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 (CGU) of Generali Italia, Alleanza Assicurazioni, Generali Deutschland Holding, Generali CEE Holding Group, Generali Schweiz
Holding AG, Europ Assistance, Generali Holding Vienna, Generali France and the CGU Multiboutique 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 cash generating unit 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.
In detail: – Risk free rate was defined as the average value - observed during the last three months of 2019 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, except for the participation in Argentina, which has been impaired for € 20 mln. This impairment was due to the persistent uncertain macroeconomic condition affecting the Country. 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
and losses are no longer recorded in the Group financial statements. The consideration for the sale is € 404 million while the related economic impact was recorded in 2018.
(g) (+/-1%). For the Non-Life segment also a sensitivity analysis for the main non-financial assumptions has been carried out. The variation of the financial assumption 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 the Life segment, this analysis highlighted that for the CGU Generali Schweiz Holding AG a balance between recoverable amount and carrying amount is reached by increasing Ke of 0.86%. For the Asset Management segment this analysis highlighted that for the CGU Multiboutique a balance between recoverable amount and carrying amount is reached by increasing Ke of 1% and decreasing g rate of 0.25% at the same time. For the Non-life segment instead, the sensitivity analysis, of both financial and non-financial assumptions, did not highlight any negative difference between the carrying amount and the recoverable amount 5 Non-current assets or disposal group classified as held for sale
With reference to policy of divestment of non-core and not strategic assets set by Generali Group, please note the following: – Belgium In January 2019, the Group finalized the sale of its entire investment in Generali Belgium. Therefore, the related investment and the related assets and liabilities, profits and losses are no longer recorded in the Group financial statements. The consideration for the sale is € 529 million with an overall positive impact on the result of the period of € 128 million, net of taxes.
In March 2019, the Group finalized the sale of its entire investment in Generali Worldwide Insurance company limited and Generali Linked Limited. Therefore, the related investment and the related assets and liabilities, profits
Given their short-term investments nature, the reverse repurchase agreements are reclassified within ‘cash and similar instruments’. For the same reason repurchase agreements are reclassified in the same item, as well. Derivatives instruments are presented net of derivatives held as financial liabilities, hedging derivatives are excluded, as they are presented within hedged item asset classes.
Financial assets at fair value through profit or loss 1,495 0.4% 1,636 0.5%
Other held to maturity investments 0 0 8 Loans and receivables
This category mainly consisted of unquoted bonds and mortgage loans, which represent 49.7% and 18.9% of total loans, respectively. Debt securities, mainly of longterm average, account for more than 92.2% represented by fixed-rate securities.
The fair value of total loans and receivables amounted to € 35,342 million, of which € 17,582 million related to bonds.
Other available for sale financial assets 1,629 1,249 are measured at fair value and unrealized gains and losses on these assets are accounted for in shareholders’ equity in an appropriate reserve. The amortized cost of the available for sale financial assets amounted to € 281,817 million. The table below shows unrealized gains and losses and gains and losses recognized in profit or loss in the reporting period of available for sale financial assets.
Available for sale financial assets - unrealised gains and losses 31/12/2019
Available for sale financial assets: gains and losses at profit or loss 31/12/2019
Total financial assets at fair value through profit or loss 31/12/2019 31/12/2018 31/12/2019 31/12/2018 31/12/2019 31/12/2018
This category accounted for 20.4% of total investments. In detail, these investments were mainly allocated in the life segment (€ 93,787 million, which accounted for 98% of this category) whereas the residual part referred to the non-life segment (€ 1,645 million which accounted for 1.7% of this category).
(€ million) Policies where the investment risk is borne by the policyholders
The table below shows the main changes in land and buildings (investment properties) in the reporting period, i.e. those held to earn rentals or capital appreciation or both, and their fair value: Investment properties
Gross book value as at 31 December previous year 15,799 15,509
Accumulated depreciation and impairment as at 31 December previous year -2,149 -2,516
Carrying amount as at the end of the period 14,168 13,650
Accumulated depreciation and impairment as at the end of the period 2,260 2,149
Group’s exposures to government bonds, detailed by country of risk and rating, are reported at book value in the following tables: Government bonds: breakdown by country
The government bonds portfolio amounted to € 176,355 million at the end of the period, with the 56.4% of the portfolio represented by Italian, French and German debt instruments. The exposure to individual sovereign bonds is mainly allocated to their respective countries of operation.
In terms of exposure to different rating classes, the Class AAA credit rating includes German, Dutch and some supranational issuances. Class AA includes French,
Belgian, Czech, Austrian government bonds and some supranational issuances while the class BBB mainly includes Italian bonds.
The investments in corporate bonds totalled € 115,033 million at the end of the period. The portfolio was composed for 62.1% by non-financial corporate bonds and for 37.9% by financial corporate bonds.
Group’s exposures to investments in equities, detailed by sector and country of risk, are reported at fair value in the following tables: Equity investments: breakdown by sector
– Fair value hedge Fair value hedging relationships mainly relate to hedging strategies implemented in Life portfolios of subsidiaries operating in Central-Eastern Europe, with particular reference to risks arising from fluctuations in interest rates 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 and 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 neutralising risks arising from foreign exchange fluctuations of its subsidiaries whose functional currency is the Swiss franc, Czech crowns and British pound.
In general, in order to mitigate the credit risk arising from over-the-counter transactions, the Group collateralises most of them. Furthermore, a list of selected authorised counterparties is identified for the opening of new derivative transactions.
Below the detail on exposures in derivatives instruments designated as hedge accounting and other derivative instruments.
The Generali Group makes its own analysis of sensitivity to market and credit risks following the logic of Solvency II. For further information and the relevant numerical evidence please refer to the Risk Report in the Management Report. With reference to the possible impacts of Coronavirus please refer to the Outlook chapter.
In the non-life segment insurance provisions decreased slightly (-0.2% compared to 31 December 2018).
In the life segment insurance provisions increased by 12% for inflows deriving from linked products and for value changes of investments, which is reflected on the deferred policyholders’ liabilities. The overall total of other life insurance provisions includ-
(€ million) Segment Life Segment Non-Life Total 31/12/2019 31/12/2018 31/12/2019 31/12/2018 31/12/2019 31/12/2018
Carrying amount as at 31 December current year 1,815 1,867 306 276 2,121 2,143
Total 355,722 insurance risk amounted to 49.8%, whereas investment contracts with discretionary participation feature amounted to 50.2%. The investment contracts contribute 2.8% to Life portfolio and the 37.1% consist of unit- and index linked policies without significant insurance risk.
Transfer to Non-current assets or disposal group classified as held for sale 0 -42,865
Transfer to Non-current assets or disposal group classified as held for sale 0 -3,492
Group’s financial guarantee of life insurance provisions and financial liabilities of gross direct insurance is reported in the following table.
The table above shows a shift of the exposures towards less than 1% guarantee classes, due to the inflow of new business with a guarantee of less than or equal to zero.
The table below shows the amount of the life gross direct insurance provisions broken down by expected contractual residual duration.
Carrying amount as at the beginning of the period 10,584 21,231
Carrying amount as at the end of the period 26,254 10,584
Deferred policyholders’ liabilities showed an increase which mainly reflects the trend of the policyholders’ share recognized on the fair value of the investment available for sale, with particular reference to the bonds component.
The following table shows the cumulative claim payments and the ultimate cost of claims by accident year and their development from 2010 to 2019. The ultimate cost includes paid losses, outstanding reserves on reported losses, estimated reserves for IBNR claims and ULAE.
The amounts refer to direct business gross of reinsurance and recoveries amounting to € 560 million in 2019.
Estimate of ultimate cumulative claims costs: at the end of accident year 13,111 12,451 12,911 12,460 11,869 12,057 12,160 12,606 12,579 12,604 124,737 seven years later 12,511 11,782 11,830 eight years later 12,489 11,700 nine years later 12,442
With reference to the reinsurance policy, the table proves that the careful criteria for the selection of reinsurers adopted by the Group over the past allowed Generali to have a significant presence of counterparties in rating classes of high quality.
No Rating counterparties still remain; as in the past, they also include a considerable amount of captive insurance companies of large industrial Groups that do not qualify for any rating while showing a good financial strength, companies that are no longer active in the reinsurance market and not valued by the rating agencies, but not necessarily less financially sound, companies that are part of major insurance groups which benefit from high rating but who have abandoned their reinsurance activities, or, finally, of mutual and reinsurance pools.
No Rating is partially mitigated by the presence of forms of guarantee such as parental guarantee or other collateral.
The Generali Group makes its own analysis of sensitivity to insurance, not market, risks following the logic of Solvency II. For further information and the relevant numerical evidence please refer to the Risk Report in the Management Report. With reference to the possible impacts of Coronavirus please refer to the Outlook chapter.
Reserve for other unrealized gains and losses through equity -1,240 -716
The share capital is made up of 1,569,773,403 ordinary shares with a par value of € 1 each.
The reserve for currency translation differences arising from the translation of the subsidiaries’ financial statement denominated in foreign currencies amounted to € -28 million, showing an increase compared to 31st December 2018 (€ -146 million) due to the depreciation of the euro against most major currencies.
Items that may be reclassified to profit and loss in future periods 0 0
Net unrealized gains and losses on investments available for sale 4,223 -2,322
Net unrealized gains and losses on cash flows hedging derivatives 137 26
Net unrealized gains and losses on hedge of a net investment in foreign operations -41 -4
Actuarial gains or losses arising from defined benefit plans -392 81
ing 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 eventual dilution effect of potential ordinary shares.
For more details on dividend per share please refer to the Management Report.
Unrealized gains and losses on available for sale financial assets -1,658 816
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 outstand-
Result of the period Shareholders' equity before the result of the period
Result of the period of entities included in the consolidation area 10,399 8,633
Financial liabilities related to investment contracts issued by insurance companies where the investment risk is borne by the policyholders 0 0 1,676 1,515 1,676 1,515 other financial liabilities related to investment contracts 0 0 130 153 130 153
Other financial liabilities at FV 0 0 37 36 37 36
In 2019 the item Subordinated liabilities showed a decrease of € 406 million due to the following transactions.
In the first part of 2019 three perpetual subordinated obligations issued in 2009 for an amount of € 750 million were repaid partially with the issue of a subordinated liability of € 500 million. Moreover, at the end of September, thanks to a liability management transaction, a buyback offer for an amount up to € 1 billion was concluded on subordinated notes callable in 2022, financed partially through an issuance of a new subordinated green bond of € 750 million. Finally, as a result of the acquisition of Adriatic Slovenica, a subordinated liability of € 50 million also included in the consolidation perimeter of Generali Group.
As previously mentioned, during 2019 three subordinated notes, issued by the Group in 2009 for a nominal amount of € 750 million were repaid in cash and with the issuance of a new subordinated financial liability of € 500 million. Furthermore, the abovementioned liability management transaction concluded in 2019 lowered by € 1 billion the
Generali Group exposure to subordinated liabilities with call date in 2022. This latter was financed through cash and the issue of a new subordinated green bond, which amounted to € 750 million. These two transactions reduced the nominal debt by € 500 million in line with the FY19 Group strategy announced at the market during the investor day of November 2018.
The category of bonds issued includes both the issues described in the table Main senior bonds issues and a senior bond issued in May 2010, for a nominal amount of € 560 million (at 31 December 2018 the remaining amount was about € 64 million), to fund the tax recognition of goodwill related to the unusual transaction Alleanza Toro. This issue was classified as operating debt because the debt structure provides a perfect correlation between cash flows arising from their recognition of taxes and loan repayments both in terms of interest and of capital.
The fair value of bonds issued amounted to € 3,459 million.
Value of in-force business arising from insurance business combination 644 681
Gross book value as at 31 December previous year 6,144 6,192
Accumulated depreciation and impairment as at the end of the period 4,208 4,079
Deferred tax liabilities were accounted for with reference to the abovementioned intangible assets. Further information on calculation method are detailed in the paragraph Other intangible assets of the section Basis for presentation and accounting principles.
The main changes that occurred in the period and the fair value of the properties used for own activity by the Parent Company and its subsidiaries to run the activity are shown in the table below: Land and buildings (Self used)
Accumulated depreciation and impairment as at 31 December previous year -979 -1,076
Gross book value as at 31 December previous year 2,517 2,706
Accumulated depreciation and impairment as at the end of the period 1,321 1,254
The category includes receivables arising out of the different activities of the Group, such as direct insurance and reinsurance operations. The item Other receivables and its change mainly relates to collateral as guarantee of derivative operations.
Other assets 6,108 5,830 completion stage was completed within self-used properties.
The item Other changes also includes the registration of asset in leasing following to the IFRS 16 first time adoption, for which further information are detailed in the paragraph Leasing in Other information.
Carrying amount as at the end of the period 1,736 1,744
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 paragraph Contingent liabilities, commitments, guarantees, pledged assets and collaterals in Additional information.
With reference to the main outstanding litigation proceedings, it should be noted that during 2016 Generali received from Banco BTG Pactual S.A. requests for damages, by means of a notice arbitration, as provided by the Share and Purchase Agreement of BSI S.A.. In this regard, the following main developments are summarized with respect to those already reported in previous financial statements.
The item Other payables and its change mainly relates to collateral as guarantee of derivative operations.
Other liabilities also include liabilities related to defined employee benefit plans amounting to € 4,223 million (€ 3,640 million as of 31 December 2018). For details on deferred taxes please refer to paragraph 38 Income taxes of the section Notes to the income statement.
