The Years of the Liondecades 1951-2007

56

1951

-196

0

The recovery

erations in the new and dynamic economies

of Latin America and Australia, as well as in the

world’s largest market: the USA, where the New

York Branch was reopened following the ac-

quisition of Buffalo Insurance Company. In the

mid-Fifties, the Generali Group had operations

in some sixty countries on five continents and

was a leading player in key European markets

(France, Spain, Austria and Germany), where it

had been present for several decades. This was

a literally unprecedented territorial expansion.

No doubt, growth was favoured by the positive

international and domestic economic climate.

In most markets, economic recovery was solid,

thanks also to the massive reconstruction un-

derway – especially in those countries where

the war had been most destructive. The Italian

economy, buoyed by the overall positive out-

look, was solidly sustained by exports,

which – thanks to the healthy bal-

TThe recovery

The Milan Head Office is established. In 1947, Generali’s two historic hail and accident subsid-iaries – Anonima Grandine and Anonima Infor-tuni, both of which had been founded at the end of the previous century – were incorporated into the Parent Company. Their organisational struc-tures formed the base of the Milan Head Office, with headquarters in piazza Cordusio, which be-gan operations in 1955.

hanks to reconstruction efforts of the previous

five-year period, Generali entered the Fifties in a

position of regained normality. The picture was

aptly outlined in an annual report published in

that period: “The Company, whose prestige has

remained unscathed in the tumultuous events

of the past years, has been able to extend opera-

tions to new important markets while consoli-

dating its presence in the traditional ones.” With-

out considering the assets lost in eastern Europe,

in a number of former British colonies (India and

Burma) and in China (after the declaration of the

People’s Republic in 1949), the extension of Ge-

nerali’s network abroad was virtually the same

as prior to the world conflict. Simultaneously,

significant steps were being taken to boost op-

A tradition rekindled. Started in the Thirties, the ritual of feeding pigeons in Piazza San Marco was again put into practice in 1953.

571951-1960

ance of payments – became fuel for

growth. In the decade, the volume of

exports grew four times, that of reserves

currencies eight times.

In this scenario, Generali devoted con-

siderable attention to reorganising

its structure in the Italian market by

streamlining management, improving

co-ordination and containing adminis-

trative costs. Within this framework, the

most significant change was the crea-

tion – in 1955 – of the Milan Head Office,

which took over the activities previously

carried out by the two long-established

subsidiaries Anonima Grandine and

1951 - Standard General is acquired in Johannes-burg, South Africa.

1953 - Mario Tripcovich is appointed chairman.

The European Insurance and Reinsurance Fed-eration (CEA – Comité Européen des Assurances) is set up. By grouping the insurance associations of 18 European countries, its aim is to promote harmonisation of sector regulations. CEA’s first chairman is Ranieri Babboni, previously a legal consultant for Generali.

1955 - The Milan Head Office, whose task is to manage operations in the TPL, accident and health lines of business in Italy, is established.

1956 - Camillo Giussani is appointed chairman.

Generali celebrates its 125th anniversary with great pomp.

Generali acquires Vanguard, an insurance com-pany based in Sydney, Australia.

1960 - Gino Baroncini is appointed chairman.

Looking in

Trieste reverts to Italian rule. Following the agreement be-tween the Italian and Yugoslav governments with the London memorandum in 1954, Trieste – where the Company had been estab-lished and its Central Head Office had always been located – returned to Italy after a decade of foreign military rule. Il Bollettino, the Company’s house organ, published Trieste Nostra, a deeply felt celebration of the city’s “second redemption”, thereby ideally joining the 100,000 who wel-comed the Bersaglieri regiment in Piazza dell’Unità d’Italia.

58

1951

-196

0

The recovery

Anonima Infortuni. The task of the new unit,

over the next three decades, was to manage

operations in the TPL, accident and health sec-

tors in Italy.

Among the many events of the decade, two had

a particularly significant impact on the Company

and marked the symbolic end of a tormented

phase and the opening up of new opportuni-

1951 - American endocrinologist Gregory Pincus creates the oral contraceptive pill.

1952 - Elisabeth II is crowned Queen of Britain.

1953 - New Zealander Edmund Hillary and Nepa-lese sherpa Tenzing Norgay conquer Mt Everest.

The warring factions in Korea sign the Panmun-jom armistice, whereby the 38th parallel becomes

the border between North and South Korea.

1954 - The first nuclear submarine, the Nautilus, designed by Admiral Hyman G. Rickover, is launched.

Elvis Presley sings his first chart busters: That’s All Right Mama and Blue Moon of Kentucky.

1956 - The Suez crisis erupts after the Canal is nationalised by Egypt.

The Soviet military intervention in Hungary quashes the reformist movement led by Imre Nagy, who is subsequently executed.

1957 - The dog Laika is the first living creature to be shot into space onboard Sputnik 2.

Feltrinelli publishes Boris Pasternak’s Doctor Zhivago, which had been banned in the Soviet Union for its “slanderous” nature. Pasternak won the Nobel prize in Literature in 1958.

Jack Kerouac publishes On the Road.

1958 - Pelé’s Brazil wins the World Football Cham-pionship in Sweden.

1959 - The rebels led by Fidel Castro and Che Guevara seize power in Cuba.

Volvo patents the three-point safety belt system.

Looking out

The 125th anniversary. In 1956, Ge-nerali celebrated its 125th anniver-sary with two great events: on May 20 in Trieste, and on May 21 in Venice, where the Group’s international gather-ing – with over 8,000 members of staff from 31 countries – took place. In the photos: two mo-ments of the Venice gathering; the ceremony in the courtyard of Palazzo Ducale and the distribution of mementos by workers of the Ca’ Corniani farm dressed in traditional costumes.

591951-1960

ties. On October 26, 1954, Trieste – which hosted

the Central Head Office – reverted to Italian rule

after a decade of foreign occupation. On March

25, 1957, the treaties establishing the European

Economic Community and the European Atomic

Energy Community were signed in Rome. This

was the first step of the process that would ul-

timately lead to the creation of the European

Union and of the single currency. Generali, a Eu-

ropean company by vocation, was ready for the

challenges ahead.

The Polesine flooding. Italy, which was struggling back to normal-ity after the war, was struck in 1951 by a catastrophic flood that sub-merged the entire delta of the Po River, killing 84 and forcing thou-sands to leave their homes. The nation responded generously to the tragedy. The insurance industry – through its association ANIA – donated over 40 million Liras in relief funds. Besides the significant fi-nancial aid, topped up by donations from individual employees, Ge-nerali hosted over 100 children, aged between 6 and 12, from the dis-aster areas in its farm at Ca’ Corniani.

A major export boom. At the beginning of the Fifties, Italy had fully emerged from the postwar recession. The economy, however, was still under-developed, with over 40% of the active population working in agriculture. Thanks to low labour costs and to the gradual opening of foreign markets, the flow of Italian products abroad increased substan-tially. Initially, exports mainly consisted of agricultural produce, but starting from the second half of the decade the nascent Italian indus-try – textile and mechanical – played an increasingly significant role in the international market and paved the way for the major econom-ic boom of the Sixties.

The signing of the treaties of Rome. Representatives of the German, French, Italian, Belgian, Luxembourg and Dutch governments met in Rome on March 25, 1957 and signed the treaties establishing the European Economic Communi-ty and Euratom. It was the building block of the new Euro-pean integration, whose first immediate goal was to create a customs union to encourage the free circulation of goods among member countries.

60

1961

-197

0

The years of the economic miracle

After the destructions caused by the war and the

reconstruction efforts of the Fifties, the outlook

for the new decade was bright with the promise

of more diffused wealth and greater economic

stability.

Italy witnessed the years of the “miracle”. National

income was constantly improving in real terms,

industrial output was booming and the balance of

payments was firmly in the black. However, public

spending both at a central and regional level was

growing out of control. The insurance sector

benefited from the positive economic trend and

particularly the overall increase in wages. Other

positive aspects were the strong development of

trade and exchange between various economic

areas and the spreading of mass motorisation.

In Europe, premium income was growing at an

annual rate of 15%, while the pace was even

faster in some emerging markets, namely Japan,

Australia and Latin America. However, some less

positive factors did exist, such as the imbalance

between supply and demand. The motor third

party liability sector, for example, came under

the spotlight in all markets as a consequence

New headquarters in Milan. In 1961, the Milan Head Office was transferred to Via Tiziano. A truly imposing complex, the

new headquarters spread over 3,800 sqm (the façade was over 200 m long).

