Lorenzo Kravina

1. Insurance and economic development in the Adriatic/Balkan region – Role and Initiatives of Assicurazioni Generali Lorenzo Kravina 9th March 2010

2. Generali: strategy and presence in the region Generali: an International Group actively present in CEE

3. Generali: a long tradition of international presence • Generali: founded in 1831 in Trieste by a group of businessmen. Trieste was then the Head Quarters for the activities in the Austro-Hungarian empire • “Generali” means wanting to operate in all insurance domains in a multi-country, multicultural environment • Generali became an Italian company in 1919. Its mission and nature has always been international • The Balkans and Adriatic region are our neighbors, increasingly, our partners and opportunity for growth and cooperation

4. Core strategic elements of Generali Group 4 • Value steering • Operational efficiency • Commercial effectiveness • Technical profitability • Financial strategy & Risk Management • Geographical strategy Value creation

5. Geographic strategy: mature markets fuel growth in emerging markets 5 Mature core markets Emerging markets Reinvestment of free cash flow Transfer of know-how Focus mainly on Profitability enhancement Profitable growth

6. Phase 2-External growth We then expanded our activity in: • Poland • Czech Republic • Slovakia • Romania • Croatia • Slovenia • Serbia • Albania • Bulgaria • Russia 2002 2006 Zurich Serbia Bulgaria Ukraine CEE: rediscovering our historical roots 6 Since its foundation (1831) Generali has been actively present in CEE Starting in 1832 with several agencies in Hungary After the second world war the Group lost a total of about 186 buildings, 14 companies majority owned and other assets In 1989 we went back to the region through Generali Holding Vienna Phase 1-Greenfield operations 2008 1993 1996 1999 1989 2003 1997 Hungary Generali PPF Holding Czech Republic Romania Slovenia Croatia Slovakia Poland

7. Generali PPF Holding: the engine for profitable growth in CEE 7 • Present in 14 countries • 1st in Czech Republic with GWP 2,132 m EUR • 2° in Hungary with GWP 470 m EUR • 3° in Slovakia with GWP 204 m EUR and in Serbia with GWP 105 m EUR • 4° in Romania with GWP 179 m EUR Ceska Pojistovna Group Generali operations in CEE Generali PPF Holding 51% 49% • Profitable growth • Best-in-class technical and commercial capabilities; scale effect & cost synergies; Generali Group corecompetencies • Acceleration of expansion in high-potential markets • Enhanced managerial pool to accelerate our joint developments • Leverage on diversification of sales channels

8. Kazakhstan GPH is active in 14 countries covering 320 million inhabitants 8 Poland CzechRep Slovakia Belarus Hungary Russia Slovenia Ukraine Croatia * Romania * Serbia Kazakhstan Montenegro * Bulgaria Key to tables Data of 31.12.2009 except market shares of countries marked with (*), which is of 3Q2\\9

9. CEE potentials: insurance market with low penetration rates 2/1 9 Non Life Penetration rate 2008 (%) Source: Morgan Stanley Research

10. CEE potentials: insurance market with low penetration rates 2/2 10 Life Penetration rate 2008 (%) Source: Morgan Stanley Research

11. Generali – helping businesses, serving households, promoting savings “What can Generali Do for you?”

12. How can Generali support companies investing in the region? 12 • Strong, recognized, solid, highly rated Group • Professional management, sales networks and underwriting • Experienced and skilled asset management • Strong insurance know how and underwriting capacity in Non-Life Small and Medium Enterprises and Corporate clients segments • Leading position in Employee Benefits

13. Growing Italian investments in the region 13 • Growing Italian Investments in the region (*): • approx. 1,350 Italian companies present in the area with CAGR 2002-2008 = + 5%; • EUR 7,2 bn revenues generated by Italian companies present in the area with CAGR 2002-2008 = + 14%; • Varying degree of company sizes: • almost 85% of companies below 50 employees; • revenues driven by large projects • … our dedicated strategy. • A consistent product proposition for SMEs in the region: • All Risks concept for SMEs aligned to Italian offer • service provided locally by Generali network • dedicated local commercial actions to target this segment. • Setup of multinational programs for large clients: • definition of a centrally controlled insurance protection with the parent company • local policies issued in compliance with centrally agreed terms and conditions • local dedicated service provided by Generali network. The Italian Investments … SME: Small and medium enterprises (*) Source: ICE data on Slovenia, Croatia, Serbia, Montenegro, Bulgaria and Romania.