Change in the provision for unearned premiums 27 Fee and commissions income and income from financial service activities
Fee and commission income related to pension funds management 18 16
Other fees and commission income 25 24 28 Net income from financial assets at fair value through profit and loss
Total financial investments at fair value through profit or loss 31/12/2019 31/12/2018 31/12/2019 31/12/2018 31/12/2019 31/12/2018 31/12/2019 31/12/2018
Reversal of impairment 7 10 30 Income from other financial instruments and land and buildings (investment properties)
Non-life net insurance benefits and claims 13,644 13,403 -571 -635 13,073 12,768
Change in claims paid to be recovered -13 -50 15 0 2 -50
Life net insurance benefits and claims 58,677 39,837 -688 -573 57,989 39,264
Within Other administrative costs of the Life segment, the investment management expenses amounted to € 37 million (€ 54 million at 31 December 2018), the non-insurance management expenses amounted to € 9 million (€ 3 million at 31 December 2018) and are mainly referred to real estate activity.
Restructuring charges, termination employee benefit expenses and allocation to other provisions
In Italy, with respect to the 2019 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). Income realised in Germany is subject to the corporate income tax - which is calculated on a rate of 15% plus a solidarity surcharge of 5.50% - and the trade tax (Gewerbesteuer ). The trade tax rate varies depending on the municipality in which the company is situated. In 2018 the weighted average tax rate remained substantially unchanged at approximately 16.20%.
With respect to the 2019 fiscal year, the effective tax rate decreased by 1.3 percentage points vis-à-vis the previous year and was equal to 31.3%. The reduction in the effective tax rate is essentially due to an increase of tax deductible acquisition costs in China and refunds/assessments of taxes for previous years in Italy and Germany.
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, it should be used a valuation technique which however shall maximise the observable inputs.
If the fair value cannot be measured reliably, amortized cost is used as the best estimate in determining the fair value. As for measurement and disclosure, the fair value depends on its 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. The table below illustrates both the carrying amount and the fair value of financial assets and liabilities recognised in the balance sheet at 31 December 20191.
Fair value measurement 1 With reference to investments in subsidiaries, associates and joint ventures, the book value, based on the fraction of equity for associates and interests in joint ventures or on cost adjusted for any impairment losses for non-consolidated subsidiaries, was used as a reasonable proxy of their fair value.
From the table above, in line with IFRS 13 definitions, the following items, part of below mentioned balance sheet categories, are excluded: – Loans and receivables: reinsurance deposits provided and term deposits; – Other financial liabilities: reinsurance deposits received and liabilities arising from investment contracts measured at cost sold by insurance entities and liabilities subject to leasing.
– 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 must be classified in level 3.
Investments back to policies where the risk is borne by the policyholders
Other assets at fair value through profit or loss 0 70 74 144
Total liabilities at fair value 2,830 1,244 84 4,159 40 Transfers of financial instruments measured at fair value between Level 1 and Level 2
The transfers were as follows: – from level 2 to level 1 € 478 million and from level 1 to level 2 € 564 million of bonds, mainly corporate, mainly due to the different availability of information on their value and price.
Our performance Risk Report in the fair value of the underlying of such assets, their value undergoes a similar variation. For more details on the nature of Group funds please refer to the section Investments in the Notes. – Bonds
Moreover, given the analyses described above, the Group has decided to classify all the asset-backed securities items in Level 3 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 in Level 3. Therefore, given the lack of information concerning the inputs used for the determination of the price, the Group is not able to perform a sensitivity analysis on these bonds. – Financial assets where the investment risk is borne by the policyholders and related to pension funds
Their fair value is determined using the valuation methods and observations on sensitivity analysis and input described above. The following table shows a reconciliation of financial instruments measured at fair value and classified as level 3.
It includes unquoted equity securities, mainly classified into available for sale. 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. In addition, for certain securities the amortized cost is considered to be a reasonable proxy for fair value, and does not therefore apply a sensitivity analysis. – IFU funds, private equity and hedge funds
Being the asses described, by their nature, on a straightline basis sensitive to changes in the value of the underlying assets, the Group considers that, for a given change 41 Additional information on level 3
Available for sale assets 7,501 1,846 -270 -1,119 - Other available for sale financial assets 396 13 -1 -8
Financial assets at fair value through profit or loss 1,625 528 44 -123
Investments back to policies where the investment risk is borne by the policyholders
Other assets at fair value through profit or loss 74 1 0 -0
42 Information on fair value hierarchy of assets and liabilities not measured at fair value
The table here below provides information on the fair value hierarchy for the main investment classes and financial liabilities.
The category includes bonds, which valuation is described above, mortgages and other loans.
Considering their nature, the amortized cost is generally considered a good approximation of fair value and therefore classified within level 3. If appropriate, they are valued at market value, considering observable inputs, and therefore classified within level 2. – Land and buildings (investment and self-used properties )
The fair value of land and buildings (investment properties ) is mainly based on external appraisals based on methods described above. – 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 and, therefore, these investments are classified in level 3. – Subordinated debts, loans and bonds and liabilities to banks and customers
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. If measured at amortized cost as an approximation of fair value, they are classified in Level 3.
Change in the fair value of financial instruments included in the scope of application of IFRS 9 with the details of financial instruments that give rise to specific dates for cash flows that consist exclusively of payment of principal and interest.
The Group adopted the temporary exemption from the application of IFRS 9, as provided for in the amendment to IFRS 4 - Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts. The Group qualifies for temporary exemption from application of IFRS 9. As required by IFRS 4, the assessment of the applicability of the temporary exception from the application of IFRS 9 has been done as at 31 December 2015, and the conclusions are disclosed below. The assessment, as required by the standard, consists of the statement that the activities carried out by the issuer are in fact preponderantly insurance activities or related to insurance activities, assessing the ratio of the related insurance liabilities on the total liabilities of the Group. The carrying amount of liabilities for insurance operations (€ 443 billion) was in fact higher than 90% of the carrying amount of total liabilities (€ 476 billion) as of 31 December 2015 (application period required by the principle). In addition, the liabilities linked to insurance activities not included in the scope of IFRS 4 are listed below:
Change in fair value of financial instruments in scope of IFRS 9
Financial assets that give rise on specified dates to cash flows that are solely payments of principal and interest
Financial assets that do not give rise on specified dates to cash flows that are solely payments of principal and interest****
Carrying amount by risk rating grade of bonds that give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding
There are no material associated companies or joint ventures that apply IFRS 9. The main Subsidiaries that have applied IFRS 9 are banking, investment management and asset management companies. Information on their investments and the procedures for applying IFRS 9 are included in their published financial statements.
Concordia in Poland. This increase more than offset the reduction in the number of employees due to the disposals of German and Belgian businesses.
In Germany and Austria, where is allocated approximately 89% 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 granted in case of company insolvency. 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
The increase in the reference rates at the end of the year, in application of IAS 19 for the determination of the discount rate applicable to the valuation of these liabilities, leads to greater actuarial losses compared to the previous year.
Defined benefit obligation as at 31 December previous year 1,086 1,116
The defined benefit plans’ weighted-average asset allocation by asset category is as follows: Defined benefit plans: asset allocation
(%) Eurozone Switzerland United Kingdom 31/12/2019 31/12/2018 31/12/2019 31/12/2018 31/12/2019 31/12/2018
Discount rate for evaluation at reporting date 1.0 1.9 0.1 0.8 2.1 2.8
The average duration of the obligation for defined benefit plans is 15 years as at 31 December 2019 (15 years at 31 December 2018). 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
Within the next 12 months 241 221 46 Share-based compensation plans
At 31 December 2019 different incentive plans based on equity instruments granted by the Parent Company and other Group companies are outstanding.
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 malus, and provided that on that date the beneficiary has a relationship with the Company (or with other Group companies), 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 fair 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 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 determined by applying the linear interpolation of the probable positions of TSR estimated using a statistical model. The linear interpolation method is applied to a range between the maximum payout, recognized in the case of the TSR positioning at the first place, and a pay-out zero in the case where the TSR is in the last position with respect to selected peer or has a negative value. Unlike previous plans, the LTI 2019 plan does not have tranches over multiples years and the estimated fair value at the grant date of the bonus right related to the performance level in terms of relative TSR is € 7.11 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 the average Net ROE and EPS Growth, identifying the pay-out through the linear interpolation applied to the level of performance considered most probable. The range applied to the linear interpolation is included between the maximum pay-out, granted in case of a level of average Net RoE equal to or greater than 12% and a level of EPS Growth equal to or greater than 8%, and a pay-out equal to 0 in case of a level of average Net RoE equal to or lower than 10% and a level of EPS Growth equal to or lower than 3%. Finally, the cost related to the recognition of dividends paid during the three-year 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 2019 Remuneration Report. The overall cost of the LTI plans 2017, 2018 and 2019, sum of the three components described above, 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. It is lastly reported that during the year the Shareholders ’ Meeting also approved a special share Plan to the benefit of the Managing Director/Group CEO. The Plan involves the granting of a maximum of 550,000 ordinary Assicurazioni Generali shares, subject to the following conditions being met: – the Managing Director/Group CEO continuing to hold his existing Assicurazioni Generali shares, acquired with his own means, until the end of his current term in office; – attainment of two specific three-year targets, independent from each other (and each weight 50%), in terms of Total Shareholders Return (TSR) (to the maximum extent of + 46%) calculated over the period 20 June 2019 - 20 June 2022 and of EPS Growth (to the maximum extent of + 8% of CAGR), calculated over the period 2019 – 2021;
The essential characteristics of the plan, which are better described in the relevant Information Document to which the reader is referred, are indicated below: – At the beginning of the plan, the employees who decide to participate will be entitled to define the amount of their individual contribution, that is to say, the amount that they plan to accumulate to purchase Assicurazioni Generali shares at the end of the plan; – Based on the amount of the individual contribution, the participants will receive the right (options) free of charge to purchase, at the end of the plan, Assicurazioni Generali shares at a price determined at the beginning of the plan (initial price). The number of options due to each participant will be equal to the ratio between the individual contribution and the initial price; – The amount of the individual contribution will fall between a minimum of € 540 and a maximum of € 18,000 total, will be allocated by way of monthly withholding on the pay slip and will be locked-up for the three-year duration of the plan; The final price of the shares will be determined at the end of the plan and: If the share value appreciates, the plan participants: – will purchase the shares at the initial price with the amount of the individual contribution; – will receive 1 (one) matching share free of charge for every 3 (three) shares purchased; – will receive the dividend equivalent shares, free of charge, in a number equal to the ratio between counter -value of the dividends paid by Assicurazioni Generali over the three-year duration of the plan and the initial price multiplied by the number of purchased shares; A. If the share value depreciate (meaning if the final price is lower than the initial price), the plan participants will be returned the individual contribution (capital protection).
Share-based payment plans linked to the variable portion of remuneration based on performance objectives
As part of the policy on remuneration and incentives in relation to key personnel of Banca Generali Group, adopted to comply with the Supervisory Provisions2 in force, it is established that a portion of the variable remuneration, both current and deferred, takes place through the allocation of financial instruments of Banca Generali based on the rules submitted to the approval of the Shareholders’ Meeting of the Bank each year.
In particular for the key personnel, including the main network managers, the variable remuneration linked to short-term targets is paid out 25% in Banca Generali shares, subject to a retention period up to the end of the year when granted. If, however, the bonus accrued is higher than the Euro 75 thousand threshold, the following assignment and retention mechanism is applied: – 60% of the bonus is paid out up front during the year following the one of reference for 75% in cash and 25% in Banca Generali shares, subject to a retention period up until the end of the year when granted; – 20% of the bonus is paid out with a one-year deferral: for 75% in cash and 25% in Banca Generali shares, subject to a retention period up until the end of the year when granted3; – the remaining 20% of the bonus is paid out with a two-year deferral: for 75% in cash and 25% in Banca Generali shares, subject to a retention period up until the end of the year when granted.
The methodology applied for calculating the number of share due to the receivers considers: – to the numerator, the amount of variable remuneration subject to payment in shares accrued in relation to the meeting of targets set for the year in question and,
– to the denominator, the average Banca Generali share price in the three months prior to the meeting of the Board of Directors when both the draft statutory and consolidated financial statements for the year before that when the cycle of reference begins are approved.
The Remuneration Policies of the Banking Group for the year of reference, together with the authorisation to purchase treasury shares to use for it are submitted each year to the Shareholders’ Meeting that approves the financial statements of the previous year. Actual purchase of the treasury shares is also authorized by the Bank of Italy in advance. Any other compensation paid in shares in connection with the following is also part of these categories of plans: – ordinary sales incentives and programmes to hire financial consultants other than the main network managers and sales personnel with a contract of employment;
The methods for paying the variable remuneration, examined in the section above, take the shape of share-based payment transactions settled with own instruments representing capital (equity settled) for those falling under the sphere of application of IFRS 2 - Share-based payments.
(40%), conditioned both by continuation in service and surpassing access gates established each year, the period for them to accrue (vesting period) is determined for the up-front amount from 1 January to 31 December of the year of reference of the remuneration (12 months) and for the two deferred amount extended further up until 31 December of the first year that follows (24 months) and of the second year that follows (36 months)5. The actual number of shares allocated to beneficiaries can in any case vary in relation to the verification of the effective achievement targets set at the individual level. The IFRS2 charge relating to any beneficiaries belonging to banking group companies other than the parent company Banca Generali is recognised directly by these companies. Nevertheless, the Bank charges back an amount corresponding to the fair value of the plans in question at the time they are actually granted the repurchased treasury shares6.