On the first floor was the Genera-li logo: the St Mark’s lion in gilded

bronze, measuring three meters at the base and two and half metres in height.

Europ Assistance. Following an initiative by the French sub-sidiary La Concorde, Europ Assistance was established in Paris. The new company, providing assistance to tourists and workers abroad, offered a wide range of innovative servic-es. Over the decades, Europ Assistance has grown to become the world’s leading player in the business, supported by the Generali Group international network in terms of marketing and services.

The years of the economic miracle

611961-1970

Large risks. In the Sixties, growing assets in the industrial and commercial sectors, concen-trated economic interests in calamity prone ar-eas, increasingly large means of transport led to serious difficulties in the handling of risks, with huge sums being paid when claims arose. It was in this period that the first ever space in-surance policies were issued. Generali played a leading role in this sector by designing a spe-cific coverage for the San Mar-co initiative, a space project developed by the Italian aeronautical research centre in Rome together with NASA. In the photo above, the Santa Rita platform, used for the first ever Italian launch in 1964.

of the explosive and disorderly

development of car circulation in a

situation where road networks, the

legal framework and preventive

measures were still inadequate.

It was in these years that the

international insurance market

was beginning to confront the issue of large risks,

due to the increasing size of instruments used

for travel, life and work. These were the years of

the first jumbo jets, supertankers, megastores

Looking out

1961 - Soviet cosmonaut Jury Gagarin is the first man in space.

The Berlin wall is constructed to pre-vent the exodus from East to West Germany.

1962 - Dr. No, the first film starring Sean Connery as secret agent 007, is released.

1963 - US President John F. Kennedy is assassinated in Dallas.

1965 - The Mont Blanc tunnel, which connects Italy and France, is opened.

The Beatles release one of their big-gest hits ever: Yesterday.

1967 - Surgeon Christiaan Barnard performs the first human heart transplant operation.

1968 - Martin Luther King, leader of the move-ment for the emancipation of black people and Nobel peace laureate in 1964, is murdered.

Student revolts break out through-out the world.

Jim Hines is the first man in the world to run 100 meters in less than ten seconds.

1969 - A student from Prague, Jan Palach, dies after setting himself on fire as a protest against Soviet occupation.

62

1961

-197

0

The years of the economic miracle

Moonlanding. On July 16, 1969, Apollo 11 blast-ed off from ramp 39 at Cape Canaveral: destina-tion Moon. On July 21, US mission commander Neil Armstrong was the first man ever to set foot on the Moon, an event which he defined as a “giant leap for mankind”.

Motorisation comes of age. As available income in households grew thanks to the “economic miracle”, Italy witnessed the phenom-enon of mass motorisation: the number of circulating vehicles in-creased from less than two million in 1960 to over ten million in 1970. The rapid diffusion of cars was sustained by the development of an efficient road network: the A1 motorway linked Milan to Na-ples in 1964.

and huge industrial plants. The demand for

increasingly extended coverage was beyond the

means not only of individual insurance companies

but often of the entire international insurance

system. As a result, insurers within the same

market were forced to pool resources to generate

greater underwriting capacity, while agreements

with foreign partners were signed to provide

satisfactory services for international clients. The

Generali Group, which was directly affected by

the changing scenario in view of its international

structure and position, was among the first to

pursue this policy. An important partnership

with Aetna Life & Casualty, the largest multi-

branch insurance group in the USA, was signed

in 1966. A few years earlier, acknowledging the

importance of the British underwriting market

for international risks, Generali had set up the

United Kingdom Branch in London, thereby re-

establishing those relations, which had been

severed in the war years. Generali’s policy aimed

at strengthening its international presence was,

however, affected by the protectionist trends

that were emerging in several developing

The Prague Spring of 1968. The crowd watches helplessly as Warsaw Pact tanks invade Czechoslo-vakia to bring to an end the short-lived democrat-ic re-awakening.

631961-1970

countries. As a matter of fact, numerous banks

and insurance companies were nationalised

in many of the countries where Generali had

heavily invested in postwar years. In particular,

1961 - The Milan Head Office is transferred from Piazza Cordusio to the new building in Via Tiziano.

1963 - Generali re-enters the British market by setting up the United Kingdom Branch in London, operating in direct business as well as reinsurance.

On the initiative of La Concorde, Europ Assistance is set up in France. The organisation will emerge as the world’s biggest operator in the private assistance business.

1964 - Generali makes its debut in space insur-ance by providing the San Marco project with

coverage for the construction and launching of Italian scientific satel-lites.

Generali insures the transporta-tion of the bronze door of St Peter’s Basilica in Rome, made by Italian sculptor Giacomo Manzù.

1966 - Generali signs an important partnership with Aetna Life & Casu-

alty, the largest multi-branch group in the USA.

1968 - Cesare Merzagora is appointed chairman, succeeding Gino Baroncini who is acclaimed hon-orary chairman at the shareholders’ meeting.

1969 - Generali launches a series of initiatives with a view to strengthening its ties with share-holders: a service is set up to assist shareholders in the administration of shares and a newsletter containing details of business trends is published twice a year, disclosing, for the first time, consoli-dated figures.

Looking in

The Generali-Aetna agreement. Above: The two chair-men Olcott D. Smith of Aetna and Gino Baroncini of Ge-nerali sign the agreement setting up important interna-tional co-operation between the two companies at the new Milan headquarters in Via Tiziano.

Cesare Merzagora. In 1968, a public figure was called on to chair the Company. An economist “involved in politics”, as he liked to define himself, Cesare Merzagora gained solid expe-rience in finance and industrial manufacturing and held nu-merous government posts, including the second highest in-stitutional role in Italy – President of the Senate – for three legislatures in a row. In his private life, Merzagora was a fine sculptor as well as talented medal maker and he etched sev-eral influential figures of the 20th century.

following restrictions imposed on foreign

operators, Generali was forced to pull out of

Syria, Egypt, Iraq, Pakistan, Algeria and Congo

and to curtail operations in Latin America.

64

1971

-198

0

Overcoming the crises

At the beginning of the Seventies, the impressive

phase of growth that had lasted for two dec-

ades began to ebb. Economic slowdown and

inflationary pressure went hand in hand with

political and ideological tensions – to which

May 1968 in France had been a prelude – and

widespread union demands on industry. The

entire world system was rocked by a very seri-

ous slump, which initially manifested itself on

the monetary front (with the suspension of the

US Dollar’s gold con-

vertibility standard in

August 1971) and sub-

sequently in the energy

sector (with the explo-

sive increase of prices

decided by oil produc-

ing countries in 1973).

In Italy, this dramatic in-

ternational scenario was worsened by a crisis in

industrial relations, which led to a series of mas-

sive strikes and ultimately to the loss in compet-

itiveness of Italian exports.

The insurance industry

was also directly affected

by the bleak climate. Gal-

loping inflation combined

with recession led to the

so-called stagflation, with

tremendous repercussions

on savings, industrial out-

put and, consequently, pre-

mium income. In turn, the

widespread currency fluc-

tuations that followed the

end of the gold standard

triggered exchange risks.

Another source of major

concern – especially in It-

aly – came from the motor

TPL sector, which had become compulsory in

1971. The “political” pricing policy imposed by

the government regardless of real underwriting

results recorded by insurance companies cre-

ated serious imbalance within the market, caus-

ing many insurers to fold up.

Generali, which could rely on very solid finances

at the beginning of the Seventies, quickly re-

alised the real extent of the crisis and decided

to accelerate its asset strengthening policy

launched in the late Sixties. Thus, a massive in-

vestment plan was implemented in the real es-

tate sector, which ultimately led to a doubling

of Generali’s property in three years. At the

Overcoming the crises

Technology. With a view to boosting efficiency and reducing costs, in 1971 Generali set up a new EDP centre, which was equipped with state-of-the-art technology.

Real estate investments. Between the end of the Sixties and the beginning of the Sev-enties, a major investment campaign was launched in the real estate sector. Generali’s urban real estate assets were doubled over a period of three years. Particularly remark-able is the building designed by Brazilian architect Oscar Niemeyer in Segrate, near Mi-lan, that would become the headquarters of the Italian publishing giant Mondadori.