14. Generali Employee Benefit 14 Generali Employee Benefits (GEB) is the coordination centre and centre of excellence for the Generali Group as regards to employee benefit solutions focusing solely on the needs of multinational corporate customers. The product range reflects the international and cosmopolitan nature of the individuals and companies it serves. For international employers, it means they can provide their employees with a range of group life & disability covers and retirement & savings plans offering extensive investment options to help attract and retain the very best employees. • Risk Covers • Group Life • Total and Permanent Disability • Long Term Disability • Critical Illness Cover •  Accidental Death and Dismemberment cover • Spouse's and Orphan's Pension • Waiver of Premium • Healthcare Retirement Plans Defined Contribution / Money Purchase Plans

15. Generali Employee Benefit at the heart of Generali Group’s strategy 15 • Recognizedleader in the Employee Benefit market with • full focus on its Corporate customers • Truly international structure with 10 hub offices in major • cities of the world • A fast growing global network of more than 120 local • insurers in over 90 countries • Multicultural team of over 100 EB experts with a high • level of professionalism in more than 90 countries Over 120 local insurers More than 10 hub offices Over 100 EB experts …the Italian Companies • employee benefits package in line with marketsand best practices • ease of transferability for Expatriates with continuity of cover • benchmark of HR conditions in many countries • product innovation with second to none solutions in Pension / Risk & Healthcare • same contact to follow Italian companies expansion

16. The Region: improving the framework, cooperating with private players “What can the Region do for private insurers and financial institutions?”

17. Improving Regulation and Supervision 17 • There is constant progress in the Region’s regulatory and supervisory framework • Enabling regulation and supervision is a pre-condition for well-functioning insurance markets, thus attracting investment by significant international players • Over-regulated systems however might become an obstacle to the development of the insurance industry: “good rules (and supervision) not too many rules!” • Recent positive regulatory changes in the Balkan region include: • reasonable minimum capital requirements • establishment of a registry of certified actuaries • compliance of the insurance legislation with the EU Insurance Directives • alignment of financial reporting with international standards • Some country examples in the following slide =>

18. Regulatory and Supervisory Institutions in the Region: Great Progress! 18 SLOVENIA ISA (Insurance Supervision Agency) - independent legal entity, financially independent (entirely financed by a levy of 0.12% of insurers' GWP), constituted as a prudential regulator, supervision through quarterly financial returns results, 10 on-site inspections per annum, political role in mediating between the public and private sectors CROATIA HANFA (Croatian Agency for the Supervision of Financial Services) - independent financial service, financially independent (entirely financed by a levy of 0.6% of insurers' GWP), supervision through quarterly financial returns results, on-site and off-site supervision SERBIA NBS (National Bank of Serbia) - banking, leasing and pension funds regulator, partly financed by fees charged to regulated entities, supervision conducted by the Insurance Supervision Dept., tough regulator, annual on-site inspections, introduction of 'early warning system' ROMANIA CSA (Insurance Supervisory Commission) - autonomous entity, funded by license application fees and levies on premiums and commission income, analysis of companies' financial returns, on-site inspections every 2 years, compliance-based approach BULGARIA FSC (Financial Supervisory Commission) - autonomous government body, financed partly by the state budget and partially by levies from supervised entities, analysis of companies' financial returns, on-site inspections every 3 years

19. Looking forward : key factors for the development of the insurance industry 19 • Premise: Insurance development fosters growth and makes economies more resilient by mobilizing long term capital, investing it prudently, and helping individuals and firms protect against future, uncertain events, old age, income needs • What can Institutions and Government do to help: • Promote an enabling local framework (regulatory, legal, fiscal, …) allowing asset gathering through insurance companies to the benefit of economic development • Promote Life insurance and private pension products, still underdeveloped, through tax incentives to individuals and firms: the assets collected can represent a source for investments in areas of public interest, large companies, infrastructures • Promote transparency, financial education, information gathering and distribution • Promote Pension reforms as a key factor: population ageing forces countries to take decisions on pension systems. Insurance companies can play a significant role but for this clear rules of the game are necessary as well as the issuance of long term benchmark securities and inflation-indexed instruments to allow hedging