hoche 029 G 10 1 100.00 98.60 100.00
Consolidated Financial Statements
383
Participations in controlled entities
Company Registered
office
Country
Operational
headquarter
Country
(1)
Method
(2)
Activity
(3)
Relationship
type
(4)
% Direct
and indirect
shareholding
Group ratio
(5)
% Voting rights at
the shareholders’
meeting
(6)
% of
consolidation
SCI du 68 rue Pierre Charron 029 G 10 1 100.00 95.99 100.00
SCI du Coq 029 G 10 1 100.00 98.60 100.00
SCI Espace Seine-Generali 029 G 10 1 100.00 98.60 100.00
SCI Galilée 029 G 10 1 100.00 98.60 100.00
SCI Generali Carnot 029 G 10 1 100.00 98.60 100.00
SCI Generali Commerce 1 029 G 10 1 100.00 98.60 100.00
SCI Generali Commerce 2 029 G 10 1 100.00 98.60 100.00
SCI Generali le Moncey 029 G 10 1 100.00 98.60 100.00
SCI Generali Wagram 029 G 10 1 100.00 98.60 100.00
SCI GRE PAN-EU 146 Haussmann 029 G 10 1 100.00 95.99 100.00
SCI GRE PAN-EU 74 Rivoli 029 G 10 1 100.00 95.99 100.00
SCI Issy Bords de Seine 2 029 G 10 1 100.00 95.99 100.00
SCI Issy Les Moulineaux 029 G 11 1 100.00 100.00 100.00
SCI Landy-Novatis 029 G 10 1 100.00 98.60 100.00
SCI Landy-Wilo 029 G 10 1 100.00 98.60 100.00
SCI Living Clichy 029 G 10 1 100.00 100.00 100.00
SCI Luxuary Real Estate 029 G 10 1 100.00 98.60 100.00
SCI Parc Logistique Maisonneuve 1 029 G 10 1 100.00 96.18 100.00
SCI Parc Logistique Maisonneuve 2 029 G 10 1 100.00 96.18 100.00
SCI Parc Logistique Maisonneuve 3 029 G 10 1 100.00 96.18 100.00
SCI Parc Logistique Maisonneuve 4 029 G 10 1 100.00 96.18 100.00
SCI Parcolog Bordeaux Cestas 029 G 10 1 100.00 96.18 100.00
SCI Parcolog Isle D'Abeau 1 029 G 10 1 100.00 96.18 100.00
SCI Parcolog Isle D'Abeau 2 029 G 10 1 100.00 96.18 100.00
SCI Parcolog Isle D'Abeau 3 029 G 10 1 100.00 96.18 100.00
SCI PARCOLOG ISLE D'ABEAU 4 029 G 10 1 100.00 96.18 100.00
SCI Parcolog Lille Hénin Beaumont 2 029 G 10 1 100.00 96.18 100.00
SCI Parcolog Marly 029 G 10 1 100.00 96.18 100.00
SCI Parcolog Messageries 029 G 10 1 100.00 96.18 100.00
SCI Retail One 029 G 10 1 100.00 97.32 100.00
SCI Saint Germain 029 G 10 1 100.00 100.00 100.00
SCI Saint Michel 029 G 10 1 100.00 98.60 100.00
SCI SDM 029 G 11 1 100.00 80.00 100.00
SCI Taitbout 029 G 10 1 100.00 98.60 100.00
SCI Thiers Lyon 029 G 10 1 100.00 98.60 100.00
SCIC Aide@Venir 029 G 11 1 94.45 75.56 100.00
SEGMAN Servicios y Gestión del Mantenimiento, S.L. 067 G 11 1 100.00 99.99 100.00
SIBSEN Invest sp. z o.o. 054 G 11 1 100.00 100.00 100.00
SISAL SRO 275 G 11 1 100.00 100.00 100.00
Small GREF a.s. 275 G 10 1 100.00 100.00 100.00
SO SPV 57 Sp. Z o.o. 054 G 11 1 100.00 95.99 100.00
384
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Participations in controlled entities
Company Registered
office
Country
Operational
headquarter
Country
(1)
Method
(2)
Activity
(3)
Relationship
type
(4)
% Direct
and indirect
shareholding
Group ratio
(5)
% Voting rights at
the shareholders’
meeting
(6)
% of
consolidation
Sosteneo Società di Gestione del Risparmio S.p.A. 086 G 8 1 70.00 69.76 100.00
Suresnes Immobilier S.A.S. 029 G 10 1 100.00 98.60 100.00
Sycomore Asset Management S.A. 029 G 8 1 100.00 74.07 100.00
Sycomore Factory SAS 029 G 9 1 74.32 74.07 100.00
Sycomore Market Solutions SA 029 G 8 1 100.00 74.07 100.00
Synergies @Venir S.A.S. 029 G 11 1 94.45 75.56 100.00
Torelli S.à.r.l. 092 G 9 1 100.00 99.40 100.00
TS PropCo Ltd 092 G 10 1 100.00 95.99 100.00
TTC - Training Center Unternehmensberatung GmbH 008 G 11 1 100.00 74.97 100.00
Tua Assicurazioni S.p.A. 086 G 1 1 100.00 100.00 100.00
UMS - Immobiliare Genova S.p.A. 086 G 10 1 99.90 99.90 100.00
Urbe Retail Real Estate S.r.l. 086 G 11 1 100.00 55.86 100.00
UrbeRetail 086 G 10 1 55.87 55.86 100.00
Vàci utca Center
Ű
zletközpont Kft
077 G 10 1 100.00 99.95 100.00
Vitadom S.r.l. 029 G 11 1 100.00 80.00 100.00
Vitalicio Torre Cerdà S.l. 067 G 10 1 100.00 99.90 100.00
Vivre & Domicile 029 G 11 1 100.00 80.00 100.00
VVS Vertriebsservice für Vermögensberatung GmbH 094 G 11 1 100.00 74.00 100.00
(1) Such information is required only if the operational headquarter Country differs from the registered office Country.
(2) Consolidation method: Line-by-line consolidation method =G; Line-by-line consolidation method arising from joint management = U.
(3) 1=Italian Insurance companies; 2=EU Insurance companies; 3=Non EU Insurance companies; 4=Insurance holding companies; 4.1 - Mixed financial holding companies; 5=EU Reinsurance companies; 6=non EU
Reinsurance companies; 7=Banks; 8=Asset Management companies; 9=other Holding companies; 10=Real Estate companies; 11=Other.
(4) Type of relationship: 1=Majority of voting rights at the shareholders’ meeting; 2=Significant influence at the shareholders’ meeting; 3=Arrangements with other shareholders; 4=Other types of control; 5=Joint
management as per Legislative Decree 209/2005, art. 96, paragraph 1; 5=Joint management as per Legislative Decree 209/2005, art. 96, paragraph 2.
(5) Net Group participation percentage.
(6) Voting rights at the shareholders’ meeting, if different from direct shareholding, split by effective and potential voting rights.
Consolidated Financial Statements
385
Participations in joint-ventures and associated entities
Comapny Operational
headquarter
Country
(1)
Registered office
Country
Activity
(2)
Relationship
type
(3)
% Direct
and indirect
shareholding
Group ratio
(4)
% Voting rights at
the shareholders’
meeting
(5)
Joint-ventures:
92 France 029 10 c 50.00 48.00
BG Saxo SIM S.p.A. 086 8 c 19.90 10.21
Bois Colombes Europe Avenue SCI 029 10 c 50.00 49.30
Bonus Pensionskassen AG 008 11 c 50.00 49.97
BONUS Vorsorgekasse AG 008 11 c 50.00 49.97
Core+ France OPPCI 029 10 c 50.00 48.22
EABS Serviços de Assistencia e Partecipaçoes S.A. 011 9 c 50.00 50.00
Europ Assistance Brasil Serviços de Assistência S.A. 011 11 c 100.00 50.00
Europ Assistance France S.A.S. 029 11 c 50.00 50.00
Europ Téléassistance S.A.S. 029 11 c 100.00 50.00
FG&G Distribution Private Limited 114 11 c 48.83 48.75
Fondo Formenti - fondo comune di investimento immobiliare di tipo chiuso 086 11 c 50.00 50.00
Fondo Mercury Centro-Nord 086 10 c 52.55 52.55
Fondo Mercury Nuovo Tirreno 086 10 c 76.17 76.17
Fondo Mercury Tirreno 086 10 c 51.01 51.01
Fondo Rubens 086 11 c 50.00 48.00
Fondo Sericon 086 10 c 50.00 48.00
GRE PAN-EU Berlin 1 S.à r.l. 092 10 c 50.00 48.00
GRE PAN-EU Frankfurt 2 S.à r.l. 092 10 c 50.00 48.00
Holding Klege S.à.r.l. 092 9 c 50.00 49.70
N2G Worldwide Insurance Services, LLC 069 11 c 50.00 50.00
Ocealis S.A.S. 029 11 c 100.00 50.00
ONB Technologies India Pvt Ltd 114 11 c 100.00 47.28
ONB Technologies Pte. Ltd. 147 11 c 47.29 47.28
ONB Technologies Singapore Pte Ltd 147 11 c 100.00 47.28
PT ONB Technologies Indo 129 11 c 100.00 47.28
Puerto Venecia Investments, S.A.U. 067 10 c 100.00 49.80
SAS 100 CE 029 10 c 50.00 48.00
Saxon Land B.V. 050 10 c 50.00 49.79
SCI 11/15 Pasquier 029 10 c 50.00 49.30
SCI 15 Scribe 029 10 c 50.00 49.30
SCI 9 Messine 029 10 c 50.00 49.30
SCI Daumesnil 029 10 c 50.00 49.30
SCI Iris La Défense 029 10 c 50.00 49.30
SCI Malesherbes 029 10 c 50.00 49.30
SCI New Station 029 10 c 100.00 48.22
Shendra Advisory Services Private Limited 114 11 c 47.9 6 47.88
Sigma Real Estate B.V. 050 9 c 22.34 22.21
Sprint Advisory Services Private Limited 114 11 c 47.96 47.88
T-C PEP Property S.à r.l. 092 11 c 50.00 49.80
386
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Participations in joint-ventures and associated entities
Comapny Operational
headquarter
Country
(1)
Registered office
Country
Activity
(2)
Relationship
type
(3)
% Direct
and indirect
shareholding
Group ratio
(4)
% Voting rights at
the shareholders’
meeting
(5)
Top Torony Zrt. 077 11 c 50.00 50.00
Viavita 029 11 c 100.00 50.00
VUB Generali dôchodková správcovská spolo
č
nost’, a.s. 276 11 c 44.74 44.74
Zaragoza Properties, S.A.U. 067 10 c 50.00 49.80
Associated entities:
3 Banken-Generali Investment-Gesellschaft m.b.H. 008 8 b 48.57 48.55
Aliance Klesia Generali 029 4 b 44.00 43.39
Deutsche Vermögensberatung Aktiengesellschaft DVAG 094 11 b 40.00 40.00
Fondo Ca' Tron Hcampus 086 10 b 59.76 59.76
Fondo Fleurs RE 086 10 b 35.90 35.89
Fondo Mercury Adriatico 086 10 b 33.97 33.97
Fondo Yielding 086 10 b 45.00 43.20
G3B Holding AG 008 9 b 49.90 49.87
Generali China Insurance Co. Ltd 016 3 b 49.00 49.00
Guotai Asset Management Company 016 8 b 30.00 30.00
Initium S.r.l. in liquidazione 086 10 b 49.00 49.00
Klesia SA 029 2 b 100.00 43.38
Nama Trgovsko Podjetje d.d. Ljubljana 260 11 b 48.51 48.51
Nextam Partners SIM S.p.A. 086 8 b 19.90 10.21
ONB Technologies Malaysia SDN. BHD. 106 11 b 100.00 47.28
Point Partners GP Holdco S.à r.l. 092 11 b 25.00 24.85
Point Partners Special Limited Partnership 092 11 b 25.00 24.85
Saneo Spółka Akcyjna 054 11 b 25.00 25.00
(1) Such information is required only if the operational headquarter Country differs from the registered office Country.
(2) 1=Italian Insurance companies; 2=EU Insurance companies; 3=Non EU Insurance companies; 4=Insurance holding companies; 4.1 - Mixed financial holding companies; 5=EU Reinsurance companies; 6=non EU
Reinsurance companies; 7=Banks; 8=Asset Management companies; 9=other Holding companies; 10=Real Estate companies; 11=Other.
(3) a=controlled entities (to be reported only in the Parent Company financial statements); b=associated entities; c=joint-ventures; entities under IFRS 5 to be marked with (*) and legenda to be reported below the table.
(4) Net Group participation percentage.
(5) Voting rights at the shareholders’ meeting, if different from direct shareholding, split by effective and potential voting rights.
Consolidated Financial Statements
387
List of Countries
Country Country code
ARGENTINA
006
AUSTRALIA
007
AUSTRIA
008
BAHRAIN
169
BELGIUM
009
BRAZIL
011
BULGARIA
012
CANADA
013
CHILE
015
CHINA
016
CROATIA
261
CZECH REPUBLIC
275
DENMARK
021
ECUADOR
024
FRANCE
029
GERMANY
094
GREECE
032
HONG KONG
103
HUNGARY
077
INDIA
114
INDONESIA
129
IRELAND
040
ITALY
086
JORDAN
122
Country Country code
LIECHTENSTEIN
090
LUXEMBOURG
092
MALAYSIA
106
MONTENEGRO, REPUBLIC
290
NETHERLANDS
050
NEW CALEDONIA
253
PHILIPPINES
027
POLAND
054
PORTUGAL
055
ROMANIA
061
RUSSIAN FEDERATION
262
SERBIA
289
SINGAPORE
147
SLOVAKIA
276
SLOVENIA
260
SPAIN
067
SWITZERLAND
071
THAILAND
072
TURKEY
076
UNITED KINGDOM
031
UNITED STATES
069
VIETNAM
062
388
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Consolidated Financial Statements
389
ATTESTATION
AND REPORTS
Attestation to the Consolidated Financial Statements
pursuant to art. 154-bis, paragraph 5, of legislative decree of 24 February 1998,
no. 58 and art. 81-ter of Consob regulation of 14 May 1999, no. 11971
as amended ......................................................................................... 393
Board of Statutory Auditors’ Report .................................................. 397
Independent Auditor’s Report
on the Consolidated Financial Statements ....................................... 415
392
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Attestation to the
Consolidated Financial
Statements
pursuant to art. 154-bis, paragraph 5, of legislative decree
of 24 February 1998, no. 58 and art. 81-ter of Consob regulation
of 14 May 1999, no. 11971 as amended
394
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Attestation of the Consolidated Financial Statements pursuant to
art. 154-bis, paragraph 5, of legislative decree of 24 February 1998,
no. 58 and art. 81-ter of Consob regulation of 14 May 1999,
no. 11971 as amended
1. The undersigned, Philippe Donnet, in his capacity as Managing Director and Group CEO, and Cristiano Borean, in his capacity
as Manager in charge of preparing the financial reports of Assicurazioni Generali S.p.A. and Group CFO, having also taken into
account the provisions of art 154-bis, paragraphs 3 and 4, of the Italian Legislative Decree no. 58 dated 24 February 1998,
hereby certify:
- the adequacy in relation to the characteristics of the Company and
- the effective implementation
of the administrative and accounting procedures for the preparation of the consolidated financial statements over the course of
the period from 1 January to 31 December 2023.
2. The adequacy of the administrative and accounting procedures in place for preparing the consolidated financial statements as
at 31 December 2023 has been assessed through a process established by Assicurazioni Generali S.p.A. on the basis of the
guidelines set out in the Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission, an internationally-accepted reference framework.
3. The undersigned further confirm that:
3.1 the consolidated financial statements as at 31 December 2023:
a) are prepared in compliance with the applicable international accounting standards recognized by the European
Community pursuant to Regulation (EC) no. 1606/2002 of the European Parliament and of the Council of 19 July 2002,
and with the applicable provisions and regulations;
b) correspond to the related books and accounting records;
c) provide a true and fair representation of the financial position of the issuer and the group of companies included in the
scope of consolidation;
3.2 the management report contains a reliable analysis of the business outlook and management result, the financial position
of the issuer and group companies included in the scope of consolidation and a description of the main risks and uncertain
situations to which they are exposed.
Milan, 11 March 2024
Philippe Donnet Cristiano Borean
Managing Director and Group CEO Manager in charge of preparing
the Company’s financial reports
and Group CFO
ASSICURAZIONI GENERALI S.p.A. ASSICURAZIONI GENERALI S.p.A.
Attestation and Reports
395
396
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Board of Statutory
Auditors’ Report
Report of the Board of Statutory Auditors to the
Assicurazioni Generali S.p.A. General Meeting called to
approve the Separate Financial Statements as at and
for the year ended 31 December 2023 pursuant to art.
153 of Lgs.Decree 58/1998
398
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Dear Shareholders,
in compliance with art. 153 of Lgs.Decree 24 February 1998, no. 58 (“CLFI”, [Consolidated Law on Financial Intermediation]) and
with Consob Communication no. 1025564 of 6 April 2001 and subsequent amendments and additions, and taking account of
the recommendations of the Italian National Board of Accountants and Auditors (“CNDCEC”), the Board of Statutory Auditors
of Assicurazioni Generali S.p.A. (alternatively, “Generali”, the “Company” or the “Parent”) illustrates in this Report the supervisory
activities carried out during financial year 2023 and until the date of this Report.
This Board’s term of office began on 28 April 2023, when the General Meeting appointed the Company’s Board of Statutory Auditors
for the 2023-2025 three-year period, renewing its composition in full.
The activities carried out in 2023, following its appointment, enabled the Board, inter alia, to obtain appropriate knowledge of the
Company and the Group, its organisational and administrative-accounting structure and its internal control and risk management
system, which was also useful for the purposes of work planning.
1. Activities of the Board of Statutory Auditors during the
financial year ended 31 December 2023 (point 10 of Consob
Communication no. 1025564/01)
Since its appointment, the Board of Statutory Auditors has carried out the activities assigned and held 18 meetings which lasted, on
average, approximately two hours and twenty minutes.
Furthermore, since its appointment, the Board of Statutory Auditors has:
• met, during one of the first meetings held after the appointment, the Chair of the Board of Statutory Auditors and the Standing
Auditors from the previous term of office;
• attended the 11 meetings of the Board of Directors (“BoD” or the “Board”);
• attended the 10 meetings of the Risk and Control Committee (“RCC”);
• attended the meeting of the Related-Party Transactions Committee (“RPTC”);
• attended 7 meetings of the Appointments and Corporate Governance Committee (“AGC”);
• attended the 4 meetings of the Innovation, Social and Environmental Sustainability Committee (“ISC”);
• attended 8 meetings of the Remuneration and Human Resources Committee (“RHRC”);
• attended 8 meetings of the Investment Committee (“IC”).
