Note to the Management Report

The consolidated financial statements of the Generali Group as at 31 December 2015 were drawn up in accordance with the IAS/ IFRS international accounting standards issued by the IASB and The Generali Group’s consolidated financial statements at 31 December 2015 were prepared taking into account the IAS/IFRS issued by the IASB and endorsed by the European Union, in accordance with the Regulation (EC) No. 1606/2002, Legislative Decree No. 58/1998 as amended, and Legislative Decree No. 209/2005, as amended by Legislative Decree No. 32/2007.

The Generali Group presented its consolidated financial statements and notes in this report, in accordance with ISVAP Regulation No. 7 of 13 July 2007 as amended, and the information required under CONSOB Communication No. 6064293 of 28 July 2006. As allowed by the aforementioned Regulations, the Generali Group believed it appropriate to supplement its consolidated financial statements with detailed items and provide further details in the notes, also to meet the international accounting standards (IAS/IFRS) requirements.

The Group used the option provided for under art. 70, paragraph 8, and art. 71, paragraph 1-bis of the Issuers’ Regulations to waive the obligation to publish the information documents provided for in relation to significant mergers, de-mergers or capital increases by contribution of assets, acquisitions and disposals.

At 31 December 2015, the consolidated scope of the Group fell from 473 to 435 companies, of which 394 were consolidated on a line by line basis, and 41 measured with the equity method.

This report was drawn up in euros (the functional currency used by the entity that prepared the consolidated financial statements) and the amounts are shown in millions, rounded to the first decimal unless otherwise stated, and therefore the rounded amounts may not always coincide with the rounded total.

A description of the alternative performance measures presented in this report can be found in the Methodological note.

As noted above, the Management Report is prepared not only in accordance with the applicable law, but also according to the Content elements (already described at the beginning under Information on the report) as well as to the Guiding Principles envisaged by the International <IR> Framework issued by the International Integrated Reporting Council (IIRC) in December 2013.

The Annual Integrated Report adds to the Management Report to provide more information and clarify matters, expanding on it while maintaining a more rigorous and logical order.

As regards the Guiding Principles, the Strategic focus and future orientation principle is applied in the whole document.

In accordance with the Connectivity of information principle, the report should represent the combination and interrelatedness of the factors that influence the ability to create value over time. The key forms of connectivity used by Generali include the connectivity between qualitative and quantitative information, financial and pre-financial information1, in accordance with the information included in other communication tools. Other elements that improve the connectivity of information and the overall usefulness of the report are the cross-referencing (also thanks to the graphic component) and a clear language. The glossary can be used where the language is excessively technical. Generali also publishes an interactive version of the integrated financial statements on its website. This is another tool to further highlight the connectivity of information.

Generali maintains Stakeholder relationships to understand and satisfy their needs, especially in terms of information and dialogue. The stakeholder engagement process promoted by the Group involves the following stakeholder categories, both internal and external:

  • financial community: we regularly engage with investors, analysts and rating agencies to fulfil their information needs. The interaction takes place during quarterly results presentation, as well as during the Annual Shareholders’ Meeting and Investor Days. We also organise roadshows and attend sector conferences, providing them with the appropriate information. In 2015, discussions took place in the key financial centres. 
  • community (academia, experts and main business partners): some years ago we started interacting with students from the main Italian universities, providing specific sessions on our new reporting approach and on the implications at a national and international level. With a survey we are also taking their feedback and suggestions on the Integrated Report implementation. We are also interested in the experts’ view and started relevant meetings in 2015. In addition, we began to interact with some business partners: induction sessions also including hints and feedback to improve services and products that they are offering us. Overall we met more than 350 people in 2015.
  • legislators and Institutions: we regularly interact with regulators and the European Institutions to maintain good relationships and share authoritative and updated information in order to properly interpret and apply new regulations. We also offer our skills and contribute to public consultations for the definition of new laws and regulations in the sector, by providing, in view of our direct experience, concrete indications in order to safeguard the specificities of the Group and the insurance industry. To this purpose, we collaborate with several trade organizations such as The Geneva Association and the European Financial Services Round Table (EFR). Our active presence in these organizations allows us also to expand our knowledge of the different regulations and potential impacts. 
  • clients: customer satisfaction is key in running of our business. Consequently, we have developed a specific and tailored methodology to understand and identify actions to take based on customers and distributors’ feedback. 
  • employees: our people are our most valuable resource and we fully prioritize their engagement and empowerment. We therefore launched our first Global Engagement Survey.
Our report has been improved in many aspects also considering our stakeholders’ feedback, i.e. as to the connectivity among the different parts, becoming easier to read andwith a more logical structure. Conciseness was also improved. The diagram below shows the way from the Annual Integrated Report, drawn up in accordance with the Materiality principle, to the Consolidated Financial Statements, drawn up in accordance with the law.

As for Reliability and completeness, the Annual Integrated Report is supported by a structured information system, processing financial and pre-financial information, for Generali to increasehomogeneity and reliability of both types of information. As for the scope of the reporting, the performance indicators refer to the entire Group unless otherwise indicated.

In accordance with the Consistency and Comparability principle, the report includes information that is consistent with the previous year (any changes in the criteria applied are noted in the Appendix to the Management Report) and the stated strategic objectives.

Annual Integrated Report