Generali Profits up 15.2% to $2.3 Billion

March 27, 2006

Italy’s Generali Group posted strong 2005 results with consolidated profits rising to €1.9186 billion ($2.3096 billion) up 15.2 percent from the €1.6658 billion ($2.005 billion) it earned ion 2004.

Other highlights cited in the Groups earnings report included the following:
— embedded value (ev) increases to € 25 billion [$30.1 billion] from € 22,9 billion [$27.57 billion]
— roev [return on embedded value] at 12.3 percent
— target 2006 – profit expected to grow to € 2.2 billion [$2.65 billion]

Generali’s report also noted that its consolidated profit results exceeded its 2005 targets, and gave the following additional highlights:
— dividend up by 25.6 percent to € 0.54 [65 cents] per share
— premium income increases further to € 62.834.7 billion [$75.64 billion] (+13.1 percent on a like-for-like basis) life +18.1 percent; non-life +1.6 percent
— combined ratio improves to 97.9 percent from 98.9 percent
— overall expense ratio falls to 13.9 percent from 16.1 percent
— total new business volume up 12.1 percent to € 776 million [$934 million]
— shareholders’ equity increases 20 percent to € 17.554 billion [$21.13 billion]

Commenting on the accounts Chairman Antoine Bernheim stated: “The results for the final year of the 2003-2005 Industrial Plan demonstrate the Group’s ability to deliver successfully its targets, even under difficult market conditions, creating value for shareholders. From this strong base, the Group will build on this progress over the period of the new three-year Plan and continue on a path of growth and development.”

He noted that Generali had reached its targets “thanks to the initiatives undertaken over the past three years, which have of the key companies and businesses, and by the concerted development of our country units. This has allowed the company to deliver market-beating results. In particular, the unification and restructuring of procedures as well as the standardization of IT platforms in each country has led to a 2.3 percent reduction in absolute terms of acquisition and administration costs and to a 2.2 percentage point fall in expense ratio, which improved to 13.9 percent (2004: 16.1 percent).”

The entire report and the analysts’ conference presentation may be obtained on the Group’s Website at: www.generali.com.

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