In addition, between 1 January 2024 and the date of this Report, the Board of Statutory Auditors held 13 meetings and:
• attended the 4 meetings of the BoD;
• attended the 5 meetings of the RCC;
• attended the 2 meetings of the ISC;
• attended the 3 meetings of the AGC;
• attended the 6 meetings of the RHRC;
• attended the 2 meetings of the IC;
• attended the 2 meetings of the RPTC.
In addition to the above, as part of its program of activities, the Board of Statutory Auditors:
• held meetings with and obtained information from the Group CEO, also in his capacity as Director in charge of the internal control
and risk management system; the Group CFO, also in his capacity as manager in charge of preparation of the Company’s financial
reports; the General Manager; the head of the Group Integrated Data Quality & Reporting Risk Function; the head of the Group
Integrated Reporting Function; the Group General Counsel; the Group HR & Organization Chief Officer; the head of the Corporate
Affairs Function; the Group Chief Security Officer; the head of the Group Tax Affairs;
• met the heads of the other corporate functions involved in its inspection activities from time to time;
• pursuant to art. 74.2 of IVASS Regulation no. 38 of 3 July 2018 (“IVASS Regulation no. 38/2018”), held meetings with and obtained
information from the heads of the key functions envisaged by the aforementioned Regulation – Group Chief Audit Officer, Group
Chief Compliance Officer, Group Chief Risk Officer, Group Chief Actuarial Officer (the “Key Functions”) - and from the head of the
Attestation and Reports
399
Group Chief Anti Financial Crime Officer Function and the heads of all the units that perform control activities within the group
headed by Assicurazioni Generali S.p.A. (the “Group”), ensuring appropriate functional and information links;
• met the members of the Supervisory Body set up pursuant to Lgs.Decree 231/2001 for useful exchanges of information;
• pursuant to paragraphs 1 and 2 of art. 151 of the CLFI, and to art. 74.3.g) of IVASS Regulation no. 38/2018, held meetings
and/or exchanged information with the boards of statutory auditors of the main subsidiaries (Alleanza Assicurazioni S.p.A.,
Banca Generali S.p.A., Caja De Ahorro Y Seguro S.A., Europ Assistance Holding S.A.S., Europ Assistance Italia S.p.A., Generali
Allgemeine Versicherungen AG, Generali Asset Management S.p.A. Società di gestione del risparmio, Generali Brasil Seguros
S.A., Generali China Life Insurance Co. Ltd., Generali Česká pojišťovna a.s., CityLife S.p.A., Generali Deutschland AG, Generali
España S.A. de Seguros y Reaseguros, Generali Hellas Insurance Company S.A., Generali IARD S.A., Generali Investments
Holding S.p.A., Generali Italia S.p.A., GOSP - Generali Operations Service Platform S.r.l., Generali Participations Netherlands
N.V., Generali Personenversicherungen AG, Generali Real Estate S.p.A., Generali Real Estate S.p.A. SGR, Generali Seguros, S.A.,
Generali Versicherung AG, Generali Vie S.A., Genertel S.p.A., Genertellife S.p.A.);
• as part of the relations between the statutory auditors and the independent auditors envisaged under art.150.3 of the CLFI and
art. 74.3.e) of IVASS Regulation no. 38/2018, and in light of the powers of the Board of Statutory Auditors in its capacity as
internal control and account audit committee pursuant to art. 19 Lgs.Decree 39/2010, held regular meetings with the independent
auditors KPMG S.p.A. (“KPMG”), during which data and information of significance for the planning of activities and fulfilment of
the relevant responsibilities were exchanged;
• took part, in order to constantly update their knowledge and skills, in specific induction sessions through active learning approaches
with opportunities for comparison and discussion. Specifically, the induction sessions covered IFRS 17, in July, and IFRS 9, in
September. Furthermore, again with respect to training and refresher courses, in 2023, starting from its appointment and in the
first few months of 2024, the Board of Statutory Auditors has participated in the refresher and in-depth sessions held by the
Company on Life portfolios, the Italian and European insurance market, insurance distribution scenarios and prospects, the duties
and responsibilities of the BoD on sustainability and climate change issues and the Customer Journey;
• held a first introductory meeting with IVASS representatives in November 2023.
2. Transactions with the greatest impact on results of operations,
financial position and equity. Other noteworthy events (point 1 of
Consob Communication no. 1025564/01)
2.1 Activities performed by the Board of Statutory Auditors
The Board of Statutory Auditors monitored compliance by the Company with legislation and the Articles of Association and observance
of the principles of correct administration, with special reference to transactions having a significant impact on results of operations,
the financial position and equity, by regularly attending meetings of the Board of Directors and examining the documentation provided.
Where necessary, the Board of Statutory Auditors received information from the Managing Director/Group CEO and the Board of
Directors about activities performed and transactions with the greatest impact on results of operations, the financial position and
equity conducted by the Company, including transactions conducted through directly or indirectly controlled companies.
On the basis of the information provided, the Board of Statutory Auditors reasonably concluded that said transactions comply with
legislation, the Articles of Association and the principles of sound management and do not appear to be manifestly imprudent, rash
or in conflict with the resolutions passed by the General Meeting, or such as to undermine the integrity of the Company’s assets.
In particular, the Board of Statutory Auditors was informed about transactions in which Directors declared an interest, on their own
account or on behalf of third parties, and has no comments to make about the compliance of the relevant resolutions with laws and
regulations.
2.2 Most significant events
The most significant events involving the Company and the Group in 2023 and the early months of 2024 are described in the 2023
Annual Integrated Report and Consolidated Financial Statements. They include the following events:
January
• Generali commenced a share buy-back for the execution of the Group long-term incentive plan (2022-2024 LTI Plan) approved
by the General Meeting on 29 April 2022 and all the remuneration and incentive plans approved by the General Meeting and still
underway. The buy-back is for up to 10 million 500 thousand shares and the disposal of the shares – jointly with those previously
bought back – in connection with the plans. The buy-back is authorised for 18 months from the date of the General Meeting, while
the disposal of treasury shares through the plans was approved without time limits. The buy-back commenced on 20 January
2023 and ended on 10 March 2023. The minimum share purchase price was not below the implicit par value, currently € 1.00,
while the maximum purchase price was not more than 5% above the reference share price at the close of trading on the day before
each purchase transaction.
400
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
February
• Generali commenced the search for the most innovative insurtech start-ups by participating in an international contest as part
of the next edition of Insurtech Insights. Every year, this conference brings together managers, entrepreneurs and investors to
discuss the technological trends affecting the insurance industry and to bring together the main players with the most innovative
start-ups in order to create business opportunities and speed up the growth of both players. The winners of the contest will have
the opportunity to develop a pilot project in collaboration with Generali.
• In connection with the share buy-back, on 24 February 2023 Generali and its subsidiaries held 48,305,586 treasury shares,
representing 3.04% of share capital.
March
• Generali completed the buy-back programme to service the Group’s 2022-2024 long-term incentive plan, as well as the Group’s
current incentive and remuneration plans. The weighted average purchase price of the treasury shares, amounting to 10 million
500 thousand shares, was € 18.16. Therefore, at 10 March 2023, the Company and its subsidiaries held 50,161,243 treasury
shares, representing 3.16% of the share capital.
• Assicurazioni Generali Board of Directors approved the following reports: the Annual Integrated Report and Consolidated Financial
Statements, the Parent’s Draft Separate Financial Statements and the Corporate Governance and Share Ownership Report at 31
December 2022 and the Report on Remuneration Policy and Payments. Furthermore, the Board resolved:
- to increase the share capital by € 5,549,136 implementing the Group’s 2020-2022 long-term incentive plan, after checking the
fulfilment of the necessary conditions. The implementation of the Board’s resolution was subject to IVASS’ authorisation of the
relevant amendments to the Articles of Association, which was received on 5 April;
- to submit to the General Meeting for approval the proposals relating to the Group’s 2023- 2025 long-term incentive plan and the
share plan for Generali Group employees, supported by buy-back programmes to service the plans;
- to cancel, without reducing the share capital, 33,101,371 treasury shares, purchased for this purpose, implementing the
resolutions of the 2022 General Meeting. The implementation of the Board’s resolution was subject to IVASS’ authorisation of
the relevant amendments to the Articles of Association, which was received on 5 April.
April
• With respect to the appointment of Assicurazioni Generali’s Board of Statutory Auditors for the three-year period 2023-2025,
two lists of candidates were filed by the following shareholders within the terms provided for by the laws and regulations in
force: various UCITS under the aegis of Assogestioni (0.810% of the share capital), and VM 2006 S.r.l. (2.017% of the share
capital).
• In line with its proactive debt management approach and with the aim of optimising its regulatory capital structure, Assicurazioni
Generali announced a cash buy-back offer for its € 1,500,000,000 4.596% Fixed-Floating Rate Perpetual Notes (XS1140860534)
in a principal amount outstanding of € 1.5 billion and expiring on 19 April. At the expiry date of the offer, the aggregate nominal
amount of the securities validly tendered for buyback amounted to € 525,063,000, accounting for approximately 35% of the total
nominal amount of the outstanding securities. In accordance with the terms and conditions of the offer, Generali accepted and
bought back an aggregate nominal amount of € 499,563,000 of securities.
• Generali successfully completed the placement of a € 500 million Euro-denominated, fixed-rate Tier 2 bond maturing on 20
April 2033, in green format under its Sustainability Bond Framework. The transaction is in line with Generali’s commitment to
sustainability. During the placement, the notes attracted an order book of € 3.9 billion more than 7 times the offered amount, from
around 300 highly diversified international institutional investor base including a significant representation of funds with Green/SRI
mandates.
• Assicurazioni Generali carried out the share capital increase to service the Group’s 2020-2022 long-term incentive plan, approved
by the 2020 General Meeting. Furthermore, the treasury shares bought back to service the buyback plan approved by the 2022
General Meeting were cancelled (without reducing share capital), resulting in a change in the implicit par value per share. At 17 April
2023, the fully subscribed and paid-up share capital amounted to € 1,592,382,832 and was divided into 1,559,281,461 shares
with no expressed par value.
• The General Meeting of 28 April 2023 approved: the Parent’s Draft Separate Financial Statements at 31 December 2022,
establishing that a unit dividend of € 1.16 per share would be awarded to shareholders; the Report on Remuneration Policy; the
2023-2025 Group’s long-term incentive plan, authorising the purchase and disposal of treasury shares to service remuneration
and incentive plans up to 11 million 300 thousand treasury shares; and the share plan for Generali Group employees, authorising
the purchase and disposal of up to 9 million treasury shares.
• During the same General Meeting, the Shareholders also approved the appointment of Stefano Marsaglia as a member of the
Board of Directors for the years ending 31 December 2023 and 2024, following resignation of Francesco Gaetano Caltagirone,
and appointed Board of Statutory Auditors for 2023-2025 three-year period. It also resolved to set the remuneration of the Chair
of the Board of Statutory Auditors at € 180,000 gross p.a. and that of the Standing Auditors at € 130,000 gross p.a., in addition
to an attendance fee of € 500 gross for each meeting of the Board of Directors and Board Committees, and the reimbursement
of the expenses incurred to perform their duties and the coverage of the D&O insurance policy, in accordance with company
policies.
• Finally, the General Meeting of 28 April 2023 approved the adjustment of KPMG S.p.A.’s fees, specifically for the statutory audit of
Generali’s financial statements for each of the years ended/ending between 31 December 2022 and 31 December 2029.
Attestation and Reports
401
May
• The Board of Directors, subject to the unanimous opinion of the Appointments and Corporate Governance Committee, and the
Board of Statutory Auditors have ascertained that the members of the corporate bodies elected by the 2023 General Meeting,
namely the director Stefano Marsaglia and the standing and alternate members of the Board of Statutory Auditors, meet the
requirements and comply with the criteria laid down by the laws and regulations in force, the Articles of Association and the
Corporate Governance Code, as implemented by Generali’s internal regulations. In this respect, the Board, following the unanimous
opinion of the Appointments and Corporate Governance Committee, checked, in particular, that the independence requirement of
the Corporate Governance Code also applies to the Chair of the Board of Statutory Auditors.
• A 2022 per-share dividend of € 1.16 was paid out.
• The BoD approved the Interim Financial Information at 31 March 2023.
June
• Generali reached an agreement with Liberty Mutual for the purchase of Liberty Seguros, a Spanish insurance company operating
in Spain, Portugal, Ireland and Northern Ireland. The transaction is fully aligned with Generali’s “Lifetime Partner 24: Driving Growth”
strategy, enhancing the Group’s growth profile, further developing the P&C business, and strengthening its leadership position in
Europe. As a result of this transaction, Generali will reach 4th position in the Spanish P&C market, while consolidating its position
in Portugal at #2 becoming one of the top ten insurance companies in Ireland. The total price for the transaction is € 2.3 billion,
including all excess capital, subject to customary closing adjustments. The estimated impact on the Generali Group’s Regulatory
Solvency Ratio is approximately -9.7 p.p. The acquisition is subject to regulatory approvals.
• Following the Eurovita crisis, the Board of Directors of Assicurazioni Generali S.p.A and Generali Italia approved the participation
of Generali Italia, with four other insurance companies - namely Allianz, Intesa Sanpaolo Vita, Poste Vita and Unipol SAI - in the
agreements aimed at implementing a collective solution with the primary objective of protecting Eurovita’s policyholders. The entire
operation was subject to obtaining all regulatory authorisations from the relevant supervisory authorities and provided a clear signal
of confidence to the market, and to Eurovita’s clients.
July
• Generali announced the acquisition of Conning Holdings Limited (CHL3), a leading global asset manager for insurance and
institutional clients, from Cathay Life, a subsidiary of Cathay Financial Holdings, one of the largest Asia-based financial institutions.
As a result of the contribution of CHL into Generali Investments Holding S.p.A. (GIH), Cathay Life will become a minority shareholder
of GIH (16.75%), subject to the customary adjustments at closing, and will enter into a wider partnership with Generali, supporting
the strategic growth ambitions of Generali Asset Management globally. There is no upfront cash consideration payable by Generali
or GIH to Cathay Life at closing and the impact on the Group’s Solvency II ratio is expected to be negligible. Subject to customary
regulatory, anti-trust and other relevant approvals, the transaction is expected to be completed in the first half of 2024.
August
• Generali Board of Directors approved the consolidated half-year financial report at 30 June 2023 on 9 August.
September
• Generali placed a new Tier 2 instrument denominated in Euro and maturing in September 2033, which was issued in green format
under its Sustainability Bond Framework. This is the fifth green bond issued, amounting to € 500 million. The transaction is in line
with Generali’s commitment to sustainability: indeed, an amount corresponding to the net proceeds of the bonds will be used to
finance/refinance Eligible Green Projects. During the placement, the notes attracted an order book of more than € 1.1 billion more
than 2 times the offered amount, from around 180 highly diversified international institutional investor base including a significant
representation of funds with sustainable/SRI mandates.
• Fitch Ratings have upgraded Generali’s Insurer Financial Strength (IFS) rating to “A+” from “A” with a stable outlook. The agency
has also upgraded Generali’s Long-Term Issuer Default Rating (IDR) to “A” from “A-”. The upgrades reflect Generali’s very strong
capitalisation and moderate financial leverage. The ratings reflect the continuous improvement of the Group’s credit profile and its
strong operating performance.
• During the Board of Directors’ meeting on 26 September 2023, IVASS representatives unveiled the results of the inspection
conducted at the Company on governance issues. After the meeting and in the subsequent weeks, the Board of Statutory
Auditors actively participated in preparing the response to the IVASS inspection report, albeit covering a period during which it was
not yet in office, by taking part in the board meetings and in the meetings of the Board of Directors in which the draft responses
were presented and discussed (see par. 6.3).
October
• Generali announced that Giulio Terzariol will join the Group as CEO Insurance with effect from January 2024. Terzariol will report
directly to the Group CEO, Philippe Donnet, and will join the Group Management Committee of Assicurazioni Generali. He will
be responsible to oversee the activities of the CEOs of Generali’s Insurance Business Units. The creation of the new Division
further enhances coordination, effectiveness, and strategic alignment across geographies, streamlining and simplifying the Group
organisational model, and contributing to the achievement of the objectives of the strategic plan “Lifetime Partner 24: Driving
Growth.
402
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
• “Generali Ventures” is underway: the venture capital initiative to accelerate innovation, enter new markets and generate additional
operating efficiencies for the Group. Generali Ventures is part of the “Lifetime Partner 24: Driving Growth” strategic plan. With
a dedicated commitment of € 250 million, Generali Ventures will identify the most promising investment opportunities, with a
particular focus on the insurtech and fintech sectors. Generali Ventures invested in three strategic initiatives: Mundi Ventures,
specialised in insurtech technologies; Speedinvest, focused on start-ups in the early pre-seed and seed stages; and Dawn,
focused on investing in B2B software solutions.
• Information about social performance was brought to the attention of the Board of Directors with cumulative data, updated to the
end of August 2023, on the main management KPIs (Key Performance Indicators).
November
• Genertel S.p.A. exercised its option to redeem in full the € 100 million Fixed/Floating Rate Subordinated Notes due December
2043 callable December 2023 (ISIN Code: XS1003587356) (the “Notes”) prior to their maturity date. The early redemption of the
Notes was approved by IVASS on 18 October 2023.
• Generali announced that Mr. Bruno Scaroni, currently Group Chief Transformation Officer, would leave the Generali Group after 31
December 2023.
• The BoD approved the Interim Financial Information at 30 September 2023.
December
• Assicurazioni Generali Board of Directors approved the appointment of Stefano Marsaglia, a non-executive and independent
director, to the Investment Committee with immediate effect in line with the recommendation of the Appointments and Corporate
Governance Committee. This follows the decision of Flavio Cattaneo, a non-executive and independent director, to step down
from this committee for new professional commitments.
• AM Best confirmed Generali’s Financial Strength Rating (FSR) of “A” (Excellent) and the Long-Term Issuer Credit Rating (Long-
Term ICR) of “a+”. The outlook is stable. Ratings reflect Generali’s strong operating performance, driven by solid technical
performance.
• Generali confirmed its rating of “AAA” in the MSCI ESG Ratings assessment. MSCI’s assessment highlights Generali’s integration of
advanced climate risk management practices by assessing the impact of different climate scenarios on underwriting activities and
the investment portfolio. MSCI also referenced the Group’s leadership in human capital management, its promotion of responsible
investments, and cybersecurity systems. Generali has also been confirmed in the Dow Jones Sustainability World Index (DJSI)
and in the Dow Jones Sustainability Europe Index (DJSI Europe). Generali’s positioning in the 2023 indices particularly highlights
the distinctive approach in terms of transparency and reporting, tax strategy, risk management, attention to cyber security and
climate change strategy.