A transaction with a former Area Manager was also stipulated during 2017. Based on the current Remuneration Policy, this transaction involved paying a portion of the indemnity for the estimated amount of 17,591 Banca Generali shares and a total fair value of an addition € 0.4 million. The share-based payment plan linked to the 2018 Remuneration Policies, approved by the Shareholders’ Meeting of 12 April 2018, has the following characteristics: – the reference price of the Banca Generali share, for the purposes of determining the number of shares to be allocated, was determined as the average of the official quotations between 28 December 2017 and 1 March 2018, at € 28.57; – The fair value of the Banca Generali share on the grant date of the shares was determined based on the market price recorded as at 12 April 2018, amounting to approximately € 27.00, later adjusted to take into account the loss of the dividends expected in the period of deferral.
Within this cycle, the shares to be allocated to key personnel totalled 138,375, of which 42,903 assigned to network managers, 80,254 relating to ordinary incentives and hiring bonuses paid to financial consultants considered key personnel owing to the commission volume accrued, 13,205 to employees and 1,417 relating to the subsidiary BGFML, for a total fair value of about € 3.2 million. A transaction with a former employee was also stipulated during the year. Based on the current Remuneration Policy, this transaction involved paying a portion of the indemnity for the amount of 2,975 Banca Generali shares.
(*) including the retirement incentive agreements 2017-2026 Framework Sales Network Loyalty Programme
In the event of death, the accrued indemnities are considered definitively acquired by are subject to settlement with the heirs applying the same methods as those applied to the other beneficiaries.
Recognition of the indemnity at the day of payment is also subordinate to surpassing banking group gates of access as defined in the Remuneration Policies in force at the time and with the rules of correctness. The number of Banca Generali shares due is determined with the same methods established for the share-based payment plans linked to the Remuneration Policies, i.e. on the basis of the average Banca Generali share price in the three months prior to the meeting of the Board of Directors when both the draft statutory and consolidated financial statements for the year before the annual plan of reference. Payment in shares of 50% of the accrued indemnity has been established for both of the annual plans activated up until now. The value of the accrued indemnity was determined based on the AUM of the potential beneficiaries of the plans at the closing date of the year of reference, respectively, while the number of grantable financial instruments was determined based on the same value of reference of the Banca Generali share applied for the Remuneration Policies of the same years. As a whole, the shares granted and under accrual to serve the three plans amount to approximately 658 thousand (581 thousand net of the estimated turnover) for a total value of € 8.2 million, of which 1.4 already recorded in the income statement.
From 2018, Banca Generali started, in each year, longterm incentive plans for the top management of the banking group, fully based on Banca Generali S.p.A. shares.
The new plans have characteristics similar to the corresponding plans activated every year by the parent company Assicurazioni Generali and based on the granting of its shares, but are even more aimed at pursing the goal of increasing the value of the Banca Generali shares by strengthening the bond between the remuneration of the beneficiaries and the performance of the banking group, although consistent with the expected results within the scope of the strategic plan of the insurance group.
10 As regards the access gates, the following is considered: > two indicators representing specific access thresholds of the banking group connected with the Total Capital Ratio and the Liquidity Capital Ratio, to whose attainment the right to grant shares is subordinate (100%); > an indicator representing an access threshold of the Generali Group connected with the Regulatory Solvency Ratio, to whose attainment the right to grant only the part of shares linked to meeting Generali Group targets is subordinate (20%).
(ii) the amount of the obligation cannot be measured with sufficient reliability.
With reference to the stock granting plans assigned by Generali France within the scope of IFRS 2, the charge recognized in the profit or loss amounted to € 5.1 million. The plans are considered as cash-settled, for which a liability is recorded on balance sheet equaling € 94.3 million.
In the course of the ordinary business, the Group may be involved in agreements or transactions which do not lead to the recognition of these commitments as assets and liabilities in the consolidated financial statements according to the IFRS definitions and requirements (contingent assets and liabilities). As at 31 December 2019 the estimate of the contingent liabilities results as of € 6 million, mainly related to some disputes for which the probability
KPI Insurance Group 20% Regulatory Solvency Ratio 1. Operating ROE, 2. rTSR 1.Net ROE medio; 2. EPS growth; 3.rTSR
As at 31 December 2019, as already mentioned in the paragraph Assets transferred that do not qualify for derecognition of the section Investments, the Group has pledged € 5,375 million of its assets. In particular, € 3,203 million have been pledged to cover loans and bonds issued, mainly related to the Group’s real estate activities, and € 1,146 million to cover its reinsurance activities. Residual part is related to collateral pledged in relation to transactions in derivatives and other operations. Additionally, as indicated in section Assets transferred that do not qualify for derecognition, € 1,461 million has been pledged in repurchase agreements (REPO) and € 8,292 million has been subject to securities lending operations. Furthermore, the Group has received assets as collateral for € 6,481 million, in particular for transactions in bonds and loans for € 4,382 million and € 1,299 million to cover Group reinsurers’ obligations.
It should be noted that the Group completed the sale of some interests held in some Countries considered noncore and non-strategic. For further information, please refer to paragraph Non-current assets or disposal group classified as held for sale in the section Information on consolidation perimeter and Group Companies.
IFRS 16 - Leases replaces the requirements in IAS 17 - Leases. The new Standard provides presentation and disclosure requirements on leasing operations, involving in particular: – the effects of first-time application of the new lease Standard, which are described in section Basis of presentation and accounting principles; – ad hoc presentation and disclosure for lessees; – ad hoc presentation and disclosure for lessors.
Main differences compared to previous IAS 17 requirements relate to presentation and disclosures related to Companies acting as lessees. Here below details on lessees and lessors activities and related disclosures can be found.
Group companies acting as lessees are mainly involved in real estate leases, mainly of offices, agencies and similar items, land leases, company cars leases and other assets leases.
Right of use assets by class of underlying assets subject to leasing
Main changes incurred during the period are reported below by class of underlying items.
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, established in accordance with the Group’s participation structure and considering the IFRS 8 requirements relating to operating segments. 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 calculated considering right of use assets and lease liabilities belonging to that unit, if any, and therefore they are tested for impairment. 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 section Goodwill.
Depreciation of properties used for own activities subject to leasing 87
Income from sub-leasing right-of use assets was 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.
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 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 section Income from other financial instruments and land and buildings (investment properties) for additional information. Income from variable lease payments that do not depend on an index or a rate amounted are not material.
There are limited activities related to automobile/vehicle leasing solutions provided by a Group financial lessor to the private and business sector.
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 (socalled
Decreto Crescita), during the 2019 financial year, Generali Group received public funds mainly related to training activities 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 section, pursuant to art. 1, paragraph 125-quinquies of the aforementioned Law 124/2017.
In the table below, drawn up pursuant to the article 149-duodecies of Consob Regulation, are reported the 2019 fees for auditing and other services to Parent company ’s audit and companies within audit company’s network.
With reference to the events resulting from the development and spread of Coronavirus, after 31 December 2019, the Group believes that they represent a non-adjusting event, pursuant to IAS 10. The Group will continue to monitor the overall evolution of the Coronavirus in order to assess the potential impacts in the business segments and in the different geographical areas in which it operates, continuing to implement all possible risk mitigation measures.
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300 Generali Group Annual Integrated Report and Consolidated Financial Statements 2019
Company disposed of/wound up/merged in: 1. Europ Assistance Belgium S.A., Bruxelles - Merged in Europ Assistance S.A.
2. Europ Assistance Versicherungs-AG, Munich - Merged in Europ Assistance S.A.
3. Europ Assistance - Companhia Portuguesa de Seguros, S.A., Lisbon - Merged in Europ Assistance S.A.
8. Generali Holding Vienna AG, Wien - Merged in Generali Versicherung AG
13. Generali Real Estate Investments B.V., Amsterdam 14. Generali Versicherung Aktiengesellschaft, Munich - Merged in Generali Deutschland Versicherung AG
Generali Investments Partners S.p.A. Società di Gestione Risparmio 086 EUR 1,000,000 G 8 97.61 Alleanza Assicurazioni S.p.A. 100.00 99.99 2.39 Generali Investments Holding S.p.A.
Genagricola - Generali Agricoltura S.p.A. 086 EUR 219,900,000 G 11 100.00 Generali Italia S.p.A. 100.00 100.00
Fondo Immobiliare Mascagni 086 EUR 2,129,012,300 G 10 1.24 Genertel S.p.A. 100.00 100.00 29.63 Alleanza Assicurazioni S.p.A.
Generali Insurance Asset Management S.p.A. Società di Gestione del Risparmio 0.10 Generali Vida Companhia de Seguros S.A.
Generali Insurance Asset Management S.p.A. Società di Gestione del Risparmio 96.04 Generali Italia S.p.A.
Axis Retail Partners S.p.A. 086 EUR 120,000 G 11 59.50 Generali Investments Holding S.p.A. 59.50 59.22
Nextam Partners S.p.A 086 EUR 472,598 G 9 100.00 Banca Generali S.p.A. 100.00 50.68
Nextam Partners SIM S.p.A. 086 EUR 1,100,000 G 8 100.00 Nextam Partners S.p.A 100.00 50.68 66.37 Generali Italia S.p.A.
D.A.S. Difesa Automobilistica Sinistri - S.p.A. di Assicurazione 100.00 50.01 303 We, Generali Consolidated Non-Financial Statement
Generali Real Estate Debt Investment Fund Italy (GREDIF ITA) 086 EUR 94,400,000 G 11 100.00
Fondo Immobiliare Mantegna 086 EUR 246,000,001 G 11 100.00 Generali Core High Street Retail Fund 100.00 99.45
Fondo Immobiliare Tiepolo 086 EUR 121,849,986 G 11 99.99 Generali Real Estate Asset Repositioning S.A. 99.99 99.34
Fondo Immobiliare Schubert - comparto 1 086 EUR 276,500,000 G 11 100.00 Generali Europe Income Holding S.A. 100.00 98.92
Fondo Immobiliare Schubert - comparto 3 086 EUR 220,970,000 G 11 100.00 Generali Italia S.p.A. 100.00 100.00
Fondo Immobiliare Segantini 086 EUR 203,450,000 G 11 100.00 Generali Real Estate Logistics Fund S.C.S. SICAV-RAIF 100.00 99.45
Generali Jeniot S.p.A. 086 EUR 3,100,000 G 11 100.00 Generali Italia S.p.A. 100.00 100.00
Generali Insurance Asset Management S.p.A. Società di Gestione del Risparmio 086 EUR 60,085,000 G 8 100.00 Generali Investments Holding S.p.A. 100.00 99.53
Dialog LebensversicherungsAktiengesellschaft 094 EUR 2,045,200 G 2 100.00 Generali Deutschland AG 100.00 100.00
Generali Health Solutions GmbH 094 EUR 25,000 G 11 100.00 Generali Deutschland AG 100.00 100.00 94.10 Generali Beteiligungs-GmbH
Generali Deutschland Versicherung AG 094 EUR 136,463,896 G 2 100.00 Generali Deutschland AG 100.00 100.00
Europ Assistance Services GmbH 094 EUR 250,000 G 11 100.00 Europ Assistance S.A. 100.00 99.99
ADVOCARD Rechtsschutzversicherung AG 094 EUR 12,920,265 G 2 100.00 Generali Deutschland AG 100.00 100.00 304 Generali Group Annual Integrated Report and Consolidated Financial Statements 2019
Generali Deutschland Finanzierungs-GmbH 094 EUR 17,895,500 G 10 100.00 Generali Deutschland Versicherung AG 100.00 100.00
Generali European Real Estate Income Investments GmbH & Co. Geschlossene Investment KG 094 EUR 409,663,042 G 10 3.24
AM Erste Immobilien AG & Co. KG 094 EUR 53,875,499 G 10 100.00 AachenMünchener Lebensversicherung AG 100.00 100.00
CENTRAL Erste Immobilien AG & Co. KG 094 EUR 4,823,507 G 10 100.00 Central Krankenversicherung Aktiengesellschaft 100.00 100.00
CENTRAL Zweite Immobilien AG & Co. KG 094 EUR 12,371,997 G 10 100.00 Central Krankenversicherung Aktiengesellschaft 100.00 100.00
FPS Immobilien Verwaltung SW 13 GmbH 094 EUR 25,000 G 11 100.00 Generali Europe Income Holding S.A. 100.00 98.92 305 We, Generali Consolidated Non-Financial Statement
Grundstücksgesellschaft Einkaufszentrum Louisen-Center Bad Homburg mbH & Co. KG 094 EUR 57,975,829 G 10 100.00 Generali Deutschland AG 100.00 100.00
GID Fonds AAREC 094 EUR 1,908,734,528 G 11 1.68 Dialog Lebensversicherungs44. 66 AachenMünchener Lebensversicherung AG
GID Fonds ALAOT 094 EUR 824,541,656 G 11 100.00 AachenMünchener Lebensversicherung AG 100.00 100.00
GID Fonds CLAOT 094 EUR 404,259,203 G 11 100.00 Cosmos Lebensversicherungs Aktiengesellschaft 100.00 100.00
GID-Fonds GPRET 094 EUR 43,567,363 G 11 91.84 Generali Pensionsfonds AG 91.84 91.84
GID Fonds ALRET 094 EUR 2,321,910,814 G 11 100.00 AachenMünchener Lebensversicherung AG 100.00 100.00
GID Fonds CERET 094 EUR 2,544,665,198 G 11 100.00 Central Krankenversicherung Aktiengesellschaft 100.00 100.00
GID Fonds DLRET 094 EUR 79,010,376 G 11 100.00 Dialog Lebensversicherungs-
GID Fonds GVRET 094 EUR 322,535,027 G 11 58.16 Generali Deutschland Versicherung AG 100.00 100.00 41.84 Dialog Versicherung Aktiengesellschaft
Cosmos Lebensversicherungs Aktiengesellschaft 1.28 Cosmos Versicherung Aktiengesellschaft 2.74 ADVOCARD Rechtsschutzversicherung AG
GID Fonds DLAET 094 EUR 69,713,220 G 11 100.00 Dialog Lebensversicherungs-
GID-Fonds ALAET 094 EUR 375,171,925 G 11 100.00 AachenMünchener Lebensversicherung AG 100.00 100.00
GID-Fonds CLTGP 094 EUR 172,999,821 G 11 100.00 Cosmos Lebensversicherungs Aktiengesellschaft 100.00 100.00
GID-Fonds ALAET II 094 EUR 473,207,235 G 11 100.00 AachenMünchener Lebensversicherung AG 100.00 100.00
Generali IARD S.A. 029 EUR 94,630,300 G 2 100.00 Generali France S.A. 100.00 98.62
Prudence Creole 029 EUR 7,026,960 G 2 95.77 Generali IARD S.A. 95.78 94.46 0.01 Generali France S.A.
