Outlook

The US hit a speed bump in the first quarter but is still expected to continue to outperform other advanced economies. Meanwhile, the Euro area may be impacted by trade uncertainties but is expected to see a modest improvement in the second half of the year. Growing tensions in the transatlantic alliance imply a relaxation of EU fiscal constraints to fund defence spending. Disinflation is progressing at a slow pace globally, as wage growth normalises. US tariffs and ensuing retaliation could further slow this progress. After moving largely in tandem on rate cuts in 2024, the paths of the Fed and the ECB have started to diverge, with the Fed possibly holding off until mid-year while the ECB has proceeded with a sixth rate cut at the beginning of March.

With the new Lifetime Partner 27: Driving Excellence strategic plan, which focuses on excellence in customer relationships, excellence in core capabilities and excellence in the Group operating model, the Group will accelerate profitable growth in Life by capitalising on its broad customer base and strong distribution footprint. In addition, the Group will improve technical proficiency to increase profitability and enhance effectiveness by scaling Group-wide assets across the value chain. Focus will remain on simplification and innovation, offering updated and integrated solutions to adapt to evolving customer needs throughout their lifetime.

In Life, primary focus areas include protection and health, as well as capital-light savings with the aim to create a wide range of insurance solutions adapted to different risk and investment profiles for the benefit of both the policyholder and the Group. For protection and health products, the Group aims to offer integrated end-to-end services and will also further upgrade customer experience and distribution. Hybrid and unit-linked offerings will continue to be a priority to address growing customer needs for financial security with the objective of becoming the go-to partner for retirement and savings.

In P&C, Generali's objective is to maximise profitable growth with a focus on the non-motor line, strengthening its position and offering especially in countries with high growth potential. The Group confirms and strengthens its adaptive approach towards tariff adjustments, also considering rising reinsurance coverage costs due to the increased natural catastrophe claims in recent years. The non-motor offer will continue to be enhanced with additional modular solutions designed to meet specific customer needs, providing improved and innovative prevention, assistance and protection services, enabled by the latest digital tools.

With reference to the Group’s investment policy, it will continue to pursue an asset allocation strategy aimed at ensuring consistency with liabilities to policyholders and, where appropriate, at increasing current returns. Investments in private and real assets continue to be an important part of the Group’s strategy, following a prudent approach that considers the lower liquidity of these instruments. In the real estate sector, the Group is pursuing both geographical and sector diversification, closely monitoring and evaluating market opportunities as well as asset quality.

In Asset & Wealth Management, Asset Management will continue to expand the product offering, particularly in real assets and private assets, enhance distribution capabilities, and extend its presence in new markets, further supported by the acquisition of Conning Holdings Limited, completed in 2024. In Wealth Management, the Banca Generali group will continue to focus on its targets of size, profitability and high shareholder remuneration.

After successfully over-delivering against the financial targets of its Lifetime Partner 24: Driving Growth plan, the Group is committed to delivering – through the new Lifetime Partner 27: Driving Excellence plan – new ambitious 2025-2027 growth targets:

• strong earnings growth: 8-10% EPS CAGR¹
• solid cash generation: > €11 billion Cumulative Net Holding Cash Flow²
• increasing dividend³ per share: > 10% DPS CAGR with ratchet policy

With a clear capital management framework with increased focus on shareholder returns:

• more than € 7 billion in cumulative dividends⁴ (2025-27)
• committed to at least €1.5 billion share buyback⁵ over the plan horizon
• € 500 million buyback to be launched in 2025⁶