The consolidated financial statements of the Generali Group as at 31 December 2016 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 2016 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 2016, the consolidated scope of the Group decrease from 435 to 428 companies, of which 393 were consolidated on a line by line basis, and 35 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 indicators presented in this report can be found in the Methodological note on alternative performance indicators.
In line with the concept of Integrated Reporting (see below), the Group has revised the structure and content of the Risk Report and its position within the Annual Integrated Report.
In particular, the Risk Report was restructured with a view to providing a disclosure aligned with the regulatory context of Solvency 2 and the associated reporting. In addition, in order to make the document more usable for the reader, it is presented as a supplementary part of the Management Report. All reporting by geographical area presented in this report is based on the Group’s territorial structure, consisting of the business units of the three main markets - Italy, France and Germany - and four regional structures:
- CEE: Czech Republic, Poland, Hungary, Slovakia, Serbia, Montenegro, Romania, Slovenia, Bulgaria and Croatia;
- EMEA: Austria, Belgium, Greece, Guernsey, Ireland, the Netherlands, Portugal, Spain, Switzerland, Tunisia, Turkey and Dubai;
- Americas: Argentina, Brazil, Colombia, Cile, Ecuador, Guatemala and Panama;
- Asia: China, Indonesia, India, Hong Kong, Vietnam, Thailand, the Philippines, Japan and Malaysia.
In addition to these areas, the International Operations cluster has been introduced, which includes Holding activities - including Group reinsurance and the international business of the Parent Company not allocated to the other geographical areas - the Europ Assistance business and securities and real estate investment management activities carried out for Group companies.
As noted above, the Management Report is prepared in accordance with the applicable law as well as the Content Elements and the Guiding Principles envisaged by the International
The Content Elements are connected to the document’s structure.
As regards the Guiding Principles, the Strategic focus and future orientation principle is applied in the whole document. Indeed, the strategy guides the process of creating value and summarizes in and of itself the material aspects for the Group. The Materiality of the information is then represented in detail within a matrix.
Sustainability Report 2016, p. 17
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* information, 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 in order to understand and meet their needs, especially their information and dialogue requirements.
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 sector conferences, providing them with the appropriate information. During 2016 we came into contact with more than 530 people (about 230 individual meetings and 300 smallgroup meetings) in the most important financial centres of Europe and North America. 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 and associations. Our active presence in these organizations allows us also to expand our knowledge of the different regulations and potential impacts. 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. In 2016, we have extended this experience to Group employees as well. Overall, we met with nearly 300 people. We also engage customers, distributors and Group employees with a view to continuous improvement.
Annual Integrated Report 2016, page 28; 30Our report has been improved in many aspects also considering our stakeholders’ feedback; for instance, Conciseness was improved, as was connectivity among the Group’s different reports and among the different parts of the report, therefore making it easier to read with a more logical structure. The diagram below shows the passage of the Annual Integrated Report, drawn up in accordance with the Materiality principle, and the Consolidated Financial Statements were 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. This allows Generali to increase homogeneity 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 strategic objectives announced to the market.