SAS Lonthènes 029 EUR 529,070 G 10 100.00 Generali Vie S.A. 100.00 98.62
Ocealis S.A.S. 029 EUR 414,350 G 11 81.90 Europ Assistance Holding S.A.S. 81.90 81.89 31.75 Generali Participations Netherlands N.V.
Europ Assistance S.A. 029 EUR 46,926,941 G 2 100.00 Europ Assistance Holding S.A.S. 100.00 99.99
Europ Assistance Brokerage Solutions S.a.r.l. 029 EUR 15,000 G 11 100.00 Europ Assistance Holding S.A.S. 100.00 99.99
Generali Global Infrastructure S.A.S. 029 EUR 3,628,387 G 8 50.98 Generali Investments Holding S.p.A. 50.98 50.74
Sycomore Factory SAS 029 EUR 36,213,579 G 9 65.10 Generali Investments Holding S.p.A. 65.10 64.80
Sycomore Asset Management S.A. 029 EUR 3,600,000 G 8 100.00 Sycomore Factory SAS 100.00 64.80
GEIH France OPCI 029 EUR 149,271,500 G 11 100.00 Generali Europe Income Holding S.A. 100.00 98.92
SCI du 68 Pierre Charron 029 EUR 1,000 G 10 0.10 Generali Europe Income Holding S.A. 100.00 98.92 99.90 GEIH France OPCI
SCI Retail One 029 EUR 110,701,000 G 11 0.10 Generali Vie S.A. 100.00 98.82 99.90 Retail One Fund OPPCI
SCI 42 Notre Dame Des Victoires 029 EUR 12,663,630 G 10 100.00 Generali Vie S.A. 100.00 98.63
SCI Landy-Novatis 029 EUR 672,000 G 10 0.10 Generali Vie S.A. 100.00 98.62 99,90 SC Novatis
SCI Landy-Wilo 029 EUR 1,000 G 10 0.10 Generali IARD S.A. 100.00 98.63 99.90 Generali Vie S.A.
SC Generali Logistique 029 EUR 112,480,703 G 10 50.00 PARCOLOG FRANCE 100.00 99.04 50.00 Generali Vie S.A.
SCI Parcolog Lille Hénin Beaumont 2 029 EUR 744,976 G 10 100.00 SC Generali Logistique 100.00 99.04
OPCI Parcolog Invest 029 EUR 225,848,750 G 10 100.00 Generali Vie S.A. 100.00 98.62
SCI Parc Logistique Maisonneuve 1 029 EUR 1,070,000 G 10 100.00 SC Generali Logistique 100.00 99.04
SCI Parc Logistique Maisonneuve 2 029 EUR 8,000 G 10 0.01 Generali Vie S.A. 100.00 99.04 99.99 SC Generali Logistique
SCI Parcolog Isle D'Abeau 1 029 EUR 5,008,000 G 10 40.00 SC Generali Logistique 40.00 39.78
SCI Parcolog Isle D'Abeau 2 029 EUR 2,008,000 G 10 20.00 SC Generali Logistique 20.00 19.89
SCI Parcolog Combs La Ville 1 029 EUR 7,001,000 G 10 100.00 SC Generali Logistique 100.00 99.04
SCI Parcolog Marly 029 EUR 7,001,000 G 10 100.00 SC Generali Logistique 100.00 99.04
SCI Commerces Regions 029 EUR 1,000 G 10 1.00 Generali IARD S.A. 100.00 98.63 99,00 Generali Vie S.A.
SCI du 33 avenue Montaigne 029 EUR 174,496 G 10 100.00 Generali Vie S.A. 100.00 98.62
SCI Saint Michel 029 EUR 3,713,657 G 10 100.00 Generali Vie S.A. 100.00 98.62
SCI Luxuary Real Estate 029 EUR 1,000 G 10 100.00 Generali Vie S.A. 100.00 98.63 310 Generali Group Annual Integrated Report and Consolidated Financial Statements 2019
SCI Galilée 029 EUR 2,825,875 G 10 100.00 SCI GF Pierre 100.00 98.62
HSR Verpachtung GmbH 008 EUR 100,000 G 10 40.00 Generali Versicherung AG 100.00 84.96 60.00 BAWAG P.S.K. Versicherung AG
Generali Versicherung AG 008 EUR 70,000,000 G 2 25.00 Generali Beteiligungs- und Vermögensverwaltung GmbH 100.00 99.95 75.00 Generali Beteiligungsverwaltung GmbH
BAWAG P.S.K. Versicherung AG 008 EUR 12,000,000 G 2 75.00 Generali Versicherung AG 75.00 74.96
Europ Assistance Gesellschaft mbH 008 EUR 70,000 G 11 25.00 Generali Versicherung AG 100.00 99.98 75.00 Europ Assistance Holding S.A.S.
Car Care Consult Versicherungsvermittlung GmbH 008 EUR 60,000 G 11 100.00 Generali Versicherung AG 100.00 99.95
Sonnwendgasse 13 Errichtungsgesellschaft m.b.H. 008 EUR 35,000 G 11 33.33 FPS Immobilien Verwaltung SW 13 GmbH 100.00 98.92 33.33 FLI Immobilien Verwaltungs SW 13 GmbH
Generali Bank AG 008 EUR 26,000,000 G 7 100.00 Generali Versicherung AG 100.00 99.95
Generali European Retail Investments Holdings S.A. 092 EUR 256,050 G 8 100.00
Generali Luxembourg S.A. 092 EUR 45,000,000 G 2 100.00 Generali Vie S.A. 100.00 98.62
Generali Investments Luxembourg S.A. 092 EUR 1,921,900 G 11 100.00 Generali Investments Holding S.p.A. 100.00 99.53
Generali Real Estate Multi-Manager 092 EUR 250,000 G 8 100.00 Generali Real Estate S.p.A. 100.00 100.00
Generali North American Holding 1 S.A. 092 USD 13,246,799 G 11 100.00 Generali Vie S.A. 100.00 98.62
Generali España, S.A. de Seguros y Reaseguros 31.61 Generali Vie S.A.
GRE PAN-EU Hamburg 1 S.à r.l. 092 EUR 12,500 G 9 100.00 Generali Europe Income Holding S.A. 100.00 98.92
GRE PAN-EU Hamburg 2 S.à r.l. 092 EUR 12,500 G 9 100.00 Generali Europe Income Holding S.A. 100.00 98.92
GRE PAN-EU Frankfurt 1 S.à r.l. 092 EUR 12,000 G 11 100.00 Generali Europe Income Holding S.A. 100.00 98.92
Cologne 1 S.à.r.l. 092 EUR 12,000 G 11 100.00 Generali Real Estate Asset Repositioning S.A. 100.00 99.35
Retail One Fund SCSp RAIF 092 EUR 237,000,000 G 11 100.00 Generali Europe Income Holding S.A. 100.00 98.92
Generali Real Estate Logistics Fund S.C.S. SICAV-RAIF 092 EUR 339,959,917 G 10 10.96 AachenMünchener Lebensversicherung AG 100.00 99.45
GRE PAN-EU Berlin 1 S.à r.l. 092 EUR 12,000 G 10 100.00 Generali Europe Income Holding S.A. 100.00 98.92
Generali España, S.A. de Seguros y Reaseguros 3.96 Generali IARD S.A.
L'Equité S.A. Cie d'Assurances et Réass. contre les risques de toute nature 11.37 Alleanza Assicurazioni S.p.A.
Generali SCF Sàrl 092 EUR G 11 100.00 Generali Shopping Centre Fund S.C.S. SICAV-SIF 100.00 100.00
Generali España, S.A. de Seguros y Reaseguros 100.00 99.35 46.79 Generali Vie S.A.
Generali Shopping Centre Fund GP S.à r.l. 092 EUR 12,000 G 11 100.00 Generali Real Estate S.p.A. 100.00 100.00
Generali Shopping Centre Fund S.C.S. SICAV-SIF 092 EUR 10 G 11 100.00 Generali Shopping Centre Fund GP S.à r.l. 100.00 100.00
Generali Financial Holding FCP-FIS - SubFund 2 092 EUR 10,387,833 G 11 4.70 Generali Deutschland AG 100.00 99.82 4.70 Alleanza Assicurazioni S.p.A.
Europ Assistance Servicios Integrales de Gestion, S.A. 067 EUR 400,000 G 11 100.00 Europ Assistance S.A. 100.00 99.99
Generali España Holding de Entidades de Seguros S.A. 067 EUR 563,490,658 G 4 100.00 100.00 100.00
Vitalicio Torre Cerdà S.l. 067 EUR 1,112,880 G 10 90.66 Generali España, S.A. de Seguros y Reaseguros 100.00 99.90 9.34 Grupo Generali España, A.I.E.
Generali Cliente, Agencia de Seguros Exclusiva, SL 067 EUR 3,000 G 11 100.00
GLL City22 S.L. 067 EUR 20,003,006 G 11 100.00 GLL AMB Generali City22 S.à.r.l. 100.00 100.00
DB Real Estate Spezial Invest Portugal - Sociedade Imobiliária S.A. 055 EUR 12,250,000 G 11 100.00 Generali Europe Income Holding S.A. 100.00 98.92
GRE PAN-EU Brussels 1 s.p.r.l. 009 EUR 18,550 G 11 100.00 Generali Europe Income Holding S.A. 100.00 98.92
314 Generali Group Annual Integrated Report and Consolidated Financial Statements 2019
Method(1) Activity(2) Shareholding % Group Equity Ratio(3)Direct Indirect Through Total 50.01 Generali Participations Netherlands N.V.
Generali Turkey Holding B.V. 050 EUR 100,000 G 4 100.00 Generali Participations Netherlands N.V. 100.00 99.85
Generali España, S.A. de Seguros y Reaseguros 0.12 Generali IARD S.A.
Generali Horizon B.V. 050 EUR 90,760 G 9 100.00 Generali Participations Netherlands N.V. 100.00 99.85
Lion River II N.V. 050 EUR 48,500 G 9 2.06 Generali Beteiligungs-GmbH 100.00 99.83 2.06 Generali Vie S.A.
CP Strategic Investments N.V. 050 EUR 225,000 G 9 100.00 Generali Česká pojišťovna a.s. 100.00 100.00
MyDrive Solutions Limited 031 GBP 776 G 11 100.00 Generali Participations Netherlands N.V. 100.00 99.85
Nextam Partners Ltd 031 GBP 325,000 G 8 100.00 Nextam Partners S.p.A 100.00 50.68
Aperture Investors UK, Ltd 031 GBP G 8 70.00 Aperture Investors, LLC 70.00 69.67
Genirland Limited 040 EUR 113,660,000 G 9 100.00 Generali Participations Netherlands N.V. 100.00 99.85
Európai Utazási Biztosító Zrt. 077 HUF 400,000,000 G 2 13.00 Europäische Reiseversicherung Aktiengesellschaft 74.00 70.74 61.00 Generali Biztosító Zrt.
Vàci utca Center Űzletközpont Kft 077 HUF 4,497,122 G 10 100.00 Generali Immobilien GmbH 100.00 99.95
Generali-Ingatlan Vagyonkezelő és Szolgáltató Kft. 077 HUF 5,296,788,000 G 10 100.00 Generali Biztosító Zrt. 100.00 100.00
Generali Alapkezelő Zártkörűen Működő Részvénytársaság 077 HUF 500,000,000 G 8 74.00 Generali Biztosító Zrt. 100.00 100.00 26.00 Generali CEE Holding B.V.
