The Generali Group’s strategy

During 2011, within an uncertain macro-economic scenario in its main countries of operation, the Generali Group continued to operate according to its strategic guidelines, based on pursuing operating efficiency, optimizing its distribution networks — in particular by seeking to develop its proprietary networks — and achieving innovation of its products and distribution methods, especially via direct channels.

The Group continued its growth strategy in new countries and market segments. Generali Vietnam Life Insurance Company, a wholly-owned Generali subsidiary, became fully operational in April 2011, thus expanding the Group’s presence in Asia. The Asian activities were further strengthened in October through the obtainment of a licence to provide banking and investment services in Hong Kong by BSI, Group’s private-banking division.

With the aim of achieving innovation and diversification of its distribution model, the Group extended and reinforced its use of innovative sales channels, such as the Web and new mobile applications, in order to provide to its customers and networks a timely and high-quality service.

As part of cross-country initiatives, aimed at increasing commercial and operating efficiency by rationalizing the Group's activities in the different countries, it is pursuing reorganization and restructuring operations.

In this framework, with reference to the asset management and inparticular to the real estate activities in December, the Group announced the transformation of its division dedicated to the real estate management in the new company General Real Estate (GRE). Assets managed by GRE amounted to approximately € 25 billion, in addition to about € 3 billion managed on behalf of third parties taking into consideration the strategy of GRE to enhance its expertise in this field. Similar process of reorganization has been undertaken with reference to the management activities of financial instruments, with the aim of concentrating by the first part of 2012 the asset management activities of the Group's investment in a single management company.

With reference to the management of financial assets, during the year a process of reorganization of the Group's asset management activities in Europe was undertaken aiming at concentrate them in one asset management company.

As part of the activities aimed at reducing costs, it is pursuing the rationalization of the IT sector through the merging into a single data center of the services functional to the IT activities of all the Group European companies. This objective is also achieved through the extension of  IT procurement centralization at European level, currently made ​​at a country level.

Moreover, as part of effective capital management, the Group valorized its investment in the banking service company B-Source SA, leader Swiss provider of IT and back office services for banks and financial intermediaries, through the sale of the share of 51% held by the Group.

Finally, always with reference to capital management, the Group sold, taking into consideration the regulatory reorganization of the pension sector in Mexico, its investment in Banorte to the country's main pension group, with which the Group has enhanced its bancassurance agreement, lengthening the term until 2036.