• Generali has completed the disposal of Generali Deutschland Pensionskasse AG (GDPK) to Frankfurter Leben, with which an
agreement had been reached in May 2023, following the approval by the German Federal Financial Supervisory Authority (BaFin)
and the relevant German antitrust authorities. The transaction is aligned with Generali’s “Lifetime Partner 24: Driving Growth”
strategy to enhance the profile and profitability of the Life business.
• The Board of Directors reviewed the 2023 forecast, the budget, the risk appetite framework and the strategic asset allocation in
relation to 2024 and passed resolutions to revise Group and Generali policies.
• On 14 December 2023, the Board of Directors approved the response letter to the IVASS inspection report (see par. 6.3).
Notable events in early 2024 included:
January
• Generali placed two new Euro denominated senior bonds, due respectively in January 2029 and in January 2034, both issued in
“green” format in accordance with its Green, Social & Sustainability Bond Framework. These are its sixth and seventh green bonds
issued, for a total of € 1,250 million. The transaction is in line with Generali’s commitment to sustainability: indeed, an amount
corresponding to the net proceeds of the bonds will be used to finance/refinance Eligible Green Projects. During the book building
process, the Notes attracted an aggregate order book in excess of € 2 billion from more than 80 highly diversified international
institutional investors, including a significant representation of funds with Sustainable/SRI mandates.
• Generali signed an agreement for the acquisition of 51% of Generali China Insurance Company Limited for a consideration of
approximately € 99 million. The completion of the transaction is subject to regulatory approvals. The estimated impact on the
Generali Group’s Regulatory Solvency Ratio is around -1 p.p. The acquisition represents a long-term strategic investment to
develop a fully owned and controlled general insurance business in China, positioning Generali well to capture an increasing share
of the growing Chinese market. Upon completion, Generali will become the 100% shareholder of GCI and the first foreign player
to acquire a controlling stake of a Property & Casualty insurance company from a single state-owned entity in China purely via a
Mandatory Public Auction process.
• Generali updated the financial community on the implementation of the Lifetime Partner 24 strategic plan: Driving Growth,
confirming that it is on track to meet all of the Group’s key financial targets, as well as on the recent acquisitions of Liberty Seguros
and Conning Holdings Limited, the pure risk and health business and the Group’s cash and capital management. During the
Investor Day, Generali also announced a € 500 million buyback, which will be submitted for approval at the General Meeting in
April 2024 and will start during the same year, once all approvals have been received.
Attestation and Reports
403
• After obtaining the regulatory approvals, Generali completed the acquisition of Liberty Seguros, announced in June 2023. The
transaction is fully aligned with Generali’s “Lifetime Partner 24: Driving Growth” strategy and will enable the Group to enhance its
profit profile, further develop its P&C business and strengthen its leadership position in Europe. As a result, Generali will reach
fourth position in the Spanish P&C market, while consolidating its position in Portugal at #2 becoming one of the top ten insurance
companies in Ireland.
February
• At its meeting of 21 February, the Board of Directors approved the update of the impairment test procedures, pursuant to the joint
Bank of Italy/CONSOB/ISVAP document no. 4 of 3 March 2010 (see par. 6.1).
March
• Generali completed the disposal of TUA Assicurazioni S.p.A. to Allianz with which it had reached an agreement in October
2023. The transaction is aligned with the implementation of the Group’s “Lifetime Partner 24: Driving Growth” strategy in Italy to
pursue profitable growth, reduce complexity with the aim of making its operating machine more efficient and to increase P&C
diversification. The transaction generates a positive impact of around € 50 million on the net profit, and a neutral effect on the
normalised net profit, adding approximately 1 p.p. to the Group Solvency II position.
• The Board of Directors approved the Annual Integrated Report and Consolidated Financial Statement, the Parent’s Draft Separate
Financial Statements and the Corporate Governance and Share Ownership Report as at 31 December 2023 and the Report on
Remuneration Policy and Payments. Furthermore, it decided to submit to the General Meeting of 23/24 April 2024 the proposal to
approve the amendments to the Articles of Association in an extraordinary meeting.
3. Related-party and intragroup transactions. Atypical and/or
unusual transactions (points 2 and 3 of Consob Communication
no. 1025564/01)
The Company implements “Related-Party Transaction Procedures” (“RPT Procedures”), adopted in compliance with art. 2391-bis
of the Italian Civil Code and Consob Regulation 17221/2010, as subsequently amended, which are also applicable to transactions
performed through the subsidiaries.
The RPT Procedures were last updated in March 2024, and the amendments were aimed, in particular, at defining the reporting
scope of the Group Compliance function, while ensuring consistency with the applicable internal regulations.
The Board of Statutory Auditors believes that these procedures comply with the pro tempore version of Consob Regulation
17221/2010. During the year, it monitored the Company’s compliance with said procedures.
The 2023 Separate Financial Statements of Assicurazioni Generali S.p.A. and the 2023 Annual Integrated Report and Consolidated
Financial Statements illustrate the effects of related-party transactions on results of operations and equity, and describe the most
significant relationships.
In 2023, two transactions classified as of “minor materiality” were brought to the attention of the RPTC, while no transactions of
“greater materiality” pursuant to the RPT Procedures were brought to the attention of this committee.
In this respect, in accordance with art. 4.6 of Consob RPT Regulation, the Board of Statutory Auditors supervised compliance with
the RPT Procedure, monitoring the process that led to the issue of the RPT Committee’s opinion pursuant to art. 7 of Consob RPT
Regulation, participating in the relevant meetings in full.
No urgent transactions with related parties took place.
The Board of Statutory Auditors’ surveillance activities ascertained that intragroup transactions performed during the year were
compliant with IVASS Regulation no. 30/2016 on intragroup transactions and concentration of risk and with the AG Policy on
intragroup transactions adopted by the Board of Directors on 15 March 2017 and most recently updated on 28 July 2023, qualify as
exempt transactions for the purposes of Consob regulations. The main intragroup activities, regulated at market prices, were carried
out through insurance, reinsurance and coinsurance agreements, claims settlement, administration and management of securities
and real estate, leases, loans and guarantees and financial consultancy, IT and administrative services. They were aimed at ensuring
the streamlining of operating functions, the use of the existing synergies, greater overall management cost-effectiveness and an
adequate service level.
The Board of Statutory Auditors deems the information on intragroup and related-party transactions provided by the Board of
Directors in the 2023 Separate Financial Statements to be adequate.
As far as the Board of Statutory Auditors is aware, no atypical and/or unusual transactions took place during 2023.
404
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
4. Monitoring the adequacy of the organisational structure.
Organisational structure of the Company and the Group, related
party transactions (point 12 of Consob Communication no.
1025564/01)
The organisational structure of the Company and the Group and its evolution are described detail in the Corporate Governance and
Share Ownership Report, to which reference should be made for additional information.
Notwithstanding the above, in addition to the organisational change already described in the 2022 Annual Report of the Board of
Statutory Auditors - which reinstated the organisational position of General Manager within the Group Head Office and reorganised
the scope of the BUs - the Board of Statutory Auditors, with respect to the organisational evolution of the Group/Assicurazioni
Generali S.p.A. in 2023, notes the progressive implementation of the Group’s structure, specifically in the following areas:
Assicurazioni Generali S.p.A. – Group Head Office:
• on 3 July 2023, the detailed structure of the function reporting to the Group Chief Mergers & Acquisitions Officer was formalised. The
structure envisages the implementation of a solid reporting model in order to strengthen the level of supervision and coordination
between the Group function and the local organisational structures, in line with the Group’s governance model and in compliance
with local regulations;
• effective 31 December 2023, Bruno Scaroni, Group Chief Transformation Officer, left the Group and the General Manager, Marco
Sesana, took over the role on an interim basis.
Insurance Division:
• effective 1 January 2024, the Group’s organisational structure was changed by creating the new Insurance Division which comprises
all the Group’s Insurance Business Units, reporting directly to the Group CEO. Giulio Terzariol was appointed CEO Insurance with
responsibility for overseeing the activities of the Country Managers and CEOs of all Insurance Business Units.
Business Units:
• on 6 April 2023, the new name of the France & Global Business Activities Business Unit (formerly Country France, Europ
Assistance & Global Business Lines) was made official, combining all Global Business Lines (Europ Assistance, Global Corporate
& Commercial, Generali Employee Benefits, Generali Global Pension and ARTE Generali) under the name of Global Business.
Finally, the Board of Statutory Auditors notes that the new organisational structure of Generali Investment Holding, the holding
company of the Group’s asset management companies, was formalised in January 2024, within the Asset & Wealth Management
Business Unit.
The Board of Statutory Auditors verified the adequacy of the overall Company and Group organisational structure, which is to be
commended for its dynamic nature, and also monitored the process for the definition and assignment of powers, with particular
attention to the separation of responsibilities for tasks and functions, pursuant to art. 74.3.b) of IVASS Regulation no. 38/2018.
In this respect, in 2023, the Board of Directors decided, inter alia, to further strengthen its role of strategic supervision and monitoring
of the exercise of delegated powers. On 28 July 2023, the BoD approved AG Policy on Information Flows to Corporate Bodies,
which aims to, inter alia, expand the reporting to the BoD with respect to the provisions of (i) the Policy on the reporting of the
Delegated Body to the BoD on the activity carried out in the exercise of delegated powers and (ii) the Guideline on the reporting of the
Delegated Body to the Board on the activity carried out in the exercise of delegated powers, both in force as of 2014. In this respect,
a number of specific internal information flows were strengthened, to enable the Directors to always form an informed opinion on
the adequacy of the allocation of the powers delegated by the BoD and to increase the awareness of the management structure
reporting to the Managing Director and Group CEO, in accordance with applicable regulations.
The Board of Statutory Auditors checked the adequacy of the Company’s instructions to the subsidiaries pursuant to art. 114.2 of
the CLFI, in order to obtain on a timely basis the information necessary to comply with the disclosure requirements envisaged by the
law and Regulation (EU) no. 596/2014.
Furthermore, pursuant to paragraphs 1 and 2 of art. 151 of the CLFI and art. 74.3.g) of IVASS Regulation no. 38/2018, the Board
of Statutory Auditors obtained the reports of the boards of statutory auditors of the main subsidiaries and/or the information sent by
said boards in response to specific requests.
Attestation and Reports
405
5. Monitoring internal control and risk management system,
administrative/accounting system and financial reporting process
(points 13 and 14 of Consob Communication no. 1025564/01)
5.1. Internal control and risk management system
The main characteristics of the internal control and risk management system are described in the Corporate Governance and
Share Ownership Report and the Group Risk Report (included in the 2023 Annual Integrated Report and Consolidated Financial
Statements).
The internal control and risk management system (“ICRMS”) consists of the rules, procedures and corporate units that – also with
regard to the Company’s role as the Italian ultimate parent company (“UIP”), pursuant to art. 210.2 of the Private Insurance Code –
enable the Company and Group to operate effectively and to identify, manage and monitor the main risks to which they are exposed.
The ICRMS is an integrated system involving the whole organisational structure: the governing bodies and the corporate units,
including the Key Functions, are required to contribute in a coordinated and interdependent manner to its operation.
Since 2018, in compliance with industry regulations, the Company has adopted a “reinforced” corporate governance model that
takes account of the quali-quantitative parameters indicated in the IVASS letter to the market of 5 July 2018. Features envisaged
by the model include: the non-executive role of the Chair, the existence of the Risks and Control Committee and a remuneration
committee, the effective and efficient operation of the Key Functions by specific organisational units (separate from the operating
functions and not outsourced), headed by individuals with appropriate skills and qualifications.
The Group Chief Audit Officer, Group Chief Compliance Officer, Group Chief Risk Officer and Group Chief Actuarial Officer Functions
are the Key Functions under IVASS Regulation no. 38/2018, in addition to the Group Chief Anti Financial Crime Officer Function. To
guarantee a consistent Group approach, the Company formulates Group directives on the governance system integrated with Group
internal control and risk management policies, which apply to all the companies.
The ICRMS was drawn up in accordance with Solvency II – including EIOPA guidelines and delegated acts – and with the national
laws and regulations that enact Solvency II. For further details, see the Group Risk Report.
As required by industry regulations, the Board of Statutory Auditors verified the adequacy of the Company and Group ICRMS, and
checked its actual operation. Specifically, and in line with art.s 8 and 74 of IVASS Regulation no. 38/2018, the Board of Statutory
Auditors:
i) took note of the opinion issued half-yearly by the Board of Directors after consulting the RCC that the ICRMS is fit for purpose;
ii) examined the RCC report issued half-yearly to support the Board of Directors;
iii) examined the summary drawn up by the Group Chief Audit Officer, Group Chief Compliance Officer, Group Chief Risk Officer,
Group Chief Actuarial Officer and Group Chief Anti-Financial Crime Functions regarding the assessment of the adequacy and
efficacy of the Internal Control and Risk Management System;
iv) attended all meetings of the RCC, obtaining information about the initiatives that the Committee decided to promote or request
on specific subjects;
v) obtained information about the development of the organisational units and the activities performed by the Key Functions,
including through meetings with the managers concerned;
vi) examined the activity reports of the Group Chief Audit Officer, Group Chief Compliance Officer, Group Chief Risk Officer, Group
Chief Actuarial Officer and Group Chief Anti Financial Crime Officer Functions, submitted to the RCC and the Board of Directors;
vii) examined the half-yearly reports on complaints of the head of the Group Chief Audit Officer Function;
viii) verified the autonomy, independence and efficiency of the Group Chief Audit Officer Function, and established and maintained
appropriate and constant ties with it;
ix) examined the Audit Plan drawn up by the Group Chief Audit Officer Function and approved by the Board of Directors, monitored
compliance with it, and received information about audit results and the effective implementation of mitigating and corrective
actions;
x) took note of the activities of the Supervisory Body formed by the Company in compliance with Lgs.Decree 231/2001 through
specific disclosures and meetings for updates on the body’s activities;
xi) obtained information from the heads of the functions involved in the ICRMS;
xii) exchanged information with the boards of statutory auditors of the subsidiaries, as required by art.s 151.1 and 151.2 of the CLFI
and by article 74.3.g) of IVASS Regulation no. 38/2018;
xiii) met and exchanged information with the Group CEO, tasked with setting up and maintaining the ICRMS;
xiv) obtained information about the development of the Group’s regulatory system, in particular the system of policies, regulations,
guidelines and procedures designed to ensure compliance with the specific regulations of the insurance industry and listed
companies applicable to or adopted by the Company.
406
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
As part of its supervision of the ICRMS, once it took office, in 2023 and in early 2024, the Board of Statutory Auditors focused, in
particular, on the following issues:
• The Digital Operational Resilience Act (“DORA”) which came into force on 16 January 2023, as part of the Digital Finance Package
adopted in 2020 by the EU Commission, to further enable and support the potential of digital finance in terms of innovation and
competition, while mitigating the risks involved. The competent European Supervisory Authorities issued the first batch of technical
standards with which financial entities must comply, while the second batch will be issued by July 2024. The regulation focuses on
the ICT risk framework, ICT incident management, digital operational resilience testing and the third-party risk framework, effective
17 January 2025. The Group launched a specific programme to ensure full compliance with the new regulations. Given the
considerable impact of these regulations, the Board of Statutory Auditors planned to closely monitor the gradual implementation
of DORA requirements;
• cyber security which continues to demand the Company’s utmost attention given the constant increase in cyber attacks and the
severity of their potential impact. The Board of Statutory Auditors planned to continue to closely monitor IT security, including the
effectiveness of vulnerability management and other security-related processes. This also applies to the potential impact of cyber
attacks on the security of personal data processing under the EU General Data Protection Regulation (“GDPR”);
• the new GCOO Strategy which was launched in 2023, setting new objectives and priorities that will be crucial to support the
effectiveness of the internal control system on ICT processes. In this respect, the key infrastructure components to be closely
monitored include the review of GOSP’s core processes (such as the cloud, access and third-party management). With respect
to software, particular attention will be paid to the consolidation of core systems in the larger countries and to software platform
transformation initiatives in small/medium-sized GLEs (e.g., “Insurance in a Box”);
• the effective implementation of the Group’s POG (“Product Oversight and Governance”) which remains a focus of attention for all
European legal entities of the Group and a key issue for the Compliance function due to the constant changes of the regulatory
framework (e.g., sustainability, value for money and various issues related to pricing practices) and the increased focus of the
Supervisory Authorities on client protection;
• the mitigation of Financial Crime risks which remains a priority, also in light of the very intense regulatory developments, both in
AML/CFT and international sanctions, and the results of the audits carried out by the Group Function, which confirmed the need
for the Group’s legal entities to
(i) improve the local governance structure, the technical knowledge of local teams and the segregation of duties;
(ii) improve the completeness and quality of data and record keeping;
(iii) fully implement external and internal requirements, particularly for certain relevant first-line defence processes, such as client
due diligence, enhanced due diligence, screening and client risk rating;
(iv) regularly perform second-level checks and fine-tune the relevant processes;
• the impacts of macroeconomic and geopolitical developments, which were closely monitored for their potential relevance, both
direct and indirect, to the Group’s business . Reference is made, inter alia, to the consequences (e.g., inflation or imminent
recession) of geopolitical tensions, such as the evolving situation in Ukraine, the Middle East, the Chinese risk-reduction strategy
proposed by the US and the EU or the general elections in many countries, on product design, asset allocation and investment
strategy. Furthermore, although the default events that hit the real estate sector (Evergrande in China and Signa in Europe) did
not affect any of the Group’s real estate investments, the development of this business in the next few months will be a focus of
attention;
• careful monitoring of the evolution of the redemption and expense rates of the portfolios of the Group’s various legal entities which
remains essential, given the possible market volatility, especially with respect to the future development of interest rate levels and
the Central Bank monetary policies;
• strengthening the valuation process of complex and illiquid financial instruments and related controls, which was identified as
a priority and as an area of attention, following the outcome of the IVASS inspection, in light of the initiatives launched by the
competent corporate functions;
• risks related to sustainability factors which are increasingly relevant, including those arising from potential greenwashing. In
this respect, the Group continues to integrate an increasing set of controls into its business processes, in line with the Group’s
strategy and the still evolving current regulations, in particular in relation to the requirements of the Sustainable Finance Disclosure
Regulation (“SFDR”) and its impact on, inter alia, asset management, Regulation (EU) 2020/852 (the “Taxonomy Regulation”),
and Directive (EU) 2022/2464 of the European Parliament and of the Council as regards corporate sustainability reporting
(“CSRD”).