PCS Praha Center Spol.s.r.o. 275 CZK 396,206,000 G 10 100.00 Generali Versicherung AG 100.00 99.95
Palac Krizik a.s. 275 CZK 2,020,000 G 10 50.00 Generali Česká pojišťovna a.s. 100.00 100.00
Penzijní společnost České Pojišťovny, a.s. 275 CZK 50,000,000 G 11 100.00 CP Strategic Investments N.V. 100.00 100.00
Generali Investments CEE, Investiční Společnost, a.s. 275 CZK 91,000,000 G 8 100.00 CZI Holdings N.V. 100.00 100.00
Generali Poisťovňa, a. s. 276 EUR 25,000,264 G 2 100.00 Generali CEE Holding B.V. 100.00 100.00
Green Point Offices a.s. 276 EUR 25,000 G 10 100.00 Generali Česká pojišťovna a.s. 100.00 100.00
Concordia Polska Towarzystwo Ubezpieczeń Wzajemnych 054 PLN 66,260,270 G 2 99.76 Generali CEE Holding B.V. 99.76 99.76
Europ Assistance Polska Sp.zo.o. 054 PLN 5,000,000 G 11 100.00 Europ Assistance Holding S.A.S. 100.00 99.99
SO SPV 57 Sp. Z o.o. 054 EUR 16,724,050 G 11 100.00 Generali Europe Income Holding S.A. 100.00 98.92
Generali Finance spólka z ograniczoną odpowiedzialnością 054 PLN 15,230,000 G 8 100.00
PL Investment Jerozolimskie I Spòlka Ograniczona Odpowiedzialnościa 054 PLN 9,050 G 11 100.00
Cleha Invest Sp. z o.o. 054 PLN 1,314,300 G 10 100.00 Generali Real Estate Fund CEE a.s., investiční fond 100.00 100.00
Adriatic Slovenica Zavarovalna družba d.d. 260 EUR 42,999,530 G 2 100.00 Generali CEE Holding B.V. 100.00 100.00
Generali Insurance AD 012 BGN 47,307,180 G 2 99.78 Generali CEE Holding B.V. 99.78 99.78
Generali Zakrila Medical and Dental Centre EOOD 012 BGN 4,114,100 G 11 100.00 Generali Insurance AD 100.00 99.78
Fortuna Rechtsschutz-VersicherungGesellschaft AG 071 CHF 3,000,000 G 3 100.00 Generali (Schweiz) Holding AG 100.00 99.97
Europ Assistance (Suisse) Holding S.A. 071 CHF 1,400,000 G 4 70.00 Europ Assistance Holding S.A.S. 70.00 70.00
Generali (Schweiz) Holding AG 071 CHF 4,332,000 G 4 51.05 100.00 99.97 20.01 Generali Versicherung AG
Fortuna Investment AG 071 CHF 1,000,000 G 8 100.00 Generali (Schweiz) Holding AG 100.00 99.97
BG Valeur S.A. 071 CHF 300,000 G 11 90.10 Banca Generali S.p.A. 90.10 45.66
Generali Sigorta A.S. 076 TRY 407,485,822 G 3 99.97 Generali Turkey Holding B.V. 99.97 99.81
Akcionarsko društvo za osiguranje Generali Osiguranje Montenegro 290 EUR 4,399,000 G 3 26.82
Akcionarsko društvo za reosiguranje Generali Reosiguranje Srbija, Beograd 65.24 Generali CEE Holding B.V.
Generali Russia 262 RUB 50,000 G 4 100.00 GW Beta B.V. 100.00 99.91
Generali Insurance Brokers – Russia and CIS Limited Liability Company 262 RUB 3,000,000 G 11 100.00 Generali Russia 100.00 99.91
Akcionarsko društvo za reosiguranje Generali Reosiguranje Srbija, Beograd 289 RSD 616,704,819 G 6 0.01 GP Reinsurance EAD 100.00 100.00
Europ Assistance North America, Inc. 069 USD 106,061,342 G 11 100.00 Europ Assistance Holding S.A.S. 100.00 99.99
Customized Services Administrators Inc. 069 USD 2,389,162 G 11 100.00 Europ Assistance North America, Inc. 100.00 99.99
Generali Alpha Corp. 069 USD 20,321,000 G 9 100.00 Generali Investments Holding S.p.A. 100.00 99.53
Aperture Investors, LLC 069 USD 28,570,000 G 9 70.00 Generali Alpha Corp. 70.00 69.67
General Securities Corporation of North America 100.00 99.48 35.73 Generali North American Holding 1 S.A.
GNAREI 1 Farragut LLC 069 USD 34,037,500 G 10 100.00 GNAREH 1 Farragut LLC 100.00 99.48 319 We, Generali Consolidated Non-Financial Statement
Generali Warranty Services LLC 069 USD 1,269,558 G 11 100.00 Generali Consulting Solutions LLC 100.00 100.00
Caja de Seguros S.A. 006 ARS 228,327,700 G 3 99.01 Caja de Ahorro y Seguro S.A. 100.00 90.06 0.99 Generali Participations Netherlands N.V.
Asesoria e Inversiones Los Olmos SA 015 CLP 4,769,708,625 G 11 0.92 Generali Participations Netherlands N.V. 100.00 44.50 99.08 Atacama Investments Ltd
AFP Planvital S.A. 015 CLP 36,243,962,493 G 11 86.11 Asesoria e Inversiones Los Olmos SA 86.11 38.32
Atacama Investments Ltd 249 USD 76,713 G 11 44.06 Generali Participations Netherlands N.V. 44.06 43.99
PT Asuransi Jiwa Generali Indonesia 129 IDR 1,103,000,000,000 G 3 98.00 Generali Asia N.V. 98.00 97.85
FTW Company Limited 072 THB 500,000 G 4 90.57 Generali Asia N.V. 90.57 90.43
MGD Company Limited 072 THB 500,000 G 4 90.57 Generali Asia N.V. 90.57 90.43 320 Generali Group Annual Integrated Report and Consolidated Financial Statements 2019
Europ Assistance Travel Assistance Services (Beijing) Co Ltd 016 CNY 105,315,181 G 11 100.00 Europ Assistance Holding S.A.S. 100.00 99.99
Generali Insurance Agency Company Limited 016 CNY 138,092,807 G 11 100.00 NKFE Insurance Agency Company Limited 100.00 100.00
Generali Life (Hong Kong) Limited 103 HKD 575,000,000 G 3 100.00 Generali Asia N.V. 100.00 99.85
NKFE Insurance Agency Company Limited 103 HKD 166,473,100 G 11 100.00 Generali Financial Asia Limited 100.00 100.00
Europ Assistance Worldwide Services (South Africa) (Pty) Ltd 078 ZAR 881,385 G 11 87.50 Europ Assistance Holding S.A.S. 87.50 87.49
EASA Training Academy (Pty) Ltd 078 ZAR 100 G 11 100.00 Europ Assistance Worldwide Services (South Africa) (Pty) Ltd 100.00 87.49 321 We, Generali Consolidated Non-Financial Statement
Investimenti Marittimi S.p.A. 086 EUR 39,655,000 b 9 30.00 Generali Italia S.p.A. 30.00 30.00 6.64 Genertellife S.p.A.
Solaris S.r.l. in liquidazione 086 EUR 20,000 b 10 50.00 Generali Italia S.p.A. 50.00 50.00 16.00 Generali Italia S.p.A.
Generali Deutschland Alternative Investments Verwaltungs GmbH 094 EUR 25,000 a 9 100.00 Generali Deutschland AG 100.00 100.00 25 vSPS Management GmbH i. L. 094 EUR 25,000 a 11 100.00 Generali Deutschland Versicherung AG 100.00 100.00 25
Pflegix GmbH 094 EUR 65,743 c 2 49.04 Europ Assistance S.A. 49.04 49.04 2,710
Generali Partner GmbH 094 EUR 250,000 a 11 100.00 Generali Deutschland AG 100.00 100.00 945
MLV Beteiligungverwaltungsgesellschaft mbH 094 EUR 51,129 a 9 100.00 Generali Versicherung AG 100.00 99.95 29
Deutsche Vermögensberatung Aktiengesellschaft DVAG (*) 094 EUR 150,000,000 b 11 40.00 Generali Deutschland AG 40.00 40.00 168,605
Generali SicherungsTreuhand GmbH 094 EUR 52,000 a 11 100.00 Generali Deutschland AG 100.00 100.00 112
GLL AMB Generali Properties Fund II GmbH & Co. KG 094 EUR 3,000,000 a 11 99.91
Equi#Generali S.A.S. 029 EUR 5,207,223 a 9 100.00 Cabinet Berat et Fils S.A.S. 100.00 98.63
Cabinet Berat et Fils S.A.S. 029 EUR 1,508,000 a 11 100.00 Cofifo S.A.S. 100.00 98.63 11,785
L'Equité S.A. Cie d'Assurances et Réass.contre les risques de toute nature 29.73 29.32 645 14.87 Generali IARD S.A.
Bien Être Assistance S.A.S. (*) 029 EUR 1,000,000 c 11 50.10 Europ Assistance France S.A. 50.10 50.10 719
Metropole Assurances S.à r.l. 029 EUR 1,166,460 a 11 100.00 Generali IARD S.A. 100.00 98.63
Generali Global Pension S.A.S. 029 EUR 2,015,000 a 11 40.00 Cofifo S.A.S. 100.00 98.99 2,015 40.00 Generali Investments Holding S.p.A.
Agence Generali Béthune S.A.S. 029 EUR 15,000 a 2 100.00 Cofifo S.A.S. 100.00 98.63 15 99.90 Generali Vie S.A.
SCI Les 3 Collines Le Ferandou 029 EUR 304,000 b 10 15.00 Generali Vie S.A. 48.30 47.64 142 33.30 Generali IARD S.A.
SCE Château La Pointe 029 EUR 2,068,903 a 10 100.00 Generali Vie S.A. 100.00 98.63 35,646
Bois Colombes Europe Avenue SCI (*) 029 EUR 1,000 c 10 50.00 Generali Vie S.A. 50.00 49.31 5,068
SCI 11/15 Pasquier (*) 029 EUR 6,437,750 c 10 50.00 Generali IARD S.A. 50.00 49.31 10,833
SCI 9 Messine (*) 029 EUR 2,420,250 c 10 50.00 Generali Vie S.A. 50.00 49.31 3,915
SCI CIC 029 EUR 1,000,000 a 10 100.00 GFA Caraïbes 100.00 98.63 966
SCI GFA Caraibes 029 EUR 1,500,000 a 10 100.00 GFA Caraïbes 100.00 98.63 1,420
SK Versicherung AG (*) 008 EUR 3,633,500 b 2 39.66 Generali Versicherung AG 39.66 39.64 2,782
GCR Vermögensverwaltung GmbH 008 EUR 35,000 a 11 100.00 Generali Versicherung AG 100.00 99.95 35
Generali 3 Banken Holding AG (*) 008 EUR 70,000 b 9 49.30 Generali Versicherung AG 49.30 49.28 125,183 3 Banken-Generali InvestmentGesellschaft m.b.H. (*) 008 EUR 2,600,000 b 8 48.57 Generali Versicherung AG 48.57 48.55 2,194
Risk-Aktiv Versicherungsservice GmbH 008 EUR 35,000 a 11 100.00 Generali Versicherung AG 100.00 99.95 35
BONUS Vorsorgekasse AG (*) 008 EUR 1,500,000 b 11 50.00 Generali Versicherung AG 50.00 49.97
GGI Senior Infrastructure Debt GP S.à r.l. 092 EUR 12,000 a 11 100.00 Generali Global Infrastructure S.A.S. 100.00 51.03
Europ Assistance Travel S.A. 067 EUR 60,101 a 11 100.00 Europ Assistance Servicios Integrales de Gestion, S.A. 100.00 99.99 219
Keviana – Empreendimentos Imobiliários, S.A. 055 EUR 50,000 a 10 100.00 Generali Vie S.A. 100.00 98.63
Amulio Governance N.V. 050 EUR 18,000 c 9 50.00 Lion River II N.V. 50.00 49.91 9
Sigma Real Estate B.V. (*) 050 EUR 18,000 c 9 22.34 Corelli S.à.r.l. 22.34 22.21
La Reunion Aerienne London Limited 031 GBP 51,258 b 11 33.33 Generali IARD S.A. 33.33 32.87
Roar Biztosítási És Pénzügyi Közvetítő Korlátolt Felelösségü Társaság 077 HUF 12,000,000 a 11 100.00 Generali Biztosító Zrt. 100.00 100.00 834
GP Consulting Pénzügyi Tanácsadó Kft. 077 HUF 22,000,000 a 11 100.00 Generali Biztosító Zrt. 100.00 100.00 837
AUTOTÁL Biztosítási Szolgáltató Kft 077 HUF 104,000,000 a 11 100.00 Generali Biztosító Zrt. 100.00 100.00 968
VUB Generali dôchodková správcovská spoločnost’, a.s. (*) 276 EUR 10,090,976 b 11 50.00 Generali Poisťovňa, a. s. 50.00 50.00 11,552
Generali IT S.r.o. 276 EUR 165,970 a 11 100.00 Generali Versicherung AG 100.00 99.95 132
LEV Registracija, registracija vozil, d.o.o. 260 EUR 18,000 a 11 100.00 Generali zavarovalnica d.d. Ljubljana 100.00 100.00 298
Nama Trgovsko Podjetje d.d. Ljubljana (*) 260 EUR 3,977,325 b 11 48.51 Adriatic Slovenica Zavarovalna družba d.d. 48.51 48.51 5,229
Generali Development d.o.o. Beograd 289 RSD 23,864,000 a 11 100.00 Generali CEE Holding B.V. 100.00 100.00 202
EABS Serviços de Assistencia e Partecipaçoes S.A. (*) 011 BRL 89,542,270 c 9 50.00 Ponte Alta, SGPS, Unipessoal, Lda. 50.00 50.00 7,253
CEABS Serviços S.A. (*) 011 BRL 31,926,225 c 11 100.00 Europ Assistance Brasil Serviços de Assistência S.A. 100.00 50.00 4,608
Europ Assistance (Bahamas) Ltd 160 BSD 10,000 a 11 99.99 CMN Global Inc. 99.99 99.99
Generali Pacifique NC 253 XPF 1,000,000 a 11 100.00 Generali France S.A. 100.00 98.63 2,095
FG&G Distributtion Private Limited (*) 114 INR 283,100,000 c 11 48.83 Generali Participations Netherlands N.V. 48.83 48.75 1,495
ONB Technologies India Pvt Ltd 114 INR 500,000 c 11 37.00 ONB Technologies Pte. Ltd. 37.00 37.00
Europ Assistance Insurance Brokers Co., Ltd. (China) 016 CNY 50,000,000 a 11 100.00
Guotai Asset Management Company (*) 016 CNY 110,000,000 b 8 30.00 30.00 30.00 176,690
Zhonghe Sihai Insurance Agency Company Limited 016 CNY 50,000,000 b 11 25.00 Generali Financial Asia Limited 25.00 25.00 1,651
ONB Technologies Pte. Ltd. 147 SGD 3,459 c 11 37.01 Europ Assistance Holding S.A.S. 37.01 37.00 8,688
Europ Assistance (Macau) - Serviços De Assistência Personalizados, Lda. 059 MOP 400,000 a 11 70.00 Ponte Alta, SGPS, Unipessoal, Lda. 70.00 70.00
333 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 337 Board of Statutory Auditors’ Report 351 Independent Auditor’s Report on the Consolidated Financial Statements
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
2. The adequacy of the administrative and accounting procedures in place for preparing the consolidated financial statements as at 31 December 2019 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.
