Assicurazioni Generali S.p.A.

Good afternoon. This is the Coruscant conference operator. Welcome and thank you for joining the Generali Group first quarter 2026 results presentation. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference, call them and signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Fabio Cleva, Head of Investor and Rating Agencies Relations. Please go ahead, sir.

Hello, everyone, and thank you for joining our first quarter 2026 results call. Here with us today, we have the Deputy Group CEO, Giulio Terzariol, the Group General Manager, Marco Susana, and the Group CFO, Cristiano Borean. Before opening for Q&A, let me hand over to Giulio and Cristiano for some opening remarks.

Hello, everyone. Good morning, and thank you for being with us today. The first quarter of 2026 results mark another step forward in the successful delivery of our Lifetime Partner 2027. We are now in the second year of our plan, and our focus on excellence in core capabilities continues to deliver tangible value for our customers, employees, and shareholders. We have reinforced the role of the group centers in the implementation of the initiative, especially when it comes to technology and artificial intelligence. This approach allows us to scale best practices more effectively and reap the benefits of our fully integrated group. Overall, we have delivered strong growth in both operating and adjustment results, thanks to contributions from all segments. Let me highlight a few achievements from the first quarter that clearly demonstrate the success of our strategy. Starting with P&C, gross insurance revenue grew by $575 million, or almost 7% year-on-year. This top-line growth has a lot of quality needs. While revenue growth continues to be mainly driven by price effects in both motor and non-motor, volume growth is increasing its positive contribution, with volumes in rich and non-motor growing 1.8%, and we need even faster growth in accident, health, and disability at 3.4%. Let me also mention that Europe Assistance has increased its consolidated growth turnover to 1.2 billion in the first quarter, marking almost 15% year-on-year growth. Looking at MOTO, following two years of deep pruning and a recovery in profitability achieved in 2025, we saw positive development with risks in force growing about 1%. Let me tell you that we could have achieved a higher volume growth in MOTO by spending the book to more aggressive pricing. However, as we said previously, we are squarely focused on cycle management. Therefore, we deliberately have made a strategic decision not to grow the numbers of contracts faster at a time where price is slowing down and without further clarity on the implication of the Middle East situation and the cost of claims. In this context, we are disciplined and continue to explore additional growth opportunities only in very selective markets. A quick comment on the net cat load, which has been rather significant in this quarter. This was mostly related to the heavy storms that hit the Iberian Peninsula, and particularly Portugal, which represented almost 70% of our gross net cat losses. This is broadly aligned with the most recent insured industry losses for case reserve before IBNR that amount to approximately 1.3 billion for Portugal only. In this context, our underlying performance was very healthy, with more than one full percentage point improvement in the attritional current year loss ratio, thanks to both motor and non-motor. As I like in the press release, the amount of man-made losses was almost double that of last year, at around 65 million, amounting to zero percentage point of the loss ratio. Therefore, the underlying improvement of the efficient current year loss ratio, excluding man-made, is close to 150 basis points year-on-year. As you know, our target for P&C efficiency is the JAX ratio, which improved by 60 basis points year-on-year to 13.7%. This ratio represents a positive improvement journey in a more targeted way than the full expense ratio, capturing what we are doing to transform our core function. including claims, IT, customer operation, and underwriting. We have a strong focus to push forward the extensive deployment of AI agents that automate workflows, augment employee decision-making, improve service quality, and drive operational efficiency at scale. The report expense ratio 29.3 is up 40 business points, reflecting high acquisition costs and also the business mix. If you look at the expense ratio excluding Europe assistance, it would be basically flat year-on-year at 28.7%. Look at the acquisition cost and isolation. The reported 21.2% of the first quarter would be 20.3%, excluding Europe assistance, and the year-on-year change would be in the order of 20 basis points as opposed to the reported 50 basis points increase. As we mentioned previously, we are implementing actions that will enable us to achieve not only a better tax ratio, but also an improved expense ratio. Let's move now to life, where we have achieved very strong inflows of $4.3 billion, driven by contributions from all lines of business and benefiting from further improvement in leapsies. Compared to the first quarter last year, we recorded higher inflows in traditional savings. This has been achieved with a strong level of new business margin and enabled us to record a very healthy growth in new business value. The first quarter production is fully aligned with our underwriting discipline. The weight of non-guarantee business is 75%. The overall guarantee is stable at 0.73%, and the share of capital-like business is 83%. The overall development in new business value is clearly very satisfying. To be noted, the first quarter benefits from positive seasonality, so I would caution not to extrapolate these numbers for the next quarters. But the key message here is that the light business continues to grow profitably and is growing without compromising our underwriting discipline. I'm also very pleased that protection health and accident, one of our key strategic drivers of profitable growth, showed a premium increase of 6% year-on-year, while recording also a better profitability. In asset and wealth management, we have already seen a few days ago the very good numbers from Banca Generali, where we continue to deploy the joint insured bank initiative with a positive initial development. In asset management, as we indicate in the press release, there is a positive contribution for non-recurring fees of around $15 million. They reflect the successful business positioning of our infrastructure business. Although transaction fees can be less regular in terms of frequency than recurring management fees, they are indicative of sound investment capabilities and also reflect the success of our infrastructure business in originating and executing deals. Before I hand over to Cristiano, some closing remarks on the overall macro environment. Financial markets have been priced in and increased in short-term inflation indicators due to higher oil prices. And while we are monitoring the situation very closely, we are confident in the strength of our business model. On the light front, the business is capitalized and the high-quality investment portfolio combined with disciplined ILM ensures stability and resilience. Additionally, we have proven many times that we are capable to adjust to different cycles and match consumer needs in all kinds of environments, also thanks to our strong distribution footprint. For P&C, we are very focused on preserving the excellent level of profitability, and we are watching very closely the development of severity and frequency, and in some cases, we are already preparing to take pricing actions. Also, please keep in mind that two-thirds of our P&C book is non-motor, and of this, 60% is inflation indexed. In addition, our investment yields are higher than originally projected, which also benefits the P&C operating results. Lastly, an environment of high inflation is also likely going to support the P&C pricing cycle towards a new hardening phase. And of course, This overall context creates an even stronger reason to push ahead with our key initiative on digitalization and automation. To summarize, the Lifetime Partner 27 plan execution is progressing very well and showing tangible results. Looking ahead, we remain fully committed to delivering on our plan objectives, maximizing profitable growth in P&C, leading life to quality production, and expanding assets and world management. We are proactively managing the cycle to ensure strong performance, enable and affect essential steering, combine with discipline, local execution, with a focus on technical excellence and productivity improvement. Thank you for your attention, and let me now hand over to Cristiano.