• with respect to climate change risk, the Group pays specific attention to the increase in the frequency and severity of the climate-
related natural events that occurred in 2023 and their impact on business profitability mitigated, however, by reinsurance protection.
The Group continues to fine-tune its modelling capabilities and innovate product development to reduce risk exposures or the
impact of losses, also by collaborating with several public and private entities. The reinsurance strategy and processes in place
continue to be developed in accordance with Generali Group’s risk preferences, taking into account the increases in retention
levels and reinsurance costs in the current market cycle;
• finally, since an effective Group governance system is crucial to the success and sustainable development of the Group, Generali
is carefully committed to improving this system and adapt it to the evolving context, by constantly updating the system of
delegated powers, inter alia by incorporating the changes resulting from the recent Group’s reorganisations and ensuring its proper
implementation within the organisation.
Attestation and Reports
407
Moreover, the Company continued improving its governance system and its adaptation to the evolving context, also based on the
findings raised by IVASS in its inspection report on checking the operation of the corporate governance system and the effectiveness
of the supervision of financial investment risk management, also in its role as the ultimate Italian parent, as discussed in greater detail
in section 6.3.
As already described in the 2022 Annual Report by the Board of Statutory Auditors in office in the 2020-2022 three-year period, the
Company was admitted to the cooperative compliance system, which enables continuous preventive dialogue with the Italian Inland
Revenue, as from the 2020 tax year.
In March 2023, the Board of Directors approved the amendment with major changes to AG’s Tax Escalation Policy, integrating the
Tax Strategy, and adopted the Tax Strategy and Tax Escalation Group Policy.
In March 2024, the Board of Directors acknowledged the updates on the cooperative compliance system and the adoption of a
three-year tax risk monitoring plan.
The above-mentioned areas are the subject of programs for the continuous improvement of the efficiency and effectiveness of the
Group system and are specifically monitored by the Board of Statutory Auditors.
In light of all of the above and taking into account the dynamic nature of the ICRMS and the corrective action taken and planned
by the Key Functions, no factors emerged from the analyses conducted or the information obtained that could lead this Board of
Statutory Auditors to consider the Company’s internal control and risk management system as a whole not fit for purpose.
5.2. Administrative accounting system and financial reporting process
The Board of Statutory Auditors monitored the activities conducted by the Company to assess the adequacy and operation of the
administrative accounting system and the financial reporting process, on an on-going basis.
This objective was pursued by the Company through the adoption of a financial reporting model consisting of a set of principles, rules
and procedures designed to guarantee an adequate administrative and accounting system.
Consistently with the Company ICRMS, the financial reporting model involves the corporate bodies and the operating and control
units in an integrated management approach, consistently with the different levels of responsibility.
The main characteristics of the model are described in the Corporate Governance and Share Ownership Report.
No matters to be highlighted in this report emerged from the data and information exchanges with the independent auditors for the
performance of our respective tasks pursuant to art. 150.3 CLFI and art.74.3.e) of IVASS Regulation no. 38/2018.
At a meeting on 2 April 2024, the Board of Statutory Auditors examined the additional report drawn up by the independent auditors
KPMG, ex art. 11 of EU Regulation 537/2014, and noted that it identified no significant shortcomings in the internal control system
with regard to financial reporting. The key topics were discussed and analysed during the regular information exchanges between
the Board of Statutory Auditors and the independent auditors.
In overseeing the adequacy of the administrative and accounting system, the Board of Statutory Auditors also verified, pursuant
to art. 15 of Consob Regulation no. 20249 of 28 December 2017 (“Markets Regulation”), that the corporate organisation and
procedures adopted enable the Company to ascertain that its subsidiaries incorporated in and governed by the legislation of
non-EU countries, which are required to comply with Consob regulations, have an administrative/accounting system fit for the
purpose of regularly supplying the Company’s management and auditors with the business and financial data required to draw up
the consolidated financial statements. At 31 December 2023, the significant non-EU companies for the purposes of the Markets
Regulation were: Generali Personenversicherungen AG and Generali China Life Insurance Co. Ltd.
5.3. Consolidated Non-Financial Disclosure
The Board of Statutory Auditors reminds the reader that pursuant to Lgs.Decree no. 254/2016 and subsequent amendments, and to
the implementing regulation issued by Consob with resolution no. 20267 of 18 January 2018, the Company is required to draft and
publish a Consolidated Non-Financial Disclosure (“CNFD”). As required by art. 4 of Lgs.Decree no. 254/2016, the CNFD provides
non-financial information on the Company and its subsidiaries “to the extent required to ensure understanding of the group’s
business, performance and results, and its impact”.
As specified in art. 3.7 of Lgs.Decree no. 254/2016, the Board of Statutory Auditors, consistently with the functions and duties
assigned by law, monitored compliance with the legislation governing the preparation and publication of the CNFD. Specifically,
the Board of Statutory Auditors monitored the adequacy of the Group’s organisational structure with respect to its strategic socio-
environmental objectives and ascertained the presence of appropriate rules and processes for the collection, organisation and
presentation of non-financial results and information; on this last point, it also monitored compliance with the Taxonomy Regulation.
408
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
For this purpose, in 2023 and in early 2024, the Board of Statutory Auditors examined the documentation made available by the
Company and held meetings with the management team responsible for the disclosure on the CNFD – an interdisciplinary group
including the Group CFO Function and the Group Risk Management Function – and with the representatives of the independent
auditors, which are also responsible for issuing a specific attestation report pursuant to art. 3.10 of Lgs.Decree no. 254/2016.
The Board of Directors approved the CNFD on 11 March 2024; as required by Lgs.Decree 254/2016, the CNFD was drafted in
compliance with art. 8 of the Taxonomy Regulation and with Delegated Regulation (EU) 2021/2178, and also considering the criteria
issued by the International Integrated Reporting Council. The CNFD was drawn up with reference to selected GRI Standards and
indicators of the GRI G4 Financial Services Sector Disclosures, and also to indicators established with an autonomous methodology,
selected as described in the 2023 Annual Integrated Report and Consolidated Financial Statements. The selection also considered
the European Commission’s guidelines on non-financial reporting, which were subsequently taken up by the ESMA.
When drawing up the CNFD, the Company did not exercise the option to omit information concerning imminent developments and
transactions under negotiation, as allowed by art. 3.8 of Lgs.Decree 254/2016.
The Board of Statutory Auditors notes that, on 16 December 2022, Directive (EU) 2022/2464 of the European Parliament and of the
Council amending Regulation (EU) 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU, as regards
corporate sustainability reporting, was published in the Official Journal of the European Union. The transposition of the CSRD must
take place by 6 July 2024. To this end, the Treasury Department of the Ministry of Economy and Finance submitted for consultation
until 18 March 2024 the decree transposing the CSRD.
Specifically, the CSRD introduced the obligation for companies with similar characteristics to those already subject to the Non-
Financial Reporting Directive to report sustainability information by including it in the management report. This requirement will apply
as of the year beginning 1 January 2024; consequently, the figures for 2024 will be included in the 2025 management report. The
sustainability information required by the CSRD must be reported using the European Sustainability Reporting Standards (ESRS),
developed by EFRAG, in order to create a single, mandatory reporting standard at EU level. At present, it is to be subject to a limited
assurance engagement assigned to an auditor.
The Board of Statutory Auditors also noted that the independent auditors KPMG issued its report as per art. 3.10 Lgs.Decree no.
254/2016 on 2 April 2024. In its report, in addition to declaring that it had checked that the CNFD had been drawn up, KPMG
confirmed that, on the basis of the work performed, no elements had come to its attention suggesting that the CNFD had not been
drawn up, in all material respects, in compliance with arts. 3 and 4 Lgs.Decree no. 254/2016 and the reporting standard used by the
Group. In the same report, KPMG also stated that the conclusions set out in the CNFD did not extend to the information required by
art. 8 of the (EU) 2020/852 Taxonomy Regulation.
With respect to the Taxonomy Regulation, the Board of Statutory Auditors acknowledged the approach followed by Generali with
respect to the EU Taxonomy Draft Commission Notice of 21 December 2023 concerning the “interpretation and implementation
of certain legal provisions of the Disclosures Delegated Act under art. 8 of EU Taxonomy Regulation on the reporting of Taxonomy-
eligible and Taxonomy-aligned economic activities and assets”.
The Board of Statutory Auditors observes that, during its inspections, no evidence of CNFD non-conformity with the laws governing
its preparation and publication came to its attention.
6. Other activities performed by the Board of Statutory Auditors
6.1. Additional periodic checks
In addition to the matters described above, the Board of Statutory Auditors performed additional specific periodic checks in
accordance with the laws and regulations governing the insurance industry.
Specifically, the Board of Statutory Auditors, also by participating in the work of the RCC and via its own audits, carried out
supervisory activities concerning:
• compliance with the investment policy guidelines approved by the Board of Directors, pursuant to art. 8 of IVASS Regulation no.
24 of 6 June 2016;
• compliance of derivative transactions with the guidelines and limitations imposed by the Board of Directors, and of the Company’s
periodic communications to IVASS;
• the administrative procedures adopted for the handling, safekeeping and accounting of financial instruments, checking
the instructions issued to depositaries regarding periodic despatch of statements of account with suitable indications of any
encumbrances;
• the fact that the assets covering the technical reserves were free of encumbrances and fully available;
• compliance with the register of assets covering the technical reserves.
In the Notes to the Financial Statements, the Company has provided a report on share-based payment agreements, in particular the
incentive plans based on equity instruments assigned by the Parent and by other Group companies.
Attestation and Reports
409
In line with the recommendations set out in the joint Banca d’Italia/Consob/ISVAP document no. 4 of 3 March 2010 and Consob
communication no. 0003907 of 19 January 2015, the Group’s goodwill impairment test procedure, adopted in accordance with IAS
36 and the recommendations provided in the OIC document “Impairment and Goodwill” of May 2011, is submitted annually to the
advisory opinion of the RCC and, subsequently, to the prior approval of the Company’s BoD.
The Notes to the Half-year report at 30 June 2023 and to the financial statements at 31 December 2023 provide information and the
results of the valuation process carried out by the Company: the Board of Statutory Auditors, through discussions with the Manager
in charge of preparation of the Company’s financial reports and with the independent auditors, during the meetings periodically held
as part of the scheduled exchanges of information for the performance of their respective duties, monitored said process and has
nothing to report in this respect.
6.2 Activities performed in the context of evolving legislation
To the extent of its remit, during 2023 the Board of Statutory Auditors monitored the issuance of: (i) recommendations by the relevant
European and national authorities that could impact the operations of the Company and the Group, specifically, the financial and
non-financial reporting process; (ii) guidelines by industry associations on the interpretation and consequent application of some
international accounting standards, and (iii) indications on financial disclosure and on compliance with the restrictions adopted by
the EU against Russia in the wake of the conflict in Ukraine.
To this end, the Board of Statutory Auditors declares:
• that it received appropriate information from the Board of Directors, the Manager in charge of preparation of the Company’s
financial reports, the Group CEO and the relevant Company Functions on the drafting and financial reporting process for the 2023
draft separate financial statements and the 2023 Group consolidated financial statements;
• that it had constant exchanges with the independent auditors on the drafting and financial reporting process for the 2023 draft
separate financial statements and the 2023 Group consolidated financial statements and on matters that emerged during the
respective audit and control activities; no elements to be disclosed in this report emerged during the meetings;
• that it had exchanges of information, also pursuant to art. 151.2 of the CLFI, with the corresponding board of statutory auditors of
the main subsidiaries: no elements to be disclosed in this report emerged during the meetings.
With respect to the main issues to be monitored for the Group, the Board of Statutory Auditors notes that the 2023 Group Annual
Integrated Report approved by the Company’s Board of Directors on 11 March 2024 and made available to the public as required
by law, contains, in the Directors’ Report on Operations in the year ended 31 December 2023 (“We, Generali - Challenges and
opportunities of the market context”), a section headed “Climate change” and a section on “Geopolitical and financial instability”
looking at the war in Ukraine and the escalation of the conflict in the Middle East.
6.3 Additional activities of the Board of Statutory Auditors
As described in the 2022 Annual Report prepared by the Board of Statutory Auditors in charge during the 2020-2022 period, on
10 October 2022, IVASS notified the Company that inspections would be conducted, pursuant to art. 189 of the Private Insurance
Code, to ascertain the efficiency of the corporate governance system and the efficacy of monitoring on financial investment risk
management, also in relation to the Company’s position as the ultimate Italian parent.
These inspections were completed on 31 March 2023, hence before this Board of Statutory Auditors took office.
As noted by the Company in the Report on Corporate Governance and Ownership Structure 2023 and in the Directors’ Report on
Operations for the year ended 31 December 2023, the inspection report submitted to the Company’s BoD on 25 September 2023
(the “Inspection Report”) revealed several findings and some suggestions for the Board of Directors, without, however, imposing any
administrative sanctions.
On 16 October 2023, the current Board of Statutory Auditors informed Consob, as part of appropriate and transparent alignment,
about the outcome of the inspection and the actions that Generali’s Board of Directors promptly decided to take based on the
Inspection Report.
The Company replied to the Inspection Report via a response letter approved by the Board of Directors on 14 December 2023
(the “Response Letter”): in preparing this letter, the BoD was assisted by the AGC. The Board of Statutory Auditors attended the
latter’s meetings to ensure appropriate monitoring activities - also thanks to the information requested from the Board of Statutory
Auditors in office at the time of the inspection - of the process and the information flows necessary to prepare the reply to the issues
highlighted by the Authority’s findings.
In this respect, the Board of Statutory Auditors expressed its general appreciation for the process followed by the Company in
preparing the Response Letter and for the latter’s intention to consider IVASS’ findings as an incentive to constantly improve the
organisational and governance structures of the Company and its Group.
Consequently, the Board of Statutory Auditors, with respect to some of the findings highlighted by IVASS, called for an alignment with
the indications provided by the Supervisory Authorities (i) of the content of the procedure for submitting a list of the Board of Directors
410
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
and (ii) of the moment in which to first involve the RPTC in the event of transactions with related parties of greater materiality. The
Board of Statutory Auditors also called for the provision to the Board of Directors of ample and specific information in relation to the
extraordinary transactions underway, including those that qualify as RPTs.
On 20 December 2023, the Board of Statutory Auditors, again for appropriate information alignment, updated Consob on the
process implemented by the Company to prepare the Response Letter sent to IVASS, as well as on the considerations made by the
Board of Statutory Auditors on this letter. As part of its remit, the Board of Statutory Auditors will monitor the implementation of the
improvement actions outlined by Generali in the Inspection Report, as well as the six-monthly updates on the progress of the latter
that the Company will provide to IVASS.
7. Organisation and management model pursuant to Lgs.Decree
no. 231/2001
In 2023, the updating of the Company’s Organisational and Management Model (“MOG”) continued in order to incorporate the
amendments made to Lgs.Decree no. 231/2001 (the “Decree 231”) during the reporting period and the organisational and/or
operational changes that involved the Company.
Specifically, updating continued in order to transpose the new legislation introduced with reference to the following regulations:
• the new rules on whistleblowing (Lgs.Decree no. 24/2023);
• the measures of the Legislator aimed at supplementing the “list” of crimes under Lgs.Decree no. 231/01 and, specifically, the
new crime of “false or omitted declarations for the issue of the preliminary certificate” (art. 54 of Lgs.Decree no. 19/2023), and the
crimes of “fraudulent transfer of valuables” (art. 512 bis of the Criminal Code), “disturbance in tenders” (art. 353 of the Criminal
Code) and “disturbance in the procedure for the selection of contractor” (art. 353 bis of the Criminal Code) introduced by Law no.
137 of 9 October 2023.
The Board of Statutory Auditors viewed and obtained information about the organisational and procedural activities conducted
pursuant to Decree 231. The main aspects connected with the organisational and procedural activities conducted by the Company
pursuant to Decree 231 are illustrated in the Corporate Governance and Share Ownership Report.
No noteworthy facts and/or circumstances emerged from the report submitted by the Surveillance Body on its activities.
8. Ratification of the Corporate Governance Code, Composition
of the Board of Directors, and remuneration (point 17 of Consob
Communication 1025564/01)
As from 1 January 2021, the Company ratified the Corporate Governance Code (hereinafter, the “CG Code”) issued by the Corporate
Governance Committee promoted by Borsa Italiana S.p.A. and applicable to the Company as from that date. The check-list for
compliance with the principles and criteria of the Corporate Governance Code is set out in the Information Compendium to the 2023
Corporate Governance and Share Ownership Report published on the Company website, to which reference should be made.
In line with that noted in the 2022 Annual Report prepared by the former Board of Statutory Auditors, also taking into account the
recommendations in the communication of the Chair of the Corporate Governance Committee of 14 December 2023, the Board
of Statutory Auditors continued to assess how the Code is actually implemented, with reference to the principles and application
criteria, and has no comments to make.
The Board of Statutory Auditors notes that the Board of Directors evaluated its own and the Board Committees’ operation, size and
composition, taking the principles and recommendations of the Code into account.
In line with the Corporate Governance Code’s Recommendations, the AGC took on the tasks already pertaining to the CGS
concerning the board review process and the periodic checking of the fulfilment of the requirements by members of the Board of
Directors and the Board of Auditors.
The 2023 Board Review of the size, composition and functioning of the BoD and the Board Committees envisaged by the CG Code
took place by means of a detailed questionnaire and individual confidential interviews conducted by the independent consultant
Spencer Stuart Italia s.r.l., who also analysed the replies.
The process and the results of the 2023 Board Review were presented to and discussed by the Board
of Directors at its meeting on 21 February 2024, attended by the Board of Statutory Auditors. The main
strengths and areas for attention identified by the 2023 Board review are detailed in the 2023 Corporate
Governance and Share Ownership Report.
In early 2024, in line with the recommendations of Rule Q.1.7 of the Rules of Conduct for the Board of Statutory Auditors of Listed
Companies drawn up by the National Board of Accountants and Auditors (CNDCEC), the Board of Statutory Auditors conducted a
Attestation and Reports
411
self-assessment of its composition and operation, and discussed the findings at a meeting on 20 February 2024.
In the same meeting on 20 February 2024, the Board of Statutory Auditors also checked the correct application of the criteria and
the process commenced by the Board of Directors to assess the independence of independent directors and statutory auditors.
In light of the Company policies and operating guidelines, the Board of Directors conducted its own assessment as to whether
the independence requirement was met, on the basis of all the information available to the Company and specific supplementary
declarations designed to obtain from self-declared independent directors and statutory auditors accurate information about the
existence of any commercial, financial or professional relationships, self-employment or employment relations or relationships of a
financial or professional nature, that are of significance under the Corporate Governance Code and the CFBA.