1. Activities of the Board of Statutory Auditors during the financial year ending on 31 December 2019 (point 10 of Consob Notice no. 1025564/01)
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 2019 pursuant to s. 153 of Lgs.Decree 58/1998 tivity plan, the Board of Statutory Auditors, among other things: – 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 preparing the company’s financial reports, the head of the Group Financial Crime Function, the Group General Counsel, the head of the Corporate Affairs Function, the head of the Group Human Resources & Organisation Function and the General Manager, and also with the heads of corporate functions affected by the inspection activities of the Board of Statutory Auditors from time to time; – pursuant to s. 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 four fundamental functions envisaged by the aforementioned Regulation – Group Audit, Group Compliance, Risk Management, Group Actuarial (“Fundamental Functions”) – and the heads of all the units that perform control activities inside the group headed by Assicurazioni Generali S.p.A. (“Group”), and ensure appropriate functional and information links; – met the members of the Surveillance Body set up pursuant to Lgs.Decree 231/2001 for useful exchanges of information; – pursuant to paragraphs 1 and 2 of s. 151 of the CFBA, and to s. 74.3.g of IVASS Regulation no. 38/2018, held meetings and/or exchanged information with the audit bodies of the main subsidiaries (Alleanza Assicurazioni S.p.A., Banca Generali S.p.A., Česká pojišťovna a.s., CityLife S.p.A., Europ Assistance Italia S.p.A., Generali Allgemeine Versicherungen AG, Generali Business Solutions S.C.P.A., Generali Deutschland AG, Generali España S.A. de Seguros y Reaseguros, Generali IARD S.A., Generali Insurance Asset Management S.P.A. Società di gestione del risparmio, Generali Investments Partners S.p.A. Società di gestione del risparmio, Generali Investments Holding S.p.A., Generali Italia S.p.A., Generali Personenversicherungen AG, Generali Real Estate S.p.A., Generali Real Estate S.p.A. SGR, Generali Shared Services S.c.a.r.l., Generali Versicherung AG, Generali Vie S.A., Genertel S.p.A., Genertellife S.p.A.); – as part of the relations between audit body and external auditor envisaged under s.150.3 of the CFBA and art. 74.3.e of IVASS Regulation no. 38/2018, and in light of the powers of the Board of Statutory Auditors in
2. Transactions having a significant impact on the economic, financial and assets position. Other noteworthy events (point 1 of Consob Notice no. 1025564/01)
April – On 17 April 2019 Assicurazioni Generali S.p.A. increased the share capital to 1,569,600,895 euro to service the Long-Term Incentive Plan approved by the General Meeting on 28 April 2016; – on 30 April 2019, the sale of 89.9% of the shares of Generali Lebensversicherung was completed and an industrial partnership agreement was signed simultaneously with Viridium to complete the turnaround of Generali Deutschland; – an agreement was signed for the purchase of the insurance portfolios of three companies of ERGO International AG in Hungary and Slovakia, in line with the Group strategy to further strengthen its leadership position in Europe; June – in Poland the acquisition of Union Investment TFI S.A. from the German group Union Asset Management Holding AG was completed, implementing the purchase agreement signed in October 2018; – the Assicurazioni Generali S.p.A. Board of Directors approved a proposal to present a special 2019-2022 share plan for the Managing Director/Group CEO at the next General Meeting; July – Assicurazioni Generali S.p.A. exercised the early repayment option on all outstanding perpetual subordinated notes, issued on 15 July 2009, with the following characteristics: i) Description of the notes: 50,000,000 euro 9.00% Perpetual Fixed/Floating Rate Notes; ii) ISIN Code: XS0440434834; iii) Coupon: 9.00%; iv) Repayment price: 100%. The early repayment of the notes had prior IVASS authorisation; – the share capital of Assicurazioni Generali S.p.A. was raised to 1,569,773,403 euro to service the special share plan relating to the 2016-2018 mandate of the Managing Director/Group CEO approved by the 2017 General Meeting. The shares have a par value of 1.00 euro each, including the additional dividend equivalent shares, and will be subject to a minimum holding period as envisaged by the plan regulation; September – the cash buyback of notes with a first call date in 2022 was completed for an aggregate nominal amount of approximately 1 billion euro; the first green bond, for 750 million euro, was placed; December – through the Argentinian subsidiary La Caja, a commercial agreement was closed in Argentina with Mercado Libre, an e-commerce operator in South America; the agreement is designed to strengthen the P&C segment.
Notable events in early 2020 were as follows: – in January, the acquisition begun in 2019 for 100% of the Portuguese company Seguradoras Unidas and the AdvanceCare services company was completed; – in February, the “Green Insurance Linked Securities Framework” was developed in line with the Group sustainability strategy and the emission in September 2019 of the first green bond; the main characteristic is the investment of collateral in environment-friendly assets and the allocation of the capital to sustainable initiatives.
Beginning in January and until this report was filed, the Board of Statutory Auditors has received adequate information about the measures and initiatives taken by the Company in response to the Covid-19 crisis and healthcare emergency.
Specifically, during the meetings of the Board of Directors on 12 March and 23 March 2020, and subsequent discussions at a meeting of its own, the Board of Statutory Auditors was informed of the following measures taken by Assicurazioni Generali S.p.A. in response to the emergency: – special committees have been promptly set up (Guidance /Specialist/Operational) to analyse the difficulties and draw up guidelines, instructions and procedures for management of the emergency; – personnel have been provided with detailed information, through the organisation of a system to circulate notices to all personnel through the corporate intranet and e-mail messages; – urgent indications have been issued to manage travel, meetings and events: specifically, all international, intercontinental and national travel has been banned except in exceptional essential cases that cannot be postponed due to business priorities, which must be approved by first-line managers or by the relevant HR functions; people returning from travel abroad are required to undergo a medical check before re-entering the workplace; all Generali Group internal and external events at both national and international level have been suspended; – restrictions have been placed on access to offices for suppliers and third parties and for employees, for whom forms of smart working are given priority where possible; – people’s presence in Group offices has been reduced in order to manage the potential healthcare emergency.
As stated in the 2016, 2017 and 2018 Integrated Annual Report and Consolidated Financial Statements, the Brazilian company Banco BTG Pactual S.A. (“BTG”) initiated a dispute in 2016 relating to certain claims for compensation made by BTG pursuant to an agreement whereby the sale to the latter of Banca della Svizzera Italiana S.A. (“BSI”) by a Generali subsidiary was concluded in September 2015.
The Board of Statutory Auditors has received regular updates from Group Legal Affairs on the dispute – where the parties are currently filing their closing submissions – during the meetings of the Board of Directors and the RCC and has examined the opinions drawn up by the external legal advisors. The Board of Statutory Auditors also met the Manager in charge of preparation of the company’s financial reports and the external auditors EY, with a view to monitoring the process conducted by them, within their respective remits, in order to assess possible recognition of provisions pursuant to IAS 37, and the corresponding disclosure. As stated in the 2019 Integrated Annual Report and Consolidated Financial Statements, given the complexity and uncertainty of the dispute over if/then how much is due, and the legal opinions obtained, the Company has decided that the conditions of probability and ability to make a reliable estimate required by IAS 37 for recognition of provisions for risks have not been met in connection with BTG’s claim for compensation.
During 2019 two transactions classified under the RPT Procedures as of “greater materiality” and one of “minor materiality” were brought to the attention of the RPTC: the Board of Statutory Auditors attended the relevant meetings and followed the proceedings to analyse the transactions, ensuring the compliance of the Board of Directors and the RPTC with Consob Regulation 17221/2010 and with the RPT Procedures. No urgent transactions with related parties took place.
The BSA’s surveillance activities ascertained that intragroup transactions during the year were in accordance with IVASS Regulation no. 30/2016 on intragroup transactions and concentration of risk and with the Intragroup Transactions Group Policy adopted by the Board of Directors on 15 March 2017 and updated on 20 June 2019. The main intercompany activities, with payment at market prices or at cost, were conducted by means of reinsurance and coinsurance agreements, administration and management of securities and real estate, claims management and settlement, IT and administrative services, loans and guarantees, and personnel loans. The said services allowed the rationalisation of the operational functions and a better level of services.
The BSA concluded that the information provided by the Board of Directors on intragroup and related-party transactions in the 2019 Separate Financial Statements is adequate.
lowing integration and coordination mechanisms between the Business Units and the Group Head Office functions: – the Group Management Committee (“GMC”), which provides the Group CEO and top management with support on key strategic decisions; – the three main cross-functional committees which support the Group CEO on the direction of Group strategic decisions: the Balance Sheet Committee, the Finance Committee, the Group Product & Underwriting Committee; – the Business Strategic Reviews, the Clearance Meetings and the Capital & Cash Deep Dives, which ensure alignment between GHO and the Business Units, with a focus on, respectively, strategic measures and discussions, business/financial performance, remittances and capital optimisation; – the Functional Guideline and Functional Council, through which functional coordination is implemented at global level; – a matrix system of reporting lines, classified as “solid” or “dotted” according to the intensity of guidance and coordination between the GHO Functions and the corresponding functions in the Business Units. The “solid” Functions, where hierarchical reporting is exercised in a more direct and systematic fashion by GHO (through guidance for key decisions on functional issues and human resources, e.g., recruitment, termination, assignment of annual objectives), are the Group Chief Risk Officer, the Group General Counsel, including Group Compliance, and Group Audit; the other Group Functions are dotted functions with functional reporting, where direction and coordination is based on the indication of functional guidelines and best practice and on participation in some key decisions concerning human resources.
Through the activities described in section 1 above, the Board of Statutory Auditors verified the adequacy of the overall Company and Group organisational structure, especially in view of its dynamic nature, and also monitored the definition and assignment of powers, with particular attention to the separation of responsibilities in tasks and functions, pursuant to s. 74.3.b of IVASS Regulation no. 38/2018. The Board of Statutory Auditors verified the adequacy of the Company’s instructions to the subsidiaries pursuant to s.114.2 of the CFBA, in order to obtain on a timely basis the information required to comply with the disclosure obligations of law and Regulation (EU) no. 596/2014. Furthermore, pursuant to paragraphs 1 and 2 of s. 151 of the CFBA and s. 74.3.g of IVASS Regulation no. 38/2018, the Board ors obtained the reports of the boards of statutory auditors of the main subsidiaries and/or the information sent by the boards in response to specific requests; analysis of the documents in question did not find any elements worthy of mention in this Report.
After the introduction of IVASS Regulation no. 38/2018, which involved a review of the corporate governance system in insurance companies, the Company completed the review of its own governance and internal control system. The measures taken with regard to the role of the Chair and the Board Committees, the organisational structure of the Fundamental Functions and the effective and efficient performance of their respective functions, as well as the updates to the internal regulations of the Board of Directors and the Committees, were implemented through resolutions of the Board of Directors in December 2018. On 30 January 2019 the Board of Directors approved a number of amendments to the Articles of Association for alignment with IVASS Regulation no. 38/2018 as regards the composition of the Executive Committee, which has not actually been formed by the Company. The other implementing activities that the IVASS Regulation required be updated by the end of 2019 were completed in full through the shareholder resolutions of 7 May 2019, well ahead of the regulatory deadline.