651971-1980

Looking out

same time, organisational structures and servic-

es were restructured and rationalised to improve

profitability and contain costs. From 1971, Gene-

rali’s accounting and administrative operations

were concentrated in the Company’s hi-tech

data processing unit

in Mestre. A new,

single marketing de-

partment was set up

midway through the

decade for branches

supervised by the

Veneto and Milan

Head Offices, in a bid

to streamline and en-

hance the Company’s

sales strategy and net-

work. In-depth reno-

vation also involved

the corporate image:

the aim was to stand-

ardise the Company’s

presence in all mar-

kets around the short-

ened name “Generali”

– easily pronounced in

all languages – combining it with a more mod-

ern graphic representation of the winged lion.

The new trademark was launched in 1971 and

sustained by a massive communication cam-

paign based on the slogan “from now on, call

us Generali”. In line with the objectives set,

the Parent Company’s trademark

and logo were also adopted

The motor TPL conundrum. In Italy, as a consequence of the high number of road accident victims – 10,000 deaths and 250,000 injuries every year – following the dizzying growth in the number of circulating cars, law-makers made third party liability insurance compulsory. The law was officially enforced on June 12, 1971. Rightly hailed as a social conquest, and backed by insurers since the Fifties, motor TPL almost led to the collapse of the in-surance industry due to the pricing policy imposed by the government.

The great crises. In 1971, the suspension of the convertibility of the US Dollar into gold marked the end of a system of fixed exchange rates that had been in force for thirty years. This led to a period of great uncertainty in international trade. Two years lat-er the oil crisis, triggered by the OPEC’s decision to increase prices, accelerated the inflationary trend that was already undermining economies in industrialised countries and worsened recession.

1972 - During the Olympic Games in Munich, swimmer Mark Spitz wins seven gold medals; a Palestinian attack against the Israeli team casts a dark gloom over the games.

The computerized axial tomog-raphy (CAT) is used for the first time.

1973 - Following the signing of a peace agreement, the Unit-ed States withdraws its troops from Vietnam.

The Gulag Archipelago by Ale-ksandr Solzhenitsyn (Nobel prize in Literature in 1970) is published: the book is a heart-rending in-dictment against the horrors of Soviet lagers.

1976 - Apple creates the first personal computer.

1977 - The meteorological satellite Meteosat is launched into orbit.

The film Star Wars opens the famous motion pic-ture saga.

1979 - After the flight into exile of Shah Reza Pahl-avi, Ayatollah Khomeini rises to power in Iran, where an Islamic republic is subsequently declared.

The first elections for the European Parliament take place; the European Monetary System, joined by EEC member states with the exception of Great Britain, is created.

1980 - The Polish inde-pendent workers’ union Solidarność is established.

Bill Gates launches the MS-DOS system.

66 Overcoming the crises

by the new companies established over the fol-

lowing years as part of the restructuring process

in France, Belgium, Brazil and Austria.

For the first time, a Group trademark was also

introduced. The decision was dictated by the

increasing need to co-ordinate and support

companies in various markets, with a view to

harmonising strategies while maintaining each

company’s operative autonomy. It was with this

in mind that consulting and technical assistance

provided to Group companies were strength-

ened – especially with regard to

special risks, reinsurance and in

the asset and real estate manage-

ment sector. At the same time,

centralised structures were set up

to deal with new and highly

sophisticated risks, such as

those relating to satellites

or involving multi-national

companies. As to the lat-

ter sector, a number of

partnerships with promi-

nent insurance groups – such as Mitsui, Taisho

and Tokio from Japan and General Accident

from Britain – integrated the agreement signed

in the Sixties with the US Aetna group and

proved particularly profitable. In the Seventies,

Generali’s increasingly

strategic focus on

the market found

expression in a se-

ries of initiatives, mainly

for the benefit of share-

holders and of the public

at large, aimed at provid-

Industry and insurance. Being aware of the neces-

sity to establish a dialogue with counterparts to work out

solutions to common issues, Genera-li and Confindustria – the Confederation of

Italian Industry – promoted a roundtable to be held on a biennial basis. The “Insurance and Industry” talks became a traditional appointment, taking place at Villa Manin, the residence of Venice’s last Doge.

Space risks. To fos-ter the exchange of ideas with clients, Gene-rali promoted an interna-tional forum in 1979 to dis-cuss the issues connected to the commercial and in-dustrial utilisation of space, which soon emerged as a crucial fixture in the agen-da of space operators and experts.

The Financial Statements Award. Generali received this award in 1970 from the insti-tute for public relations.

A new corporate image. The reno-vation of the Company’s organisa-tional structures was reflected in the creation of a new, more dynam-ic corporate image: the lion underwent a restyling, while the logo was re-designed and shortened to “Generali”. In the photo, managing direc-tor Fabio Padoa presents the new trademark.

1971

-198

0

671971-1980

ing complete information on Group activities.

Particularly significant was the publication of

a consolidated Group statement – considered

to be the most suitable tool to provide an ex-

haustive picture of Generali’s complex web

of interests – and a half-yearly report by the

chairman. These initiatives were extremely in-

novative at that time and obtained important

acknowledgments, such as the Tagliacedole

d’Oro and the Oscar di Bilancio (Financial State-

ments Award), awarded to an insurance com-

pany for the first time.

1971 - A new trademark is launched with the shortened name “Generali”.

Within the framework of a major organisational overhaul, a new EDP centre is set up in Mestre.

1972 - Generali and Aetna establish the Genera-li European Marketing Office (GEMO) in Brussels. After its transfer to London, the unit changes its name to Generali-Aetna European Marketing Office (GAEMO) in 1977.

After nearly 30 years, the Company Articles of Association are amended. Rules governing the AGM are also introduced.

1974 - Genagricola is established. Starting in 1980, it will take over all the Group’s agricultural companies.

1975 - Following the setting up of a single marketing department for the Milan and Veneto Head Offices, Generali is the first company in Italy to adopt an underwriting planning and control system.

1978 - The first conference promoted by Genera-li and Confindustria – the Confederation of Ital-ian Industry – is held at Villa Manin, near Venice. The aim of the biennial conference is to discuss common issues.

1979 - Enrico Randone is appointed chairman, succeeding Cesare Merzagora who is acclaimed honorary chairman at the shareholders’ meeting.

The Middle East Office Branch is established. Based in Dubai, its op-erations mainly focus on reinsurance and on providing support to middle eastern multi-national clients.

Looking in

John Paul II. Following the sud-den death (after a pontificate last-ing only 33 days) of Albino Luciani,

Pope John Paul I, the Archbish-op of Krakow Karol Wojtyla be-

came the new Pontiff.

The earthquake in Friuli. On May 6, 1976, a devastating earthquake rocked the Friuli region in the North East of Italy, killing 1,000 and leaving 100,000 homeless. Generali, too, was affected by the disaster: two agency employees died, the agency of Gemona was completely destroyed, the offices in Spilimbergo, San Daniele and Tolmezzo were severely damaged, while numerous other buildings were also hit.

68

1851The first investment. With a view to

diversifying assets set aside to back re-

serves, Assicurazioni Generali decides

to invest in agriculture: the first acqui-

sition is a 1,770-hectare plot in a marshy area

of the Veneto region. Following a massive land

reclamation drive – culminating in 1879 with

the installation of huge water pumping plants –

Generali establishes the Ca’ Corniani farm.

1933New acquisitions. In the years between the two

world wars, Italy invests heavily in agriculture

thanks to the law enforced in 1928 to encourage

reclamation of marshes and agricultural lands

in general. The Company thus further pursues

investments in agriculture by purchasing farms

in Emilia and in Tuscany, including the 2,300-

hectare Portonovo farm.

1950The land reform. Following the land reform, Ge-

nerali’s agricultural estate – which was enlarged

after the war with acquisitions in the country-

side around Rome and in Emilia – is halved: an

entire 1,700-hectare farm is expropriated, while

a further 2,000 hectares are handed over to

the “Fund for the establishment of small agri-

cultural properties” and to individual farmers.

Further investments are carried out in the Six-

ties, mainly to restructure and consolidate ex-

isting property and to enhance specialisation.

Generali launches a “protein plan” to develop

the zootechnical sector and intensifies farm

processing initiatives.