The Board of Statutory Auditors also noted the amendments made to art. 76 of the Private Insurance Code by art. 3 of Lgs.Decree
no. 84 of 14 July 2020, enacting Directive (EU) 2017/828 (SHRD II), with specific reference to the addition of competence and
correctness criteria to the professionalism, respectability and independence requirements for company officers and heads of Key
Functions, whose determination is delegated to a regulation of the Ministry for Economic Development, after consultation with IVASS.
In this connection, the Board of Statutory Auditors examined Ministerial Decree no. 88 of 2 May 2022 (“Regulation concerning
requirements and suitability criteria for the performance of the duties of corporate officers and persons responsible for key functions
pursuant to art. 76 of the insurance code, as per legislative decree no. 209 of 7 September 2005”), in force since 1 November 2022
and applicable to appointments after that date.
In this respect, this Board of Statutory Auditors, immediately after its appointment, on 18 May 2023, conducted the self-assessment
pursuant to Ministerial Decree 88/22, ascertaining, for each member, the existence of the criteria of fairness and the requirements of
respectability, competence, professionalism, independence as well as the availability of time required by law.
The Board of Statutory Auditors also checked the members’ compliance with the requirement on the limitations on the number of
offices pursuant to art. 16 of the above Ministerial Decree 88/22.
At the same meeting of 18 May 2023, as part of the assessment of the adequacy in terms of collective composition, also required
by art. 10 and 11 of Ministerial Decree 88/22, the Board of Statutory Auditors assessed the collective composition of the body as
adequate and appropriately diversified, also noting the correspondence between the actual composition of the body resulting from
the appointment process and the qualitative-quantitative composition identified as optimal for the control body by the then outgoing
Board of Statutory Auditors through the document “Considerations of the outgoing Board of Statutory Auditors consistently with the
CNDCEC Rules of Conduct of the Board of Statutory Auditors of Listed Companies of 26 April 2018”.
The Board of Statutory Auditors acknowledged IVASS Provision no. 142 of 5 March 2024, which amended Regulations nos. 29/2016
and 38/2018 concerning the requirements and criteria for the suitability of corporate officers and those who perform key functions
to hold office.
Finally, the Board of Statutory Auditors notes that the Board of Directors adopted a specific policy and a top management succession
plan.
The Board of Statutory Auditors has no comments to make about the consistency of the remuneration policy with the recommendations
of the CG Code and its compliance with IVASS Regulation no. 38/2018.
9. Independent audit (points 4, 7, 8 and 16 of Consob
Communication no. 1025564/01)
9.1. Activities of the Board of Statutory Auditors in financial year 2023
The independent auditors KPMG engaged to audit the separate financial statements of the Company and the Group consolidated
financial statements for the nine years 2021-2029 verified during 2023 that the accounts were properly kept and transactions
properly recognised in the accounting records.
On 2 April 2024, the independent auditors issued their reports pursuant to arts. 14 and 16 of Lgs.Decree 39/2010 for, respectively,
the separate financial statements and the Group consolidated financial statements as at and for the year ended 31 December 2023.
The reports indicate that the financial statements were drawn up clearly and give a true and fair view of the financial position, results
of operations and cash flows as at and for the year ended 31 December 2023, in compliance with the applicable standards and
regulations.
In connection with the reports, KPMG also expressed an opinion on the conformity of the separate and consolidated financial
statements with Regulation (EU) 2019/815 (“ESEF Regulation”).
The Manager in charge of preparation of the Company’s financial reports and the Managing Director/Group CEO issued the
declarations and certifications required by art. 154-bis of the CLFI as regards the Company’s separate financial statements and the
consolidated financial statements as at and for the year ended 31 December 2023.
412
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Within the terms of its remit, the Board of Statutory Auditors monitored the general layout of the separate financial statements and
the consolidated financial statements in accordance with legislation and specific regulations governing the preparation of insurance
companies’ financial statements.
The Board of Statutory Auditors declares that the Group consolidated financial statements were drawn up in accordance with
the IAS/IFRS issued by the IASB and endorsed by the EU, in compliance with EU Regulation 1606 of 19 July 2002 and the CLFI,
and with the Private Insurance Code. The consolidated financial statements were also drawn based on the mandatory templates
pursuant to ISVAP Regulation no. 7 of 13 July 2007 as subsequently amended, and the provisions of Consob Communication
no. 6064293 of 28 July 2006. The Notes to the Financial Statements illustrate the measurement criteria used, and provide the
information required by current legislation.
The Directors’ Report on Operations annexed to the separate financial statements of the Parent illustrates business performance,
indicating current and prospective trends, and the Group’s development and reorganisation process.
Through its attendance at the meetings of the RCC at which the Manager in charge of preparation of the Company’s financial reports
and the managers of the independent auditors were also present, the Board of Statutory Auditors reported to the Board of Directors
on 11 March 2024 that it had no observations regarding the correct application of the accounting principles and the consistency of
their use in the drafting of the consolidated financial statements.
On 2 April 2024, KPMG provided the Board of Statutory Auditors, in its capacity as Internal Control and Audit Committee, with its
additional report pursuant to art. 11 of EU Reg. 537/2014. In compliance with the terms of art. 19.1.a of Lgs.Decree no. 39/2010,
the Board of Statutory Auditors sent the report promptly to the Board of Directors, with no observations.
During the year, the Board of Statutory Auditors held meetings with the managers of the independent auditors KPMG, also pursuant
to art. 150.3 of the CLFI and art. 74.3.e of IVASS Regulation no. 38/2018. As part of its oversight activities as per art. 19 of Lgs.
Decree 39/2010, the Board of Statutory Auditors acquired information from KPMG concerning the planning and execution of the
audit. During the meetings, significant information and data were exchanged to assist the Board of Statutory Auditors and the
independent auditors in their respective activities, and no noteworthy facts or situations emerged.
Pursuant to art. 19.1.e of Lgs.Decree no. 39/2010, the Board of Statutory Auditors, again in its capacity as Internal Control and Audit
Committee, checked and monitored the independence of the Independent Auditors. The checks found no situations that prejudiced
the independence of the independent auditors or constituted grounds for incompatibility under the applicable legislation. The above
is confirmed by the statement issued by KPMG pursuant to art. 6.2.a of EU Reg. 537/2014.
9.2. Activities of the Board of Statutory Auditors with regard to non-audit
services
With regard to non-audit services, it is noted that the Company adopted a specific procedure to govern the assignment of non-audit
services to the independent auditors and entities of the network of the independent auditors (“Guidelines for the assignment of non-
audit services to auditors”). In 2023, the Board of Statutory Auditors monitored compliance with the above-mentioned Guideline,
also in order to exclude potential risks to the auditors’ independence.
During 2023, as envisaged by art.19.1.e of Lgs.Decree 39/2010 and art. 5.4 of EU Reg. 537/2014, in its capacity as Internal Control
and Audit Committee, the Board of Statutory Auditors conducted a preliminary examination of the proposals for the assignment of
non-audit services to KPMG or to its network entities. As part of its assessments, and with the support of the Group Chief Audit
Officer Function, the Board of Statutory Auditors, including where required by the Guideline, checked the compatibility of said
services with the prohibitions set out in art. 5 of EU Reg. EU 537/2014 and with the provisions of Lgs.Decree no. 39/2010 (art. 10 et
seq.), in the Issuers’ Regulation (art.149-bis et seq.) and in the “Code of professional ethics, confidentiality and professional secrecy,
as well as independence and objectivity of the parties authorised to perform statutory audits” published on 30 March 2023 and
adopted by the State General Accounting Office of the Ministry of Economy and Finance on 23 March 2023. This Code is inspired by
the IESBA Code of Ethics, an international professional standard that is a useful reference point in relation to auditors’ independence
issues. Since the assessment found that the statutory pre-requisites were fulfilled, the Board of Statutory Auditors approved the
assignment of the services to KPMG or other entities belonging to its network.
The fees for non-audit services provided by the independent auditors or other entities belonging to its network to the Company and
its subsidiaries in the 2023 financial year are disclosed in detail in the Notes to the Financial Statements.
During the year, in its capacity as Internal Control and Audit Committee, the Board of Statutory Auditors supervised the trend of said
fees pursuant to art. 4.2 of EU Reg. 537/2014.
Attestation and Reports
413
10. Opinions issued by the Board of Statutory Auditors during the
financial year (point 9 of Consob Communication no. 1025564/01)
During the year, the Board of Statutory Auditors also issued the opinions, comments and attestations required by the applicable
legislation.
Specifically, at the meeting of the Board of Directors on 31 January 2024, the Board of Statutory Auditors expressed a favourable
opinion on the 2024 objectives of the Group Chief Audit Officer Function and, with respect to the 2024 Audit Plan, and also of the
remuneration of the Group Chief Audit Officer Function (assessment of the achievement of 2023 objectives).
At the meeting of the Board of Directors on 11 March 2024, the Board of Statutory Auditors expressed a favourable opinion pursuant
to art. 2389 of the Italian Civil Code on the proposed assignment of newly issued shares to the Managing Director/Group CEO
in connection with the resolution to increase the share capital to service the 2019 LTI Plan, and the 2021- 2023 LTI Plan, and a
favourable opinion on the results of the 2023 incentive plans for the Managing Director/Group CEO.
In 2023, the Board of Statutory Auditors also regularly made observations on the half-year reports on complaints prepared by the
Group Chief Audit Officer Function in compliance with ISVAP Regulation no. 24 of 19 May 2008 as subsequently amended. The
reports did not highlight any particular problems or organisational shortcomings. The Board of Statutory Auditors also checked that
the Company sent the reports and the Board of Statutory Auditors’ comments promptly to IVASS.
11. Complaints pursuant to art. 2408 of the Italian Civil Code.
Omissions, censurable facts or irregularities found (points 5, 6 and
18 of Consob Communication no. 1025564/01)
In 2023, after the Board of Statutory Auditors took office, no complaints pursuant to art. 2408 of the Italian Civil Code were brought
to the attention of said Board.
No censurable facts, omissions or irregularities to be reported to the Supervisory Authorities emerged from the supervisory activities
performed.
***
In light of all the considerations set out in this Report, the Board of Statutory Auditors finds no impediment to the approval of the
Separate Financial Statements of Assicurazioni Generali S.p.A. as at and for the year ended 31 December 2023, as submitted to
you by the Board of Directors.
Trieste, 2 April 2024
The Board of Statutory Auditors
Carlo Schiavone, Chairman
Sara Landini
Paolo Ratti
414
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Independent Auditor’s
Report on the
Consolidated Financial
Statements
416
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
Attestation and Reports
417
KPMG S.p.A.
Revisione e organizzazione contabile
Via Pierluigi da Palestrina, 12
34133 TRIESTE TS
Telefono +39 040 3480285
Email it-fmauditaly@kpmg.it
PEC kpmgspa@pec.kpmg.it
Ancona Bari Bergamo
Bologna Bolzano Brescia
Catania Como Firenze Genova
Lecce Milano Napoli Novara
Padova Palermo Parma Perugia
Pescara Roma Torino Treviso
Trieste Varese Verona
Società per azioni
Capitale sociale
Euro 10.415.500,00 i.v.
Registro Imprese Milano Monza Brianza Lodi
e Codice Fiscale N. 00709600159
R.E.A. Milano N. 512867
Partita IVA 00709600159
VAT number IT00709600159
Sede legale: Via Vittor Pisani, 25
20124 Milano MI ITALIA
KPMG S.p.A. è una società per azioni di diritto italiano e fa parte del
network KPMG di entità indipendenti affiliate a KPMG International
Limited, società di diritto inglese.
(This independent auditors’ report has been translated into English solely for the convenience of
international readers. Accordingly, only the original Italian version is authoritative.)
Independent auditors’ report pursuant to article 14 of Legislative
decree no. 39 of 27 January 2010, article 10 of Regulation (EU) no. 537
of 16 April 2014 and article 102 of Legislative decree no. 209 of 7
September 2005
To the shareholders of
Assicurazioni Generali S.p.A.
Report on the audit of the consolidated financial statements
Opinion
We have audited the consolidated financial statements of the Generali Group (the “Group”), which
comprise the statement of financial position as at 31 December 2023, the income statement and the
statements of comprehensive income, changes in equity and cash flows for the year then ended and
notes thereto, which include a summary of the significant accounting policies.
In our opinion, the consolidated financial statements give a true and fair view of the Group’s financial
position as at 31 December 2023 and of its financial performance and cash flows for the year then ended
in accordance with the International Financial Reporting Standards endorsed by the European Union and
the Italian regulations implementing article 90 of Legislative decree no. 209 of 7 September 2005.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISA Italia). Our
responsibilities under those standards are further described in the “Auditors’ responsibilities for the audit
of the consolidated financial statements” section of our report. We are independent of Assicurazioni
Generali S.p.A. (the “parent”) in accordance with the ethics and independence rules and standards
applicable in Italy to audits of financial statements. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.
418
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
2
Generali Group
Independent auditors’ report
31 December 2023
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in the
audit of the consolidated financial statements of the current year. These matters were addressed in the
context of our audit of the consolidated financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
Transition to the International Financial Reporting Standard 17 Insurance Contracts (IFRS 17)
Notes to the consolidated financial statements section “Accounting principles”, paragraph “Impacts of the
transition to new accounting standards” and paragraph “Insurance assets and liabilities”
Key audit matter Audit procedures addressing the key audit matter
Starting from 1 January 2023, the Group adopted the
new accounting standard IFRS 17, which significantly
modified the accounting criteria for the measurement
and recognition of insurance contracts.
The retrospective adoption of the new accounting
standard has required:
• the adoption of new accounting policies by the
Group and the introduction of significant changes
in accounting and organisational processes and
control activities;
• the restatement of the balance sheet amounts
related to insurance contracts at the transition date
of 1 January 2022 and of the balance sheet and
income statement amounts as at 31 December
2022 prepared for comparative figures;
• the development of complex valuations and
estimates, subjective by their very nature, for the
identification, measurement and recognition of
insurance contracts.
For the above reasons, we believe that the transition to
IFRS 17 is a key audit matter.
Our audit procedures, carried out with the assistance of
actuarial experts of the KPMG network, included:
• analysing of the accounting policies adopted by the
Generali Group in compliance with IFRS 17;
• understanding the processes for the transition to
IFRS 17 and the related IT environment, with
particular reference to the measurement of
insurance contract assets and liabilities;
• analysing the process for the recognition of
insurance contracts and checking, on a sample
basis, the criteria used for their aggregation at the
transition date;
• assessing the transition models adopted, checking,
on a sample basis, the appropriateness of
methodologies and the reasonableness of
assumptions, of the input data and parameters
used to determine insurance contract assets and
liabilities, at the transition date 1 January 2022;
• checking, on a sample basis, the measurement
models adopted, the appropriateness of
methodologies and the reasonableness of the
assumptions, of the input data and parameters
used to determine insurance contract assets and
liabilities at 31 December 2022;
• assessing the appropriateness of the disclosures
with respect to the impacts of the transition to the
new accounting standard IFRS 17.
Attestation and Reports
419
2
Generali Group
Independent auditors’ report
31 December 2023
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in the
audit of the consolidated financial statements of the current year. These matters were addressed in the
context of our audit of the consolidated financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
Transition to the International Financial Reporting Standard 17 Insurance Contracts (IFRS 17)
Notes to the consolidated financial statements section “Accounting principles”, paragraph “Impacts of the
transition to new accounting standards” and paragraph “Insurance assets and liabilities”
Key audit matter Audit procedures addressing the key audit matter
Starting from 1 January 2023, the Group adopted the
new accounting standard IFRS 17, which significantly
modified the accounting criteria for the measurement
and recognition of insurance contracts.
The retrospective adoption of the new accounting
standard has required:
• the adoption of new accounting policies by the
Group and the introduction of significant changes
in accounting and organisational processes and
control activities;
• the restatement of the balance sheet amounts
related to insurance contracts at the transition date
of 1 January 2022 and of the balance sheet and
income statement amounts as at 31 December
2022 prepared for comparative figures;
• the development of complex valuations and
estimates, subjective by their very nature, for the
identification, measurement and recognition of
insurance contracts.
For the above reasons, we believe that the transition to
IFRS 17 is a key audit matter.
Our audit procedures, carried out with the assistance of
actuarial experts of the KPMG network, included:
• analysing of the accounting policies adopted by the
Generali Group in compliance with IFRS 17;
• understanding the processes for the transition to
IFRS 17 and the related IT environment, with
particular reference to the measurement of
insurance contract assets and liabilities;
• analysing the process for the recognition of
insurance contracts and checking, on a sample
basis, the criteria used for their aggregation at the
transition date;
• assessing the transition models adopted, checking,
on a sample basis, the appropriateness of
methodologies and the reasonableness of
assumptions, of the input data and parameters
used to determine insurance contract assets and
liabilities, at the transition date 1 January 2022;
• checking, on a sample basis, the measurement
models adopted, the appropriateness of
methodologies and the reasonableness of the
assumptions, of the input data and parameters
used to determine insurance contract assets and
liabilities at 31 December 2022;
• assessing the appropriateness of the disclosures
with respect to the impacts of the transition to the
new accounting standard IFRS 17.
3
Generali Group
Independent auditors’ report
31 December 2023
Measurement of insurance contracts that are liabilities – liabilities for remaining coverage and
liabilities for incurred claims measured under the General Measurement Model (“GMM”) or under
the Variable Fee Approach (“VFA”)
Notes to the consolidated financial statements section “Accounting principles”, paragraph “Insurance
assets and liabilities” and paragraph “Insurance service result”
Notes to the consolidated financial statements note “18. Insurance contracts”, note “20. Income and
expenses related to insurance contracts issued and reinsurance contracts held”, note “21. Detailed
information related to insurance contracts issued and reinsurance contracts held”
Key audit matter Audit procedures addressing the key audit matter
The consolidated financial statements at 31 December
2023 include “Insurance contracts that are liabilities” of
€412.325million, accounting for about 81% of total
liabilities.
The caption includes, among other items, the liabilities
for remaining coverage and the liabilities for incurred
claims measured under GMM or VFA for €366.473 and
€9.616 respectively.
The measurement of the liabilities for remaining
coverage and of the liabilities for incurred claims under
GMM or VFA is carried out mainly through the
application of actuarial valuation techniques which, in
certain instances, entail a high level of complex and
subjective judgement relating to past and future internal
and external variables. Any changes in the underlying
assumptions may have a significant impact on the
measurement of the aforementioned components of
“Insurance contracts that are liabilities”.
For the above reasons, we believe that the
measurement of liabilities for remaining coverage under
GMM or VFA and liabilities for incurred claims included
in the caption “Insurance contracts that are liabilities” is
a key audit matter.