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 ss. 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 document regarding the assessment of the adequacy and efficacy of the Internal Control and Risk Management System drawn up by the Group Audit, Group Compliance, Group Risk Management and Group Actuarial Functions; iv) attended all meetings of the RCC, obtaining information about the initiatives that the Committee has decided to promote or request on specific subjects; v) obtained information about the development of the organisational structures and the activities performed by the Group Audit, Group Compliance, Group Risk Management and Group Actuarial Functions, partly by means of discussions with the managers concerned; vi) examined the activity reports of the Group Audit, Group Compliance, Group Risk Management and Group Actuarial Functions submitted to the RCC and the Board of Directors; vii) examined the Group Audit Manager’s half-yearly Complaint Reports; viii) verified the autonomy, independence and functionality of the Group Audit Function, and established and maintained appropriate and constant ties with it; ix) examined the Audit Plan drawn up by the Group Audit Function and approved by the Board of Directors, observed that it had been complied with, and received information about the audit results and implementation of mitigation and corrective action; x) took note of the activities of the Surveillance 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 functions involved in the ICRMS; xii) exchanged information with the audit bodies of the subsidiaries, as required by ss. 151.1 and 151.2 of
the CFBA and by s. 74.3.g of IVASS Regulation no. 38/2018; xiii) met and exchanged information with the Group CEO in his capacity as Executive Director responsible for supervising the ICRMS; xiv) obtained information about the development of the Group’s regulatory system, in particular the Company ’s structure of policies, regulations, guidelines and procedures designed to ensure compliance with the specific regulations of the insurance industry and listed companies applicable to or approved by the Company.
As noted in the report on financial year 2018, the action plan to support the internal control system of the international branches continued in 2019, regarding which the Board of Statutory Auditors received continuous information from the four Fundamental Functions. The plan was completed except for matters concerning Brexit, which are still pending.
With regard to the requirements introduced by the latest legislation for the insurance sector – international sanctions, privacy and client protection – work continued in 2019 for the Group roll-out of the controls set up by the Company, which take account of the highest risk profile; during the year, action on these issues was taken by Group Audit and by Group Compliance, as envisaged in the respective Plans; the risk analysis has been updated for 2020 activity planning.
At a meeting on 31 March 2020, the Board of Statutory Auditors examined the additional report drawn up by the EY external auditors, ex s. 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 draft report had already been discussed and analysed during the regular information exchanges between the Board of Statutory Auditors and the external auditors. In overseeing the adequacy of the administrative and accounting system, the BSA also established, pursuant to s. 15 of Consob Regulation no. 20249 of 28 December 2017 (“Markets Regulation”), that the corporate organisation and procedures enable the Company to ascertain that the companies controlled by it and incorporated 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 supplying the Company’s management and external auditors regularly with the business and financial data required to draw up the consolidated financial statements. At 31 December 2019, the significant non-EU companies for the purposes of the Markets Regulation were: Generali Personenversicherungen AG, Generali (Schweiz) Holding AG and Generali China Life Insurance Co. Ltd.
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 s. 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 comprehension of the group’s business, performance and results, and the impact produced by it”. As specified in s. 3.7 of Lgs.Decree no. 254/2016, the Board of Statutory Auditors, in the performance of its statutory functions, monitored compliance with the legislation governing the preparation and publication of the CNFD. Specifically, the Board of Statutory Auditors verified the adequacy of the organisation structure adopted by the Group in connection with its strategic socio-environmental objectives and the adequacy of the Group processes and structures that oversee the production, reporting, measurement and representation of non-financial results and information.
For this purpose, the BSA examined the documentation made available by the Company and held meetings with the management team responsible for the information in the CNFD – an interdisciplinary group including the Group CFO Function and the Group Risk Management Function – and the representatives of the external auditor, which is also responsible for issuing a specific report certifying conformity as required by s. 3.10 of Lgs.Decree no. 254/2016.
The Board of Directors approved the CNFD on 12 March 2020; the document was drafted in compliance with Lgs.Decree 254/2016 and taking account of the criteria envisaged by the International <IR> Framework, issued by the International Integrated Reporting Council (“IIRC”). In 2019 the materiality analysis method used by the Company evolved to focus on assessment of mega trends: the main social, environmental and governance changes expected to have a significant impact on the corporate world, society and the natural environment over a ten-year timeline, bringing risks and opportunities for the Group, its value chain and its stakeholders. The standard adopted for reporting on the material subjects identified by the Group is the Consolidated Set of GRI Sustainability Reporting Standards – published in 2016 by the GRI Global Reporting Initiative (GRI – Ref-
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 allocated by the parent company and other companies belonging to the Group.
The Board of Statutory Auditors viewed and obtained information regarding the organisational and procedural activities conducted pursuant to Lgs.Decree 231/2001. The main questions relating to the organisational and procedural activities conducted by the Company pursuant to Lgs.Decree 231/2001 are set out 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.
with the principles and criteria of the Corporate Governance Code is set out in the Information Compendium to the 2019 Corporate Governance and Share Ownership Report published on the Company website, to which reference should be made.
The Board of Statutory Auditors has evaluated the procedures for concrete implementation of the principles and application criteria of the Corporate Governance Code, and has no comments to make on them. The Board of Statutory Auditors notes that the Board of Directors has evaluated the operation, size and composition of the Board of Directors and the Board Committees. The 2019 Board review, which involved all the directors and the Chair of the Board of Statutory Auditors, was conducted with the active involvement of an external consultant, and took the form of a questionnaire and a series of interviews. The assessment examined the operation and efficiency of the Board of Directors and the Board Committees, and their size and composition, as envisaged by the Corporate Governance Code. The information received was treated as confidential and reproduced in consolidated form in the final self-assessment report. The process and the results of the 2019 Board review were presented to and discussed by the Board of Directors at its meetings on 5 November 2019 and 19 February 2020, attended by the Board of Statutory Auditors. The main strengths and areas for attention identified by the 2019 Board review are detailed in the 2019 Corporate Governance and Share Ownership Report.
In early 2020, in line with the recommendations of Rule Q.1.1 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 itself conducted a self-assessment of its composition and operation, and discussed the findings at special meetings. Also in early 2020, with the expiry of its mandate imminent, the Board of Statutory Auditors drafted a report as recommended by Rules Q.1.2 and Q.1.6 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 report was presented to the Board of Directors and the RCC and included in the documentation made available for shareholders at the next General Meeting. At the meeting, the shareholders will be asked to appoint a new Board of Statutory Auditors and establish its remuneration for the three years 2020/22. The purpose of the report is to provide the General Meeting, the shareholders interested in submitting lists for the appointment of the new Board of
The BSA notes that the Board of Directors has adopted a specific top management succession policy and plan. The BSA has no comments to make about the consistency of the remuneration policy with the recommendations of the Corporate Governance Code and its compliance with IVASS Regulation no. 38/2018.
9.1. Activities of the Board of Statutory Auditors in financial year 2019
The external auditors EY were engaged to audit the separate financial statements and the Group consolidated financial statements for the nine years 2012-2020; during the 2019 financial year EY checked that the Company’s accounts were properly kept and transactions properly recognised in the accounting records. On 31 March 2020 the external auditors issued the reports pursuant to ss. 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 2019. The reports indicate that the financial statements are drawn up clearly and truthfully and correctly represent the assets/liabilities, financial position, results of operations and cash flows for the year ended 31 December 2019, in compliance with the applicable standards and regulations. 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 s. 154-bis of the CFBA as regards the Company’s separate financial statements and the consolidated financial statements as at and for the year ended 31 December 2019.
Within the terms of its remit, the BSA monitored the general layout of the financial statements and the consolidated financial statements in accordance with the legislation and specific regulations governing drafting of insurance companies’ financial statements. The BSA declares that the Group consolidated financial statements were drawn up in compliance with the IAS/IFRS International Accounting and Financial Reporting Standards issued by the IASB and endorsed by the European Union, in compliance with EU Regulation no. 1606 of 19 July 2002 and the CFBA, and with Lgs. Decree 209/2005 as amended. The consolidated financial statements were also drawn up as required by ISVAP Regulation no. 7 of 13 July 2007 as amended, and contain the information required by Consob Notice no. 6064293 of 28 July 2006. The Notes to the Financial Statements illustrate the evaluation criteria used, and provide the information required by the applicable legislation.
The Directors’ Report annexed to the separate financial statements of the parent company illustrates the business trend, indicating current and prospective developments, and the Group’s development and reorganisation process. It also provides appropriate information with regard to Covid19.
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 external auditors were also present, the Board of Statutory Auditors reported to the Board of Directors on 12 March 2020 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.
Committee, with its own additional report pursuant to s. 11 of EU Regulation Reg. 537/2014. In compliance with s. 19.1.a, Lgs.Decree 39/2010, the Board of Statutory Auditors promptly forwarded the report to the Board of Directors, without observations.
During the year, the Board of Statutory Auditors held meetings with the managers of the external auditors EY, also pursuant to s. 150.3 of the CFBA and s. 74.3.e of IVASS Regulation no. 38/2018. As part of its oversight activities as per s. 19 of Lgs.Decree 39/2010, the Board of Statutory Auditors acquired information from EY 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 external auditors in their respective activities, and no facts or situations worthy of remark emerged. Pursuant to s.19.1.e. Lgs.Decree 39/2010, the Board of Statutory Auditors, again in its capacity as Internal Control and Audit Committee, checked and monitored the independence of the external auditors. The checks found no situations that prejudiced the independence of the external auditors or constituted grounds for incompatibility under the applicable legislation. This is confirmed by the statement issued by EY pursuant to s.6.2.a EU Regulation Reg. 537/2014.
9.2. Activities of the Board of Statutory Auditors with regard to non-audit services
With regard to non-audit services, at the recommendation and with the support of the Board of Statutory Auditors, at the beginning of 2017 the Company adopted a specific procedure to govern the assignment of non-audit services to the external auditors and entities of the network of the external auditors (“Guidelines for the assignment of non-audit services to auditors”). As noted in the report issued last year, during 2018 the Board of Statutory Auditors supervised the update of the above Guidelines to ensure alignment with the interpretative changes of current law. In 2019 additional processes were implemented to raise the awareness of the Group companies regarding correct application of the new Guidelines in accordance with the recommendations of the Board of Statutory Auditors. Furthermore, a procedure was introduced for the specific purpose of managing the eventuality that in 2020, the last year of the engagement of the external auditors EY (outgoing auditor), the Company invite KPMG S.p.A. to perform non-audit services. Since KPMG S.p.A. will take the statutory audit of the Group accounts over from EY
as from financial year 2021 (incoming auditor), in 2020 it will be in a so-called “cooling-in period”, as per s. 5.1.b Reg. Law no. 537/2014. In addition to the above, during 2019, as envisaged by s.19.1.e of Lgs.Decree 39/2010 and s. 5.4 of EU Reg. 537/2014, in its capacity as internal control and audit committee, the Board of Statutory Auditors conducted a preventive examination of the proposals for the assignment of non-audit services to the external auditor or to entities in its network. During its assessment, and with the support of Group Audit, the Board of Statutory Auditors ascertained the compatibility of said services with the prohibitions of s. 5 EU Reg. 537/2014, and the absence of potential risks to the independence of the external auditor arising from performance of the services, in light of the provisions of Lgs.Decree 39/2010 (ss. 10 et seq.), of the Issuers’ Regulation (s. 149-bis et seq.) and of Audit Principle no. 100. As the statutory pre-requisites were fulfilled, the BSA approved the commissioning of the service from EY or other entities belonging to its network. The fees for non-audit services provided by the external auditor or other entities belonging to its network to the Company and its subsidiaries in the 2019 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 in light of s.4 EU Reg. 537/2014.
9.3. Activities of the Board of Statutory Auditors for the assignment of the statutory audit engagement for the nine years 2021-2029
During the year, the Board of Statutory Auditors also issued the opinions, comments and attestations required by the applicable legislation. At the meeting of the Board of Directors held on 28 January 2019, the Board of Statutory Auditors expressed a favourable opinion on the remuneration of the Group Audit Function (attainment of 2018 targets and setting of 2019 targets) and the Audit Plan for 2019. At the meeting of the Board of Directors of 13 March 2019, the Board of Statutory Auditors expressed a favourable opinion pursuant to s. 2389 Italian Civil Code on the proposal to assign new shares to the Managing Director/Group CEO in connection with the resolution to raise the share capital to service the 2016 LTI plan. At the meeting of the Board of Directors of 5 June 2019, the Board of Statutory Auditors expressed a favourable opinion on (i) the resolution to raise the share capital to service the 2016-209 special share plan for the Managing Director/Group CEO; (ii) the remuneration proposal for the Chair of the Board of Directors. At the meeting of 20 June 2019, the Board of Statutory Auditors expressed a positive opinion on the determination of the remuneration of the Managing Director/Group CEO, also with regard to the 2019 LTI plan.
During the 2019 financial year the BSA also regularly commented on the half-year reports on complaints prepared by the Group Audit Function in compliance with ISVAP Regulation no. 24 of 19 May 2008 as amended. The reports did not highlight any particular problems or organisational deficiencies. The BSA also checked that the Company sent the reports and associated BSA comments promptly to IVASS.
The Board of Statutory Auditors has received no notification of complaints under s. 2408 Italian Civil Code during 2019 and the early months of 2020.
No censurable facts, omissions or irregularities to be reported to the Regulators emerged from the supervisory activities performed.
With reference to all the considerations set out in this Report, the Board of Statutory Auditors finds no reason to object to the approval of the Separate Financial Statements of Assicurazioni Generali S.p.A. as at and for year ended 31 December 2019, as submitted to you by the Board of Directors. With regard to the proposal formulated by the Board of Directors on 12 March 2020 to distribute a dividend arising entirely from the profit for the year, the Board of Statutory Auditors wishes to draw attention to the following. On 17 March 2020, the EIOPA issued a statement on action to mitigate the impact of COVID-19 on the European insurance sector, which the Board of Statutory Auditors received and promptly examined. The EIOPA indications, in particular the invitation to insurance companies to adopt prudence in their dividend distribution policies and variable components of remuneration for company representatives, were analysed by the Board of Directors on 23 March 2020: after a wide-ranging discussion that included the relevant corporate functions, the directors decided to confirm the proposals drawn up on 12 March 2020 on the agenda of the next Shareholders ’ Meeting. The Board of Statutory Auditors followed the considerations of the Board of Directors, supported by sustainability checks based on the information available, and specifically the decision to proceed with the dividend proposal, and has no observations to make on the question.
