Half Year 2022 Assicurazioni Generali SpA Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Michael Igor Huttner - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : I had 2 questions. First one is on cash flow and cash at holding. I know it's not in the presentation, and I know it's not normally something you speak of, but given the strength in solvency, maybe you can say a few words. I remember the figure of EUR 4.1 billion in December, and you reiterated your cash remittance guidance, which I think is over EUR 8.5 billion or something for the 3 years. So I just wondered maybe you can give us a feel for this figure now. I was thinking maybe EUR 3.3 billion was the figure in December. The second is on Cattolica. Philippe, you said -- it was interesting you said Cattolica might -- interpretation get better, and EUR 140 million in the second half year. And I just wondered how quickly it could get better? I remember the figure of EUR 80 million improvement, but maybe there's already something which could happen now that you're close to the squeeze-out state. And my third question is very simply on the motor. Coming back -- I'm sorry, the efficiency of your IR, I understand Motor -- so you published a figure of 97.4% in the half year combined ratio. Last year, as I understand, it was REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 02, 2022 / 10:00AM, GASI.MI - Half Year 2022 Assicurazioni Generali SpA Earnings Call 88%. So it's a 9% point deterioration. And both -- Cristiano and Philippe, you both mentioned that this will normalize. My fear is that it will normalize, but it will go to 100% before it normalizes. What can you say to kind of -- against that?

Question: Steven Haywood - HSBC, Research Division - Analyst : Sort of 2 questions from me following on to the previous question about the reinvestment and investment yield. I saw that your Life reinvestment new money yield is around 2.0% and it's only increased 50 basis points since the first half last year, which seems low considering where markets REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 02, 2022 / 10:00AM, GASI.MI - Half Year 2022 Assicurazioni Generali SpA Earnings Call have moved and considering that your P&C reinvestment rate is now at 2.3%. Can you explain what is going on here? I noticed also that your bond duration has dropped by over a year as well in your Life business. And secondly, on financial debt leverage. On a Solvency II basis, you provided this disclosure of the full year results of 19.6%. Can you give an update of what that leverages as of the first half 2022? And would you be able to give us a financial debt leverage on Solvency II, but excluding the expected profits included in future premiums, is that possible?

Question: William Fraser Hardcastle - UBS Investment Bank, Research Division - Analyst : The first one is very simple. Thanks very much for giving us those inflation data points for motor across your core regions. I guess asking something very simple, and I'm sorry if I missed it, what have the price increases been on those year-on-year so far? You talk about a price injection and another price injection. Are we trending above that? Or is it once we've got the next price injection you'd hope to be around there? And the second one is just thinking about higher wage costs, thinking about risk of recession, I guess. Within your non-motor portfolio, are there specific lines of business there that you'd look to be taking proactive action or in order to stay ahead of that, thinking about other things, other than just indexation clauses?