Milan, 7 April 2005 Egregio dottor Giovanni Perissinotto

Milan, 7 April 2005
Egregio dottor
Giovanni Perissinotto
Amministratore Delegato
Assicurazioni Generali S.p.A.
Piazza Duca degli Abruzzi, 2
34132 TRIESTE
Egregio dottor Perissinotto,
DISCLOSURE OF VALUE OF IN-FORCE AND NEW BUSINESS
Tillinghast, the global actuarial and management consulting business of Towers
Perrin, has provided advice to the Generali Group regarding the methodology to be
used, the derivation of the assumptions and the calculation of the value of in-force
business as at 31 December 2004 and of the value added at point of sale by new
business written in 2004.
The group has calculated values in respect of its consolidated life insurance and
pensions business, including the value projected to emerge in the group's asset
management companies which is directly associated with life insurance in Italy,
Germany and Switzerland.
Tillinghast has also assisted the group in the calculation of equivalent values for the
two principal retail asset gatherers in the group, the private banking business of BSI
SA and the distribution and asset management business of Banca Generali S.p.A.,
including the value projected to emerge in the group's asset management companies
which is directly associated with this business.
The aggregate results, which are to be disclosed in a presentation to the financial
community on 13 April 2005 together with supplementary information providing
additional background to the methodology and assumptions used, are shown in the
following table:
Towers, Perrin, Forster & Crosby, Inc., Capitale Sociale: USD 36.280,00 i.v.
Sede secondaria per I’Italia — Registro Imprese di Milano, C.F. e P. IVA IT 08946420158 R.E.A. 1260190
Via Pontaccio, 10 - 20121 Milano tel (39) 02 863 921 fax (39) 02 809 753 www.towersperrin.com
Ufficio di Roma: Via Boezio, 6 - 00192 Roma tel (39) 06 3280 3420 fax (39) 06 3280 3501 www.towersperrin.com
Egregio dottor Giovanni Perissinotto
Milan, 7 April 2005
Page 2.
Values after tax, external reinsurance, cost of solvency capital and minority
interests (€ millions)
Life insurance and
pensions business
Value of in-force business
Value added by new business
Retail asset gathering
business
8,900
567
653
39
The values have been determined using methodology typically used in traditional
embedded value reporting. In particular, assumptions have been set in a
deterministic fashion which does not, therefore, reflect the consequences of the
natural volatility of certain experience assumptions, particularly those for investment
returns. Allowance for risk has been made through the use of a single risk discount
rate per territory and an explicit assumption for the cost of holding a certain level of
solvency capital.
Tillinghast has reviewed the methodology and assumptions used by the group and
has reviewed the resulting values, without, however, undertaking detailed checks of
all the calculations. On the basis of the data made available, Tillinghast considers
that the methodology used is reasonable and in accordance with sound actuarial
principles; that the operating assumptions used are reasonable in the context of the
group’s recent operating experience; and that the economic assumptions, risk
discount rates and allowance for the cost of solvency capital are typical of those used
in traditional embedded value reporting. Although certain approximations were
necessary in the calculation of values for some of the smaller subsidiary companies,
Tillinghast considers that in aggregate the results are reasonable.
Yours sincerely
Andrew Milton
Fellow of the Institute of Actuaries
Geoffrey Jones
Fellow of the Institute of Actuaries