On the basis of the information provided to the Board of Statutory Auditors, the Company’s Board of Directors will meet shortly to discuss the recommendations of the European and national regulators. The Board of Statutory Auditors reminds the Board of Directors of the importance of making a decision on the basis of a reasonable and prudent approach appropriate for the current situation of uncertainty.
Opinion We have audited the consolidated financial statements of Generali Group (the Group), which comprise the balance sheet as at December 31, 2019, the income statement, the statement of comprehensive income, the statement of changes in equity, the statement of cash flow for the year then ended and the explanatory notes.
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 Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Assicurazioni Generali S.p.A. in accordance with the regulations and standards on ethics and independence applicable to audits of financial statements under Italian Laws. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
The financial statement information relating to goodwill is disclosed in the explanatory notes in the section “Accounting principles” and in note n. 4.
The audit response included several procedures, the most relevant of which are outlined below: · An understanding of the process related to the determination of the recoverable amounts designed by the Group and of the related key controls, as well as the testing of these controls, taking into consideration the impairment test procedures approved by the Board of Directors on February 13, 2020; · The evaluation of the appropriateness of the methodologies applied by the Management to determine the recoverable amounts; · The evaluation of the reasonableness of the assumptions used by the Management to determine the recoverable amounts, in particular with reference to flows of dividend extrapolated from business plans, nominal growth rates and cost of capital; · The analysis of related results. We also involved valuation specialists to assist us in performing our audit procedures. Finally, we assessed the adequacy of the disclosures provided in the explanatory notes.
The financial statement information relating to non-life insurance provisions is disclosed in the explanatory notes in the section “Accounting principles” and in note n. 13.
The valuation of the non-life technical provisions is therefore a well-structured estimation process that requires the use of complex methodologies and statistical and actuarial calculation models, characterized by a high level of subjectivity when choosing the assumptions, such as the frequency and average cost of the claims, used as input to develop the estimate. This is further highlighted in long-tail businesses such as motor, which represent around 45% of total provisions.
The audit response included several procedures, the most relevant of which are outlined below: · An understanding of estimation process of non-life technical provisions designed by the Group and of the related key controls, as well as the testing of these controls; these procedures were carried out with reference to the controls over completeness, accuracy and appropriateness of data related to the insurance portfolio used to calculate the non-life technical provisions, taking into consideration also the control activities performed by the actuarial function of the Group and the related results; · The evaluation of the appropriateness of the methodologies and the reasonableness of the assumptions used to estimates the non-life technical provisions, including the additional technical provisions; · Comparative analyses through the calculation of appropriate indicators observed historically and their correlation with other significant financial statements indicators, as well as the consistency with other financial statements information, the expected values and the results determined in previous financial years; · The verification, for each line of business deemed significant, that the estimated amount of the technical provisions is included in a range of acceptable values, also through independently reperforming of the
Life technical provisions estimation The technical provisions of the life segment, recorded at 31 December 2019 for an amount equal to Eur 387,560 million, refer to insurance contacts and investment contracts with discretionary participation features. According to IFRS 4, the provisions are accounted for based on local GAAP applied by the individual insurance companies of the Group in their separate financial statements. Liabilities related to these contacts are determined analytically for each type of contract on the basis of appropriate actuarial assumptions, and are adjusted to cope with all existing commitments in the best estimates scenario; these also include the policyholders’ share of the difference between the carrying value of the basis on which the profit sharing is determined and the corresponding value used to determine the current profit retroceded to the policyholders (“shadow accounting”). In accordance with IFRS 4, in order to verify the adequacy of the life technical provisions, a Liability Adequacy Test (LAT) is carried out. This test is performed through the comparison of the IFRS reserve, which include the impact of “shadow accounting”, net of any deferred acquisition costs (DACs) or intangible assets related to the contracts under analysis (VoBa), with the current value of future net cash flows relating to insurance contracts.
The valuation of the life technical provisions is therefore a well-structured estimation process that requires the use of complex statistical and actuarial calculation methods and models, characterized by a high level of subjectivity when choosing the assumptions, such as mortality, morbidity, discount rates, expenses and inflation.
For these reasons, we considered this aspect a key matter for our audit.
In preparing the financial statements, the Directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Parent Company Assicurazioni Generali S.p.A. or to cease operations, or has no realistic alternative but to do so. The statutory audit committee (“collegio sindacale”) is responsible, within the terms provided by the law, for overseeing the Group’s financial reporting process.
Auditor’s 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 auditor’s 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 International Standards on Auditing (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 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 International Standards on Auditing (ISA Italia), we have exercised professional judgment and maintained professional skepticism throughout the audit. In addition: · we have identified and assessed the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, designed and performed audit procedures responsive to those risks, and obtained 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; · we have obtained 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;
· we have evaluated the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors; · we have concluded on the appropriateness of 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 auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern; · we have evaluated 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.
Additional information pursuant to article 10 of EU Regulation n. 537/14 The shareholder of Assicurazioni Generali S.p.A., in the general meeting held on April 30, 2011, engaged us to perform the audits of the separated and consolidated financial statements of each year ending December 31, 2012 to December 31, 2020.
We declare that we have not provided prohibited non-audit services, referred to article 5, par. 1, of EU Regulation n. 537/2014, and that we have remained independent of Assicurazioni Generali S.p.A. in conducting the audit.
Opinion pursuant to article 14, paragraph 2, subparagraph e), of Legislative Decree n. 39 dated 27 January 2010 and of article 123-bis, paragraph 4, of Legislative Decree n. 58, dated 24 February 1998 The Directors of Assicurazioni Generali S.p.A. are responsible for the preparation of the Report on Operations and of the Report on Corporate Governance and Ownership Structure of Generali Group as at December 31, 2019, including their consistency with the related consolidated financial statements and their compliance with the applicable laws and regulations.
We have performed the procedures required under audit standard SA Italia n. 720B, in order to express an opinion on the consistency of the Report on Operations and of specific information included in the Report on Corporate Governance and Ownership Structure as provided for by article 123-bis, paragraph 4, of Legislative Decree n. 58, dated 24 February 1998, with the consolidated financial statements of Generali Group as at December 31, 2019 and on their compliance with the applicable laws and regulations, and in order to assess whether they contain material misstatements. In our opinion, the Report on Operations and the above mentioned specific information included in the Report on Corporate Governance and Ownership Structure are consistent with the consolidated financial statements of Generali Group as at December 31, 2019 and comply with the applicable laws and regulations.
With reference to the statement required by art. 14, paragraph 2, subparagraph e), of Legislative Decree n. 39, dated 27 January 2010, based on our knowledge and understanding of the entity and its environment obtained through our audit, we have no matters to report.
Statement pursuant to article 4 of Consob Regulation implementing Legislative Decree n. 254, dated 30 December 2016 The Directors of Assicurazioni Generali S.p.A. are responsible for the preparation of the non-financial information pursuant to Legislative Decree n. 254, dated 30 December 2016. We have verified that non-financial information has been approved by Directors.
Adjusted net profit: it is the result of the period adjusted for the impact of gains and losses from disposals.
Aging and evolving social security: the increased life expectation and the reduced birth rates 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 balances, with increased welfare costs borne by the population of working age.
Biodiversity losses and vulnerability of our ecosystems: the expansion of the farming and urban areas to the detriment of the natural habitats, the increase in pollution levels and the climate change are leading to a rapid extinction of many animal and plant species, with a gradual impoverishment of biological diversity and the gene pool. The progressive collapse of the natural ecosystems forms a growing risk for man as it impairs the food chain, reduces resistance to pathogenic agents 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 actions, but also as regards those of the supply chain.
Cash and cash equivalents: it includes 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.
Cash remittance: dividends and dividend-equivalent permanent or long-term transactions from subsidiaries towards the Parent Company (e.g. capital reduction or permanent debt reimbursement) measured on a cash basis.
Climate change: global warming due to the introduction of greenhouse gases into the atmosphere coming from anthropic activities is intensifying extreme natural events such as floods, drought, storms, rise in sea level 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. 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.
Companies of the coal sector (also identified as customers of the coal sector or issuers of the cola sector): category that includes companies for which over 30%
of revenue or over 30% of energy produced derive from coal, mining companies that produce over 20 million tons a year of coal or companies actively involved in building new coal capacity (coal plants) as identified by Urgewald in its Top 120 Coal Plant Developers’ list.
Current year loss ratio: it is a further detail of combined ratio calculated as the ratio of: – current year incurred claims + related claims management costs net of recoveries and reinsurance; to
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).
Diversity & Inclusion index, D&I index: it measures the attainment of Diversity & Inclusion ambitions on gender, generations, cultures and inclusion through eight indicators (female managers, female talent, talent under the age of 35, new hired employees with average age less than 30 years, employees on roles needing new critical skills, talents with international experience, organizational entities with smart working and organizational entities with local action plans on disability).
Earnings per share: it is equal to the ratio of Group net result and to weighted average number of ordinary shares outstanding.
Employment dynamics and restructuring of business landscape: the new technologies, globalisation and the economy’s expansion of the service industry are changing the labour market with the spread of a flatter and more fluid organisation of work, as the growth in agile and flexible work, rotation of tasks 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 world of production and enterprises, the number of SMEs is increasing in Europe and we are witnessing a reduction and radical transformation of the traditional industrial sectors and the production processes are becoming global in scale with an increased complexity of the supply chains.
Extreme events: the concentration of the population and of the production activities in urban contexts are increasing the risks associated with extreme events, such as earthquakes and tsunamis, catastrophes triggered by man such as technological, radiological incidents, serious health emergencies and terrorism, demanding the strengthening of system to prevent, prepare for and respond to extreme events in order to increase the resilience of the territories and communities.
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
Fixed income instruments: 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 investments funds that are mainly exposed to investments or risks similar to direct investments presented within this asset class.
Growing expectations toward corporate purpose, sustainability practices and transparency: the key stakeholders of companies, such as investors, consumers and employees - especially in Europe and with particular reference to the millennial generation - are ever more attentive and demanding regarding 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 classic obligations of remunerating the capital of investors and satisfying customers. The growing number of profit-making benefit companies, cooperatives and social companies stands as proof of this trend.
Investments back to unit- and index-linked policies: various types of investments backing insurance liabilities related to unit and index-linked policies.
Key functions: they are the Internal Audit, Compliance, Risk Management and Actuarial functions.
London Benchmarking Group (LBG): it is an international standard for companies to report their activities in the community. It 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.
Managed reports related to the Code of Conduct: they are the reports 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.
Mathematical provisions: it is the amount that shall be set aside by the insurance company to meet its future obligations to policyholders.
New households: multi-culture families and single person: the migration phenomena and increased international mobility are enlarging the cultural diversity of the modern globalised societies and are transforming the preferences and market of the consumers, management of work contexts and political debate. Also the physiognomy 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 emancipation of women, 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-member householders to situations of hardship - such as loss of employment or disease - is growing.
Operating result: it is the result of the period before taxes, before interest expense on liabilities linked to financing activities, certain net financial income as well as non-recurring income and expenses. Please refer to the chapter Methodological notes on alternative performance measures for further information.
Operating return on investments: it is an alternative performance measure of both the Life and Property & Casualty segments, calculated as the ratio of the operating result to the average investments at IAS/IFRS book value, as described in the chapter Methodological notes on alternative performance measures.
Other investments: it includes participations in non-consolidated companies, associated companies and joint ventures, derivative investments and receivables from banks and customers, the latter mainly related to banking activities by some Group companies.
Prior year loss ratio: it is a further detail of combined ratio calculated as the ratio of: – previous year incurred claims + related claims management costs net of recoveries and reinsurance; to
PVNBP, present value of new business premiums: 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.
Regulatory complexity & need for an integrated governance: faced with increasingly interconnected financial systems and global expansion of corruptive and criminal economy phenomena, the production of laws and regulatory mechanisms is increasing, especially for the financial sector, in order to regulate this complexity and to share prevention and fight against illegal activities with the sector’s professionals. 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, RNPS: it is an indicator calculated from customer research data. A pre-defined market representative sample is surveyed on a regular base. Specifically, customers are asked to assess their propensity to recommend - or not - Generali to their closest persons (family members, friends and colleagues) 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.
Social media and unmediated access to information: the new communication technologies, social media and web platforms are increasingly augmenting the speed, ease and amount of information exchanged between people, governments and companies. 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.
Sustainable Development Goal (SDG): 17 objectives contained in the 2030 Agenda for sustainable development, launched by the United Nations.
Trained employees: employees who attended standalone training activities designed for one target group, dealing with one topic and not embedded in daily work. They include those employees trained during the period who left the Group before the end of the period.
Training investment: they include all direct costs for formal learning, except for those for on-the-job training.
Urbanization: the urban areas host a growing percentage of the human population. 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 dictated by more sustainable planning.
Weighted average cost of debt: it is the annualized cost of financial debt considering the nominal amounts at the reporting date and the related transactions of currency and interest rate hedging.
Photos Lapresse/Marco Alpozzi, Studio Borlenghi, Luca Cervesato, Francesca Gaspari, Federico Guida, Giuliano Koren, Richard Morgano/DueEsse Group.