Our audit procedures, carried out with the assistance of
actuarial experts of the KPMG network, included:
• understanding the process for the measurement
of “Insurance contracts that are liabilities” and
the related IT environment, assessing the design
and implementation of controls and performing
procedures to assess the operating effectiveness
of material controls;
• analysing the significant changes in “Insurance
contracts that are liabilities” compared to the
previous year’s figures and discussing the results
with the relevant internal departments;
• checking, on a sample basis, the valuation
models adopted for the measurement of
“Insurance contracts that are liabilities”, and the
reasonableness of the input data and parameters
used;
• assessing the appropriateness of the
methodology applied to determine financial and
operating assumptions used in the measurement
of “Insurance contracts that are liabilities”, as
well as the reasonableness of said assumptions;
• assessing the overall calculation of liabilities for
incurred claims, through the application of
correct actuarial techniques, by identifying,
where possible, a range of reasonable insurance
liabilities for incurred claims values;
• assessing the reasonableness of the criteria
used in determining coverage units and the
reasonableness of the movements of the
Consumer Service Margin for the period.
• assessing the appropriateness of the disclosures
about “Insurance contracts that are liabilities”.
420
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
4
Generali Group
Independent auditors’ report
31 December 2023
Measurement of insurance contracts that are liabilities – Liabilities for incurred claims under the
Premium Allocation Approach (“PAA”)
Notes to the consolidated financial statements section “Accounting principles”, paragraph “Insurance
assets and liabilities” and paragraph “Insurance service result”
Notes to the consolidated financial statements note “18. Insurance contracts”, note “20. Income and
expenses related to insurance contracts issued and reinsurance contracts held”, note “21. Detailed
information related to insurance contracts issued and reinsurance contracts held”
Key audit matter Audit procedures addressing the key audit matter
The consolidated financial statements at 31 December
2023 include “Insurance contracts that are liabilities” of
€412.315 million, accounting for about 81% of total
liabilities.
The caption includes, among others, liabilities for
remaining coverage and liabilities for incurred claims
measured under PAA for €31.215 million and €5.022
million respectively.
Liabilities for incurred claims are represented by an
estimate of fulfilment cashflows relating to insured
events that have already occurred at the reporting date,
adjusted for the time value of money and the effect of
financial risk, and by an adjustment for non-financial
risks. The estimate includes allocated and unallocated
costs due to the management of claims arising from
insured events that have occurred prior to the reporting
date.
The measurement of liabilities for incurred claims is
carried out mainly through the application of complex
actuarial valuation techniques which, in certain
instances, entail a high level of judgement relating to
past and future internal and external variables. Any
changes in the underlying assumptions may have a
significant impact on the measurement of the
aforementioned components of “Insurance contracts
that are liabilities”.
For the above reasons, we believe that the
measurement of liabilities for incurred claims included
in the caption “Insurance contracts that are liabilities” is
a key audit matter.
Our audit procedures, which we carried out with the
assistance of actuarial experts of the KPMG network,
included:
• understanding the process for the measurement
of liabilities for incurred claims and the related IT
environment, assessing the design and
implementation of controls and performing
procedures to assess the operating effectiveness
of material controls;
• analysing the significant changes in liabilities for
incurred claims compared to the previous year’s
figures and discussing the results with the
relevant internal departments;
• checking, on a sample basis, the valuation
models adopted and the reasonableness of the
input data and parameters used to determine
liabilities for incurred claims;
• assessing the overall calculation of liabilities for
incurred claims, through the application of
correct actuarial techniques, by identifying,
where possible, a range of reasonable insurance
liabilities for incurred claims values;
• assessing the appropriateness of the disclosures
about “Insurance contracts that are liabilities”.
Attestation and Reports
421
4
Generali Group
Independent auditors’ report
31 December 2023
Measurement of insurance contracts that are liabilities – Liabilities for incurred claims under the
Premium Allocation Approach (“PAA”)
Notes to the consolidated financial statements section “Accounting principles”, paragraph “Insurance
assets and liabilities” and paragraph “Insurance service result”
Notes to the consolidated financial statements note “18. Insurance contracts”, note “20. Income and
expenses related to insurance contracts issued and reinsurance contracts held”, note “21. Detailed
information related to insurance contracts issued and reinsurance contracts held”
Key audit matter Audit procedures addressing the key audit matter
The consolidated financial statements at 31 December
2023 include “Insurance contracts that are liabilities” of
€412.315 million, accounting for about 81% of total
liabilities.
The caption includes, among others, liabilities for
remaining coverage and liabilities for incurred claims
measured under PAA for €31.215 million and €5.022
million respectively.
Liabilities for incurred claims are represented by an
estimate of fulfilment cashflows relating to insured
events that have already occurred at the reporting date,
adjusted for the time value of money and the effect of
financial risk, and by an adjustment for non-financial
risks. The estimate includes allocated and unallocated
costs due to the management of claims arising from
insured events that have occurred prior to the reporting
date.
The measurement of liabilities for incurred claims is
carried out mainly through the application of complex
actuarial valuation techniques which, in certain
instances, entail a high level of judgement relating to
past and future internal and external variables. Any
changes in the underlying assumptions may have a
significant impact on the measurement of the
aforementioned components of “Insurance contracts
that are liabilities”.
For the above reasons, we believe that the
measurement of liabilities for incurred claims included
in the caption “Insurance contracts that are liabilities” is
a key audit matter.
Our audit procedures, which we carried out with the
assistance of actuarial experts of the KPMG network,
included:
• understanding the process for the measurement
of liabilities for incurred claims and the related IT
environment, assessing the design and
implementation of controls and performing
procedures to assess the operating effectiveness
of material controls;
• analysing the significant changes in liabilities for
incurred claims compared to the previous year’s
figures and discussing the results with the
relevant internal departments;
• checking, on a sample basis, the valuation
models adopted and the reasonableness of the
input data and parameters used to determine
liabilities for incurred claims;
• assessing the overall calculation of liabilities for
incurred claims, through the application of
correct actuarial techniques, by identifying,
where possible, a range of reasonable insurance
liabilities for incurred claims values;
• assessing the appropriateness of the disclosures
about “Insurance contracts that are liabilities”.
5
Generali Group
Independent auditors’ report
31 December 2023
Measurement of unquoted or illiquid financial investments
Notes to the consolidated financial statements section “Accounting principles”, paragraph “Other
information”
Notes to the consolidated financial statements note “35. Fair value hierarchy”, note “36. Transfers of
financial instruments at fair value between Level 1 and Level 2”, note “37. Additional information on Level
3”, note “38. Information on fair value hierarchy of assets and liabilities not measured at fair value”
Key audit matter Audit procedures addressing the key audit matter
The consolidated financial statements at 31 December
2023 include financial instruments at levels 2 and 3 of
the fair value hierarchy provided for by IFRS 13 Fair
value measurement of €46.525 million and €43.546
million respectively, accounting for approximately 18%
of total assets.
Measuring financial instruments requires estimates,
including by using specific valuation methods, which
entail a high level of judgement and are, by their very
nature, uncertain and subjective.
For the above reasons, we believe that the
measurement of unquoted or illiquid financial
investments is a key audit matter.
Our audit procedures, which we carried out with the
assistance of experts of the KPMG network, included:
• understanding the process for the measurement of
financial instruments and the related IT
environment, assessing the design and
implementation of controls and performing
procedures to assess the operating effectiveness
of material controls;
• analysing the significant changes in financial
instruments and in the related income statement
items compared to the previous years’ figures and
discussing the results with the relevant internal
departments;
• checking, on a sample basis, the measurement of
unquoted or illiquid financial instruments (fair value
levels 2 and 3), by analysing the valuation methods
and the reasonableness of the data and
parameters used;
• assessing the appropriateness of the disclosures
about unquoted or illiquid financial instruments.
422
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
6
Generali Group
Independent auditors’ report
31 December 2023
Measurement of goodwill
Notes to the consolidated financial statements section “Accounting principles”, paragraph “Goodwill”
Notes to the consolidated financial statements note “5. Goodwill”
Key audit matter Audit procedures addressing the key audit matter
The consolidated financial statements at 31 December
2023 include goodwill of €7,841 million, mainly relating
to acquisitions carried out in previous years.
As in previous years, the Directors tested for
impairment the carrying amount of goodwill at the
reporting date, by comparing the carrying amount of
cash-generating units or groups of cash generating
units (“CGUs”) to which goodwill is allocated, to their
recoverable amount. The recoverable amount was
estimated based on the value in use approach, mainly
determined using the Dividend Discount Model.
Impairment testing requires complex valuations and a
high level of judgement, especially in relation to:
• the CGUs’ expected cash flows, calculated by
taking into account historical cash flows, the
general economic performance and that of the
Group’s sector and the Directors’ forecasts about
the Group’s future performance;
• the financial parameters to be used to discount the
cash flows.
For the above reasons, we believe that the
measurement of goodwill is a key audit matter.
Our audit procedures, which we carried out with the
assistance of experts of the KPMG network, included:
• understanding the process adopted to prepare the
impairment tests approved by the Directors of the
parent company;
• gaining an understanding of the process used to
draft the multi-year plans approved by the
Directors, which were used to determine the CGUs’
recoverable amount to which goodwill is allocated;
• checking any discrepancies between the previous
year historical and business plan figures, in order
to check the accuracy of the forecasting process;
• analysing the criteria used to identify the CGUs
and tracing the carrying amounts of the assets and
liabilities allocated thereto to the consolidated
financial statements;
• assessing the main assumptions used by the
Directors to determine the CGUs’ value in use. Our
assessment included checking the consistency of
the method adopted with that used in previous
years and comparing the key assumptions used to
external information, where available; we carried
out these procedures with the assistance of
specialists of the KPMG network;
• checking the sensitivity analyses presented in the
notes in relation to the key assumptions used for
impairment testing;
• assessing the appropriateness of the disclosures
about goodwill.
Attestation and Reports
423
6
Generali Group
Independent auditors’ report
31 December 2023
Measurement of goodwill
Notes to the consolidated financial statements section “Accounting principles”, paragraph “Goodwill”
Notes to the consolidated financial statements note “5. Goodwill”
Key audit matter Audit procedures addressing the key audit matter
The consolidated financial statements at 31 December
2023 include goodwill of €7,841 million, mainly relating
to acquisitions carried out in previous years.
As in previous years, the Directors tested for
impairment the carrying amount of goodwill at the
reporting date, by comparing the carrying amount of
cash-generating units or groups of cash generating
units (“CGUs”) to which goodwill is allocated, to their
recoverable amount. The recoverable amount was
estimated based on the value in use approach, mainly
determined using the Dividend Discount Model.
Impairment testing requires complex valuations and a
high level of judgement, especially in relation to:
• the CGUs’ expected cash flows, calculated by
taking into account historical cash flows, the
general economic performance and that of the
Group’s sector and the Directors’ forecasts about
the Group’s future performance;
• the financial parameters to be used to discount the
cash flows.
For the above reasons, we believe that the
measurement of goodwill is a key audit matter.
Our audit procedures, which we carried out with the
assistance of experts of the KPMG network, included:
• understanding the process adopted to prepare the
impairment tests approved by the Directors of the
parent company;
• gaining an understanding of the process used to
draft the multi-year plans approved by the
Directors, which were used to determine the CGUs’
recoverable amount to which goodwill is allocated;
• checking any discrepancies between the previous
year historical and business plan figures, in order
to check the accuracy of the forecasting process;
• analysing the criteria used to identify the CGUs
and tracing the carrying amounts of the assets and
liabilities allocated thereto to the consolidated
financial statements;
• assessing the main assumptions used by the
Directors to determine the CGUs’ value in use. Our
assessment included checking the consistency of
the method adopted with that used in previous
years and comparing the key assumptions used to
external information, where available; we carried
out these procedures with the assistance of
specialists of the KPMG network;
• checking the sensitivity analyses presented in the
notes in relation to the key assumptions used for
impairment testing;
• assessing the appropriateness of the disclosures
about goodwill.
7
Generali Group
Independent auditors’ report
31 December 2023
Responsibilities of the Directors of the parent company and Board of Statutory Auditors
(“Collegio Sindacale”) for the consolidated financial statements
The Directors are responsible for the preparation of consolidated financial statements that give a true and
fair view in accordance with the International Financial Reporting Standards endorsed by the European
Union and the Italian regulation implementing article 90 of Legislative decree no. 209 of 7 September
2005 and, within the terms established by the Italian law, for such internal control as they determine is
necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
The Directors are responsible for assessing the Group’s ability to continue as a going concern and for the
appropriate use of the going concern basis in the preparation of the consolidated financial statements
and for the adequacy of the related disclosures. The use of this basis of accounting is appropriate unless
the Directors believe that the conditions for liquidating the parent or ceasing operations exist, or have no
realistic alternative but to do so.
The Collegio Sindacale is responsible for overseeing, within the terms established by the Italian law, the
Group’s financial reporting process.
Auditors’ responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISA Italia will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with ISA Italia, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
• identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control;
• obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control;
• evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Directors;
• conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to
the related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
424
Annual Integrated Report and Consolidated Financial Statements 2023
Generali Group
8
Generali Group
Independent auditors’ report
31 December 2023
the date of our auditors’ report. However, future events or conditions may cause the Group to cease
to continue as a going concern;
• evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation;
• obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remain
solely responsible for our audit opinion.
We communicate with those charged with governance, identified at the appropriate level required by ISA
Italia, regarding, among other matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with the ethics
and independence rules and standards applicable in Italy and communicate with them all relationships
and other matters that may reasonably be thought to bear on our independence, and where applicable,
the measures taken to eliminate those threats or the safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the consolidated financial statements of the current year and are,
therefore, the key audit matters. We describe these matters in our auditors’ report.
Other information required by article 10 of Regulation (EU) no. 537 of 16 April 2014
On 7 May 2019, the parent’s shareholders appointed us to perform the statutory audit of its separate and
consolidated financial statements as at and for the years ending from 31 December 2021 to 31
December 2029.
We declare that we did not provide the prohibited non-audit services referred to in article 5.1 of
Regulation (EU) no. 537 of 16 April 2014 and that we remained independent of the parent in conducting
the statutory audit.
We confirm that the opinion on the consolidated financial statements expressed herein is consistent with
the additional report to the Collegio Sindacale, in its capacity as audit committee, prepared in accordance
with article 11 of the Regulation mentioned above.
Report on other legal and regulatory requirements
Opinion on the compliance with the provisions of Commission Delegated Regulation
(EU) 2019/815
The Directors of the parent company are responsible for the application of the provisions of Commission
Delegated Regulation (EU) 2019/815 with regard to regulatory technical standards on the specification of
a single electronic reporting format (ESEF) to the consolidated financial statements at 31 December
2023 to be included in the annual financial report.
We have performed the procedures required by Standard on Auditing (SA Italia) 700B in order to express
an opinion on the compliance of the consolidated financial statements with Commission Delegated
Regulation (EU) 2019/815.
Attestation and Reports
425
8
Generali Group
Independent auditors’ report
31 December 2023
the date of our auditors’ report. However, future events or conditions may cause the Group to cease
to continue as a going concern;
• evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation;
• obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remain
solely responsible for our audit opinion.
We communicate with those charged with governance, identified at the appropriate level required by ISA
Italia, regarding, among other matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with the ethics
and independence rules and standards applicable in Italy and communicate with them all relationships
and other matters that may reasonably be thought to bear on our independence, and where applicable,
the measures taken to eliminate those threats or the safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the consolidated financial statements of the current year and are,
therefore, the key audit matters. We describe these matters in our auditors’ report.
Other information required by article 10 of Regulation (EU) no. 537 of 16 April 2014
On 7 May 2019, the parent’s shareholders appointed us to perform the statutory audit of its separate and
consolidated financial statements as at and for the years ending from 31 December 2021 to 31
December 2029.
We declare that we did not provide the prohibited non-audit services referred to in article 5.1 of
Regulation (EU) no. 537 of 16 April 2014 and that we remained independent of the parent in conducting
the statutory audit.
We confirm that the opinion on the consolidated financial statements expressed herein is consistent with
the additional report to the Collegio Sindacale, in its capacity as audit committee, prepared in accordance
with article 11 of the Regulation mentioned above.
Report on other legal and regulatory requirements
Opinion on the compliance with the provisions of Commission Delegated Regulation
(EU) 2019/815
The Directors of the parent company are responsible for the application of the provisions of Commission
Delegated Regulation (EU) 2019/815 with regard to regulatory technical standards on the specification of
a single electronic reporting format (ESEF) to the consolidated financial statements at 31 December
2023 to be included in the annual financial report.
We have performed the procedures required by Standard on Auditing (SA Italia) 700B in order to express
an opinion on the compliance of the consolidated financial statements with Commission Delegated
Regulation (EU) 2019/815.
9
Generali Group
Independent auditors’ report
31 December 2023
In our opinion, the consolidated financial statements at 31 December 2023 have been prepared in
XHTML format and have been marked up, in all material respects, in compliance with the provisions of
Commission Delegated Regulation (EU) 2019/815.
Due to certain technical limitations, some information included in the notes to the consolidated financial
statements when extracted from the XHTML format to an XBRL instance may not be reproduced in an
identical manner with respect to the corresponding information presented in the consolidated financial
statements in XHTML format.
Opinion pursuant to article 14.2.e) of Legislative decree no. 39/10 and article 123-bis.4 of
Legislative decree no. 58/98
The Directors of the parent company are responsible for the preparation of the Group’s management
report and report on corporate governance and ownership structure at 31 December 2023 and for the
consistency of such reports with the related consolidated financial statements and their compliance with
the applicable law.
We have performed the procedures required by Standard on Auditing (SA Italia) 720B in order to express
an opinion on the consistency of the management report and the specific information presented in the
report on corporate governance and ownership structure indicated by article 123-bis.4 of Legislative
decree no. 58/98 with the Group’s consolidated financial statements at 31 December 2023 and their
compliance with the applicable law and to state whether we have identified material misstatements.
In our opinion, the management report and the specific information presented in the report on corporate
governance and ownership structure referred to above are consistent with the Group’s consolidated
financial statements at 31 December 2023 and have been prepared in compliance with the applicable
law.
With reference to the above statement required by article 14.2.e) of Legislative decree no. 39/10, based
on our knowledge and understanding of the entity and its environment obtained through our audit, we
have nothing to report.
Statement pursuant to article 4 of the Consob regulation implementing Legislative
decree no. 254/16
The Directors of Assicurazioni Generali S.p.A. are responsible for the preparation of a non-financial
statement pursuant to Legislative decree no. 254/16. We have checked that the Directors had approved
such non-financial statement. In accordance with article 3.10 of Legislative decree no. 254/16, we
attested the compliance of the non-financial statement separately.