The farming strategy

The farming strategy

1974Establishment of Genagricola. The need to op-

timise the management of such a wide range of

agricultural activities leads to the establishment

of a specialist company: Genagricola. The new

company begins operations with the acquisi-

tion of Poggiobello farm in eastern Friuli and

the San Martino farm in Lazio. Five other

farms were acquired between 1976

and 1978, giving a total area of

1,100 hectares.

1980The concentration of ac-

tivities. In 1980, shareholders

approve the decision to transfer

all the Parent Company’s farmlands

to Genagricola, whose share capital is in-

creased from 15 to 90 and, subsequently, to 123

billion Liras. In the Eighties, Genagricola widens

the range of its activities by acquiring not only

new property but also firms specialising in the

production and sale of seeds, fungicides, insecti-

cides and powder serums.

1992Diversification and specialisation. With a view

to further diversifying activities, Genagricola

enters the rice farming and foresta-

tion sectors, with the acquisition of two

woods in the Carnia region and a rice farm

near Pavia. In 1992, Generali takes over the

Sant’Anna estate, a producer of fine wines in the

Veneto region. Some years later, Genagricola will

transfer its headquarters to Sant’Anna.

2004New horizons. Genagricola expands to Roma-

nia with the acquisition of 3,000 hectares of

grain fields and 300 hectares of vineyards, in the

Timisoara region.

Genagricola chairman Giuseppe Perissinotto points out the area in Romania, where the fields acquired in 2004 are located.

70

1981

-199

0

Towards new horizons

I n December 1981, Generali turned 150. The

event was solemnly celebrated in June of the fol-

lowing year at the AGM for the approval of the

150th report. On that occasion, the meeting took

place at the Verdi theatre, Trieste’s opera-house.

After one and a half centuries, Generali’s posi-

tion was as strong as ever. It was leader in the

domestic market, controlled a Group compris-

ing 35 insurance and 67 real estate and financial

companies and was among the biggest players

in Europe. Generali’s accounts recorded an un-

broken spell of good results, while its assets were

extremely solid. The Generali share was the blue

chip in the Italian stock exchange, also thanks to

a 46.5% appreciation in 1981.

The overall economic picture, however,

was not a very favourable one: infla-

tion, which had exploded

in the mid-Seventies,

recorded another upsurge early in the Eighties,

hitting an all-time high in Italy of 21.1%. To make

matters worse, tight mon-

etary policies adopted by

central banks in the main

industrialised countries

– above all the US – seriously

slowed down the economy,

triggering a recessive climate

and growing unemployment.

Insurers, too, had to face a

string of problems: in the life

sector, new business had prac-

tically ground to a halt as a

Towards new horizons

A century and a half. The pictures highlight moments of the celebrations marking the Company’s 150th anniversary, which

were held in Trieste in 1982. From top to bottom: the special post-age stamp issued for the occasion; the commemorative postcard depicting the storm that struck Trieste on December 26, 1831, the day when the Company was founded; the medal etched by Emilio Greco and minted for the occasion; the San Giusto castle decorat-ed with the Generali trademark for the gala evening; the AGM held at the Verdi theatre.

711981-1990

consequence of the enormous gap between the

“technical rates” awarded to policyholders and

the current interest rates on savings. In non-life

business, inflation bloated claims and premium

income was affected by the competitive pres-

sure arising from the so-called cash-flow under-

writing: a practice aimed at achieving maximum

cash flow, even at the cost of charging non-

technical premium rates,

so as to take advantage

of the high interest rates

applied in the financial

market. Thanks to its vast

international experience,

Generali radically reno-

vated its life business in

Italy by launching GESAV,

a highly innovative policy

ensuring excellent profit-

sharing. The success of

the new policy was

spectacular:

1982 - Generali’s 150th anniversary is solemnly celebrated with a series of official events.

1984 - “Generali: an open book” is the first advertising campaign launched on the mass media.

1986 - Generali, in co-operation with Taisho, opens its first branch in Japan.

1988 - Generali obtains the San Giusto d’oro, a prize awarded to persons or organisations that honour the name of Trieste in the world.

1989 - The new Mogliano Head Office becomes operative.

Following the establishment of AB-Generali Budapest, Generali is the first insurer to start

a joint venture in an eastern European coun-try that is still under a communist regime.

Generali obtains the Premio Torta, a prize for the restoration of the Squero Vecio in Venice, an old ship-yard depicted in a painting by Canaletto and currently the headquarters of Gene-rali’s nautical club.

1990 - The Registered Office is brought back to Trieste.

Looking in

in the course

of the decade,

individual life

premium income

grew at an aver-

age annual rate

of 28%. Moreo-

ver, in 1982 Generali de-

signed the first policy in

ECUs (European Currency

Units) and the following

year it established Gener-

Comit mutual funds, in

collaboration with Banca

Commerciale Italiana. In non-life business, the

Company further pursued its strategy aimed at

curbing the claims-to-premiums ratio – which

continued to be a source of underwriting losses –

and at designing innovative products to encour-

age new business.

Though absorbed in dealing with current prob-

lems, Generali did not neglect to look ahead and

to create the base for future development, espe-

Antarctic mission. In 1988, Generali in-sured the Italian expedition to the Antarc-tic. The initiative confirmed Generali’s com-mitment to scientific research, which had started sixty years earlier with the Nobile polar mission in 1928.

Restorations. As part of the long-running initiative aimed at safeguarding its real estate property, Genera-li restored the historic San Marco café in Trieste, which had been the favourite haunt of Italian patriots during the Great War.

Italy’s ambassadors. In 1988 Generali’s gondolas – caretakers of an ancient tradition – took part, as Italy’s official representatives, in the opening ceremony of the first New York International Art Festival.

72

1981

-199

0

Towards new horizons

cially in the Italian market. As early

as 1981, the Company had finalised

the acquisition in Mogliano Veneto

– between Venice and Treviso – of

a vast plot of land for the construction of more

modern headquarters, best suited for meeting

future challenges. Half-way through the decade,

Generali launched a vast technological upgrad-

ing project, with the installation in its offices of

thousands of computerised working stations

and the creation of a network linking all its

agencies. On the other hand, Generali’s expan-

sion policy abroad in the early Eighties remained

very cautious and only highly selective acquisi-

tions were carried out.

However, the international scenario was rapidly

changing: in the wake of the US, world economy

was gradually moving out of recession, accom-

panied by the good performance of internation-

al stock markets. Inflation, too, was beginning to

slow down, following the stabilisation of raw ma-

terial prices. However, it was on the political side

that the signs of the changing times were more

evident. The rise to power in the Soviet Union of

The Head Office for Italianoperations. Opened in 1989, the new Mogliano Veneto complex – on the mainland near Venice – houses the departments super-vising operations in Italy, a task originally managed separately by the Milan and Veneto Head Offices. The futuristic complex, which spreads over an area of 34 hectares and includes 55,000 sqm of office space, is the venue of the new IT unit, the Group School, the underwriting, administrative and marketing departments, as well as the centralised archives and warehouses.

731981-1990

Mikhail Gorbachev in 1985

and the implementation of

the perestroika – a sweeping

reform policy – triggered an

unstoppable process culmi-

nating in two great symbolic

events: the fall of the Berlin

wall and the Tienanmen up-

rising in Beijing, both in 1989.

These were the first warning

signs of a process that – over

the following decade – would

lead to globalisation, in which economic, po-

litical and social events would have a planetary

impact, thanks also to the new information

technology, capable of cancelling both time and

space distances.

Generali’s actions were in line with the chang-

ing times, and the Company was in a position

to seize opportunities and rise to challenges as

they emerged. A clear indication that times were

indeed changing was the decision to purchase

a significant stake in a Hungarian company: the

operation marked Generali’s return to eastern

Europe, from which

it had been expelled

over forty years ear-

lier. That was just the

first step towards new challenges. Facing a glo-

bal market requires adequate size, a widespread

international presence, ability to achieve syner-

gies as well as expertise and advanced technolo-

gy. These facts were well known in the corporate

world, which had often been characterised by

Looking out

The wall comes down. In November 1989, the wall that had divided Berliners for thirty years came crashing down as the citizens of the East took to the streets. The fall of the symbol that stood for the di-vision between two opposing visions of the world heralded the advent of globalisation – a new era in which events and ideas have planetary implications and repercussions.

World Cup glory. In 1982, the Italian football team, coached by Enzo Bearzot, won the World Cup in Spain: it was Italy’s third title. On the right, the commem-orative stamp.

