Press release

The Generali Group in Poland reported strong organic growth in 2009 despite very negative market trends prevailing on the Polish market. The gross premiums written by the Generali Group grew by 39% year on year to PLN 1,939.9 million. The result was all the more impressive considering the recent available market statistics: as at the end of September 2009, the insurance sector in Poland contracted by no less than 14.2%. Both the non-life insurer Generali T.U. (premiums written up by 22% v. 4% in the sector*) and in particular Generali Życie T.U. (up by 53% v. average decrease by 24% in the sector) grew much above the market average.

"Crisis was in the headlines all throughout 2009, both in Poland and globally. The impact of the crisis as well as very strong competition, adverse weather conditions resulting in higher claims paid, and a complex legal environment made 2009 a very difficult year for the Polish insurance sector, that contracted by more than 14% by the end of Q3, particularly in the life insurance segment. This notwithstanding, the Generali Group companies countered the negative trends in 2009, achieving all very above market growth" said Andrzej Jarczyk, CEO of the Generali Group in Poland.

Generali T.U. (non-life) Grows Five Times Faster Than Competitors

In 2009, the gross premiums written by the non-life insurance company Generali T.U. S.A. grew to PLN 730.5 million, up by 21.7% year on year, an excellent performance considering that according to the most recent statistics*, the sector grew by only 4.3% in 2009, five times less than Generali.

This year, the most dynamically growing business line was retail non-Motor insurance (household, small business, tourist and accident insurance), up by almost 45% year on year, as a result of on-going initiatives growing the role of new partners in distribution of non-life products, especially through bancassurance. Corporate insurance grew also dynamically in 2009, up by 41%, thanks to Generali's closer relations with key business partners, including the new segment of coal mining sector. The company expects those both trends to continue in 2010, what will allow the company to offset results of lower returns generated in polish market by motor insurance segment (which in general generates losses for all market players in Poland). Generali's motor insurance business grew by 12% while the motor insurance segment shrank by 2% in Poland by the end of Q3 2009.

The net profit of Generali T.U. was negative at (PLN 11.7 million) in 2009, down year on year mainly due to weather anomalies in 2009 (hurricanes, flooding) affecting claims paid by Generali T.U. as well as negative trends in the polish motor insurance sector (price pressure, growing number of hull and personal claims, amended compensation legislation) and their impact on the financial results. Actions taken in 2009 will put Generali T.U. back on track of lasting above-average profitability in 2010.

In addition, it should also be noted that the net profits of the Generali T.U. in 2008 and 2009 are not directly comparable due to amended accounting regulations.**

Generali Życie (life): Half-a-Billion Record in Q4

In the context of stock market turbulences and the economic slow-down in Poland in 2009, Polish customers were less interested in investment and savings products. This had a strong impact on the performance of the life insurance sector. Despite the sector contracted by as much as 24% in Poland* Generali Życie T.U. premiums written grew by 53% to PLN 1,209.4 million in 2009. The impressive results, thanks to PLN 522 million of premiums written in Q4 alone, are owed to the record-breaking performance of the life insurer and the entire Generali Group in Poland in Q4.

In 2009 Generali continued its core life insurance strategy of building a long-term portfolio of products with regular premiums, which generated a very good growth of 24.6% in 2009 at PLN 370.8 million, while this market segment contracted by ca. 1.5% according to statistics*.

The net profit of Generali Życie T.U. more than doubled from PLN 11.9 million in 2008 to PLN 25.3 million in 2009. The company owes this growth among others to the expansion and higher effectiveness of business including both regular and single premium products.

Generali OFE (pension fund): Up to First Position in KNF's Three-Year Ranking

At the end of 2009, Generali OFE operated 676 thousand active pension accounts, up by 12.7% year on year, more than three times the market average (up by 3.9% in the sector in 2009).

Generali OFE managed PLN 7.7 billion of assets at the end of 2009, up by 41% year on year. Thanks to the Generali OFE's investment performance it remains one of the most effective funds in Poland, reaching top positions in the leading rankings published in 2009 in Poland, published by such papers as  Rzeczpospolita (April and October 2009) and Gazeta Wyborcza (June 2009), the financial service Analizy Online (July 2009) and also the Polish Financial Supervision Authority ("KNF", October 2009).

Generali PTE generated a net profit of PLN 24.4 million at the end of 2009, up by 22% year on year.

Summary

The consolidated net profit of the Generali Group was PLN 24.4 million at the end of 2009 v. PLN 30.3 million in 2008. The profit was affected by weather anomalies and negative trends in the polish motor insurance sector, resulting in much higher claims paid.

Last year, difficult as it was in macroeconomic terms, was a period of impressive dynamic growth of the Generali companies achieved in the challenging environment of market contraction and increased competition.

CEO Andrzej Jarczyk commented: "2009 marked the tenth anniversary of the Generali Group in Poland. Like all other insurance market players in Poland, we were faced with a range of problems caused by the economic slow-down, the uncertainty on the stock market, price pressure and dramatic competition in the motor insurance sector. I am proud that we were one of the few market operators to set the right direction to achieve the targets. Last year, Generali proved that it can withstand the negative impact of an adverse economic environment and even use it in order to reinforce its competitive market position. We know how to take advantage of our competitive strengths and how to unlock our potential in other segments. I am optimistic about the performance of Generali in 2010. We want to build on our global expertise and business expansion in Poland to focus on advisory and close partnership with our clients in order to continue growing well above the competitors in 2010," concluded Andrzej Jarczyk.

* comparisons (Generali vs market) - based on the recent available statistics (Generali Full year 2009 vs the market after 3Q2009)

** in compliance with the Polish accounting regulations, as of 2009, the financial results of Generali T.U.'s subsidiaries are no longer recognised in the Profit and Loss Account of Generali T.U. but are shown instead in the company's Balance Sheet (under "Revaluation capital"). On a directly comparative basis, the stand-alone profit of Generali T.U. would be (PLN 10.3 million) at the end of 2008 as compared to (PLN 11.7 million) in 2009.

The Generali Group in Poland is a part of Generali PPF Holding B.V. operating in 14 countries of Central and Eastern Europe. Through its subsidiaries, the Holding manages over EUR 12 billion of assets and serves over 10 million clients in the region. Generali PPF Holding is registered in the Netherlands and has its main operating branch in Prague, Czech Republic. Generali PPF Holding B.V. is a joint venture of Assicurazioni Generali (51%) and PPF Group (49%).