Insurance Business in the growth market from the Adriatic to the Black Sea

1. Insurance Business in thegrowth market from theAdriatic to the Black Sea Vienna Economic Forum 6 November 2006 Karl Stoss – CEO Generali Holding Vienna

2. The Generali Group: 175 Years of Tradition 1831 Foundation of Assicurazioni Generali Austro-Italiche in Trieste 1832 Opening of the first agencies abroad (Vienna, Prague, Budapest ...) 1882 Foundation of Erste Allgemeine in Austria. Around the turn of the century, a number of insurance companies were also set up or acquired in Italy, France, Hungary and Romania.

3. Generali in CEE before1914 Prague, Brno, Vienna, Ljubljana, Agram, Tirana, Budapest, Belgrade, Krakow, Warszaw, Lemberg, Bucarest, Sofia, Constantinopel …

4. The Generali Group worldwide Generali is one of the three largest insurance groups in Europe. The Generali Group comprises • 107 insurance companies • 119 financial and real estate companies

5. Generali Group Key Data 2005 27,2 % Gross premium income: €62.83bn Investments: €307.42bn Staff: 61,561 Central headquarters: Trieste (Italy) Non-Life 72,8 % Life

6. Number 3 in Europe Europe´s leading insurance groups based on premium income in 2005Premiums in €bn Aviva (GB) ING (NL) Munich Re (D) Zurich F.S. (CH) Prudential (GB) Cnp(F) Aegon (NL) Axa (F) Allianz (D) Generali Quelle: Generali Triest

7. New geographies CEE and Former Soviet Union • Organic growth: • Greater than 20% growth per annum in markets with relative low penetration (Slovakia, Slovenia, Romania and Croatia) • Pursuit of M&A based growth: acquisiton of companies in Serbia, Bulgaria and Ukraine China • Positioning among top foreign JVs and growth of Agency force ( >10,000 individuals) • P&C license already granted • Access to 6 new cities by 2008 • Established bancassurance agreements with major domestic banks India • Market entry via green field operation • Joint venture agreement signed in May 2006 • Composite approach

8. The Generali Vienna Group A major Central European insurance group has evolved under the umbrella of Generali Holding Vienna AG. It is made up of companies in Austria, Hungary,the Czech Republic, Slovenia,Slovakia,Poland, Romania, Croatia and since 2006 Serbia, Bulgaria and Ukraine. The Generali Vienna Group comprises: • 23 insurance companies (including Serbia, Ukraine, Bulgaria and Libertas in Croatia) and • 38 holding, financial, real-estate and service companies (including pension fund Serbia)

9. Generali – A Powerful Partner in C & E Europe Entry intoPremiums Market Population Market (€mn) share (%) (mn) Austria 1832 2,073 13.2 8.1 Hungary 1989 430 16.2 10.1 Romania 1993 36 2.8 21.6 Czech Republic 1993 182 4.8 10.3 Slovenia 1996 28 2.3 2.0 Slovakia 1996 45 3.6 5.4 Poland 1999 100 2.2 38.6 Croatia** 2002 19 1.9 4.4Serbia* 2006 40 10.0 7.5 Bulgaria*** 2006 28 5.8 7.8 Ukraine*** 2006 48 1.6 ->10%+ 47.3 * Generali Group acquired majority shareholding in Delta Osiguranje, Serbia‘s largest private insurance company and in Delta Re ** Generali acquired 100% of Libertas Osiguranje d.d. in 2006 *** Acquisition currently in process + The Ukrainian insurance market is seriously distorted by the insurance of financial risks

10. Macroeconomic Overview Source: IMF

11. CEE economic growth outpacing Europe Real GDP growth (%) • Strong economic conditions • Higher GDP growth rates than that of Western Europe • EU enlargement leads to increased macro-economic stability +3.2 pp Source: IMF Medium-term real GDP growth of emerging markets, 2006-2010 (%) • CAGR 2006-2010 +4.2% • CEE is expected to continue to grow faster than Western Europe… • …leading to higher per capita income Source: Swiss Re

12. Outstanding Growth Prospects for the insurance business Markets development pattern As seen in recent years: Insurance penetration (premium on GDP) UK Japan USA World IT Euro Area SK CZ TH China CEE Source: Swiss Re India H PL PH Per capita GDP (logarithmic scale) …Strong economic conditions, rising disposable income and favourable demographic factors are expected to increase life and non life penetration rates

13. Non-life insurance: on a growth track Real premium growth, 2004-2010 (in USD bln) Key drivers of future developments Non-life premiums • Stable economic growth • Infrastructure investments • Increasing household assets • Development of compulsory insurance • Fiscal incentives to invest in property • Leasing schemes development constant 2004 prices Source: Swiss Re

14. Pensions Savings Life Markets opening Outstanding growth prospects for life insurance Real growth rates per region 1993-2004 Key drivers of future developments CAGR in USD • Savings accumulation • Private Pension market development • Increasing risk awareness 93-04 CAGR 00-04 CAGR Source: Swiss Re Real premium growth, 2004-2010 (USD bln) constant 2004 prices Source: Swiss Re

15. Fast pace of growth for Financial Savings Increasing awareness of savings need Better financial system reputation Financial assets (€ bln) Increasing n° of people with financial surplus +30% Economic growth CAGR: +25% +40% +22% Hungary Slovakia Poland CzechRepublic Source: BCE, National Statistical Centers

16. Savings and pensions trends pushing Life insurance growth

17. RUS UKR SCG RO BG PL CZ HU HR SK Generali strategic view in CEE Market dimension Development stage Strategicview • We aim at realizing early mover’s advantage Early stage • Strong organic growth and selection of opportunities High growthmarkets • Hold on with focus on quality Relatively mature market SI

18. Experience from the expansion to CEE • No 2 countries are the same – the methods in developing market presence in a country can be duplicated, but the solutions are always different due to various factors • The strategy had to be changed repeatedly throughout the years since 1989 – from green field to merger and acquisition • There is a need for an actively supported exchange between the countries in order to optimise know-how  Best practice - exchange – targeted use of group knowledge Mobility-management

19. What do we have to do, to ensure continuous successful development in the CEE in the future ? • Acquisition expansion – changes to earlier strategies of green field- professional M&A-Management- professional Post-Merger-Integration • Ensure exploit of Group Synergies- espacially within the company • Development of the necessary growth related products in the life insurance field • High Management Attention is necessary – if this is not available, acquisitions and integration will not succeed

20. Lettland Litauen Weißrussland Polen Ukraine Tschechien Slowakei Moldawien Österreich Ungarn Slowenien Rumänien Kroatien Bosnien Bulgarien Serbien-Montenegro Mazedonien Albanien Success factors of Generali in CEE • Generali has always been international – since set up – and understands the long-term management of a very diverse Group – this is part of our business culture • Adequate financial means • Adequate international management know-how and management-ressources – also across continents • Ability to maintain consistent development and expansion • Well known and traditional Brand – embodies long term stability and strength

21. Insurance Business in thegrowth market from theAdriatic to the Black Sea Vienna Economic Forum 6 November 2006 Karl Stoss – CEO Generali Holding Vienna