Tienanmen Square, Beijing. On April 17, 1989, thou-sands of Chinese students demanded democratic re-forms by occupying the capital’s largest square. The dem-onstration was crushed by the army in June, bringing the movement to an abrupt and bloody end.

1981 - The first flight of the Space Shuttle pro-gram blasts off from Cape Canaveral.

1982 - Philips and Sony launch the compact disc on the Japanese market.

1983 - The marketing of Swatch watches starts.

1986 - During the 27th Congress of the Com-munist Party of the Soviet Union in Moscow, Mikhail Gorbachev announces the beginning of perestroika.

Reactor unit 4 of the Chernobyl nuclear power station in Ukraine explodes, causing a major nuclear disaster.

Reinhold Messner is the first man in the world to climb all fourteen peaks in the Himalaya exceed-ing a height of 8,000 metres.

1987 - Intifada, the Palestinian uprising against Israeli occupation, starts.

1989 - The American tanker Exxon Valdez spills 35,000 tons of oil in the sea in Alaska.

1990 - Iraqi troops invade Kuwait.

74

1981

-199

0

Towards new horizons

disorder-

ly merger and

acquisition campaigns. Against

this highly competitive background, Generali

was successful in finalising its projects: in 1989, it

inaugurated the first section of the Head Office

for Italian Operations in Mogliano Veneto, near

Venice, which housed the new IT centre – the

technological heart of the Company – and the

Group School for the professional training and

upgrading of its employees, with a view to forg-

Back to the East. In 1989, Generali became the first insurer from the West to initiate a joint venture in an eastern European country that still had a communist government. Above: chairman Enrico Randone, Generali CEO in Austria Dietrich Karner and the head of the Hungarian state insurer Alla-mi Biztositó join hands to mark the setting up of AB-Generali Budapest.

Generali in space. As evidence of the Company’s leading role in the complex space insurance sector, the Generali trademark was reproduced on a launch-er that orbited the Soviet spacecraft Soyuz from the Bajkonur space centre.

Growth of average life expectancy in Italy from 1890 to 1990Growth of average life expectancy in Italy from 1890 to 1990■ Female ■

Male Life expectation increases. One of the most visible consequences of in-

creased wealth in the last centu-ry has been longer life expectan-cy. In the last decades of the mil-lennium, longer life has seriously affected the stability of state pen-

sion systems and boosted demand for additional insurance-oriented

private pension schemes.

ing a common corporate identity.

At the same time, the Company

was taking steps to strengthen its

international presence with the ac-

quisition of new companies and the

opening of branches in numerous

markets such as Japan, Switzerland,

Belgium, Germany, Great Britain and

the United States. The largest operation, howev-

er, was the take-over bid for Compagnie du Midi

in France launched in late 1987. Though the bid

was unsuccessful, the operation marked a turn-

ing point in Generali’s international expansion

strategy, paving the way for the important acqui-

sitions of the Nineties.

75

The Company’s share capital growth

The Company’s share capital growth

1831Generali is founded with a share capital of 2 million Florins, divided in 2,000 shares of 1,000 Florins each.

1857Generali shares are listed for the first time

on the Trieste Stock Exchange (right).

1906The company capital is

converted into Crowns.

1919Generali becomes Italian. Its share capital,

now expressed in Liras, amounts to 13.2 million.

1939On the eve of World War II,

following two rights issues and a split operation, the capital rises to 120 million Liras; the face

value of each share is 200 Liras.

1947-49Following the postwar monetary devaluation, the company capital is increased initially from 1.2 billion and successively to 4 billion Liras through three operations.

1969Starting 1951, seven bonus issue operations bring up company capital to 16 billion Liras.

1970-75With three operations, including rights and bonus issues, the company capitalincreases to 41.1 billion Liras.

1987In ten years, eight bonus issue operations raise the company capital to 420 billion Liras.

1988-2000In order to finance the large expansion of the Nineties, the company capital

is brought up to 2,506 billion Liras.

2001The company capital is converted into Euros.

2008On July 21, 2008, Assicurazioni Generali’s share capital amounts to 1,410,029,542 Euros.

76

1991

-200

0

A leading player in the global market

T he drive towards globalisation was growing.

Barriers were falling not only in geopolitics but

also on a business level. As competitive pressure

increased, many operators were setting their

sights away from their traditional core activi-

ties, making inroads into related business. The

aim was to provide clients with an ever wider

range of services, in order to meet their increas-

ingly complex demands and thus to lure them

away from competitors. In this context, insur-

ance was gradually expanding into the area of

financial services, on which a growing number

of savers were relying for their changing needs.

Among these, was the demand for additional

pension coverage that had been stimulated

by the crisis of state funded pension systems.

In Italy, this situation boosted the life insurance

sector, which passed from 25% to 60% of over-

all premium income in just a decade. Quite nat-

urally, the boom attracted a significant number

of big banking and financial groups.

As an answer to these changes, which were

taking place in all major markets, Generali re-

sponded by signing business co-operation

agreements with prominent banking groups

and by designing innovative life products (in-

The European Union. On February 7, 1992, the ministers of the twelve countries that made up the EEC signed the Maastricht treaty, defining the process for the establish-ment of the European Union.

Generali without frontiers. In 1990, the Company‘s growing international presence was highlighted by the launch of an innovative advertising campaign in the main countries of operation that hinged around the catch phrase “Generali: the insurer without frontiers”. Generali’s example – it was the first insurance group to present itself with a unique message worldwide and a strong corporate identity – would soon be imitated by competitors.

A leading player in the global market

771991-2000

dex- and unit-linked policies) with a high finan-

cial performance. The Company’s most signifi-

cant strategic move, however, was the decision

to widen its sphere of interests outside the

exclusive field of insurance, transforming itself

into a global provider of financial services to

savers. Generali’s repositioning in the market

started in the mid-Nineties, with the acquisi-

tion of Prime – a prominent mutual fund man-

Italy’s first astronaut. Au-gust 1992: Franco Malerba, on his return from the space mis-sion aboard the Atlantis shut-tle, embraces his son Michele. It-aly’s first ever astronaut, Maler-ba subscribed an insurance pol-icy with Generali: a further evi-dence of the Company’s involve-ment with the space business.

Looking in

La Fenice. For the second time in 160 years, Ge-nerali paid for the damages caused by fire at the famous La Fenice theatre in Venice: the first time in 1836 and the second in January 1996.

1991 - Eugenio Coppola di Canzano is appointed chairman, succeeding Enrico Randone who is acclaimed honorary chairman at the sharehold-ers’ meeting.

1993 - Generali is back in Romania.

1994 - Genertel is established: the Generali Group is the first in Italy to launch a tel-ephone selling insurance company.

1995 - Antoine Bernheim is appointed chairman.

1997 - Generali acquires the Migdal group, Israel’s largest insurer.

Following an agreement with Allianz and AGF, Generali takes over the German group AMB and

three French companies, thereby signifi-cantly increasing its market share in the

two countries.

Cigar, a thoroughbred horse winner of 19 races, including the prestigious Breeders’ Cup, becomes Generali’s property following the payment of 25 million US Dollars as a compensation for infertility damages.

78

1991

-200

0

A leading player in the global market

ager – and subsequently of BSI - Banca della

Svizzera Italiana, a private bank based in Luga-

no, Switzerland. Moreover, Banca Generali was

established in 1998 with the task of providing

Generali Group clients with competitive and

innovative banking services and drawing on a

hi-tech platform.

This initiative was further proof of Generali’s

focus on technology, already witnessed by the

establishment in 1994 of Genertel, Italy’s first

telephone selling insurer and top direct opera-

tor. Generali was just as quick in perceiving

the importance of the Internet: again, it was

among the first insurance companies to cre-

ate a website. The Internet, however, is not

only a window for products or an informa-

tion tool: to enhance the possibilities of-

fered by e-commerce, at the

end of the decade Generali

launched a twofold project

designed to transform Gener-

tel into a portal for the online

sale of insurance and financial

products, and to enhance the services

offered by Banca Generali.

This innovation process was accom-

panied by a clear-cut strategy of ex-

pansion abroad. The deregulation of

markets offered new medium-term

growth prospects and provided welcome

openings, offsetting the market saturation lev-

els recorded in industrialised countries. Gene-

rali seized the opportunity by reconstructing its

business base in eastern Europe. Following its

comeback in Hungary (1989), new companies

were gradually set up in Romania (where the

100th anniversary of the foundation of Genera-

li’s first subsidiary was celebrated in 1997), the

Innovation. Thanks to the rapid development of IT in the second half of the Nineties, the Generali Group launched an extensive programme to boost the sale of insurance and banking products as well as finan-cial services by telephone and over the Internet.