Trieste, 2 April 2024
KPMG S.p.A.
(signed on the original)
Andrea Rosignoli
Director of Audit
Annual Integrated Report and Consolidated Financial Statements 2023
426
Generali Group
GLOSSARY
% of multi-holding customers: it measures the percentage
of customers with two or more needs covered by Generali.
The needs might be covered by more than one policy / riders or
by one policy covering two or more insurance needs.
Absolute emissions of the investments in corporate
issuers: greenhouse gas emissions associated to an investment
portfolio, expressed as tons of CO
2
(tCO
2
e) equivalent.
Formula:
*
∑
Definitions:
(t): Reference date (e.g. year-end 2021).
Emissions of company
i
: tons of CO
2
(tCO
2
e) equivalent emitted
by the company - Scope 1 and Scope 2.
Exposure of AG
in company i
: total investment in € million in
the company i via the investment portfolio in scope (direct
investments of the Group general account in corporate listed
equity and bond).
EVIC of company
i
: Enterprise value including cash of the
company, in € million, measured as: market capitalization +
preferred shares + minority shares + total debt.
Absolute emissions (production-based approach) of
the investments in sovereign bonds: this metric measures
the greenhouse gases associated to the investment portfolio,
expressed as tons of CO
2
equivalent (tCO
2
e).
Formula:
∑
*
∑
Definitions:
t): Reference date (e.g. year-end 2021).
Exposure of AG in sovereign bond
i
: total investment in € million
in the sovereign bond i via the investment portfolio in scope
(direct investments of the Group general account in sovereign
bonds).
PPP-adjusted GDP of sovereign
i
: Purchase Power Parity
(PPP)-adjusted Gross Domestic Product (GDP) of sovereign i,
i.e. GDP adjusted by the PPP factor to improve the comparison
between the actual size of the economies.
Sovereign
i
production emissions: tons of CO
2
equivalent
(tCO
2
e) produced in the country i according to the production-
based approach.
Accessibility gap to variable remuneration between males
and females: difference in percentage between males’ and
females’ accessibility rate to variable remuneration across the
entire organization.
Adjusted net result: please refer to the chapter Methodological
notes on alternative performance measures for details.
Ageing and new welfare: ESG factor material to the Group’s
strategy and considering stakeholders’ expectations; it refers
to trend of increasing life expectation and reducing birth rates
that will make sizeable impacts on the financial sustainability of
the social protection systems and might lead to reduced public
welfare services. The aging of the population will also influence
the job market and consumption, with effects on productivity
and the intergenerational relations, with increased welfare costs
borne by the working population.
Agent: es force within traditional distribution networks
(exclusive agents, non-exclusive agents and employed sales
force permanently involved in the activities of promoting and
distributing Generali products).
Annual Premium Equivalent (APE): it is defined as new
business annualized regular premiums plus 10% of single
premiums.
Asset owner: who owns investments and bears the related
risks.
Average duration of bond portfolio: it is the approximate
percentage change in the price for a rate shift of 100 basis
points, taking into account also changes in cash flows.
Average duration of financial debt: average residual economic
maturity (remaining life of a debt instrument) considering the
first call option date, if applicable, of liabilities included in the
outstanding financial debt as of the reporting date, weighted by
their nominal amount.
Average training hours per capita: it is the ratio between the
total learning hours and the Group workforce.
Biodiversity degradation: ESG factor of high relevance to the
Group’s strategy and considering stakeholders’ expectations; it
refers to the rapid extinction of many animal and plant species,
with an impoverishment of biological diversity and the gene pool,
due to the land conversion, to the increase in pollution levels and
to the climate change. The progressive collapse of the natural
ecosystems represents a growing risk also for human health
as it impairs the food chain, reduces resistance to pathogens
and threatens the development of communities and economic
sectors that strongly depend on biodiversity, such as farming,
fishing, silviculture and tourism. In the face of this threat, the
activism of civil society, regulatory pressure and the supervision
of the authorities are growing, which broaden the responsibility
of companies not only as regards their own operations, but also
regarding their supply chain.
Business for Societal Impact (B4SI): it is an international
standard for companies to report their activities in the community.
The framework is internationally recognized and follows an
Inputs-Outputs-Impact (IOI) logic, assessing community
initiatives in terms of the resources committed (inputs) and the
results achieved (outputs) and impacts.
Capitals: stocks of value as inputs to the business model.
They are increased, decreased or transformed through the
organization’s business activities and outputs. The capitals are
categorized in the International <IR> Framework as:
Glossary
427
• financial capital: the pool of funds that is available to an
organization for use in the production of goods or the provision
of services, obtained through financing, such as debt, equity or
grants, or generated through operations or investments;
• manufactured capital: manufactured physical objects (as
distinct from natural physical objects) that are available to an
organization for use in the production of goods or the provision
of services;
• intellectual capital: organizational, knowledge-based intangibles;
• human capital: people’s competencies, capabilities and
experience, and their motivations to innovate;
• social and relationship capital: the institutions and the
relationships within and between communities, groups of
stakeholders and other networks, and the ability to share
information to enhance individual and collective well-being;
• natural capital: all renewable and non-renewable environmental
resources and processes that provide goods or services that
support the past, current or future prosperity of an organization.
Carbon intensity (EVIC) of the investments in corporate
issuers: this metric measures the greenhouse gases associated
to the investment portfolio, expressed as tons of CO
2
equivalent
(tCO
2
e) per € million invested, by using Enterprise Value Including
Cash (EVIC) as normalization factor for the emissions.
Formula:
*
∑
Definitions:
(t): Reference date (e.g. year-end 2021).
Emissions of company
i
: tons of CO
2
equivalent (tCO
2
e) emitted
by the company - Scope 1 and Scope 2.
Exposure of AG
in company i
: total investment in € million in
the company i via the investment portfolio in scope (direct
investments of the Group general account in corporate listed
equity and bond).
EVIC of company i: Enterprise Value Including Cash of the
company, in € million, measured as: market capitalization +
preferred shares + minority shares + total debt.
Total AG portfolio: total direct investment of the Group general
account in corporate listed equities and bond, expressed in €
million.
Carbon intensity (production-based approach) of the
investments in sovereign bonds: this metric measures the
greenhouse gases associated to the investment portfolio,
expressed as tons of CO
2
equivalent (tCO
2
e), divided by the
total Assets Under Management of the investments in sovereign
bonds, expressed in € million.
Formula:
*
∑
Definitions:
(t): Reference date (e.g. year-end 2021).
Exposure of AG in sovereign bond
i
: total investment in € million
in the sovereign bond i via the investment portfolio in scope
(direct investments of the Group general account in sovereign
bonds).
PPP-adjusted GDP of sovereign
i
: Purchase Power Parity
(PPP)-adjusted Gross Domestic Product (GDP) of sovereign i,
i.e. GDP adjusted by the PPP factor to improve the comparison
between the actual size of the economies.
Sovereign
i
production emissions: tons of CO
2
equivalent
(tCO
2
e) produced in the country i according to the production-
based approach.
Total AG portfolio in sovereign debt: total direct investment of
the Group general account in sovereign bonds, expressed in €
million.
Carbon intensity (sales) of the investments in corporate
issuers: this metric measures the greenhouse gases associated
to the investment portfolio, expressed as tons of CO
2
equivalent
(tCO
2
e) per € million invested, by using sales as normalization
factor for the emissions.
Formula:
*
∑
Definitions:
(t): Reference date (e.g. year-end 2021).
Emissions of company
i
: tons of CO
2
equivalent (tCO
2
e) emitted
by the company - Scope 1 and Scope 2.
Exposure of AG
vs company i
: total investment in € million in
the company i via the investment portfolio in scope (direct
investments of the Group general account in corporate listed
equity and bond).
Sales of company
i
: sales of the company i for the year t.
Total AG portfolio: total direct investment of the Group general
accounts in corporate listed equities and bond, expressed in €
million.
Cash and cash equivalents: they are cash and highly-liquid
short-term financial investments (readily convertible in specific
amounts of cash which are subject to an irrelevant risk of change
in value). Furthermore, this asset class includes also short-
term deposits and money-market investment funds, which are
included in the Group liquidity management.
Change in healthcare: ESG factor of high relevance to the
Group’s strategy and considering stakeholders’ expectations; it
refers to the transformation of the healthcare systems due to
demographic, technological and public policy evolution, leading
to a higher demand for increasingly advanced patient-centric
healthcare services, with growing healing and quality treatment
expectations. That means that the level of sophistication and of
healthcare service cost is growing, with an increasing integration
of the public offer with private sector initiative.
Changing nature of work: ESG factor of high relevance to the
Group’s strategy and considering stakeholders’ expectations; it
refers to the transformation in the labour market due to new
technologies, the globalisation and the growth of the service
industry which are a leading to the spread of a flatter and more fluid
organisation of work, as the diffusion of agile and flexible working
arrangements, the job rotation and smart working solutions
show. Self-employed workers and freelance collaborations are
also on the rise versus a stagnation of employment, which make
the labour market less rigid but also more precarious, irregular
and discontinuous. In terms of changes in the real economy, the
number of SMEs is increasing in Europe and we are witnessing
Annual Integrated Report and Consolidated Financial Statements 2023
428
Generali Group
a restructuring of the traditional industrial sectors and the
globalization of the production processes with an increased
complexity of the supply chains.
Climate change: ESG factor material to the Group’s strategy
and considering stakeholders’ expectations; it refers to global
warming due to the emissions rise of greenhouse gases coming
from human activities, which is intensifying extreme natural
events such as floods, storms, rise in sea level, drought, wildfire
and heat waves, with repercussions on the natural ecosystems,
human health and the availability of water resources. The policies
and efforts required to limit global warming to below 1.5°C
through the decarbonisation of the economy will lead to radical
changes in the production and energy systems, transforming
especially carbon-intensive activities, sectors and countries
and encouraging the development of clean technologies.
As effective as these efforts may be, some changes will be
inevitable, therefore making strategies to adapt and to reduce
the vulnerability to the changing climate conditions necessary.
Climate change adaptation: the process of adjustment to
actual or expected climate and its effects (IPCC AR5). Economic
activities contributing to climate change adaptation are
described in Annex II of the Commission Delegated Regulation
EU 2021/2139 of 4 June 2021 (known as Taxonomy Climate
Delegated Regulation).
Climate change mitigation: a human intervention to reduce
the sources or enhance the sinks of greenhouse gases (GHGs)
(IPCC AR5). Economic activities contributing to climate change
mitigation are described in Annex I of the Commission Delegated
Regulation EU 2021/2139 of 4 June 2021 (known as Taxonomy
Climate Delegated Regulation).
Climate-related perils: chronic and acute events related to
temperature, wind, water and solid mass that are projected to
increase in frequency and severity due to climate change (EEA,
2017&2020).
Companies operating in the thermal coal sector (identified
as customers):
• companies for which over 20% of revenues derive from coal;
• companies for which over 20% of electricity’s production
derive from coal;
• companies for which the installed coal electricity generation
capacity is greater than 5 GW;
• companies that extract more than 10 million tons of coal per
year;
• companies actively involved in building new coal capacity
(new mines and/or new coal power generation plants) and/or
new coal-dedicated transport infrastructure.
Companies operating in the unconventional oil and gas
sector (identified as issuers):
• tar sands fossil fuels: companies generating more than 5%
of their revenues from tar sands extraction or companies
operating in controversial oil sands pipelines;
• Arctic oil and gas: companies generating more than 10%
of their revenues from upstream activities related to oil/gas
exploration and production in the Arctic region;
• oil and gas extracted through fracking: companies generating
more than 10% of their revenues from upstream activities
related to the production of shale oil and gas.
Companies operating in the unconventional weapons
sector: companies that are directly involved in armaments and
weapons that violate basic humanitarian principles through their
normal use. Direct involvement includes the use, development,
production, acquisition, stockpiling, or trade of controversial
weapons or their key components/services.
Combined ratio (CoR): it represents a profitability indicator of
the P&C segment. The numerator includes:
• the insurance service expenses (total incurred claims and
insurance expenses);
• the other operating income and expenses and;
• the result of reinsurance held.
The denominator consists of the insurance contract revenues
(gross of reinsurance held).
Contractual Service Margin (CSM): reflects the estimate of
the unearned profit in the group of insurance contracts that has
not yet been recognized in profit or loss at each reporting date,
because it relates to future service to be provided.
CSM expected return: it is defined as the sum of the
unwinding of the CSM at the beginning of the period and the
additional return related to the expected realization of real-world
assumptions in excess of the risk-free returns.
CSM release: it refers to the amount of CSM liabilities
recognised to profit or loss in line with the service provided
during the reporting period.
Current Year Best Estimate Loss Ratio: it is a further detail of
the combined ratio calculated as the ratio of:
• gross current year incurred claims (including related claims
management costs) + discounting effect + onerous contract
effects + risk adjustment on current year claims + current year
costs of reinsurance held; and
• gross insurance contract revenue.
Customer: either a physical person or a legal entity that holds at
least one active insurance policy and pays a premium to Generali
accordingly, a banking product or a pension fund product (the
policy/the product is either with Generali, or other non-Generali
local brand, or white labelled).
Digital revolution and cybersecurity: ESG factor of high
relevance to the Group’s strategy and considering stakeholders’
expectations; it refers to the technological innovations introduced
by the fourth industrial revolution, including big data, artificial
intelligence, the Internet of Things, automation and block chain
which are transforming the real economy and the social habits
with the spread of services featuring a high level of customization
and accessibility. The digital transformation requires new know-
how and skills, resulting in a radical change of traditional jobs
and in the appearance of new players on the market. The growth
in complexity, interdependence and speed of innovation of the
new digital technologies are posing challenges associated with
the security of IT systems and infrastructures.
Earnings per share: it is equal to the ratio of Group net result
and to weighted average number of ordinary shares outstanding.
Glossary
429
Employees: all the Group direct people at the end of the period,
including managers, employees, sales attendants on payroll and
auxiliary staff.
Engagement rate: it is a measure that summarizes people’s
belief in company goals and objectives (rational connection),
their sense of pride (emotional connection) and their willingness
to go the extra mile to support success (behavioural connection).
It is an index composed by the average result of six specific
questions included in the Group Engagement Surveys.
Entities working hybrid: they are the organizational entities that
are implementing hybrid work models in line with the Group Next
Normal Principles.
Equal pay gap: it is the difference between males’ and females’
base salary for the same work or work of equal value, calculated
applying an advanced data analytics model based on multiple
regression. If the result is positive, the gap shows that the
gender male is the most compensated; vice-versa, if the result
is negative, the gap shows that the gender female is the most
compensated.
Equity investments: they are direct investments in quoted
and unquoted equity instruments, as well as investment funds
that are mainly exposed to equity investments, including private
equity and hedge funds.
ESG: acronym which qualifies aspects related to the environment,
social and corporate governance.
Financial asset: any asset that is:
• cash;
• an equity instrument of another entity;
• a contractual right:
- to receive cash or another financial asset from another
entity; or
- to exchange financial assets or financial liabilities with another
entity under conditions that are potentially favourable to the
entity; or
• a contract that will or may be settled in the entity’s own equity
instruments and is:
- a non-derivative for which the entity is or may be obliged
to receive a variable number of the entity’s own equity
instruments; or
- a derivative that will or may be settled other than by the
exchange of a fixed amount of cash or another financial asset
for a fixed number of the entity’s own equity instruments.
For this purpose, the entity’s own equity instruments do not
include puttable financial instruments that are classified as
equity instruments.
Financial assets linked to technical reserves whose
investment risk is borne by the policyholders, to financial
liabilities arising from investment contracts, and to
reserves arising from pension fund management: they are
investments included in the balance sheet statement, consisting
of financial assets linked to unit/index-linked policies and arising
from the management of investment contracts, and related cash
or liabilities of a nature similar to investments, such as derivative
liabilities.
Financial debt: it includes consolidated financial liabilities other
than those under operating debt, i.e. subordinated liabilities,
bond issues, and other loans obtained such as liabilities incurred
in connection with a purchase of controlling interests.
Financial liability: any liability that is:
• a contractual obligation:
- to deliver cash or another financial asset to another entity; or
- to exchange financial assets or financial liabilities with another
entity under conditions that are potentially unfavourable to
the entity; or
• contract that will or may be settled in the entity’s own equity
instruments and is:
- a non-derivative for which the entity is or may be obliged
to deliver a variable number of the entity’s own equity
instruments; or
- a derivative that will or may be settled other than by the
exchange of a fixed amount of cash or another financial asset
for a fixed number of the entity’s own equity instruments.
For this purpose, the entity’s own equity instruments do not
include puttable financial instruments that are classified as
equity instruments.
Fixed income instruments: they are direct investments in
government and corporate bonds, loans, term deposits other
than those presented as cash and cash equivalents, and
reinsurance deposits. This asset class also includes investment
funds that are mainly exposed to investments similar to direct
investments presented within this asset class and/or with a
similar risk profile.
Fulfillment Cash Flows (FCF): they are the sum of the Present
Value of Future Cash Flows (PVFCF) and the Risk Adjustment
(RA).
Gender pay gap: it is the difference between males’ and
females’ median base salary across the entire organization
regardless of the roles. It is calculated as a percentage of the
difference between males’ salary minus females’ salary, divided
by the males’ salary. If the result is positive, the gap shows that
the gender male is the most compensated; vice-versa, if the
result is negative, the gap shows that the gender female is the
most compensated.
General account investments: they are investments reported
in the financial statements (excluding financial assets categorized
as unit/index-linked contracts and deriving from investment
contract management) and cash and cash equivalents. They
also include some liabilities, with features similar to investments,
among which derivative liabilities referred to the investment
portfolio and repurchase agreements (REPOs).
General Measurement Model (GMM): it is the default
measurement model for all contracts without direct participation
features.
Geopolitical and financial instability: ESG factor of high
relevance to the Group’s strategy and considering stakeholders’
expectations; it refers to the weakening of multilateralism and of
the traditional global governance mechanism that are leading
to increased tension between countries and to the resurgence
of trade protectionism and populism. Associated with the
Annual Integrated Report and Consolidated Financial Statements 2023
430
Generali Group
changing geopolitical balance - with complex cause and effect
relationships - is the worsening of macroeconomic conditions.
The weakening of the initiative of the traditional political
institutions is compensated by the emergence of coalitions and
global coordination mechanisms promoted by the private sector
and civilian society.
GHG emissions of GRE portfolio: they are greenhouse gas
(GHG) emissions calculated based on the consumption data
collected and reviewed at building level. GHG emissions are
consolidated in tons of CO
2
equivalent (tCO
2
e) and divided into
three categories:
• Scope 1: direct GHG emissions originating from sources
owned or controlled by the Group. This category includes
emissions deriving from fossil fuel consumption attributed to
the landlord.