791991-2000

Czech Republic, Slovakia,

Slovenia and Poland. Gene-

rali also focused its attention on the Far East, starting

with China. By setting up a representative office in

Beijing in 1996, Generali met the first requirement in

the process leading to full operating license, which

it obtained four years later. At the same time, signifi-

cant partnerships were signed with local companies

in the area. One of these led to the setting up of two

insurance companies in the Philippines.

The establishment of new bases in emerging

Looking out

The last wars of the 20th century. The Nineties were characterised by serious international tension and by the explosion of numerous conflicts. In the photos: oil fields aflame in Kuwait during the Gulf war (1991) and international troops on patrol duties in the Balkans.

In space. The first module of the International Space Station – a joint project in-volving 16 countries – was launched in 1998.

1991 - The declarations of independence by Slovenia and Croatia bring about the begin-ning of war in Yugoslavia.

After the failed coup against Gorbachev, the Soviet Union, under the pressure of president Boris Yeltsin, is dissolved.

1993 - With the Velvet revolution, Czechoslova-kia splits into the Czech and Slovak Republics.

With the release of the first browser (Mosaic), the Internet comes of age.

1994 - Nelson Mandela (Nobel peace prize in 1993) is South Africa’s first black president.

The tunnel under the English Chan-nel is opened.

1997 - Hong Kong reverts to Chi-nese rule.

British author J.K. Rowling publishes Harry Potter and the Philosopher’s Stone.

1999 - After the crisis in Kosovo, NATO troops bomb Serbia.

2000 - Pope John Paul II opens the Great Jubi-lee to mark the 2000th anniversary of the advent of Christ.

After 21 years, Ferrari wins the Formula One World Champion-ship with Michael Schumacher.

80

1991

-200

0

A leading player in the global market

countries, however, was but one of Generali’s

guidelines: as a matter of fact, the Company’s

acquisition policy in selected markets aimed

at enhancing the Group’s position among in-

dustry top players. A number of operations

over the second half of the decade led to the

transformation of the Group’s structure: with

the acquisition of AMB, Generali became one

of Germany’s top three insurance groups and

also raised its ranking in France. The success-

ful takeover bid for INA not only consolidated

Generali’s position as top insurer in the Italian

market, but turned it into Europe’s largest life

insurance provider. In this period, Generali also

became market leader in Israel and Argentina

with the acquisitions of Migdal and Caja.

Though the operations carried out over the

decade allowed Generali to increase its consoli-

dated premium income by six times and to rank

third in Europe’s insurance industry, growth in

size alone was not enough to ensure true com-

petitiveness. It was necessary to integrate the

numerous entities that made up the Group, to

enhance business focus, streamline operations

and generate synergies. It was with this in mind

that Generali launched a major organisational

restructuring programme in major countries of

operation, starting with France, Austria, Ger-

many and Switzerland. In Italy, a wide-ranging

business integration plan between Generali

and INA was launched. The project involved the

unification of the two companies’ insurance

activities into two poles – life and non-life –

and closer co-ordination of the sales networks,

dealing with the Group’s entire range of insur-

ance, banking and financial products. The vast

reorganisation, which led to the merger of

companies, the sale of non-strategic entities

and the re-allocation of insurance portfolios

The insurance policies of Holocaust victims. Thou-sands of requests from the heirs of Holocaust victims who had subscribed life insurance policies were received by in-surance companies that operated in central and eastern Europe at the time. Though Generali had no legal obliga-tions – its entire activity in those countries having been nationalised immediately after the end of World War II – it allocated 100 million US Dollars following the decision of an international commission set up to solve the pain-ful controversy, thus showing great understanding for the suffering of the victims. In the photo: a Company delega-tion, headed by Gianfranco Gutty, visited in 1997 the Yad Vashem Holocaust museum in Jerusalem. On that occa-sion, the delegation handed a complete list of all Genera-li policyholders in the period between the two wars to mu-seum authorities, providing historians with a precious tool in their effort to reconstruct the victims’ lives.

The new bases in the East. Following its comeback in Hungary in 1989, Generali suc-cessfully recreated its network in eastern Eu-rope. In the photo, the Generali Pojišt’ovna headquarters in Prague.

81

and functions, was accompanied by a stronger

focus on corporate identity, with an extensive

use of the Generali name among Group com-

panies to replace old names. Over the decade,

this process involved over thirty insurance

subsidiaries as well as numerous holding and

service companies.

1998 - Generali acquires BSI - Banca della Svizzera Italiana, while Banca Generali, whose activity is based on innovative telecommunication technol-ogy, begins operations.

The Generali Global project becomes operative: a network of regional co-

ordination and marketing units (located in Europe, America and Asia) providing services to the Group’s multi-national clients.

1999 - Following the acquisition of a control-ling stake in Caja de Ahorro y Seguro, the Group becomes market leader in Argentina.

Generali signs an agreement with Commerz-bank, which becomes the Group’s main banking partner in Germany.

Alfonso Desiata is appointed chairman.

2000 - In February, Generali ‘s takeover bid for INA (launched in September 1999) is finally accepted. Following the acquisition, Italy is once again Generali’s main market of operations.

Looking in

The INA acquisition. With the acquisition of INA, Generali not only strengthened its leading role in Italy, but also emerged as Europe’s top life insurer. The operation was the launching pad for a major restructuring of Group operations in Italy: the new business model was based on the co-existence of a number of operative units having autonomous trademarks and business policies but sharing com-mon service centres.

Private banking. With the acquisition of BSI - Banca della Svizzera Italiana in 1998, the Generali Group strengthened its position in the asset management sector and confirmed its role as a global operator in the insurance and financial services.

Generali in China. Following a series of talks with Chinese au-thorities – in the photo, the meeting in Beijing between Prime Min-ister Zhu Rongji and managing director Fabio Cerchiai – in June 2000 Generali was given the green light to operate in the country.

1991-2000

82

OCommunity and environment

Community and environment

ver the years, the Group has undertaken a

plentiful array of initiatives in favour of the

local communities in which it operates. Its

initiatives support scientific and medical re-

search, cultural, artistic and sporting events

and training projects. Other efforts are aimed

to help the suffering, to foster education and

training programmes, to raise social aware-

ness and to protect the environment. Par-

ticular attention is paid to children and the

youth, the future of our society. Hereafter

are some of the activities supported by the

Group in social and environmental matters.

Operation breakthrough. Generali USA Life Re sup-ports the American organ-isation United Way, that takes care of over 600 poor children, helping them devel-op to their fullest potential in a safe, loving and education-al environment.

Supporting the poor. Generali do Brasil supports the poor children of Casa do Menor São Miguel Arcanjo, an organisation that operates in the communities of Rio de Janeiro and Fortaleza, rescuing children from the street and teenagers at risk, promoting social and professional education. The Children’s Festivals. CEO Giovanni Perissinotto hands out

the charity funds raised by Generali employees on the occasion of the Children’s Festival to three welfare foundations selected by the employees themselves.

Klinik-clowns. In Austria and Slovenia, the Group sponsored the volunteering foundations of clown doctors who visit, enter-tain and cheer up sick children in hospitals. Educational help to bedridden students. The Israe-

li company Migdal sponsors the Tlalim project, offer-ing free learning support to pupils that are absent from school due to illness or accident.

Sichuan earthquake. Fol-lowing the disastrous Sichuan earthquake in 2008, Gene-rali China promptly organ-ised charity initiatives as well as individual donations from members of staff nationwide, contributing € 130,000. Environmental protection. The Group in France fosters a number of initiatives aimed at developing social awareness of environmental matters, al-so thanks to testimonials like Zinédine Zidane and other well-known personalities.

Apples and lemons to drivers. On the oc-casion of the annual road safety educational campaign sponsored by the Group in Hunga-ry and in the Slovak Republic, children award good drivers with an apple and punish reck-less rule-breakers with a lemon.

SOS turtles. In Italy, Europ Assistance ad-hered to “Tartanet”, the initiative to safe-guard the loggerhead sea turtle (also known as Caretta Caretta): a 24 hour toll-free number has been activated to report sightings of stranded or injured turtles.

Green Power Hike. Since 2002, Generali Hong Kong Branch has successfully taken part in the Green Power Hike, the race along the Hong Kong Trail, aimed at raising donations to support green education in local schools.

The “SuperC” Project. The building of a new students’ service cen-tre at RWTH Aachen University – called “SuperC”, as it looks like a gi-ant “C” – was partially financed by AMB Generali through the funds allocated since 1825 for scientific and social projects.

84 Scenarios for the third millennium

At this point, history merges with current affairs.

At the beginning of the third millennium and

following its expansion in key markets at the

end of the Nineties, Generali is now in the proc-

ess of reorganising its Group structure with a

view to improving efficiency. The initiatives un-

der way are aimed at creating an organisational

model hinging on a number of market-oriented

“product factories” and sales networks, sup-

ported by common back-office units supplying

administration, IT, claim settlement and asset

management services, all within the framework

of a unitary strategy and control.

As to business strategy, Generali’s underwrit-

ing policy focuses on the development of the

life branch – which accounts for over 70% of the

Group’s overall turnover – and of the retail side

of the non-life sector. This policy – which is ac-

companied, in the corporate sector, by selec-

tive underwriting in specific segments, name-

ly multi-national risks and employee benefits –

goes hand in hand with an increased involve-

ment in the area of financial services, where the

Group aims to provide comprehensive respons-

es to the needs of savers. This process of inte-

gration also includes distribution, where both

Ongoing improvement. With a view to enhancing the over-all efficiency of the Group, Generali

has provided its operative units – “prod-uct factories” and sales networks – with a

number of common service structures in the areas of administration, IT, real estate, asset

management and claim settlement.

Scenarios for the third millennium

85

the traditional sales network – based on agents –

and innovative channels – based on telecommu-

nications technology – are in a position to deliv-

er the entire range of Generali Group services.

The new millennium has brought about a se-

ries of challenges, possibly the toughest in Ge-

nerali’s long history. At world level, the gener-

al downturn and the fall of the stock markets

have swept away the illusions of those who had

hoped for a period of

relentless growth and

easy profits. At the

same time, the process

leading to the closer

integration of econo-

mies, cultures and soci-

eties has triggered ten-

sions and protests both

inside and outside in-

dustrialised countries.

In a society already un-

settled by doubts and

fears, the attacks on

America of Septem-

ber 11, 2001, have pro-

Looking out

2001 - Wikipedia, the biggest multi-lingual free-content online encyclopaedia is launched by Jimmy Wales and Larry Sanger.

The film The Fellowship of the Ring, based on the trilogy The Lord of the Rings by J.R.R. Tolkien, is released.

2002 - The single currency is introduced in 12 countries of the European Union.

2003 - The USA accuses Saddam Hussein’s government of possess-ing weapons of mass destruction and attacks Iraq.

2004 - Ten new countries enter the European Union: Cyprus, the Czech Republic, Estonia, Latvia, Lithuania, Malta, Poland, the Slovak Republic, Slovenia and Hungary.

The tsunami that strikes the Indian Ocean area on December 26 causes over 200,000 dead and bil-lions in damage.

2006 - After the “mad cow” disease in 2001, a new collective psychosis is caused by the “bird flu”.

The challenges of the new millennium. The process leading to the integration of dif-ferent economies, cultures and societies is prov-ing extremely difficult. In this background of un-certainty, the terrorist attacks of September 11, 2001, and the following attack on the interna-tional coalition in Afghanistan provoked an unprecedented crisis.

86 Scenarios for the third millennium

voked an ever deeper sense of anguish and un-

certainty.

Economic and geopolitical instability has had in-

evitable repercussions on the insurance system,

which is facing exceptional challenges, includ-

ing new risk exposure on a global scale, the in-

creasing importance of company size, the de-

lay of pension reforms, the restrictions set by

the law and technological innovation. The ac-

tion taken so far by the Generali Group are part

of a strategy aimed at achieving growth, under-

writing balance, profitability and asset strength-

ening, through the diversification of both the in-

The strategic plan. In January 2003, Generali’s top management launches the first three-year strate-gic plan in the Group’s history, whose targets will be fully achieved. In March 2006, the new plan is introduced for the three-year period 2006-2008.

surance and investment portfolios by sector and

geographical area. These guidelines have identi-

fied Generali’s business tradition right from the

outset, reflecting continuity in strategy, albeit in

different contexts and eras. This very consisten-

cy is also mirrored by the men that have been at

the helm of the Group and who, today as yester-

day, can boast a deep-rooted corporate and pro-

fessional experience.

2001 - Gianfranco Gutty is appointed chairman.

Genertel, already a successful online insurance company, wins the Customer Satisfaction Award for the quality of its service.

2002 - Antoine Bernheim is appointed chairman.

2003 - Generali launches the first three-year stra-tegic plan in the Group’s history. With the establishment of Generali Bank in Austria, Internet banking further develops.

2004 - With the CityLife project, Generali Properties is awarded an international tender for the urban redevelopment of the Milan fair district.

Genagricola expands to Romania with the acquisition of 3,000 hectares of grain fields and 300 hectares of vineyards.

2005 - Three gondolas of the Generali Nautical Club are welcomed on lake Chaoyang near Bei-jing as Italy’s cultural envoy with the support of Generali China. Over 2,000 people take a ride.

Looking in

87

Western Europe

The Group maintains its focus on west-ern European core markets through spe-cific strategic operations aimed at con-solidating its leading position in these markets, developing financial pro-grammes and enhancing opera-tions effectiveness and efficiency. As far as effectiveness is concerned, important transnational projects have been launched following both a traditional country-based ap-proach and a distributive channel approach. As to efficiency, restructur-ing projects have been carried out in key are-as, primarily in France – with the merging of ten companies into only two entities (life and non-life) – and Germany – with the merging of two companies characterised by a traditional distribution network and the search for economies of scale in back-office structures.

Strengthening presence in foreign countries

The Generali Group is the third insurance group in Eu-rope, with a total premium income of over 66 billion Euros in 2007. It has operations in 40 countries, with 67,300 employees and 54 million clients worldwide.

Alongside specific operations in western Europe, in re-cent years increasing attention has been paid to those areas – such as eastern Europe, China and other Asian countries – characterised by low insurance penetra-

tion, high saving rates, significant growth and prof-itability perspectives. This has allowed the Generali Group’s business abroad to reach 70% of total premi-um income (life and non-life), up 10% on 2003.

High honours from France. Chairman An-toine Bernheim is the first corporate man to receive the Grand Croix de la Légion d’Honneur by French president Nicolas Sarkozy.

AMB Generali. The Ger-man holding compa-ny presents its financial statements.

88 Scenarios for the third millennium

In January 2003, Generali’s top manage-

ment – chairman Antoine Bernheim and

managing directors Sergio Balbinot and

Giovanni Perissinotto – presented the first

strategic plan in the Group’s history for the

three-year period 2003-2005. The plan’s tar-

gets were fully achieved both in terms of in-

creased business volume and

results. Over three years, total

premiums increased by 28%,

consolidated net profit by 67%,

embedded value by 13.8% and

overall return on embedded

value by 10.2% up to 11.9%.

Generali shares rose from 17.53

Euros in 2003 to 29.49 Euros at

the end of 2005 (+69%), report-

Angels. Generali’s agents are pictured in everyday situations but “casually” close to the brand so that the lion’s wing is on their back: this is the creative idea for the Angels press and TV campaign, launched internationally. The commercial is awarded the 2004 Media Key Award.

Savana. The TV campaign Savana – first broadcast in Italy in April 2007 – is so suc-cessful that other Group companies start to use it for their campaigns. In particular, the Dutch version of Savana is selected by the public and eventually ranks second among the most popular commercials broadcast in the Netherlands in February 2008.

89

Central and eastern Europe

After the fall of the Berlin wall, the Generali Group was the first west-ern insurance group to enter those markets where all company as-sets had been lost following World War II and the communist re-gime. Since its entry into Hungary, the Group has extended its pres-ence to 10 countries, with approximately 4 million clients in 2006. With a view to further developing business in one of the most at-tractive areas for the insurance sector, in 2007 a joint venture con-tract was signed for the establishment of Generali PPF Holding. The joint venture held by the Generali Group (51%) and PPF group (49%) began operations in 2008 with a portfolio of over 9 million clients in 12 markets, namely Bulgaria, Croatia, the Czech Republic, Hungary, Kazakhstan, Poland, Romania, Russia, Serbia, the Slovak Republic, Slovenia and Ukraine.