• Scope 2: indirect GHG emissions from energy consumption.
This category includes emissions related to electricity
consumption and district heating and cooling purchased by
the landlord;
• Scope 3: other indirect GHG emissions deriving from sources
not owned or controlled by the Group. This category includes
emissions produced by the tenants’ electricity consumption.
GHG intensity of GRE portfolio: it is the ratio between
total greenhouse gas (GHG) emissions and the surface of
the correspondent portfolio, i.e. the area covered by the fluid
producing CO
2
. It is expressed as kilograms of CO
2
equivalent
per square meter (KgCO
2
e/m
2
).
GRE portfolio aligned to the CRREM pathway: it represents
the percentage of GRE portfolio in terms of market value, which
is aligned at the end of the year to the decarbonisation pathway
defined by CRREM (Carbon Risk Real Estate Monitor).The
indicator is calculated using the following information at asset
(building) level:
• GHG intensity;
• annual CRREM target.
Gross direct written premiums: they are the gross written
premiums of direct business.
Gross written premiums (GWP): please refer to the chapter
Methodological notes on alternative performance measures for
details.
Increasing inequalities: ESG factor of high relevance to the
Group’s strategy and considering stakeholders’ expectations; it
refers to the growing gap in the distribution of wealth between
social groups and - more in general - the polarisation in accessing
self-determination opportunities. These trends are accompanied
with a decline in social mobility, leading to a protracted
permanence in the state of poverty and exclusion, mainly related
to the socio-economic conditions of the household of origin.
Insurance exposure to fossil fuel sector: it refers to direct
premiums from:
• property, engineering and marine coverage of coal assets
related to companies of the coal sector and/or
• underwriting risks related to oil and gas (conventional and
unconventional) exploration/extraction (upstream segment)
and midstream infrastructure of oil and gas extracted through
fracking and/or from tar sands, if not marginal to the client’s
core business (less than 10% of the value of covered assets).
Insurance solutions with ESG components - environmental
sphere:
• products offering coverages and services dedicated to
sustainable mobility and/or with reduced environmental
impact, including coverages offered to customers that, thanks
to their driving style, can contribute to reducing CO
2
emissions.
This category includes insurance products dedicated to
electric and hybrid vehicles, and those rewarding low annual
mileage and responsible driving behaviour, also thanks to
the use of telematics, or those designed for other means of
transport, such as bikes, scooters, etc.;
• products specifically designed to answer to coverage
needs against natural and climate risks. Risk prevention and
reduction represent a key factor in these cases;
• products covering risks connected with the production of
renewable energies. These kinds of products are designed to
cover equipment for the production of renewable energy, to
guarantee reimbursement of damage caused by atmospheric
events to solar and photovoltaic panels, or similar systems,
which can be integrated with guarantees to protect against
loss of profit deriving from the interruption or decrease of the
production of electricity;
• products targeting sudden and accidental pollution, such
as third party liability policies. These solutions, for instance,
provide reimbursement of expenses for urgent and temporary
interventions aimed at preventing or limiting the recoverable
damage. In some countries, the restoration of the polluted site
is guaranteed in order to protect environment and biodiversity;
• products supporting the certified measures taken to improve
the energy efficiency of buildings. In some cases, consultancy
is provided to customers to identify possible solutions
for optimizing energy consumption, thus reducing the
environmental impact;
• products supporting companies dealing with materials
recovery/recycling and/or start-ups that manage shared
services platforms, etc..
Insurance solutions with ESG components - social sphere:
• products aimed at enabling and enhancing social inclusion,
focusing on the disadvantaged and vulnerable sector of
the population, like the young, the elderly, the disabled, the
migrants. To this category also belong those products that
respond to specific negative life events, such as disability,
loss of independency, unemployment, dread diseases, etc.,
or to different lifestyle needs subsequently, for instance, to the
termination of the employment relationship;
• products that integrate or supplement the public health
service, designed to help manage the costs of treatment and
assistance, as well as the reduction in earnings of customers
in the event of serious illnesses or the loss of self-sufficiency;
• products that promote responsible and healthy lifestyles,
leveraging on the opportunities provided by new technologies,
the importance of preventive healthcare or other virtuous
behaviours of policyholders. To this category also belong
those Life investment products that allow customers to invest
insurance premiums into financial assets also with ESG
components.
Glossary
431
Integrated report: concise communication that illustrates how
the strategy, governance, performance and future prospects of
an organization, in the external environment in which it operates,
are used to create value in the short, medium and long term.
Investment contracts: they are contracts that have the legal
form of an insurance contract but, as they do not substantially
expose the insurer to a significant insurance risk (e.g. the
mortality risk or similar insurance risks), cannot be classified as
such. These contracts are recognized as financial liabilities.
Investment properties: they are direct investments in real
estate held in order to receive rent or to achieve targets for
capital appreciation, or for both reasons. This asset class also
includes investment funds that are mainly exposed to real
estate investments.
Investments in Digital & Technology: they are investments
for the initiatives in the Technology, Data & Digital (TDD) program,
among which initiatives for Smart Automation, security, digital
tools and Data, Analytics & AI.
Liability for Incurred Claims (LIC): it is the insurance liability
representing the fulfilment cash flows related to incurred claims
(past service).
Liability for Remaining Coverage (LRC): it is the insurance
liability representing the sum of fulfilment cash flows related to
future services and of CSM. In case of PAA application, the
LRC is valued as the difference between premium received and
insurance acquisition cash flows.
Whistleblowing reports on the Group Code of Conduct:
they are allegations of potential breaches of the Group’s Code
of Conduct that are managed in accordance with the Group’s
Process on managing reported concerns. They do not include
customer complaints.
Migrations and new households: ESG factor monitored by
the Group; it refers to the migration phenomena and increased
international mobility that are broadening the cultural diversity
of the modern globalised societies and are transforming the
preferences and market of the consumers, the workplace
and the political debate. Also the profile of modern family is
profoundly changing with a significant increase in households
made up of only one person and in single-parent families due
to greater women emancipation, growth in separations, longer
life expectation and urbanisation. As a result, consumption
habits, the distribution of resources and the social risk mitigation
mechanisms are changing, and the vulnerability of the single-
person households to situations of hardship - such as loss of
employment or disease - is growing.
New Business Margin (NBM): it is a performance indicator of
the new business of the Life segment, equal to the ratio of NBV
to PVNBP. The margin on PVNBP is intended as a prospective
ratio between profits and premiums.
New Business Value (NBV): it represents the expected value
created within the Group by the new insurance and investment
contracts issued over the reporting period. It is the sum of the
following items (net of taxes, minority interests and cost of
external reinsurance):
• New Business CSM, including potential loss component,
according to the definition of IFRS 17;
• the value of short-term business not included in CSM and the
value of investment contracts falling under IFRS 9;
• look-through profits emerging outside the Life segment
(mostly related to fees paid to internal asset managers).
Full-year NBV is calculated as the algebraic sum of the NBV for
each quarter, each of which is calculated based on beginning-
of-period operating and economic assumptions.
Net inflows: it is an indicator of cash flows generation of the
Life segment. It is equal to the amount of premiums collected
net of benefits paid.
Operating debt: it includes all the consolidated financial liabilities
related to specific balance sheet items from the consolidated
financial statements. This category also includes liabilities stated
by the insurance companies against investment contracts and
liabilities to banks and customers of banks belonging to the
Group.
Operating result: please refer to the chapter Methodological
notes on alternative performance measures for details.
Other investments: participations in non-consolidated
companies, associated companies and joint ventures (JVs),
derivative investments and receivables from banks and
customers, the latter mainly related to banking activities by
some Group companies.
Outcomes: the internal and external consequences (positive
and negative) for the capitals as a result of an organization’s
business activities and outputs.
Return on investments: iplease refer to the chapter
Methodological notes on alternative performance measures for
details.
Pandemics and extreme events: ESG factor material to the
Group’s strategy and considering stakeholders’ expectations;
it refers to the fact that the population concentration and
the deficiencies in population protection and emergency
management mechanisms are increasing the risks associated
with extreme events, such as earthquakes and tsunamis,
pandemics and health emergencies as well as other man-made
catastrophes such as technological, radiological incidents, and
terrorism. A strengthening of the system to prevent, prepare for
and respond to these events is required in order to increase the
resilience of the affected territories and communities.
Polarization of lifestyle: ESG factor of high relevance to the
Group’s strategy and considering stakeholders’ expectations; it
refers to the enhanced awareness of the connection between
health, living habits and the environmental, which is favouring
the spread of healthier lifestyles, based on the prevention and
proactive promotion of well-being, especially in the higher
income and higher education social groups. Examples of this
are the growing attention to healthy eating and to physical
activity. However, amongst the more vulnerable social brackets,
unhealthy lifestyles and behaviours at risk are continuing, if not
actually increasing, with the spread of different forms of addiction
Annual Integrated Report and Consolidated Financial Statements 2023
432
Generali Group
(drugs, alcohol, tobacco, compulsive gambling, Internet and
smartphone addiction), mental discomfort, sleep disorders,
incorrect eating habits and sedentariness, with high human and
social costs related to healthcare expenditure, loss of production
and early mortality.
Premium Allocation Approach (PAA): it is the simplified
method for the measurement of insurance contracts. It can
be applied for contracts having a coverage period shorter
than one year or when the entity reasonably expects that such
simplification would produce a measurement of the liability for
remaining coverage for the group that would not differ materially
from the one that would be produced applying the GMM.
Present Value of Future Cash Flows (PVFCF): it is the
discounted and probability weighted estimate of future cash
flows.
Present Value of New Business Premiums (PVNBP): it is the
present value of the expected future new business premiums,
allowing for lapses and other exits, discounted to point of sale
using reference rates.
Prior Year Loss Ratio: it is a further detail of the combined ratio
calculated as the ratio of:
• gross previous year incurred claims (including related claims
management costs) + experience variance and change in
assumptions on LIC + changes in previous year risk adjustment
+ previous year cots of reinsurance held; and
• gross insurance contract revenue.
Projects dedicated to the thermal coal sector (non-listed
investments in the infrastructure asset class through project
financing): projects dedicated to coal mining, coal transport, and
coal power generation.
Projects dedicated to the unconventional oil and gas
sector (non-listed investments in the infrastructure asset class
through project financing): projects dedicated to upstream,
midstream and downstream activities for unconventional oil and
gas: tar sands; oil and gas extracted through fracking and from
the Arctic region.
Regulatory complexity: ESG factor of high relevance to the
Group’s strategy and considering stakeholders’ expectations; it
refers to the increase in the production of laws and regulatory
mechanisms especially for the financial sector, in order to
regulate its complexity and to share the fight against illegal
economic activities with the sector’s participants. Therefore, the
costs for guaranteeing regulatory compliance and the need for
greater integration and simplification of the governance systems
are increasing.
Relationship Net Promoter Score, Relationship NPS: it is
an indicator calculated from customer research data. A pre-
defined market representative sample is surveyed on a quarterly
base. Specifically, customers are asked to assess their likelihood
to recommend Generali to their friends, colleagues and family
members, using a scale from 0 to 10. Thanks to this feedback,
the company is able to identify detractors (rating from 0 to 6),
passives (rating of 7 or 8) and promoters (rating of 9 or 10). In
order to calculate the RNPS, the percentage of detractors is
deducted from the percentage of promoters. The RNPS is not
expressed as a percentage but as an absolute number.
At each wave, at least 200 Generali customers and as many
customers of our European international peers (AXA, Allianz and
Zurich) are surveyed per market to guarantee the robustness of
the data surveyed.
Relevant personnel: it refers to general managers with
strategic tasks, the Heads and the highest-level personnel of
the Key Functions and the other categories of personnel whose
activity can have a significant impact on the company risk
profile in accordance to IVASS Regulation no. 38/2018, art. 2,
paragraph 1, letter m).
Resource scarcity and sharing economy: ESG factor of high
relevance to the Group’s strategy and considering stakeholders’
expectations; it refers to the increase in world population and
the excessive exploitation of natural resources such as soil, land
water, raw materials and food resources that make the transition
to circular and responsible consumption models necessary
as they reduce the resources use and the waste production.
Technological innovation and the spread of more sustainable
lifestyles encourage the spread of new consumption and
production patterns based on reuse and sharing, such as car
sharing, co-housing, co-working and crowdfunding.
Risk Adjustment (RA): corresponds to the component of
the insurance liability that captures the uncertainty the entity
bears on the amount and timing of cash flows arising from non-
financial risk.
Solvency Ratio: it is the ratio of the Eligible Own Funds to the
Group Solvency Capital requirement, both calculated according
to the definitions of the SII regime. Own funds are determined
net of proposed dividend. The ratio has to be intended as
preliminary since the definitive Regulatory Solvency Ratio will
be submitted to the supervisory authority in accordance with
the timing provided by the Solvency II regulations for the official
reporting.
Stranded asset: invested assets that may lose their economic
value in advance of the expected duration, due to regulatory
changes, market forces, technological innovation, environmental
and social problems associated with the transition to a low-
carbon economy. They are typically associated with the coal
and fossil fuel sector, with an indirect impact on the utilities and
transport sectors.
Sustainable Development Goals (SDGs): 17 objectives
contained in the 2030 Agenda for sustainable development,
launched by the United Nations.
Taxonomy-aligned economic activity: an economic activity
that is described in Annexes I and II of the Commission
Delegated Regulation EU 2021/2139 of 4 June 2021 (known
as Taxonomy Climate Delegated Regulation) adopted pursuant
to Regulation EU 2020/852 and that meets all of the technical
screening criteria laid down in those Annexes.
Taxonomy-eligible economic activity: an economic activity
that is described in Annexes I and II of the Commission
Delegated Regulation EU 2021/2139 of 4 June 2021 (known as
Glossary
433
Taxonomy Climate Delegated Regulation) adopted pursuant to
Regulation EU 2020/852 irrespective of whether that economic
activity meets any or all of the technical screening criteria laid
down in those Annexes.
Third-Party Assets Under Management (TP AUM): assets
managed by the Group on behalf of its institutional and retail
clients, and of insurance companies and pension funds. These
assets are held off the balance sheet.
Training investment: it includes all direct costs for formal
learning (e.g. salaries and travel costs of teaching and non-
teaching training staff, non-salary development and delivery
costs of training initiative, etc.), with the exception of participants’
attendance, travel and accommodation costs, participants’
and internal subject matter experts cost of lost work time while
engaged in learning, etc..
Transparency and purpose-driven businesses: ESG factor
of high relevance to the Group’s strategy and considering
stakeholders’ expectations; it refers to the fact that key
stakeholders of companies - such as investors, consumers and
employees, especially in Europe and with particular reference
to the Millennials - are ever more attentive and demanding on
the purpose and the sustainability practices of companies.
Also, the regulatory requirements for companies in terms of
reporting and transparency are increasing, making it increasingly
essential that a company demonstrate its ability to create value
for all of its stakeholders, going beyond the shareholders.
The growing number of benefit companies, cooperatives and
social enterprises stands as proof of this trend.
Undertakings not obliged to publish non-financial
information: undertakings that are not obliged to publish
non-financial information in line with the directive EU 2014/95,
which are not subject to disclosure obligations relating to EU
Taxonomy-aligned activities.
Undiscounted Combined ratio (CoR): it excludes the
discounting effect on LIC.
Unmediated access to information: ESG factor monitored
by the Group; it refers to the increasing speed, ease and
amount of information shared between people, governments
and companies thanks to the diffusion of new communication
technologies, social media and web platforms. In this way,
knowledge is increasingly accessible, multi-directional,
intergenerational and on a global scale, and is transforming
how people form opinions and mutually influence each other.
The traditional sources of information, such as newspapers,
schools, parties and religious institutions, are undergoing a
resizing of their role in mediating knowledge, with consequences
for control of the reliability of the information circulated and for
manipulating public opinion, as evidenced by the fake news
phenomenon.
Upskilled employees: employees of the Group who have
been successfully reskilled on sustainability, Next Normal, new
business/digital and behavioral skills.
Urbanization: ESG factor monitored by the Group; it refers to
the trend of human population concentrating in urban areas.
Today over 70% of Europeans live in cities, and the amount
should rise to above 80% by the year 2050. At the same time,
over the years land consumption to convert natural land into
urbanised areas has accelerated. Together with their expansion,
the cities find themselves having to take up increasingly urgent
challenges, such as social inclusion in the outskirts and the lack
of adequate housing, congestion and air pollution. Considerable
investments will therefore be necessary for urban regeneration
and to modernise infrastructure and mobility systems based on
a more sustainable planning.
Variable Fee Approach (VFA): it is the measurement model
for insurance and investment contracts with direct participation
features.
Weighted average cost of debt: it is the annualized cost of
financial debt considering the nominal amount of the liabilities at
the reporting date and the related transactions of currency and
interest rate hedging.
Women and minorities inclusion: ESG factor of high
relevance to the Group’s strategy and considering stakeholders’
expectations; it refers to the growing demands for greater
inclusion and empowerment of the diversities related to gender,
ethnic group, age, religious belief, sexual orientation and disability
conditions in the various areas of social life, from the workplace
to that of political representation and public communication.
The topic of women empowerment and reducing the gender
pay and employment gaps has taken on particular emphasis.
However, in the face of these trends an increase in forms of
intolerance, social exclusion and violence is noted, particularly
against women, ethnic and religious minorities, immigrants and
LGBTQI+ people and those with mental-physical disabilities,
especially in the lower income and lower education social
brackets.
Women in strategic positions: women in Group Management
Committee positions, Generali Leadership Group positions and
their first reporting line.
Annual Integrated Report and Consolidated Financial Statements 2023
434
Generali Group
CONTACTS
Group Integrated Reporting
integratedreporting@generali.com
Manager: Massimo Romano
AG Administration, Finance and Control
bilancioindividualecapogruppo@generali.com
Manager: Nicola Padovese
Corporate Affairs
corporateaffairs@generali.com
Manager: Giuseppe Catalano
Group Media Relations, Content and Channels
media@generali.com
Manager: Monica Provini
Group Reward & Institutional HR Governance
group_reward@generali.com
Manager: Giovanni Lanati
Group Chief Sustainability Officer
sustainability@generali.com
Manager: Lucia Silva
Investor & Rating Agency Relations
ir@generali.com
Manager: Fabio Cleva
Shareholders & Governance
governance@generali.com
Manager: Michele Amendolagine
Annual Integrated Report and
Consolidated Financial Statements 2023
prepared by
Group Integrated Reporting
Coordination
Group Communications
& Public Affairs
This document is available at
www.generali.com
Photos
Andrea Piramidal, Michele Radoslovich.
Printed by
Lucaprint S.p.A.
Concept and design
Loud Adv