10 years. In 2003, Group com-panies in Romania and the Czech Republic celebrate their 10th anniversary.

New agreements. The agreements for the establishment of Generali PPF Holding (2007, first photo above) and the entry into Bulgaria (2006, second photo above) are signed.

90 Scenarios for the third millennium

with regard to the protection of human resources.

The Group’s steady commitment to pursuing a

sustainable economic, social and environmental

growth is of particular importance, as the gener-

al public is gaining greater awareness of the im-

pact of pollution on climate and of its connec-

tion to natural disasters such as the devastating

tsunami that struck Southeast Asia in December

2004. On that occasion, Europ Assistance made

a significant contribution to the international re-

lief effort, while Generali and Group employees

gave their support to reconstruction.

With regard to international expansion, in the

first years of the third millennium the Group fo-

cused its attention on the emerging markets of

eastern Europe and Asia.

ing an increase of over 15 points compared to

MIB 30 (+53.6%).

In May 2004, acknowledging the strong link

existing between economic growth and socio-

environmental values, Generali drew up and ap-

proved the Group’s Ethical Code, identifying

the principles that inspire the business conduct

of people operating within the Group. Along-

side the Ethical Code, other important docu-

ments were published in 2004. In particular the

Sustainability Report encourages dialogue with

shareholders and provides an overview of the

Group’s socio-environmental initiatives and tar-

gets, whereas the European Social Charter defines

the Group’s guid-

ing principles and

reference values

After the tsunami. Europ Assistance mobilises its vast international network to deal with the devasta-tion of the tsunami that strikes Southeast Asia in 2004, while Generali and Group employees make their contribution to re-construction.

Socio-environmental values. In 2004 Generali publishes the Group’s Ethical Code, identifying the principles that inspire the business conduct of people operating within the Group. Other documents implemented afterwards are the Sustainability Report – outlining the Generali’s socio-environmental initiatives – and the European Social Charter, defining the Group’s reference values with regard to the protection of human resources.

91

Far East

In China, the Generali Group has been active in the life market since 2002 with Generali China Life – with a sales network of more than 6,500 agents – and in the P&C market since 2007 with Generali China. Genera-li’s local partner is the highly regarded China Nation-al Petroleum Corporation (CNPC), a leading play-er in the hydrocarbons industry with 1,200,000 em-ployees. In 2005, Generali China Life wrote a single-premium group policy – for approximately 2 billion Euros – covering 390,000 CNPC retirees. In 2007, As-sicurazioni Generali was granted a licence by India’s regulatory authority to operate in the life and non-life insurance sector in India through Future Genera-li India Life and Future Generali India. The two com-panies, headquartered in Mumbai, were established through Generali’s joint venture with Future Group India, the country’s leading retailer.

Ribbon cutting ceremony. The inauguration of the Beijing branch attended by Generali CEO Sergio Balbi-not (2004).

Advertising. Some exam-ples of advertising initiatives launched by Future Generali India and Generali China to promote their image.

92 Scenarios for the third millennium

In central and eastern Europe, the Group further

consolidated its position and strengthened its

expansion strategy started in 1989. At the end

of 2006, Generali was present in ten central and

eastern European countries, having entered Ser-

bia, Bulgaria and Ukraine and consolidated its

presence in Croatia. In 2007, the Group further

broadened its horizons by signing an agreement

with PPF to establish a joint venture in central

and eastern Europe.

As far as the Far East is concerned, only three

years after its entry into China Generali became

one of the country’s leading insurance groups

in the life sector. After the opening of the first

Branch in Guangzhou, Generali China expand-

ed to other towns – including Beijing, Foshan

and Shanghai – and developed a sales network

of some thousand employees. At the beginning

of 2006, the Group was authorised to operate in

the non-life sector, too. The Group’s focus was

placed not only on emerging markets but also

on the new distribution channels through its

leadership in Italy, Germany and France in the

sale of insurance products by the telephone

and over the Internet.

As far as Italy is concerned, with the acquisition of

Toro Assicurazioni in 2006 Generali consolidated

its leadership in the life sector and became leader

in the non-life business, too. In the same year Ban-

ca Generali – that had turned from an online to a

multi-channel bank, thus integrating the financial

advisers’ networks already owned by the Genera-

li Group – was listed on the Milan Stock Exchange.

As on the occasion of its 100th and 150th anniversa-

ries, Generali celebrated its 175th year in a flourish-

ing condition. The 2006 results exceeded the tar-

World champions. In 2006, the Italian football team, sponsored by Generali, de-feats France in a penal-ty shootout and wins the World Cup in Germany: it is Italy’s fourth title.

Recognitions for excellence. Generali Group compa-nies worldwide received a large number of recognitions for their excellent performance. In the above pictures: Vitalicio Seguros in Spain wins the 2004-2005 Dinero prize as the best insurance company, while Generali Inter-national’s Vision policy receives the prestigious Portfolio International Award for Best Regular Premium Product.

93

175th anniversary. At the begin-ning of 2007 the Company or-ganises the first special events to mark this very important celebra-tion: chairman Antoine Bernheim meets Italian President Giorgio Napolitano at the Quirinal Palace

in Rome and presents him with a commemorative medal; the Central Head Office in Trieste, illuminated by an unusual beacon, hosts “The Roots of the Present”, an exhibition of archaeological finds confirming the Group’s com-mitment to culture; a concert is held at La Scala in Milan, attended by the Company’s top management and local authorities.

gets set in the new strategic plan and

Generali’s financial statements were

the best in the Group’s history. For

the fourth year in a row, all targets

were achieved, thanks to premi-

um income growth and increasing

mark-up, also due to the Group’s cost

containment policy. This allowed the

management to distribute a record divi-

dend of nearly one billion Euros, up 39% on 2005.

No matter what lies ahead, Generali will continue

to play a leading role in the years to come, writing

other successful chapters in its history.

2005 - At the end of the first three-year strategic plan, all targets and significant value creation are achieved.

The Generali Group Innovation Academy is established to identify corporate reference values and to consolidate the Group’s identity.

2006 - Banca Generali is listed on the Milan Stock Exchange.

Generali Investments, the Group’s new Euro-pean asset management company, is estab-lished.

2007 - The whole Italian sales network gathers in Trieste to celebrate Generali’s 175th anniversary.

An agreement is signed with PPF to establish the leading joint venture in central and east-ern Europe.

Looking in

Toro enters the Generali Group. Through the ac-quisition of Toro Assicurazioni in 2006, Generali con-solidates its leadership in the life sector and becomes leader in non life business, too.

94 Generali and the web

ince its early days at the end of the Eighties, online communi-

cation has become more and more important both for private

people and for companies. E-mail messages, hyperlinks and

multi-media are now part of our daily lives and have radically

changed not only the way people interact, but also the

way journalists, clients and stakeholders relate to the

companies. From a marketing point of view, websites

are a powerful, easy-to-manage, inexpensive way to

promote the company’s image and products worldwide

and to communicate with the market and society.

Generali’s corporate website www.generali.com was

created in 1996 to provide an overview of company

results, press releases and official documents. In April

2004, following a thorough analysis of the market’s com-

munication requirements, the

Group launched its new website

– co-ordinated by the Corporate

Communication department –

in Italian and English, with a number of new sections and a more

modern graphic layout. At the same time, the first web guidelines

– for graphics and contents – were developed, with a view to har-

monising all Group websites worldwide, while guaranteeing trans-

parency and accuracy. Due to the continuous evolution of IT tech-

nologies and increasing users’ demands, the website must be constantly

improved and updated: to this end, access statistics are regularly monitored

and annual surveys are conducted by an international consulting company

evaluating the websites of Europe’s major companies. Besides the standard,

traditional sections – dedicated to financial analysts, economic journalists,

shareholders, clients and job opportunities – new items have recently been

added. These include a Sustainability section – including the interactive

Sustainability Report – and some publications, which have been updated to

more accessible formats, such as the interactive PDF versions of Il Bollettino

on line and Group News.

SGenerali and the web

The Group’s homepages. Top to bottom:www.generali.comwww.genertel.it www.generali.com.hk www.generali.ptwww.generali.co.jp